The Government of Malawi established the Government Contracts Unit (GCU) in the Office of the President and Cabinet (OPC) to review, consider, vet, negotiate and pass contractual proposals before they are concluded on behalf of the Malawi Government
The GCU was established in July 2012 in order to close gaps existing in the development, implementation, management and monitoring of government contracts, concessions and development agreements by various Ministries, Departments and Agencies (MDAs). This was in response to the concerns from the public expressed through various communication channels on how government contracts, concessions, projects and programmes are awarded, negotiated, and implemented by the MDAs. Issues such as inadequate or lack of scrutiny in procurement of contracts, unfavourable provisions and conditions in contracts, concession and development agreements, and lack of implementation-monitoring systems has made the Government to lose its scarce financial resource and fail to maximize value on contracts, concessions and development agreements resulting in underperformance, cost overruns and claim
GCU is therefore providing checks and balances by ensuring that government policies, laws, rules, guidelines, procedures and standards are dutifully followed in the development, negotiation, implementation, management and monitoring of government contracts, concession and development agreements. This ensures that Government is only committed to financing and implementing contracts and other agreements which are being thoroughly scrutinized, vetted, certified as reasonable and advantageous and that there is value for money
Accordingly, all the MDAs are required to engage GCU whenever they intend to enter into contracts, concessions, development agreements and any other major agreements with other parties local or foreign. GCU shall render support in the development and negotiation of contracts, concession and development agreements by reviewing, assessing, vetting and advising before being signed. GCU will also monitor and evaluate implementation of contracts, concessions and development agreements by conducting technical audits in collaboration with procuring and implementing entities
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