Promoting transparency in public procurement processes (MW0012)

1. What problem does the commitment aim to address?

Malawi continues to face systemic corruption and inefficiencies in public procurement, a sector that uses significant public resources. Procurement processes are often opaque, fragmented and vulnerable to political interference and insider dealing. Numerous public procurement entities operate with minimal coordination, allowing businesses with poor performance records or conflicts of interest to secure repeat contracts across government institutions. Information related to procurement at all stages of the procurement cycle is not proactively disclosed, published or integrated across key platforms.

Furthermore, the underutilization of the PPDA portal, limited access to real-time procurement data and the absence of clear accountability mechanisms has undermined oversight. Weak enforcement of conflict-of-interest disclosures, irregularities in the evaluation of bids, lack of real-time monitoring mechanisms and limited enforcement of existing legislation to align with open contracting best practices, have all fueled unfairness and corruption.

2. What are the causes of the problem?

The root causes of this problem include:
(a) Maladministration as a root source of corruption: There is a lack of consequences or sanctions for non-compliance. In general, duty bearers refrain from performing their lawful duties in terms of supervision and disciplinary roles of controlling officers on their subordinates; non-disclosure of conflict of interest in procurement processes; limited exercise of their mandate(s) compromising oversight and enforcement roles by parliamentary committees; and politicization of issues. It has also been observed over time that newly elected regimes in their first years in government tend to recruit particular groups of people and individuals in preparation for them to facilitate corrupt dealings or maladministration.
(b) Frequent or normalized use of exclusionary procurement methods, especially restricted tender and single source, which provide opportunities for various procurement malfeasance and in recent times have proved to be the most effective ways through which procurement monopolies have been created and have also catalyzed the phenomenon of state capture by business elements.
(c) Limited coordination among MDAs’ Internal Procurement and Disposal of Assets Committees to track the record of suppliers and avoid contracting blacklisted ones.
(d) Bureaucracy within the procurement process by having multiple vetting entities delays the timely completion of the procurement process. This also creates a risk for corruption.
(e) Absence of a law to protect whistleblowers, or people who report corruption, renders the reporting of corrupt and fraudulent acts risky to anyone that has valuable information on corrupt practices.
(f) Omission of the private sector under the lifestyle audit in the Corrupt Practices Act, 2014.

Commitment Description

1. What has been done so far to solve the problem?

The Government has taken initial steps to enhance procurement transparency, including incorporating beneficial ownership disclosures into SBDs and including an OCDS portal in the MANEPS. PPDA has also trained pilot institutions on how they can use the MANEPS to promote oversight and enforcement. Additionally, a Special Law Commission has drafted a Whistleblowers Protection Bill.

2. What solution are you proposing?

The Government commits to advancing open contracting reforms that standardize, digitize and publish procurement data across the entire contract lifecycle. This commitment will:
(a) Fully adopt the OCDS for all major procurement processes.
(b) Ensure full utilization of the MANEPS to ensure timely publication of procurement plans, bidding opportunities, awarded contracts and implementation progress.
(c) Strengthen institutional capacity and coordination between the PPDA, MRA, ACB, FIA and ODPOD.
(d) Empower citizens and civil society to access procurement information and follow procurement processes through the OCDS portal, feedback channels, and awareness campaigns.
(e) Enact the Whistleblower Act to protect those who report corruption or fraud, to enhance reporting and oversight.
(f) Review the Corrupt Practices Act, 2014, to include the private sector in the lifestyle audit.
(g) Adopt the lifestyle audit manual that covers both the public and private sectors.
(h) Build synergies with asset declaration and recovery laws.

These reforms aim to open the entire procurement value chain, ensuring that public procurement is fair, transparent, efficient, and accessible to all.

3. What results do we want to achieve by implementing this commitment?
By implementing these reforms, Malawi will achieve:
(a) Institutionalized open contracting practices across MDAs.
(b) Improved reliability and completeness of public procurement information.
(c) Strengthened real-time monitoring of public contracts.
(d) Enhanced citizen and CSO participation in procurement oversight.
(e) Reduced procurement-related corruption and inefficiencies.
(f) Increased trust in public institutions through visible improvements in how contracts are awarded and managed.

These reforms will improve value for money, public service delivery, promote efficient utilization of resources, increase foreign investments, and reduce incidents of corruption, thereby enhancing public trust and institutional credibility.

Commitment Analysis

1. How is this commitment relevant to MW2063?
This commitment contributes to Enabler 2: Effective Governance Systems and Institutions under MW2063, which emphasizes accountability, transparency and public sector performance. MW2063 recognizes that corruption and weak procurement processes divert resources from national priorities. By promoting open contracting, Malawi strengthens its ability to fight corruption, improve service delivery and ensure public funds are used responsibly and visibly. These reforms also contribute to the long-term goal of positioning Malawi among the top 20 countries globally on corruption and business environment indicators.

2. How will the commitment promote transparency?
The commitment will promote transparency by requiring proactive disclosure and systematic publication of procurement information through the MANEPS, including procurement plans, bids, evaluations, awards, and contract performance. Adoption of the OCDS will ensure that procurement information is open and machine-readable, facilitating real-time access and analysis by citizens, civil society, and oversight institutions.

3. How will the commitment help foster accountability?
Accountability will be fostered through clear rules for publishing procurement data, monitoring tools, and enforcement mechanisms that penalize non-compliance. Regular joint monitoring sessions between oversight bodies (e.g., ACB, PPDA, MRA) and civil society will track implementation progress and identify areas for corrective action.

4. How will the commitment improve citizen participation in defining, implementing, and monitoring solutions?
The commitment includes provisions to engage civil society and citizens in procurement monitoring. Through the OCDS portal, feedback channels, and awareness campaigns, citizens will be empowered to follow procurement processes, report irregularities, and participate in procurement activities. The government will also collaborate with CSOs to co-design monitoring tools and support community engagement in tracking contract performance, especially at the local level.

Commitment Planning

Milestones | Expected Outputs | Expected Completion Data

Enhance the regulatory framework to regulate open contracting | Corrupt Practices Act amended to incorporate the private sector under the lifestyle audit; Whistleblowers Act enacted; Synergies among asset declaration, lifestyle audit and recovery mechanisms strengthened | December 2026; December 2026; December 2028

Implement lifestyle audits in the public and private sectors | Lifestyle audits in the public and private sectors enforced to complement beneficial ownership disclosures and detect illicit financial gains | December 2028

Strengthen investment and contractual oversight | Institutional capacity and coordination of PPDA, MRA, ACB, FIA, and ODPOD improved | July 2027