Bid-rigging defines corruption in Public Procurement
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PPADB wants parastatals to follow its procurement procedures: PPADB Executive Director, Bridget Poppy John
Parastatals and other quasi-government institutions have been urged to exercise due diligence in public procurement so that government as the biggest buyer of goods and services in the economy gets the most reasonable and competitive fair price.
Legal Counsel at Competition Authority (CA), Kesego Modongo, told attendants at a workshop organised by Public Procurement and Assets Disposal (PPADB) that it is crucial to have vigorous competition among suppliers since it helps government to obtain the best value for money for the goods and services they procure.
He asserted that when competition is curtailed taxpayers’ money is wasted as governments pay more than a fair price. Modongo defined bid rigging as fraud and conspiracy against society since it is costly to the society.
Briefing the attendants, who formed part of their respective institutions’ Tender Committees Modongo explained that bid rigging occurs when bidders agree among themselves to eliminate competition in the procurement process, thereby denying the public a fair price.
He said in the past, the CA registered a number of cases relating to bid-rigging and warned that proper detection is needed in order to curb this kind of mischief in public procurement.
Modongo stated that bidders can eliminate competition in public procurement in many simple ways like by agreeing to submit a non-competitive bid that is too high to be accepted or contains terms that are unacceptable to the buyer, or in some instances competitors agreeing not to bid.
According to him, in some instances some companies chose to withdraw a bid from consideration or agree to submit bids only in certain geographic areas or only to certain public organizations.
The legal Counsel also noted that although the schemes used by firms to rig bids vary; the intention is to eliminate competition so that prices are higher and the government pays more.
However, he said finding signs of possible bid rigging do not necessarily mean that bid rigging is occurring; it simply shows that there may be a problem. In this instance, the best thing for procurement officials to do is to contact the CA to investigate the signs detected.
Parastatals were also implored to review the bidding process and the bids carefully, looking for any additional signs of possible bid rigging. And to achieve that, procuring entities were advised not tell any of the bidders about their concerns, as this may result in the destruction of evidence. Instead the procuring entity should make sure that detailed notes, records and documents are kept safe.
Procuring entities were further urged to be careful when dealing with a small number of bidders since the probability of bid rigging is higher if there are a few bidders. Attendants were told bid rigging requires bidders to reach an agreement that eliminates competition.
Modongo said Tender Committees should not be out-smarted by bidders as procurement is very important to the development of any economy, particularly a developing one like Botswana.
The Tender Committees were also implored to devise a mechanism of monitoring whether the bidders have had the opportunity to communicate with each other, and look for any relationships among the bidders after the successful bid is announced.
Examples of bid rigging investigated by CA in the past include the Security Tender Case in which the bidders were found to be having identical telephone contacts, the Sugar Beans Case, and the Infant Formula Milk Case.
Directorate on Corruption and Economic Crime (DCEC) official, Oreemetse Dipatane said corruption remains a concern in Botswana’s economy and public procurement is one area where corruption is rife.
Part of the problem, as observed by Dipatane is poor service delivery as citizens may elect to use bribery to receive favour in terms of service offering. In leadership positions, corruption is motivated by greed and the power of influence in decision making.
PPADB Divisional Manager-Works, Dudu Thebe advised parastatals Tender Committees against “exclusive rights” bidding where the procuring entity specifies the type of the brand they want in the Invitation To Tender (ITT) documents since this would automatically eliminate a number of competitors.
Parastatals were also advised to implement government policies in their procurement to ensure that locals are especially small business and those in the informal sector benefit from the public procurement.
The Local Procurement Scheme (LPS) dictates that preference be introduced in tenders falling within the financial threshold of the District Administration Tenders (DATCs), currently at P2 million to P4.5 million.
The purpose of the scheme is to empower the disadvantaged groups, namely, the youth, people with disabilities, women and rural suppliers through public procurement preferential treatment.
The PPADB Act gives procuring entities to purchase or get services from suppliers for the services with a value less than P30 000. Thebe however advised them to have a list of suppliers in their data base and also implored them to make an effort to engage different service or goods providers.
However, what has proved to be a concern across all parastatals is that, quasi-government institutions are faced by a problem of lack of adequate knowledge and technical skills relating to procurement.
PPADB has been engaging different stakeholders in capacity building workshops in an effort to instil integrity in public procurement. Last year, PPADB engaged all government ministries Tender Committees in a similar workshop.
PPADB, DCEC and CA officially launched a Memorandum of Understanding (MoU) in which they will cooperate against bid rigging and collusive tendering in 2011.
According to the OECD, of all government activities, public procurement is considered one of the most vulnerable to fraud and corruption. Therefore government policies and procedures in public procurement remain integral as weak governance in public procurement hinders market competition and raises the price paid by the administration for goods and services, directly impacting public expenditures and therefore taxpayers’ resources.
Corruption has severe impacts in developing countries like Botswana where public procurement accounts to more than 70 percent of the Gross Domestic Product (GDP).
