Public Procurement System Challenges in Developing Countries: the Case of Zimbabwe, International Journal of Economics

Purpose: The purpose of this paper is to provide an overview of the public procurement system challenges in developing countries with reference to Zimbabwe, addressing the extent to which the procurement systems have resulted in disgruntlement by pressure groups like the Affirmative Action Group (AAG) and the Upfumi Kuvadiki over the awarding of tenders to foreign owned companies. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies on major government projects such as the supply of prepaid meters for the Zimbabwe Electricity Supply Authority (ZESA), the construction of the airport road in Harare and the expansion of Gokwe District Hospital were conducted. Findings: The findings suggest that most of the people tasked with the responsibility to procure resources are incompetent. For example the tender to supply ZESA with prepaid meters was flawed since it was the State Procurement adjudicators who were at fault. There was evidence of inadequate market enquiry in the awarding of most tenders, for example the City of Harare lost $80 million dollars in the construction of a 20km road instead of incurring a cost of around $10 million dollars. Delays in decision making resulted in the construction of a $600 000.00 district hospital in Gokwe North lagging behind schedule. There was also evidence of a high level of corruption activities in the public procurement. In 2011 a tender for the supply and delivery of malaria rapid test kits was withdrawn with participating bidders being refunded their tender fees because it had been corruptly flouted. Research limitations/implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that professional procurement practices must be adopted in Public institutions for the benefit of the country. Social Implications: Govern-ments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss the public procure-ment system challenges in developing countries with reference to Zimbabwe as to how it has caused disgruntlement among the pressure groups on the awarding of tenders.