10% in Public Procurement

RJM

I think the issue of who should receive commission is very clear - it has to be the public entity. In private sector they are very serious about this - any negotiation for price reduction with the supplier is intended to benefit the company and not the staff who negotiated. To ensure that staff negotiate vigorously for the company they are in turn paid bonuses.

Should we provide bonus to public officials who declare commissions provided to them?

Mohammed Suleiman

The issue of sexual corruption is a complicated one. I do not know to what extent it is practiced in procurement - to me procurement is more on money transactions? What are the views of other forum members.

RSM

How if some declare in front of your office that he/she give you that 10% as a promoting factor and not else.

Now days there is another issue apart from 10% that is "sexual %" given to Civil servant in order to influence him.......have you ever notice this? is that a 10% or 50%, i think it is above 100%? how can we treat people who take this kind of corruption? being in your mind that it is difficult for PCCB to identify this kind of corruption.

RSM + Mwasyoge,

As we discuss this, I think it is prudent we merge this with something closer related which was posted in the forum. Reproduced below for easy follow up.

Business commission, legal or illegal

Bilabaye Paul on Fri Jul 01, 2011 8:51 am
In business community giving a commision is legalised and is part and parcel of business practice. This also is accepted by Income tax act as allowable deduction as long as it has been used for business promotion. But on the other hand receivers particulary public servant who are targeted by business community in the course of promoting their business are prohibited from receiving commission offered. When received it ends up being termed as corruption which is prohibited.To me this sounds as a professional dilemma, how do we get out of this dilemma?

[b]Re: Business commission, legal or illegal

RJM on Fri Jul 01, 2011 6:34 pm

Paul,

Quick questions before we go into details. Who should receive the commision; the public entity or public servant? or rather - Who should the business community give the comission? Who is doing business with the business community; public entity or public servant?

RSM, I hope you can elaborate more.



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Mwasyoge,

10% can not be acceptable. If you are public employee, and you are given 10% as thanks is that your money? Should it not go to the person who bought the goods?

I heard of one story here in Tanzania during President Nyerere time where the CEO of one organisation ordered a fleet of vehicles from abroad, and as a token of thanks he was given one free vehicle. He was ordered to surrennder it to the organisation - logic being if there is a discount or any reward it should be given to the buying organisations and not to individuals working with the organisation.

Dear Forum Members

I am a new member in the forum and there is one issue that pesters my mind and that is 10%, is this a standard a practice, if a contractor/ consultant gives you 10% as a token of thanks, is this acceptable

One australian professional once commented that it is cheap tp sign a contract in Tanzania and he was reffering to 10%, please assist