News / National
Mthuli Ncube warns Ministries over 'procurement chaos'
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Finance Minister Professor Mthuli Ncube has issued a stern warning to government ministries over unchecked procurement practices, describing over-contracting as a "bleeding wound" on the Treasury that threatens Zimbabwe's fragile fiscal discipline.
"Over-contracting is the biggest challenge for us as a nation," Ncube said. "Ministries sign contracts on their own, and we only find out later as the Treasury."
The minister said some ministries were bypassing Treasury approval when entering into major contracts, fuelling ballooning liabilities and straining the national budget. This, he warned, was causing payment delays to contractors, eroding trust with the private sector, and stalling critical development projects.
"No government ministry can sign a major contract without Treasury's consent," he stressed, adding that tighter controls, mandatory approvals, and real-time procurement monitoring would be enforced.
Economist Eddie Cross said Treasury was preparing to issue a directive stopping ministries from entering contracts without written approval, though legacy obligations would take time to clear. Professor Gift Mugano said the practice violated the Public Finance Management Act and created room for corruption, urging penalties and greater use of e-procurement systems.
Ncube said the reforms were aimed at safeguarding public resources, restoring fiscal discipline, and ensuring projects are implemented smoothly. "This is not about bureaucracy, but about accountability," he said.
"Over-contracting is the biggest challenge for us as a nation," Ncube said. "Ministries sign contracts on their own, and we only find out later as the Treasury."
The minister said some ministries were bypassing Treasury approval when entering into major contracts, fuelling ballooning liabilities and straining the national budget. This, he warned, was causing payment delays to contractors, eroding trust with the private sector, and stalling critical development projects.
"No government ministry can sign a major contract without Treasury's consent," he stressed, adding that tighter controls, mandatory approvals, and real-time procurement monitoring would be enforced.
Economist Eddie Cross said Treasury was preparing to issue a directive stopping ministries from entering contracts without written approval, though legacy obligations would take time to clear. Professor Gift Mugano said the practice violated the Public Finance Management Act and created room for corruption, urging penalties and greater use of e-procurement systems.
Ncube said the reforms were aimed at safeguarding public resources, restoring fiscal discipline, and ensuring projects are implemented smoothly. "This is not about bureaucracy, but about accountability," he said.
Source - Business Times
