PPA, 2007 AS A TOOL FOR ENFORCING TRANSPARENCY AND ACCOUNTABILITY IN THE NIGERIAN BUILDING & CONSTRUCTION SECTOR

BY

BUREAU OF PUBLIC PROCUREMENT (BPP)

ENGR. EMEKA M. EZEH, OFR DIRECTOR-GENERAL

@
QUANTITY SURVEYORS REGISTRATION BOARD OF NIGERIA THIRD BUILDING & CONSTRUCTION ROUNDTABLE (BCERT 3)
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DATE: VENUE:

THURSDAY, MAY 24, 2013 SHEHU MUSA YARDUA CENTRE,, ABUJA

HIGHLIGHTS
Why Transparency and Accountability (TA)? Challenges for Achieving TA What is Procurement PPA, 2007 a to to achieve TABCPs Conclusions

Why Transparency and Accountability in Building and Construction Projects (TABCPs)?

BCPs make a major contribution to economic growth and poverty reduction Mismanagement and corruption during the planning and implementation of can greatly undermine the expected social and economic benefits.

Why TABCPs?
Where procurement officers demand bribes, or contractors offer bribes to win contracts,
prices may be inflated and competition is impaired.

High prices and poor quality, as well as time delays, can also arise from mismanagement,
from a poorly prepared specification and inadequate supervision during the implementation of the project.

Why TABCPs
Corruption and mismanagement can lead to unsuitable, defective, and dangerous infrastructure buildings that collapse and roads that break up which not only raises the costs of maintenance, repair, and replacement but can also result in civil and criminal liability for damages Transparency helps to expose both corruption and mismanagement
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Challenges for achieving TABCPs

A complex and long project cycle
causes for concern throughout the project cycle, including the feasibility, design, tendering, award and implementation phases

A diverse set of actors Complex information.

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Challenges for achieving TABCPs

A diverse set of actors
Each phase of a construction project generally involves different management teams, and requires those in charge of each completed phase to hand over to the team undertaking the next phase. The interrelationships between the actors on a construction site are based on historically defined roles for the architect, engineer, quantity surveyor and or builder, with separate responsibilities for planning and designing the structure, estimating the price and constructing the asset These create an environment with a diverse set of actors.
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Challenges for achieving TABCPs

Complex information.
such as contract award price, engineers estimate, or the number of bidderscan be presented clearly and requires no further interpretation for the public, information relating to changes to cost, time, and quality requires expert interpretation. For example, during contract execution, claims may be artificially inflated, and variation orders and extensions of times may be unjustified, but detecting whether this is so is not easy. Client officials may deliberately embezzle project funds through fraudulent payments in respect of defective work, equipment, or services not actually supplied
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PUBLIC PROCUREMENT ACT AS A TOOL FOR TABCPs

The Public Procurement Act 2007 puts Nigeria in the league of countries with legislation on how Public Funds would be expended. Prior to now, Nigeria was among the few African countries without legislation on Public Procurement.

WHAT IS PROCUREMENT?
Procurement is defined as the overall process of acquisition of goods, works and services at the BEST POSSIBLE TOTAL cost of ownership, in the Right Quantity and QUALITY at the RIGHT TIME, in the RIGHT PLACE for the direct BENEFIT or use of Government, Corporation or individuals, generally via a contract.

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CORE OBJECTIVES BPP PPA, 2007 Section 4

BPP has Regulatory functions to achieve the core objectives:

Probity and Accountability Transparency and Fairness Economy & Efficiency Competition Providing level playing ground for all strata of bidders Value for Money
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PPA, 2007 SECTION 18 : PROCUREMENT PLANNING

Preparing the needs assessment & evaluation Identifying the goods, works or services required, Carry out appropriate market and statistical survey and on that basis prepare cost implications of proposed procurement. Aggregating its requirement to obtain economy of scale & reduce procurement cost

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PPA, 2007 SECTION 20 : PROCUREMENT PLANNINGCOMMITTEE (PPC)

Each MDA must have a PPC to do the afore-mentioned responsibilities.

