Transcript Slide 1

Ethics and Due Process Compliance
in Public Procurement
Emeka M Ezeh, OFR
&
James O Akanmu, PhD, FNSE
Bureau of Public Procurement
Highlight
On the Marble
Ethics and Ethical Requirements in Public Procurement
The Due Process in Public Procurement
Offences
Sanctions
Way Forward
Tools for Compliance
Conclusion
2
On the Marble
NOTE THAT IT IS NOT
• What we eat but what we digest that makes
us strong;
• What we read but what we remember that
makes us learned;
• What we profess but what we practice that
gives us integrity.
Ethics
•What are ethics?
1: a discipline dealing with good and evil
and with moral duty
2: moral principles or practices
• Business ethics include practices and behaviours
that are good or bad
OK, so what does “moral” mean?
1: of or relating to principles of right and wrong
2: conforming to a standard of right behavior
4
Right behaviour?
• So, who determines “right” behaviour?
– Society?
– The government?
– God?
– Basic human nature?
– Profession
5
Why talk about ethics and Integrity?
To Avoid:
•Corporate failures
•Questionable professional practices
To prevent:
•Moral decadence
•Corrupt practices
DrJOAkanmu/ethics/nse/2011
Fraudulent
practices
6
Why Leaders behave ethically
1. To avoid some punishment
Most of Us
2. To avoid some punishment
3. To be Responsive to family, friends or Superiors
Many of Us
4. To be a good Citizen
Very Few of Us
5. To do what is right, pursue ideal, such as justice
7
Ethics and the Law
• Law often represents an ethical minimum
• Ethics often represents a standard that
exceeds the legal minimum
Frequent
Overlap
Ethics
Law
8
To be ethical,
You must
You must
• Demonstrate
Integrity
• Exercise
Leadership
• Practice
Competently
• Promote
Sustainability
9
DUE PROCESS in Procurement is
• the legal requirement that the Procuring Entity
must respect all of the legal rights that are owed
to the
Staff,
• Suppliers, contractors and service providers, and
• the government.
• a generic expression used to describe the
combination of all the Laws, rules, regulations,
standards and procedures which must be
followed in the effective public procurement
DUE PROCESS is NOT
• wilful violation of the Law, laid down rules and
regulations; it is not about circumventing the Law,
rules and procedures;
• driving on the wrong side of the road or driving
against traffic or jumping traffic lights;
• interfering with the bidding process
• exerting undue influence on the public
procurement process to manipulate and steer the
award of contract to a preferred contractor and
pre-determined winner of a tender.
DUE PROCESS IN PUBLIC PROCUREMENT
1
Need Assessment
and
Procurement Planning
4
3
2
Prepare
Bid
document
Advertisement
Collection &
Submission and Opening of
Bid
5
Evaluation
6
Contract
award
7
Contract
Preparation
8
Signing of
contract
9
Performance
Of
contract
Advertisement
• Advertisement shall be in line with Section 25
and provisions of the regulations that guides
the type of procurement
Bid Opening, Examination and
Evaluation
• Section 30
• prescribes the due process required in Bid opening
• Section 31
• prescribes the due process required in Bid Examination
• Section 32
• specifies the due process required in Bid Evaluation
• Section 32 sub section 2
– The Objective of bid evaluation is to determine the
Lowest Evaluated Responsive Bid
Award and Approving Authorities
• To award a contract, the approving authorities
include the following:
– Accounting Officer
– Tenders Board
– BPP for Certificate of No Objection
To award a contract, the approving authority is
determined based on service wide approved
threshold as given in the Circular
Due Process in Complain Procedure:
Section 54
• All complaints must firsts be addressed to the
Accounting Officer.
• Accounting officer to decide complaint in writing
addressed to complainant within 15 working days,
• Provides right of appeal to Bureau if there is ( failure
to decide or if unsatisfied by decision).
• Bureau has to decide in writing within 21 working
days.
• Provides access to Federal High court within 30 days
of BPP decision if not satisfied with BPP decision
16
Way Forward
We must agree to have these core values in all
our activities:
•
•
•
•
Integrity, Accountability and Transparency;
Respect; Meritocracy;
Creativity; Team Work; Open Mindedness;
Social Responsibility
Way Forward
Code of Conduct for Officials, suppliers, contractor
or service Provider, Tenders Board Member
• Section 57
–
–
–
–
–
Honesty
Accountability
Transparency
Fairness
Equity
Can we agree that we shall follow the provision of
Section 57 sub section 1 to 13?
