The Public Procurement (Amendment) Act 2011

Link to law: http://www.parliament.gov.zm/node/3207

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Public Procurement Amendment Bill 2011
Public Procurement [No. 15 of 2011 207
(Amendment)

Enactment

Short title

Act No. 12 of
2008

Amendment
of section 12

Act No. 15 of
2003
Amendment
of section 19

Amendment
of section 22

GOVERNMENT OF ZAMBIA

ACT
No. 15 of 2011

Date of Assent:12th April, 2011

An Act to amend the Public Procurement Act, 2008.

[15th April, 2011

ENACTED by the Parliament of Zambia.

1. This Act may be cited as the Public Procurement
(Amendment) Act, 2011, and shall be read as one with the Public
Procurement Act, 2008, in this Act referred to as the principal Act.

2. Section twelve of the principal Act is amended by the deletion
of subsection (2) and the substitution therefor of the following:

(2) A procurement shall only be carried out by a person
qualified and knowledgeable in procurement in accordance
with the Zambia Institute of Purchasing and Supply Act, 2003.

3. The principal Act is amended in section nineteen—
(a) by the insertion of “(1)” between “19” and “A”; and
(b) by the insertion, immediately after subsection (1), of the

following new subsection:
(2) A Procurement Committee shall—

(a) appoint the chairperson of the sub-committee referred to
in subsection (1); and

(b) appoint the head of a procurement unit in an institution
where a sub-committee is established, as an ex-officio
member of, and secretary to, the sub-committee.

4. Section twenty-two of the principal Act is amended—
(a) in subsection (1), by the deletion of paragraph (b) and the

substitution therefor of the following:
(b) standard solicitation documents prior to their issue, upon

approval by the Authority;
(b) by the deletion of subsection (8) and the substitution

therefor of the following:

Copies of this Act can be obtained from the Government Printer,

P.O.Box 30136, 10101 Lusaka Price K3,000 each

(8) The authorisation of the appropriate approvals
authority shall be obtained for all subsequent
stages of the procurement process; and

(c) by the insertion immediately after subsection (8) of the
following new subsection:

(9) The authorisation issued under subsection (8) may
be cancelled or re-started on the ground that
the authorisation was given by an approvals
authority not authorised to do so under this Act:

Provided that the Authority may
authorise the continuation of the
procurement where it determines that the
procurement was conducted in a
transparent manner and that it is in the
public interest to do so.

5. Section thirty-nine of the principal Act is amended in
subsection (4) by the deletion, immediately after the word
“Authority”, of the words “in public procurement standards”.

6. The principal Act is amended in section forty by the deletion
of subsection (1) and the substitution therefor of the following:

(1) A public officer and a member of a Procurement
Committee shall keep confidential the information that comes
into the public officer’s and member’s possession relating to
procurement proceedings and bids, including any bidders
proprietary information.

7. Section fifty-four of the principal Act is amended in paragraph
(b) of subsection (2) by the deletion, immediately after the word
“section”, of the words “fifty-one” and the substitution therefor of
the words “fifty-three”.

8. Section seventy-three of the principal Act is amended in
subsection (1) by the deletion, immediately after the words “is
employed”, of the words “or over which the public officer exercises
any supervisory or oversight authority”.

9. Section seventy-five of the principal Act is amended by the
insertion, immediately after subsection (2), of the following new
subsection:

(3) Without prejudice to the generality of subsection (2), the
Authority may, where a public officer contravenes any provision
of this Act, recommend to the employer appropriate administrative
and legal sanctions on the public officer, including—

(a) disciplinary proceedings;
(b) suspension from employment;
(c) demotion;
(d) surcharge;

208 No. 15 of 2011] Public Procurement
(Amendment)

Amendment
of section 40

Amendment
of section 39

Amendment
of section 54

Amendment
of section 73

Amendment
of section 75

(e) transfer or refusal of transfer;
(f)summary dismissal; or
(g) any other recommendation that the Authority may

consider appropriate.
10. The First Schedule to the principal Act is amended by the

deletion of paragraph (1) and the substitution therefor of the
following:

(1) There is hereby established the Board of the Authority
which shall be the governing body of the Authority and shall
exercise and perform the powers and functions of the
Authority.

11. The principal Act is amended by the repeal of the Second
Schedule and the substitution therefor of the Second Schedule set
out in the Appendix.

APPENDIX
(Section 11)

SECOND SCHEDULE
(Section 84)

TRANSITIONAL PROVISIONS

1. (1) The provisions of this Part shall cease to have effect on
31st December, 2012, or such later date prescribed by the Minister
by statutory instrument.

(2) During the interim period, the Authority shall manage and
effect a gradual decentralisation process and shall—

(a) provide secretariat services to the Central Tender
Committee;

(b) assess the capacity of procuring entities;
(c) issue and update the levels of authority for procuring

entities;
(d) advise procuring entities on the actions needed to improve

their capacity ratings;
(e) facilitate capacity building in procuring entities; and
(f) advertise locally and abroad all tenders for the procurement

of goods, works and services for Government, local
authorities, parastatals and statutory bodies.

