The problem with procurement
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One of the problems that governments have been challenged with presently and the past is having a foolproof system for procurements for tenders, contracts and other state requirements. It is cumbersome, takes a long time and at times tainted with corruption at different levels. Procurement goes through different layers of bureaucracy that by the time it is finalised – in some cases it takes more than a year to finalise a procurement – the cost of the project or tender has increased.A few weeks back, the head of a government agency lamented that the procurement process to finalise a nation branding campaign for tourism would probably be finalised only by next year after all procurement processes are completed. This is the bane of the procurement process and in the context of tourism, has been an ongoing battle. This has challenged governments for more than a decade as the nation branding process has been bogged down by bureaucracy so much so that by the time the process is close to being completed, the tourism head has either been changed (the newcomer starts the process all over again) or the ruling party has lost its mandate at an election.
The tourism nation branding campaign is a classic example of the need to create a procurement process that would be fast-tracked at all levels while ensuring transparency, integrity and good governance. Some years ago, a Cabinet minister was accused by a foreign government of demanding a bribe to approve a project with that government’s funding which resulted in funds being frozen for the project. It was only restarted after government assurances that the due process would be followed in the procurement path.
Yes, while procurement processes are necessary to avoid the minister’s alleged bribe example, what the public requires is a speedy process that can be fast-tracked without losing the fundamentals and essence of the procurement system – due diligence, accountability and government oversight.
As I dived deeper into this subject, I yearned for my first mug of tea. Walking into the kitchen, the tea was ready but I was disappointed that there was no ‘kimbula bunis’ as Aldoris, the choon-paan karaya, hadn’t come ‘a-visiting’ with his tuk-tuk filled with breakfast goodies. For the first time, Aldoris hadn’t come down the lane on a Thursday morning. What had happened to him? Was he ill or did he have a family emergency, I wondered, concern taking over the desperation for some sweet food.
Anyway, while in the kitchen I heard the trio in conversation and they were discussing a subject close to my heart – music. It revolved around the late Christopher Paul’s popular hit ‘Wathura Nala’ (bathing with water) which has become more popular (even after the veteran singer’s demise), with the song being played with a dance sequence. The latest version has gone viral with different groups dancing to the rhythm of this catchy song. (Fancy listening to the song? Then check out — https://www.bing.com/videos/riverview/relatedvideo?q=wathura% 20nala&mid=A9FA2826E04B64BE0997A9FA2826E04B64BE0997&ajaxhist=0).
“Aluthma ‘Wathura Nala’ kiyana sinduwe pitapatha janapriya wela (The latest remix version of ‘Wathura Nala’ is very popular),” said Kussi Amma Sera, as she and her friends watched a video of the song on her phone. “Eka lassana sinduwak mae karadara kaley (It is a nice song during these troubled times),” added Serapina. “Mae sinduwata den kattiya natanawa (The song has some dance moves),” agreed Mabel Rasthiyadu.
As I walked towards the office room humming the tune, the home phone rang. It was Ruwanputha, my young economist friend. “One of the challenges the government faces is cumbersome procurement processes which go through many committees and approvals,” he said. “In fact my subject today is about the layers of bureaucracy which govern this process,” I said. “The problem is that while you need a foolproof system, it should be streamlined and the number of steps taken for approval to be given should be reduced,” he said.
Some years ago, Verite Research, a local think-tank said: “Sri Lanka’s procurement marketplace has featured anti-competitive practices that have led to increased corruption: For instance, the practice of accepting unsolicited proposals for large, high-value projects that circumvent the process stipulated by the government’s Procurement Guidelines, and altering specifications to suit the supplier.”
Recently Presidential Advisor Dr. Hans Wijayasuriya also raised the issue of the government procurement process being an impediment to growth, particularly in the IT sector. In a media report, Dr. Wijayasuriya identified the current procurement system as a “major cause of failure” hindering the nation’s technological advancement. “In the government sector, traditional procedures and multiple rounds of objections mean it can take a year to procure an IT system, by which time the technology has moved on and the problem has changed as well,” Dr. Wijayasuriya was quoted as saying in the Daily Mirror, while speaking at the Annual Business Forum of the Sri Lanka America Society in Colombo.
He suggested a move towards outcome-based procurement. “Outcome-based procurement is where you put on the table not the solution, but the problem,” he added. This model invites innovative companies from a pre-registered pool to propose solutions, with the best one selected through trials and proof-of-concept processes. This agility, he noted, is essential for a fast-evolving field like technology.
The International Monetary Fund also recently touched on this subject. It has urged Sri Lanka to enact an effective legal framework in public procurement as the current tender process provides sufficient opportunity for corruption, wastage and irregular decision-making.
Earlier this week, the Board of Investment launched the Gateway Website, an online investment approval system, which speeds up the investment approval process where foreign investors can submit their documents online and get approval as fast as possible. This is what the state’s procurement platform requires – speedier approval of projects and suppliers.
Finally, as I completed this column, I reflected on the events of the past few days where former President Ranil Wickremesinghe was arrested for allegedly misusing state funds and was subsequently given bail and hoped it would not distract the government’s development path, while equally ensuring it’s not tainted with corruption through a complex procurement process.
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