Corruption in public procurement process: Framework underway to computerize evaluation of contractors

A nationwide initiative is underway in Guyana to digitize contractor evaluations with the aim of combatting and eradicating corruption in the public procurement process.
This new system aims to standardize and enhance the ability of the evaluation committee of the National Procurement and Tender Administration Board (NPTAB) to monitor infrastructure projects and the allocation of Government contracts to various entities.
Currently, contractors are required to report to the committee on ongoing projects and the percentage of work completed on those projects.
However, due to the dishonesty of several contractors, Government, by way of direct order from President Dr. Irfaan Ali, has begun to pursue liquidated damages for delayed state projects. In this regard, approximately $3 billion in charges for liquidated damages have been instituted over delays in public projects awarded through the Ministries of Public Works, Housing and Water, and Agriculture, among others.
The Public Works Ministry has issued letters to contractors on 365 projects which have experienced unjustified delays, seeking liquidated damages of $934.65 million.
With concerns rising in regard to corruption in the public procurement process, Chairman of the Private Sector Commission (PSC), Komal Singh, has said the new framework would close loopholes being used by contractors to defraud the state.
“So, the platform will now allow us an opportunity to make sure that awarding contracts are being awarded to contractors who have the requisite capacity to execute those projects, thus eliminating the perception that there is corruption in the long run… So, the whole evaluation process is done in a very transparent manner, and it needs to take into consideration many factors on that particular contractor,” the PSC Chairman said.
Singh made these comments during a recently televised programme in which he further disclosed that the framework would root out from the system personnel who bypass protocols for their personal gain.
“If you’re being placed in a position where you need to manage the system and follow due process that is documented, and you fail to follow those processes and you use the system for your personal gain, I mean, it is clearly written on the wall: the Government just need to do what they have to do and hold those people accountable. If it means putting them in front of the court to face whatever action needs to be taken, you know, from a private sector standpoint, we feel they need to do it,” Singh added.
With the platform in place, he added, Guyana is keen to see increased foreign investment, economic growth, and more international business relationships, which would scale-up the country’s competitiveness.
In fact, Vice President Bharrat Jagdeo on Thursday echoed similar sentiments while adding that, to protect Guyana’s economic transformation, systems must be implemented. According to Jagdeo, the Regional Administrators across Guyana would be asked to investigate and be knowledgeable of the companies’ owners before contracts are awarded.
In defending his reason behind this position, the VP explained, “There are some contractors who, through their families, own multiple companies: wife, children, everybody, and they come and bid. You don’t know who they are because they are companies, and then you end up with a single family putting in three or four different bids. And often, they win contracts and the community knows who they are and we don’t.”
Jagdeo added that Government would be asking contractors to declare their interests.

No prohibition
Jagdeo also hinted that the same measures would have to be implemented against some public servants who also participate in, and could possibly influence, the bidding process.
“There is no prohibition, if you work for the Government, to bid in a contract, but you should not do so in an entity that is connected to you. So, we’re enforcing that so that you can’t prejudice the bid process,” he explained.
Jagdeo said these issues were addressed during a recent outreach to Region Two (Pomeroon–Supenaam), at a meeting with contractors and employees of the regional administration.
Looking at the regional administration’s perspective, he said there needs to be full compliance with the Procurement Act and the related regulations. “Too often we have found departures from the standard bidding document that is a part of our legislation, and because there (are) so many procuring entities around the country…at different levels…sometimes they can alter the bidding document, which should be standard,” he pointed out.
As such, more training has been recommended for procurement staff within the various regions to ensure they clearly understand the tendering process in order to enhance the system.
The Government is also working to blacklist contractors who are failing to complete projects that are in keeping with quality, or in a timely manner.
“We had a tough talk with the contractors too, that we intend to rigidly enforce the law,” the VP stated about his recent visit to the Pomeroon-Supenaam region.
The meetings hosted in Region Two would be replicated across the country in order to deal with procurement issues.
“The Ministry of Finance will go across the country, ensuring that all the procuring authorities…are aware of this, and that departures from established procedures would have consequences,” Jagdeo noted.