FUCULTY OF COMMERCE
DEPARTMENT OF BUSINESS MANAGEMENT
BACHELOR
OF
COMMERCE
HONOURS
DEGREE
IN
SUPPLY
CHAIN
MANAGEMENT
NAME
LIONEL NCUBE
STUDENT NUMBER
L0200255P
SUPERVISOR
MR T. NDLOVHU
TOPIC
The impact of Public Procurement and Disposal of Public Assets (PPDPA) Act on adaptation of
sustainable procurement practices.
Introduction
The procurement and disposal of public assets has accented the need for robust reforms not only
in Zimbabwe but the world at large. The initiative has been necessitated by the need to respond to
emergence of issues associated with transparency, fairness, accountability, integrity in the way in
which the public procurement is conducted. The initiative which seeks to attain public trust in the
execution of procurement process in a sustainable manner will determine the overall performance
of the public entities which is of focus in this study. Attainment of a transparent, fairly and
sustainable procurement practices requires diligence and robust procurement regulations which
are in line with global procurement culture. Sapir, Scraepen, & Tagliapietra, (2022), asserts that
achieving sustainable procurement seeks to make it mandatory practice rather than an option. In
view of this, the study seeks to determine how Zimbabwe's Public Procurement and Disposal of
Public Assets Act affects public sector organizations' adoption of sustainable procurement
practices.
This chapter aims to provide an overview of the history of the study, problem statement, research
aim, objectives, and questions. The study will also outline the research hypothesis element, the
study's importance, its assumptions, limitations, and the delimitations of the study. In addition, a
brief literature review and the study's methodology will be outlined in this research proposal.
Background of the study
Every institution at any level, points out to the importance of an effective administration of the
procurement process and the delivery system. WHO (2007) suggests that an efficient procurement
procedure guarantees the proper purpose, at reasonable rates, and at recognizable quality standards.
The regulations thus promote professionalism by offering extensive performance criteria, an
ongoing oversight, and evaluation via regulatory reports. The government of Zimbabwe has
launched the SASRA Initiative aimed at reforming the public procurement system in Zimbabwe.
Its primary focus is on increasing the effectiveness of the purchase process, through closing the
legislative and procedural gaps that constitutes entry points for wastage and corruption in the
procurement system. The Public Procurement and Disposal of Public Assets Act, 2017, was
promulgated to facilitate an easy of accessibility of procurement services by the general public,
and ensuring its enforceability. It combines previous procurement legislation, including directives,
into a single document. Despite the efforts of key partners with vast knowledge in the procurement
industry, like the World Bank, the International Trade Organization, the United Nations
Conference on Trade and Development, the World Trade Organization, and others, the
procurement function has not received much recognition mostly in developing countries’ majority
public entities. This can be a result of lack of knowledge about the benefits that the procurement
function brings to the overall firm or resistance by some individuals involved through underhand
dealings, malpractices and corruption. Studying the issues pertaining to the public sector is crucial
due to the significance of public organizations as entities created to serve the public and the
necessity of public accountability as stated by Trionfetti, (2000). Never before has the necessity
for public bodies, especially those in emerging nations, to have consistent methodologies for
carrying out the procurement function, so pressing. Delaying will make the performance, which is
already declining, worse, thus resulting in the loss of professionals, and as a result companies will
continue to incur unnecessary expenditure in hiring new professionals in this field.
According to Knight, Harland, Telgen, Thai, Callender, and McKenna, (2007), the procurement
function is evolving in the majority of developing nations from a clerical, non-strategic unit to an
efficient socio-economic unit that may influence decisions and adding value to the organizations.
One of the fundamental principles of procurement system and practice is that, it considers the total
cost of ownership at organizational or departmental level. This covers not just the purchase price
but also the time and money invested in pursuing such an ownership. It is possible to gain a better
grasp of the actual cost associated with obtaining any commodity or service by comprehending the
procurement process' phases, Baily et al, and (2004).
As Dzuke and Naude (2015) puts it, public procurement is important in enhancing performance of
public bodies which greatly weighs up delivery of services. The worldwide Gross Domestic
Product (GDP), public procurement makes is a paramount contributor of revenue as it accounts
for 15% to 20% of the GDP per capita, World Bank, (2017). Mendes and Fazekas (2017),
reiterates that, the European Union spend approximately 15% of its GDP on the purchase of
products and services. On another note, governments and other public entities around the world
typically follow a standardized procedure to procure supplies and labor required to complete public
projects. Coming closer home, the government of Zimbabwe has in recent years ,started reforming
the public procurement system in order to better serve the government and other public
organizations through a transparent procurement system across the board.
Although much effort and resources are being directed to ensure successful implementation of the
public procurement system , a number of issues, such as a lack of funding, red tape, unqualified
staff, and corruption to name a few , hinders procurement activities. The need for a more efficient,
transparent, and accountable public procurement system frequently drives reforms in procurement
practices and procedures. A number of financial laws, regulations, and policies have been
implemented since Zimbabwe's independence to combat corruption and other pressing issues
within the public procurement system. Through amendments to the constitution, parliamentary
legislation, legislative acts, administrative directives, and financial circulars and, procurement
reforms have been at the centre stage and its implementation has brought an ease of doing business.
