Africa's Public Procurement & Entrepreneurship Research Initiative – APPERI



Nigeria: FG saves N420bn in 15 months from new procurement law

Nigerian Tribune

By  Odidison Omankhanlen – Lagos

April 22, 2013

The Director-General, Bureau of Public Procurement (BPP), Mr Emeka Eze, has said over N420 billion had been saved for Federal Government in the last 15 months through the activities of the bureau on contract valuation.

 Ezeh, who was speaking at the opening of a retreat for Chief Executive Officers in Federal Government’s Ministries, Departments and Agencies (MDAs) organised by the Bureau, in Lagos, at the weekend, explained that the said fund was recovered after valuation of contracts that were submitted by contractors, stating that the reduction in contract sum further emphasized the core value of BPP as the drive of public procurement and prudence in public expenditure.

 He assured that the bureau would continue to ensure that there was transparency in the bidding process for contracts in the country, stressing that all competent contractors would be given a level playing field to demonstrate their capacity and pass through open competitive bidding process enshrined in the Act.

He explained that the BPP would continue to work hard to ensure the cost of doing business in the country was reduced through the elimination of multiple registration and pre- qualification as well as tendering process that should be increased to give chance for equal competence and capabilities.

“It is important to highlight the Bureau’s effort in promoting transparency, accountability, efficiency and fairness in public sector procurement and the Transformation Agenda of the present administration. The default procurement method remains competitive Tendering, as it is, is the surest guarantee for quality and transparency which PPA 2007 envisages. The direct procurement and selective tendering are the exception rather than the norms,” he said.

On the relevance of the retreat, the BPP boss said it was to identify the deficiencies in the 2012 budget implementation process, so that this year’s budget could be more successful, adding that the participants would also have opportunity to know the procurement process.

He noted that through similar retreats for other public officers, they were now beginning to see public funds as monies to be spent with care, and with high sense of responsibility, adding that these gains were a resultant improved budget implementation and performance in terms of project delivery.

“The benefits of the programme cannot be over emphasized because as it develops, the cost of doing business in the country would reduce through the elimination of multiple registration and pre-qualifications in the various MDAs. The quality of prequalification and tendering process should increase at the end of the day coupled with the better grouping of contractors, consultants and service providers of equal competence and capabilities,” he stated.

Ezeh noted that with the classification of contractors and consultants by the bureau, there will be increased discipline in the Federal procurement process, noting that only capable and competent contractors and service providers would become identifiable and considered for deserving jobs.

He was optimistic that the bureau was working assiduously to consolidate on- going collaboration with the World Bank, the United Nations Development Programme (UNDP), the Washington based International Law Institute (ILI) and the Federal University of Technology (FUTO), Owerri, to establish a public procurement research centre.

Also speaking at the event, Chairman, House of Representatives Committee on Public Petitions, Hon Uzor Azubuike, explained that efficient public procurement is vital to the development of the country as it regulates the developmental capital component of the annual budget.

“Contracts should not be awarded at inflated prices. We should stop giving specific contractors more contracts than they can handle.

Contractors that have records of abandoning contracts should be blacklisted. The BPP should not stop at procurement, but go ahead to monitor contracts awarded to ensure Nigerians get value for money,” he advised.

Kenya: Maintenance of roads to cost Sh9 billion

The Star

February 28, 2012

The Kenya National Highways Authority will spend Sh9 billion for routine maintenance of major roads this financial year. Of this, 80 per cent of the contracts have already been awarded, in a bid to ensure that Kenya’s highways are maintained to international standards, said KeNHA director general Meshack Kidenda. “We have distributed the road maintenance budget to all parts of the country. We will no longer tolerate shoddy road works,” Kidenda said in a statement.

At the same time, Kidenda said the authority has complied with all procurement guidelines as set out by the Public Procurement and Oversight Authority. “Apart from the PPOA, we are under constant audit from the ADB (Africa Development Bank), the World Bank and the European Union. We are happy to report that we are in full compliance to these guidelines,” he said.

The Director General said KeNHA has awarded more than 1,500 major tenders since inception, and none has been overturned by PPOA over procedural issues. “Only four contractors have appealed against tender awards from this authority. And in the four cases, we have gone ahead to win the appeals, a move that vindicates our tender committees,” said Kidenda.

He said KeNHA is benchmarking itself with its counterparts in the developed world, adding that the authority is on the path to becoming a centre of excellence in public procurement. “We want to perfect the system through the introduction of best procurement practices. We are constantly in touch with PPOA to ensure that this milestone is achieved in a year’s time,” he said. On delays in paying contractor certificates, Kidenda said road contractors are paid within 48 hours once the money has been released from the Treasury and Kenya Roads Board.

However, he said only certificates that are certified by auditors and project engineers are paid within that period. “We have devised a check-back system to ensure that all the procurement processes are transparent. At no time do we compromise on this,” he said. However, Kidenda said there is need to continually review the PPOA Act, in line with rising inflation trends and other developments in the country. He said the tender committee threshold of Sh500,000 was on the lower side, especially for road contractors.

Meanwhile, KeNHA has appealed to the public to stop vandalising road signs and bridges, adding that the move is a major setback to road safety. Kidenda said vandalism of road signs has increased in the last three months and there is need to stop the vice. A case in point is on Mombasa Road, near General Motors, where vandals have looted the safety grills, leaving motorists exposed.

