The document discusses the role of public procurement in realizing Uganda's Vision 2040 objectives. It argues that procurement must be strategic and provide leadership if the goals are to be achieved. Vision 2040 aims to transform Uganda's economy and identifies large infrastructure and development projects that will require an effective procurement system to select suppliers and acquire the necessary goods, works and services. For procurement to contribute, it must be well-governed, efficient, and managed by skilled professionals working under supportive policies and frameworks.

1. Role of (Public) Procurement in the
Realization of objectives of 2040 .
Professor Benon C Basheka, PhD
DEAN, SCHOOL OF BUSINESS AND MANAGEMENT
UGANDA TECHNOLOGY AND MANAGEMENT UNIVERSITY
bbasheka@yahoo.co.uk, Mobile: +256782459354

2. INTRODUCTION
• The procurement function, represented by
procurement professionals, does not take a
leading role in many government agencies.
• There is often lack of procurement considerations
in organizational planning and the setting of
organizational strategy.
• The failure to even recognize procurement as a
profession; yet it keeps being fingered as the
source of most problems in government
implementation is worthy noting

3. In the Literature,
• A significant amount of procurement literature
reflects concern over perceptions of the field as a
merely clerical or tactical function.
• One group of authors captured this when they
described public procurement as the “Rodney
Dangerfield” of governmental activities; that is, it
gets no respect due to its routine and mundane
features (Gordon, Zemansky & Sekwat, 2000).

4. However,….
• Other authors like (McCue & Gianakis, 2001;
Matthews, 2005) argue that, procurement is
becoming more strategic.
• In all these divergent views in the literature, in
the context of our debate today, there is urgent
need for procurement leadership if the
aspirations of the Vision 2040 are to be realized
• Ammer (1974) over 30 years ago, surveyed
industry executives to investigate, among other
questions, their perceptions of the purchasing
(procurement) function.

5. He found that general managers saw:-
(1) Leadership as an unimportant characteristic
for purchasing managers;
(2) Purchasing as having little interaction with the
mainstream of management; and
(3) Little involvement by purchasing in strategic
decisions.

6. McCue and Gianakis (2001),
• Concluded from a survey of procurement
professionals that these professionals did not
consider planning—an activity aligned with
strategy and leadership—a major component of
their duties.
• The respondents also found planning to be
insignificant compared to other steps in the
procurement process.

7. • A later study by Johnson, Leenders & McCue,
2003) developed similar conclusions, finding that
procurement managers and offices have
relatively little to do with major organizational
activities.
• Taken together, this body of research indicates
that procurement is still considered by many
both within and outside the field to be a routine
function with little relation with organizational
strategy and leadership.

8. • Most people see procurement as dealing mainly
with questions of means (how to do something)
rather than with questions of ends (what to do).
• In order for procurement to be recognized as a
strategic function, its professionals must
participate in strategic decisions involving ends.
• Procurement needs to be redefined or
recognized as a strategic activity, thereby
elevating its members in prestige and
importance BUT most importantly the profession
must contribute to government objectives.

9. Government…
• Is the means by which state policy is enforced, as
well as the mechanism for determining the policy
of the state.
• Government of any kind affects every human
activity in many important ways
• Good things in society are done by
administrators (including procurement
professionals) but also all the bad things and
problems in society they take blame
• Governments historically acquire goods, works
and services to perform their functions.

10. Governments …..
• Use public procurement to undertake public
works, build roads, provide health care, and
provide education and public order (Errigde &
Mcllroy, 2002).
• All public activities undertaken by government
require an efficient and effective public
procurement system
• Willbrougby (1927) had long conceived supply as
part of the critical five areas that needed to
occupy the study of public administration.

11. How central is Public Procurement?
• If the procurement function fails to deliver
quality goods and services in a timely fashion and
at an economical price then the performance of
government suffers" (Coggburn, 2003, p. 4).
• The effective delivery of public services often
require the coordinated delivery of materials and
the like which the state purchasing apparatus
must accomplish (Hunja, 2003).
• It is difficult to imagine how government can
deliver substantial improvements in the wellbeing
of its citizens without a public expenditure system
that includes effective public procurement

12. Vision 2040
• Vision 2040 is a policy document by the Ugandan
government with aspirations being :-
– change the country from a predominantly low
income to a competitive upper middle income
country with a per capita income of USD 9,500
• The vision sets out the goals and targets to be
achieved for the desired socio-economic
transformation
• The aspirations have been arrived at following a
nation-wide consultative process, and it reflects
the collective understanding, aspirations and
determination of Ugandans

13. Vision 2040 is
• Conceptualized around strengthening the
fundamentals of the economy to harness the
abundant opportunities around the country
• The opportunities include:
– Oil and Gas
– Tourism, Minerals
– ICT business
– Abundant labor force
– Geographical location and trade
– Water resources
– Industrialization and Agriculture

