New procurement rules provide for three to five-year debarment and set out a detailed process for investigating and sanctioning erring contractors, consultants and service providers…..
The Federal Government has introduced tougher measures against contractors and service providers accused of misconduct, with new procurement guidelines providing for their exclusion from government contracts for up to five years.
Under the new framework, contractors, consultants and suppliers found guilty of specified offences may be barred from participating in Federal Government procurement for between three and five years.
The directive is contained in a circular titled “Implementation of the National Guideline on Debarment of Contractors,” signed by the Secretary to the Government of the Federation, George Akume.
The government said the measure is designed to strengthen integrity and accountability in public procurement, ensure value for money and protect public resources from contractors who fail to deliver their obligations.
The guidelines identify six major grounds for debarment.
They include offering or promising bribes, gifts or other benefits to influence procurement decisions; conviction for fraud or other offences linked to public contracts; deliberate failure to meet contractual obligations; a record of poor or unsatisfactory performance; falsification of documents; and previous debarment by a multilateral organisation.
Under the new rules, a contractor could face sanctions if it gives money, gifts or other tangible benefits to a serving or former employee of a procuring agency or the Bureau of Public Procurement in an attempt to influence a procurement process.
The offer of employment or any other benefit with monetary value to such officials, where intended to influence a procurement decision, is also covered by the guideline.
Contractors convicted of fraud or offences relating to the award, attempted acquisition or execution of a public contract or subcontract may equally be subjected to debarment.
The government is also targeting persistent non-performance, with the guidelines covering contractors who deliberately fail to fulfil the terms of an agreement or have a documented history of failing to perform satisfactorily.
Falsifying documents submitted in connection with procurement is another ground for exclusion, while companies already sanctioned by a multilateral organisation may also be considered for debarment by the Nigerian government.
What Debarment Means
Once a contractor is formally debarred, Ministries, Departments and Agencies will be prohibited from inviting the affected entity to submit bids or awarding new contracts to it.
The contractor will also be barred from participating in subcontracts and from conducting business with the government as an agent or representative of another contractor, consultant or service provider.
However, an existing contract or subcontract may continue if the relevant government agency determines that there are compelling reasons for allowing it to remain in operation.
The sanction will also extend to partners involved in a joint venture with a debarred contractor.
The Debarment Committee has the authority to impose the sanction for a minimum of three years and a maximum of five years.
But before the penalty is imposed, the affected contractor must be given an opportunity to respond to the allegations.
How The Process Will Work
The Bureau of Public Procurement may initiate debarment proceedings if its monitoring, surveillance or audit activities reveal possible violations of the Public Procurement Act or relevant regulations.
A procuring entity may also recommend a contractor for debarment after conducting its own investigation, provided the recommendation is supported by evidence approved by its Accounting Officer.
Once a request is received, the BPP is expected to acknowledge it within seven working days. The Secretary of the Debarment Committee will then review the information within 10 working days.
If the evidence establishes a case that could warrant debarment, the BPP must issue a notice to the contractor within five working days.
The notice is required to spell out the allegations and the specific grounds on which debarment is being proposed.
The affected contractor will have 10 working days to respond and may request an extension of up to five additional working days.
Responses can be submitted personally or through legal counsel and may include documents or other information supporting the contractor’s defence.
The response must also contain a verifying affidavit confirming that the information supplied is truthful and that the respondent exercised due diligence in reviewing the matter.
Where the notice cannot be delivered physically or electronically, the government may publish the proposed debarment in two national newspapers, the Tenders Journal and on the BPP website.
Such publication must remain in place for at least 10 working days.
Failure to respond within the stipulated period may allow the Debarment Committee to proceed with the case using the information available to it.
Where a response is submitted, the committee must consider it and reach a decision on its merits within 15 working days.
If debarment is approved, the BPP is required to issue a final notice within five working days of receiving the committee’s decision.
The final notice must state the decision, the grounds for the sanction, the duration of the debarment and the consequences for the affected contractor.
The name of the sanctioned contractor will subsequently be entered into the BPP database and published on the Bureau’s website, the Federal Tenders Journal and other designated platforms.
Government Orders Strict Compliance
The new framework operates within Nigeria’s existing public procurement system established by the Public Procurement Act 2007, which created the BPP as the regulator of Federal Government procurement.
The Act provides the legal basis for promoting competition, transparency and value for money while prescribing offences and sanctions for misconduct in public procurement.
The latest guideline provides a more specific administrative process for enforcing sanctions, from investigation and notification to the right of response, committee consideration, publication and possible reinstatement after the sanction period.
Akume directed Accounting Officers across government to ensure that Tenders Boards, Procurement Planning Committees, Procurement Departments and all officials involved in procurement are made aware of the new requirements.
The circular takes effect immediately, with all affected government institutions directed to ensure strict compliance.
