Jamaica
The Government intends to amend the Procurement Act to increase the effectiveness of the country’s existing procurement system.
Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, gave details while responding to concerns from Opposition Spokesman on Finance, Planning and the Public Service, Julian Robinson, during the tabling of the Third Supplementary Estimates for the 2023/24 financial year in the House of Representatives, on September 26.
The concerns surround the capital expenditure of $66.6 billion, which represents a reduction of $8.7 billion on the prior allocation for capital programmes, and the current procurement system.
“We continue to review the Procurement Act and at some point, not too far in the future, we plan to introduce a few amendments here that can help to make that system more efficient,” Dr. Clarke said.
He emphasised, however, that persons who are responsible for using the Act must familiarise themselves with it.
“No matter what changes we make, we have to ensure that persons who are responsible for using the Act are familiar with it. A big part of the problem sometimes is that people go all the way down the wicket and then realise that they didn’t do it in the way they ought to, and so it has to be done again and that’s where, frustrating as it is, delays can come from, so I absolutely share your concern,” Dr. Clarke said.
The Minister argued that the need for greater levels of training is critical in the use of the Act.
“We have to redouble our efforts in training Procurement Officers in the use of the Procurement Act. There is a lot in there that can allow for accelerated performance of capital projects,” he added.
The Minister pointed out that the reduction in the Capital Expenditure “does not represent any project that is being canned; the reduction comes from the contingency provision in the capital expenditure envelope”.
Meanwhile, he said new instructions have been given for projects that would fit the description of “emergency” under the Public Investment Management System (PIMS).
“Projects that would fit the description of an emergency, whether from natural disaster or from a project that if not done could mean immediate liability for the Government… the procedures that are required for the public investment process will be significantly scaled down, such that the time involved would be significantly reduced,” the Minister explained.
“I promised it and we have delivered it. Madam Speaker, in August this year, the instructions went out to all ministries, departments and agencies for new projects, so it’s a new arrangement for emergency projects,” he added.
PIMS aims to streamline the preparation, appraisal, approval and management of all government projects.
The Third Supplementary Estimates provide for total expenditure of $1.094 trillion, which is an increase of $58.2 billion over the Second Supplementary Estimates.
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Trinidad and Tobago
Three years after the Government referred a complaint against former attorney general Anand Ramlogan over a multimillion-dollar contract for ambulance services, the Integrity Commission has said it cannot provide a time frame for the conclusion of its investigation of the complaint.
The complaint was referred to the commission on September 9, 2020.
But repeated requests by the Ministry of Finance for information on the status of the investigation, as well as a time frame for its completion, have produced a response by the Integrity Commission that it cannot give a time frame.
The matter arose following an investigation conducted by a Cabinet-appointed team into the circumstances surrounding the cancellation of an award of a contract to Medavie EMS, a Canadian company, to manage the 24-hour ambulance service.
The contract was first awarded through competitive tender by the Central Tenders Board (CTB) by letter dated September 8, 2011.
After the cancellation, a subsequent contract for $630.2 million was given, via a sole selective tender, to Global Medical Response of Trinidad and Tobago (GMRTT), which was previously successful when it tendered for the contract for a five-year period starting September 1, 2015, on the eve of the general election on September 7, 2015.
GMRTT is a joint venture between Amalgamated Security Services and American Medical Response, a North American provider of ambulance and emergency medical services.
The People’s National Movement (PNM) cabinet on July 13, 2017, agreed to the appointment of a team to investigate the process which led to the cancellation of the contract with Medavie and the eventual award to GMRTT.
The original two-member investigation team comprised (retired judge) Paula-Mae Weekes and Claire Gomez-Miller, an auditor.
Weekes was elected president of the country on January 19, 2018, and assumed office on March 19, 2018.
The Cabinet replaced her with Sandra Jones, a former permanent secretary (PS) to the prime minister and former head of the Public Service, who had also been a former PS in the Ministry of Health.
The Jones-led team submitted its final report to the Ministry of Finance on July 17, 2020, and the matter was referred to the Integrity Commission on September 9, 2020.
CTB’s procurement process ‘frustrated
The investigative report obtained by the Sunday Express concluded that all parties functioned within their roles and responsibilities, except for the then-attorney general (Ramlogan) who undertook to review the decision of the Central Tenders Board to award the contract initially to Medavie.
The then-AG directed the suspension of the CTB’s award and that subsequently “frustrated the CTB’s procurement process by withholding his findings and opinion”.
The Jones-led investigation team said it found no evidence of irregularities within the CTB’s tender process when it awarded the contract to Medavie and, therefore it concluded that “in the absence of any evidence to the contrary…the alleged complaint of irregularities (which Ramlogan had presented as the reason for his three-year-plus review) was baseless…and was made with the intent of subverting the award of the contract to Medavie.
