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The Daily Star
Monday, February 23, 2009
Technology
E-purchase to check rigged bids
MD Hasan
It has become almost customary that politically-backed groups muscle in on the scene, when the government invites bids for development projects.
Political meddling in bidding processes is an open secret. The practice comes to the fore when a political government sits in power.
The most recent example of such political interference, reported by the media, was a showdown at the National Sports Council by a political group to grab a development project worth Tk 8 crore.
Electronic government procurement (e-GP) shows a way out of the age-old intervention in bidding processes by cartels with political leanings.
According to a study by the World Bank, Bangladesh"s annual public procurement expenditure is over $3 billion (Tk 20,512 crore). Such figures can obviously attract politically biased interest groups to loot tender boxes by any means, as development expenditure is expected to grow in coming years.
In Bangladesh, more than 80 percent of the annual development expenditure is spent mainly on government procurement.
The countrywide major development projects are conducted by different agencies, starting from the Prime Minister"s Office to local government entities.
E-GP, one of the government projects, matches the government"s pledge to build a Digital Bangladesh by 2021. The system, if implemented, can save public money and erase political influence from bidding.
In association with the World Bank, the Central Procurement Technical Unit (CPTU) has started groundwork to implement e-GP under the public procurement reforms project-2 (PPRP-2).
CPTU is responsible for monitoring and implementing the law and rules in public procurement. The entity thinks that if the government goes for an online bidding process, no-one can exert muscle power.
The idea of a virtual bidding process could also save more than 15 percent of the government"s procurement costs, according to a World Bank study.
Electronic government procurement (e-GP) is the use of information and communication technology (ICT), especially the internet, by governments in conducting their relationships with suppliers for the acquisition of work, goods, and consultancy services required by the public sector.
E-GP would also connect the government body and the national and international contractors on an online platform, which automates the entire government"s procurement process by introducing centralised registration of contractors, e-tendering, e-contract management system, e-payments, e-signature and e-security.
In around 50 countries, e-GP has been proved as an effective tool in the fight against corruption, the promotion of integration and the stimulation of greater productivity not only at government level, but also in small and medium enterprises.
The main intention of CPTU is to gradually introduce e-GP in the government"s procurement system and to ensure all stakeholders comply with the Public Procurement Act-2006 and the Public Rules-2008.
One of the major reasons of scuffle during government tendering process is--bidders are not aware of the Public Procurement Act-2006 and the Public Rules-2008.
In this case, online bidding can also be platform for study of the procurement policies, observed CPTU officials.
Welcoming the initiative, Zahid Hossain, managing director of Mir Akhter Hossain Ltd, one of the major contractors of government works, says the initiative can bring transparency to the government"s procurement system.
However, he says, "The tendency of manipulating the tendering process by government officials should be stopped in running e-GP."
Contractors who work for implementing the government"s development projects, says paperless bidding may encounter post bid political influences.
E-GP requires internet access for the bidders, primarily the major hurdle to implementing the system, followed by acute power crisis.
The information technology-lagging nation may take time to adopt the system. But the upside is the system can save the country from numerous causalities over the tendering process.
CPTU officials say they are talking with internet service providers, to bring contractors into the internet network.
"We are moving cautiously," says Amulya Kumar Debnath, director general of CPTU. “This initiative should be introduced such that no questions arise regarding the process.”
He says CPTU will launch e-GP initially on a pilot basis in four government agencies including the Local Government Engineering Department (LGED), Roads and Highways Department (RHD), Bangladesh Water Development Board (BWDB) and Rural Electrification Board (REB), by April 2009.
"If the system runs well, without any difficulties, then it will disseminate to other government entities," says Debnath.
He says the deciding voice behind the introduction of such a system should come from the bidders community. "If bidders come forward, it will be possible to conduct hassle free bidding by e-GP."
Bangladesh has been ranked the world"s most corrupt country for long by Transparency International. One of the major reasons behind corruption, the TIB found, was the government entities" mismanagement of development projects.
"With the launch of e-GP, everyone must comply with procurement rules, which will remove corruption," says the CPTU director.
To introduce e-GP, the CPTU has already started training government officials to handle the tender processes.
However, there is no scope to use online payment when bidders would pay the bid amount. The CPTU says some scheduled banks would conduct the payment.
The government is set to launch e-GP on an experimental basis in April. But a setback lingers: red tape.
But Finance Minister AMA Muhith"s recent speech that emphasises government procurement through electronic systems raises hope for the launch of the project.
hasan@thedailystar.net |