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PPA, 2007 SECTION 20 : PROCUREMENT PLANNINGCOMMITTEE (PPC)

Membership
Accounting Officer or its representative to chair. Procurement Unit to serve as Secretary Unit directly in requirement of procurement Financial Unit of the MDA PRS Department of MDA Technical personnel of MDA with expertise in the subject matter for each particular procurement. Legal Unit of the procuring entity

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PPA, 2007 SECTION 20 : PROCUREMENT PLANNINGCOMMITTEE (PPC)

Membership
Accounting Officer or its representative to chair. Procurement Unit to serve as Secretary Unit directly in requirement of procurement Financial Unit of the MDA PRS Department of MDA Technical personnel of MDA with expertise in the subject matter for each particular procurement. Legal Unit of the procuring entity

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STRATEGY TO ENFORCE TRANSPARENCY AND ACCOUNTABILITY section 16

All public procurement shall be conducted: By open competitive bidding In Transparent, timely, equitable for ensuring accountability With all bidders
Possessing legal capacity Have fulfilled all its obligations to pay taxes, pension and social security Not in receivership, bankrupt

Criteria stipulated solicitation document for evaluation shall not be changed

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STRATEGY TO ENFORCE TRANSPARENCY AND ACCOUNTABILITY

Advertisement for solicitation of bids in National Newspapers/Federal Tenders Journal Observation of every procurement process by TWO credible persons a relevant private sector professional such as NIQS, NSE and nongovernmental anti-corruption organization. Transparent Evaluation Process Approval by the authority before award. DEBRIEF the bid losers on request!

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STRATEGY : SUBMISSION OF BIDS section 27

All bids shall be deposited in secured tamperproof bid box. All procuring entities shall issue receipts showing the date and time the bid was delivered. Any bid received after the deadline for the submission shall not be opened and must be returned to the supplier or contractor
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STRATEGY: OPENING OF BIDS section 30

Bids must be opened in public with bidders in attendance and any interested members of the public. Bidders must be permitted to examine envelopes to ensure bids have not been tampered with. Bids must be opened immediately following the deadline stipulated for submission
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STRATEGY: OPENING OF BIDS (Contd)

Register of names & addresses of all those present at the bid opening indicating the organization they represent Call to the hearing of all present and address of each bidder, the total amount of each bid and bid currency.

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 Bid Evaluation will generally be preceded by examination of bids to ensure that the minimum eligibility requirements stipulated in the bidding documents are met, that the bid is responsive and duly endorsed.

STRATEGY: BID EVALUATION section 31 &32

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PURPOSE OF EVALUATION
To determine and select the lowest evaluated responsive bid. No other criteria shall be used except as stipulated in the solicitation documents. Prompt notice shall be given to the contractor of any arithmetic errors that are discovered during the examination of tenders

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PURPOSE OF EVALUATION
After Opening of Bids, information relating to examination, clarification and evaluation of bids and recommendation, concerning award shall not be disclosed to bidders or persons not officially concerned with the evaluation process until the successful bidder is notified of the award.

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STRATEGY: PAYMENT TO CONTRACTORS No funds shall be disbursed from the Treasury or Federation Account or any bank of any Procuring Entity for any procurement unless the cheques, payments or other form of request for payment is accompanied by a certificate of No Objection to an award of contract duly issued by the Bureau.
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STRATEGY: PAYMENT TO CONTRACTORS

On provision of UNCONDITIONAL Bank Guarantee or Insurance Bond 10% Performance Bond to be provided by successful bidders.

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Enforcing Strategy: PROCUREMENT AUDIT

The purpose and objectives of the audit are: Verification of procurement and contracting processes followed; Verification of technical and, physical compliance and price competitiveness of contracts; and Review of contract administration and management. The procurement audit focuses on contract implementation
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Some OFFENCES (section 58)

Bid Rigging re-arrangement of offers where winners have been predetermined Collusion Altering procurement documents Splitting of contracts Using fake documents like TCC, etc.
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STRATEGY: PENALTY FOR VIOLATORS SECTION 58

Sanctions May recommend for:
Suspension of officers concerned. Replacement of Head of Procurement. Discipline the Accounting Officer Temporary transfer of procuring function of the entity to a Third Party . Nullify the whole or any part of the procurement process.

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STRATEGY: PENALTY FOR VIOLATORS SECTION 58 Natural Persons

Jail term for directors of 5 Calendar years but not more than 10 years without option of fine.

For officers of the Bureau, MDAs

Not less than 5 Calendar years. Summary Dismissal from Government Service,

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STRATEGY: PENALTY FOR VIOLATORS SECTION 58 For Corporate Bodies

Debarment from all public procurement for a period of not less than 5 Calendar years; plus Fine equivalent to 25% of the value of the procurement. Directors of the company as listed in CAC shall be liable to a jail term of not less than 3 Calendar years but not exceeding 5 years without option of fine.
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CONCLUSION
The Public Procurement Act 2007 provides the legal and institutional framework for the enthronement of Transparency, Accountability, Value for Money and Efficiency in the procurement of building and construction projects within the Federal Ministries Departments and Agencies PPA 2007 is a tool to enforcing Transparency and Accountability in Building and Construction Projects.
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Thank You!
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