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BPS, Mosala Funeral Parlour butt heads over SA national remains
A squabble has broken out between Pule Mosala Funeral Parlour and the Botswana Police Service (BPS) over the remains of a South African national who has been in the Mosala mortuary for more than nineteen months. The deceased was one of 10 suspects who were controversially shot dead during a lengthy shootout with law enforcement authorities in Gaborone’s Phase 2 early last year.
The deceased individual’s family based in Soweto, has encountered difficulties in repatriating the body which has been in the care of Mosala Mortuary Services. Following the incident, it has emerged that all 10 bodies were transported to PFG mortuary in Lobatse for a brief period while the police attempted to locate their next of kin. It is reported that the families of the deceased were eventually identified and informed to come and identify their loved ones, including other South African nationals who were part of the criminal group. These families also witnessed the autopsy procedures conducted at Princess Marina Hospital in Gaborone.
Except for the family from Soweto, nine of the bodies were claimed and taken by their separate relatives. The Soweto family claims they lack the resources to bring the body back to South Africa and has made it known that they are looking for money. To end the supposed verbal agreement over the body’s storage for repatriation, Mosala Funeral Service has filed a case against the police at the Lobatse High Court.
According to Keakantse Mmotlhana, the company’s Sales and Marketing Manager, 10 people who were killed in Phase 2 by gunfire were all temporarily transferred to one of PFG’s branches in Lobatse by the police while efforts were made to find their next of kin. She expressed outrage at the statement made by the Minister of Defense and Security, recently.
After Assistant Police Commissioner Dipheko Motube called her office to apologize for giving the Minister wrong information during a news conference, she confirmed that they had accepted the apologies. He made it clear that one of the victims was still at Pule Mortuary in Lobatse.
Bushie Mosala, the director and owner of Mosala Funeral Services, confirmed that the body of a South African national has been in his mortuary for the past nineteen months. He expressed his desire for the police to remove the corpse from the mortuary, characterising the situation as a “nightmare.” He has instructed his legal team to file a lawsuit against the police in the Lobatse High Court concerning the body.
Mosala urged the acting Police Commissioner to come forward and apologize to the nation for the situation, asserting that the public has the right to know the truth regarding the body of the South African national, w
C -002Bhich was preserved by the police as evidence.
The South African High Commission in Gaborone had not responded to queries from Weekend Post at the time going of going to press.
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BOSETU frustrated by Gov’t new dispute winning strategy
Botswana Sectors of Teachers Union (BOSETU) has expressed alarm over a troubling trend by the government. Tobokani Rari, Secretary General of the BOSETU, stated that it appears that these days, whenever there is a dispute between workers and the government, the administration is fast to run to the courts to attempt and muffle unions.
“This is quite disturbing development, we have seen it with the Botswana Doctors Union, there was a disagreement over the shift allowance, government rushed to court, they indeed got order that was saying the doctors should go and do the work. We have seen it with the nurses, they rushed to court they got the order, we are now seeing it with the teachers, they rushed to the court and they got what they wanted,” said Rari, who also served as the Secretary General of BOFEPUSU.
Rari raised concerns that the government’s enforcement of teacher’s work, through a court order will result in reduced classroom productivity and morale. Rari added that this situation would negatively impact labour relations and teachers emotional wellbeing due to dissatisfaction in their work places leading to persistently poor academic outcomes.
“You can get an order that forces people to work, but what happens at work, it heightens emotions, it destroys relationships and the morale goes down and productivity does. Courts and judgments don’t solve productivity issues. Productivity only comes when people are satisfied at the workplace, so if you force them to work through a court order then you may not get the maximum out of the working population,” said Rari
MESD vs BOSETU COURT CASE
“As you are aware, the Ministry of Education approached courts and they were demanding three things from the court in this case between BOSETU and the ministry. First, they were demanding that the joint letter that was written by BOSETU and Botswana Teachers Union (BTU) asking members to stop doing course work because there was no agreement be declared unlawfully and BOSETU should write to its members and withdraw that letter within 24hrs. The second thing that they were looking for, was to interdict BOSETU from further issuing any instructions to that effect going forward. Lastly was that court should hold BOSETU to pay the cost of the lawsuit on a punitive scale,” Rari said.
Rari stated that the court decided to rule in favour of the Ministry of Education on all three relieves sought, that the savingram should be declared unlawful, that BOSETU should withdraw the contents savingram within 24hrs.
Court also said BOSETU should not issue any of such instructions going forward up until the case of contempt that BOSETU has taken to court, the contempt of the 2009 judgment has been decided. Court also awarded cost to the ministry on a punitive scale.
“BOSETU is a law abiding citizen and therefore we are bound by any laws and judgments that are there in Botswana and arise on the courts of Botswana hence we have complied with the order. On the 31st after the court case, we wrote to all our members and told them that the contents of that savingram as far as coursework is concerned has been withdrawn,” said Rari.
Rari said what happened in this case is that the judge decided to listen to the urgency without the responding affidavits of the opposing party, BOSETU, and went on to rule the merit of the case, which surprised the union.
“However we have been in discussion with our lawyers because if we leave things like this, we feel like we cannot leave that unchallenged. We have taken a decision to appeal the judgment,” Rari confirmed.
2023 COURSEWORK AND INVIGILATION AGREEMENT
“We would like to make our members aware that the following day after the judgment, we were able to meet the Ministry of Education and we have arrived at a conclusion that we signed an agreement that coursework rates will be increased by 5%. If court had ruled that coursework is the duty of the teachers’ means it wouldn’t have been any agreement after the court case, it tells you that the issue is still open and it is on the table. We have arrived at an agreement that there is going to be an increment on all components of coursework and invigilation,” Rari pointed out.
Rari further explained that Article 2 says union party is to submit detailed proposals on the intensity of the coursework for further engagement. Intensity of coursework means where the coursework payment starts in terms of varying from different subjects. He said the outcome based subject that are taught Maun Senior Secondary School and Moeng college which are agriculture and hotel and tourism is that ministry have agreed and acknowledge that there are some peculiarity in their coursework and therefore should be paid in line with the peculiarities that are contained in their coursework.
CONGRESS RESOLUTION
Rari pointed out the resolutions taken at the conference where the issue of application of corporal punishment was addressed. “BOSETU will issue out a memo to their members to advise them that they should not apply corporal punishment, they should leave it to be applied in line with the Education Act.”
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BMC sees red as mass buffaloes disrupt plans to supply schools
The Botswana Meat Commission (BMC) which had struck a deal with the Ministry of Education to supply some schools in the northern part of the country is counting losses as mass migration of buffalos jeopardize the Commission’s plans.
Information reaching this publication shows that the beef exporter was recently given the greenlight to supply government schools with beef. According to documents seen by this publication, as a result BMC had scheduled to buy and collect cattle in the Nata-Gweta and Boteti constituencies from 11 to 17 September.
This was after BMC and the Ministry of Education struck a deal for the former to supply government schools with beef. Letters exchanged between Ministry officials state that it has been recommended to the ministry to support BMC by allowing it to supply schools with beef products.
The Ministry indicated that it was aware that some schools have contracts that are currently running with suppliers such as local butcheries.
The Ministry revealed that at the same time BMC has 256 tins of frozen quality meat at its Maun Plant.
The Ministry requested the Director-Regional Operations to appoint an officer to manage the procurement of meat for schools that do not currently have running contracts. The Ministry further stated that Modalities of collection will be arranged between the region and the schools identified.
According to the Ministry, a list of schools including the condition of their cold rooms and their number of deliveries and kilograms per week they buy should be compiled. The Ministry also requested its officials to share the list with headquarters and the acting director-Basic Education, and engage BMC accordingly to procure.
But this plan ran into trouble after it emerged that between 300 to 500 buffalos migrated from the buffalo fence area to Nata, Dukwi and Mosetse areas.
The Department of Veterinary Services sprang into acting by revising movement protocol for cloven-hoofed animals with immediate effect following buffalo sightings in zone 3b which covers Nata/Sowa, zone 3c which is around the Dukwi areas as well as zone 6a, which covers the Mosetse area, which fall under zones, 3b, 3c, 5,6a and 8.
The Department of Veterinary Services indicated that as a result, movement of live cloven-hoofed animals and their products out of zones 3b, 3c, 5, 6a and 8 were prohibited and that movement of live cloven-hoofed animals within and into these zones is only allowed for direct slaughter at licensed slaughter facilities under veterinary movement permit issued through BAITS.
The department also indicated that the movement of fresh products derived from cloven-hoofed animals such as raw milk, skins and fresh meat into these zones is also only allowed under a similar arrangement.
Movement of live cloven-hoofed animals into these zones for rearing and other purposes will not be allowed, and farmers and the general public is requested to continue being vigilant and report any buffalo sightings to the nearest veterinary office, the police or the Department of Wildlife and National Parks, the department said.
Meanwhile the Ministry of Agriculture has stated that following the press release on prohibition of movement of live cloven-hooved animals and their products in and out of Zones 3b, 3c, 5, 6a & 8, the acting Minister of Agriculture Karabo Gare, his counterpart Acting Minister of Environment, Wildlife & Tourism Mabuse Pule, acting Permanent Secretary in the Ministry of Agriculture Mr. Joshua Moloi, Director of Veterinary Services Dr Kefentse Motshegwa and other government officials visited the areas of Sepako and Dukwi respectively on a mission to consult with communities regarding the invasion of the places by buffalos.
Minister Gare alluded that they have been sent by the President of Botswana, who is equally worried by the current situation. He noted that the affected areas have a total of around 300000 cattle and if the situation goes unchecked, there might be detrimental effects on the economy of this country.
He encouraged the communities to help government going forward by reporting any spotted buffalos in their areas, emphasizing that buffalos are dangerous and can kill people and that care should be exercised at all times.
The Director of Veterinary Services mentioned that they closed the above mentioned zones to allow for testing of buffalos & cattle for foot & mouth disease. The wildlife department’s Director Mr. Moremi Batshabang assured farmers and the community that they will eliminate small clusters of buffalos found within communities and translocate larger clusters to ensure their safety.