Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 151 Sat. October 23, 2004  
   
Front Page


Corruption check in public procurement
2 outsiders in 5-member body to scrutinise tenders, purchase proposals


A tender evaluation committee (TEC) will scrutinise tenders or proposals for public procurement from now on and two outsiders will sit on the five-member committee of the ministries concerned to ensure transparency.

The members from outside can be technical, commercial, financial and legal experts from other ministries, agencies, universities or reputable professional bodies.

"The outsiders are going to be drafted onto the committees for the first time to cut corruption and bring transparency to public purchase deals," a high official of the planning ministry told The Daily Star on condition of anonymity.

Public purchases involving more than Tk 10 lakh in urban areas and beyond Tk 5 lakh in rural areas have to be evaluated by the TEC. A timeframe has also been set for completion of the entire approval process to discourage delays, the official added.

Any procurement is to be processed and approved in a maximum of four to eleven weeks and the winning bidder has to be notified about the work or supply order within the time.

The planning ministry issued a notification last week on Public Procurement Processing and Approval Procedures (PPPAP), which has been put into immediate effect, following presidential orders.

The approving authorities will fill out a checklist for procurement processing and approval procedure for goods or work and report quarterly to the Central Procurement Technical Unit (CPTU).

A public procurement act is being formulated under which compliance with the Public Procurement Regulations, 2003 and the notification will be monitored. A code of conduct will also be put in place for government officials and consultants, prescribing punishment in case of breach.

Officials at the planning ministry said the act would be placed at the cabinet by February and the code of conduct formulated by December.

The Finance Division earlier issued a circular delegating financial powers to certain officials. According to the circular, purchases worth over Tk 25 crore have to be approved by the Cabinet Committee on Government Purchase. However, the ministry concerned can approve purchase up to Tk 25 crore.

In case of development expenditure, departmental heads can approve orders for public works involving not more than Tk 7 crore, project directors can approve up to Tk 2 to 4 crore.

For purchase and supply of goods, departmental heads can approve up to Tk 5 crore and project directors up to Tk 2 crore.

Departmental heads can approve orders for public works up to Tk 1 crore, divisional officials Tk 15 lakh, district officials up to Tk 7 lakh and upazila officials Tk 3 lakh in case of revenue expenditure.

Departmental heads can approve orders for goods up to Tk 10 lakh, divisional officials Tk 3 lakh, district officials up to Tk 2 lakh and upazila officials Tk 1 lakh.

In case of small autonomous bodies, the boards can approve purchase involving up to Tk 10 crore in development and revenue expenditure and for large bodies, the boards can approve up to Tk 12 crore.

Chief executives and other officials of public corporations can also approve purchase deals. They have also been given the power to directly make purchase worth Tk 15,000 to 50,000.

All purchases have to be made in accordance with the Public Procurement Regulations, 2003 and the notification, and the TEC has to evaluate the purchase proposals or tenders in two weeks.

Proposals and tenders have to be approved in four to seven weeks and work order issued in a week if the approving authority is the project director or the relevant minister or ministry.

The Cabinet Committee on Government Purchase will have to approve purchase proposals in a maximum of eight to ten weeks in case of normal cases and in eight to eleven weeks in case of complicated cases.