The Nation Newspaper

Tag: BPP

  • ‘Fed Govt saves N530b from inflated contracts’

    ‘Fed Govt saves N530b from inflated contracts’

    The Federal Government has saved about N530 billion from inflated contracts this year, the Director-General, Bureau of Public Procurement (BPP), Emeka Eze has said.

    Speaking with State House correspondents after a meeting with Vice President Namadi Sambo at the Presidential Villa yesterday, he said the agency through its intervention have been able to increase savings on contracts from N420 billion.

    Established by the Public Procurement Act 2007, the agency monitors public procurement, harmonises government policies and practices.

    According to Eze, the government is encouraging local production to further reduce costs of projects as the economy is still developing and most of the input for projects are from outside.

    He said: “Naturally for this year alone, uptill now we have N420 billion; we added another N110 billion for this year. So, we are talking of about N530 billion saved by our interventions.”

    On why projects cost more, he said: “We are a market driven economy where you run a business that will require you to pay interest rate of 21 per cent or 18 per cent, and you are doing the business. Are you going to make your business to recover the cost of money or not?”

    “Ordinary common sense will tell you that we are a developing economy and most of the input to our projects are not made in the country. That is why the government is driving on local production. If you are going to use construction equipment, do you make construction equipment in the country? The cost of a car in London, US or where they are made, are they the same?

    “The answer is no. Because if you are selling cars, you paid for the car in US and then you add the cost of shipment, clearance, cost of customs before you add your own profit as business men. By the time you add all those costs if you borrowed money, by the time you add all of them, will the cost in America be the same?”

    Since most of the projects in 2013 budget are on-going, he said that the agency had no problem with procurement plans.

    He said: “First of all the project must be appropriated for, which is already in the budget, in November last year Mr President last year ordered that circulars issued for procurement process for 2013 be started and I have a copy of that circular ordering all the MDA’s to start the procurement process. The intention was that by May everything about 2013 will be concluded and luckily for us this year we don’t have too many new projects, most of them are ongoing projects that don’t require new procurement plan. As far as procurement is concerned we don’t have any issues.”

    On why execution of projects sometimes do not meet expectation, he said: “We must continue to tell Nigerians about the need to have character, there is no way one person no matter who he is can do nation building alone. If I send you on a job to say this is what is to be done now and you have a specification and somebody receiving salary has a responsibility to say this is ok and the person does the wrong thing, then there is something wrong with us as a people.”

  • Why corruption is high at ports, by report

    WHY is corruption endemic at the ports? It is because of ineffective administrative practices, weak institutions and poverty, among others, says a report on the Corruption Risk Assessment (CRA) of six ports.

    The ports are Apapa and Tin Can in Lagos State, Port Harcourt and Onne (Rivers), Calabar (Cross River) and Warri (Delta).

    The Independent Corrupt Practices and other Related Offences Commission (ICPC), the Technical Unit on Governance and Anti-Corruption Reforms (TUGAR) and Bureau for Public Procurement (BPP) commissioned the work.

    ICPC Chairman Ekpo Nta, who presented the report in Lagos at a validation meeting, said it was prepared by the group’s consultants, Constantine Palicarsky and Chibuzo Ekwekwuo.

    Corruption, the report said, was high at the ports because of poverty and related cultural issues, adding that there are 70 million people living below poverty level in the country.

    It said: “In addition, serious security problems make the situation even more difficult for entrepreneurs. This generates additional costs for clients and contributes to the delay in port processes. For instance, proposal for 24-hour operation of the ports cannot be implemented as a result of security concerns. Besides, the host community seems to be a problem in itself and often local communities feeling alienated mount organised pressure to demand money from operators. This is noticeable particularly in the Warri port.