Public Procurement Act: FEC Directs Investigation, Prosecution of Company, Public Servants


By Ahamefula Ogbu

November 16, 2011

The Federal Executive Council Presided over by President Goodluck Jonathan Wednesday directed the Economic and Financial Crimes Commission (EFCC) to investigate and prosecute a contractor who allegedly used false documents to get a 1.6 kilometre road at Apapa for N2.2 billion.

The said company is to risk a five-year ban and fine of 25 per cent of the contract sum in accordance with the provisions of the Public Procurement Act from handling jobs in the country if found guilty of the said allegation of fake documentation or forgery while every officer involved would be liable on conviction to three years imprisonment.

Director General of the Bureau of Public Enterprises, Engineer Emeka Eze,  who came to brief State House Correspondents with the Minister of Information, Mr. Labaran Maku, Minister of Education,  Raqquyyat Rufai, Minister of Agriculture, Mr. Akinwunmi Adesina, Minister of Transport, Senator Idris Umar and Minister of State for Finance, Yerima Ngama, said he does not want to disclose the name of the company so that it would not run away and evade justice or interfere with investigations before prosecution, adding that they discovered the case during documentation.

He said that the amount should not be the issue as people may consider it mall but said it marks the resolve to enforce the law which will also not spare anyone or company found to have underhand dealings in public procurement…Read more.

Nigeria: Jonathan orders screening of contractors


By Rotimi Ajayi

October 20, 2011

In a bid to reduce corruption and non-performing contracts in the Federal Civil Service, President Goodluck Jonathan  has ordered comprehensive screening of contractors and service providers for the Federal Government.

The directive was said to have been issued following a review meeting with some members of the National Economic Management Team after the recent retreat with members of the Organized Private Sectors where it was agreed that there was need to put sanity to awards of Federal Government contracts and jobs.

An indication towards the implementation of the Presidential directive was contained in a statement issued yesterday in Abuja by the Bureau of Public Procurement (BPP).

The statement issued by the Director General of the Bureau, Emeka Ezeh, pointed out that arrangements had been concluded to commence registration, categorisation and classification of all Federal Government contractors, consultants and service providers.

The Director-General stated that the project would revolutionise government procurement process and encourage more transparency and efficiency in the procurement process.

According to him, the objective of the database is to register, classify and categorize contractors, consultants and service providers as a platform of verification by Ministries, Departments and Agencies (MDAs), other entities, and interested organisations. It will also ensure that contractors, consultants and service providers of equal competencies and capabilities bid for specific jobs.

He added that the project would create an electronic interface with stakeholders and deepen the capacities of Ministries, Departments and Agencies (MDAs) and their leaderships to attain full compliance with the provisions of the Act in order to positively transform the economy of Nigeria.

He said, “the usefulness of the Act in Government’s obvious responsibilities, particularly in implementing strategic and sustainable plans to develop infrastructural facilities cannot be overemphasized. This is not just to fulfil a basis responsibility of government but also in order to attain the proposed Vision 20:2020.

“The benefits of the procurement reform process importantly correlate with the present administration’s transformation agenda.  This agenda, as articulated by government seeks to vigorously implement the initiatives or programmes that will enhance the Administration’s strategic plans for Economic Growth.

“The ultimate objective of the Bureau is to ensure that all Federal procurements are strictly done in compliance with the provisions of the Public Procurement Act, 2007, and that all ongoing projects are in line with sectoral targets and priorities. It is when viable ongoing projects are adequately funded, completed and commissioned that the populace will be the better for it.”

Nigeria: BPP saves N316bn from inflated contracts

Abuja City Gate
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October 17, 2011

By EMMA UJAH Abuja Bureau Chief

ABUJA – Bureau of Public Procurement, BPP, has saved N316 billion from inflated contracts between January last year and last month, its Director-General , Engr, Emeka Eze, said, weekend.

In an interactive session with newsmen, in Abuja, he said: “Reviewing the many projects from the MDAs (Ministries, Agencies and Departments) ahead of possible award of Certificate of ‘No Objection’, we have often made significant reductions from the original proposals from the MDAs.

”In January 2010 to March 2011, financial year, for instance, N216 billion was saved from all projects reviewed in that fiscal year.  Between March 2011 and last September, close to N100 billion was also saved from reviews, while more of such savings will be made as this financial year progresses”.

He  said five per cent of elites were trying to frustrate the government procurement reform and that the rest mass of Nigerians must not allow that to happen.

“The elite is less than 5 per cent of the total population but controls 95 per cent of the nation’s resources”, he said, adding, “we are determined to making the public procurement reform work, in spite of the opposition by corrupt people.

He said some MDAs deliberately delay the commencement of procurement processes till the end of the year in other to stampede the system but vowed that his team would not allow them.

“As the year is about to end now, what you will hear is that BPP is delaying the implementation of the budget.  You will see MDAs advertising for contracts even in October.  It means they don’t want to implement such projects this year because we will ensure they follow due process.

The question is what have they being doing since the beginning of the year that they are now just advertising from jobs at this time.  We know their game.  It won’t work,” he vowed.

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