Trinidad and Tobago
AS Trinidad and Tobago approaches six months since the full proclamation of the Procurement Act, procurement regulator Beverly Khan acknowledges that while there have been some teething problems, she believes that the benefits will far outweigh the challenges.
Delivering the feature address in a webinar hosted by the Trinidad and Tobago Transparency Institute (TTTI) on Tuesday Khan stated that full proclamation of the Act represents an important milestone in this country’s development, and offers us the best opportunity to establish a fundamentally new and different culture aimed at driving public sector performance rooted in good governance principles.
“These teething problems are a normal part of the development process especially where the change is so significant. However, the benefits to Trinidad and Tobago as the system progresses and then matures, and the potential sustainability of those benefits far outweigh these early challenges,” she said.
Khan said as taxpayers we are all keen to ensure that public funds are effectively utilised by the government in furtherance of the country’s development and the well-being of all citizens.
“The current system is still in its early stages but it is here to stay and at the OPR (Office of the Procurement Regulator) we accept that there are issues to address and efficiencies still to be gained as we gather more experience in implementation,” Khan said.
Khan said the OPR is committed to building effective partnerships.
According to the World Bank governments around the world spend an estimated US$49.5 trillion in public contracts every year, Khan said.
Khan said here in T&T the OPR estimates that last year the value of public contracts in the central government alone accounted for approximately $9 billion which represented four per cent of GDP and 17 per cent of government expenditure.
“We know that this figure will be far higher when public contracts awarded by state enterprise and statutory bodes are taken into account. If indeed the total value were to be in the range of 15 to 22 per cent of GDP then we can easily have $30 to $40 billion being expended in the system on an annual basis,” she said.
“Over the next full year of operations under the Act the OPR will collect the data that will allow for more in-depth analysis of the value and the nature of public contracts and the performance of the system using key indicators aligned with the objects of the Act,” Khan said.
Khan said any analysis of the performance of the procurement system must be juxtaposed against performance on the international corruption perception index.
Last year T&T recorded a score of 42 out of 100 on the Corruption Perception index and ranked 77 out of 180 countries.
“Based on the data used to compile the CPI, the Act has the potential to impact the CPI score in areas of improving access to information on public procurement, reducing bureaucracy, improving efficiency, offering redress, providing protection from victimisation, and ultimately establishing strict penalties for breached of the Act,” she said.
The Public Procurement and Disposal of Property Act was fully proclaimed on April 26 and aims to reform the procurement laws of Trinidad and Tobago in keeping with the principles of good governance, such as accountability, transparency, integrity and value for money.
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Trinidad and Tobago
Procurement Regulator Beverly Khan says she is “fairly satisfied” with the efforts being made to ensure the compliance of contractors and suppliers to the Public Procurement and Disposal of Property Act, which was fully proclaimed back in April.
Responding to questions from Guardian Media on how operations have been going, Khan said barring minor issues affecting the efficiency of operations, she was neither daunted nor distracted by the process so far.
“In hindsight, we should have placed a bit more attention and effort prior to proclamation to the testing of the systems and requirements that were intended to be introduced, but nevertheless, progress is being made and I am confident that over the next three to six months, there will be accelerated action.”
The act was assented to by the President in January 2015 under the then People’s Partnership government.
However, it was not proclaimed into law then.
Upon assuming office, the People’s National Movement made three amendments to the act between 2016 and 2020.
But it was still not proclaimed into law over the course of the administration’s seven-plus years in office.
The act speaks to securing value of taxpayers’ money in terms of expenditure, accountability, integrity and transparency. It also encourages development of local contractors and local content and seeks sustainable development and procurement.
Khan explained that since full proclamation of the act, the Office of Procurement Regulation has observed a concerted effort on the part of contractors and suppliers dealing with public bodies to achieve compliance.
