A Path to Accountability and Economic Justice through Procurement Audits

by Yvonne Kamphantengo

In the current economic climate, Malawi cannot afford procurement inefficiencies or corruption. Procurement Audits are a cornerstone of fiscal responsibility, economic justice, and Public confidence. They ensure that every public contract whether for school desks, medicines, or roads serves the people, not private interests.

As Malawi navigates a difficult economic period characterized by inflation, high debt levels, and constrained public resources, there is an urgent need for smarter, more accountable management of public funds. In this context, Procurement Audits are not just a bureaucratic formality; they are an essential tool for ensuring Value for money, fighting Corruption, and restoring Public trust in government and Private institutions.

The Centrality of Procurement in Malawi’s Public Spending

In Malawi, public procurement accounts for over 60% of the national budget, covering critical sectors like health, education, infrastructure, and agriculture. With such a high proportion of taxpayer money spent through procurement, any leakage, inefficiency, or malpractice has a direct and devastating impact on service delivery and economic development.

Yet Malawi has faced challenges ranging from overpricing and collusion to contract underperformance, ghost suppliers, and lack of competition. In such an environment, procurement audits offer a powerful corrective mechanism.

What Are Procurement Audits?

Procurement audits are systematic reviews of the procurement process to assess whether:

• Procedures were followed in accordance with the law
• Contracts were awarded transparently and fairly
• Public funds were used efficiently and effectively
• The outcomes delivered matched the value paid

They help identify gaps, weaknesses, and irregularities be they procedural, financial, or ethical and recommend improvements or sanctions where needed

Why Procurement Audits Matter Now More Than Ever for Malawi

1. Safeguarding Scarce Resources

Malawi is facing fiscal pressure, with limited donor support and high debt servicing costs. Every kwacha must count. Procurement audits help ensure that:

• Funds are not lost to overpricing or substandard delivery
• Projects deliver real impact
• Cost-saving opportunities are identified and institutionalized

2. Fighting Corruption and Restoring Public Trust

Corruption in procurement erodes trust in government. When audits reveal and help address malpractices, they:

• Deter corrupt behavior
• Promote accountability among public officials and suppliers
• Send a clear signal that misuse of funds will not be tolerated

3. Promoting Value for Money

Audits do not just detect wrongdoing; they also measure performance. This helps ministries, departments, and agencies:

• Improve planning and contract management
• Ensure that goods and services are delivered on time and to the expected quality
• Avoid wasteful spending and duplication

4. Boosting Donor Confidence and Investment

Development partners and investors are closely watching how Malawi manages its finances. Robust procurement audits:

• Demonstrate fiscal discipline
• Reassure donors that aid and loans are used properly
• Open doors to increased financial support and technical cooperation

5. Strengthening Institutional Capacity

Audit findings can be used to build stronger procurement systems by:

• Training procurement officers
• Revising internal controls and procedures
• Introducing automation and digital tools for better oversight

The Role of the New Government and Oversight Institutions

The new administration must prioritize and empower Procurement Audit functions both within the National Audit Office (NAO) and through Internal Audit Units across ministries and state-owned enterprises.

Key actions should include:

• Mandatory Procurement Audits for all Public entities
• Deliberate policies to promote Procurement Audits
• Ensuring timely publication and follow-up of audit reports
• Private and Public Partnerships to enable Specialized Procurement Auditors conduct Audits in Public Institutions.
• Deliberate awareness on differences between Financial Audits and  Procurement Audits