By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The prime minister yesterday pledged that legal reforms will surround some $1.4bn in annual government spending with greater transparency and accountability.

Dr Hubert Minnis, speaking on the Public Procurement Bill during its second reading in the House of Assembly, said the legislation will help deliver better taxpayer value for money when it came to expenditure equivalent to 13 percent of Bahamian gross domestic product (GDP).

“Procurement systems clearly have a significant impact on the efficiency of the use of public funds and, more generally, on public confidence in government and on good governance,” he told MPs. “In the local context, the sheer importance of these activities is evidenced by the central government’s $1.4bn in public procurement spending, which approximates nearly 13 percent of the country’s GDP.

“My government is all about establishing an efficient procurement system; attaining the best value for money spent on behalf of Bahamians; ensuring public access to information on government contracts; and providing fair opportunities for suppliers to compete for government contracts.”

Dr Minnis acknowledged that government procurement processes have traditionally been plagued by problems associated with “the lack of transparency and efficient market competition”, together with the “absence of a legal framework that promotes high standards in line with international best practices”.

He added that there has also been a frequent “lack of reconciliation between budget amounts committed and procurement requisitions”, and an over-reliance on manual processes, with reform proving an “elusive” goal across successive administrations.

“The Public Procurement Bill we have before us today is designed to promote economy and efficiency in the use of public funds, to conduct procurement in a fair and transparent manner, and to support an increase in the number of small Bahamian-owned businesses involved in the public procurement space,” Dr Minnis said.

The overhaul will be spearheaded by a Public Procurement Department (PPD) headed by an as yet-unnamed chief procurement officer. Its responsibilities will include development and management of the electronic supplier registry and procurement bidding and awards system.

“Currently in its pilot phase, the Government’s e-procurement system already today has just over 2,000 vendors registered in the system and it is being used by 38 government agencies. The Bill will institutionalise the requirements to utilise this digital platform or any other platform as may be mandated by the PPD.”

A Public Procurement Board will allow civil society to provide oversight of government procurement processes, with each public sector agency required to establish its own procurement unit. A Procurement Review Tribunal will also be established to allow bidders to appeal awards if they have been wronged.