“From establishing the institutional capacity and naming procurement officers, which is a requirement of each public body, to instituting codes of conduct for public officers and suppliers and contractors, as well as internal control frameworks to developing handbooks and guidelines. There is admittedly a lot still to be done, especially by public bodies, but good progress has been evident so far,” Khan said.
Meanwhile, president of the Joint Consultative Council for the Construction Industry, Fazir Khan, also recognised that barring minor teething problems at the Office of Procurement Regulation, it is expected that the registration of contractors and submission of relevant information will add to the integrity of operations.
Speaking with Guardian Media, Khan also added that with the September 30 deadline having already passed, the publication of the information will be significant.
He said this will assist in removing doubts in the minds of citizens when it comes to how state works are conducted and managed “which will really make for tangible transparency and with that, it is where the start of the benefits of procurement reform lies.”
T&T Contractors’ Association president Glenn Mahabirsingh meanwhile added that his membership has also been moving to comply with the legislation.
He remained encouraged by the public engagement regarding the award of contracts.
“Since the procurement has been proclaimed, we have seen a lot more public tenders, a lot more advertising for tenders on the newspapers, so I would say there are a lot more opportunities because there are a lot more circulation with respect to tenders.”
Mahabirsingh is encouraging suppliers and contractors to adhere to the new regulations, which can ultimately stamp out corruption.
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Bahamas
A fledging Bahamian company that won a $1.323m bid to digitise the Post Office’s services has launched legal action over allegations it has been prevented from fulfilling the contract award.
Sunrise Communications, in its formal statement of claim lodged with the Supreme Court on November 23, 2023, is claiming that the Post Office and now-Ministry of Transport and Energy have “failed to perform the requisite steps” under the Public Procurement Act for the contract to be executed and awarded despite it winning two competitive bids.
It is also alleging that the Post Office “has been entertaining bids for the same work to be performed” by other, rival providers despite its tender success, leading it to file a claim for “damages for economic loss”. Sunrise, whose win was included in the $140m worth of public procurement contracts unveiled in mid-October, also says it has received no formal suspension or cancellation notice as required by law.
Ronnie Ferguson, Sunrise Communications’ principal, told Tribune Business the experience has made him question Prime Minister Philip Davis KC’s assertion that the Government is committed to empowering young, qualified and capable Bahamian entrepreneurs through public procurement.
Disclosing that the affair has left the company “severely out of pocket”, he added that the contract – had it been awarded and proceeded as planned – would have digitised the Post Office’s processes to such an extent that it would have been converted “into a courier service” able to compete with established private sector firms, help lower industry prices and drive more revenues for the government agency.
Sunrise Communications’ award, for the “digitisation and creation of the Post Office’s website”, was among the 843 contracts whose details were released by the Ministry of Finance. However, Mr Ferguson said the award has been “stalled” ever since it was made on April 28, 2023, with ministry and Post Office officials only describing it as “under review”.
Jobeth Coleby-Davis, minister of transport and energy, is away at the COP28 climate change conference and could not be reached for comment despite this newspaper messaging her. Ministry officials did not respond to calls and messages, and Mabelene Miller, the current postmistress, was said to be out of office when Tribune Business called on Friday.
“I’m very much disappointed that, as a young Bahamian company, we would have have followed the process laid out under the [first] Public Procurement Act,” he told this newspaper. “We would have done everything required. We entered into a competitive bid. The tender went out twice, and on both occasions Sunrise Communications was selected to perform the work.”
Sunrise Communications, in its statement of claim, asserts that it “had a legitimate expectation that a formal written contract” would be issued after it was selected as the winning bidder – especially as no cancellation notice was issued, as required by the Public Procurement Act.
The contract, according to the Ministry of Finance, was issued via an ‘invitation to tender’ process, and was the only award by the Post Office to be included in the 843-strong list. “As a result of the said legitimate expectation, the claimant complied with the scope of works submitted in the Go Bonfire [procurement] portal and has done the necessary work to supply to the procuring entity the service as outlined in its initial bid.”