“The (former) AG, deliberately or otherwise, failed to expedite and close the complaint thereby also subverting the award of contract to Medavie and giving all benefits to the unsuccessful bidder, GMRTT.
The team concluded that the (former) AG’s procrastination with his review, which started from October 2011, “deliberate or otherwise”, caused:
1. CTB in October 2014 (three years after his review started) to cancel the award given to Medavie
2. The AG’s “procrastination” also resulted in GMRTT, the twice unsuccessful bidder, to unfairly benefit through continued month-to-month contracts for approximately four years from October 2011 when the AG started his review to September 1, 2015, when GMRTT received a ($630 million) five-year contract,
3. It (the “procrastination”) also led to GMRTT to gain a five-year contract from September 1, 2015, to August 31, 2020, as a sole selective bidder and without Medavie being allowed to contest the bid
4. Lastly, it caused Medavie to be unfairly and unethically treated, with no grounds nor reason, without transparency, and without compensation for costs incurred post the award of contract.
“The Investigation Team found that as a direct consequence of his (Ramlogan’s) actions or lack thereof, the AG had caused CTB’s procurement process to be brought into disrepute, and the nation of Trinidad and Tobago to be seen internationally as a country with corrupt tendering practices,” the team concluded.
The report added: “The Attorney General by virtue of the power of his office and position in the Government was the major contributor to the subversion of the tendering process being conducted by the CTB,” the report stated.
Background
On October 11, 2011, the then-minister of health (Dr Fuad Khan) informed the permanent secretary in the ministry that the contract, which had been awarded to Medavie for the operation of the ambulance service, was due to be signed soon.
However the then-attorney general “in a verbal request” asked that the Ministry of Health delay the signing of the contract, pending his perusal of the contract and files.
The ministry complied with his request, even though it came at the time the CTB’s tender process had already advanced to the finalisation of the contract with the preferred service provider, Medavie.
In explaining the reason for his request, Ramlogan, in a letter dated October 12, 2011, to the minister of health, indicated that party/parties unnamed requested his review of the process “in the interest of transparency, consistent with the integrity of fairness in public life”.
Ramlogan, however, in a subsequent letter on November 9, 2011, to the PS in the Ministry of Health, stated that the review was based on a verbal request made to him by Khan.
Khan refuted this claim that he had instigated the AG’s review in a letter dated November 11, 2011, to Ramlogan, in which he stated: “I wish to unequivocally state that at no point in time, either verbally or in writing, did I seek your advice on the captioned contract.”
The investigation team said it found that the AG’s review was driven by an unidentified source who sought to have the process reviewed by him because of “certain allegations being made about the tender process”. The investigation team said it sought information on this complainant, via a questionnaire, but received none.
The report of the investigation team indicated that interviews and records confirmed that the Ministry of Health repeatedly made requests to Ramlogan to provide his opinion over the three-year period (between October 2011 to August 2014) when the Health Ministry “in frustration” terminated the tender process.
The report of the investigation team said there was no evidence that the then-AG acceded to the Ministry of Health’s requests for his opinion.
Cabinet was complicit
The investigation report found that the cabinet was complicit in the “unfounded delay and frustration of the contract” which had been awarded to Medavie.
GMRTT had received a three-year contract (2005-2008) under the Manning government.
But it was rejected for a further contract by the Central Tenders Board, first in April 2010 and again in September 2011, when Medavie Emergency Medical Service Inc of Canada was recommended by CTB.
However, because of the review being done by Ramlogan, GMRTT continued to be retained on a month-to-month basis, “benefitting directly both from the AG’s decision to instruct the delay of the signing of the contract with Medavie and his failure to complete (his review) or terminate his intervention.
“By the end of 2013, GMRTT had received an extension of 63 months (five years and three months), despite the fact that it had been an unsuccessful bidder in 2009 and again in 2011.”
The cabinet, in February 2013, despite the fact that it was aware that CTB had awarded the contract to Medavie EMS, agreed to the continuation of GMRTT’s month-to-month contract “with no caveat”.
By the end of 2014, GMRTT had received an extension of 75 months (six years and three months) to its 2005/2008 contract.
By August 22, 2014, the acting PS in the Health Ministry, Lydia Jacobs, in a letter to the director of contracts at the Central Tenders Board, indicated the ministry was no longer interested in executing the contract with Medavie and that the process should be aborted.
