PPP increased thresholds for restricted tendering in 2014
─ accuses government of breaching laws for similar act
─ after proroguing the National Assembly on November 10,2014 the PPP government instituted similar changes to the procurement act
─ the Ramotar cabinet on November 11, 2014 decided to increase the threshold for restrictive tendering from $1,500,00 to $5,000,000
DPI, Guyana, Saturday, February 9, 2019
Following the leaking of a circular, signed by Mark Bender, Deputy Chairman of the National Procurement and Tender Administration Board (NPTAB) – advising permanent secretaries, agency and corporation heads and regional administrations that the threshold for restricted tendering in the case of contracts for goods and services been increased from $3 Million to $10 Million while the threshold for contracts for construction has moved $10m to $20m – the opposition PPP, through its shadow Finance Minister, Bishop Juan Edghill, has accused the Coalition government of breaching the procurement laws.
Edgehill cautioned the Permanent Secretaries and other government functionaries to “ignore the increases,” as he said they are illegal in the aftermath of the passage of the motion of no confidence which considers that Cabinet is no longer functioning and a caretaker government is in place.
Minister of Finance Winston Jordan, however, explained that the APNU-AFC Government is still in office and “will be a government until they are voted out of office”.
The minister said that the Coalition Government will proceed with programmes and projects outlined for the fiscal year 2019.
“There is a budget for the fiscal year 2019… the whole of 2019” which was approved and passed. He added that “this is not a scenario where there is no budget and you are restricted to one-twelfth, in accordance with the law.”
The Finance Minister further emphasised that “the Government of the day has to do things that are consistent with government’s work.”
Documents seen by the Department of Information (DPI) inform that after proroguing the National Assembly on November 10, 2014, the then PPP government under the hand of former President Donald Ramotar instituted similar changes to the procurement act.
According to the document dated November 14, 2014, the Ramotar cabinet held a meeting on November 11, 2014, and took the decision to increase the threshold for restrictive tendering from $1,500,000 to $5,000,000. The memorandum to cabinet was submitted by the then Minister of Local Government and the approval signed by Secretary to the Cabinet Roger Luncheon on November 13, 2014. The Amendments were cited as “the Procurement (amendment) regulations 2015. Made on the 7th day of January 2015.
Meanwhile, according to the Stabroek News, Bender insists that Minister of Finance, Winston Jordan acted in accordance with the law and has not changed thresholds for ministerial or regional agencies but for two methods of procurement at the national level, the NPTAB sees no illegality in the move.
Additionally, Bender said that while Edghill has questioned the legitimacy of the document he is following orders in accordance with the Procurement Act and that there is nothing sinister in the amendments.
“The thresholds with regards to the ministerial and the agencies and regional tender boards have not been changed. What we have amended is the thresholds for two methods of procurement: restricted tendering and request for quotations,” he explained.
According to Bender, the changes were made to the thresholds in 2016 and are annually revised to cater for market changes and other factors. He said after analysis over the two-year period, it was recommended by procuring agencies and from analysis of the NPTAB that the threshold for methods be revised again.
“We are constantly analyzing these things. We have discussions with procuring entities, and you know the analysis of the general market conditions, types of procurements and from the numbers of analyses resulted in these changed thresholds. These methods of tendering still must adhere to the Public Procurement Act rules.”
Bender said that using the methods are in no way subverting the procurement processes or laws as although there is restricted tendering, that method must stick to the NPTAB and lawful rules.
“…the Procurement Laws are online. You still must invite all the bidders who were, prequalified to a tendering process which is then evaluated and so on. You go through all the processes – you invite bidders, you open bid, they must get compliance…. you evaluate… the only thing you don’t do is advertise. You do everything else as open tendering and it is a matter of practicality.”
Kidackie Amsterdam.