In March this year, President Peter Mutharika announced that Government has completed procurement of IFMIS. By no means did Minister of Finance Goodall Gondwe’s statement in Parliament yesterday contradict the President’s when he announced that government will will be allocating K5 billion for payment for IFMIS.
The President referred to July (new Financial Year) as the point when the services would begin to be delivered. The Minister of Finance is now indicating that the procurement of the service is going to be paid for from this new budget. The President used the word “procurement” referring to the whole process to the point when you decide the service provider out of the many who would have applied.
Procurement refers to the entire process of identifying vendors, establishing payment terms, tendering, bidding, evaluations, strategic vetting, deciding the service provider, negotiation of contracts and actual purchase of goods or services.
After that, you make payment arrangements for the goods/services to be delivered, which is what the Minister of Finance is now doing via the budget. He will be asking MPs to authorise payment from this buget. Procuring is a process not direct purchase of goods or services.
That is why in a company, we have the procurement committee doing the procurement arrangements and the department of finance doing the purchasing.