i) Kimani and associates
i) Key risk areas in government procurement system
– Fraudulent payments to suppliers
– Excessive fees for goods and services procured
– Inaccurate payments for goods and services
– Delays in paying for purchases resulting in damage to government reputation
– Breach of regulations, legal or company requirements
– Collusion between government procurement officers and suppliers for fictitious payments.
– Inflated prices for goods and services through collusion between suppliers and government procurement officers
– Payment for goods that were never ordered and delivered
– Non-compliance to procurement processes and procedures
– Lack of clearing defined procurement policies, processes and procedures
– Complex procedures not communicated to relevant procurement officers
ii) Possible measures to improve procurement system.
– Establish policy and procedures for procurement
– Policies, procedures for procurement properly communicated at all levels of management
– Set authorisation and approval procedures for procurement with different levels covering different cost levels
– Procedures for negotiating the best deals in the market place for a place for specific bulk purchased
– Set up of a dedicated procurement section in which case all procurement requests should be made through this unit to maximize the benefit of any negotiated deals
– Have an approved list of suppliers, ensuring that no purchases made outside of that list without authorisation
– Effective payment procedures
– Exception reports showing where transactions have not been authorized, where they fall outside of the established procedures.