The statement of claim adds that, prior to the formal competitive bidding process, Sunrise Communications had “an existing contract” with the Post Office to digitise its processes via a phased approach and bring the services into the 21st century.
However, come October 5, 2022, Sunrise alleged that it was told by the Post Master General that “the overall costs” involved in the digitisation process meant it had to be put out to tender in accordance with the Public Procurement Act.
“Despite having an executed contract with the Bahamas Post Office as it relates to phases two through five of the digitisation project of the Bahamas Post Office, the claimant entered the procurement process with other competitive bidders and was awarded the contract pursuant to the provisions of the Act,” Sunrise’s statement of claim alleged.
“That since having successfully bid for the work to perform the digitisation of the Bahamas Post Office, and the same being published by the Government in accordance with the provisions of the Act, the Bahamas Post Office as the procuring entity has failed to perform the requisite steps as outlined in the Act for the formal contract to be issued in breach of the provisions of the Act.
“Further, the Bahamas Post Office has been entertaining bids for the same work to be performed by other suppliers.” Sunrise is claiming that officials failed to provide the necessary information to advance a Cabinet paper that was necessary for the contract to be awarded.
Sunrise is alleging that the failure to issue the contract, in line with the award, or a formal cancellation or suspension notice while entertaining rival providers, all represent Public Procurement Act breaches.
Mr Ferguson told Tribune Business that the ministry was totally familiar with Sunrise Communications and its capabilities, having developed its website and that of the Department of Housing’s – together with their security and digital links – prior to it being split-off from transport in the last Cabinet reshuffle.
Explaining Sunrise’s involvement with the Post Office’s digitisation, he said it had initially begun work in February 2022 with the first stage configuration of its website including content and security features. Once that was completed, Mr Ferguson said the company submitted a proposal for what it envisaged would be the second through fifth stages of development.
Now we were going to make it more advanced; to turn it into a courier service and digitise all the processes related to the postal side,” he added. “Just like Go Postal and Mr Ship It, we were taking it [the Post Office] to that level, providing that level of service to make them premier couriers.
“We were starting with imports and, in the early part of 2024, if everything went right, we would move into being able to process exports – a more affordable, faster way of doing it. That was the plan.”
Mr Ferguson said the proposal was agreed and signed-off by then-post master general, Jennifer Johnson, but the cost involved exceeded the threshold at which contracts had to be put out to tender – especially since the Ministry of Finance wanted the work done in one go.
The Sunrise chief said the Post Office contract was duly put out to tender, which his company won, only for it to be re-bid after officials “muddied up the whole thing” by suggesting the process was “flawed”. However, when it went out to tender again, Sunrise duly won again.
Mr Ferguson said that, during both tender processes, Sunrise had continued working on the Post Office’s digitisation under the terms of its initial contract. “At no point in time did anyone from the Post Office or ministry write to Sunrise Communications to say: ‘Hey, guys, you need to stop the work’,” he added.
“There’s a process for that. If there’s any reason why you want us to cancel or stop the work, put it in writing if there’s justifiable reasons. That’s not happened. They’ve said nothing to us. At this point, or shortly thereafter when we had won the award, was when we ran into all these stall tactics. It got to the point where the ministry just kept saying it’s under review, it’s under review.
“We stopped working in it after the last meeting with the Post Office in July. I told the team we were not getting any traction. The ministry kept on telling the post master it’s under review. We were awarded the contract, it’s posted online, but they’re not reaching out via e-mail or asking to meet. They’re not engaging at all,” Mr Ferguson added.
“The Prime Minister is saying young Bahamian companies should have the opportunity. Here it is now. They have this US company coming into to try to do the work without even going through the procurement process.” Mr Ferguson declined to identify the company he was speaking about or say anything further on this.
He added that, after the April 28, 2023, confirmation that Sunrise had won the bid, officials said there may be a slight delay in contract execution given that funding would likely be made available in the new Budget year set to take effect from July, but then there was nothing apart from “radio silence’.
