Public Procurement in The Rep. of Maldives Introduction Tender - - PowerPoint PPT Presentation

Public Procurement

in The Rep. of Maldives

Introduction

Tender Evaluation Section

Definition of Procurement

What is Procurement?

‘Acquisition by purchase, rental, lease, hire purchase, license, franchise

• r

any

• ther

contractual means, of any types of goods, works or services or any combination of goods, works or services’

Public Sector Procurement

What is special about Public Procurement?

Public Sector Procurement

What is special about Public Procurement?

• Source of funds is the principal difference -

government funds are often tax revenues, donor funds

• Therefore there is a need to be accountable to

Parliament, civil society and donors

• Uniformity of systems and procedures across

the public sector

Government Responsibilities for Procurement

Legal Framework for Public Procurement



Law on Public Finances – Law No. 3/2006

 covers public expenditure  limited detail on procurement  may need small revision to accommodate procurement

regulations



Government Financial Regulations

 Chapter 8 (and certain other clauses) on procurement to

be repealed

 new chapter drafted ( chapter 10)  remaining regulations will be revised separately

What do the regulations apply to?

 All procurement by government

agencies using public moneys

 Public enterprises NOT covered

 Exceptions for:

 defence or national security  grants/credits where donor rules apply  private financing and concessions

Objectives of Public Procurement

 Transparency and accountability  Economy, efficiency and competition =

value for money

 Promote private sector participation

through fair and non-discriminatory treatment of tenderers

Who authorises procurement?

 Approvals authority can be:

 Accountable officer – low value contracts  Agency Tender Committees – where authorised by

Financial Controller up to specified level of authority

 National Tender Board – unlimited authority

Levels of Authority

• Accountable Officer: value of procurement does not

exceed MRf 25,000 ( USD 1,621)

• Agency Tender Committee: value of procurement does

not exceed MRf 1,500,000 (USD 97,276)

• National Tender Board: all other procurement

Role of Approvals Authority

 Ensure procurement is compliant with the

Regulations

 Authorise certain stages of procurement

process:

 Invitation documents  Evaluation reports  Contract amendments

 Also authorise use of single source/emergency

procurement

National Tender Board

 Previously known as Tender Evaluation Board  Run by Ministry of Finance and Treasury  Chairperson and seven members – appointed by

President

 At least 2 members from private sector – not

permitted to tender while serving on Board

 Secretary – Head of Tender Evaluation Section  To ensure that all procurement submitted for

prior authorisation is in accordance with Regulations

Agency Tender Committees

 May be established where procurement

workload and capacity are high

 Subject to government policy on centralisation/

decentralisation

 Minister to authorise establishment  Not in all government agencies – levels may

differ

 To ensure that all procurement submitted for

prior authorisation is in accordance with Regulations

Composition of Agency Tender Committees

 Chairperson and 2-6 members  Appointed by Accountable officer  Selected for range of technical skills and

knowledge

 Government agencies must establish

Procurement Unit to support Tender Committee

 Head acts as Secretary

Who conducts procurement?

 Lead government agencies – specialised and

common use items

 Government agencies themselves – up to

level of authority

 Tender Evaluation Section– all other items  Requisitioning agency will always:

 Plan procurement  Authorise funding  Provide technical inputs/assist with evaluation

Mode of Procurement

 Most of the government agencies uses SAP-Materials

Management Module (MM) to procure their goods and services

 MM has been implemented to more 70% of the

government agencies in term of the spending (budget)

 Standardize Purchase order throughout the

implemented agencies

 Centrally Managed by the Ministry of Finance and

Treasury

Monitoring and Observation

• f the Public procurement

 Public Procurement Section is not yet established  Currently there are no mechanism to monitor

public procurement in all government agencies

 But through SAP- Materials Management Module

most of the agencies based in Male’, will be monitored though this system

 If the government agencies do not follow the rules

and regulations of the public procurement, they will be reported to Anti-Corruption Commission directly

New initiative for Modernizing the Public Procurement in Maldives (Continued…)

The PFM Strengthening Project (2014~2019) contains specific component for Improving the control environment where the objective is to strengthen the country procurement management system by:



Review and updating of the Financial Regulations including the Procurement Chapters;

 standardization

and establishing procurement benchmarks based on international good practice;

 setting up of the procurement policy section;  establishment of complaints handing system;  strengthening the tender evaluation section within the

MOFT-based National Tender Board;

New initiative for Modernizing the Public Procurement in Maldives

 developing procurement manuals and standard

• perating procedures for harmonizing the

procurement practices across the country;

 reviewing and updating the standard bidding

documents;

 establishment of institutionalized and sustainable

procurement training mechanism via the Civil Service Commission;

 Professionalize and introduction of procurement

cadre in the civil services.

Role of the Auditor general’s

• ffice

 AGO reports directly to parliament and public accounts

committee

 Under the public finance law, each accountable office

has to be audited every year and audit report has to be sent to the parliament on or before 31st May of the following year

 Copy of the same report is sent to the President,

Minister of Finance and Treasury and audited entity

 In the year 2013, MVR 1.4 billion worth of procurement

• f goods and services has been made against the

prescribed guidelines in the public finance regulation