The statement of the problem
Numerous public procurement processes experience neglect, lack of direction, poor coordination,
a lack of open competition and transparency, varying degrees of corruption, and, most importantly,
a shortage of trained and qualified procurement specialists who are capable of managing such
procurement departments in a manner that is professional, timely, and cost-effective. Although it
was anticipated that, following the procurement process, ensures the public organization to receive
value for money through high-quality services, good, and works, this has not been the case in other
industries (KPMG, 2008). All purchases and sales of public property must adhere to the
requirements of the Public Procurement and Disposal of Public Assets Act (PPDA). However,
there have been glaring problems in some counties with relation to non-compliance with the act,
particularly when acquiring goods and services.
The PPDA Act has addressed every facet of professional procurement best practices. The ethical
standards of the practitioners have, however, received little attention, which has opened the door
for corruption and its other connected activities. Inadequate staff training, independent
procurement auditing functions, a lack of accountability and transparency, and punishments
against officials who committed the offenses. These actions distorted the public's view of the deed
and undermined its credibility. Massive public resources have been wasted due to noncompliance
with the procurement policies, rules and regulations set by the government through the PPDA’s
procurement regulatory framework. As a result, a number of development initiatives have derailed
the upgrade of the procurement system in Kenya, and since then, a number of public employees
have not been paid on time. Therefore, this study has influenced the need to research how
Zimbabwe's sustainable procurement practices would have been impacted by the PPDA.
The objectives of the study
1. To analyse the factors influencing the ineffectiveness of the public procurement act
2. To assess the negative effects of public procurement act on sustainable procurement
practices
3. To identify strategies that can promote sustainable procurement practices
Research question(s)/Hypotheses
1. What is the level of awareness of the PPDPA Act among public entities in Zimbabwe?
2. How has the PPDPA Act impacted the adoption of sustainable procurement practices by
the public entities in Zimbabwe?
3. What are the barriers to sustainable procurement practices adoption by public entities in
Zimbabwe?
4. What measure can be taken to overcome the barriers and promote the adoption of
sustainable procurement practice?
Scope of the study
The Bulawayo City Council is the primary focus of the study region. This is due to the fact that
the bulk of the public institutions used in the study are situated in the metropolitan province’s
jurisdiction, and all of the researchers have well established bases of operations there as well,
which made the data collecting simple. The purpose of the study was to determine how the Public
Procurement and Disposal of Public Assets Act affected Zimbabwe's adoption of sustainable
procurement practices in a number of ways. In this case, a metropolitan society survey in Bulawayo
would be conducted to ascertain and explore how the public procurement act has impacted the
public utilities such as the Bulawayo City Council (BCC).
The metropolitan investigation will be carried out in the procurement department of the firm under
study. The city council situated in the western side of Zimbabwe is also in the country’s second’s
capital city named Bulawayo, which house a number organizations.
Significance of the study
The findings of the study will provide insights into the impact of the PPDPA Act in the adoption
of sustainable procurement practices in Zimbabwe. The study will also provide recommendations
for improving the effectiveness of the Act in promoting sustainable procurement practices in the
country. The study will contribute to the existing literature on sustainable procurement practices
and public procurement regulations, and will provide practical guidance for policymakers and
practitioners in Zimbabwe and other countries who seek to promote sustainable procurement
practices in public institutions. This study also seeks to put in context its findings to the already
existing study field and thus its significance is to add value to the current studies being undertaken
with the view to bring a new paradigm in how the world at large views the sustainable procurement
practice. Among other things, the study will address the weaknesses in the procurement system
such as corruption, transparency and accountability of procurement officers in discharging their
duties in the public service. The need to capacitate the staff through professional development and
training, so that they exhibit acceptable standard practices in the procurement system. The study
seeks to change the scope of the country’s general economy, impact sustainable development
which will drive growth and development of a brighter future in Zimbabwe. In addition, the study
would serve as a guide to improve on efficiency and effectiveness in public procurement in
Zimbabwe.
The process of conducting the research will benefit both the author and the researcher in a
significant way and thus enhance professional skills and obtain an in-depth understanding of this
subject. The research aims to further advance the author's academic studies in the field of
marketing and supply chain management. Among other things, the writer looks forward to attain
personal skills and attitude like communication skills and academic writing that will be acquired
through interviews and interactions with participants, data capture and presentation as well as
analytical skills, among others.
Assumptions of the study

The research findings based on the selected sample is representative of the whole
population.

All the records for carrying out the research would be made available to the researcher.