“I had to take legal action. It got to the point where I was severely out of pocket,” Mr Ferguson told Tribune Business. “We had a legitimate expectation. I went away with the Post Office to meet the logistical firm who may have been the co-ordinator for us. We’re doing these things together, coming together in chat groups back and forth, and now nothing…
“For me, I’m disappointed that we are trying to advance the country in the 21st century. We are trying to offer services that would be beneficial. We thought this service would add revenue to the country, give the other courier services competition to lower their prices or improve their services in the industry.
“I’m disappointed that we are trying to get our footing, but it’s always the foreign companies that edge out the rest of us or, if you are not in that circle, you are edged out. You have to be in the clique or a foreign entity. It’s not a fair play.”
Sunrise Communications opened in summer 2018, Mr Ferguson said, and now employs around seven to eight persons including technicians and accountants. “I can’t be a cry baby about it and close up shop,” he added of the Post Office affair, confirming that its global communications services platform remains operational and it continues to work on other small projects.
However, Mr Ferguson said its web services arm has been “severely limited” because he is unable to pay the development team until reimbursed for work performed on the Post Office project. “We have other projects lined up, but we are limited in what we can do until we get it sorted out,” he added.
“We’re going for full value of everything. We were prepared to settle for the work done. We gave them a road map for everything that was completed and not completed, and our costs.”
Ashley Williams, the attorney representing Sunrise and Mr Ferguson, said in a statement: “The Prime Minister in my view has stated his government’s policy in relation to the Public Procurement Act, which position is as previously quoted in The Tribune is: ‘It is high time young Bahamians were given equal opportunity to compete for Government contracts’.
“As a young Bahamian myself I concur with the Prime Minister’s policy. However, what we have in this matter is a young Bahamian who successfully went through the process, but [this] has resulted in him and his business being marginalised in relation to the awarded contract.
“This, in my view, is firmly against the policy as I understand it, which was articulated by the Prime Minister. So, in bringing suit, our aim is for justice for the claimant but also to create a framework so that no other young Bahamian will experience what he has as they attempt to climb the economic ladder in this country.”
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Jamaica
Various estimates suggest that Jamaica loses five per cent of gross domestic product (GDP) to corruption annually.
As we understand it, that equates to approximately US$800 million. Shortcomings in health, education, security, et al, which such funds could address are aplenty.
Corruption in high places has plagued Jamaica for a long time and the public perception is that it is getting worse.
Hence the recent lament by Mr Mikael Phillips, Opposition Member of Parliament for Manchester North Western, that people view every politician as a “thief”.
That perception and reality explain tangled procurement procedures which have long triggered the ire of political representatives across party lines. They complain of their efforts to get projects done frustrated too frequently.
Frustration, even anger, with the procurement bureaucracy appears to have reached a new high in recent weeks.
The perfectly logical push for transparency and accountability is backfiring because of inordinate delays, with projects which should be reasonably lasting a year or less taking years in some cases, legislators say.
The process is one thing, but in typically mild-mannered fashion, Health and Wellness Minister Dr Christopher Tufton points a finger at those who execute.
“… I’m not prepared to blame just the process as the cause of the length of time, because I do believe that sometimes there isn’t sufficient capacity at the level of those who are managing … This means that mistakes can be made at times, or clarity is required because of uncertainties and that slows down the process even further,” Dr Tufton said.
Fear of failure may be part of the problem.
“I have had civil servants come to me and are literally super-cautious… because that fear of reputational damage is greater than the need to solve the problem …,” said Dr Tufton.
All of which means efficient governance is undermined.
Says Dr Tufton: “What you have, as I have interpreted it, is a system that allows political cycles, under the constitution, to be five years and a procurement process could take up to two and a half years… To me, it really compromises or undermines the capacity of any Administration in power …”
Ultimately, such inefficiency increases public distrust and disaffection with governance — to such an extent that many people turn away. As we keep saying, it’s not accidental that only 38 per cent of Jamaicans eligible to vote did so in parliamentary elections three years ago.