14. The fundamentals of the Vision are:-
– Infrastructure (energy, transport, water, oil and gas
and ICT)
– Science, Technology, Engineering and Innovation
(STEI)
– Land, Urban development
– Human resources
– Peace, security and Defense

15. For procurement to
• Be central in the attainment of Vision 2040 it
must be:
– Of the right type and form
– Well governed-efficiency and effectiveness
– Managed by the right people with a good ideology
• Working under the right policies and frameworks
• Exercise a multiple set of skills and capacities
• Working for the good of their country
• Professional

16. Public procurement
• Refers to the process through which the state
(government) acquires goods, works and
services needed to discharge its public
functions.
• Public Procurement is both a field of study and an
area of practice and as an area of practice it is as
old as governments and has moved the long
journey of civilization

17. As a practice area,
• Public Procurement has been part and parcel of
the history of public administration-management
of public affairs
• Both the theory and practice parts of
procurement are central to Vision 2040

18. • Unlike commercial transacting in the private sector,
public procurement is often a highly structured, and
regulated function done following specific detailed
procedures
• Many regulatory instruments focus on the rules
governing the process leading up to the conclusion
of the contract, in particular the process through
which a supplier is identified and a contract awarded
to that supplier

19. Public Procurement
• Links the government’s development agenda and
PFM system with social & economic outcomes.
• It cuts across many other aspects of public sector
management, but sometimes misunderstood to
be simply a narrow procedural activity
• The objective of procurement is the achievement
of the best value-for-money outcomes through
processes that are- transparent, Efficient, facilitate
equal access and open competition, and promote
innovation.

20. Uganda’s Vision 2040
• Identifies core Projects that need to be started;
all of which require an excellent procurement
system
• The vision identifies the following projects:
– A Hi-tech ICT city and associated ICT infrastructure
– Large irrigation schemes in different parts of the
country
– Phosphate industry in Tororo
– Iron ore industry in Muko-Kabale
– Five regional cities (Gulu, Mbale, Kampala, mbarara
and Arua)

21. …..
• Five strategic cities (Hoima, Nakasongola, Fort
portal, Moroto and Jinja)
• Four International Airports
• A standard gauge railway network with high
speed trains
• Oil refinery and associated pipeline infrastructure
• Multi-lane paved national road network linking
major towns, cities and other strategic locations

22. • Globally competitive skills development centres
• Nuclear power and hydro-power plants (Ayago,
Isimba, Karuma and Murchison Bay)
• Science and Technology parks in each regional
city
• International and national referral hospitals in
each regional centers
– What about regional universities of science and
technology?

23. Vision identifies some key strategies
and Policy Reforms needed-
– Review the architecture of government service
delivery system to act as a unit, harness synergies
and deliver public services efficiently and effectively-
(teaching and practices of public procurement
become critical)
– Pursue policies aimed at leapfrogging especially in
the areas of science and technology, innovation,
engineering, human resource development, public
sector management, and private sector development

24. • Develop and implement a national science and
technology and engineering system that will help
in initiating, importing, and diffusing new
technologies-[Procurement will be central in
this goal at each of the stages]
• Front-load investments in infrastructure targeting
areas of maximum opportunities with focus on
oil, energy, transport and ICT-[Can these be
possible without a sound public procurement
system?]

25. • Accelerate industrialization through upgrading
and diversification to effectively harness local
resources, off shoring industries and develop
industrial clusters along value chains
• Make land reforms to facilitate faster acquisition
of land for planned urbanization, infrastructure
development, and agricultural commercialization
among other developments-[Refer to recent
PPDA amendments on procurement of land]

26. • Strengthen the three arms of government and
ensure checks and balances and taking decisions
that have national interest-ministers will not be
members of parliament to foster separation of
powers, and second, the judiciary will be
reformed to make it more independent and
proactive
• Develop and nurture a national value system to
change citizen’s mindsets, promote patriotism,
enhance national identity, and nurture a
conducive ideological orientation

27. • Accelerate government reforms in the education
system and the curriculum to obtain a globally
competitive human resource skills relevant to the
development paradigm-[Are Procurement
people in Uganda adequately prepared?]
• Review and strengthen foreign policy to enhance
collaboration in accordance with existing and
future agreements, standards etc-[procurement
will take a regional and global dimension]

28. • Directly invest in strategic areas to stimulate the
economy and facilitate private sector growth
• Develop and implement a specific policy to
attract and retain top rated professionals in the
universities to make Uganda a centre of
excellence in the region-china has that strategy
but the situation in Uganda is different

29. For Procurement to
• Be a vehicle for Vision 2040 attainment, it must
be well governed, BUT:-
– Some questions on whether public
procurement is well governed in Uganda have
been raised
– Policy makers must understand the centrality
of this function to government goals
– Professionals must be true servants

30. Globally,
• Public Procurement regulations have been amended and
procurement is one of the fastest growing professions in
the world and the professionals are diverse in terms of:
– Age
– Gender
– Experience and exposure
– Educational attainment
– Level of Professionalization
– Trust
– Competence and skills

31. In Uganda, it is common to hear of :-
– Procurement Fraud and corruption e.g. construction
sector?
– Informal bid opportunity networks and cartels in all
sectors are building up systematically
– Administrative Reviews and Complaints keep flying
everywhere despite it being a sign of openness
– Court cases revolving public procurement are
emerging

32. It is also now clear that:
– Complaints of Procurement delays and bureaucracy
– Procurement professional integrity questions
– Politicians/policy makers have increased their hostility
towards public procurement for failed projects
– ‘Bureaucrats’ accuse procurement of being ‘very
bureaucratic’ and too much rule based hence affecting
service delivery especially if it does not serve their
interests.

