‘Amend Tender Law’
Political influence has usually undermined the Government’s procurement process, especially the tendering process, says the leaders of two prominent political parties in Fiji.
The legal basis for procurement is detailed in the Procurement Regulations 2010 under the Financial Management Act. The Act gives the Minister for Finance the privilege of intervening in the procurement process.
Unity Fiji Party leader Savenaca Narube and Fiji Labour Party leader Mahendra Chaudhry strongly believe the Act needs to be reviewed.
They are urging the coalition Government to amend the legislation to remove the discretion of the Minister to ensure a transparent process, and the following of the right technical conditions.
“There is always a risk of political interference in the tender process, particularly in countries which rank high on the corruption index – Fiji is a case in point,” Mr Chaudhry said.
“It is usually the businessmen with political connections who set the ball rolling. Sadly, business ethics in Fiji is remarkably poor.”
Transparency International, in its 2022 Corruption Perceptions Index, ranked Fiji at 53 out of 180 countries by their perceived levels of public sector corruption.
Mr Narube said the political intervention was normally because of special circumstances.
“In the case that the Minister intervenes, it is because his political friend is tendering, that’s not allowed, that’s a big conflict of interest,” he said.
“Many times, they may not be in the Auditor-General’s report, but people know it that this guy has the favour of Government, has been tendering and being awarded.”
Tendering is limited to the process of going to the external market with certain specifications with the intent to collect, analyse and nomi
There is always a risk of political interference in the tender process, particularly in countries which rank high on the corruption index - Fiji is a case in point...It is usually the businessmen with political connections who set the ball rolling. Sadly, business ethics in Fiji is remarkably poor. Mahendra Chaudhry Fiji Labour Party leader and former Prime Minister
nate bids.
Procurement is defined as the whole process of acquiring goods and services by agencies. It accounts for such a large slice of economic activity. It is the riskiest area in Government.
The potential of corruption, bribery, and abuse to damage Fiji’s economy is considerable.
The Ministry of Finance estimates that public procurement expenditure accounts for almost 20 per cent to 40 per cent of Gross Domestic Product in developing countries like Fiji.
In a press conference yesterday, Acting Prime Minister Manoa Kamikamica said Government was in the process of reviewing all Government procurement processes. He said Government would strive to ensure a transparent process. “The importance of good governance and importance of having proper tenders are areas being looked at,” Mr Kamikamica said.
FINANCIAL MANAGEMENT
Mr Chaudhry said proper management of the tender process with appropriate checks and balances was crucial for public finance as huge sums were channelled through it.
“A defective process could lead to loss of millions ending up in the pockets of corrupt politicians and businessmen. These millions would be at a cost to development,” the former Prime Minister said.
He further added that a major concern was the manipulation of the tender process through variations filed after the contract was awarded.
“This is through pre-arranged collusion between the lowest tenderer and the contract administrator, leading to payments substantially in excess of the approved contract sum.”
Similar sentiments were made by Mr Narube.
The former Governor of the Reserve Bank and Ministry of Finance Permanent Secretary said there had been big abuses done on the procurement and tender processes.
“We need to overhaul, relook at the tender process, relook at the law, to make sure we protect our money. These are taxpayers’ money that’s used.”
CONFLICT OF INTEREST
Appointment of persons to the Government Tender Board (GTB) should be carefully considered to avoid political influence, and conflict of interest, Mr Chaudhry said.
Members of the GTB are appointed by the Minister for Finance. Members are usually those who are experts in the area, and do not have any conflict of interest.
The seven-member Board is constituted with the authority to approve all procurement of goods, services, and works valued at $50,0001 and more.
“There have been cases of conflict of interest,” Mr Narube said.
“It is a big issue in the integrity of the tender process, that’s why there is a lot of regulation around it.”