Ensuring transparency in public procurement deals
Wednesday, 10 February 2010
THE issues relating to public procurement have been under the scanner of major donors, media and experts since the government initiated moves to amend certain provisions of the public procurement act (PPA). Despite opposition from multilateral capital donors, the government got a few of the controversial amendments to the PPA approved by the parliament. Some local critics, however, had held the view that the amendments were basically aimed at "distributing" favours among the ruling party workers and supporter's at the local levels. On their part, some key development partners had then communicated their opposition to the amendments, maintaining that the changes would weaken an earlier law that was otherwise aimed at ensuring transparency and accountability in public procurement.
The government, for quite sometime, stood firm on its PPA amendment stance. But it later appreciated the need for taking a fresh view of the donors' argument. Some such donors had then reportedly conveyed their decision to suspend disbursement of fresh funds to their aided projects unless the government signed revised deals agreeing to follow their procurement guidelines. The initial opposition of the government to the donors' point of view on public procurement was partly because of the reason for encouraging new local businesses in procurement-related activities. There may be some pluses of this stance. But the admission by the planning minister the other day about corruption and other irregularities eating up often 40 to 50 per cent of the fund spent on procurement in public sector projects would give here a contradictory signal. Speaking late last week at the first meeting of the 27-member public-private stakeholders committee (PPSC) formed last month with a view to ensuring transparency and accountability in public procurement, the planning minister made this observation.
The decision of the government to constitute a watchdog body involving people from both private and public sectors is otherwise welcome. However, there are some grounds for raising questions over the inclusion of the representatives of a few organisations in the committee. Furthermore, it also remains to be seen whether the newly constituted PPSC would be able to monitor any irregularities in spending of a substantial amount of funds on hundreds of projects under the annual development programme (ADP). However, the job of the PPSC could be made relatively easy, in terms of availability of technical expertise, if two relevant organisations -- Central Procurement Technical Unit (CPTU) and Implementation, Evaluation and Monitoring Division (IMED) -- can effectively carry out their duties and responsibilities.
Meanwhile, it would be befitting to note here the crux of the problem for ensuring effective and efficient uses of resources meant for public procurement of goods and services for different development projects, as has rightly been pointed by out none other than the planning minister. That relates to corruption involving public funds. The government will need to demonstrate its seriousness about addressing this problem while combating the menace of corruption. If the implementing agencies strictly follow the provisions of the PPA in letter and spirit, notwithstanding some recent amendments, and if also the "vested interests" do not meddle, unduly, in the related process, the extent of corruption in the spending of development funds can certainly come down to a tolerable level.
The government, for quite sometime, stood firm on its PPA amendment stance. But it later appreciated the need for taking a fresh view of the donors' argument. Some such donors had then reportedly conveyed their decision to suspend disbursement of fresh funds to their aided projects unless the government signed revised deals agreeing to follow their procurement guidelines. The initial opposition of the government to the donors' point of view on public procurement was partly because of the reason for encouraging new local businesses in procurement-related activities. There may be some pluses of this stance. But the admission by the planning minister the other day about corruption and other irregularities eating up often 40 to 50 per cent of the fund spent on procurement in public sector projects would give here a contradictory signal. Speaking late last week at the first meeting of the 27-member public-private stakeholders committee (PPSC) formed last month with a view to ensuring transparency and accountability in public procurement, the planning minister made this observation.
The decision of the government to constitute a watchdog body involving people from both private and public sectors is otherwise welcome. However, there are some grounds for raising questions over the inclusion of the representatives of a few organisations in the committee. Furthermore, it also remains to be seen whether the newly constituted PPSC would be able to monitor any irregularities in spending of a substantial amount of funds on hundreds of projects under the annual development programme (ADP). However, the job of the PPSC could be made relatively easy, in terms of availability of technical expertise, if two relevant organisations -- Central Procurement Technical Unit (CPTU) and Implementation, Evaluation and Monitoring Division (IMED) -- can effectively carry out their duties and responsibilities.
Meanwhile, it would be befitting to note here the crux of the problem for ensuring effective and efficient uses of resources meant for public procurement of goods and services for different development projects, as has rightly been pointed by out none other than the planning minister. That relates to corruption involving public funds. The government will need to demonstrate its seriousness about addressing this problem while combating the menace of corruption. If the implementing agencies strictly follow the provisions of the PPA in letter and spirit, notwithstanding some recent amendments, and if also the "vested interests" do not meddle, unduly, in the related process, the extent of corruption in the spending of development funds can certainly come down to a tolerable level.