Towards an Effective and Efficient Public Procurement System in Sierra Leone The Procurement Reform

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Towards an Effective and Efficient Public
Procurement System in Sierra Leone The
Procurement Reform Executive Secretariat
State House, Freetown
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THE SIERRA LEONE DEVELOPMENT PARTNERSHIP COMMITTEE

• PUBLIC PROCUREMENT REFORM PROGRAMME
• A presentation by
• The Procurement Reform Executive Secretariat
• Office of the Vice President

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Approvals by Cabinet

• Cabinet on 2nd June 2004
• Approved New Interim Rules Regulations
• Rules Regulations operational for 12 months
• Approved the establishment of the ICPU
• Approved the establishment of the PPB
• Operations of ICPU PPB be monitored by ES
• The PRSC to appoint members of the PPB
• Comprehensive Budget for Reform Programme be
  prepared by ES and approved by the PRSC

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Objectives of Procurement Reform

• Value for Money
• Transparency
• Accountability
• Fairness
• Efficiency
• Development of Local Business
• Achievement of National Development Objectives

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The Four Pillars of the Procurement Reform
Programme

• Legal and Regulatory Framework
• Institutional Set-up
• Procurement Capacity
• Procurement Process

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Strategies for achievement of reform objectives

• Analysis of GOSL procurement spend
• Development and implementation of Legal and
  Regulatory framework
• National Sensitization and Training
• Long-term Capacity Building

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Achievements of the Reform Programme

• Setting up Procurement Reform Steering Committee
  by GOSL March 2003
• Setting up Executive Secretariat to support
  Steering Committee November 2003
• Sensitize and Train Stakeholders in Public and
  Private Sectors November 2003
• Approve Interim Rules and Regulations to govern
  Public Procurement March 2004
• Commence the drafting of Comprehensive
  Procurement Law June 2004

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The Interim Rules and Regulations

• The Interim Rules and Regulations as an
• outcome of Consultative Processes
• Spend Analysis (SA) Workshop Dec 4th 2003
• SA follow-up Workshop Dec 16th 2003
• Policy Analysis (PA) Workshop Jan 21st 2004
• Committee drafting Rules Regs Feb 1st 2004
• With Core Technical Working Group comprising
• - OP, MOF, MHS, MOD, UNDP, IAPSO,
  WB-Ghana.

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The Interim Rules and Regulations

• Approval of Interim Rules Regulations by Reform
  Steering Committee March 1st 2004 -
  Citation of DFID, EU, UNDP WP
• Approval of Interim Rules Regulations by
  Cabinet June 2nd 2004
• - Citation of MHS, MODEP, MOD, MFA NPAC

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What is entailed in the Rules and Regulations ?

• Definition Structure of Procuring Entities
• Establishing ICPU and PPB to replace old CTB
• Mandatory Annual Procurement Planning
• Decentralizing procurement to Procuring Entities
• Revised Threshold of Le 25 Million
• The Three Procurement Procedures
• The Certification of Procuring Entities
• Complaints and Compliance
• Penalties and Sanctions

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Implementation of the Rules and Regulations

• Staffing the Executive Secretariat ICPU
• Appointing Members of Procurement Board
• Sensitizing all procuring entities on the
  requirements of the Rules and Regulations
• Developing assessment tools for all procuring
  entities
• Building capacity in procuring entities
• Evaluation and Certification of entities
• Oversight and Monitoring of procurement activities

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The Process of Certification

• Certification, neither magic nor automatic !!
• Certification comes in stages
• Strict adherence to a process
• Checks and balances through implementation of
  good internal controls
• Rigorous systematic implementation of Rules
  Regulations
• Proper Oversight Monitoring following
  whole-life concept
• Continuous assessment of procuring entities
• Certification not impossible, it is doable !!
• Donor interventions PIUs e.g. DFID in MOD WB
  in MEST EU WB in MHS, will enable rapid
  implementation of Rules Regulations
• Technical Assistance and Mentoring from
  Procurement Specialist and peer assistance will
  help immensely

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Structure of Reform Organization

• Reform Organization Level

Reform Steering Committee
Executive Secretariat
Public Procurement Board (PPB)
Interim Central Procurement Unit (ICPU)
Procuring Entity Level
Procuring Unit Committee (Procuring Entity)
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Lessons Learned from past practices

• Poor Legal and Regulatory Framework
• Procurement not considered a profession
• Absence of trained personnel in public
  procurement
• Absence of capacity in procuring entities
• CTB highly centralized, yet the bulk of
  procurement decentralized to entities
• CTB operations undertaken on part-time basis
• Procurement activities characterized by perceived
  corruption, inefficiency fraud
• Absence of Oversight and Monitoring mechanisms

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Expected Benefits of the Rules and Regulations

• Uniform and codified set of Rules Regulations
  to govern public procurement in all entities
• Improved transparency, accountability, oversight
  monitoring through procurement planning
• Decentralization of procurement to entities
  resulting in greater efficiency, development of
  capacity and professionalism
• Significant reduction in lead times for
  processing of procurement cases
• Improved resource allocation and fiscal
  discipline
• Encouragement of innovative ideas to achieve
  value for money
• Sound Foundation and Experience for the New Law

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Issues and Challenges in Procurement Reform

• The need to mainstream the policy of value for
  money in the activities of all entities
• Enforcing sanctions, as well as compliance to
  processes outlined in the Rules and Regulations
• Building and sustaining capacity in procuring
  entities
• Oversight Monitoring based on whole-life
  concept
• Collaboration and Information sharing with NRA
  and Business Registry a total systems approach
• Sourcing of funds to support comprehensive reform

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Next steps in long-term Procurement Reform

• Development of a Comprehensive Legal Framework
  based on the UNCITRAL Procurement Model Law
• Capacity building strategy for long-term
  development of public procurement officials
• Continued Donor Support for long-term procurement
  reform

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AT Schedule for Drafting of Law

• Inception Familiarization
• 7 21, June, 2004
• Consultation, Review Design
• 22 June 12 July, 2004
• Developing Drafting
• 13 July 9 August, 2004
• Review of Draft Law
• 10 23 August, 2004
• Consultation Completion
• 24 August - 6 September, 2004
• Presentation to Reform Steering Committee
• 20 September, 2004