Public Procurement As An Public Procurement As An Imperative for Good Governance Imperative for Good Governance & Sustainable Development: & Sustainable Development: Implementation Challenges & Implementation Challenges &

LessonsLessons

A Paper Presented At The Public Procurement Conference 2015 organised by the Edo State Public

Procurement Agency

By: Engr. Akin Onimole Engr. Akin Onimole General Manager/CEO

Lagos State Public Procurement Agency

Key Issues to Consider:

◦Relationship between Public Procurement, Good Governance & Sustainable Development

◦Components of an Effective Public Procurement System

◦Implementation Strategy adopted by the Lagos PPA

◦Challenges & Lessons Learnt◦Recommendations

Public Procurement◦The Acquisition by any means of goods, works or

services by the Government (Edo PPA Law 2012)

◦Acquisition is the conceptualisation, initiation, design, development, test, contracting, production, deployment, logistics support, modification and disposal of weapons and other systems, supplies or services (including construction) to satisfy the US dept of Defence needs, intended for use in or in support of military missions.

(US Defence Acquisition University)

Good Governance (ref: UNDP)• Governance is generally taken to mean the exercise of

economic, political and administrative power or authority to manage a country’s resources and affairs at all levels;

• The goal of governance initiatives should be to develop capacities that are needed to realize development that gives priority to the poor, advances women, sustains the environment and creates needed opportunities for employment and other livelihoods.

• Good governance has become a conceptual platform of interest on which most nations performances are judged.

• It is a key part of any development strategy and it has become widely accepted within the development policy community in recent times

Sustainable Sustainable DevelopmentDevelopment

Development which meets the needs of the present without compromising the ability of future generation (Agenda 21 of Rio Declaration, 1992)

3 Pillars of Sustainable Development

Why Need for an Why Need for an Efficient Procmt Efficient Procmt Mgt System (PMS)Mgt System (PMS)

1.Earth Resources are fast diminishing

World Population by 2050 : 9 BillionNumber of ‘dead zones’ in the oceans & coastal areas has doubled since the 1960s due to fertilizer run-offs (yet 70% of world population depends largely on sea foods)By 2025, 2/3 of the world’s population could face serious water shortage problem (Less than 1% of world’s water available for drinking etc)

Why Need for an Why Need for an Efficient Procmt Efficient Procmt Mgt System (PMS)Mgt System (PMS)

2.Increasing Agitation for Accountability & Transparency.

Major condition for accessing foreign aid and foreign direct investmentCreation of EFCC and Due Process Office were part of the financial reforms that earned the Federal Government debt cancellation

Why Need for an Why Need for an Efficient Procmt Efficient Procmt Mgt System (PMS)Mgt System (PMS)

3.Public Procurement Budget is often 60–70 % of total Government Expenditure (savings from wastages & poor procurement system can help Govt achieve more)

1.1 Components of Effective Public Procurement System

Component Description or Function

Legal Framework

Procurement Law that clearly define responsibilities of procuring entities, contractors and suppliers.

Policy Effective and consistent national policies and standards to be followed by all procuring entities including arbitration procedures.

Institutional framework

A well defined structure for conducting procurement that minimizes subjective decisions and politicization.

Professional Procurement Cadre

Procuring entities staffed with well trained procurement professional and recognized as such under the Civil Service scheme and regulations.

Resources Procuring entities supported with adequate budgets, standard documents and operational manuals for effective service delivery.

Fraud Preventions

Clear laws applicable to procurement officials, contractors/ suppliers or service providers and other relevant stakeholders who breach any part of the law provisions.

Standard Model of Good Procurement Practice

UNCITRAL MODEL (United Nations Commission on International Trade Law)

Issued in 1994 as Model Law on Procurement of Goods, Construction & Services

Aimed at assisting National Governments seeking to introduce or reform public procurement legislation

Adopted by most Nations with some elements of domestication (e.g Nigeria (BPP, Lagos, Edo)

Objectives of the UNCITRAL Model Objectives of the UNCITRAL Model Maximizing economy and efficiency in procurementFostering and encouraging participation of suppliers and

contractors in procurement proceedings Promoting competition among suppliers and contractors

for the supply of goods, construction or servicesProviding for the fair and equitable treatment of all

suppliers and contractorsPromoting the integrity, fairness and public confidence in

the procurement process and Achieving transparency in the procedures relating to

procurement.

Implementation Strategy by Implementation Strategy by the Lagos State Public the Lagos State Public Procurement AgencyProcurement Agency

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Establishment of PPA in April 02, 2012 with take-off staff deployed over time.

General Manager/ CEO (1)

DIRECTOR MONITORING, ENFORCEMENT

& COMPLIANCE (1)

SECRETARY/LEGAL ADVISER (1)

DIRECTOR PROCUREMENT (1)

DIRECTOR CORPORATE SERVICES (1)

Internal Audit (2)

PPA Board

Budget/ Planning (1)

Technical Assistant (1)

Confidential Secretary / Personal Assistant (1)

Internal Procurement (1)

Board Secretariat (1)

Legal/Regulatory Services (2)

Consultancy Services (2)

Goods / Equipment (2)

Works / Technical Infrastructure (2)

HEAD ACCOUNTS (1)

ICT/ MIS (2)

Media/PR (3)

General Admin (4)

Contractors’ Registration (2)

Enforcement & Compliance (4)

Project Monitoring (2)

Pay/ Accounting Office (2)

Central Registry/ Record (2)

HR Management (2)

FIS (1)

State-wide SensitisationState-wide Sensitisation

Sensitization of about 5000 Stakeholders including State EXCO members, Accounting Officers, Directors, Contractors/ Consultants, Professional Bodies and Key Officers in LGAs and LCDAs.

