Crackdown on Procurement Corruption

.... As ZIPS Calls for Urgent Reforms in Zambia’s Procurement Sector

By Francis Maingaila

Lusaka, Zambia – (20 -02-2025) – Zambia’s Secretary to the Cabinet, Patrick Kangwa, has issued a stern warning against corruption in government procurement, emphasizing that inefficiencies and unethical practices are draining public resources and delaying critical national projects.

Speaking at a high-level procurement workshop, Kangwa reiterated President Hakainde Hichilema’s directives that procurement must be timely, cost-effective, and yield high-quality results.

He criticized rampant mismanagement in government institutions, particularly within procurement committees, which he said have become the epicenter of corruption and financial waste.

“The days of delayed projects and substandard work must end. Procurement is not an avenue for self-enrichment—it is a tool for national development,” Kangwa stated.

The government recently introduced the Zambia Public Sector Change Management Framework, aimed at restoring public trust in state institutions.

According to Kangwa, police officers will play a crucial role in enforcing procurement regulations to ensure accountability.

“We must ask ourselves: Are we truly serving the public? Are we upholding integrity? If we fail to reflect on these questions, we will continue facing audit queries year after year,” he warned.

Zambia’s procurement sector has come under increased scrutiny, with reports indicating billions of kwacha lost due to inflated contracts, poor contract management, and outright theft.

Kangwa singled out cases in the Ministry of Health, where artificial price hikes on medical supplies directly endanger citizens’ lives.

“Those who manipulate procurement processes to inflate the cost of essential medicines are not just corrupt—they are killers,” he declared.

Kangwa also stressed the need for consequence management, stating that corrupt officials will no longer be transferred to other roles but will face immediate dismissal and prosecution.

Strengthening Accountability in Public Spending

Government procurement accounts for 75% of public spending, yet inefficiencies continue to drive up costs. Kangwa revealed that the government owes the private sector nearly K5 billion due to poor contract oversight and legal disputes.

A case in point is road infrastructure, where projects intended to last 15–20 years are repeatedly rebuilt due to substandard workmanship and lack of proper planning.

“We have spent billions reconstructing the same roads multiple times. Why? Because we fail to enforce accountability and proper contract management,” Kangwa lamented.

Procurement inefficiencies also plague Zambia’s agriculture sector, where reforms could double or even triple maize production without increasing the K10 billion budget allocation.

Kangwa cited a recent breakthrough where a renegotiation on fertilizer pricing saved the government billions of kwacha.

“By reducing the price per bag from K1,100 to K850, we saved K250 per bag. If every ministry prioritized cost-efficiency, we could transform Zambia’s economy without increasing spending,” he noted.

Kangwa called on procurement officers to align with the government’s zero-tolerance approach to corruption, warning that incompetence and mismanagement will no longer be tolerated.

“The Zambian people deserve better. Every kwacha spent must bring tangible benefits. This is not a suggestion—it is a directive,” he concluded.

The crackdown on procurement corruption is expected to lead to far-reaching changes in government operations, with increased oversight and stringent penalties for offenders.

Meanwhile, Zambia Institute of Purchase and Supply (ZIPS) President Daniel Kabamba has issued a call to action for procurement professionals to embrace efficiency, transparency, and accountability, warning that poor procurement practices threaten national development.

Speaking at the same Procurement Transformation Workshop, Kabamba told delegates that procurement officers hold the key to ensuring that government resources are utilized effectively.

He noted that the mismanagement of public funds through procurement inefficiencies not only impacts government operations but also undermines economic and social progress.

“Procurement decisions directly impact public service delivery. When citizens raise concerns about mismanagement and inefficiencies, they are addressing procurement professionals. It is our duty to ensure that every procurement decision aligns with sustainable practices,” Kabamba stated.

Kabamba acknowledged that the government’s allocation of a significant portion of the 2025 national budget to procurement underscores the sector’s critical role in economic growth.

However, he cautioned that increased funding must come with increased responsibility and stringent oversight to prevent wasteful expenditure.

“It is unacceptable that suppliers are fully paid while projects remain abandoned. Effective contract management is crucial to ensuring that funds are used responsibly and that projects deliver tangible benefits to the nation,” he said.

The ZIPS president also stressed the importance of incorporating sustainability clauses in procurement contracts.

He cited the example of poorly constructed roads without drainage systems as an indicator of unsustainable procurement decisions that cost the country more in the long run.

Kabamba called for a stronger legal framework to curb procurement malpractices. He underscored the necessity of strict adherence to procurement regulations to ensure fairness, cost-effectiveness, and ethical decision-making.

“Compliance is not an option—it is a necessity. We must be vigilant in enforcing procurement regulations and holding all stakeholders accountable,” he said.

He further lamented the high number of legal cases arising from procurement mismanagement, warning that litigation over contract disputes burdens government institutions and delays service delivery.

Kabamba urged procurement professionals to embrace innovation and global best practices, particularly in contract execution and performance monitoring.

He noted that delayed projects and budget overruns are often due to inadequate procurement planning and a lack of structured evaluation processes.

“Procurement does not end at contract signing. It extends to contract execution and monitoring. Without proper oversight, we risk inefficiencies and substandard service delivery,” he cautioned.

To prevent such issues, he advocated for the implementation of structured and transparent procurement committee meetings that ensure rigorous evaluation of all procurement decisions.

Kabamba emphasized the need for procurement professionals to develop strategic thinking, negotiation skills, and emotional intelligence to navigate complex procurement processes.

He pointed out that professionalism in procurement is crucial to avoiding costly mistakes that lead to stalled projects and financial losses.

“Mismanagement of procurement leads to lawsuits, delays, and wasted resources. Procurement officers must prioritize ethical leadership and accountability in all transactions,” he asserted.

As Zambia continues to navigate economic challenges, Kabamba’s call for procurement transformation highlights the urgent need for reforms in the sector. His remarks serve as a wake-up call for procurement professionals to uphold integrity and efficiency in their operations.

With billions of kwacha at stake in the 2025 budget, the need for stricter oversight, sustainable procurement practices, and improved contract management has never been greater.

Whether Zambia achieves its development goals will largely depend on the commitment of procurement officers to implement these much-needed reforms.

The Procurement Transformation Workshop continues over the next two days, with discussions focused on strengthening procurement regulations, implementing digital solutions, and promoting sustainable procurement practices.