Editorial | Better bang for taxpayers’ buck

Jamaica has made significant strides in improving its procurement and public investment systems.

That progress can be tracked, among other ways, from the establishment of the Contracts Commission, the build out of a significant bureaucracy in the Ministry of Finance, to the implementation, since 2015, of a procurement law that established the Public Procurement Commission (PPC).

Additionally, a Government of Jamaica Electronic Procurement System (GOJEP) is now fully operational. GOJEP’s aim is to streamline the procurement process by managing tender calls, bid submissions, evaluations, and contract management. By most accounts, this mechanism has brought considerable improvements in the standardisation, transparency and efficiency to the government’s procurement process.

These efforts are further buttressed by the PPC’s launch of a Contractor and Consultant Performance Evaluation Programme aimed at ensuring that the government gets better value and improved contract performance for the money it spends by hiring, from the start, people who are more likely to do the jobs well.

Yet, from the anecdotal evidence, to declarations at the April conference in Jamaica on public procurement and Finance Minister Nigel Clarke’s observations during his Budget speech in March, it is obvious that there is much more to be done if the island is to achieve the goals set out in the law as it pushes towards a more ambitious programme of public investment.

It should be clear that government procurement isn’t about spending peanuts. For example, in 2022/23 the Integrity Commission (IC), according to its report to Parliament, monitored more than J$436 billion on construction contracts alone, over which approximately US$621 million was denominated in US currency. A lot of taxpayers money is on the line.

FAILURE TO ATTRACT PROFESSIONALS

Among the problems is the system’s failure to attract sufficient procurement professionals at the calibre, and technical competence, to operate this critical area of national development. Many people involved in deciding how these huge sums are spent and ensuring that taxpayers get the full value for their investment, are, for the most part, paid relatively little.

If Jamaica is to ensure that public funds are used efficiently, transparently, and effectively to foster sustainable development and economic growth it has to urgently address the already noted inefficiencies – including overly complex, multi-layered approval process for large procurements – which often results in significant delays that cause, or contribute, to elongated timelines and to high rates of procurement failures. Indeed, this was a concern highlighted by Finance Minister Clarke in his Budget speech when he promised reform.

This, however, doesn’t mean that Jamaica should retreat from a robust legal and regulatory framework, which are critical cornerstones of any good and efficient national procurement system. What Jamaica must do is build on the solid foundation of its Public Procurement Act.

This means, among other things:

• Continuous refinement and updating of regulations to align with best practices and to address emerging challenges;

• Ensuring stringent compliance and enforcement mechanisms to prevent fraud and corruption; and

• Firmly committing to transparency and accountability as a means of building public trust in the procurement process.

For instance, all procurement-related activities, including tender notices, bid evaluations, and contract awards, should be easily accessible to the public. An independent oversight body to monitor procurement activities and address grievances should be in place. That would further strengthen accountability.

Put another way, a thorough project appraisal and selection process is crucial for ensuring that public investments provide value for money and align with national priorities. Jamaica does have a rudimentary system in place for doing this. However, the country needs rigorous criteria and methodologies for appraising and selecting projects. Regular monitoring and evaluation of project implementation are essential to track progress and ensure that projects are completed on time and within budget. The value for money proposition in the procurement system will not be realised without this area operating effectively.

REGULAR MONITORING

Additionally, Parliament must pay attention not only to egregious breaches that come before it, or be put in a position to do so. In other words, there should be regular monitoring and review of the entire procurement system.

For example, additional functionalities to the GOJEP system, such as automated alerts for procurement deadlines and real-time tracking of procurement stages would help in this regard, while contributing to a reduction in delays and improving process management.

But enhancing the system must go beyond Parliament or internal oversight modules. The system must allow for participation from various stakeholders, including the private sector, civil society, and local communities. Engaging stakeholders ensures that diverse perspectives are considered, enhancing the relevance and acceptance of projects. Establishing feedback mechanisms to allow stakeholders to voice concerns and contribute to decision-making can further improve the system, while regularly adopting new technologies and innovative practices will also reduce transaction costs and improve efficiency.

In addition, the procurement arrangements should be incorporating policies that prioritise local content, sustainability, and socio-economic benefits.

Further, there should be a robust risk assessment framework to help identify, assess, and mitigate risks throughout the procurement and investment life cycle. This requires having clearly defined, and monitored, key performance indicators (KPIs) to determine the efficiency, effectiveness, and impact of projects.

A very critical, but often overlooked, aspect of the procurement process is the need to professionalise its staff. That’s vital.

This requires continuous training and development programmes for procurement officers to enhance their skills.

They have to be paid well to attract the best and brightest. Certification and accreditation programmes should be introduced to ensure the professionalisation of procurement corps.

Government should develop a clear career pathway for this group so that the best talent can be retained in the system.

This newspaper is aware that the minister of finance discussed this matter in the past, with too little result.

Action is now urgently needed.