Mudavadi: Sh1.6B Is Lost To Corruption Daily

Supply chain and procurement managers in public offices must make it scary to engage in malpractices to deter the vice, Prime CS Musalia Mudavadi has said.

Mudavadi on Thursday said Kenya loses about Sh608 billion, or 7.8 per cent of the GDP, annually to corruption, according to the Ethics and Anti-Corruption Commission.

Globally, about USD2.6 trillion (about Sh338 trillion) is lost to corruption, which is about five per cent of the world’s GDP.

“Kenya is ranked 126 out of 180 countries in the 2023 Transparency International Global Corruption Index,” he said.

The PCS said it is sad that perpetrators of corruption find it easier to engage in illegalities with government-funded projects than donor-funded ones.

“In other words, we respect and fear foreigners more than we respect our own people,” Mudavadi said.

He spoke at the heads of the Supply Chain and procurement forum 2024 in Mombasa on Thursday.

“You must create fear in the discharge of irregularities in our procurement processes,” he told the 320 heads of supply chain and procurement who attended the forum.

He called on the managers to avoid being influenced by political forces in the discharge of their duties, saying if something goes wrong, they are the ones who will be sacrificed.

In the discharge of their duties, the managers should distinguish between personal, sectarian, political and national interests, the PCS said.

“Protect your profession from political influence that has led to awards being made based on political considerations rather than on merit.

“You must fight back ‘the call from above’ being used to influence your decisions and remain steadfast in your compliance to procurement regulations and procedures,” Mudavadi said.

Kenya Institute of Supplies Management chair John Karani said they are working with the Judiciary to ensure their members are not victimized when things go wrong.

He said KISM has the capacity to investigate professional conduct and work with modalities to avoid court action where necessary.

Karani said there is a need to develop and improve tools that guard against corruption.

“We need to have standards across the board so that people do not buy the same pen at different prices. If a pen costs Sh100, it should range within that Sh100 and not have somewhere that the pen costs Sh1,000,” Karani said.

He however acknowledged that the corruption monster has been a thorn in the flesh for the supply chain and procurement departments.

Karani said digitisation of the processes will go a long way to minimizing or probably eradicating corruption.

“The Electronic Government Procurement System is a sure way of ensuring no money is lost in the process of procuring equipment,” he said.