House approves Procurement Bill 2002 By Chamanlall Naipaul
Guyana Chronicle
May 30, 2002

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THE Procurement Bill 2002 was approved yesterday in the National Assembly with the main opposition party the People’s National Congress/Reform (PNC/R) once again being absent.

The Bill sought to institute legislation to provide the regulation of the procurement of goods, services and the execution of works, promote competition among suppliers and contractors and promote fairness and transparency in the procurement process.

Introducing the Bill for the Government was Minister of Finance Saisnarine Kowlessar, who emphasised the relevance and importance of the legislation in ensuring transparency and accountability.

The Minister said the Bill is in accordance with modern trends and international standards, which emphasise openness and fairness in the procurement process. It is patterned after similar legislation in the Commonwealth countries.

The Bill, which comprises four sections and 69 clauses dealing with the structure, administration, functioning and penalties for breaching the regulations, was described by the Minister as “a comprehensive document.” He also pointed out that under the proposals of the Bill, the private sector will, for the first time, have two representatives on the National Tender Board, which is in accordance with recommendations of the Auditor General. Under the previous administration, the Auditor General had no involvement in procurement procedures, Kowlessar charged.

Kowlessar said it was recognised that the procurement process became “a contentious and hotly debated issue, with the Government on the receiving end”. He charged that prior to 1992, there was “no history of proper procurement procedures being followed”. He noted that in that period there were hardly any advertisements in the newspapers in relation to the procurement process. There was mostly single sourcing.

“Today, the press is literally inundated with advertisements,” he observed.

However, after 1992 advertisements became a regular feature in the open and transparent process introduced by the present Government to ensure greater accountability and cost efficiency.

Citing an example to support his contention that the pre-1992 era was characterised by extravagance, Kowlessar recalled that under the Primary Education Improvement Programme (PEIP), which was negotiated by the previous Government, the cost of building one school ranged between US$2-3M. But under the present Government because of an open bidding process and redesigning of the programme, that cost was reduced to about 50 percent, ranging from $60 to $80M, he disclosed.

Earlier the lone Working People’s Alliance/Guyana Action Party (WPA/GAP) member, Ms. Shirley Melville, charged that while there is much talk about inclusiveness, this should be put into action. She expressed reservations about the composition of the Regional Tender Board. Under the terms of the Bill, three members are appointed by the National Tender Board while the other member is appointed by the Regional Democratic Council. Ms. Melville argued that since the quorum for Regional Board meetings is three, then its affairs could be dominated by the National Board appointees.

However, Minister of Health Dr. Leslie Ramsammy, speaking in support of the Bill, countered that if the local representatives do not attend the meetings then the Government cannot be blamed for that.

“If the local people choose to be absent, how can you blame this Government?” he rhetorically remarked

Dr. Ramsammy also reminded the House of the infamous power barge in which two Ministers of the then Government were clearly culpable in corrupt transactions surrounding the procurement of the barge, but President Hoyte’s response was that they cannot be “made sacrificial lambs”.

He also noted that the procurement process is under the scrutiny of the Office of the Auditor General and the Bill is responding to recommendations of that Office.

Leader of the Rise Organise And Rebuild (ROAR) party, Ravi Dev, the other opposition member present, whilst supporting in principle the objectives of the Bill, called for greater consultations to allow for a wider consensus in view of the polarisation of the society. He also pointed out that there was some ambiguity as to whether the President or the Minister is responsible for appointing the members of the National Tender Board.

On the issue of the ambiguity, Attorney General Doodnauth Singh supported Dev, which eventually led to an amendment of Clause 16, whereby the Finance Minister proposed that the word ‘President’ should be deleted to read ‘Minister’ instead which was accepted.

On the consensus issue, Kowlessar explained that the process of the procurement legislation was not started recently. Rather it began some four years ago with wide and numerous consultations and several reports being compiled.

The Attorney General pointed out that the legislation provides a mechanism to institutionalise the process of transparency, but it is left upon those who have to administer the process to ensure it is simple and straightforward.

Minister of Transport and Hydraulics, Anthony Xavier, also supporting the Bill, noted criticisms by the media of the procurement process, but remarked that while some were “frivolous and unfounded, some were justified in varying degrees.”

He said the Bill would help to allay fears of those who have a suspicious perception of the tendering process. “It is ample testimony of the commitment to transparency and accountability,” Xavier said.