The Joint Consultative Council for the Construction Industry (JCC) yesterday expressed extreme concern that T&T's procurement regulator has failed to issue its annual report, as required under section 24 of the Public Procurement and Disposal of Public Property Act. The procurement legislation was operationalised in April 2013.
In a news release yesterday, JCC president Fazir Khan, said the independent report was due for submission to the Speaker of the House of Representatives, the President of the Senate and the Minister of Finance in December 2023.
He said the new procurement law requires the following to be included in the report:
a) A figure representing the total value of contracts as awarded by public bodies, and another figure representing the cost of the total value of procurement contract variances for that year;
b) The number of unfulfilled contracts awarded by public bodies in respect of procurement;
c) A summary of transactions in respect of each public body specifying in respect of public procurement—
(i) the number of procurement contracts awarded;
(ii) the number of procurement contracts varied;
(iii) the quantum of those variances;
(iv) the number of unfulfilled procurement contracts and the quantum of cost incurred;
(v) with respect to the procurement for a project, a brief description, the awardee, the value, the scope of works and the expected deliverables of the project; and
(vi) lessons learnt as a consequence of the management of procurement contracts;
d) A summary of transactions in respect of each public body concerning the disposal of public property—
(i) in respect of real property, the address and other identifying details of the property disposed of, including value, to whom it was disposed, date of disposal, means of disposal and consideration; and
(ii) in respect of property other than real property, details of the property disposed of, including value, to whom it was disposed, means of disposal, and consideration;
e) Details of changes implemented to ensure current best practice for procurement, and disposal of public property;
f) The names of public bodies that have failed to comply with this Act;
g) An assessment of the overall performance of the procurement system;
h) A summary of unresolved issues that are to be dealt with; and
i) any recommendations requiring action on the part of a procuring entity.
Khan said the report is therefore supposed to supply critical data and information to Parliament and to the public. Only then, said the JCC president, can any assessment of the efficacy of the new legislation be determined and adjustments be made.
"This is even more dire at this time when the 2024 mid-year budget review presented by the Finance Minister now projects a $9 billion deficit," said Khan, adding that procurement reform is supposed to realise savings in the vicinity of $4 to $5 billion.
The JCC president noted that the organisation had indicated to the procurement regulator previously that about 80 per cent of the expenditure in public procurement is spent by only 10 per cent of the approximately 400 public entities. This means the Office of Procurement Regulation (OPR) can concentrate its resources on the few large spenders in order to have the largest public impact, said the JCC.
"A very dangerous precedent is being set by the OPR in not issuing the annual report. This does not instil confidence in the public and sends a bad message to procuring entities that it is business business usual," said Khan, in urging the procurement regulator to issue the annual report, in compliance with the legislation, immediately."