Fiji Sun

‘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.

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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.”

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 ?? ?? Acting Prime Minister and Minister for External Trade, Cooperativ­es and SMEs Manoa Kamikamica.
Acting Prime Minister and Minister for External Trade, Cooperativ­es and SMEs Manoa Kamikamica.
 ?? Photo: Asenaca Ratu ?? Unity Fiji Party Leader and former Reserve Bank Governor Savenaca Narube.
Photo: Asenaca Ratu Unity Fiji Party Leader and former Reserve Bank Governor Savenaca Narube.
 ?? ?? Fiji Labour Party leader and former Prime Minister Mahendra Chaudhry.
Fiji Labour Party leader and former Prime Minister Mahendra Chaudhry.

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