Deposits mulled for bidder appeals

The

Comptroller-General’s Department may require losing bidders who appeal auction results to deposit money as a way to prevent unjustified petitions that lead to delays in budget disbursement.

The idea will be proposed to Finance Minister

Apisak Tantivorawong, said department spokeswoman Yanee Sangsrichun.

Dozens of losing bidders making appeals have been partly to blame for the budget disbursement shortfall in fiscal 2018, she said.

Mr Apisak said recently that some losing bidders had exploited the Government Procurement and Supplies Management Act by filing unjustified appeals, causing the postponement of some government investment projects.

The law, effective since August 2017, stipulates that losing bidders can file an appeal within seven days after the auction is completed. In the event that there is an appeal, the issue will be considered within 45 days with two extension periods: seven days and an additional five days.

State agencies availed 92% of the fiscal 2018 budget, worth 2.67 trillion baht, and doled out 56.5%, worth 373 billion.

The government has a budget expenditure target for fiscal 2018 of 2.9 trillion baht, of which 577 billion is earmarked for investment.

The aim is for 96% of the annual budget and 87% of the investment budget to be drawn down during the fiscal year.

The government’s fiscal year starts on Oct 1 and ends Sept 30 of the following calendar year.

Mrs Yanee said low comprehension and unfamiliarity with the Government Procurement and Supplies Management Act among state officials also led to lower-than-targeted budget disbursement in the last fiscal year.

The act, which replaced the procurement rules of the Office of the Prime Minister Act of 1978, centres on preventing corruption and anti-competitive behaviour, with an increased level of transparency and monitoring. More than 90% of government purchases and construction projects are covered by the act, which imposes criminal penalties for state officials.

To prevent delays in budget disbursement from repeating in this fiscal year, the department has requested state agencies rev up the procurement process because the annual budget for fiscal 2019 has been vetted by the National Legislative Assembly.

In the meantime, Suttirat Rattanachot, director-general of the Comptroller-General’s Department, said the Electronic Government Procurement (e-GP) system helped the state save 71 billion baht in fiscal 2018.

State agencies doled out 867 billion baht for procurement under the e-GP system in the last fiscal year, compared with a 939-billion-baht budget set for procurement, she said.