Lack of due diligence costly for Namibia’s economy

A lack of due diligence on the part of procurement administrators, who should work in the best interests of the country rather than their own narrow-minded interests, causes enormous financial loss to Namibia.

Procurement is mostly carried out in a professional manner.

However, there are instances in which this is not the case. The question is, how do we ensure transparency and, more importantly, how do we manage cases of unethical behaviour?

It should not be surprising that we are selfish people. Many companies that are awarded government contracts are not creating jobs for others. Many are awarded a huge amount with only one employee. It is hurtful.

This amounts to total moral decay. We just take government contracts for granted.

This evil is deep within the hearts, minds, and very essence of mankind itself, and is exercised only by a few who are given the opportunity to go above and beyond their needs. This poses a threat to all Namibians.

We have entrusted our destinies and futures to a few who openly exploit for their own selfish gain, at the expense of the rest of Namibians, who are considered expendable in the face of their greed.

We are a country of haves and have-nots.

Costs and benefits

Tenderpreneurship is one of the biggest contributors to unprincipled behaviour and unemployment in Namibia.

This hurts the poor disproportionately, hinders economic development, reduces social economic development, and fosters uncertainty, unpredictability, and disrespect for governing institutions and authority.

As we have frequently seen over the past few years, months, weeks, and days, our existing procurement system needs a radical overhaul. We are destroying Namibia's economy.

The time to act is now, but we have to be unequivocal.

Moreover, as an independent economic and business researcher, I am going to look at it like this: is the Central Procurement Board of Namibia's (CPBN's) method of arriving at decisions the best for Namibia?

You see, every decision you make has its costs and benefits. Now, if this process leads to this, what do we do to stop this financial obligation from coming back on us and making us poor?

The way to solve such problems is through due diligence in arriving at decisions; in other words, we must look at decisions very carefully not only for the burden imposed on the present generation but on future generations.

Improve professionalism

Research indicates that problems in governance can be attributed to poor operational practices and a lack of due diligence on the part of procurement administrators. An effective government shareholder management model that addresses the key challenges of governance will improve the CPBN and better protect government assets.

The CPBN was established through an Act of Parliament to conduct the bidding process on behalf of public entities for the award of contracts.

Let’s be brutally honest: if you are in a leadership position and you simply mouth the words instead of living the values, everyone will know the difference.

Remember, a good example is worth much more than a stack of memos and emails. Public procurement is fundamental to government service delivery as it often involves large sums of money.

Furthermore, procurement officials are important because they ensure that the sector gets value for money. Proper procurement management ensures fairness, openness, and accountability.

Hence, a lack of professional ethics compromises economic transformation. We cannot afford to squander the taxpayer’s money.

Reforms needed

Therefore, effective economic governance depends on the strength of the institutional framework and the competence of the individuals to take bold, practical, and rational decisions.

Where the institutional framework is fragile and the decision-makers are incompetent or indifferent, the policies will be worthless. In Namibia, it remains one of the challenges to preventing and combatting unethical conduct on the part of those who hold public office.

These are the people who are expected to be the custodians of the values around which the nation could coalesce and hold an organic dialogue about the future. This should be understood as a means of promoting good governance and safeguarding the welfare of the people and the peace of the nation.

Namibia cannot afford to slide deep into an abyss of unethical practices. It destroys the moral fabric of society. A moral crisis is difficult to reverse because the principles of right and wrong have been violated.

This is completely unacceptable – giving out millions of dollars to a few people while more than 60 to 70% of the population lives in poverty. This practice kills our economy and increases unemployment and crime rates.

It is therefore of vital importance that Namibia restructure its economy so that its wealth is shared by all people, to ensure that everybody enjoys a decent and rising standard of living.

Boost growth

Globally, Namibia has the third-highest levels of income inequality, according to the World Bank.

The richest 10% of the global population currently take home 52% of the income.

The poorest half of the global population earns just 8%.

In conclusion, Namibia requires a better set of policies, including political, economic, and institutional reforms, to break the cycle of poor leadership.

Eliminate public resource mismanagement and, to ensure quality service delivery and effective administration, strengthen the rules of law as well as promote credibility, accountability, and transparency.

Once Namibia successfully manages to get rid of the variables associated with poor governance and institutions, it will be in a better position to strengthen and boost its growth performance.

Therefore, the application of good governance and reforms to the CPBN should be supported through an understanding of the concept of leadership, a clear demarcation of the roles of key players, and holding the board and management accountable.