Follow proper guidelines in awarding contracts, meet told

 PROVINCIAL supply and tenders boards must follow proper procedures in awarding contracts to private companies, a government workshop has been told.

Acting Deputy Secretary for Implementation and Rural Development Badira Vari said this during a workshop for senior public servants from Southern Highlands.

The two-day workshop was held in Mt Hagen, Western Highlands.

Vari also highlighted new administrative guidelines and financial instruction on how to use various grants under the province, district and local level government service improvement programmes.

He said that before awarding contracts, the provincial supply and tenders boards must check that companies were registered with the Investment Promotion Authority (IPA), pay tax to the Internal Revenue Commission (IRC), had sufficient money in the bank account, and must have own machines and skilled manpower to carry out 

the work.

“My office doesn’t want the contracts to be awarded to K2 companies or companies just registered with the IPA now and contract awarded tomorrow,” he said.

He added that on many occasions, contracts were awarded to “K2 companies” that were paid without carrying out any work or left without completing their tasks.

“We want contracts to be given to reputable companies with money and resources to carry out the work and complete it in a given time,” he said.

Vari also stressed that companies must be genuine and pay their goods and services tax (GST) to the IRC.

Ialibu district planner Mathew Poi told the workshop earlier that proper procedures were not followed when awarding contracts in the province.

Poi claimed that provincial supply and tenders board did not look at the capacity of the companies before awarding contracts, which resulted in many companies “escaping” with the money and leaving their tasks incomplete.