Professionalizing the procurement profession: The Role of KISM and PPOA

Professionalizing the procurement profession: The Role of KISM and PPOA Chris Oanda - National Chairman, KISM Robert Hunja -Director General,PPOA Presentation by:

Background • Historical background • Profession hitherto not regarded as a profession; not noticed as a profession • A clerical activity, no glamour, no strategy • No procurement legal framework • Rampant corruption; not exclusively by procurement staff

Background • Procurement training largely done by Government Training Institutes and other training institutions • There was no standardized curriculum • A problem both in private and public sectors • For a long time, procurement staff underwent international certification exams

Background… • In central government, there were procurement cadres since 1960s • But stayed low profile well into the 1990s • Anybody could be assigned procurement roles • But in 2003, all procurement officers were suspended for corruption allegations • Procurement activities got even worse • Led to realization of the need to professionalize the procurement function • Creating quest for procurement legislation

Procurement Reforms • Previously used Procurement Regulations of 2001 • In the year 2005, the Government of Kenya enacted the Public Procurement and Disposal Act 2005 • The Public Procurement and Disposal Regulations came into effect in December 2006 • The effective date of implementation was January 2007.

PPDA Act 2005 & Regulations 2006 • The Act and Regulations addressed the basic issue of how to do procurement • Advisory Board- to provide professional direction to public procurement development • Review Board- to provide fair rulings on appeals to procurement proceedings • Regulations 5(1) does not propose a procurement association to nominate members to the Advisory Board • Currently no procurement association is represented in the Review Board

PPDA Act 2005 & Regulations 2006 • Section 26(8) of the Act defines a procurement professional • And makes it mandatory for the procurement professional to be “..a member of a recognized institute of purchasing and supply”; • Requires PPOA to facilitate establishment of examination body; • And “ensure support for their professional association” (Section 8(10)); • The Procurement Agent becomes a procurement professional person or firm; • With qualifications of an internal procurement professional (Article 28).

Among the functions of PPOA … • “To develop, promote and support training and professional development of persons involved in procurement” [Article 9(C)(iii)] • “To ensure that procuring entities engage procurement professionals in their procurement units” • Resulting in some positive developments …

Process Versus People… • The Public Procurement Act is strong on process but weak on the people issues • There was need to promote procurement professionals, register them and have a disciplinary mechanism • That way, an ethical code is enforced • In October 2007, the Government of Kenya passed the Supplies Practitioners Management Act 2007 • Recognizes the Kenya Institute of Supplies Management as the professional association

The Supplies Practitioners Management Act 2007: • KISM is established as a body corporate through The SPMA 2007: • Date of assent: 22nd October 2007 • Date of Commencement: 30 October 2007 • Date of Effectiveness: 30 October 2008 • This Act recognizes the public procurement officer as defined in Section 26 of the PPDA Act • Applies to both public and private sectors

The SPMA 2007 • Provides for various bodies: • The Institute Council (Article 4): • Composed of procurement and supply chain professionals • The PPOA Director General is a member of the Council • The term of office is three years

The SPMA 2007 • Examination Board (Article12): • With a function to carry out Supplies Practitioners Qualifying Examinations • This provides PPOA with the examination function as required in the PPDA Act • Ensures future procurement staff undergo qualifying exam • Enhances professionalism and penalizes errant members • With representation from other educational institutions

The Supplies Practitioners Act …. Registration Committee (Article 15): • Composed of a chairperson, 2 procurement professionals, and representation from other entities. • Functions: • Register procurement professionals as members • Grant Procurement Practicing Licenses • Maintain professional quality assurance • Maintain professional procurement standards • Qualifying for registration: • Person to have undergone procurement studies • Must have passed qualifying procurement examinations • Both Kenyan and foreign procurement professionals

The Supplies Practitioners Act …. Professional discipline: • Disciplinary Committee: • With independent members appointed to the Committee • To receive and investigate complaints against procurement professionals • Order: • Removal of members from the register • To suspend registration of procurement staff • Revoke practicing license • Impose a fine • Hence, hopefully, bringing a semblance of order in the procurement profession in Kenya.

Enforcement … • By October 2008, all procurement and supply chain management professionals in Kenya to have been registered • Thereafter those not registered will not practice as procurement professionals • Employment of unregistered procurement staff will be an offence • Offering unrecognized procurement training will also be an offence • Registrations picking up, practicing licenses already being issued

Progress so far … • Insistence on procurement professionals currently underway under PPOA and KISM collaboration • For instance to be pre-qualified by PPOA as a Procurement Agent, one should be registered and have Supplies Practitioners License from KISM • Membership Registration with KISM increasing • Mandatory requirement for procurement staff to belong to the professional association • PPOA providing some resources for implementing the Practitioners Act • PPOA facilitating establishment of examination body under the Supplies Practitioners Act

Going forward … • Transiting KISM to its new role: Strategic Plan with support from PPOA • Developing regulations to operationalize the Act in collaboration with PPOA • Setting rules for the KISM Council • Starting curriculum development for the Procurement Qualifying Examinations • Developing rules for Members Registration

Going forward … • Developing Code of Ethics • Setting rules for the Disciplinary Committee • Acquire infrastructure to support the new role • Appropriate staffing to meet new challenges • Sensitization of the public of the new requirements • Sensitizing employers, CEOs and other professionals • Create regional and international professional networks • Building professional association as an independent pillar in procurement

Going forward … • Strengthening the cadre and scheme of service for public officials

Professionalizing the procurement profession: The Role of KISM and PPOA