33.  The suppliers and academicians have had their serious
issues with this function of government
 Informal structures and networks seem to beat formal
structures and in some cases proving to be more
influential.
 Public service ‘disease’ entering public procurement-onslaught
on meritocracy and entrenchment of patronage
systems as most accounting officers want their ‘own people’
to manage the public procurement processes in their
entities.

34. Resources meant for procurement activities are
underutilized and heavily misused
Institutions put in place to be the eyes and ears of
the people are ineffective in facilitating the very
individual and collective action needed to resolve
these problems.

35. As a result,
• Services range from poor to non-existent
• Infrastructure cannot be maintained or completed in
the right specifications
• Drug supplies for the health facilities are openly
looted
• School and other construction buildings, textbooks
being in a mess
• Promising projects remain uncompleted due to
procurement related project

36. Why not Re-think our Public Procurement?
A: Do we have the right infrastructure?
– Structures
– Processes
– Procedures
– Practices
– Policies
– Behavior attributes
– Skills and competencies (CSCU)

37. B: Systemic issues
– We need to re-think how to:
– Separate politics from public procurement
–Reduce wastes and inefficiencies in public
procurement
–Reduce the costs of litigation caused by professional
negligence
–Reduce supply chain bottlenecks and risks
– Contribute to employment and support to SMEs and
local firms through public procurement decisions
– Facilitate the development of the private sector
through better procurement policies
– Addressing unnecessary delays due to procurement
rigidities

38. C: Refocus on how to use PP to:
– Appropriate legislations and policies
– Investing in pre-contract analysis
– Invest in monitoring and evaluation
– Contribute to expansion of local private sector
through reduced technicalities
– Enforcing tax compliance policies of
government
– Ensure sustainability through green
procurement practices
– Contribute to corporate social responsibility

39. D: Broadly, we need to rethink
– Procurement and improvements in the Roads
sector
– Procurement and improvements in Education
sector
– Procurement and improvements in the Health
sector
– Procurement and improvements in the oil and
gas sector
– Procurement and the ICT industry
– Procurement and National defense services

40. • Procurement and regional integration
– Role of public procurement in regional
projects
– Role of Public Procurement in Regional
trade
• Public Procurement and Financial
expenditures of government
• Establishing foundations of a good public
procurement system

41. Note that:
• Current Corruption blamed on public procurement is a
symptom of a larger disease — the failure of institutions
and governance, resulting in poor management of
revenues and resources and an absence of delivery of
public goods and services.
• We need to be more strategic and rigorous, identifying
and addressing corruption’s underlying causes and
examining the weaknesses in key institutions and
government policies and practices.

42. Policy Suggestions
• 1. Professionalization of procurement: Can we
accept that public procurement has
professionals?
2. Composition of procurement structures: Do we
need all the structures? Who should exactly be in
PDUs?
• 3. Centralization of core projects: Can we centralize
core national projects?
4. Temporary Committee of Procurement: Can we
support the temporary nature of all committees of
public procurement?
5. Revisit Contracts to foreign companies and
providers: How can we build our local capacity?

43. 6. Promoting Value for money: Do the current
processes, practices and policies promote value
for money?
7. Public procurement reporting: Can we have
quarterly and yearly reports on the status of
public procurement in an entity?
8. Corporate governance: How do we
reconstitute the board responsible for public
procurement?

44. 9. Monitoring and coordination: Can we improve our
capacities in this critical area?
10. Role of Politicians in public procurement: What
should be the exact role of politicians and technical
people in public procurement?
11. PPDA vigilance on complaints: Can PPDA be put to
accountability for certain wrongs in PP?

45. To achieve anything:
We need to re-think
• Attitudinal change
• Change of behavior
• New skills set
• Competence –based professional development
• Constant research
• Influencing Policy

46. Conclusion
• Vision 2040 offers immense opportunities for
procurement professionals
• The vision requires high level involvement of
procurement professionals
• The procurement professionals need to be with a
new set of skills and competencies

47. • It is the duty of professionals to discuss and
advise government of the procurement
implications as contained in the vision 2040
• The Policy Makers must come to a true
realization that procurement needs to be
regarded as central to the success of the plan
• Procurement needs to be recognized by law
through passing the long delayed IPPU bill and all
of us will be winners!

48. ….
THANK YOU