Bringing light to licences

Procurement by government ministries and agencies has always proven to be an operation riddled with problems and uncertainties. To bring procurement in line with 21st Century thinking the Procurement Reform Committee has decided on the Principle Model as the way to go in any new procurement regime. This is revealed in the committee’s Green Paper now out for study. Since government’s policy in Vision 2020 is for greater transparency and accountability in the public sector decision-making, the system must therefore deal with all the components of the public procurement cycle and affect all involved in public procurement. From this perspective, therefore, the Principle Model, appropriately adapted to the economic, social and political environment of TT can make a significant difference in all instances of procurement. The Principle Model will provide an overarching framework for all agencies involved in procurement using public funds, with immutable parameters in which the operating principles are not negotiable.

As a matter of fact this model addresses many of the weaknesses in the current system. The Principle Model recognises the validity of the tendering process of agencies, but provides an overarching uniform system, which affects all transactions thus ensuring non-negotiability on the fundamental operating principles of value for money, transparency and accountability. It also  increases openness and accountability enabling greater scrutiny by the public; enables stakeholder participation in the development of policies and guidelines; enables flexibility to accommodate technological change; removes ambiguities in the operating relationships and strengthens Parliamen-tary oversight of public expenditure in procurement; enables greater monitoring of contract execution; and provides a specific dispute resolution mechanism and proposes clear sanctions in the event of breach. The new procurement regime will apply not only to the acquisition of property and services involving public funds, but also to divestment of public assets, such as lands and other resources owned or managed by the State or State agencies.

It will also apply to major concessions and licences, including, but not limited to those related to energy and communications, granted by the State and State agencies. To ensure that these principles are adhered to, there will be put in place a mandatory legal requirement of compliance in every transaction involving expenditure of public money and which will be supported by appropriate penalties in the event of non-compliance. Compliance with these principles will be fostered by training and guidance in conjunction with monitoring by an independent regulator, directly answerable to Parliament and would be therefore established as a statutory body. Prime function of the regulator would be to proactively ensure an efficient and relevant procurement system that conforms to the operating principles, which would require constant review of policies and guidelines. The major change therefore, will be the full decentralisation of the procurement system. All procuring agencies will be directly responsible for their own procurement and therefore directly accountable for the quality of their decisions and the efficiency of their systems, to parliament.