Prime Minister and Minister of Finance, Commodore Frank Bainimarama, speaking from China today said that recent Cabinet decisions and the implementation of on-going Government reforms has showed reduction in Government’s operating costs and was of great benefit to the public.
The Prime Minister and Minister for Finance made particular reference to the establishment of the Fiji Procurement Office to replace the Government Supplies Department.
He said that, the Fiji Procurement Office is a new division within the Ministry of Finance and that the set up is a result of Government’s initiative to re-organize Government Supplies Department with the objective of streamlining Government procurement, and to bring Governments on-going procurement inline with international best practices.
“The new office will take over the functions of the Government Supplies Department and will focus on regulating and facilitating the procurement of goods, services and works for all Government agencies,” PM Bainimarama said.
“The retail centers that used to be run by the Government Supplies Departments will be closed off and Government agencies are expected to purchase directly from approved suppliers,” he said.
He went on to say that as Government adopts International Best Practice, old laws have to be changed for Government purchases.
He said , the Fiji Procurement Regulations is the primary legislation concerning Government procurement now and the new Regulation has been developed taking into consideration the United Nations Commission on International Trade Law Guide to Procurement, guides used by ADB and other Commonwealth countries outlining international best practices on procurement.
It is also aligned with the Government’s broad financial management framework under the Financial Management Act 2004.
“The Regulations will be supplemented by the Procurement Guidelines which will provide information on procurement processes and procedures.
The Minister said that existing and new suppliers to Government should make themselves aware of these changes, as it will impact on how they do business with Government in the future.
One of the major changes he highlighted was that the Fiji Procurement Regulations establishes the one Government Tender Board that will take over the functions of the existing Major Tender Board and Public Works Tender Board.
“This single centralized Government Tender Board will be responsible for approving all procurement of goods, services and works costing over $30,000,” Commodore Bainimarama said.
“Therefore, all tender advertisements and tender submissions for Government contracts will now be lodged with the Fiji Procurement Office at the Ministry of Finance Headquarters in Ro Lalabalavu House.
The Supplies and Services Regulations 2005 and the Public Works Regulations has been repealed.”
However he said, “to maintain consistency, certain provisions in the Finance Instructions that relate to procurement will be included in the Fiji Procurement Regulations.”
The Fiji Procurement Office will conduct rigorous training exercises across whole of Government on the new procurement procedures and processes outlined in the Fiji Procurement Regulations.
This training is expected to commence in early August and will be completed by November of this year.
He said the Fiji Procurement Office consists of four units.
The Tenders Unit will deal with the tender processes and guidelines, the advertising and evaluation of tenders will advise on contract development and management issues.
The Policy Unit will be responsible for developing procurement policies and guidelines, assist government agencies in procurement planning, and provide continuous training on procurement issues.
The Compliance Unit will be responsible for conducting compliance checks on all government agencies to ensure compliance with procurement guidelines and procedures.
It will also monitor the usage of supplier contracts and provide advice to the Government Tender Board.
The Logistics Unit will be responsible for logistical management and operations, customs clearance and warehouse and inventory management.
As an interim measure, the Government Supplies department will run parallel with the Fiji Procurement Office for a period of two months and will be completely closed in September 2010.
The Prime Minister said that that the newly enacted Fiji Procurement Regulations 2010 and the Fiji Procurement Guidelines will promote public confidence in Government’s o-ngoing procurement processes.