Supervision of Public Procurements and Punjab Local Government Act 2013

We have already seen in the article ‘New Policing and Administrative Systems’, that positive social systems may be erected by coupling state institutions with non-state institutions. One such model of collaboration between the state institutions and non-state institutions (the institutions not involved in state decision-making) may be designed in the sphere of public procurements. In order to put public procurements under effective supervision of peoples’ representatives-acting as non-state institution- at gross-roots level, a system based on collaboration between district state institutions and non-state institutions may be erected in the light of Punjab Local Government Act 2013 with some amendments in the prevailing Procurement Rules 2009 and Regulations of Office of Ombudsman Punjab. The salient features of such public procurements system are described in the succeeding lines.

1   There will be District Procurement Committees in each district. Each government department/district authority in a district will work out its  procurement requirements in the district. The procurements  for each government department/district authority in a district  will be made through the concerned District Procurement Committee.  A District Procurement  Committee may be established for  more than one  departments in a district.

2   Each District Procurement Committee will consist of:

i.             Chairman of a District Procurement Committee, other than a District Procurement Committee established for a district authority,  will be a concerned district officer appointed by the Government; Chairman of a District Procurement Committee established for a district authority will be head of the district authority appointed by the Government;

ii.          Concerned district officer/s other than the Chairman, or officer/s of the concerned authority, appointed by the Government; 

iii.         Technical members- Not more than two technical experts  appointed by the Government, keeping in view nature of the procurement;

iv.        Two elected members – one councilor taken from the concerned District Council, and the second one from the concerned Municipal Corporation or Municipal Committee whichever is the District Headquarters. In case of Metropolitan Corporation, both elected members will be taken from the Metropolitan Corporation.

 3.  In District Procurement Committee, procurement related decisions will be taken only by non-elected members of the  Committee. However elected members may provide input necessary for reaching a decision to be taken by the concerned District Procurement Committee. Elected members will be authorized to attend all meetings of the District Procurement Committee and will have access to all documents relating to any procurement process undertaken by the Committee. The role of elected members will be to monitor whether or not procurement process undertaken by the District Procurement Committee is being conducted according to PPRA Rules 2009.

3.1.      The elected members will be authorized to hire services of one technical expert having sufficient know-how about the technicalities involved in a procurement  undertaken by the District Procurement Committee;

3.2.      The elected members of a District Procurement Committee will be elected in the manner described under sec. 17(3) of Punjab Local Government Act 2013.

4 If procurement is related to civil works in rural areas, all members of concerned Union Council and District Council will be authorized to have access to relevant documents of the scheme and to monitor such scheme. Similarly if  procurement is related to civil works in urban areas, all members of the concerned Municipal Committee, Municipal Corporation or Metropolitan Corporation will be authorized to have access to relevant documents of the scheme, and to monitor such scheme.

5  If any concerned elected councilor, or elected or non-elected member of the District Procurement Committee finds any violation of PPRA Rules 2009 in connection with any procurement undertaken by the District Procurement Committee, he will  require the District Procurement Committee to rectify such violation. If the objected violation is not rectified, such councilor or member may complain against such violation to the concerned Supervisory District Procurement Committee.

5.1.      All decisions of District Procurement Committee will be taken on basis of majority opinion;

5.2.      If District Procurement Committee is satisfied that a violation of PPRA Rules 2009 has been committed in the process of procurement undertaken by the Committee, the Committee will be authorized to rectify the violation, or to scrap the procurement process provided the violation leads to, or reasonably may lead to loss of public funds;

5.3.      The supplier aggrieved of any decision made by the District Procurement Committee may appeal to the concerned Supervisory District Procurement Committee for seeking remedy.

6  In each district, there will be three types of ‘Supervisory District Procurement Committees’.

6.1.      First Supervisory District Procurement Committee will be chaired by DCO, and this Committee will deal with the appeals or complaints received in respect of procurements of goods and services.  Second Supervisory District Procurement Committee will be chaired by the Chairman District Council and it will deal with appeals and complaints relating to procurements of civil works in rural areas. The Third Supervisory District Procurement Committee will be chaired by Mayor of the concerned Metropolitan Corporation or Municipal Corporation or by Chairman of Municipal Committee and it will deal with appeals/complaints relating to procurements of civil works falling under the jurisdiction of such Metropolitan/Municipal Corporation or Municipal Committee.

