Fresh price list plan for State procurement in graft fight
What you need to know:
Moderated price list would be loaded on the Integrated Financial Management Information System which links all government ministries and agencies including county governments.
Estimates by the Treasury show that the government losses more than Sh70 billion annually due to fraudulent manipulations in procurement processes.
Procure to Pay system will include basic procurement processes such as purchase requisition, online tendering and award, receipts matching, invoice delivery, purchase order generation and payment initiation.
A fresh price list of all products bought by the government will be drawn to avoid inflated procurement that is costing tax payers billions of shillings.
Treasury secretary Henry Rotich said the moderated price list would be loaded on the Integrated Financial Management Information System (IFMIS) which links all government ministries and agencies including county governments.
“We will develop and enforce cost benchmarks for all projects and consumables to ensure value for money,” he said. The automated system— Procure to Pay — will link up all government paypoints and involve identification of users through passwords, meaning each action can be traced back to the initiator.
The procurement and payment module will replace the current uncoordinated accounting and budgeting system which makes it easy for dishonest officials to collude with suspected cartels in defrauding the government.
“We will undertake expenditure tracking and value for money tracking audits to ensure accountability, efficiency and effectiveness in the use of public resources at both levels of government,” the minister said.
Estimates by the Treasury show that the government losses more than Sh70 billion annually due to fraudulent manipulations in procurement processes.
The Procure to Pay system will include basic procurement processes such as purchase requisition, online tendering and award, receipts matching, invoice delivery, purchase order generation and payment initiation.
The module will also handle basic tasks such as generation of payment vouchers, online approvals and electronic payments in addition to complex jobs including budgetary controls, goods delivery and inspection receipting.
“Henceforth, all government procurement will be done electronically and the days of inflated prices will be a thing of the past,” Mr Rotich said.
Though the concept of IFMIS has been in the pipeline for more than a decade, its implementation has failed to take off, largely due to lack of political goodwill as well as resistance by some parties believed to be beneficiaries of the inefficient budgetary, procurement and revenue systems.
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