Module 8

Transparency and Integrity

[24 July 2018]
Main learning objectives
• To understand the requirements in Part IX of the Act and Part VII and XI of the
Regulations
• To appreciate the importance of good record keeping and to know which
documents should be maintained in the procurement record
• To understand the conduct expected of procurement officers, of other public
officers with responsibilities for aspects of procurement and of bidders and
contractors
• To be aware of the disciplinary measures that may be taken for infringement of
the rules
How can Transparency be upheld in
procurement?
Record Keeping
Record keeping

• Records represent an organization’s memory

• Provide evidence for decisions and action taken

• Aid in policy formulation

• Provide an audit trail that is a principal safeguard against corruption and other
malpractices

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Consequences of failure to maintain adequate procurement
records
• Decisions taken on ad hoc basis without the benefit of an institutional memory

• Fraud/corruption more difficult to prove and meaningful reporting and audits

cannot be carried out

• Government actions not transparent

• May be difficult for entity to defend decisions and actions against any challenge,
administrative review or court proceedings

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Records of procurement proceedings (S. 69 & R. 37)
PE shall maintain for at least 6 years procurement record containing all
documents and records related to the procurement concerned, including

• Description of the requirement

• Bidding document

• List of participating bidders and their qualifications

• If pre-qualification used names of those pre-qualified and invited to bid
Records of procurement proceedings (S. 69 & R. 37)
• Reason for choosing a procurement method other than competitive bidding,
if applicable

• Bid prices

• Summary of the evaluation of bids and application of any margin of

preference

• Summary of any review proceedings and resulting decisions

• If all bids were rejected, statement of grounds for rejection or other reason
why procurement did not result in a contract
Original documents
• Signed original versions of documents provide best guarantee of authenticity

• Photocopies less satisfactory unless bear original signatures of parties concerned

or otherwise certified as authentic

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Filing of records
• PE should maintain proper filing system with clear links between procurement
and expenditure files

• Recommended that
• Records of whole procurement process should be maintained in a
procurement file
• Documents relating to each procurement procedure should be filed using a
unique sequential code
• Procurement file should also bear unique sequential code of related
expenditure file

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Payment records
Payment records and other accounting records should be arranged by financial
year, then by month and accounting code or control number

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Electronic records

What are the pros and cons of e-government storage

in Zimbabwe?

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Electronic records
• Facilitate distribution and retention

• Problems
• Validity in law?
• Certification authority for digital signatures?

• Until problems rectified, dual system recommended, with key records (e.g.
committee minutes printed and retained in physical procurement file)

• Electronic records should be kept securely with adequate back-up of files in

separate location

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What are the indicators of poor
record keeping?

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Good procurement records management
• Officer in PMU should be made responsible for coordinating, guiding,
maintaining and controlling use of procurement records

• Responsibilities
• Organize storage of documents
• Sorting and placing of documents in the right files
• Security, integrity and confidentiality of documents
• Controlling movement of files and documents

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Conduct

What ‘good conduct’ should a procurement officer abide by?

Conduct of procurement officers (S. 70 & R. 39)
• Obligations include
• Ensuring each decision based on adequate information and is made in good
faith and in best interests of PE
• Ensuring fair competitive access by bidders
• Avoiding conflict of interest
• Acting with propriety and honesty
• Not revealing confidential information
• Abide by Code of Conduct

• Breaches may constitute misconduct under Public Service Act

• PE shall report offences in law to police for prosecution
Code of conduct for procurement officers (S. 71 & R.
39 & First Schedule)

• Code is set out in First Schedule to the Regulations

• Disciplinary provisions in Fourth Schedule to the Regulations

• Procurement officers shall before entering office undertake in writing:

• To faithfully exercise assigned functions

• To abide by rules of conduct under the Act, including the code of conduct
Code of conduct for procurement officers (S. 71 & R.
39 & First Schedule)

• Purpose of Code
• To regulate behaviour and actions of procurement officers

• To set out values and clear guidelines during and after their employment in
procurement

• To maintain public trust in integrity of procurement process

Conduct during specific stages of procurement

Pre-bidding stage

• May maintain contact with private sector to acquire technical

familiarity with goods, works or services

• May participate in joint exhibitions or forums with professional

partners
Conduct during specific stages of procurement

Bidding stage After contract award

• Transparency and equal • Manage contract based on

treatment of bidders terms and conditions in the
contract
Conduct of bidders and contractors (S. 72 & R. 40)
• Bidders and contractors shall abide by their obligations under the Act and, where
applicable, their procurement contracts

• Specific provisions against collusion and other actions that deprive PE of benefits
of free and open competition
Conduct of bidders and contractors (S. 72 & R. 40)
• Terms “corrupt practice”, “fraudulent practice”, “collusive practice”, “coercive
practice” and “obstructive practice” are each defined in the bidding and
contracting documents

• Misconduct, unethical practices and neglecting to carry out a material provision

of a contract can lead to rejection of bid or refusal to consider any bid from that
bidder
Debarment and Sanctions
Debarment of bidders and contractors (S. 72 (6) & Part
XI of Regulations)

• Debarment follows recommendation by a PE or by the Monitoring and

1 Evaluation Department of PRAZ

• PE Submits recommendation for debarment to PRAZ

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• CEO of PRAZ establishes debarment committee to determine action

3

• Debarment committee may decide that there is insufficient evidence and

4 notify the PE
 • If debarment committee decides that there is sufficient evidence to proceed, it may
issue notice of suspension until decision on debarment has been reached
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• If bidder/contractor admits all or part of the allegations, committee

6 proceeds to take a decision

• If bidder/contractor informs committee that it intends to contest the

7 allegations, they are given at least 10 days to submit written response

• Debarment committee reaches decisions by majority vote and on balance

8 of probability, taking into account any mitigating circumstances
Sanctions (R. 71)
Debarment committee may impose on bidder/contractor:
• Caution (formal letter to avoid the conduct in future)

• Reprimand

• Suspension with a remedial plan

• Temporary debarment

• Permanent debarment
Suspension of debarment (R. 72 – 74)
• Debarment committee informs bidder or contractor of period of suspension
1 or debarment

2
• PRAZ shall disclose a list of suspended or debarred bidders or contractors

3
• No PE shall award a contract to the bidder or contractor during period

• Bidder/contractor may apply in writing for its name to be removed from list
4 after period expired
• Suspension or debarment shall apply to any successor in title of bidder or
5 contractor
Fighting corruption in procurement
Corruption is often a failure of management

Managers should be made accountable for actions of junior staff

• Supervision of working practices
• Know your staffs’ lifestyles (Extravagances, Gambling, Indebtedness)
• Develop professionalism - Professional bodies should have their own code of
ethical practices

Key test of whether an action in public procurement is ethical

• If your decision became public knowledge, could you defend it as being in the
public interest?

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Red Flags

What are the red flags for misconduct:

1. In the procurement office
2. On the individual
3. In the market place
4. In contract management

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Red Flags
• IN THE PROCUREMENT OFFICE
• Poor record keeping
• Deviations from procedures without written justification
• Poorly defined roles/responsibilities
• Lack of control

• ON THE INDIVIDUAL
• Extravagant lifestyle
• Keeping contact with certain bidders or contractors exclusively
• Excessive interaction with bidders or contractors
• Secrecy
• Reluctance to delegate
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Red Flags
• IN THE MARKET PLACE
• Always the same bidders competing and getting contracts
• Reluctance of established firms to enter competition

• IN CONTRACT MANAGEMENT
• Extensive cost overruns
• Excessive numbers of change orders
• Frivolous disputes

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