    “Indications for state capture exist particularly in Onne and Warri ports, where concessions have been given to Intels as a terminal operator. Also there is no independent place or institution to report corruption occurring in the ports. Complainants have no direct access to ICPC and the Economic and Financial Crime Commission (EFCC) in the ports area or access to alternative virtual mechanisms. Complaints submitted to port agencies are often referred to the very subjects against whom the complaint is filed, or immediate but compromised superiors. As a result there is huge reluctance to report corrupt demands, and stakeholders fear subtle but effective reprisals if they do,” they explained.”

    The report said, while attention is on restructuring operations at the ports including adoption of the Landlord Port Model and concessioning of many ports to private concerns, attention is not given to the agencies, their internal and external environment. Consequently, the organisational culture within those institutions affects their operations in the ports, the report said, adding that insufficient attention is given to ethics development, deployment and compliance monitoring issues at the ports.

    It said Nigeria still doesn’t have an approved National Anti-Corruption Strategy, adding that the system of checks and balances is not entirely effective and needs to be improved.

    The report said: “The nature and limits of legislative and executive oversight needs to be better codified and made more predictable. Also, policy volatility is a major problem. The effects of this include multiple regulators and agencies at the ports in the past few decades. The controversy on the direct inspection contracts at the ports and borders is another example of policy volatility.

    “The declared policy and concession framework required securing direct inspection companies to provide technology, equipment, training and inspection services such as scanning, for a number of years. They were required to use the contract period to train and equip customs officials, and handover operations and equipment at the end of the agreed service period to the Nigeria Customs Service. It would appear that now the contracts have ended, there is reluctance to allow customs takeover.”

    The report noted that despite the adoption of Information Technology (IT) in conduct of ports’ businesses as well as Automated System for Customs Data (ASYCUDA), many operations are carried out manually with the attendant errors and corrupt practices.

     

     

  • Reform: Ministry takes over pension matters from OFHOS

    Reform: Ministry takes over pension matters from OFHOS

    • BPP bars 13 firms from doing business with govt

    THE Federal Government has removed pension matters from the Office of Head Of Service of the Federation (OHSF) to the Ministry of Finance.

    Speaking yesterday in Abuja at the opening of the Bureau of Public Procurement (BPP) workshop on debarment procedure in Abuja, the Head of Service of Federation, Alhaji Burkar Goni Aji, said: “The Office of the Head of Service will henceforth hands-off direct control of pension matters.”

    He said the decision was taken so as to put “a working structure in place,” adding that his predecessors started the reform in the Office of the Head of Service (HoS), including its restructuring.

    He said the government has moved “to reposition the pension office which is going to be under the control of the Minister of Finance under what we call Pension Transition Arrangement Department.”

    Also, the Head of Service, said the Group Life Insurance policy of public servants already approved by the Federal Executive Council (FEC), has been handed over to “the Accountant- General of the Federation for implementation.

    Aji said the government has observed that the procurement processes as stipulated in the Procurement Act, 2007 has been facing some challenges, including the lack of effective monitoring and compliance by implementing MDAs, adding that sometimes there was outright display of lack of honesty by some contractors and complete disregard to laid down rules.

    He explained that these infractions necessitated the various reform measures embarked upon by the BPP to eliminate the identified flops in the process.

    “We used to have a-six-office structure where you have six Permanent Secretaries and 25 departments, complete with directors. But today, the office has shrunk to a-three-office structure in the HOS with only three Permanent Secretaries and 12 directors.”

    BPPDirector-General, Emeka Ezeh, said about 13 companies have already been barred by the Bureau from doing business with the government.

    He said the 13 entities were barred for offering corruption money to people, and generally misrepresenting facts and lying about their capabilities with the view to changing the outcome of the procurement process.

    Specific sanctions for offenders the BPP boss said, “include that they would be debarred from doing business with the Nigerian government for not less than five years, including a fine of 25 per cent of the value of the procurement in question.”

    Ezeh compared the debarment of erring service providers to what he called, the “traditional system of social sanction, in which if you do something that is criminal, the community will bring you to the market square, and say that this person comes from a family that is known to be thieves and everybody will stop dealing with you. That is even more effective than trying to go to court and then we’ll be there forever and nothing will happen.”

