Africa-Press – Namibia. THE allocation of public tenders to staff members of State-Owned Enterprises (SOEs) and members of the Board of Directors of Public Entities will soon be a thing of the past with the new Public Procurement Amendment bill introducing new rules which will prohibit this practice.
This was revealed by the Minister of Finance of Iipumbu Shiimi who highlighted some of the critical amendments contained in the Public Procurement Amendment Bill which has gone through an extensive consultative process.
Shiimi stated that public procurement is an important policy tool for safeguarding the use of public finance to ensure effective and efficient service delivery by public institutions and the advancement of the national development agenda in general.
He further explained that the new Public Procurement Amendment Bill inserts section 66(2B) to prohibit staff members of 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) the Act. This is a moderate measure compared to other jurisdictions where public servants are totally prohibited from doing business with any organ of State,” Shiimi said.
He added that the Bill also amends section 71 to clearly define the eligibility criteria for Namibians who qualify to benefit under the preferential treatment in procurement.
Shiimi explained that this amendment was necessary in view of the fact that the ministry is in consultation with the Procurement Policy Unit busy developing the Code of Good Practice on Preferences.
The Code of Good Practice is required to be issued in terms of section 70 to give effect to the national and exclusive preferences provisions under the Act, in pursuance of the developmental and empowerment agenda of the Government.
The Code of Good Practice will particularly define categories of Namibians such as the youth, women and SMEs, who will benefit from exclusive preferences.
Shiimi concluded that it is imperative to constantly review the current legislation in order to fill the gaps identified from time to time to ensure that the public procurement system remains responsive to constant changes in the socio-economic environment.
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