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.
Wilfykil answered the question on February 23, 2019 at 07:22
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Required:
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Required:
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Required
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