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Audit panel created to support transparency in health spending in the Caribbean

Caribbean

 

WASHINGTON, United States (CMC) – The Organization of American States (OAS) and the United States government on Wednesday agreed to create a panel of expert auditors to support transparency and accountability in public procurement and health spending in Latin American and Caribbean countries.

During a ceremony held at OAS headquarters in Washington DC, Secretary-General Luis Almagro said the hemisphere needs to create new regional and national approaches to prevent, mitigate and manage potential future health demands.

“This agreement is a very valuable step on a common path that can ensure the strengthening of our region’s health systems, and it is also a concrete opportunity for member states to strengthen their democratic governance,” he said.

“We look forward to working with the State Department and the member states in these efforts.”

The OAS said US Under Secretary for Economic Growth, Energy and the Environment Jose Fernandez, had expressed confidence that “the agreement will allow progress to be made in promoting transparency in public procurement in the health sector”.

“Today, as announced by Secretary General Almagro, we mark another milestone. By signing this cooperation agreement, we are making significant progress in the oversight of health systems,” Fernandez said.

The OAS noted that at the Summit of the Americas, held in June in Los Angeles, it was agreed to use public procurement to promote the sustainability and development of existing health budgets in an “effective, efficient and inclusive manner” and to promote “ethical conduct to prevent corruption in both the public and private sectors”.

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IDB funding US$1M training project to modernise local procurement system

Guyana

 

Local public procurement officials are expected to benefit from critical training under a US$1 million Inter-American Development Bank (IDB)-funded project intended to modernize the country’s procurement system.

The IDB recently published a request for expression of interest seeking a consulting firm to provide a public procurement training programme that will certify government officials in three levels of public procurement expertise in an online format.  The US$1 million loan falls under: Support to Fiscal Policy and Management in Guyana.

Although it is a loan, IDB will be executing the project.

In its terms of reference, the IDB noted that Guyana is a small, resource-rich economy, which sustained positive economic growth for over a decade and is expected to be producing over 1.5 million barrels of oil per day, making it the third largest oil producing nation within five years.

The IDB said that Guyana’s institutional framework has not been able to translate economic returns into improved outcomes.

“To be able to manage such resources effectively, the country needs a modern and efficient public procurement system,” the IDB said. The IDB noted that while Guyana has made improvements over the last few years, in terms of institutional arrangements, there is a need to deepen procurement capacity and capability to achieve fuller objectives of fairness, transparency, and best value for money.

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Public Procurement System to Be Reviewed

Jamaica

 

Plans are being made to review the public procurement system as the Government aims to achieve greater levels of efficiency.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, said this will be a “data-driven approach towards reviving the procurement system”.

“The Ministry is undertaking a data-intensive process where we will be retrieving information on 27 variables in procurement [relating to] economic efficiency, regulatory compliance [and] efficiency with respect to time,” he noted.

Dr. Clarke was speaking at a ceremony hosted by the Public Procurement Commission (PPC) in Kingston on August 24, to celebrate the milestone achievement of ISO 9001:2015 Certification.

The Minister emphasised that the public procurement system, overall, “needs some review, because many procurements take too long in many [government] agencies and ministries”.

“Part of the problem is that we have too many layers in the procurement process, and we have to recall that the process was put in place prior to us having an independent investigative body, with its own prosecutorial powers and powerful anti-corruption entity,” he added.

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Davis says Gov’t Will Bring Procurement Law Amendments After Break

Bahamas

 

After parliament returns from recess, amendments to the Public Procurement Act will be brought to the House of Assembly – that is the word from Bahamas’ Prime Minister, Philip Davis.

The Public Procurement Act, which was passed last year, is an act to provide the framework and procedures for the public procurement of goods, works and services; to establish a public procurement department; to promote transparency and integrity in public procurement and for connected matters.

The Free National Movement (FNM) has continually criticised the administration for not following the law, and Davis has expressed that the law as it is is not workable but challenging. FNM Leader Michael Pintard said the government’s failure to adhere to the law was unacceptable.

In May, Pintard expressed that “the prime minister admitted on his feet in the House of Assembly that he is not in compliance with the law and that they have no intention to obey the law as it is presently written,” he said in May.

Davis said, however, that “if we were to follow the law as it is, we would never be able to bring relief to people, particularly you would have seen the challenges we have with the hospital. If we were to follow that, we’d probably still be in the potholes trying to address the issues. They’re not workable,” he added while explaining the reason for the decision.

In order to combat the challenges, he said that the suggestions made in aid of amending the laws are under consideration.

