Govt. involvement in no-objection to contracts will continue - Cabinet Secretary

Govt. involvement in no-objection to contracts will continue – Cabinet Secretary

Oct 11, 2013 News

Cabinet Secretary, Dr. Roger Luncheon indicated Government’s involvement in the procurement of goods and services will continue.
Yesterday, at his weekly post-Cabinet press briefing Dr. Luncheon said Government has not given up offering its no-objections to the award of contracts, even though he had no update to announce.
This role of the administration has faced severe criticisms from the Opposition Parties in the National Assembly, independent Financial Analysts, and members of civil society. In fact, Anand Goolsarran, former Auditor General said, “After 12 years, the Commissioners (of the Public Procurement Commission) are yet to be appointed, leaving observers to the inescapable conclusion that Cabinet does not want to relinquish its role in public procurement. That apart, there are credible allegations that contracts are not being awarded in a fair, competitive and transparent manner to ensure the best value for money is achieved.”
There are allegations that contractors are pressured by corrupt officials into giving kickbacks to secure lucrative contracts.
According to Goolsarran, the World Bank has estimated that as much as 20 per cent of financial resources are lost in some developing countries, especially with regard to infrastructural works as a result of inefficiency, substandard work, inflated contracts and kickbacks.
“In the Guyana context, I suspect that the figure of 20 per cent is a fair assessment of what is taking place here,” he stated.
Goolsarran said while Guyana awaits the appointment of the Commissioners, the public procurement system has a significant gap in the sense that there is no oversight of the operations of the National Procurement and Tender Administration Board (NPTAB).
He explained that Cabinet cannot exercise that oversight responsibility since it only offers no objection to contracts in excess of $15M and can only return a contract to the NPTAB for further review on procedural grounds.
With the establishment of the Public Procurement Commission, the role of Cabinet will be phased out. However, Government wants to amend the law to preserve Cabinet’s current role.
According to Dr. Luncheon, “Government insists in the mature dispensation where procurement is concerned, that Cabinet must have a role”.
“A role that we are willing to concede does not extend beyond offering our no-objection it was there and still is. It’s a minimum position for those in the administration collectively accountable and responsible for the affairs of the state to have an input in the awards of contracts,” he said.

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Govt. involvement in no-objection to contracts will continue – Cabinet Secretary

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