To get public money’s worth

THE Central Supply and Tenders Board (CSTB), that all-important government entity which oversees the Government’s procurement of public goods and services will undergo much needed reform as of next year.
The CSTB will be replaced with a procurement commission under the Procurement Act which is expected to be passed by Parliament next March, according to an announcement by the Department of Finance.
The new law would be part of the overall reform of government accounting processes and systems under the leadership of Finance Secretary Dr Ken Ngangan.
In recent weeks, the department has announced similar and related changes that the public would want to see as steps to not only work smarter but also to eliminate inefficiencies, abuses and loopholes that result in a lot of wastages.
Dr Ngangan has announced that the Procurement Act would integrate and overhaul all public accounting and procurement systems with strict guidelines and procedures to follow.
Non-compliance of rules under the new act would be an offence and there should be no deviation or excuse.
The CSTB has come under a lot of criticism in recent times and even in past years.
It is one government institution that has and will always be under a much public scrutiny because of its very role in dealing with public money in the millions and even billions of kina.
A case in point is the recent awarding of contracts worth tens of millions of kina for major infrastructure developments in the National Capital District.
Apparently some members of the public have reason to question the value of some of these contracts, since the scope of work involved did not seem to match the money paid.
The social media in particular was flooded with questions and innuendo that individuals and companies had pocketed more money they should have.
The infrastructure directly related to the 2015 Pacific Games especially attracted a lot of criticism from the public.
Claims of overpricing in the case of some of the facilities have not been put to rest completely.
There is some speculation that the country did not get value for money in these instances.
Yet without any real cost-benefit assessment done by relevant experts, much of this would remain just that, speculation that may be based on limited information or half-truths.
It is hoped that the Procurement Act would also deal with provisions such as cost variations and certificates of expediency which have been open to a lot of abuse in the past.
Cost variations can sometime result in government spending a lot more money than it has budgeted for projects.
It also reflects badly on those involved in budgeting and project cost estimation.
In provinces outside of NCD, the role of the CSTB and respective provincial supply and tenders boards have likewise been called into question when contractors paid to deliver goods and services had failed to do so satisfactorily and to cost.
There is no question that a lot of public money has been wasted through government procurement over the years because of varying reasons, including non-compliance to laws and regulations.
Change or reforms are therefore necessary when existing systems failed to accomplish the desired outcomes, in this case prudent procurement systems to deliver value for money.
Given the history of poor delivery and instances of real or perceived overpricing in government procurement hopefully the amended Public Finance Management Act and the soon-to-be passed Procurement Act would eliminate some of the existing loopholes in the system.
It should be said however, that good laws are only as good as those placed in positions to enforce them.
The amended laws may not achieve the intended outcomes if civil servants entrusted with responsibility do not have the drive to make them work.
Public servants working in the department and its allied agencies also need reforms with a view to shed some of the old public service “customs” that have for years impeded efficient performance of their roles.
The Department of Finance has already made a start to change the way it does business for the better management of public finances.
The change must be allowed to continue for the Department to avoid lagging behind in this fast changing world of corporate governance.