Africa-Press – Eswatini. Eswatini Public Procurement Regulatory Agency (ESPPRA) has launched the market price reference catalogue for common use items, an initiative that will revolutionise the public procurement landscape in the country.
The catalogue is a result of the collaborative efforts of the ministry of finance, ESPPRA and Eswatini Economic Policy Analysis and Research Centre (ESEPARC) along with the suppliers who willingly provided their information for this cause.
ESPPRA engaged ESEPARC to conduct a survey of market prices for common use items with the aim of establishing the most competitive prices for predetermined common use items in the four regions of the country.
A total of 79 456 prices were collected in 17 categories, which included batteries, blinds and curtaining, building materials, cleaning materials and chemicals, computer consumables, electrical materials, fruits and vegetables, groceries, ICT, lubricants, oils and greases.
The catalogue aims to create an environment that fosters fair competition, incentivise suppliers to offer competitive prices, and ensure value for money.
This, in turn, will not only reduce government’s procurement spend but also stimulate economic growth and create opportunities for investment and development.
Speaking during the launch at Sibane Sami Hotel yesterday, Minister of Finance Neal Rijkenberg said the launch of the market price reference catalogue signified a new era of transparency and accountability in procurement.
“It is an opportunity for us to reshape the way we do business, to maximize limited resources, and to drive economic growth for the benefit of our beloved Eswatini,” said.
The minister said the catalogue would ensure a future where fair pricing is the norm and where procurement spending is a catalyst for progress.
“It is evident that the public procurement system drives our economy and it is through procurement that the government fulfils its promise to citizens in providing supplies for education, construction, maintenance of infrastructure, health supplies, pharmaceuticals and health equipment, agriculture supplies and farm inputs and security equipment, among others,” said Rijkenberg.
He highlighted that in the same vein, suppliers of these goods and services received income to run their businesses with multiplier effects, including job creation for the citizens, which leads to economic growth.
“As government we have an obligation to maximise every cent of our budget, thus better management of the public procurement sector with increased transparency, efficiency and value for money, is critical for achieving economic growth and boosting shared prosperity for all,” he said.
The minister said with procurement reforms at the forefront of the ministry of finance’s agenda, it was imperative to 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.
He stated that there were challenges in managing government’s procurement spend.
“Which currently stands at a staggering 22.6 per cent of our country’s expenditure,” said Rijkenberg.
He stated that the funds that could be redirected towards crucial sectors such as healthcare, education, infrastructure development and maintenance were being absorbed by inflated prices.
“This in turn erodes public trust, undermines our commitment to good governance and perpetuates unethical business practices,” he said.
He indicated that by tackling this issue head-on and implementing a transparency tool, government was sending a clear message that Eswatini was committed to upholding the highest standards of accountability, transparency and integrity.
Rijkenberg said the success of this initiative depended on the collaboration and commitment of every stakeholder and esteemed leaders of the different procuring entities.
“I implore you to embrace this price catalogue, ensure that your organisations adhere to fair pricing and value for money and to actively participate in our collective effort to create a more efficient and effective procurement system,” he said.
ESPPRA CEO Vusi Matsebula said the catalogue would allow for the agency to have a range of prices for common use items that are bought by central government, parastatals, state-owned enterprises as well as municipalities.
“We are trying to achieve price reference that offers a range of prices of 17 000 common use items, giving us the highest lowest and average mean of these prices,” he said.
Matsebula said the public procurement space going forward would require adherence to the prices, and in the event that a price was too high, the procuring entity would not be expected to be procuring those items from that particular supplier.
“Now that we have launched the catalogue and will publish it on our website, it has become effective,” said Matsebula.
He indicated that moving forward, suppliers would have to adhere to the prices and procuring entities are expected to use the prices when evaluating tenders.
“Auditors will also have to use the catalogue against these prices,” he said. He said the survey further revealed that the majority of economic activity in the country took place in the Manzini and Hhohho regions.
“79 per cent of the prices collected are from Hhohho and Manzini regions, Lubombo and Shiselweni recorded zero prices for some items such as blinds and curtaining, cleaning materials and chemicals as well as ICT,” said Matsebula.
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