Public Procurement in The Rep. of Maldives

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Public Procurementin The Rep. of Maldives
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Introduction

• Tender Evaluation Section

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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

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Public Sector Procurement
What is special about Public Procurement?

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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

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Government Responsibilities for Procurement
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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  procurement to be repealed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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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New initiative for Modernizing the Public
Procurement in Maldives (Continued)

• The PFM Strengthening Project (20142019)
  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

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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.

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Role of the Auditor generals 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