Budget dep’t to carry out reforms in procurement
By Michelle Remo
Philippine Daily Inquirer
First Posted 23:58:00 03/27/2008
CLARK FIELD, PAMPANGA, Philippines -- Aiming to address allegations of corruption in implementation of foreign-funded projects, the Department of Budget and Management said it would carry out reforms in the procurement process.
Budget Secretary Rolando Andaya Jr. said the government will come up with uniform procurement rules for all line agencies.
The rules will also be harmonized with international best practice and will be observed for all types of projects, whether funded by foreign governments or multilateral institutions like the World Bank, Andaya told a press briefing Thursday during a break at the Philippine Development Forum (PDF) being held here.
The PDF is an annual meeting of government officials and representatives of foreign lending institutions to discuss possible projects and programs to help boost economic development in the country.
Proposals to reform the procurement process have emerged following allegations of corruption in the implementation of some infrastructure projects funded by official development assistance, particularly the allegedly overpriced Northrail project which is being funded with a loan from China.
Critics of the project allege that the government did not conduct a bidding. The estimated cost of the first phase of the Northrail, to run from Caloocan to Malolos in Bulacan, is $400 million.
Another problematic China-financed undertaking is the National Broadband Network (NBN) project which has been canceled amid allegations that the President’s husband was involved in huge kickbacks for brokering the deal with China’s ZTE Corp.
Last November, the World Bank officials held off approval of a loan for the second phase of the $232-million National Road Improvement and Management Program (NRIMP) because of charges that the first phase of the project had been attended by corruption.
The World Bank cited charges that there had been collusion between some government officials and a bidder vying to be a contractor for the NRIMP.
The reform of the procurement system was one of the projects identified as urgent during the PDF.
Foreign lending agencies, led by the World Bank, said they were willing to provide financial support for proposed programs to make the procurement system more efficient and transparent.
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