Times Of Swaziland: GOVT PROTECTS TAXPAYER FROM OVERCHARGING SUPPLIERS

GOVT PROTECTS TAXPAYER FROM OVERCHARGING SUPPLIERS
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Nonduduzo Kunene on 19/01/2024 08:33:00


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.