2. (1) There is hereby established the Central Tender
Committee, which shall consist of the following part-time members
appointed by the Minister:

(a) the Permanent Secretary responsible for financial
management and administration, who shall be the
Chairperson;

(b) the Vice-Chairperson, who shall be a Permanent
Secretary;

(c) eight Permanent Secretaries;
(d) a representative of the Attorney-General;
(e) the Deputy Governor of the Bank of Zambia responsible

for administration;

Public Procurement [No. 15 of 2011 209
(Amendment)

Repeal and
replacement
of Second
Schedule

Amendment
First
Schedule

Interim
arrangements

Establishment
of Central
Tender
Committee

(f)the Commissioner-General of the Zambia Revenue
Authority;

(g) the Director of Budget; and
(h) the Director-General and the Secretary to the Authority,

who shall be ex-officio members of the Committee.
(2) The members shall elect the Vice-Chairperson from among

the members who are Permanent Secretaries.
(3) A member appointed under sub-paragraph (1) may, in writing,

appoint a senior officer from the organisation that the member
represents to be the alternate and to attend and participate in their
stead at any meeting of the Central Tender Committee which the
member is unable to attend.

3. (1) The function of the Central Tender Committee is to ensure
that all procurement submitted for its prior authorisation is conducted
in accordance with this Act.

(2) The Central Tender Committee shall be the highest approvals
authority, during the interim period only, and shall provide prior
authorisation of specified stages of the procurement process in
accordance with this Act.

(3) The Central Tender Committee shall have an unlimited level
of authority, but shall have no authority over any procurement which
falls within a procuring entity’s level of authority.

(4) In order to build capacity in Procurement Committees—

(a) all submissions to the Central Tender Committee shall be
made through the procuring entity’s Procurement Committee,
which may reject a submission and require corrections to be
made, before onward submission to the Central Tender
Committee; and

(b) all decisions of the Central Tender Committee shall be
sent to, or copied to, the procuring entity’s Procurement
Committee, with written explanations of the reasons for
the rejection of a submission or any other variations
recommended to be made.

4. Subject to the other provisions of this Act, the Central Tender
Committee shall regulate its own procedure.

5. (1) The Authority shall provide secretariat services to the
Central Tender Committee which shall include the performance of
the functions of Procurement Units specified under this Act, where
the value of the procurement is above the capacity rating of the
Procurement Unit of a procuring entity.

210 No. 15 of 2011] Public Procurement
(Amendment)

Powers and
functions of
Central
Tender
Committee

Secretariat
of Central
Tender
Committee

Proceedings
of Central
Tender
Committee

(2) Notwithstanding the provisions of sub-paragraph (1), in
order to build capacity in Procurement Units, the Authority shall—

(a) work with the staff of a Procurement Unit of a procuring
entity in performing the functions; and

(b) review and advise on the work of the Procurement Unit,
prior to its submission to the relevant approvals authority.

6. (1) In order to maintain independence of functions, the
Authority shall ensure a separation of its secretariat functions
performed pursuant to paragraph 5 from all its other functions.

(2) The Authority shall establish a structure which ensures that
staff are involved in either secretariat functions or other functions,
but not both.

(3) Staff involved in providing secretariat services shall not be
involved in—

(a) monitoring compliance and procurement performance;
(b) assessing the capacity of procuring entities or determining

levels of authority;
(c) deciding on a list of bidders or suppliers to be suspended

from participating in public procurement; or
(d) any other function which could be considered a conflict

of interest.
7. (1) The Authority shall issue levels of authority for each

procuring entity which shall be determined by the capacity of each
procuring entity to undertake procurement.

(2) All procurement with a value above the level of the authority
determined under sub-paragraph (1) shall be submitted to the Central
Tender Committee for prior authorisation in accordance with
paragraph 3.

(3) The Authority shall assess the procurement capacity of each
procuring entity regularly and not less than once in twelve months.

(4) An assessment under sub-paragraph (3) shall be conducted
in accordance with guidance provided in regulations made under
this Act and shall take into account the capacity of both the
Procurement Committee and the Procurement Unit.

(5) The Authority shall, after each capacity assessment of a
procuring entity—

(a) advise the procuring entity of its capacity rating and level
of authority;

(b) advise the procuring entity on the actions needed to improve
its capacity rating; and

Public Procurement [No. 15 of 2011 211
(Amendment)

Separation of
functions in
Authority

Levels of
authority
and capacity
ratings for
procuring
entities

(c) facilitate, to the extent possible, any capacity
improvements.

(6) A procuring entity which has implemented measures to
improve its capacity may request the Authority to review its capacity
rating and level of authority and the Authority shall undertake the
review as soon as possible, but in no case later than three months
from the date of the request.

212 No. 15 of 2011] Public Procurement
(Amendment)