Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics

Michael Musanzikwa

doi:doi:10.11648/j.ijefm.20130102.18

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Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics

Michael Musanzikwa

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 2)

Published: 2 April 2013

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Abstract

Purpose: The purpose of this paper is to provide an overview of the public procurement system challenges in developing countries with reference to Zimbabwe, addressing the extent to which the procurement systems have resulted in disgruntlement by pressure groups like the Affirmative Action Group (AAG) and the Upfumi Kuvadiki over the awarding of tenders to foreign owned companies. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies on major government projects such as the supply of prepaid meters for the Zimbabwe Electricity Supply Authority (ZESA), the construction of the airport road in Harare and the expansion of Gokwe District Hospital were conducted. Findings: The findings suggest that most of the people tasked with the responsibility to procure resources are incompetent. For example the tender to supply ZESA with prepaid meters was flawed since it was the State Procurement adjudicators who were at fault. There was evidence of inadequate market enquiry in the awarding of most tenders, for example the City of Harare lost $80 million dollars in the construction of a 20km road instead of incurring a cost of around $10 million dollars. Delays in decision making resulted in the construction of a $600 000.00 district hospital in Gokwe North lagging behind schedule. There was also evidence of a high level of corruption activities in the public procurement. In 2011 a tender for the supply and delivery of malaria rapid test kits was withdrawn with participating bidders being refunded their tender fees because it had been corruptly flouted. Research limitations/implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that professional procurement practices must be adopted in Public institutions for the benefit of the country. Social Implications: Govern-ments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss the public procure-ment system challenges in developing countries with reference to Zimbabwe as to how it has caused disgruntlement among the pressure groups on the awarding of tenders.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 2)
DOI	10.11648/j.ijefm.20130102.18
Page(s)	119-127
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Public Procurement System, Purchasing, Sourcing

References

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[2]	Benslimane, Y.; Plaisent, M.; and Bernard, P. (2005), Inves-tigating Search Costs and Coordination Costs in Electronic Markets: A Transaction Costs Economics Perspective, Elec-tronic Markets.
[3]	Bovis, C.H. (2007), European Union Public Procurement Law, Elgar European Law Series, Edward Elgar Publishing.
[4]	Caldwell, N.D. Roehrich, J.K. and Davies, A.C. (2009), Procuring Complex Performance in Construction: London Heathrow Terminal 5 and a Private Finance Initiative Hospital, Journal of Purchasing and Supply Management.
[5]	Hinson, C., and McCue, C. P. (2004), Planning, Scheduling and Requirement Analysis, Herndon, VA: National Institute of Governmental Purchasing, Inc.
[6]	Kothari, C.R. (2004), Research Methods and Techniques, New Age Publishers, New Delhi.
[7]	Marczyk, G., DeMatteo, D. and Festinger, D. (2005), Essen-tials of Research Design and Methodology, John Wiley and Sons, New Jersey.
[8]	Lewis, M.A. and Roehrich, J.K. (2009), Contracts, Relation-ships and Integration: Towards a Model of the Procurement of Complex Performance, International Journal of Procure-ment Management.
[9]	Mangan, J., Lalwani, C. and Butcher, T. (2008), Global Logistics and Supply Chain Management, John Wiley and Sons, New Jersey.
[10]	Maurer, R. (2004), One Small Step Can Change Your Life; The Kaizen Way, Workman.
[11]	Nakamura, D. (2004), Untrained Staffers Blamed for Costing City Thousands, Washington Post, Washington.
[12]	Ritchie, J. and Lewis, J. (2003), Qualitative Research in Practice, A Guide for Social Sciences Students and Re-searches, Sage Publishing, New Delhi.
[13]	Saunders, M., Levin, P., and Thornhill, A. (2009), Research Methods for Business Students, Fifth Edition, Prentice-Hall, London.
[14]	Shaw, F.N. (2010), The Power to Procure: A Look inside the City of Austin Procurement Program, Applied Research Projects, Texas State University.
[15]	Thai, K.V., Araujo, A., Carter, R.Y. and Callender G. (2005), Challenges in Public Procurement, Available at www.unpcdc.org. [Accessed 5 October 2012].

