Bangkok--17 Feb--Freewill Solutions Group
After the widespread severe flood crisis in 2011, the Government issued an executive decree to seek loans amounting to 350 billion baht for water management. On February 7th, 2012, the Cabinet has approved government agencies to use the special method for the procurement of flood prevention projects, which worth 100 billion baht, in order to speeding the budget disbursement.* With our 10 years of experience in providing online auction for government agencies, Pantavanij Co., Ltd. concerns that the special procurement method will open loopholes for corruptions. The company proposes that the procurement should be made via electronics methods to ensure the transparency. Apart from that, the procurement process can be shortened to solve delay concern.
Col. Rangsee Kitiyanasap, an adviser to Pantavanij Co, Ltd. states that “I really concerns about the Cabinet’s decision using special method to speed up the disbursement of 100 billion-baht flood prevention budget. In the past, there were several projects, using the special method, be questioned regarding corruption and they have been put on hold for the investigation. I do not want this problem to happen repeatedly. Without details clarification and price competition, the special project so open to corruption. If the project delay is the main concern, government can then ease an e-Auction regulation to speed it up.” So far, many major projects, under the inspection of corruption, have spent through special procurement method. For example, the AOT’s luggage cart procurement project for Suvarnabhumi Airport worth 566 million baht, the Ministry of Defense’s armored personnel carrier procurement project worth 750 million baht, and the Department of Disaster Prevention and Mitigation’s flood survival pack procurement worth 80 million baht.
Morrakot Thavisri, Vice President for Pantavanij e-Government business, provides an insight to special method’s weak points that permit corruption in the procurement process. Firstly, government agencies are not compelled to register or to declare the procurement information to the public, so it is difficult to track down the sourcing and price negotiation information. Furthermore, it allows government agencies to use special terms and conditions as an excuse for price collusion. Finally, as the process becomes very concise, it does not create competitive bidding environment. Morrakot explains more that “Pantavanij proposes that the Government should encourage agencies to use e-Auction as a procurement method to ensure more efficient use of government budget. In addition, the company proposes the Government to consider using electronic system in its tender offer and negotiation process. At present, all other government bidding types: the negotiation, price search, and open bidding, still requires the bidder to submit a sealed tender offer to the committee by hand. By using the electronic system, all offers will be recorded in the system, which will make it easier to inspect for better transparency.” In conclusion, the e-Procurement system will not only ensure more transparency in the price negotiation process, but it also allows many bidders to join the auction and make a bid offers regardless of time and place. This will eventually help government agencies get the most reasonable price from bidder. Our statistic shows that government agencies can save the budget approximately 7-8% by using e-Auction method.
All these times, Pantavanij urges the Comptroller General’s Department to amend the government procurement policy on the procurement process to enforce the supervision on exaggerating reserved price, product specifications locked in the terms of requirement, opportunity for bidders to meet on price collusion and good receive by specifications. These are our policy amendment proposal:
Before Bidding Process
- Amend the budget spending regulation so any government projects worth over 1 million baht are obliged to use the e-Auction method
- All projects should be carefully considered before giving an approval of using special method
- Establish the central organization to monitor and to inspect any projects that are questioned to e-Auction avoidance
Bidding Process
- Establish the central organization to monitor, inspect, and revise median price according to market situation in order to avoid exaggerating median price
- Found an independent agency, carries experts from various fields, to review and approve the draft scope of TOR; employ Multi Variable Bid (MVB) auction to allow products and services with different quality level to compete on price basis
- Exercise 2005 issued e-Procurement Regulation, which does not require bidders’ presence at auction center, to prevent price collusion; high penalties should be enforced to offenders
Check and Good Receive Process
- Establish the central organization to monitor and examine good receive process to prevent inferior quality goods or services acceptance; high penalties should be enforced to offenders
*Reference http://web.parliament.go.th/news/news_detail.php?prid=313408
For more information, please contact
Pantavanij Co., Ltd.
Suppata Bua-Aim
Marketing Communications Executive
Tel 0 2689 4228 Fax : 02-679-7474 e-Mail :
[email protected]