Public Procurementin The Rep. of Maldives

IntroductionTender Evaluation Section

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’

Public Sector Procurement

What is special about Public Procurement?

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

Government Responsibilities for

Procurement

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Chapter 8 (and certain other clauses) on procurement to be repealed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

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

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

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

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

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

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

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

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

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

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

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

New initiative for Modernizing the Public Procurement in Maldives (Continued…) The PFM Strengthening Project (2014~2019) 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;

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.

Role of the Auditor general’s 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