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be repealed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