The Zimbabwe National Army (ZNA) has unanimously adopted business resolutions that came out during a seminar with various business suppliers held at the Zimbabwe Institute of Public Administration and Management (ZIPAM) on 16 May 2023.
The ZNA organised the seminar after realising that the current business environment obtaining in the country had become volatile and unpredictable. The increase in prices of goods and services had almost become uncontrollable creating a fertile ground
for graft to thrive along the ZNA purchasing and supply chain.
The Chief of Staff Administrative Staff, Major General Emmanuel Matatu, and Chief of Staff Quartermaster Staff, Major General Hlanganani Dube graced the seminar where suppliers were given the floor to spell out challenges they were facing in dealing with the ZNA.
In his opening address, Chief of Staff Quartermaster Staff, Major General Dube said; “In the wake of these developments, this seminar is meant to enable us to fully understand the new system and share ideas on how best we can resolve challenges being faced that include delayed funding, runaway inflation, overpricing, reversal of payments, failure to deliver goods, delivering sub-standard goods, organised corruption by some of our staff and some suppliers to mention but a few.”
He told the seminar that the last suppliers’ seminar in 2019 had prompted the Ministry of Finance and Economic Development to introduce the Price Due Diligence Process in July 2022 in order to curb the widespread overpricing which was getting out of control.
“I will also hasten to acknowledge that it is equally important to constantly have a continuous review of these prices if doing business is to make sense. I am happy to inform you that the gazetted prices for basic goods and services are now available on Treasury Instructions 02, 03 and 06 of 2023. l would like to assure you that as long as you deliver goods or render services to the organisation at the right prices, you will get all your funds,” said Major General Dube.
The seminar came at a time when local business suppliers were overpricing their goods and services since they were quoting prices in United States Dollars in a bid to cushion themselves against the impact of inflation, a practice which was contrary to Procurement Regulatory Authority of Zimbabwe (PRAZ) regulations.
During a presentation by one of the suppliers, Mr Collen Rimai, Director of Condimax Investment, it came out that the prevailing difficult micro-economic environment was threatening to jeopardise existing good relations between the ZNA and the indigenous business community. “We cherish the good business relationship between the ZNA and the suppliers as you have been supporting the indigenous companies from their inception.”
However, Mr Rimai lamented the skyrocketing inflation in the country which he said was posing challenges to their expectations as business.“During the Procurement Regulatory Authority of Zimbabwe annual conference in October 2022, the Head of State and Government called for an effective Public Procurement System that ensures fairness, cost effectiveness and transparency so that Government objectives to modernise and industrialise the country are achieved.” Said Mr Rimai.
The seminar was also told that PRAZ had already made progress on efforts to eliminate loopholes in the Public Procurement system, which was characterised by overcharging of basic goods and services to the Government.
At a communique after the seminar, three resolutions were announced as having been unanimously adopted between the ZNA and various suppliers. The seminar welcomed and adopted that suppliers should find foreign currency on their own. The ZNA acknowledged the outstanding legacy debt and promised to work on it. The ZNA agreed to request for authority for suppliers to quote in United State Dollars which would be paid in Real Time Gross Settlement at the inter-bank rate on date of payment.
The seminar was held under the theme: “Going Back to Basics in Order to Restore Efficiency in the ZNA Procurement System and Supplier Confidence.”