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Set timeline for proclamation of act

Trinidad and Tobago

 

Procurement Regulator Moonilal Lalchan said Attorney General Reginald Armour has asked the Office of Procurement Regulation (OPR) to put together a timeline for the realistic proclamation of the Public Procurement and Disposal of Public Property Act.

The OPR and AG Armour met last Tuesday.

Lalchan told members of Transparency Institute, in a Zoom meeting on Thursday night, that the OPR board will meet next Wednesday to formalise the timeline.

And he’s optimistic it can be done in a reasonably short time.

“In September 2019, we would have written the Minister of Finance indicating which part of the legislation should be further proclaimed even though we did not have the regulations passed. The regulations have now been passed. The Attorney General has asked the office, in the meeting on Tuesday, to put together a proposed timeline for the full implementation including some of the concerns that were raised by the Chief Justice,” he said.

Lalchan said that the OPR’s proposals would address concerns raised by the Chief Justice “which we believe are not insurmountable and we can address those”.

Four weeks ago, in a statement to Parliament, Armour said that more consultation needs to be done before the Act can be proclaimed based on communication he received from the Office of the Procurement Regulation (OPR) and the Judiciary.

In the case of the OPR, he said they had communicated that “there is significant work to be undertaken to establish the required system and processes”.

In the case of the Judiciary, they wrote a 29 page letter to Armour, focused on their administrative capacity, in which it said it was generally unprepared at this time with resources.

Lalchan explained that since the office was set up they have faced delays in getting things done in a timely fashion.

1. He said that since September 2019, the OPR would have written to public bodies to complete their readiness assessment for full proclamation of the Act. However, almost four years later, only 72 public bodies out of 415 major public bodies have done so.

2. Also from 2019, public bodies and ministries were put on notice that a procurement officer needed to be named as the Government moved toward implementing the Procurement Act. Lalchan said to date, this “critical” appointment has not yet been completed. “To date, we have only gotten responses from 123 bodies to date,” he said. He noted that it’s the appointed procurement officer that the OPR would last with. “So we would have sent reminders to the named procurement officers, the accounting officers, permanent secretaries, continuously reminding us that you need that information to make sure that when we put together our procurement depository, we will have a contract person,” he said. In the absence of the procurement officer, the OPR has been using public bulletins. “We will state very clearly to the Attorney General, that that has to be done as a matter of urgency and it should have already been completed,” he said.

3. He said there are also regulations, Section 57 A of the Act, which deals with the disposal of real property that has to be placed to negative resolution in Parliament by the Minister of Finance.

“That has not been completed. So that itself would be another reason why that will be a delay in terms of the disposal of real property that the regulations have to be done by the Minister,” he said.

Ready for flood of requests

He noted that one of the areas of concern is the readiness of the office to deal with some of the complaints and challenges.

He said that ten judges from the judiciary had provided training to the OPR “so that we as a committee, constituted members of the board and management, could deal with these challenge proceedings”.

“Additionally, we have two judges from the Caribbean Court of Justice that worked with us. So I would say we are well prepared to take advantage and adjudicate on the matters that will come before the Office in the near future. So it’s not a matter of the office not being prepared,” he said.

He noted that unless the Act is proclaimed and the OPR becomes operational, then the full extent of what procurement in the public sector will be like is just speculation.

“It is all speculation as to the flood of requests that will come through. Additionally, when you look at them there are only three areas. It’s not every single thing that comes before the office for adjudication.

“Those three areas are: when a supplier/contractor feels that there was a breach of the act, and they likely to suffer loss in terms of the pre qualification, pre selection and solicitation even before a contract is awarded, the standstill period and that’s a defined period of between ten and 15 days and the third is after a contract has been awarded, there is seven days to lodge a complaint upon which, the OPR will review.

“When it comes before the office, that gives us 20 days in which to complete the entire hearing and adjudicate on the matter. We are not aware whether the review board that was included in an amendment is operationalised. But if the review board is not fully constituted, the question is where it go, whether it goes straight to the courts,” he said.

On Monday, at a news conference, Prime Minister Dr Keith Rowley said that there would be a delay in the proclamation of the Procurement Act but he is anxious to have it proclaimed.

“What has been happening is that every time we attempt to proclaim these law elements, I should say interested parties and clients will point out pitfalls. And we come back to the parliament and we adjust it. But there always seems to be some problem because this is a very far reaching piece of legislation, which could have serious consequences to the operations of the government,” he said.

“It would be irresponsible of me and the Government to disregard what has been identified by the Chief Justice and, of course, what is being also considered by the Office of the regulator, notwithstanding how eager we are to have it proclaimed so that we can once and for all put this on the books,” he said.

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