Windhoek
The long-awaited Public Procurement Bill, which the legislature referred for more public consultation in 2013, made it back into Parliament yesterday.
The revised Bill seeks to open up participation in the government’s procurement system to small and medium enterprises and previously disadvantaged persons, as well as give preference to women and youth.
Lawmakers are expected to start debating the Bill next week.
Minister of Finance Calle Schlettwein tabled the reviewed version of the Bill yesterday before lawmakers, saying the new document provides a fresh perspective on the way public procurement is currently handled. The Bill, once passed as law, will ultimately reform public procurement from a process function to a critical tool that will assist government in attaining its strategic goals.
“In order to ensure that the public procurement system is transparent and efficient, the law must establish appropriate management structures, must offer legal certainty about the entire procurement process and have the necessary mechanisms to resolve complaints and disputes,
as well as prevent abuse and corruption during the acquisition process,” said Schlettwein.
Currently, government’s acquisition of goods, works and services is regulated by the Tender Board of Namibia Act of 1996, which many have described as insufficient to allow the state to derive full benefits from the massive amounts of money it spends.
The revised Bill is based on the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Public Procurement, which is used as a world-wide reference, particularly by developing countries as it allows governments to ensure that their procurement processes meet international best practices.
Unlike the Tender Board of Namibia Act, the new law would be applicable to all public entities, including state-owned enterprises, with a view to harmonise procurement procedures in all government entities and also to better leverage the strategic importance of public procurement to achieve the state’s socio-economic objectives.
Minister of Justice Dr Albert Kawana said he was happy that the legislation would be extended to state-owned enterprises as currently there is insufficient control of those entities.
“Resources do not belong to individuals but belong to the nation. In this regard I hope the Bill will enable resources to trickle down to the masses,” said Kawana.
Deputy Minister of Information and Communication Technology, Stanley Simataa, encouraged the application of monitoring mechanisms for the new Bill and warned that the new legislation would not yield the desired results if not properly monitored.
Simataa also bemoaned poor quality products and services. “Government should not negotiate on timeous delivery and on the quality of products,” said Simataa, adding that the State should consider blacklisting companies that do not live up to the required standards.
The Bill would enable government, as the single biggest buyer of goods, works and services in the market, to enforce the protection of workers and the environment, as well as offer empowerment and growth incentives to different categories of bidders.
The Bill also contains essential provisions to ensure that the objectives of transparency, value for money, accountability, fair competition and equal treatment of all bidders are achieved. Furthermore, it provides for the establishment of an appropriate management structure and sets out the provisions for proper conduct during the procurement process.
Under the new law, the institutional structure will consist of a Procurement Policy Unit, a Central Procurement Board and an ad hoc Review Panel. The Procurement Policy Unit will serve as the technical arm of the finance minister to issue guidelines, instructions and standard forms; and deal with the capacity building of officials and bidders, provision of advice on procedures, review of the law, regulations and procedures to adapt to changing circumstances and compliance and performance monitoring.
The Central Procurement Board will replace the current Tender Board with a view to achieve a higher level of efficiency. The Review Panel will sit as and when required and will be constituted by experts in specialised fields.
“The Bill gives government wider control and the ability to better assess the impact of public procurement on the economy. Moreover, it will improve governance and enhance the image of Namibia as a preferential trading partner and ultimately as a credible investment destination,” said Schlettwein.