Members of Parliament have given the green-light to the government’s proposal
to raise the threshold for single-source procurement contracts, signaling a
significant shift in procurement policy.
Leader of Government Business in the Upper House Senator Adrian Thomas
championed the amendment to the Public Procurement and Disposal of Public
Property Act, during a recent sitting of the Upper House of Parliament,
underscoring the importance of enforcing existing regulations to uphold
transparency and accountability in government spending.
“What we need to do is enforce them so that we can guarantee we get value for
money. Let us not sit here and believe that it is too risky to move it from
EC$15,000 to EC$100,000.”
“We trust our people, we trust ourselves and we believe that Grenadians have
come to a stage in their life now where it is important to give value for money
and the State must be respected for that.”
Sen. Thomas emphasised the need to adapt to evolving economic realities while
ensuring value for money.
Although the amendment seeks to increase the procurement threshold,
regulations and conditions for Government contracts will remain the same.
Originally approved in 2014, the Act which created the Public Procurement
Commission came into force on April 21, 2015 by an Order signed by then
Finance Minister Dr Keith Mitchell, who is now the Leader of the Opposition in
the Parliament.
The amendment to the Public Procurement and Disposal of Public Property Act,
has sparked concerns regarding oversight and competency in managing larger
sums of public funds.
Opposition Senator and former Infrastructure Development minister Norland
Cox admitted that there was some level of failure in the original law to not
provide clarity when it comes to awarding EC$15,000 contracts, but however,
voiced concern that moving single source contracts from EC$15,000 to
EC$100,000 could have implications not just for Government, but for those who
will be awarded single source contracts.
“I believe there is a need for an increase but what we have not heard is how we
arrive at this EC$100,000. There is too much of a grey area; EC$100,000 is not
about trust… it’s about competencies and practicalities,” Sen. Cox contended.
He also highlighted the importance of assessing the competency of individuals
entrusted with managing substantial sums of public funds to prevent misuse or
mismanagement.
“We all know that if someone doesn’t have the competencies to manage large
sums of money it can easily be spent. It is within that context my concern is
centered around,” he said while requesting to know the formula used to move
from EC$15,000 to EC$100,000.
The former New National Party (NNP) government minister questioned if it is
“practicable to give somebody EC$100,000 without proper oversight, ensuring
that their estimates are correct and ensuring that the person has the capacity
and competency to manage the project.”
“It ( the amendment) didn’t say what the EC$15,000 can be used for and now in
trying to address certain measures you find that EC$15,000 is becoming more
and more difficult to be awarded,” he said, expressing the view that, while there
is a need for an increase that EC$100,000 is too excessive.
The debate underscores the delicate balance between facilitating efficient
procurement processes and safeguarding against potential risks of
mismanagement or corruption.
The amendment to increase the threshold for single-source procurement
contracts will take effect immediately after being published in the Government
Gazette.