    The proposed debarment procedure, Ezeh noted, is one of the mechanisms developed by the BPP to punish procurement related corrupt activities, and inculcate the required discipline in Nigeria’s public procurement system and ultimately improve the way to do business to meet international good practices.

    Corroborating the BPP Director-General, the Secretary to the Government of the Federation (SGF), Senator Ayim, PiysAyim, represented by the Permanent Secretary, Special Duties, Dr. Jemilah Soara, said, government will provide the necessary support and take all steps to ensure the full implementation of the debarment procedure, once it has been agreed on by all the key stakeholders.

    He said: “In furtherance to the government circular debarring any bidder that has been debarred by any international agency, government is happy that we are now developing an in-country debarment procedure that will meet international good practices.”

    Ayim said the government will provide the enabling environment for only serious and ethical contractors and service providers to take part in the Federal Go-vernment’sprocurement process.

  • 10 year jail for violators of procurement process, says BPP 

    10 year jail for violators of procurement process, says BPP 

    The Bureau of Public Procurement ( BPP) has warned that anyone caught circumventing the public procurement process would go to jail for 10 years, the Director General . Emeka Ezeh, has said.

    Ezeh, who spoke when he received the Director-General, National Orientation Agency (NOA), Mike Omeri, in Abuja, yesterday, stressed that nobody would be above the sanction Being a Director-General, or a Chairman does not give any Nigerian the right to circumvent the law, he said, adding that the government wants a situation where if anyone losses in a bidding process, he would be convinced that he lost fairly.

    The BPP he added, is thus canvassing for a change of attitude and character from governments officials and the private sector to make procurement better. “The law says agencies of government should advertise when they have vacancies and then competent people can apply. The law also says before pre-qualifying, you must let the people know the requirements. It is setting the marking scheme before you pre-qualify,” he said.

    He said the agency is aware that some agencies are going against this in their bid to favour some people more than others, warning that “if they are caught, they would be dealt with according to the provisions of the  law,” saying, for the procurement process to be better, officials of government and the private sector should have a change of altitude and character and do what they have been contracted to do.

    According to him, ”it is not the institution that is corrupt, it is the human beings. When you change the character or attitude of people, one will start working better. People do not live by laid down tenets and that is why we have problems.”

    Ezeh added that the job of the BPP “as an agency will be a lot easier if people are able to carry out duties for which they are engaged. We have to learn to manage resources on behalf of the people.”

    Ezeh announced that the BPP would be working with NOA to sensitise Nigerians on what’re procurement process is all about and what is required of them.

    Speaking earlier, Omeri said “many of us know the right thing, but we forget to deploy  it. and that’s why we are enlightening people’s the grassroots on the principles of public  procurement as a lack of it will put pressure on the system. We are taking public procurement to the communities to enlighten the people so that our nation can be better”.

  • NOA courtesy visit to TO Bureau of Public Procurement (BPP)

    NOA courtesy visit to TO Bureau of Public Procurement (BPP)

  • BPP blames Ministry for delay on Lagos/Ibadan expressway

    BPP blames Ministry for delay on Lagos/Ibadan expressway

    The Bureau for Public Procurement (BPP) has absolved itself from any blames in the delay on the commencement of construction work on the Lagos/Ibadan Expressway.

    BPP’s Director-General, Emeka Ezeh, said the delay in the take-off of the project lies solely with the Federal Ministry of Works.

    Ezeh was represented by Ayo Aderibigbe, Director of Compliance, Certification and Monitoring, at the opening ceremony of the second phase of a two-week procurement training course for senior procurement officers of Directors level. He denied insinuations that the Bureau was delaying the project implementation and execution of the Lagos/Ibadan expressway.

    Noting that the ministry drives the process, he said when they are through, they will send it to the Bureau for Due Process Certification, which will forward it to the Federal Executive Council. For now the procurement process is still with the ministry, he stated.

