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National Assembly approves procurement reform motion

December 2, 2024
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By mid-next year, the government’s Procurement Rules and Regulations may undergo significant changes. Yesterday, the National Assembly endorsed ten recommendations presented as a motion by the Lamgong-Wangchang Member of Parliament to enhance transparency, accountability, and economic growth while reducing corruption and audit memos.

The motion with the recommendations was presented to address the challenges faced by contractors and suppliers under the 2023 Procurement Rules and Regulations.

Key recommendations include promoting joint ventures and outsourcing design tasks to private consultants.
“These recommendations will benefit the government by reducing corruption and expenditure, promoting economic development, and creating job opportunities. Additionally, they offer an opportunity to minimise audit memos,” said Sonam Tashi, MP, Lamgong-Wangchang, Paro, NA.

The Lamgong-Wangchang MP also called for the disqualification of bidders with negative records and for making retention money accessible in a phased manner.

The recommendations also proposed removing district-based restrictions to encourage national competition, implementing e-procurement systems, improving monitoring mechanisms, and introducing robust selection criteria.

Most members present in the House supported the motion.
“Bringing changes to the Procurement Rules and Regulations will support the Anti-Corruption Commission’s aim to reduce corruption,” said Namgay Dorji, MP, Khamdang-Ramjar, and Trashi Yangtse, NA.

“Whether it is the government, ministries, or agencies, we should avoid providing limited and direct tenders. By doing so, all business entities will have the opportunity to participate, reducing disparities,” said Lhendup Wangdi, MP, Bji_KarTsho_Uesu, Haa, NA.

Meanwhile, the finance minister said that the government is reviewing the Procurement Rules and Regulations and will present a progress report in the next session of Parliament.

The Bartsham-Shongphu MP also proposed introducing a Procurement Bill.
“As it is only a regulation, when there are unfairness, we have nothing to rely on or measures to tackle these issues. Based on my experience, this is where the problem arises. In the past, we have also discussed the need for a Procurement Bill,” said Rinchen Wangdi, MP, Bartsham_Shongphu, Trashigang, NA.

The Speaker directed the finance ministry to review and implement the recommendations.

These reforms align with Bhutan’s 13th Five-Year Plan, which features a record budget of over 500 billion ngultrum, with nearly 50 per cent allocated for capital expenditure.

Karma Wangdi

Edited Sherub Dorji

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