Government will this week bring a bill before Parliament seeking to correct “impractical” provisions of the Public Procurement and Disposal of Public Property Procurement Act 2015.
The bill, which will be considered by the House of Representatives on Wednesday, seeks to correct an incorrect cross-reference included in the legislation when it was amended in 2020.
The 2020 amendment was supposed to require an affirmative resolution from Parliament whenever the Minister of Finance seeks to exclude other services provided to public bodies and State-controlled enterprises from the provisions of the legislation. Legal, financial, accounting, and medical services provided to public bodies and State-controlled enterprises are automatically exempt.
However, the affirmative resolution requirement mistakenly referenced a section dealing with exemptions related to matters of national security.
Last week, social and political activist Ravi Balgobin Maharaj threatened to file an interpretation lawsuit after Finance Minister Colm Imbert issued a three-month exemption order pursuant to the legislation related to services provided for visits from foreign and regional dignitaries. The order was related to the recently concluded Caricom Heads of Government Summit which cost an estimated $9 million.
Addressing the issue at a press conference last Wednesday, Imbert denied any wrongdoing as he pointed out that he issued a similar order in May to cater for the costs associated with a sequestered jury.
He said based on the advice he was getting, there was need for “a properly thought-out amendment to allow the Government to deal with unforeseen events” which will take some time.
The correction of the error is likely to be a contentious issue as Government is seeking to make exemptions decided by the Finance Minister subject to negative resolution as opposed to affirmative.
With affirmative resolutions, Parliamentary approval is required for the exemptions to take effect, while with negative resolutions the exemption will be valid unless rejected by Parliament within a set time.
Government sought to introduce a negative resolution in the 2020 amendment but it reverted to an affirmative resolution after complaints from the Opposition and Independent Senators.
The bill to be debated this week will also seek to introduce a new section allowing up to $1 million in expenditure on goods and services to be exempt from the procurement provisions.
It will also seek to extend the powers of the Finance Minister to decide on regulations and procedures for the procurement of such goods and services by allowing him to act at his own discretion as opposed to only after consultation with the Office of the Procurement Regulator.
It also seeks to change the requirement for affirmative resolution of such regulations to negative resolution.
The last clause seeks to retroactively validate the previous exemption orders issued by Imbert, earlier this year.