Capacity BuildingCapacity Building

Conversion, Training and Deployment of Procurement Officers to MDAs.Selection criteria

includes: Remaining years in service, qualification, age and position below GL15)

(to date there are about 240 Officers in the Procmt Cadre Service-wide. Deployment based on spend category of MDA)

PPA Publications & CircularsPPA Publications & Circulars

Publications and Circulars issued to enhance implementation of the Procurement Law.

1.Handbook on FAQs 2.Basic Guidelines for the Implementation of

Procurement Law3.Quarterly Publication of Procurement Journal4.Publication of the State Tenders Journal5.Launching of an Interactive PPA Website (

www.lagosppa.gov.ng)6.Regular State-wide circulars for proper

information dissemination and clarifications

Other Activities Other Activities

Observer at the State Tenders Board Sessions during the Transition Period

Monthly Meetings/Seminar with the Procurement Officers’ cadre as part of capacity building strategy

Participated in the Setting-up of the Procurement Planning Committees and Ministerial / Parastatals Tenders Boards

Initiated the Annual Contractors / Consultants Forum

Regular engagement with State EXCO & Body of Permanent Secretaries

Challenges & Lessons Learnt

Challenges Solutions/Lessons

Inadequate number of experienced Procurement Experts to occupy strategic positions in the Agency to support the GM

Inadequate Budget to support the operations of the Agency especially in hiring consultants to offer expert/independent opinions (where necessary) and to train about 240 State Procurement Officers

Experienced staff trained under World Bank-assisted projects were seconded on ad-hoc basis to handle reviews and give professional supports to officers

Technical Supports were offered by UK-DfID through their relevant programmes in Lagos. However, the First Line Budgetary Provision for the Agency has really helped in planning

Challenges Solutions / Lessons

Deliberate Effort to frustrate Procurement Officers through non-provision of offices and working tools

Issue of certification by CIPSMN Incentives Conversion through self-seeking

motives (e.g from Teaching Service, Traffic wardens)

Continuous engagement with relevant authorities (The fact that the GM is not a career Civil Servant helped to enhance his independence

3-year moratorium granted by HoS/Civil Service Commission

Sponsorship to Conferences & trainings based on dedication to duty

Strict adherence to conversion criteria and rejection of application from some specific cadres

Recommendations for Edo PPARecommendations for Edo PPA

Engage a qualified professional as CEO of the Agency, if possible, a non-civil servant to ensure independence.

If Edo State Govt plans to convert to Procmt cadre instead of recruiting, limit conversion to between GL 8 – 12, except if there are tested and experienced professionals in the system

Establish a monitoring and reward system to incentivise and shield officers from fraud and political pressure

RECOMMENDATIONS contdIf possible, engage completely new and

experienced staff for the Agency. If not, ensure that staff deployed are stationed there for a minimum of 4 years to prevent high staff turnover

Make adequate Provision for Capacity Building of Agency staff, Procmt Officers, Board Members and Accounting Officers. (First line charge budget recommended). You may consider collaboration with PPRI (Futo), Ibadan Business School etc.

CIPSMN Factor

RECOMMENDATIONS contdAdopt Modern Technology (e.g Use of

formularised Excel Sheet to prepare Procmt Plans). Lagos is already introducing P2P module on Oracle Platform.

Factor in Sustainable Development and Innovation Procurement into your system. (You may need to engage a specialist Consultant for this)

Study your existing Procurement System and adapt as long as its acceptable best practice

Ensure regular engagement with Contractors & Suppliers

Comparative Analysis of some African Countries Procmt System

Parameters Ghana Public Procurement

Liberia Public Procurement

Tanzania Public Procurement

Uganda Public Procurement

Nigeria Public Procurement

Lagos State Experience

Enactment of Public Procurement Law

Enacted in 2003.

Enacted in 2008

Enacted in 2001

Enacted in 2003

Enacted in 2007

Enacted in 2011

Constitution of Board/ Council

Yes Yes, called Board of Commissioners which report to the Legislative.

Yes Yes No Yes

Establishment of Regulatory Agency

Yes with CEO as the Head

Yes with Executive Director as the Head

Yes with CEO as the Head

Yes with Executive Director as the Head

Yes with Director-General as the Head

Yes with General Manager as the Head

Organizational Structure

Yes Yes Yes Yes Yes Yes

References1 . United Nations: Economic and Social Council

Paper (Page 3) – Committee of Experts on Public Administration (Fifth Session) 27-31, March 2006.

2. Sustainable Public Procurement: A new approach to Good Governance by A. B Adjei (Page 2)

3. Lecture Note on Sustainable Development at University of Turin – Alenka Burja, DG Environment, European Commission

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The End The End

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