The Public Procurement Commission (PPC) is a pricey apparatus that may not be worth the financial investment, junior Finance Minister Juan Edghill said in his budget address on Wednesday.
He recalled that in 2013, just over 3,800 contracts were sent to the National Procurement and Tender Administration Board (NPTAB), with 466 of those being forwarded to cabinet for approval because the bids were over $15 million. Only on five occasions did cabinet withhold its objection, Edghill said. He added that only 24 bidders had complained and asserted that the PPC would be “a high-priced entity to deal with 24 complaints.”
The minister did not disclose why cabinet withheld its objection to the five bids nor what they were in relation to. As he spoke about the PPC and government’s resolve to maintain cabinet’s no objection role on contracts, opposition members of the house chanted “cronies.”
The opposition has been vocal about the need for a PPC. The Alliance for Change in February prepared amendments to Section 54 of the Procurement Act which would allow up to 21 days for all stakeholders, including government to raise their concerns. The AFC had stated that the government and cabinet’s roles would be equal to all other stakeholders and the final arbitrator would be the PPC.
During his budget presentation, Edghill stated that “some people speak about the Public Procurement Commission as if it was the divine institution to correct all the wrongs that exists.” He was firm that cabinet’s influence is justified. Despite many calls to do so, government has dallied on establishing a PPC.
Edghill stated that government is still committed to the PPC and said there was a need to strengthen the way in which tenders are handled. He said that the Guyanese people need to be sure they are given value for money. He asserted that the procurement process is transparent as is and noted that currently members of the media are present when bids are placed for contracts at the NPTAB offices.
The minister acknowledged that contracts have to be held to higher standards and a contractor’s technical, financial and human capital has to be sound and they need to have on hand all the necessary equipment before tenders are awarded. As he continued, members of the opposition heckled calling out the name of the Amaila Falls road contractor Makeshawar “Fip” Motilall.
Motilall was awarded the US$15.4 million contract to develop the Amaila Falls access road in March 2010. The contract was terminated in 2012. Prior to the termination, the contract was a source of major controversy. It was argued that Motilall had never built roads of the type he was awarded and that he should never have gotten the contract. Despite this, the contract was awarded to him and from the very start he fell behind on deadlines.
Edghill also spoke about Guyana’s continued economic growth and said that the 2014 budget reflected that growth. Bigger budgets are a reflection of doing better while maintaining low inflation levels, he said.
Edghill also defended allocations to the state-run National Communication Network and the Government Information Agency. He said that across the world, governments have agencies that are based on showcasing the governments in charge. He denied AFC member Cathy Hughes’ assessment earlier Wednesday that GINA was responsible for merely press statements but did not say what other work the 40 plus staff is responsible for.
Meanwhile, the PPP/C’s Region Six representative Faizal Jafferally reiterated that the budget was focused on growth. He stated that it was the biggest budget that Guyana has ever had and that as a regional representative, he was seeing what the allocated monies were doing at the community level.
Jafferally said that Region Six has 39 sports grounds that have been rehabilitated to the tune of $56.9 million in the past year. He said that communities such as in Black Bush Polder and Rose Hall are being equipped with pumps to alleviate flooding.
The regional representative spoke passionately about the achievements being made across Guyana and stated that it was the opposition that has to visit these areas to see such progress. He commended the 2014 budget for allocating more money in regional support while no new taxes were introduced.
