ENHANCED PARTNERSHIP IN GOVERNMENT CONTRACT MANAGEMENT : A KEY INPUT TOWARDS ACHIEVING VISION2020 Presentation by Kalihangabo Isabelle Permanente Secretary / Solicitor General At the training for Legal advisers working for Private Companies 28 th April 2016 at Hill T op Hotel 1
Partnership: Public and Private Sectors One of Rwanda’s vision 2020 pillars is to be a country with a private sector led economy More efforts have been pulled together to strengthen the Private sector so as to put it at the fore front (Drivers) of Rwanda’s economy. The Private sector is a great partner of the Government in all its activities. 2
Partnership: Public and Private Sectors cont’d…... A huge part of Government activities and projects are implemented through public procurement (Public Contracting) by which GoR outsources services, goods and works from the private sector. The Government is at the service of the citizens and any poor or non execution of a government contract does not only affect the Government institution involved in the contract but also has serious repercussions on the entire country’s population. 3
Consequences of Poor contract management In the financial year ending 30th June 2014, the Auditor General reported that 126 billion were lost in 78 projects in 27 Institutions due to poor contract management. This represents 8% of the National Budget for that year and the projects were all aiming at the welfare of the People of Rwanda through providing them with access roads, electricity, clean water, hospitals, schools and other necessary infrastructure. In this case, public funds were spent yet the intended results were not achieved 4
Consequences of Poor contract management cont’d……. A big number of cases in litigation involving the Government and the private sector results from issues pertaining to contract management In one way or another, litigation leads both the Government and Private companies to engage more resources in unnecessary manner Contract management should not be regarded as a responsibility of the Government only. It is rather, a shared responsibility between both contracting Parties (GoR and the Successful bidder) 5
Consequences of Poor contract management cont’d……. Members of the Private sector should understand that they are affected by poor contract execution in either way: Firstly, they may end up suffering losses, Secondly, their business name is tarnished Thirdly, when the road is not constructed, Electricity/power is not generated, hospital and schools not constructed, their absence affects the whole population including the members of the private sector and their relatives . 6
Consequences of Poor contract management cont’d……. It is a wrong perspective to think that when public funds are spent without positive results, it is the Government that loses. It is important to always remember that public funds are collected through taxes and other contributions from the people in order to implement projects of general interest. It should be understood that the main looser is the population. 7
Advantages of Good contract management When Government contracts are well managed the benefit goes to the Government , to the Company and most of all to the citizen. In Business perspective, a company gets more profits when a contract is well executed and completed on time. Due to the above, contract management should be a priority to both the procuring entity and the company that has been awarded the tender. 8
Advantages of Good contract management Cont’d……… IN BRIEF, CONTRACT MANAGEMENT: Gives the opportunity to both parties to achieve their targets and avoid losses Avoids unnecessary Litigation Benefits the entire citizenry by providing them with the needed infrastructure and services Promotes the adequate use of available resources Excellent execution of contracts has a great impact in strengthening the Private Sector and is a sign of a sector that is trustworthy. 9
Conclusion The aim of today’s workshop is to discuss with the Private Sector and have a common understanding on the essence of contract management and give it a priority Let each one of us understands the need in adequate use of public resources mainly those that are spend through contracting After this workshop, we wish the public and Private sector to commit ourselves to the protection of public funds against unnecessary losses by laying down strategies for proper contract management 10
Conclusion Cont’d….. With our combined effort, I believe the next Auditor General’s report will be positive and show an excellent performance in contracts execution as well as Government projects implementation and those ongoing will be reported to be on the right track. Let us all strive to ensure that our country maximizes the gain from the little resources it has to invest for the benefit of its people. 11
THANK YOU !!!!!!!!! 12
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