Public Procurement Law Tranparency and Accountability

8/12/2019 Public Procurement Law Tranparency and Accountability

1/32

1

PPA, 2007 AS A TOOL FOR ENFORCING TRANSPARENCY

AND ACCOUNTABILITY IN THE NIGERIAN BUILDING &

CONSTRUCTION SECTORBY

ENGR. EMEKA M. EZEH, OFR

DIRECTOR-GENERAL

BUREAU OF PUBLIC PROCUREMENT (BPP)

@

QUANTITY SURVEYORS REGISTRATION BOARD OF NIGERIA THIRD

BUILDING & CONSTRUCTION ROUNDTABLE (BCERT 3)

DATE: THURSDAY MAY 24 2013VENUE: SHEHU MUSA YARDUA CENTRE ABUJA


2/32

2

HIGHLIGHTS

Why Transparency and Accountability(TA)?

Challenges for Achieving TA

What is Procurement

PPA, 2007 a to to achieve TABCPs

Conclusions


3/32

3

Why Transparency and Accountability in

Building and Construction Projects (TABCPs)?

BCPs make a major contribution toeconomic growth and poverty reduction

Mismanagement and corruption during

the planning and implementation of cangreatly undermine the expected social

and economic benefits.


4/32

4

Why TABCPs?

Where procurement officers demand bribes, orcontractors offer bribes to win contracts,

prices may be inflated and competition is impaired.

High prices and poor quality, as well as time delays,

can also arise from mismanagement,

from a poorly prepared specification and inadequate

supervision during the implementation of the project.


5/32

5

Why TABCPs

Corruption and mismanagement can leadto unsuitable, defective, and dangerousinfrastructurebuildings that collapse

and roads that break upwhich not onlyraises the costs of maintenance, repair,and replacement but can also result incivil and criminal liability for damages

Transparency helps to expose bothcorruption and mismanagement


6/32

6

Challenges for achieving TABCPs

A complex and long project cycle causes for concern throughout the project cycle,

including the feasibility, design, tendering, award

and implementation phases A diverse set of actors

Complex information.


7/32

7


A diverse set of actors Each phase of a construction project generally

involves different management teams, and requiresthose in charge of each completed phase to hand overto the team undertaking the next phase.

The interrelationships between the actors on aconstruction site are based on historically definedroles for the architect, engineer, quantity surveyor andor builder, with separate responsibilities for planningand designing the structure, estimating the price andconstructing the asset

These create an environment with a diverse set ofactors.


8/32

8


Complex information. such as contract award price, engineers estimate, or the

number of bidderscan be presented clearly and requiresno further interpretation for the public, informationrelating to changes to cost, time, and quality requiresexpert interpretation.

For example, during contract execution, claims may beartificially inflated, and variation orders and extensions oftimes may be unjustified, but detecting whether this is so

is not easy. Client officials may deliberately embezzle project funds

through fraudulent payments in respect of defective work,equipment, or services not actually supplied


9/32

9

PUBLIC PROCUREMENT ACT AS A TOOL FOR

TABCPs

The Public Procurement Act 2007 putsNigeria in the league of countries withlegislation on how Public Funds would

be expended. Prior to now, Nigeria wasamong the few African countrieswithout legislation on PublicProcurement.


10/32

10

WHAT IS PROCUREMENT?

Procurement is defined as the overallprocess of acquisition of goods, works and

services at the BEST POSSIBLE TOTAL cost of

ownership, in the Right Quantity and

QUALITY at the RIGHT TIME, in the RIGHT

PLACE for the direct BENEFIT or use of

Government, Corporation or individuals,

generally via a contract.


11/32

11

BPP has Regulatory functions to achievethe core objectives:

Probity and Accountability

Transparency and Fairness Economy & Efficiency

CompetitionProviding level playing

ground for all strata of bidders Value for Money

CORE OBJECTIVES BPP

PPA, 2007 Section 4


12/32

12

Preparing the needs assessment & evaluation Identifying the goods, works or services

required,

Carry out appropriate market and statistical

survey and on that basis prepare costimplications of proposed procurement.

Aggregating its requirement to obtain economy

of scale & reduce procurement cost

PPA, 2007 SECTION 18 : PROCUREMENT

PLANNING


13/32

13

Each MDA must have a PPC to do

the afore-mentionedresponsibilities.


PLANNINGCOMMITTEE (PPC)


14/32

14

Membership

Accounting Officer or its representative to chair.

Procurement Unitto serve as Secretary

Unit directly in requirement of procurement

Financial Unit of the MDA

PRS Department of MDA

Technical personnel of MDA with expertise in the

subject matter for each particular procurement.

Legal Unit of the procuring entity




15/32

15

Membership

Accounting Officer or its representative to chair.

Procurement Unitto serve as Secretary

Unit directly in requirement of procurement

Financial Unit of the MDA

PRS Department of MDA

Technical personnel of MDA with expertise in the

subject matter for each particular procurement.

