Harare — GOVERNMENT has increased the threshold for parastatals and Government departments' procurement of goods and services without going through the formal tender process to $500 trillion or US$50 000, up from $2 million.

According to a statutory instrument contained in a Government Gazette published last Friday, Vice President Cde Joice Mujuru announced the increase after consultation with the Minister of Finance, Cde Samuel Mumbengegwi.

Under the new regulations, tenders above those figures still have to go through the State Procurement Board.

Informal tenders still have to be floated if the goods or services cost between $100 trillion and $500 trillion, or between US$10 000 and US$50 000.

Informal tenders refer to those tenders which parastatals and Government departments will have to float in a Zimbabwean newspaper before evaluating and concluding them.

This means parastatals and Government departments can evaluate and conclude tenders whose values are between $100 trillion and $500 trillion or their stipulated foreign currency equivalent without going to the SPB. For goods or services under $100 trillion or US$10 000, parastatals or Government departments just have to seek quotations from at least three companies before evaluating and concluding without referring to the SPB.

The review has been necessitated by the constantly escalating costs of goods and services.