“CTB was asked to terminate the contract because of the lapse of time and in the absence of direction from the then AG,” the report stated. The director of contracts, CTB, by letters dated October 24, 2014, then informed Medavie and GMRTT that the Ministry of Health had advised that “due to circumstances beyond its control and the lapse of time, it is no longer interested in pursuing the project”.
Medavie was informed that the award given by letter dated September 8, 2011, to move to the stage of signing the contract was cancelled.
On February 15, 2015, the then-minister of finance approved the Ministry of Health’s request to have the tender for the National Emergency Services be done through a sole selection process, and on April 16, 2015, CTB issued its letter of award to GMRTT.
On August 13, GMRTT entered into a five-year contract for the period September 1, 2015, to August 31, 2020.
The contract sum was $630.2 million, representing $548 million, plus VAT of $82.2 million.
The report noted that in the final analysis, the unsuccessful bidder in the end was successful.
“The twice unsuccessful bidder GMRTT had received an extension of nearly seven years to its 2005/2008 contract plus a lucrative $630.2 million five-year contract by 2015 to the detriment of the successful 2011 bidder Medavie,” the report stated.
GMRTT continues to provide the ambulance service up to today.
Medavie, Canadian High Commissioner expressed concerns
During the review period, the high commissioner of Canada, by letter dated October 27, 2011, queried the delay in the execution of the contract between the Ministry of Health and Medavie.
“We were recently concerned to read a report in one of the Trinidad and Tobago newspapers alluding to the Government of Trinidad and Tobago’s plans to review this award (to Medavie). At the same time, we heard from the company that communications with your ministry (ie, MoH) had ceased, without explanation. I would be appreciative, Minister, of your assurance that a transparent procedure has been integral to this procurement process and that the preferred bidder has been, or will be, advised appropriately of any concerns and (will be) offered formally the opportunity to respond and thereafter continue with contract negotiations,” the high commissioner of Canada stated.
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Jamaica
In this age of rapid technological advancement, where digital solutions permeate every corner of our lives, a bright beacon emerges in the battle against a tenacious adversary: corruption. The virtues of technology — transparency, traceability, and resistance to tampering — offer potent tools to curtail spaces that have long been fertile grounds for corrupt practices.
Digital Oversight Systems
In the modern digital age, the judicious application of technology can usher in an era of unparalleled transparency and accountability. Digitisation, when deftly implemented, provides meticulous real-time tracking, diligent monitoring, and comprehensive reporting on the deployment of public funds. This laser-focused oversight makes any misallocations stand out like a sore thumb, facilitating immediate corrective actions.
Take the case of Estonia, a nation that stands tall as a paragon of digital governance. The country, through its e-Estonia platform born out of its 1994 IT development strategy, offers its citizens online portals to access a vast majority of governmental services. This digital window not only streamlines processes, eliminating bureaucratic hurdles, but also carves out a transparent platform that significantly reduces the nooks and crannies where corruption might lurk. On the other side of the globe, South Korea has been making waves with its OPEN system. This initiative empowers its citizens by giving them the ability to monitor the trajectory of their civil applications – be it for permits or licenses. The outcome is twofold: it binds public officers to a standard of fairness while simultaneously slashing the instances of bribery.
So, where does Jamaica fit into this digital tapestry? The roadmap for us is clear. Drawing inspiration from these global benchmarks, Jamaica can roll out a comprehensive e-Government portal. This wouldn’t merely be a listing of expenditures. Envision a platform where each financial decision is accompanied by names, exact date and time stamps denoting various approval stages. But it doesn’t stop there. Every approval or rejection would be rooted in transparent, consistent, and objective criteria. Such a system would strip away the layers of subjectivity, or even the perception of it, that often taints the interactions between the government and its citizens. The result? A rejuvenated trust in the machinery of governance, underpinned by the impartiality and objectivity that technology can bring to the fore.
Some will argue that NIDS is a necessary precursor to such a system, and this is perhaps a reasonable argument. However, NIDS was born out of a plan to significantly reduce voter fraud, which has since been done through ECJ, and not out of a clearly articulated strategy to create a truly digital society. I submit that a clearly articulated strategy with public buy in is necessary and lacking.
Transparent Procurement Processes
Transparent digital tendering processes for governmental contracts can be the antidote to clandestine, illicit deals, ensuring contracts are awarded on merit rather than connections.
Take Georgia, for instance. Its Electronic Procurement System, built for public procurement tasks, has been a game-changer, ensuring transparency, bolstering competition, and speeding up transactions. Its success is quantifiable, marked by substantial savings and diminished corruption. The OECD, United Nations and Transparency International have all lauded Georgia for the Georgian electronic Government Procurement (Ge-GP) system which was designed, developed and tested within a year. This is what political will looks like. Similarly, India’s Government e Marketplace (GeM) offers an open platform for government procurement, ensuring transparency at every turn.
