Concept note for professionalizing public

procurement in Uganda
1.0.

INTRODUCTION

This concept note serves to be a basis for a discussion on professionalizing public procurement in
Uganda. Following the World Bank sponsored workshop held in Addis Ababa on it was agreed by
the Ugandan team that we need to harmonize public procurement professionalizing with other sister
countries if we are to benefit from the African initiatives of forming a procurement professional
association. As a background, Kenya, Tanzania, Malawi, etc all have public procurement recognized by
the countries through appropriate legislations. Uganda has been lagging behind in this direction.
However, in June 2011, through the PPDA amendment process, a consensus was reached in the
parliamentary committee that Uganda needs to move in this direction. The ministry of finance committed
itself in fast tracking this process. On a positive note, the amendments were able to at least recognize that
procurement in Uganda is a profession and went further to define who a procurement specialist is. They
also recognized the need for the representation of a procurement specialist on the PPDA Board and
Tribunal.

2.0.

BACKGROUND

Professionalism and ethical behavior of procurement practitioners is becoming a central concern among
policy makers, practitioners, academics and development partners. The Recently Launched national
development Plan of Uganda (2010) has singled out public procurement corruption as one of the key
impediments likely to affect the realization of its objectives. One of the biggest challenges that Uganda is
experiencing is in Public Procurement is corruption. According to the 2007 African Peer Review
Mechanism Report, Uganda was estimated to be loosing USD 258.6 million annually through corruption
and procurement malfeasance. If the country could eliminate corruption in public procurement, it would
save USD 15.2 million a year. In the assessment of the countrys Auditor General, procurement accounts
for 70% of public spending, of which an estimated 20% is lost via corruption.
Realizing the above challenges, the Institute of Procurement professionals of Uganda (IPPU) was
established in 2008. It was established to bring together both the public and private sector procurement
professionals in Uganda. The organisations main objective is to PRESCRIBE, REGULATE the
PRACTICE and CONDUCT of members of the Procurement profession and to promote Procurement
PROFESSIONAL STANDARDS in Uganda. Kenya, Tanzania, Malawi, and South Africa have local
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procurement professional associations supported by Acts of Parliament. In East Africa Uganda besides
Rwanda and Burundi, does not have a Procurement Practitioners Bill establishing the formation of the
Institute of Procurement Professionals of Uganda (IPPU) by an act of parliament. Kenya and Tanzania are
the only East African Countries that have been established by acts of parliament. Recent attempts at
harmonising public procurement systems in the East African region is seriously hampered by this
weakness. In the 2010 East African Public Procurement Forum in Tanzania, this came up as one of the
key challenges that will affect the harmonisation agenda. Procurement professional associations are
destined to play a critical role in influencing the performance of public and private procurement systems.

Trade Facilitation
Uganda is a landlocked country, and relies heavily on agricultural exports. It also relies on other countries
for trade as most of her exports are bulky and are transported by land and/or sea. It imports a number of
items ranging from petroleum, petroleum products and related materials, road vehicles, iron and steel.
Uganda is a transit route for a number of other countries, especially those in the Great Lakes region.

The Uganda Investment Climate Assessment (World Bank and UMACIS, 2004) documents some
interesting facts about trade facilitation aspects in Uganda. In the survey, it is reported that foreign firms
report more sensitivity to certain constraints in the investment climate, namely, regulatory policy
uncertainty, and customs and trade regulations. It is important to acknowledge these facts as they could
form a strong basis for support for capacity building and technical assistance. Much as Uganda has made
commendable progress in instituting trade facilitation measures, the World Bank and UMACIS note that
some constraints still exist and its essential for capacity building and technical assistance to be carried in
a bid to improve. Trade facilitation remains one of the core elements of the Ugandan trade policy.

The Ministry of Finance, Planning and Economic Development in 2007 drafted a Bill and a Cabinet
which update is awaiting submission to the Cabinet due to some legal technicalities; this bill was not
taken further to its logical conclusion. The IPPU subsequently registered as a company to form a
foundation for its operations.
Addressing the problems in public procurement now requires a partnership among critical players in both
public and private sector. Through Strengthening the IPPU and institutional framework and linking with
the other procurement professional bodies within EAC, IPPU will be in position to;

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Influence public procurement policy at a national level through offering procurement professional
advice and a home for all professionals to abide by an established procurement professional code of
conduct;

Certification of its members through setting competence levels that must be continuously attained by
practicing professionals and those aspiring to join the profession.

