US urges speed on procurement overhaul; tackling of nepotism, favouritism

June 2, 2015 | By KNews | Filed Under News, Source

The new government should make it a priority to establish the Public Procurement Commission (PPC). It should also ensure that clear ethical guidelines are in place to address perceptions of nepotism and favoritism.

US ChargÉ d’Affaires, Bryan Hunt

US ChargÉ d’Affaires, Bryan Hunt, who made this comment, said that the practice of sole sourcing in the procurement process by Government would need an urgent rethink.

The issue of corruption in the procurement system and conflict of interest had been a hot button under the previous People’s Progressive Party/Civic (PPP/C) administration.

Moves to establish the PPC have met one obstacle after another.
There have been accusations of contracts being handed out to close friends and favourites; there have also been questions over engineers’ estimates being grossly exaggerated.

Contractors who claimed they have been sidelined have complained bitterly of having no place to raise their concerns or get relief.
The PPC with its sweeping oversight powers over state contracts was widely expected to address these concerns.

According to Hunt, “Everybody wants it; everyone believes it is going to make a difference…I think they should do it.”

The official, who has been outspoken on a number of issues, including the outcome of the recent General Elections which saw PPP/C losing its 23-year grip on power, noted that the new administration under President David Granger, has committed to taking steps for the establishment of the Procurement Commission in its first 100 days in office.

New GPC’s Dr. Ranjisinghi ‘Bobby’ Ramroop

He believes that it is one area that should be addressed “very, very quickly”.

Sole Sourcing
With regards to sole sourcing, the ChargÉ‘d’Affaires had misgivings, stopping short of saying, that the procurement system was abused under the PPP/C administration.

He explained that sole source tendering “in a very limited way” makes sense. For example, when an entity provides a particular service or product that is not available elsewhere, “for example, procurement of a particular defence item manufactured by a particular company. Sole source procurement might make sense…”

“You have to have an open and transparent procuring system, to which everybody has the ability to bid.  I think they have to move away from the idea of sole sourcing for expediency.”

The issue of sole sourcing has divided the Government and the Opposition during the last Parliament. This was after it became known that Government named New GPC as its preferred supplier of pharmaceuticals, doling out billions of dollars, annually, to the Ministry of Health and the Georgetown Public Hospital Corporation.

New GPC is owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of former President Bharrat Jagdeo.

There were questions by a Parliamentary oversight committee over the price of drugs and its delivery.

Bharrat Jagdeo

 

The coalition had vowed to review, especially the practice of sole sourcing, which was more so glaring in the case of the New GPC.

The US official also believed that the new Government should pull out all stops to ensure there are no conflicts of interest when it comes to state contracts.

There should be clear ethics guidelines for Ministers and Senior Public Servants.

President Granger had promised to ensure Ministers sign code of conduct agreements governing their behaviour while in office.

Perception, Nepotism

The issue of nepotism, favouritism and “the perception of nepotism and favoritism” is something that has been a real problem in Guyana, he says.

With Guyana a small society, the issue will have to be tackled head-on.

Under the Jagdeo administration, the son of President Donald Ramotar was hired to head the E-Governance project which involved the running of a fibre optic cable from Brazil. That part of the project had been halted after running into technical problems because of difficult terrain and breakages.
Ramotar’s daughter was hired to head the Guyana Gold Board.

A number of relatives of high ranking officials of the PPP/C were also placed in top positions or benefitted from state contracts, granted in questionable manner.

“Whether there is any impropriety or not, the appearance has to be dealt with. So I think the idea of ethic pledges, ethics code of conduct for senior Ministers, public servants…you have to clearly lay down the guidelines of what you have to do.

“If one of your family members happens to be working in an industry that is regulated by your Ministry, and should bid on a tender under your purview or is looking for a contract, how do you recuse yourself? How do you handle it?”