Literature review
To ensure that public procurement is conducted in a fair, transparent, and nondiscriminatory
manner, the government of Zimbabwe enacted and promulgated the Public Procurement and
Disposal of Public Assets Act (2017). The purpose of the law was to establish bodies and principles
that would standardize the public procurement process in an effort to make it more rational and
consistent. Since its inception, the Act has brought with it, a number of applicable modern
procurement principles and practices that are meant to fix a widespread corruption and
irregularities that have long been associated with public procurement. Several obstacles have
arisen during the act's adoption, however threatening the success of its goals. This the study will
explore relevant literature which are in line with the main study of this research. It is notable that,
a number of scholars have made strides in shaping the procurement industry across the globe and
as such literature review will provide the author with requisite knowledge and an in-depth
understanding of the subject.
There are two key pieces of legislation that guide management of public institutions in
procurement. These are, the Administrative Justice Act (Chapter 10:28) and the Competition Act
(Chapter 14:28). The Administrative Justice Act is primarily concerned with procedural aspects of
procurement while the Competition Act focuses more on promoting competitive procurement.
While public sector organisations have internal regulations that direct the procurement process
such regulations are not expected to conflict with Act of Parliament. Chikomwe, (2012) agrees
that Administrative Justice Act’s section 3 requires administrative authorities to act lawfully,
reasonably, fairly and to supply written reasons for awarding a tender and section 5 which deals
with the basis upon which non-compliance with section 3 is determined. He argues that, a basic
procurement process in Zimbabwe, must have the following identifiable components; prequalification, anti-fraud/corruption declarations, qualification criteria, eligibility, bid preparation,
bid submission, notification, adjudication and award criteria. In pre-qualification, the tender
process certifies genuine applicants as ones registered with the Procurement Regulatory Authority
of Zimbabwe (PRAZ). These applicants are expected to reveal their compliance with statutory
obligations to remit corporate tax to the Zimbabwe Revenue Authority (ZIMRA).When they
append their signatures to the anti-fraud declaration paper, bidders undertake not to flout the
procurement procedures like dangling inducements to members of the procurement committee. By
appending their signatures they also agree to be punished in the event that a fraudulent activity is
proved against them. The qualification criteria assess the potential capacity of the prospective
supplier to deliver goods or services in a timely manner and the litigation history if any, giving
preference to domestic or local suppliers.
Of late, the print media has been awash with reports of corruption and bribes in the public
procurement processes. Some matters have gone unreported, despite having been unearthed by
either internal or external auditors. While the rules and regulations on public procurement attempt
to plug loopholes for corrupt practices there seem to be no enabling legal framework to allow
bidder’s enforceable right to review when public entities breach the rules. The statutes are clear on
the oversight role of the Procurement Regulatory Authority of Zimbabwe on procuring entities.
A number of literature as asserted by Hunja, (2001) , state that the most successful procurement
systems are those that provide bidders a legal basis to challenge the actions of public procurement
officials when they breach rules . For this reason, the World Bank regularly carries out assessments
of procurement systems. It does carry these assessments in the countries where it lends, aimed at
identifying strengths and weaknesses of the entire public procurement sector.
It is also for this reason that the United Nations Commission on International Trade Law
(UNCITRAL) also carried out a study of procurement laws in many developing countries. As the
case with Zimbabwe, Hunja (2001) argues that one consistent weakness in most developing
countries appears to be the lack of an entity within government that is charged with overall
responsibility to ensure that the system is properly functioning. He contends that, the lack of an
entity that has oversight responsibilities creates serious gaps in the enforcement of rules and
regulations. In Zimbabwe, the most difficult challenge to install such an oversight body may be
the lack of political will at the highest levels of government ministries, to significantly overhaul
the existing system and capacitate the Anti-Corruption Commission so as to eliminate some
breaches and malpractices in the public sector.
Research Methodology
The study shall be guided by a pragmatism approach wherein a mixed method inquiry using both
qualitative and quantitative data will be used to improve on the reliability of the study results. The
target population will be comprised of government entities, employees and relevant stakeholders.
A sample of 100 respondents will be selected using a 95% confidence level, a 5% State owned
enterprise error, and a hypothetical 50% response rate.
A total of 80 individuals will constitute the sample which will be drawn from purchasing
department, accounts department, stores department and the administration (senior management)
of different organizations. In picking the sample, a simple random sampling method will be done
using random number tables. Simple random sampling method will be used because the sample
frame will have known characteristics of the population which is presumed similar. The minimum
required sample size will be calculated using the RAOSOFT online sample. In collecting the
information, the researcher will use three instruments which are interview guides, document
review and structured questionnaires. The questionnaire will be pre-tested for ability and
comprehension through a number of techniques combined before being administered to the
sampled population. Regression analysis will be used in this study. Logistic regression is
particularly a suitable method for this study, as it makes relatively few statistical assumptions and
is a good representative of the human decision-making process Abd-el-salam & Shawky, 2013;
Sharma,( 2018).
In addition, factor analysis will also be used. Factor analysis is a multivariate statistical method
that can be used to develop, refine and evaluate tests, scales and measures (Yong & Pearce, 2013;
Amodu et al., 2018). A pilot survey which consists of 10 respondents will be conducted at the
Lupane State University (LSU)’s Information and Communication Technology (ICT) department.
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