The Tribune

By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

ALL government contract awards will be published online and in newspapers when a Public Procurement Bill being debated in the House of Assembly is passed and comes into force, Prime Minister Dr Hubert Minnis said yesterday.

The bill is among a compendium of finance bills that Dr Minnis said will boost transparency and accountability in government operations.

Public information about contracts “will state what the contract is for, who it was awarded to and the dollar value of the contract,” Dr Minnis said.

A report will also be published at the end of the fiscal year that will compile the information into a single document.

“This will help to address all the whispering, the rumours, and the political mischief that has gone on for decades in our country,” Dr Minnis added. “The citizens of The Bahamas will be able to see who is getting government contracts, for what purpose and in what amounts.”

Dr Minnis said under the bill, suppliers and contractors will be able to review the actions of procuring entities.

“In this vein, and for the first time, the bill provides for the establishment of a Procurement Review Tribunal, which will adjudicate disputes and complaints relating to government contracts, in accordance with the process established in the bill,” he said.

“Thus, if a bidder believes that he or she was wronged during the bid process, they now, for the first time, have a formal recourse. In other arrangements, the bill sets out the ground and procedure for the suspension and debarment of a bidder; provides for the proper keeping of records of the procurement and the management of the procurement contract; and provides for the Procurement Act to be reviewed every five years by a committee of both houses of Parliament appointed by the prime minister in consultation with the leader of the opposition.”

The government’s procurement process has long been criticised both locally and internationally.

In its 2020 investment climate statement on The Bahamas, the US State Department said this country lacks modern procurement legislation and that companies have complained that its tender process for public contracts is inconsistent.

“US firms have identified corruption as an obstacle to FDI and have reported perceived corruption in government procurement and in the FDI approvals process,” the report said.

The procurement bill maintains financial thresholds which will determine which entities are responsible for contract awards. Procurement units will be responsible for decisions involving contracts that do not exceed $250,000.

Internal tender committees will be responsible for contracts worth more than $50,000 but less than $250,000, subject to approval from the minister responsible for the procuring entity. The tender’s committee will make recommendations to the tenders board with respect to contracts valued above $250,000.

A newly established Public Procurement Board will award contracts valued above $250,000 but below $1m. The prime minister will appoint the chairperson of the board.

For contracts worth more than $1m, the board will be required to make a recommendation to Cabinet.

“Where the recommendation is not approved by Cabinet, the Cabinet may refer the matter back to the board for further advice or direct that a new procurement exercise is conducted,” Dr Minnis said.

“The Public Procurement Bill we have before us today is designed to promote economy and efficiency in the use of public funds, to conduct procurement in a fair and transparent manner and to support an increase in the number of small Bahamian-owned business involved in the public procurement space,” he added.

Under the bill, a Public Procurement Department will be established that will be headed by a chief procurement officer. 

Dr Minnis said the “functions of the PPD will be to provide all of the requisite procurement policies and standards to achieve effective implementation and administrative oversight of the full public procurement process and related operations.”

During her contribution to the debate, Englerston MP Glenys Hanna Martin hit out at the governing party for moving to pass the bill near the end of its term, noting that many contracts have already been issued without having to comply with the new rules. Changing the procurement system was among Dr Minnis’ promises in the lead-up to the last general election. 

Yesterday, Dr Minnis also discussed the Public Finance Management Bill, a “weighty” bill that will replace the Financial Administration and Audit Act.

The difference between the two pieces of legislation, he said, is that the PFM will allow for a shift “from the present day emphasis on administrative requirements to one which underscores accountability and responsible management for results or outputs.”

“Under this modernised legislative framework, public sector managers will be required to focus on strategic priorities and will be held accountable for their performance. Like any progressive enterprise, public sector agencies will have to set goals and objectives, and the key performance indicators to measure the success of their operations and programmes. And they will have to public these for all to see,” he said.

Dr Minnis said under the bill, sanctions for “unsound management” and “criminal penalties for deliberate malfeasance in respect of public funds” will be established.

“We cannot have accountability if there are not consequences for abuse of the public purse. This failure to articulate specific sanctions has been a glaring weakness of our existing framework. We are now fixing it,” he said.