WAY FORWARD
•
Selflessness: Officials should take decisions solely in terms of the public
interest. They should not do so in order to gain financial or other material
benefits for themselves, their family, or their friends.
Integrity: public official should not place themselves under any financial
or other obligation to outside individuals or organisations that might
influence them in the performance of their official duties.
Accountability: Public officials are accountable for their decisions and
actions to the public and must submit themselves to whatever scrutiny is
appropriate to their office
DrJOAkanmu/ethics/nse/2011
19
Way forward…
• Openness: Officials should be as open as possible about all
the decisions and actions that they take.
• Honesty: Engineers and public officials have a duty to declare
any private interest relating to their public duties and to take
steps to resolve any conflicts arising in a way that protects the
public interest.
• Leadership: Officials should promote and support these
principles with leadership by example.
• Recognize the right of your contractors/consultants to make
money too!
DrJOAkanmu/ethics/nse/2011
20
In this world everything changes
except good deeds and bad deeds;
these follow you as the shadow
follows the body.
21
INTEGRITY
• Guidelines, rules, and policies do not make us
honest. They only mark the pathway we
should follow. Each one of us must make our
own decisions, based on our own values and
courage. Only when we make ethical
behaviour a reflex action as natural as
breathing will we truly possess INTEGRITY.
22
Can we proudly say Integrity works
here?
• Integrity is not easy.
• It doesn’t allow us to take shortcuts.
• It may mean accepting a short-term sacrifice
to create a long-term benefit.
• Integrity can sometimes even make us
temporarily unpopular.
23
Integrity…
• When we encourage and support each other
in making the right decisions, integrity is no
longer difficult.
• It becomes the norm that we all follow and
the bond that holds us together.
• It is up to each of us to create a place where
we can proudly say, "INTEGRITY WORKS
HERE.”
24
Offences and Sanctions- Section 58
•
Some of the Offences
–
–
–
–
–
–
–
Bid Rigging – Pre-arrangement of offers where winners have been
predetermined
Collusion
Splitting of contracts
Procurement Fraud using undue influence, favour, bribery,
Altering procurement document
Willful refusal to allow Bureau and its officers access to any
procurement records
Using fake documents like TCC, etc.
25
Sanction or PENALTY FOR VIOLATORS
Section 58
•
For a natural person not being a public official
–
–
•
Section 58 subsection 1
Jail term of not less than 5 Calendar years and not exceeding 10
calendar years without option of fine
For officers of the Bureau, UNN, FME etc
–
–
–
•
Section 58 subsection 5
Jail term of not less than 5 Calendar years without option of fine.
Summary Dismissal from Government Service,
Contractors, Suppliers or Service Providers
–
–
–
–
Section 58 sub section 6
Debarment
A fine equivalent to 25% of the value of the procurement in issue
Every Director of the Company is liable on conviction to Jail term of
not less than 3 Calendar years but not more than 5 years without
option of fine.
26
Think About this. Any
Violation?
•
James is part of a team evaluating proposals for a competitive
procurement for a Procuring Entity.
•
At dinner, after a week of evaluating
proposals, James shares his opinions and
observations with his wife, a professional
colleague, about the differences between the
proposals.
Violation?
27
Think About this. Any
Violation?
•
Major Ishaq is the Army representative to a team evaluating
proposals for a competitive procurement for Ministry of Defence.
•
Major Ishaq’s commanding officer asks for a brief on how the
evaluations are going. Major Ishaq provides him with an overview of the
strengths and weaknesses of each bidder.
28
Ethics Summary
•
•
•
Ethical behavior is your responsibility if you are involved with Public
Procurement
Rules are often complicated with many exceptions
If you are not sure, seek guidance
–
–
–
–
–
•
Public Service Rules
Section 57, PPA, 2007
ICPC ACT
EFCC ACT
NIGERIAN CONSTITUTION
Document your efforts to obtain clarification/ approval
29
Compliance will become easier if you
will:
•
•
•
•
•
•
Promote Excellence in place of Mediocrity
Put Nation and the profession before self
Be an asset not a liability
Provide solutions to problems
Keep promises
Not defraud the Govt and Contractors or
service providers
• Follow Due Process in Public Procurement
30
Thank You
Thank You