The Anti-Corruption Commission Annual Report 2014, says the procurement system in the country is highly flawed. The report says the publicly procured works, goods and services are more expensive and generally of poor quality. “This has led to the never ending cycle of building, purchasing and repairing of these products over and over again, involving huge costs to the State and its citizens.”
In the last nine years, the Anti-Corruption Commission (ACC) received more than 500 complaints on procurement, the third highest after resources and land. A multilateral agency has defined the government’s procurement process as “tight” on paper requirements, but “loose” on enforcement during implementation.
The report says that if the finance ministry, which is the competent authority on procurement, studies a random sample of procurement of goods, services and works, huge unnecessary costs and weaknesses will be revealed.
“Lyonpo Dorji Choden has highlighted the need to review the whole procurement system and perhaps even revise it to make it more relevant than transparent,” said the Prime Minister, Tshering Tobgay. He said the ministry will review it and there will be some constructive changes.
The commission’s report shows that public procuring agencies fail to follow due diligence measures required by the nature of the public procurement. It also says the agencies do not compare the market price to determine reasonable price to screen bids.
“The very requirements and conditions fulfilled by a bidder on “paper” which formed the basis for the award of contract are not followed and no penalty levied.” The report also says the country lost huge resources due to delay in taking timely decisions on correcting flaws and will continue to lose if not intervened.