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Michael Musanzikwa. (2013). Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics. International Journal of Economics, Finance and Management Sciences, 1(2), 119-127. https://doi.org/10.11648/j.ijefm.20130102.18

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Michael Musanzikwa. Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics. Int. J. Econ. Finance Manag. Sci. 2013, 1(2), 119-127. doi: 10.11648/j.ijefm.20130102.18

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AMA Style

Michael Musanzikwa. Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics. Int J Econ Finance Manag Sci. 2013;1(2):119-127. doi: 10.11648/j.ijefm.20130102.18

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@article{10.11648/j.ijefm.20130102.18,
  author = {Michael Musanzikwa},
  title = {Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {2},
  pages = {119-127},
  doi = {10.11648/j.ijefm.20130102.18},
  url = {https://doi.org/10.11648/j.ijefm.20130102.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130102.18},
  abstract = {Purpose: The purpose of this paper is to provide an overview of the public procurement system challenges in developing countries with reference to Zimbabwe, addressing the extent to which the procurement systems have resulted in disgruntlement by pressure groups like the Affirmative Action Group (AAG) and the Upfumi Kuvadiki over the awarding of tenders to foreign owned companies. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies on major government projects such as the supply of prepaid meters for the Zimbabwe Electricity Supply Authority (ZESA), the construction of the airport road in Harare and the expansion of Gokwe District Hospital were conducted. Findings: The findings suggest that most of the people tasked with the responsibility to procure resources are incompetent. For example the tender to supply ZESA with prepaid meters was flawed since it was the State Procurement adjudicators who were at fault. There was evidence of inadequate market enquiry in the awarding of most tenders, for example the City of Harare lost $80 million dollars in the construction of a 20km road instead of incurring a cost of around $10 million dollars. Delays in decision making resulted in the construction of a $600 000.00 district hospital in Gokwe North lagging behind schedule. There was also evidence of a high level of corruption activities in the public procurement. In 2011 a tender for the supply and delivery of malaria rapid test kits was withdrawn with participating bidders being refunded their tender fees because it had been corruptly flouted. Research limitations/implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that professional procurement practices must be adopted in Public institutions for the benefit of the country. Social Implications: Govern-ments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss the public procure-ment system challenges in developing countries with reference to Zimbabwe as to how it has caused disgruntlement among the pressure groups on the awarding of tenders.},
 year = {2013}
}

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TY  - JOUR
T1  - Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics
AU  - Michael Musanzikwa
Y1  - 2013/04/02
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130102.18
DO  - 10.11648/j.ijefm.20130102.18
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 119
EP  - 127
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130102.18
AB  - Purpose: The purpose of this paper is to provide an overview of the public procurement system challenges in developing countries with reference to Zimbabwe, addressing the extent to which the procurement systems have resulted in disgruntlement by pressure groups like the Affirmative Action Group (AAG) and the Upfumi Kuvadiki over the awarding of tenders to foreign owned companies. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies on major government projects such as the supply of prepaid meters for the Zimbabwe Electricity Supply Authority (ZESA), the construction of the airport road in Harare and the expansion of Gokwe District Hospital were conducted. Findings: The findings suggest that most of the people tasked with the responsibility to procure resources are incompetent. For example the tender to supply ZESA with prepaid meters was flawed since it was the State Procurement adjudicators who were at fault. There was evidence of inadequate market enquiry in the awarding of most tenders, for example the City of Harare lost $80 million dollars in the construction of a 20km road instead of incurring a cost of around $10 million dollars. Delays in decision making resulted in the construction of a $600 000.00 district hospital in Gokwe North lagging behind schedule. There was also evidence of a high level of corruption activities in the public procurement. In 2011 a tender for the supply and delivery of malaria rapid test kits was withdrawn with participating bidders being refunded their tender fees because it had been corruptly flouted. Research limitations/implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that professional procurement practices must be adopted in Public institutions for the benefit of the country. Social Implications: Govern-ments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss the public procure-ment system challenges in developing countries with reference to Zimbabwe as to how it has caused disgruntlement among the pressure groups on the awarding of tenders.
VL  - 1
IS  - 2
ER  -

