Towards prudence in public spending
This has become a thing of worry not only to Nigerians but also to the international community. Nigeria currently ranks amongst the poorest countries of the world. Its GDP per capita is currently below the pre-independence level, unemployment is at an all time high while many people have died over the years as a result […]
This has become a thing of worry not only to Nigerians but also to the international community. Nigeria currently ranks amongst the poorest countries of the world. Its GDP per capita is currently below the pre-independence level, unemployment is at an all time high while many people have died over the years as a result of poor healthcare
One of the major factors responsible for this consistent decline in the state of things is corruption in public sector and this has been most manifest in the form of inflation of government contracts and overspending on projects. Moreover, the process of awarding such contracts has in many cases not been transparent, leading to high cost of projects. Sometimes, adverts are not placed before contracts are awarded. Where advertisements were made, applicable rules were tilted in favour of predetermined winners. This way, other bidders are automatically put at a disadvantage because the rules have been tailored to perfectly align with a certain bidder’s qualification. Also, many ministries have over the years continued to show preference for new projects, with less attention paid to maintenance or completion of existing ones.
Other major factors that have hindered effective budget and project implementation in the country are absence of efficient and effective project monitoring aimed at ascertaining compliance, frequent government policy reversals and many more.
These perhaps were what necessitated the need for procurement reforms which were started ten years ago. With the reforms came the establishment of the Budget Monitoring and Price Implementation Unit (BMPIU) otherwise called the Due Process office. The same office is what is now known as the Bureau of Public Procurement (BPP). It was established primarily to enable the government achieve value for money spent by ensuring that international best practices were adopted in all public procurement activities. This way, it was thought, contracts would be awarded at reasonable costs and projects would be executed according to specification.
Going by recent reports in the media, it appears that the BPP has made some remarkable achievements in line with its mandate. The national dailies were recently awash with news reports that the BPP has saved the country the sum of N216billion in the 2010 budget by identifying and reducing the costs of inflated contracts awarded by Federal Ministries Departments and Agencies (MDAs).
It was reported that the agency was able to save that amount by conducting its own independent market surveys to ascertain the actual costs of procurement proposals sent to it. It also made comparative analysis of costs of projects in Nigeria with those of other countries which enabled it to arrive at reasonable prices.
That the agency was able to save such a huge amount from going down the drain is no small feat, especially in a country where public officials are renowned for flagrant abuse of rules and standards of procurement amongst other things. This development clearly shows that with dedication on the part of the government, corruption can be reduced to the barest minimum in the public sector, at least.
The Procurement Act requires that all federal government contracts above N1billion should be sent to the BPP for review and vetting before they are awarded. A total of 952 requests for Due Process certification were sent to the BPP during the course of implementing the 2010 budget. 843 representing about 89 percent were reviewed and certified. A total of nine were denied certification, while the BPP is still awaiting further clarifications on 100 proposals by MDAs. In the process of reviewing the costs of these projects before they are certified, the bureau was able to save the N216 billion.
In the light of this remarkable feat, the federal government must provide more support for the BPP to enable it continue to execute its mandate. This will enable the government make even more savings in the future as Ministries departments and Agencies (MDAs) are made to comply with the rules and standards of procurement, as prescribed in the Procurement Act. Offenders must also be made to face the full wrath of the law. This way, acts of collusion, bribery, undue influence, bid rigging and submission of false documents would be reduced to the barest minimum within the system.
As the new administration sets out for a term of four years, it is important that the government adopts strict measures in fighting corruption. The authorities must ensure that they punish offenders by adopting various disciplinary measures ranging from suspension, dismissal and prosecution, depending on the gravity of the offence committed. Although the Director General of the BPP, Engr. Emeka Ezeh was reported at the weekend saying that several offenders are currently being prosecuted in the court of law, it is important that these prosecutions are pursued to logical conclusions. This way, potential offenders and collaborators would be discouraged as they continue to see their erring colleagues face the wrath of the law. This way the government may be able to save a lot more as the BPP gears up to check the scourge of overspending.
Abdallah wrote in from Abuja