GOVT PROTECTS TAXPAYER FROM OVERCHARGING SUPPLIERS

EZULWINI – Suppliers can only charge five per cent more or less than the market price of items that they will be supplying to government and its institutions.

This benchmark was declared yesterday by the Minister of Finance, Neal Rijkenberg, when launching the Market Price Reference Catalogue for commonly used items. The catalogue was presented by the Eswatini Economic Policy Analysis and Research Centre (ESEPARC).

The catalogue that would be shared with all government ministries, parastatals and local government authorities will be used as a reference point for procurement officers and heads of departments, as a benchmark for prices, before awarding suppliers tenders. The catalogue contains 17 categories of commonly used items, which equate to over 79 000 items.

The prices of the items, according to the catalogue that was presented by Mancoba Nkambule from ESEPARC, were categorised according to the four regions of the country. He added that the prices were categorised in three-fold, being the lowest, middle and upper limit. He explained that officers could only accept a price that was five per cent below or higher than the market price, from suppliers.

He further explained that the prices in the catalogue included Value Added Tax (VAT), hence suppliers were not supposed to add VAT to the prices. The prices in the catalogue would be revised every two years to ensure that they remained relevant to the market.

Scrutinised

The officer explained that the five per cent above and below market price would be scrutinised, hence it was imperative for procurement officers within government departments to stick within the price range in the catalogue.
To ensure that government departments adhere to the to the catalogue, Eswatini Public Procument Regulatory Authority (ESPPRA) Chief Executive Officer (CEO), Vusumutiwendvodza Matsebula, said they would constantly monitor that public procurement officers use tenders according to the prices listed in the Market Price Reference Catalogue.

Matsebula said the catalogue would be available in all government offices, tinkhundla centres, ESPPRA website and social media pages. During the launch, the minister said the initiative would revolutionise the public procurement landscape in Eswatini.

Promise

He highlighted that the Public Procurement System drives the country’s economy and it was through procurement that the government fulfilled its promise to citizens in providing supplies for education, construction, maintenance of infrastructure, health supplies, medical supplies, agricultural supplies as well as security equipment among others.

In the same vein, the minister said suppliers of these goods and services earned income to run their businesses, with multiplier effects including job creation for the citizens, leading to economic growth. Rijkenberg said government had an obligation to maximise every cent of its budget, thus, better management of the public procurement sector, with increased transparency, efficiency and value for money, was critical for achieving economic growth and boosting shared prosperity for all.

“We are all aware of the challenges we face in managing our procurement spend, which currently stands at a staggering 22.6 per cent of our country’s expenditure. With procurement reforms at the forefront of our agenda, it is imperative that we address the existing issue of overpricing, be it for common use items or any sector of the government services, which does not only deplete government funds, but further hampers economic growth and sustainability,” he said.

The minister said the funds that could be redirected towards crucial sectors such as healthcare, education, infrastructure development and maintenance were being absorbed by inflated prices charged by suppliers. Rijkenberg said the unfortunate part was that the exorbitant prices charged by suppliers, crippled areas of government service delivery.

Commited

“By tackling this issue head-on and implementing a transparency tool, we are, as the government, sending a clear message that Eswatini is committed to upholding the highest standards of accountability, transparency and integrity.  It is upon all of us to create an environment that fosters fair competition, incentivise suppliers to offer competitive prices and ensure value for money. By publishing this catalogue, we hope to bring about a shift that results in fair market prices being offered to government,” he said.

The minister added that the publishing of the catalogue would not only reduce procurement spending but also stimulate economic growth and create opportunities for investment and development. He implored suppliers and government heads of departments to embrace the price catalogue and adhere to it.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: