the proposed review of the Public Procurement Act to prevent abuses, he will state if consideration will be…
(No. B/71) Mr A. Duval (Fourth Member for Port Louis North & Montagne Longue) asked the Prime Minister, Minister of Defence, Home Affairs and External Communications, Minister of Finance, Minister for Rodrigues and Outer Islands whether, in regard to the proposed review of the Public Procurement Act to prevent abuses, he will state if consideration will be given to amending Schedule 2 of the Act forthwith to include all State-Owned Enterprises and Special Purpose Vehicles not currently listed therein.
Madam Speaker, I thank the hon. Member for the question. Indeed, there have been numerous abuses of the public procurement system by the previous Government.
23 One of the most striking and conspicuous abuse has been during the COVID-19 period for the purchase of medical supplies and equipment. Madam Speaker, that is why in the Government Programme of 2025-2029, we have announced that the Public Procurement Act will be reviewed. Our aim is to prevent abuses, strengthen accountability, and enhance transparency and integrity in the public procurement system. The review will also aim at aligning our procurement system with international best practices. It will enforce better contract execution and supplier performance. With regard to the question of whether consideration will be given to amending Schedule 2 of the Act, I wish to clarify to the House that all the Schedules, including the Second Schedule, previously under the Public Procurement Act (PPA) were repealed as from 20 July 2023, and incorporated under the Public Procurement Regulations 2008. Madam Speaker, clearly, the current public procurement system needs to be improved. Some issues need to be addressed urgently. First, the current legislation is based on an outdated 1994 United Nations Model Law on Procurement. Second, there is a lack of oversight over excluded and exempt public entities. Third, there are too many entities dependent on public funds, which are not covered by the Public Procurement Act. It appears, Madam Speaker, that a few of them may have been deliberately excluded so that nobody can see what was happening. Fourth, the system is discriminatory. There is no level playing field. I will give you an example: housing construction is being undertaken by the National Housing Development Company Ltd (NHDC), which is under the PPA; however, there is a New Social Living Development Co. Ltd (NSLD), which is also responsible for housing construction but does not fall under the PPA. How is that possible? We do not understand! Similarly, the NDU is responsible for drains construction and operates under the PPA, whilst the Drains Infrastructure Construction Ltd (DICL), also involved in drains construction, does not. One can only guess, Madam Speaker, why such a discriminatory
24 approach – it beggars belief. We know what has happened. We know. We have heard just now how many millions have been – I don’t know –whether pocketed or wasted or whatever. Madam Speaker, during the review of the public procurement system, consideration will be given to cover, as far as possible, all entities which involve public funds for their operations, and for which Government is accountable in Parliament. Unlike the previous Government, we will make this accountable. This approach is also in line with our plan to introduce a legal framework for greater fiscal responsibility. To make it clear, unlike the previous regime, with this Government, generally whenever there are public funds involved, there should be accountability for every rupee and every cent that is spent from public funds. This was never the case before. I can assure the House that Government will have an oversight on the procurement by all entities using public funds. Madam Speaker, I wish also to reassure the House that this Government is fully committed to ensure that there is a transparent and effective public procurement system in place which promotes value for money both in terms of monetary value and quality. Very often, we forget about quality. The cheapest is not necessarily the best. So, monetary value, quality, accountability, integrity, fairness, and efficiency in the use of public funds at all levels. I have no doubt, Madam Speaker, that these reforms will reaffirm public trust in the public procurement system.
Thank you.
Madam Speaker, I am glad to hear from the hon. Prime Minister that he intends to have a level playing field for public procurement wherever public funds are involved. But as a matter of urgency, will the hon. Prime Minister consider adding all those SOEs and Special Purpose Vehicles that exist today since the legislation was enacted in 2006 by his Government and have not been specifically included under the application of the Act, and whether these would be done now as a matter of urgency, notwithstanding future amendments that may be brought?
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This is precisely what I said. Wherever there is public money involved, every rupee and every cent of public money which is spent will fall under the new PPA Act.
Your next question! You have another one?
Yes, on the same subject. Madam Speaker, it can be brought by way of regulation. The question is very direct: can the hon. Prime Minister tell us what is the hold-up for adding all those SPVs and SOEs now under the control of the Public Procurement?
For ten years, nobody thought about it! Now, when we are doing it, you are in a rush to know why and when? An hon. Member: Exact!
We will do it when we are ready to do it!
Okay, next question now!
… tonn manze bwar kan to ti Speaker!
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