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Author Information

Michael Musanzikwa

Lecturer at Chinhoyi University in the Department of Supply Chain Management

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Michael Musanzikwa. (2013). Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics. International Journal of Economics, Finance and Management Sciences, 1(2), 119-127. https://doi.org/10.11648/j.ijefm.20130102.18

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Michael Musanzikwa. Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics. Int. J. Econ. Finance Manag. Sci. 2013, 1(2), 119-127. doi: 10.11648/j.ijefm.20130102.18

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AMA Style

Michael Musanzikwa. Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics. Int J Econ Finance Manag Sci. 2013;1(2):119-127. doi: 10.11648/j.ijefm.20130102.18

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@article{10.11648/j.ijefm.20130102.18,
  author = {Michael Musanzikwa},
  title = {Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {2},
  pages = {119-127},
  doi = {10.11648/j.ijefm.20130102.18},
  url = {https://doi.org/10.11648/j.ijefm.20130102.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130102.18},
  abstract = {Purpose: The purpose of this paper is to provide an overview of the public procurement system challenges in developing countries with reference to Zimbabwe, addressing the extent to which the procurement systems have resulted in disgruntlement by pressure groups like the Affirmative Action Group (AAG) and the Upfumi Kuvadiki over the awarding of tenders to foreign owned companies. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies on major government projects such as the supply of prepaid meters for the Zimbabwe Electricity Supply Authority (ZESA), the construction of the airport road in Harare and the expansion of Gokwe District Hospital were conducted. Findings: The findings suggest that most of the people tasked with the responsibility to procure resources are incompetent. For example the tender to supply ZESA with prepaid meters was flawed since it was the State Procurement adjudicators who were at fault. There was evidence of inadequate market enquiry in the awarding of most tenders, for example the City of Harare lost $80 million dollars in the construction of a 20km road instead of incurring a cost of around $10 million dollars. Delays in decision making resulted in the construction of a $600 000.00 district hospital in Gokwe North lagging behind schedule. There was also evidence of a high level of corruption activities in the public procurement. In 2011 a tender for the supply and delivery of malaria rapid test kits was withdrawn with participating bidders being refunded their tender fees because it had been corruptly flouted. Research limitations/implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that professional procurement practices must be adopted in Public institutions for the benefit of the country. Social Implications: Govern-ments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss the public procure-ment system challenges in developing countries with reference to Zimbabwe as to how it has caused disgruntlement among the pressure groups on the awarding of tenders.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics
AU  - Michael Musanzikwa
Y1  - 2013/04/02
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130102.18
DO  - 10.11648/j.ijefm.20130102.18
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 119
EP  - 127
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130102.18
AB  - Purpose: The purpose of this paper is to provide an overview of the public procurement system challenges in developing countries with reference to Zimbabwe, addressing the extent to which the procurement systems have resulted in disgruntlement by pressure groups like the Affirmative Action Group (AAG) and the Upfumi Kuvadiki over the awarding of tenders to foreign owned companies. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies on major government projects such as the supply of prepaid meters for the Zimbabwe Electricity Supply Authority (ZESA), the construction of the airport road in Harare and the expansion of Gokwe District Hospital were conducted. Findings: The findings suggest that most of the people tasked with the responsibility to procure resources are incompetent. For example the tender to supply ZESA with prepaid meters was flawed since it was the State Procurement adjudicators who were at fault. There was evidence of inadequate market enquiry in the awarding of most tenders, for example the City of Harare lost $80 million dollars in the construction of a 20km road instead of incurring a cost of around $10 million dollars. Delays in decision making resulted in the construction of a $600 000.00 district hospital in Gokwe North lagging behind schedule. There was also evidence of a high level of corruption activities in the public procurement. In 2011 a tender for the supply and delivery of malaria rapid test kits was withdrawn with participating bidders being refunded their tender fees because it had been corruptly flouted. Research limitations/implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that professional procurement practices must be adopted in Public institutions for the benefit of the country. Social Implications: Govern-ments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss the public procure-ment system challenges in developing countries with reference to Zimbabwe as to how it has caused disgruntlement among the pressure groups on the awarding of tenders.
VL  - 1
IS  - 2
ER  -

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