Senate increases contracts mobilisation fee by 30%, amends procurement act
TSenate yesterday increased mobilisation fee of local contractors from 15 to 30 per cent in what it believes will reduce the bureaucratic issues that delay execution of projects by amending the Procurement Act.
It also reduced the timeline for processing contracts award to two weeks, while it approved four days for issuance of certificates.
While considering the report, most senators argued that the current mobilisation fee for local contractors was inadequate and that it caused abandonment of contracts in the country.
Also, the issue of certificate of no objection generated heated debate among the senators resulting in sharp division.
Most of those who spoke on the matter were divided over whether the certificate should be issued by heads of ministries, departments and agencies (MDAS) or a special committee in the Bureau of Public
Procurement.
Senate President, Ahmad Lawan, said what should be of concern to parliament is how to prevent delay in contract processing and award by giving a timeline for the necessary documents to be issued.
He said doing so was also a better way to avoid corruption.
However, other senators suggested having a representative from the Bureau of Public Procurement to be posted to the MDAS to be issuing certificates based on their various thresholds.
After much debate, members however, agreed to use timeframe as a means of saving time and stopping corruption in contracts award.
They resolved that contracts should be processed within two weeks while the certificate should be issued within four working days.
On mobilisation of local contractors, the committee recommended not more than 20 per cent, but Senate approved 30 per cent after much debate on the issue.