VP Jagdeo warns against procurement violations

– reiterates departure from regulations would not be tolerated

Vice President Bharrat Jagdeo

Vice President Bharrat Jagdeo has issued a stern warning to the heads and accounting officers of public sector agencies in reaffirming Government’s commitment to enforcing strict compliance with procurement rules. He has made it clear that any departure from these regulations would not be tolerated.
In a high-level meeting held at the Arthur Chung Conference Center on Tuesday, Jagdeo stressed that Government prioritizes transparency and accountability in the execution of public projects.
That meeting brought together key figures, including Permanent Secretaries, Regional Executive Officers, and senior officials from agencies such as the Guyana Police Force, Guyana Defence Force, Guyana Geology and Mines Commission (GGMC), Guyana Sugar Corporation (GuySuCo), Guyana Water Inc. (GWI), and the Guyana Power and Light (GPL) Inc, among others.

Violations under scrutiny
He acknowledged the challenges agencies face in managing the country’s “unprecedented” Public Sector Investment Programme (PSIP); and while commending public servants for successfully implementing most of those projects in spite of resource constraints, he expressed concern over issues in procurement practices.
Highlighting that 95 per cent of public projects are completed successfully and in compliance with procurement rules, Jagdeo nevertheless criticized the Parliamentary Opposition for focusing disproportionately on the problematic 5%, making it appear as though failures are widespread.
“We want a fair procurement system,” Jagdeo reiterated as he emphasised the need to address the five per cent of problematic contracts that fall short of required standards.
Pointing out that there have been some deviations from the Procurement Act and the Standard Bidding Document despite the time and effort spent in developing these advanced legislative frameworks, Jagdeo stressed that all public officials must familiarise themselves with the Procurement Act and Standard Bidding Documents, and fully comply with the rules.
On the rare occasion that need should arise to depart from the Standard Bidding Documents, he said, it should occur only with prior approval from the National Procurement and Tender Administration Board (NPTAB).
He said officials would be evaluated on their adherence to these guidelines, moving forward.
Jagdeo also criticized instances wherein there has been deliberate slowing down of project implementation by some agencies, which has led to a year-end rush for completion, which is then used to justify sole sourcing of contracts. He called for early planning and execution in order to ensure that NPTAB grants sole sourcing approvals only under exceptional circumstances, which must be clearly detailed to the Cabinet.
The Vice President made it clear that this practice must be curtailed, even as he also highlighted the potential manipulation of the three-quote system and warned that it must be used sparingly and within a controlled environment in order to preserve the integrity of the bids.
Moreover, he expressed concern at the increasing use of restrictive tendering by some ministries, often without valid justification. While restrictive tendering may be necessary for complex projects, Jagdeo cautioned, it should not be used to favour specific contractors. He has thus called on NPTAB to closely scrutinize any requests for such tenders.
Referring to some reports of corruption, Jagdeo condemned instances wherein bribes are being solicited to expedite payment for completed work, urging agency heads to remain vigilant. He emphasized that such practices ultimately damage the Government’s reputation, as those paying bribes often blame the administration for these corrupt activities. He is urging accounting officers to be more vigilant, moving forward.
The Vice President pointed out, too, that there are a few cases in which several members from one family may have registered companies, and they all bid for contracts. Acknowledging that this may be difficult to identify, he has urged accounting officers to be wary of this and to ensure vigilance.
Further, Jagdeo noted that some contracts include unnecessary items, such as vehicles and computers, which inflate costs by tens of millions. He warned that such additions are not allowed, and disclosed that, where discovered, these have been corrected.
He is urging accounting officers to ensure that contracts focus solely on essential project deliverables moving forward, and not be used for the comfort of their own agencies.
In addition, Jagdeo addressed the misuse of contingency sums set aside for projects, stressing that these resources are subject to approval, and are not for the discretionary use of engineers, nor are contractors entitled to use them. He revealed that several engineers have been fired for approving substandard projects that have led to Government making payments for work not completed, condemned the inflation of bills, and warned that this practice would not be tolerated.
He also voiced concerns about conflicts of interest in some Regional Democratic Councils (RDCs) and other Government agencies, where officials have private companies and are bidding within the agencies where they work. He made it clear that those wishing to be contractors must leave their Government positions, as this conflict of interest would be scrutinized closely.
According to him, agency heads must engage in better contract administration, and stress the importance of penalties for late or shoddy work, including imposition of liquidated damages. He made it clear that Government would hold agency heads responsible for these issues.

Budget 2025
Looking forward, Jagdeo stressed the importance of data-driven decision-making in the public sector to enhance policy effectiveness and combat misinformation; and urged public servants to rely on facts and analyses when making decisions.
Finance Minister Dr. Ashni Singh also participated in the discussions, which included early preparations for the 2025 budget. Jagdeo underscored that transparency and accountability would remain central to the Government’s priorities as it continues to execute its ambitious public sector investment plans.
The meeting concluded with Jagdeo reaffirming Government’s dedication to delivering its commitments to the people while maintaining a strict watch on procurement practices in order to prevent inefficiency and corruption within the system.