Follow Us on Google
Presidential Candidate of the Young Progressives Party (YPP), Architect Dr Peter Agada, has again blamed endemic poverty and underdevelopment on the failure to implement the Bureau of Public Procurement (BPP).
This, Agada pointed out, is due to government refusal to establish the National Council for Procurement under Section 2 of the Establishment Act 2007.
He said implementing these sections will scrutinise 90% of all projects that have gulped Nigeria’s resources over the years.
Dr. Agada, who spoke in an exclusive interview with Daily Sun, said the YPP government will save money by setting up the National Council for Procurement, a constitutional requirement that several administrations have neglected over the years.
Agada, who has blamed the procurement system in Nigeria since 1999 to date as the reason for the underdevelopment of Nigeria for 27 years, emphasized that 4 core objectives of the Act,
including economy and efficiency, value for money,
transparency, competition – level playing ground for all bidders, have been flagrantly neglected.
Architect Dr Peter Agada remarked that the YPP strategy would divide these projects into two, adding that one part would be handled by direct labour and the savings alone from the forensics of Projects can fund all the projects carried out in Nigeria’s Ward Intervention Initiative two or three times over.
“This idea is funding for Ward development projects; we intend to send funding of #40 million naira non-FAAC funds to every ward in Nigeria. Now, how are we going to get the funds? And I have said this over and over again: we are going to source funds from non-FAAC sources, and we have this detail in our manifestos. With non-FAAC sources, there will be a 13-man ward steering committee we will set up per ward, and we are going to go to every Ward with a ward development master plan, with a bank account that will be domiciled at the Central Bank of Nigeria (CBN). Again, this 13-man committee will manage the fund and the projects within the wards.
He revealed that in the Nigerian Constitution, there is an Act to establish the National Council on Public Procurement as the regulatory authority. responsible for monitoring and oversight of public procurement. c654
“The Act is divided into 13 parts consisting of 61 articles: 901c
Part I consists of the National Council on Public Procurement (Sec 1-2)
It establishes the Council
Membership includes the Minister of Finance as Chairman, Attorney-General, SGF, Head of Service, Economic Adviser to the President, 6 part-time members representing: Nigeria Institute of Purchasing and Supply Management, NBA, NACCIMA, Nigeria Society of Engineers, Civil Society, Media, and the DG of the Bureau as Secretary.
Part II of this consists of the Bureau of Public Procurement (Sec 3-13)
Section 5: functions to formulate policies, certify federal procurement before award subject to thresholds, publish details of major contracts in procurement journal
Section 6: gives the power to enforce monetary and prior review thresholds, issue Certificate of “No Objection. Whiel
Section 7: Director-General – appointed by President on recommendation of Council after competitive selection, must have 15 years professional qualification, 4 years tenure renewable once, can only be removed by President on basis of gross misconduct, financial impropriety, fraud, manifested incompetence proven by Council
Part III indicates that (Sec 15-16) applies to all procurement by the Federal Government and any entity where at least 35% funding is from the Federal Budget. Exception: defence/national security goods with the President’s approval.
He highlighted that other areas cover fundamental principles: prior procurement planning, prior budgetary appropriation, open competitive bidding as default
Procurement planning, methods, emergency procurement, services procurement,
disposal of public property.
According to the YPP Presidential Candidate, the document also deals with offences, indicating that any bidder who prepares procurement cannot bid for same, such liable to 5-10 years imprisonment and dismissal.
The YPP Presidential candidate further argued that the total money needed nationally for (8809 wards) is about 32 trillion, but 25T out of the 32 trillion will be raised via investment & FDI, which will be generated in tranches through foreign direct investment.
“We have those numbers. So if you are looking at it, then look at it very well, and you will see that our funding is coming from land title valuation, reduced food importation, reduced wastage importation, FG direct funding, lean governance, FG direct funding capital project,
Social security implementation, social insurance, fuel subsidy savings, director labour, tax implications, health insurance, and a myriad of them.
