Transcript The experience of the public sector with regard to the

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:
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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
Performance of the Private Sector
Some photos
Success Stories: Marshland Infrastructure
Marshland Infrastructure
Marshland Infrastructure
Marshland Infrastructure
Marshland Infrastructure
Marshland Infrastructure
Marshland Infrastructure
Marshland Infrastructure
Results of Marshland Infrastructure
Street & Road Photos
Success Stories: RSSB Real Estate Project
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
Blacklisting
Reasons
for Number/67
blacklisting
Forgery & use of 44
forged documents
%
Failure to perform 20
contract
Both forgery & 2
failure to perform
contract
29.85
Breach of Laws
1.49
1
65.67
2.98
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
Questions?