Africa-Press – Namibia. THE government is racing against time to change the law that will enable the appointment of a central procurement board chief executive officer and ban officials and public entities’ directors from bidding for tenders at the state institutions where they work.
Officials found double-dipping on tenders could face a fine of N$1 million, 10 years in prison, or both.
Finance minister Iipumbu Shiimi tabled the raft of amendments to the Public Procurement Act in parliament last week, paving the way for the appointment of the tender agency’s chief executive officer (CEO).
The contracts of the current Central Procurement Board of Namibia (CPBN) chairperson Patrick Swartz and his deputy Lischen Ramakhutla expire at the end of this month.
Swartz, who served as chairperson and the de facto chief executive of the organisation since 2017, has indicated that he is not available for re-appointment.
PROPOSED CHANGES
The government wants to change the set-up of the board by introducing a CEO position to run the day-to-day operations of the organisation.
Shiimi said the current central procurement board structure has been criticised for not being in line with corporate governance best practices.
“This is because its chairperson and deputy chairperson, who are full-time employees of CPBN, are currently holding dual roles as administrative head and deputy administrative head, as well as chairperson and deputy chairperson of the board,” he said.
He said the public procurement bill aims to separate the roles of the chairperson of CPBN with that of the accounting officer and to abolish the deputy accounting officer position.
The proposed amendments also allow the finance minister to extend the term of office of the chairperson, deputy chairperson and ordinary members of the board.
Other amendments will allow the finance minister to appoint directors for a short time to avoid vacancies on the board, which might affect the quorum and effectiveness of the public entity.
Shiimi said the changes are “urgent considering that the current terms of the chairperson and deputy chairperson of the CPBN are coming to an end at the end of this month”.
DOUBLE-DIPPING
He said the new changes would also prohibit staff members at public entities and members of the board of directors of public entities from doing business with the public entities they serve.
“A contravention of this prohibition is not only considered as a conflict of interest but also a criminal offence punishable in terms of section 66(3) of the act,” he said.
That section says a person who commits an offence is liable to a fine not exceeding N$1 million or to imprisonment for a period not exceeding 10 years, or both.
“This is a moderate measure compared to other jurisdictions where public servants are totally prohibited from doing business with any organ of state.”
The Namibian understands that there were instances where board members were found to have been awarding tenders involving companies they were running in a private capacity.
APPEAL PROCESS
The amendments to the law also change the process of appealing the award of tenders.
Currently, aggrieved bidders are allowed to appeal tender award decisions with the review panel in the finance ministry.
But that too will change.
Shiimi said the amendments to the law would allow aggrieved bidders to first ask the public entity to reconsider its decision — free of any charges — and only approach the review panel when not satisfied with the outcome of the reconsideration.
“This has the potential to decongest the load at the review panel and to alleviate the cost implications on bidders, especially SMEs (small and medium enterprises), as there are no costs involved when applying for reconsideration.”
According to the minister, the amendment also prevents accounting officers from awarding a contract or signing any agreement during the standstill period or while in review.
The finance minister said the new amendments will also clearly define the eligibility criteria for Namibians who qualify to benefit under preferential treatment in tenders.
This amendment was necessary because the government is developing the code of good practice on preferences, he said.
The code of good practice will define categories of Namibians such as the youth, women and SMEs, who will benefit from exclusive preferences.
POOLED PROCUREMENT
Shiimi said the Covid-19 pandemic has taught the government many lessons, including public procurement of essential goods such as vaccines.
As a result, the law will be changed to allow the government to buy essential goods such as vaccines and other essential pharmaceutical and clinical products through the pooled procurement mechanism.
“We have been working extremely hard to amend the law. The law is now in parliament. We would have liked to present it early, but the law-making process takes long,” Shiimi told The Namibian over the weekend.
There are fears that the failure to appoint a chairperson of the board could derail the operations of the central procurement board.
“We are doing everything in our power to ensure that the activities of CPBN are not severely disrupted during the transition,” the minister said.
He said the government has an opportunity to fix governance issues now.
“We will only fill the position of CEO once the current amendments are in force.”
Sources said Shiimi met several high-ranking officials last week to discuss how to move forward in case there is a leadership vacuum.
An advert calling for applicants for the chairperson is being finalised and it is likely to be advertised this week.
Swartz told The Namibian yesterday that the suggested legal reforms are necessary.
“That is what is best for the organisation. It was highlighted as early as 2018, as it could lead to many governance challenges and it is indeed the best time to address this,” he said.
In the meantime, Swartz is set to return to the University of Namibia where he was seconded from in March 2017.
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