“These are non-FAAC, and we are not going to tamper with the current FAAC & Tax structure, but just like the great Accounting procedure of Forensic banking done by states after change of government, we would do forensic checks of projects and drop the waste clauses and cost from them via the National Council on Procurement and our planned EPC ( Engineering Procurement Contracting) system reforms ”
He said, “There is now a project with challenges pointing at this need for EPC + F Reforms sounding like a broken record in Nigeria now, which is the Lagos/Calabar Coastal Road – This is a clear sign that the time has come for rolling in the National Council on Procurement of the 2007 Procurement Act
****
For example, take a look at Section 5 & 6(1) of the Public Procurement Act, 2007 No.14. This indicates the functions and Powers of the Bureau of Public Procurement (BPP).
Functions of the Bureau include that the Bureau shall: formulate the general policies and guidelines relating to public sector procurement for the approval of the Council;
publicize and explain the provisions of this Act;
That, subject to thresholds as may be set by the Council, it shall certify Federal procurement before the award of a contract; To
supervise the implementation of established procurement policies;
To monitor the prices of tendered items and keep a national database of standard prices;
To publish the details of major contracts in the procurement journal;
Also that it shall publish paper and electronic editions of the procurement journal and maintain an archival system for the procurement journal;
That it shall maintain a national database of the particulars and classification and categorization of federal contractors and service providers;
That the Bureau shall collate and maintain in an archival system all federal procurement plans and information;
According to the YPP Presidential Candidate, the Bureau is also to undertake procurement research and surveys;
It shall also organize training and development programmes for procurement professionals
That it shall periodically review the socioeconomic effect of the policies on procurement and advise the Council accordingly;
prepare and update standard bidding and contract documents;
prevent fraudulent and unfair procurement and, where necessary, apply administrative sanctions;
That it will also review the procurement and award of contract procedures of every entity to which this Act applies;
That it shall perform procurement audits and submit such report to the National Assembly biannually;
Again that it shall introduce, develop, update and maintain related database and technology;
establish a single internet portal that shall, subject to Section 16 (21) of this Act, serve as a primary and definitive source of all information on government procurement, containing and displaying all public sector procurement information at all times; and
co-ordinate relevant training programs to build institutional capacity.
Furthermore, Agada revealed that the Bureau shall have the power to enforce the monetary and prior review thresholds set by the Council for the application of the provisions of this Act by the procuring entities;
subject to paragraph (a) of this sub-section, issue a certificate of “No Objection” for Contract Award within the prior review threshold for all procurements within the purview of this Act;
That from time to time stipulate to all procuring entities the procedures and documentation prerequisites for the issuance of Certificate of “No Objection” under this Act;
He said that Sec 5(c) + Sec 6(1)(a) & (b): BPP is the gatekeeper. Any Federal contract above the threshold set by the National Council on Public Procurement must get BPP’s certification (Certificate of No Objection) before it is awarded.
Section 5(f) stipulated that all major contracts must be published in the Federal Procurement Journal for transparency.
Agada pointed out that, in the context of who supervises the BPP, (1) there shall be for the Bureau a Director-General who shall be appointed by the President, on the recommendation of the Council after competitive selection.
(2) The Director-General shall be:
(a) the Chief Executive and accounting officer of the Bureau ;
(b)responsible for the execution of the policy and day-to-day administration of the affairs of the Bureau; and
(c) a person who possesses the relevant and adequate professional qualification and shall have been so qualified for a period of not less than 15 years.
The Director-General also shall hold office
(a) for a term of 4 years in the first instance and may be re-appointed for a further term of 4 years and no more; and
(b) on such terms and conditions as may be specified in his letter of appointment.
(4) Without prejudice to the provisions of this Act, the Director-General of the Bureau may be removed from office at the instance of the President based on gross misconduct, financial impropriety, fraud, and manifested incompetence proven by the Council.
In more detail, he identified that appointment under Section 7(1)
is not a direct appointment by the President alone. That it must be
President and on the recommendation of the National Council on Public Procurement, in addition to a competitive selection process.
Meanwhile, Agada observed that the DG must have relevant professional qualifications for at least 15 years.
Section 7(3) indicated that the DG shall have a tenure of 4 years for the first term, renewable once for another 4 years only. Maximum 8 years total.
Section 7(4) indicates that the DG cannot be removed arbitrarily. Removal can only happen:
At the instance of the President
and on grounds of: gross misconduct, financial impropriety, fraud, and manifested incompetence
that must be proven by the Council, he concluded.
