Securing Government Contracts
With the release of the 2018 Auditor General’s report, Barbadians can peruse another damning account of financial mismanagement in the public sector. The report which reviews the financial year ending March 31st, 2018, has underscored the severe deficiencies in the awarding, monitoring and execution of government contracts. According to the Auditor General, the area of procurement should be given greater attention as a number of special audits have reiterated that procurement activities are a cause for concern.
Problems in procurement
One of these audits presented a strong justification for reforms on how government spends its 400 million per annum in procurement. This audit referenced a construction project under the previous administration that was fraught with several procurement issues. These included, cost overruns, significant delays in the completion of the project, ministerial interference in the awarding of the contract, and the failure to follow governance procedures. Due to these infractions, the additional cost to tax-payers now resides in the millions while the project remains incomplete. Ultimately, what this project highlights is that tax-payers will continue to be on the hook for millions more under the current procurement methods.
Contractor General needed
The continuity of these procurement issues demand a legislative and administrative overhaul of the procurement system. Fortunately for this BLP administration the appropriate legislative response can be found within their 2018 manifesto. Part of this legislative response involves the creation of a Contractor General Office that can assist in mitigating several of the reoccurring procurement inadequacies.
Benefits of the Contractor General
Arguably, one of the largest contributors to increased contract cost is ministerial interference in the process. It has become a common practice that ministers replace the tendering committee’s choices of contractors at the detriment of more competitive costs. However, with a Contractor General Office, the awarding of government contracts is an external and independent operation, sheltered from the potentially self-motivated and political inclinations of government ministers.
This is achieved as the office brings a greater sense of unbiased and technical expertise when sourcing contractors to be recommend to cabinet. In instances of cost overruns and inexcusable delays in the execution of projects, a Contractor General proves useful as the office monitors and oversees the technical, financial and managerial capacity and performance of contractors and other relevant agents to ensure adherence to the law. Additionally, when cost variations exceed a particular threshold, the office, in tandem with the permanent secretary and the cabinet must give approval for further funding. This can ensure that the increased cost are justified while providing much needed accountability. Moreover, in circumstances where contract irregularities and breaches occur, the Contractor General can suspend licenses and impose penalties on that contractor.
Good governance needed for progress
Ultimately, public procurement can no longer be a routine, clerical function within a department, ministry, or the cabinet. Today’s procurement environment requires targeted and expert evaluations, as sound public procurement management is a benchmark for good governance and national progress. With an independent agency tasked with the evaluations, recommendations, monitoring and the sanctioning of procurement processes, overall governance can be improved. Therefore, government ought to make good on its manifesto promise and establish an Office of the Contractor General.