Legal Unit of the procuring entity




16/32

16

All public procurement shall be conducted: By open competitive bidding

In Transparent, timely, equitable for ensuringaccountability

With all bidders

Possessing legal capacity

Have fulfilled all its obligations to pay taxes, pension andsocial security

Not in receivership, bankrupt

Criteria stipulated solicitation document forevaluation shall not be changed

STRATEGY TO ENFORCE TRANSPARENCY AND

ACCOUNTABILITY section 16


17/32

17

Advertisement for solicitation of bids in NationalNewspapers/Federal Tenders Journal

Observation of everyprocurement process byTWO credible personsa relevant private sector

professional such as NIQS, NSE and non-governmental anti-corruption organization.

Transparent Evaluation Process

Approval by the authority before award.

DEBRIEF the bid losers on request!

STRATEGY TO ENFORCE TRANSPARENCY AND

ACCOUNTABILITY


18/32

18

STRATEGY : SUBMISSION OF BIDS

section 27

All bids shall be deposited in secured tamper-

proof bid box.

All procuring entities shall issue receipts

showing the date and time the bid was

delivered.

Any bid received after the deadline for the

submission shall not be opened and must be

returned to the supplier or contractor

STRATEGY OPENING OF BIDS


19/32

19

STRATEGY: OPENING OF BIDS

section 30

Bids must be opened in public with bidders inattendance and any interested members of

the public.

Bidders must be permitted to examineenvelopes to ensure bids have not been

tampered with.

Bids must be opened immediately followingthe deadline stipulated for submission


20/32

20

Register of names & addresses of all thosepresent at the bid opening indicating the

organization they represent

Call to the hearing of all present and addressof each bidder, the total amount of each bid

and bid currency.

STRATEGY: OPENING OF BIDS (Contd)


21/32

21

STRATEGY: BID EVALUATION section

31 &32 Bid Evaluation will generally be preceded by

examination of bids to ensure that the

minimum eligibility requirements stipulated in

the bidding documents are met, that the bid isresponsive and dulyendorsed.


22/32

22

PURPOSE OF EVALUATION

To determine and select the lowest evaluated

responsive bid.

No other criteria shall be used except as

stipulated in the solicitation documents.

Prompt notice shall be given to the contractor

of any arithmetic errors that are discovered

during the examination of tenders


23/32

23

PURPOSE OF EVALUATION

After Opening of Bids, information relating to

examination, clarification and evaluation of

bids and recommendation, concerning award

shall not be disclosed to bidders or personsnot officially concerned with the evaluation

process until the successful bidder is notified

of the award.


24/32

24

No funds shall be disbursed from theTreasury or Federation Account or any

bank of any Procuring Entity for any

procurement unless the cheques,payments or other form of request for

payment is accompanied by a

certificate of No Objection to anaward of contract duly issued by the

Bureau.

STRATEGY: PAYMENT TO CONTRACTORS


25/32

25

On provision of UNCONDITIONALBank Guarantee or Insurance Bond

10% Performance Bond to be

provided by successful bidders.

STRATEGY: PAYMENT TO CONTRACTORS

Enforcing Strateg


26/32

26

The purpose and objectives of the audit are:- Verification of procurement and contracting

processes followed;

Verification of technical and, physicalcompliance and price competitiveness ofcontracts; and

Review of contract administration and

management.

The procurement audit focuses oncontractimplementation

Enforcing Strategy:

PROCUREMENT AUDIT


27/32

27

Bid Riggingre-arrangement ofoffers where winners have been

predetermined

Collusion

Altering procurement documents

Splitting of contracts

Using fake documents like TCC, etc.

Some OFFENCES (section 58)

STRATEGY PENALTY FOR VIOLATORS


28/32

28

Sanctions

May recommend for: Suspension of officers concerned.

Replacement of Head of Procurement.

Discipline the Accounting Officer

Temporary transfer of procuring function of theentity to a Third Party .

Nullify the whole or any part of the procurementprocess.

STRATEGY: PENALTY FOR VIOLATORS

SECTION 58



29/32

29

Natural Persons

Jail term for directors of 5 Calendar years but

not more than 10 years without option of fine.

For officers of the Bureau, MDAs

Not less than 5 Calendar years.

Summary Dismissal from Government Service,


SECTION 58



30/32

30

For Corporate Bodies Debarment from all public procurement for a

period of not less than 5 Calendar years; plus

Fine equivalent to 25% of the value of theprocurement.

Directors of the company as listed in CAC shall

be liable to a jail term of not less than 3

Calendar years but not exceeding 5 yearswithout option of fine.


SECTION 58


31/32

31

The Public Procurement Act 2007 providesthe legal and institutional framework for the

enthronement of Transparency,

Accountability, Value for Money and

Efficiency in the procurement of building and

construction projects within the Federal

Ministries Departments and Agencies

PPA 2007 is a tool to enforcing Transparency

and Accountability in Building and

Construction Projects.

CONCLUSION


32/32

32

Thank You!

Documents

Public Procurement Law Tranparency and Accountability