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Procurement & Fiduciary services Department Development Bank African The 3 Anglophone countries have developed and enacted laws following UNCITRAL model law Francophone countries have adopted public procurement code by reference to French legal framework and IFI models There has been crucial role played by Regional Organizations – COMESA and WAEMU in developing and adopting regional directives and models Legislative and Regulatory Framework
Citation preview
Procurement & Fiduciary services
Department
Development BankAfricanThe
1
THE HIGH LEVEL FORUM ON PUBLIC PROCUREMENT REFORMS IN
AFRICAProgress, Challenges, and Lessons Learnt
from Reforming Public Procurement Systems in Africa
Vinay SharmaProcurement and Fiduciary Services
Department
Procurement & Fiduciary services
Department
Development BankAfricanThe
2
Since the end of the 1980s, most African Countries have embarked on reforming public procurement systems:•As part of the global reform of pubic sector financial management; and•Also from need to improve governance and ensure delivery of development results
Background
Procurement & Fiduciary services
Department
Development BankAfricanThe
3
Anglophone countries have developed and enacted laws following UNCITRAL model law
Francophone countries have adopted public procurement code by reference to French legal framework and IFI models
There has been crucial role played by Regional Organizations – COMESA and WAEMU in developing and adopting regional directives and models
Legislative and Regulatory Framework
Procurement & Fiduciary services
Department
Development BankAfricanThe
4
However Government’s efforts at compliance with internationally accepted practices have been hindered by: Loopholes Exclusions from the scope of the laws Deficiencies in implementation Irregular practices
Procurement as a vehicle for regional integration has also been hindered by discrepancies between local economies
Legislative and Regulatory Framework
Procurement & Fiduciary services
Department
Development BankAfricanThe
5
No linkages between procurement management and PFM Systems, except for few countries
Limited use of E-procurement technologiesAnnual procurement planning even when
imposed by legislation, is not properly executed leading to delays in payment and weakening participation of private sector in the reform process
Institutional Framework and Management Capacity
Procurement & Fiduciary services
Department
Development BankAfricanThe
6
At the Institutional Level:Principle of separation of functions now
generally recognized – but framework mostly lacks clarity and independence
Establishment of institutions in charge of monitoring and regulating procurement has been hampered by conflict of interests, control by the executive branch and poor human and financial capacity
Institutional Framework and Management Capacity
Procurement & Fiduciary services
Department
Development BankAfricanThe
7
At the Institutional Level:The absence of capacity building strategies has
led to development of unrealistic processes of decentralization
The procurement function has also suffered from Lack of status, Lack of motivation; and High levels of rotation of procurement specialists
have affected the stability of the system.
Institutional Framework and Management Capacity
Procurement & Fiduciary services
Department
Development BankAfricanThe
8
Adhesion of the private sector to the reform process has generally been reduced due to many factors: The absence of a proper legal framework favoring
the development of SMEs in public bids Various obstacles such as access to credit;
delayed payments Unfair competition from public companies,
international majors and even public officials
Procurement Operations and Market Practices
Procurement & Fiduciary services
Department
Development BankAfricanThe
9
Review shows that: The public procurement control function has not been
properly targeted leading to poor location of “watchdogs”
Review and appeal mechanisms suffer from a lack of independence and the fear of private sector to launch complaints
No or limited legal framework for civil society to intervene at the various levels of the procurement chain or in the management of contracts
Poor record of proceedings and sanctions Proposed responses for detecting fraud and corruption
totally inadequate to compact the level of corruption reached
Integrity and Transparence
Procurement & Fiduciary services
Department
Development BankAfricanThe
10
The limited results obtained through reform have been a consequence of lack of political will
Reform has also been hampered by the development of corruption which has reduced the impact of any efforts
Insufficient recognition of the links with other components of the reform programme such as PFM and Audit which prevented the prioritization of the reform programme to address deficiencies leading into question the assessment methodologies and the pertinence of their indicators
Integrity and Transparence
Procurement & Fiduciary services
Department
Development BankAfricanThe
11
The lessons learnt so far, point to the fact that:
1. The public procurement system should be analyzed from a more global perspective, taking into consideration the broader political and economical context of the reform – the reform process was probably too focused on legislative reforms
2. Serious mismanagement of public finances have impacted on public procurement as a tool for development, which has been reduced by: The impoverishment of the African continent The importance of domestic and international debts;
and The abuses in the exploitation of natural resources
Identification of Key Reform Issues
Procurement & Fiduciary services
Department
Development BankAfricanThe
12
The lessons learnt so far, point to the fact that:
3. The lack of success with public procurement has transmitted bad signals for the overall legitimacy of the procurement system;
4. The corruption factor is a systemic challenge; and
5. The capacities of the procurement system should have been one of the priorities of the reform process.
Identification of Key Reform Issues
Procurement & Fiduciary services
Department
Development BankAfricanThe
13
The new performance agenda should comprise:
The taking into consideration of interrelationships between all the components of the reform and country specificities
Integration of reforms within a more global an comprehensive framework linked to the new governance agenda
Incorporation of powerful management systems in which procurement, budget and finance are interconnected
Capacity building strategies used as a tool for sequencing of reforms
The Way Forward - A New Public Procurement Performance Agenda
Procurement & Fiduciary services
Department
Development BankAfricanThe
14
The new performance agenda should comprise:
Donor coordination and coordination between donors and government is key to the reform process
The control function should be considered as a production function
Specific tool – a mechanism for systematic project follow-up
The Way Forward - A New Public Procurement Performance Agenda