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The Experience of the Public Sector with regard to the Performance of Suppliers in Rwanda. Pascal Bizimana Ruganintwali Permanent Secretary/Deputy Attorney General Ministry of Justice, Rwanda. Presentation to the 4 th Annual East African Public Procurement Forum. Today we will discuss:.
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The Experience of the Public Sector with regard to the Performance of Suppliers in Rwanda • Pascal Bizimana Ruganintwali • Permanent Secretary/Deputy Attorney General • Ministry of Justice, Rwanda Presentation to the 4th Annual East African Public Procurement Forum
Today we will discuss: • Role of the private sector • Success Stories • Weaknesses of the private sector • Capacity building • Problems with bids • Engaging the Government of Rwanda • Recommendations
Introduction • Developing countries need to work faster and perform better • Role of private sector enhanced • success stories with the private sector in availing basic infrastructure that may give lessons
In this presentation • Private Sector“ includes suppliers, contractors and consultants from foreign, regional and domestic markets • “Procuring Entity” & Public Sector—government agencies • “Company”—firm which provides services works or goods
The role of the private sector in public procurement • Private sector is a key player in social & economic development • Provides a Government what it needs & enables it to deliver to public what it is supposed to deliver • Potential bidders generally have more information than the procuring entity about the market • private sector is the partner providing the best answer to the needs of the procuring entity
Successful realizes the objects of the procurement • Key implementer since his role is the only one perceptible to the public beneficiary • Importance of building public trust important • E.g. failure of Government to provide housing to Genocide survivors
Recognition of Success by GoR • RRA introduced a debt certificate in order to facilitate trustworthy companies to participate in public procurement despite tax debts • Independent Review Panel at National and District levels
Weaknesses of the Private Sector and Areas Needing Improvement
General Comments • Poorly prepared bids • Giving false information about their capacities including forging documents • Poor execution of contracts
What do we expect from the Private Sector • needs to be fair with procuring entities • Lack of trust in public officials by the private sector? • Companies suffer silently from misbehavior or unethical conduct of public officials involved in public procurement • RPPA encourages companies to report malpractices to empowered authorities or to follow routes provided by legal provisions.
Capacity Building • capacity should cover technical skills, managerial capacity and providing themselves with the tools and equipment necessary to perform contractual assignments well • Some failed to get a procurement contract or to perform their contractual obligations, because of lack of enough skilled staff • lacked capacity to manage resources (human & financial) • others lack honesty and conduct governed by professional rules
Problems with Bids • Bids often contain imperfections due to ignorance or lack of skills in the subject matter of procurement • Characterized by ignorance of public procurement procedures and careless to instructions contained in bidding documents, with or without fraudulent intention. • Procurement officers always find this fact in procurement proceedings; the National Independent Review Panel met it frequently, when examining claims lodged by claimant bidders.
Problems with Bids • terms or conditions of a tender document are ambiguous or not clear or when specifications are poorly defined; • Rare to see bidders acting in order to improve the bidding document and make it more clear, accurate and impartial • Due to attitude and ignorance. • Such act can not contribute to the implementation or promotion of the fundamental principles of public procurement and achieve their objectives: competition, transparency, fairness, economy & efficiency
Bid Preparation • Forgery • False documents in bids including: • bid securities • tax clearance certificates • social security fund certificates, • trade licenses • certificates of successful completion • false statements & declarations of key staff or misrepresentations concerning staff
Need for Integrity • Integrity or probity is needed in all the processes of procurement • suppliers abuse and take advantage of weaknesses of procuring entities • instead of being a solution to the procuring entity, suppliers are abusers and cause of failure of public procurement • Seen in all types of procurement
Works • failure of the contractor sometimes happens with complicity or inability of the supervising company • lack of respect of contractual deadlines and breach of contract requirements by suppliers • unusual to find a contractor or a bidder formally reminding or reporting the failure of the procuring entity to do so in order to help and contribute to the performance of the contract • look for loopholes that can help them taking advantages of procuring entity weaknesses
Consultant Services • take advantage of inability of government officials to judge the quality of their products and are paid for substandard work • If the assignment is in the area of governance other than the design of infrastructure, the product may be reports that could be impossible to implement • If it is in the area of design of infrastructure, many flaws appear during construction which make contract management very difficult
Consultant Services • challenge/riddle: in international best practice consultants are required to provide performance guarantee. • Examples where consultants have produced poor work include: CAMERWA warehouse, Media audience survey (Media High Council), Plagiarism (MINICOM)
Recommendations • form and strengthen professional associations • strive to be conversant with the legal framework • adhere to the business code of ethics and implement it • increase dialogue with Government of Rwanda
