DUE PROCESS AND PUBLIC PROCUREMENT The Due Process policy is a novel anti-corruption mechanism of the Federal Government. It is aimed at providing transparency and accountability in procurement in the Public Service as well as in government budgetary and financial operations. It is to ensure fiscal transparency, strict compliance with procedures, effectiveness and efficiency in the costing of projects and services, privatization and execution of budget expenditure items, and to certify for public funding, only those projects and contracts that pass proper project implementation and execution scrutiny. It implies that any project or contract/ service to be funded by the government must adhere strictly to internationally acceptable bidding system of openness, competition, cost accuracy and proper procedure. Within the context of the Public Sector, Due Process manifests primarily through ensuring that Government business is carried out on the basis of relevant and prescribed laws, rules, regulations and practices. A common error in our nation is our strong tendency to instinctively associate the concept of due process with only procurement and contract awards when, in truth, it applies to all other aspects of Government business, including negotiation, recruitment, promotion etc. In other words, in whatever aspect of Government business we are involved, we must follow the rules as laid down by the constituted authorities. The main objectives of the Due Process are as follows: i. To harmonize and update all Government policies and practices on Public procurement; ii. To ensure that project conceptualization and packaging match the defined priorities and targets as contained in the annual financial appropriations; iii. To strictly enforce due process principles of transparency, competition and efficiency and value for money in the procurement of public goods, works and services; iv. To ensure efficient and integrity-based monitoring of the implementation of Federal Government projects in line with due process principles; v. To prevent extra-budgetary spending in Ministries, Departments and Agencies by ensuring that only projects with due appropriation by the Legislature are certified and thus funded for execution; vi. To prevent contract inflation by ensuring cost reasonableness, accuracy, comparability of all Public contracts with national, regional and global costs; and vii. To guarantee elimination of waste. Bureau of Public Procurement and the Public Procurement Act A Country Procurement Assessment Report conducted in 1999-2000 revealed that out of every N1 spent by Government, 60k was lost to underhand practices. In order to address the identified short-comings, therefore, the Bureau for Monitoring and Price Intelligence Unit (BMPIU) was set up in 2001. Its operations were based on Treasury Circulars. Subsequently, steps were initiated to institutionalize its operations. These steps eventually culminated into the enactment into law of the Public Procurement Act. The essential objective of the Public Procurement Act is the Establishment of National Council on Public Procurement and the Bureau of Public Procurement as the regulatory authorities responsible for the monitoring and oversight of public procurement, harmonizing the existing Government policies and practices by regulating, setting standards and developing the legal framework and professional capacity for public procurement in Nigeria; and for other related Matters. The Act applies to the Federal Government of Nigeria and all its procurement entities as well all entities outside the foregoing which derive at least 35% of funds appropriated for any type of procurement described in this Act from the Federation Share of Consolidated Revenue Fund. Under the Public Procurement Act, any procuring agency is required to publicly publish its intention to engage the services of contractors who must all go through a pre-qualification process (also called technical bids) and only companies that successfully scale through are then allowed to submit financial bids. Both the technical and financial bids are conducted openly in the presence of all bidders to ensure transparency. The contract is awarded to the tenderer whose offer is substantially responsive to the tender document and has been determined to be the Lowest Evaluated Responsive Tender provided that the Tenderer is determined to be qualified to perform the contract satisfactorily. Successful tenderers are required to furnish Performance Security (Bond) in the amount specified from an approved financial institution and payment of mobilization is by law pegged at 15% of contract sum. I respectfully submit that had the Public Procurement Act been complied with by the Imo State Government, it is doubtful if JPros and similar companies executing projects for the Imo State Government would have scaled through pre-qualification stage and even then, would have been required to provide performance bond before payment of 15% mobilization. Consequently, JPros and similar contractors would not have been able to abscond with Imo tax payers money without executing their contract. They would not have been paid 100% of contract sum before even mobilizing to site and any money paid over and above the 15% mobilization would have been by way of earned certificates issued by the supervising engineers. We must reclaim Imo.
Posted on: Mon, 26 Aug 2013 20:54:35 +0000
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