    He said: “The BPP is not delaying the process. Certification comes to us for works that are N1billion and above; for goods, N100 million and above; for consultancy services, N100million and above.”

    However, “for all those below that threshold, he said they are being carried out by the Ministries, Departments and Agencies (MDAs),”.Therefore for contractors to say we are stalling project implementation is not true. For the Lagos Ibadan/ Expressway, BPP is not the procuring entity; we are only regulating the procurement process,” Ezeh, explained.

    He said the time line for the execution of the project would depend on the Federal Ministry of Works. “When they finish, they will forward it to us to issue a Certificate of No Objection, and then we will forward it to the Federal Executive Council for approval,” he said.

    Ezeh said BPP has been able to save N450billion since its inception, and N22billion last year, adding that these savings have been directed to other needs of the Ministries, Departments and Agencies (MDAs), and were not kept by the BPP.

    He said the Bureau saved about N450 million in 2007, explaining that this year’s collated savings has not been made because of budget complications.

  • BPP to assess civil servants for promotion

    BPP to assess civil servants for promotion

    The Bureau of Public Procurement (BPP) will be involved in the assessment of civil servants in the next round of promotion examination and interview.

    Speaking at the International Law Institute (ILI) and BPP workshop for procurement officers in Abuja yesterday, the Chairman of the Civil Service Commission, who was represented by Dr. Hamidu Mohammed, said it was set for the next round of promotion examination and interview for civil servants.

    He said there would be “no recruitment into the procurement cadre without input from the BPP.”

    The bureau, he said, would provide the resources needed to prepare civil servants for promotion examination, as many civil servants, particularly those in procurement, are expected to keep abreast of the modern requirements of procurement.

    Earlier, the Director-General of BPP, Mr. Emeka Ezeh, an engineer, had said that “public procurement reform is one sure way of triggering quality development. It is important to continuously develop our human capacity.”

    According to him, the BPP has been having interactive sessions with different categories of government officials on aspects of the reform.

    Ezeh said the bureau began with the permanent secretaries and moved to the chief executive officers in parastatals.

    He said the bureau has interacted with about 600 senior government officials, “because as decision makers in the implementation of the budget, it is important we compare notes on the rules of best procurement practices.”

     

     

     

     

  • BPP saves N420b in 15 months

    Director-General of Bureau of Public Procurement (BPP), Emeka Ezeh, has said the agency has reduced the cost of contracts in Ministries, Departments and Agencies (MDAs) by over N420 billion in the last in 15 months.

    Speaking at the opening of a retreat for chief executive officers in Federal Government ministries, departments and agencies at the Administrative Staff College of Nigeria (ASCON), in Topo Badagry in Lagos at the weekend, Eze said the bureau will continue to ensure that there is transparency in the bidding process for contracts in Nigeria, even as all competent contractors will be given a level playing field to demonstrate their capacity to deliver.

    He explained that the BPP will continue to work hard to ensure the cost doing business in Nigeria is reduced through the elimination of multiple registration and pre- qualification as well as tendering that should be increased to give chance for equal competence and capabilities.

    Eze said the bureau has gone far in the registration, classification and categorisation of contractors and consultants working or intending to work on Federal Government projects.

    This he said is covered in the Public Procurement Act 2007, which expects the bureau to maintain a national data base of the particulars of Federal contractors and service providers for ease of information sourcing, and analysis in conformity with the needs of the new Information Age. He said: ” Public officials are now also beginning to see public funds as monies to be spent with care, and with high sense of responsibility. Added to these gains are a resultant improved budget implementation and performance in terms of project delivery.”

    He said as the programme develops, the cost of doing business in Nigeria would be reduced through the elimination of multiple registration and pre-qualification and the tendering process should increase at the end of the day, coupled with the better grouping of contractors, consultants and service providers of equal competence and capacities.