6.2.      The First Supervisory District Procurement Committee will, in addition to the Chairman, consist of two non-elected members appointed by the Government, and two elected members. One elected member will be taken from the District Council, and the second will be taken from the Municipal Corporation or Municipal Committee whichever is the District Headquarters. In case of Metropolitan Corporation, both elected members will be taken from the Metropolitan Corporation. The Second Supervisory District Procurement Committee will, in addition to the Chairman, consist of two non-elected members appointed by the Government, and two elected members. One elected member will be taken from the concerned Union Council in whose jurisdiction the civil work is to be done, and the second member will be taken from the District Council. The Third Supervisory District Procurement Committee will, in addition to the Chairman, consist of two non-elected members appointed by the Government, and two elected members. Both elected members will be taken from the concerned Metropolitan/Municipal Corporation or Municipal Committee in whose jurisdiction the civil work is to be done.

6.3.      All elected members of Supervisory District Procurement Committee will be elected in the manner described under sec. 17(3) of Punjab Local Government Act 2013.

6.4.      All complaints/appeals received by Supervisory District Procurement Committee will be decided by the Committee within fifteen working days after receipt of such complaints/appeals. If complaint/appeal received by the Supervisory District Procurement Committee is not decided within fifteen working days, the appellant/ complainant may take his appeal/complaint to the District Ombudsman.

6.5.      If Supervisory District Procurement Committee, on receiving an appeal or complaint, is satisfied that any violation of PPRA Rules 2009 has occurred in the procurement process undertaken by the District Procurement Committee, the Supervisory District Procurement Committee will be authorized to rectify the violation; to scrap the procurement process provided the violation leads to, or reasonably may lead to, loss of public funds; or to stop the procurement process till the appeal/complaint received is decided upon.

6.6.      Supervisory District Procurement Committee will be authorized to hire services of maximum two experts having technical know-how about the procurement under consideration.

6.7.      All decisions of Supervisory District Procurement Committee will be made on the basis of majority opinion.

6.8.      Record of all proceedings undertaken by District Procurement Committee and Supervisory District Procurement Committee will be properly maintained in the manner described under sec.140(4) of Punjab Local Government Act 2013.

6.9.      There will be a separate office for District Procurement Committees and District Supervisory District Procurement Committee which will be properly staffed by the concerned Chairman of the Committee and DCO respectively.

6.10.  An appeal against the Supervisory District Procurement Committee’s decision in respect of appeals/complaints received by the Committee, will lie to the District Ombudsman.

7   In each district, there will be a District Ombudsman who will not be a civil servant and will be appointed by the Government for an un-extendable period of five years.  If District Ombudsman, receiving an appeal or complaint, is satisfied that any violation of PPRA Rules 2009 has occurred in the procurement process undertaken by the District Procurement Committee/ Supervisory District Procurement Committee, the District Ombudsman will be authorized to rectify the violation; to scrap the procurement process provided the violation leads to, or reasonably may lead to, loss of public funds; or to stop the procurement process till the appeal/complaint received is decided upon.

7.1.      Any decision made by the District Ombudsman, on receiving an appeal or complaint, will not be appealable to any executive authority.

7.2.      District Ombudsman will be authorized to hire services of maximum two experts having technical know-how about the procurement under consideration.

7.3.      District Ombudsman may recommend disciplinary/ criminal proceedings to be initiated against any member/ councilor willfully involved in loss of public funds in respect of any procurement of which appeal/complaint has been received by the Ombudsman.

In order to establish public procurements system on the pattern delineated above, provisions contained in Punjab Local Government Act 2013 may be resorted to. For instance, procurements relating to District Health Authority and District Education Authority may be entrusted to District Procurement Committee under sections 95 of PLG act 2013. Similarly in order to include elected members in the District Procurement Committees and Supervisory District Procurement Committees, sec 120 and 121 of PLG act 2013 may be resorted to.