Build the

Procurement and Supply Chain Management capacity of its members by helping

procurement professionals to excel via practical skills development, career enhancement and
networking opportunities;

Admit members, give input in approving courses where and to provide for the qualifications and
registration of students of the Institute; ensure the maintenance of professional standards among
members of the Institute;

Encourage research in procurement and Supply Chain Management and allied subjects, for the
development of the Procurement profession in the country together with the competent authorities;

Regulate the conduct and promote good ethical standards and discipline of the members of the
profession;

3.0.

PROBLEM STATEMENT

The public procurement profession in Uganda has for many years had the reputation of being infected by
highly unethical behaviour. If not initiated by the procurement professionals themselves, then through
pressure from the management and politicians in the public sector. This reputation has deterred the
serious professionals, while instead attracting the more frivolous types. With the enactment of the Public
Procurement and Disposal of Public Assets Authority in 2003 some new ethical measures were instituted
where all civil servants in Procurement and Disposal Entity and all experts engaged to deliver specific
services to the Entity were to sign special Code of Ethical Conduct specified in the Fifth Schedule of the
PPDA Act. However the ethical dimension is particularly important because the current ethical
frameworks appear to be weak and self-regulation is virtually non-existent. The IPPU can not provide
examples of members having been excluded on ethical grounds, despite numerous examples of
misconduct.
With procurement professionals occupying a central role in the public expenditure cycle, the necessity of
high moral and ethical standards becomes pertinent, and there is a need for strengthening the Institute of
Procurement Professionals of Uganda to enhance proper self-regulation mechanisms among procurement

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professionals which will include the exclusion of membership or other sanctions, once the ethical
standards are violated.
In the findings by the Country Procurement Assessment Report (CPAR) Volume I 2004; it was noticed
that CIPS a locally registered group of individuals who have passed the UK CIPS course and the
Procurement and Logistic Management Association (PALMA) were weak procurement/purchasing
professionals associations and neither did focus on public procurement.
There is, however, a need to strengthen the institutional and legal framework of the Institute of
Procurement Professionals of Uganda which together with the Public Procurement and Disposal of Public
Assets Authority (PPDA) will promote the procurement profession, through research, training and
development of members and other stakeholders.

4.0.

WAY FORWARD

In order for the IPPU is to achieve and fully carry out its mandate there is need to strengthen its
institutional and legal framework. Having an act of parliament put in place as is the case with the
Accountants, Engineers bodies to mention but a few will see the IPPU fully operationalising its mandate.
To achieve this, the IPPU will have to establish strategic linkages with the Government of Uganda
through its key organs like Ministry of Finance, Planning and Economic Development, the Public
Procurement and Disposal of Public Assets Authority, the Accountant General, the Auditor General and
the development partners.
The Ministry of Finance, Planning and Economic Development drafted a Bill and the proposed
Cabinet Memo awaiting submission to the Cabinet. The Honorable Minister of Finance, Planning and
Economic Development also promised to take on the IPPU agenda to make sure that a procurement bill is
put in place as soon as possible and brought to Parliament for enactment.
The Accountant General, PPDA and the Solicitor General being the key government authorities
responsible for the Procurement Cadres at both the Central and Local Government could make it
mandatory that all civil servants to occupy the role of procurement should be certified by the IPPU and
given annual practicing licenses.
Various reports from development partners have noted the need to address the challenge of integrity in the
procurement profession; however this is almost impossible without a strong IPPU. The development
partners will help in strengthening the institutional structures through creating strategic linkages with
them.
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The Institute being a nascent organization has a number of challenges which are financial, material and
human resources. We call upon the government of Uganda and the development partners to help in the
establishment of strong institutional structures which will help in effective and efficient service delivery
of the IPPU.
Currently the IPPU is being accommodated by the PPDA at there offices in Nakasero and this has a way
affected its corporate and public image. Not only has this affected the image but it has adversely affected
the institutional of functional organizational structures that are very vital in enhancing effective and
efficient service delivery. We seek support to help in establishing a home and reference point for
procurement in Uganda.
Strengthening the institutional and legal framework of the Institute of Procurement Professionals of
Uganda will go a long way in curbing procurement related corruption and establishing strong profession.

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