Mohammed Shosanya
The Director General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, and his predecessor, Emeka Ezeh, have advised against amending the Public Procurement Act to include punitive measures for erring contractors.
They said that such provisions are typically embedded in contractual agreements.
At a session with the House of Representatives Committee on Public Procurement, Dr. Adedokun explained that the Public Procurement Act of 2007 was designed to harmonize existing government policies and practices, while regulating and setting standards for public procurement.
According to him,the law promotes competition, transparency, and accountability in the procurement process.
He maintained that the Act already provides a robust legal framework, and that issues related to contractor misconduct are adequately addressed within the terms of individual contracts.
He added: “The proposed amendment aims to impose sanctions on contractors who fail to complete projects within the stipulated timeframe. Such sanctions are typically embedded in the conditions of a contract on a global scale and are beyond the scope of the Public Procurement Act (PPA).
“It is important to note that the PPA does not oversee the implementation phase of contracts. Instead, this is governed by the standard conditions of the contract and the contract agreement, which regulate all matters arising after a contract has been validly awarded.
“In this regard,the clauses within the contract agreement that outline sanctions for contractors, as specified in the Bureau’s Standard Bidding Documents, are sufficient. Therefore, the proposal to incorporate contract implementation procedures into the Public Procurement Act would be excessive and counterproductive, undermining the original purpose of the Act.
“As the regulatory authority,the Bureau, empowered by the Act,has already issued Standard Bidding Documents and Standard Conditions of Contract that meet global standards and include penalties for contractors who fail to comply.
“The Bureau recommends that the Committee focus on ensuring the proper implementation and enforcement of existing laws, rather than pursuing amendments that do not address the core issue. Specifically, the Bureau emphasizes that the timely release of funds for awarded contracts is critical for the successful completion of projects. Delays in funding from the procuring entity ultimately lead to delays in project completion, making the procuring entity responsible for any setbacks.
“Given these considerations,the Bureau respectfully urges the Committee to reconsider the proposed amendment. We also seek the support of Parliament to prioritize the effective implementation of the Public Procurement Act, as this will significantly enhance the efficiency and integrity of the public procurement process in Nigeria.”
The immediate past Director-General of the Bureau of Public Procurement (BPP), Emeka Ezeh, expressed concerns over the proposed amendment,suggesting that while it may appear noble and well-meaning at first glance, it seems to focus more on addressing the symptoms rather than the root causes of the challenges in Nigeria’s contracting environment.
He recommended that the issue should be examined from a more comprehensive perspective.
He emphasized the import of addressing the entire process,from needs assessment and project design to proper budgeting, contractor selection, and,ultimately, effective contract execution and project implementation.
