Editorials

EDITORIAL: Plugging loopholes in procurement way to go

cash

Cracking down on procurement scandals will go a long way in instilling confidence in the system. FILE PHOTO | NMG

With the taxman ramping up efforts to increase the revenue collection targets, all strategies rolled out by the State to plug tax avoidance loopholes in its procurement systems will undoubtedly come in handy.

We therefore welcome reports that the government is planning to roll out an e-procurement system that will link the Kenya Revenue Authority and the Registrar of Companies so as to stop State agency suppliers from avoiding paying tax or using unregistered firms.

It goes without saying that State procurement tenders have traditionally been an open trough where the corrupt and their ilk dip their fingers to reap where they have not sown.

The Kenyan taxpayer has lost billions of shillings to these cartels that end up denying the country crucial revenue that could have been spent on development projects for the betterment of the citizens. According to the new strategy, the two State agencies will be connected to the Integrated Financial Management Information System (IFMIS) in order to improve transparency of the transactions involved and avoid errors. However, we must caution that every effort must be made to ensure that all the weaknesses are addressed. For example, past mega scandals have revealed that unscrupulous individuals were able to make unauthorised changes to the IFMIS entries, which ultimately led to the theft of public funds.

To ensure that the rollout is successful as intended, then these challenges must be addressed without fail. The corruption menace has become endemic in the country despite efforts aimed at eradicating it. A positive development in the new system is that it also aims to ensure that youth, women and people with disabilities get opportunities in government tendering and are promptly paid. This is a positive step that should be welcomed by all.

The matter of pending bills has also been blamed for stagnating the growth of many firms with some being forced to shut down due to the long delays.

It is really unfair to bog down payment despite services being rendered.

Cracking down on procurement scandals will go a long way in instilling confidence in the system.

Time has come to ensure that those who set out to shortchange the taxpayers are punished.