- Category: Government
- Topic: Political science
Public procurement is the process by which goods, services, works, and other supplies are competitively acquired via a contractual arrangement by the public sector/service, as defined by Odhiambo & Kamau (2003). It entails the purchasing of commodities and the contracting of construction works and services, utilizing resources from state budgets, local authority budgets, state foundation funds, domestic and foreign loans guaranteed by the state, foreign aid, and revenue generated from state economic activities. The Fifth National Development Plan (NDP5) has four crucial objectives: Economic Progression, Social Transformation, Environmental Sustainability, and Good Governance.
Public procurement has several objectives/principles that range from social, economic, and financial objectives which are crucial to meet the NDP5 objectives. The principles are core foundations of procurement organizations and regulations that eliminate any trade barriers in goods and services. Public procurement contributes significantly to achieving the Nation's developmental plans (NDP5) through diverse aims.
One of these objectives aims at promoting openness and transparency in public procurement. This approach ensures that procurement functions within the public's organization are conducted openly and transparently. The policy guarantees that all qualified parties interested in participating in procurement procedures are included. The objective achieved by informing the public of all procurement activities through clear guidelines that outline the process's conduct. Evernett (2005) discusses how transparent procurement procedures can lead to more efficient allocation of resources through increased competition, higher procurement quality, budgetary savings for governments, and taxpayers. Transparent procedures can also minimize investment risks. Objective and transparent procedures provide opportunities for local suppliers to enhance their efficiency by competing for public contracts, improving their trade prospects by becoming more competitive exporters. Therefore, public procurement helps NDP5 objectives of economic progress, inclusivity, sustainability, and equitable growth.
Another procurement principle is to promote equality and fairness in the public procurement process. This objective aims to provide all participants with an equal chance to participate. The different organizations spell out specific procedures to ensure that each participant has an equal opportunity. Public officials dealing with procurement activities must be held accountable for their decisions. Accountability entails the obligation to accept responsibility or to account for one's actions. As a result, officials from the government, community, and civil society must demonstrate good governance, enforce procurement laws and regulations, and be free from corrupt practices. Achieving these objectives can help NDP5 achieve its goals of good governance.
Public procurement is essential in achieving NDP5's objective of environmental sustainability. Sustainable procurement involves integrating economic, social, and environmental risks into the procurement decisions and processes that ensure value for money throughout the asset lifecycle. Sustainable procurement is a complex process and requires the participation of all stakeholders involved in the deployment of laws and policies. Procurement can facilitate NDP5's environmental sustainability goals by implementing policies such as low-impact supplier sourcing, low or zero-carbon emission supplier sourcing, and purchasing environmentally-friendly products.
Finally, Namibia spends about 1/3 of its Gross Domestic Product (GDP) on public procurement contracts for goods, services, and works. This demonstrates the central role public procurement plays in Namibia's economic development, influencing its broader socioeconomic environment. Public procurement's strategic use can generate fiscal savings and sustainable outcomes, promoting local markets and jobs, thus helping Namibia meet its NDP5 goal of economic transformation.
Query 2:
1.1
"Optimal Value": The most efficient use of resources is achieved when making purchasing decisions through procurement management. Despite other competitors offering lower prices, the board chose Aminics Trading for the tender, causing concerns about the cost-effectiveness of the procurement process.
"Risk Management": Procurement management identifies and handles risks related to procurement, such as fraud, corruption, and quality control issues.
Furthermore, the public had significant concerns about the transparency of Aminics Trading's operations, as they manufactured the condoms outside the country and only packaged them at their facility. These concerns raised questions about the cost-effectiveness of the procurement process, prompting the board to address them.