For Jamaica, the path forward could involve crafting a digital platform for government tenders, where every step – from tendering to awarding – is open for all to see and monitor. Of note, in the Ge-GP system, the name of the bidder is not made public until bids are opened. Technology can allow names of bidders to be hidden from even administrators until bidders are shortlisted to remove the opportunity for vested interests to be pre-selected for contracts, as is oftentimes suspected.
Blockchain and Immutable Record Keeping
Blockchain’s claim to fame isn’t limited to cryptocurrencies. Its inherent transparency and resistance to tampering offer a trustworthy record-keeping system.
The ambitious Dubai Blockchain Strategy aimed to shift all government transactions onto blockchain by 2020, a move poised to drive efficiency, foster digital industries, and gear up the government for future innovations. While it is not clear if their strategy was achieved, it is this kind of big, hairy, audacious goal that will help Jamaica to secure our bhag. Companies including Walmart and UPS integrate blockchain in their logistics tracking systems. Delaware amended its General Corporation Law in 2017 to allow corporations to use blockchain in corporate record keeping.
Jamaica stands to benefit immensely from such innovations. Consider the transformative potential of applying blockchain to land registries, ensuring every property transaction is both transparent and resistant to fraudulent practices. This technology would have potentially saved a few famous attorneys from themselves.
Infusing governance with technology transcends mere efficiency; it’s about rekindling trust. The Jamaica we know and love, brimming with promise, rightfully deserves an open, accountable governance system. Through technology, we can sculpt a future where governance isn’t just swift, but also above reproach. But it requires a clear vision of what we can become and the political will to get us there.
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Guyana
A Partnership for National Unity+Alliance For Change (APNU) parliamentarian, Ganesh Mahipaul on Sunday demanded that the opposition have a say in the processing and award of multimillion dollar contracts by the National Procurement and Tender Administration Board (NPTAB).
“We need to amend the Procurement Act of 2003 and revisit the composition of the evaluation committee and tender board. The body has to be more inclusive and independent with membership that reflects the voice of the people, not just the Government deciding on the composition,” he told Demerara Waves Online News.
Mr Mahipaul, who is also a member of the bipartisan Public Accounts Committee (PAC), said NPTAB should have two opposition-nominated members just as the Public Procurement Commission (PPC) which is tasked, with among other things, investigating grievances and complaints as well as imposing sanctions.
The Region Three (West Demerara-Essequibo Islands) parliamentary representative for the coalition stressed the need to change the system to make it more representative and inclusive. “We are talking about fixing the system and getting it right. As a young politician my concern is about us getting it right not about what it has always been. Going forward for the benefit of all Guyanese it must be about us getting it right,” he said.
The NPTAB consists of People’s Progressive Party (PPP) candidate Gloria Beharry, PPP politician Steve Ninvalle, PPP supporter Desmond Mohammed, as well as Mark Conway. In the Official Gazette, Ninvalle, Beharry and Conway are listed as “non-government” members while Mohammed, Lord, Omar Narine and NPTAB Chairman Tarachand Balgobin are described as “government” representatives.
Opposition Leader Aubrey Norton recently said the opposition has not been invited to sit on State boards. There are several boards that require opposition representation but they remain vacant.
Alleging unspecified corruption in the award of contracts, Mr Mahipaul, who is a Central Executive member of the People’s National Congress Reform (PNCR), called for a probe into that government agency. “Consequently, it is not only justifiable but imperative to call for an immediate and comprehensive investigation into the operations of the NPTAB,” he said.
Mr Mahipaul said the the Procurement Act of 2003, unequivocally mandates that contracts be awarded to the lowest, most responsive bidder. He alleged that alarming pattern has emerged where the lowest bidders, in several recent projects, “seem strangely bereft of responsiveness when the NPTAB bestows contracts upon them.”
Demerara Waves Online News was reliably informed that NPTAB or the procurement agency does not automatically award contracts to lowest priced tenders but to lowest evaluated tenders based on a number of factors such as the life-cycle operational costs over a given period, availability of spare parts if its equipment, minimum experience, pricing, and access to cheaper materials in stock.
The emphasis is not on the lowest price, but the lowest responsive tender based on those that have been evaluated because in some instances a number of them are not eligible for further consideration because they do not have tax and National Insurance Scheme compliance or bid security, Demerara Waves Online News was told.
The opposition lawmaker alleged that the procurement system was being skewed but the PPC has not been taking any action. “This distortion of the system not only undermines the principles of fairness and equity but corrodes the very foundations of a just and accountable government,” he said.
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