Professional suppliers’ body key in battle on corruption

Every time you switch on to your television screens in Kenya today, or read the daily newspapers, you hardly pass without the news on procurement related corruption cases within public institutions. From graft at Kemsa and the Ministry of Health to Kenya Pipeline, from Kenya Power (KPLC) to National cereals and produce Board (NCPB), the list goes on and on. Corruption cases involving high ranking government officials in Kenya is prevalent with “Tenderpreneurs” laughing all the way to the bank.

The Directorate of Criminal Investigations (DCI) revealed that most companies awarded these tenders are as old as two months. This is a clear indication that these firms are registered purposefully for specific targeted lucrative public tenders involving huge sums of money.

According to Transparency International, the government loses about one third of the national budget to corruption through non-compliance to procurement regulations, with 80 percent of all corruption cases before the Ethics and Anti-Corruption Commission (EACC) being about utter impunity to public procurement regulations. Data from EACC shows corruption is very high in county governments, national government departments and ministries. Procurement department, finance, public service board, road and public works are the departments where corruption is most prevalent. The most pronounced forms of corruption recorded are procurement related irregularities such as bid rigging, inflation of prices, splitting of tenders, tampering with bidder’s documents, conflict of interest, bribery and political influence.

Kenya’s procurement laws and regulations have come a long way and have undergone major reforms to the current legal framework. Annual audit reports on several county governments reveal various issues of non-compliance, ranging from non-conformity to procurement regulations to sheer impunity towards the procurement Act and regulations. The 2019 Corruption Perception Index released by Transparency International (TI) ranked Kenya among the most corrupt countries at 137 out of 180 countries, scoring 28 out of 100 points. In Philippines, the government has established the Procurement Policy Board to review the implementation of the procurement Act, to monitor and enforce compliance, and to recommend changes in procurement policy and rules. Philippines is a good example of progress in creating a clearer and more coherent system of procurement. From 2003, the Philippians’ government has created more than 60 laws, executive orders, presidential decrees and administrative orders to govern the procurement process. This has imposed a uniform procurement system within the public sector, clearly specifying, amongst other things, the methods and stages of purchasing to be followed, the roles, responsibilities, accountability and manner of appointment of procurement officials and committees.

Recently the national treasury proposed tougher measures in the new regulation to curb graft in both public and private institutions. The national supply chain management professional framework proposes that Kenya Institute of Supplies Management (KISM) and its subsidiary Kenya Institute of Supplies Examinations Board (KISEB) must now be equal to the task to help root out quack procurement professionals and curb the runaway corruption in public procurement.

Despite the fact that it is a requirement in law for procurement practitioners to be members of KISM and must have a valid practicing license, studies show that only 33.7percent of procurement professionals in public service are full members of KISM. On 15 June 2020 KISM sent a notice for compliance to all supplies practitioners including procurement and supply chain management officers, procurement officers, warehousing/stores officers, logistics officers and consultants in both public and private practice to immediately comply with sections 16, 20 and 21 of the Supplies Practitioners Management Act (SPMA), which makes it illegal to practice without acquiring KISM membership and a practitioner’s license.

The national supply chain management professional framework proposes that KISEB /KISM to blacklist from public and private practice all state officers found culpable of abetting graft and economic crimes, disciplinary measures be taken against errant professionals including deregistration ,withdrawal or non-renewal of their practicing licences and to regulate the syllabus of instruction for professional supplies certification for procurement professionals seeking to practice in public procurement. Early this year KISM conducted a review of its CSPP-K Curriculum.

The new curriculum is designed to equip procurement professionals with knowledge, practical skills and attitudes that will enable them perform duties better as buyers, supply chain managers, supervisor directors, or consultants for organisations. KISM’s mission to foster development through fair, equitable, transparent, competitive, and cost effective procurement and supply chain management practices must be put to practice. Like other professional bodies for instance the Law Society of Kenya, Kenya Medical Practitioners And Dentists Council and the Institute of Certified Public Accountants of Kenya, KISM must stand out to be counted in this war on graft.

Mr Panya is a consultant at Hattford Supply Chain Consulting Group