Tuesday, March 13 2007

GOVERNMENT is fine-tuning its new public service procurement policy and e-auctions can reduce instances of possible corruption in public procurement procedures. This was disclosed yesterday by Minister in the Ministry of Finance Christine Sahadeo during an e-auction seminar at the Hilton.

Recalling Government has already laid a White Paper on Procurement in Parliament which outlines new legal and regulatory framework for public procurement, Sahadeo said Government is not dragging its feet on implementing the new regime (which will include all government ministries, regional health authorities, statutory authorities and state enterprises).

“The reason for the delay in moving forward is that we have received several further recommendations and inputs which are currently under review,” she said. Prime Minister Patrick Manning has publicly stated that Government will bring legislation to Parliament to repeal the Central Tenders Board Ordinance and replace it with a new Act that will govern the procurement activities of all entities that use public money.

Explaining that modernising procurement procedures allows more effective management of the expenditure side of Government’s budget, Sahadeo said e-auctions have gained global recognition as “a source of saving considerable savings in terms of time and efficiency, while still adhering to the principles of good governance.”

The minister said the United States, Britain and Brazil have also adopted e-auctions as part of their governmental activities. She added that Government will work closely with local business organisations to ensure that the e-auction playing field is level for local and foreign suppliers.

Sahadeo said the Water and Sewerage Authority (WASA), Yara and TSTT have all successfully implemented e-auctions. Petrotrin, National Gas Company and the National Energy Corporation have decided to implement e-auctions as part of their activities.

WASA Corporate Services Manager Leslie Figaro said the company has saved some US$4,392, 896 in its procurement procedures by using e-auctions with the help of US firm, Ariba Inc.

E-auction presentations were made by British firm PA Consulting and US firms Ariba Inc, SAP and Perfect Commerce. SAP regional manager Freddy Torres revealed that his company has been active in TT since 1986 when it first offered its services to the now defunct BWIA.

PA representative Julian Laite said his firm has been active in the region, helping countries such as Jamaica and Guyana with their public sector reform initiatives. Laite said the best solution to public sector reform was ensuring that local officials in various countries could implement solutions themselves without reliance on foreign consultants.