Note the words of Government MP for Trelawny Northern, Ms Tova Hamilton regarding procurement inefficiencies: “This affects my stewardship as MP because when I indicate to constituents that projects will be undertaken and significant time elapses with no implementation it creates a trust deficit and a whole lot of doubt, owing in large part to their decades-old experiences of false promises…”
What’s to be done? Minister of Finance and the Public Service Dr Nigel Clarke speaks of a redoubling of efforts to train public servants in the use of the Procurement Act. He has also spoken of a review of the Act and a “few amendments” to make the system more efficient.
Whatever is done there needs to be balance, since corruption and the threat thereof are as real as ever.
We dare not throw out the baby with the bath water.
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Guyana
Former Public Works Minister David Patterson yesterday said that the Public Procurement Commission (PPC) has said that it has launched a probe into the contentious $865 million Belle Vue, West Bank Demerara, pump station contract awarded to the Tepui Group.
The APNU+AFC MP told Stabroek News that this response came from the commission’s acting Chief Executive Officer (CEO) Mervyn Chung amid concerns raised over the issuance of the contract.
According to Patterson, the ball is now in the court of the PPC, as accountability must take its course.
“I got a response from the acting (CEO) to my letter which outlined the flaws and he said an immediate investigation is underway”, Patterson told this newspaper.
“A contract for the construction of a Pump Station at Belle Vue, West Bank Demerara, Region #3, was awarded to Tepui Group Inc. on August 14, 2023, the procuring entity was the National Drainage and Irrigation Authority, Ministry of Agriculture, I write seeking an investigation into the award of this contract on the basis that the Contractor was not eligible for the award,” Patterson said in a letter to the PPC recently.
He contended that the contractor, Tepui Group Inc., was not eligible for the award since it does not have the requisite experience stipulated in the bid documents, that is, successful completion of projects similar in nature and size within the last three years. Tepui Group was formed in August 2022.
Like Patterson, Opposition MP Ganesh Mahipaul said that the contracting company did not meet the bidding criteria.
This newspaper also reported that former Auditor General Anand Goolsarran opined that the contract awarded to Tepui Group was flawed, as not only should the company have been disqualified for not meeting the bidding criteria but the National Procurement and Tender Administration Board (NPTAB) erred when it lumped two other contracts to the award.
Goolsarran explained that from his analysis, “there has been a violation of the Procurement Act as regards the award of the contract for the construction of sluice/pump station at Belle View as well as the other two pump stations at Meten-Meer-Zorg and Jimbo.
“As regards the Belle Vue pump station, the system appeared to have been manipulated to facilitate the award of the contract to Tepui Group Inc,” Goolsarran said
According to the bidding documents for the project which were opened on June 27 this year, and seen by this publication the project was for a pump station at Belle Vue on the West Bank of Demerara. The engineer’s estimate was also for that project alone, so NPTAB still has to explain how three awards were handed out from among the same bidders when it was not a project divided into lots.
In response to a public advertisement last May for the construction of the sluice and pump station at Belle Vue, there were 26 bids. The highest bidder was Nabi Construction Inc. with a bid price of $1,181, 867,183 while the lowest bidder was Gavco Construction & Supplies Inc. with a bid price of $740,584,800. Tepui Group’s bid was $865,543,500. Seventeen other bidders had bid prices lower than that of Tepui. The Engineer’s Estimate was $779,198,584.
Following Patterson’s disclosure of the letter to the PPC, the NPTAB issued a statement defending the award, contending that: (I) 13 of the 26 bids were deemed non-responsive and were therefore not considered; (ii) the lowest and second lowest responsive bidders were awarded the contracts for the construction of the pump stations at Meten-Meer-Zorg and Jimbo, respectively; and (iii) Tepui was the third lowest responsive bidder and was awarded the contract for the construction of the pump station at Belle Vue.
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