, Singapore

Central procurement agency in the drawing boards?

The proposal was made after a new audit report showed glaring lapses in the public sector procurement process.

In its recommendations to the Ministry of Finance, which oversees the rules in public sector procurement, the Public Accounts Committee recommended the creation of a central procurement agency to prevent the same mistakes.

"The Committee is concerned that such lapses undermine the Government procurement principles of open and fair competition, transparency and value for money and could erode public confidence in public sector procurement. A number of these lapses have also resulted in the Government being overcharged, in some cases, with no recourse for recovering the money," the committee said in a report.

"Based on oral evidence received from its hearings, the Committee noted that officers overseeing large procurement projects may not have the requisite expertise or experience. Such officers may also be rotated in the midst of a project. The Committee therefore suggests that MOF considers the option of setting up a central procurement agency," it said.

"With such a central agency, smaller ministries and statutory boards especially those where the management of large procurement projects is not part of their normal or regular operations, can opt in to use the services it offers. The Committee also feels that specialist career development and institutional knowledge on procurement and project management can be developed and retained in such a central procurement agency," it added.

"With regard to approving authorities, the Committee is of the view that given the important role that they play as gatekeepers of public funds, there is a need for 5 them to be properly briefed and trained on their responsibilities before they assume the role," it said.

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