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Public Procurement in The Rep. of Maldives

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Presentation on theme: "Public Procurement in The Rep. of Maldives"— Presentation transcript:

1 Public Procurement in The Rep. of Maldives

2 Tender Evaluation Section
Introduction Tender Evaluation Section Welcome Introductions & expectations from the workshop

3 Definition of Procurement
What is Procurement? ‘Acquisition by purchase, rental, lease, hire purchase, license, franchise or any other contractual means, of any types of goods, works or services or any combination of goods, works or services’ Not process or a procedure but management

4 Public Sector Procurement
What is special about Public Procurement?

5 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 Accountable and transparent Public procurement is the way public money is spent – budgets get translated into services largely through the procurement system First principles of procurement Efficiency & effectiveness Professionalism Competitiveness Accountability Value for money Fairness Transparency Ethical approach accountability

6 Government Responsibilities for Procurement

7 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procurement regulations Government Financial Regulations Chapter 8 (and certain other clauses) on procurement to be repealed new chapter drafted ( chapter 10) remaining regulations will be revised separately Procurement is currently governed by Chapter 8 of the Financial Regulations. These are outdated and have a number of weaknesses: They mostly cover only the procurement of works, with goods and services not adequately covered After several revisions, there are some inconsistencies with other chapters of the Financial Regulations They are not sufficiently detailed and do not meet international standards They don’t include effective mechanisms for monitoring procurement or for complaints by tenderers The division of responsibilities between TES and the ministries is not clear They don’t include any arrangements for central purchasing of commonly used items to enable the government to obtain maximum value for money. The Government is therefore preparing new procurement regulations as the first step in strengthening the public procurement system. Objectives The new regulations have the objectives of ensuring transparency and accountability in public procurement; achieving economy, efficiency and maximum competition to ensure value for money in the use of public moneys; and promoting greater private sector participation, through fair and non-discriminatory treatment of tenderers. Standard bidding documents have also been prepared in line with the regulations. Key Contents The public procurement regulations include the following: They create a new Procurement Policy Section in MOFT to oversee procurement They clarify responsibilities between different parts of government and give clear responsibilities for approving procurement activities They bring uniformity to procurement practices across government They introduce a complaints mechanism which allows tenderers to appeal against breaches of procurement rules by the government They allow government to suspend or blacklist suppliers who consistently default on contracts They introduce codes of conduct for both the government and the private sector.

8 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

9 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

10 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

11 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

12 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 Invitation documents, advertisements and shortlists for tendering or request for proposals prior to their issue Evaluation reports prior to any further tender opening, negotiations or letter of acceptance Contract amendments or terminations prior to their issue Also single source selection except for procurement under MRf 1000

13 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 NTB is highest approvals authority for Govt of Maldives – run and administered by MOFT Unlimited authority but has no authority over procurement that

14 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

15 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

16 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 Lead agency – conducts procurement on behalf of another government agency or agencies

17 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

18 Monitoring and Observation of 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

19 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;

20 New initiative for Modernizing the Public Procurement in Maldives
developing procurement manuals and standard operating 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.

21 Role of the Auditor general’s office
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 of goods and services has been made against the prescribed guidelines in the public finance regulation


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