The Federal Government has introduced new rules that could bar contractors, consultants and service providers from participating in government procurement for between three and five years over misconduct and poor performance.
The guidelines, contained in a circular signed by the Secretary to the Government of the Federation, George Akume, are aimed at strengthening accountability and ensuring value for money in public procurement.
The new framework identifies six grounds for debarment: bribery or offering benefits to influence procurement decisions, conviction for fraud or related offences, wilful failure to fulfil contractual obligations, a record of unsatisfactory performance, falsification of documents and prior debarment by a multilateral organisation.
Under the guidelines, contractors may also be sanctioned for offering jobs or other monetary benefits to current or former employees of procuring entities or the Bureau of Public Procurement to influence procurement processes.
The government said the measures were introduced “in order to promote integrity, transparency, accountability in public procurement and to ensure value for money in public expenditure and to protect government from bad and non-performing contractors.”
The guidelines empower the BPP to initiate debarment proceedings following investigations, surveillance or audits where there are indications that a contractor has violated the Public Procurement Act, 2007, or regulations made under it.
A procuring entity may also recommend debarment after conducting adequate investigations and providing evidence approved by its Accounting Officer.
Once debarred, a contractor cannot be invited to bid for Federal Government contracts, awarded contracts or participate in subcontracts involving government agencies. The contractor is also barred from conducting government business as an agent or representative of another contractor, consultant or service provider.
The sanction extends to partners in joint venture agreements. However, an existing government contract may continue if the relevant agency determines that there are valid reasons for allowing it to proceed.
The Debarment Committee may impose a ban of not less than three years and not more than five years.
The guidelines also provide contractors with an opportunity to respond before a final decision is made. The BPP is required to acknowledge a debarment request within seven working days, while the Secretary of the Debarment Committee must review the information within 10 working days.
Where grounds for debarment are established, the BPP must issue a notice to the affected contractor within five working days, stating the allegations and proposed grounds for the sanction.
The contractor then has 10 working days to respond, with a possible extension of up to five working days.
If the contractor cannot be reached physically or electronically, the proposed debarment may be published in two national newspapers, the Tenders Journal and the BPP website for at least 10 working days.
After receiving a response, the Debarment Committee is expected to consider the matter within 15 working days and reach a decision. Where debarment is approved, the BPP must issue the final notice within five working days.
The final notice will state the grounds and duration of the ban and its implications. Details of the sanctioned contractor will subsequently be entered into the BPP database and published on its website, the Federal Tenders Journal and other platforms.
The circular directed accounting officers to ensure that tenders boards, procurement planning committees, procurement departments and other officials involved in procurement comply with the new guidelines.
The implementation of the guideline takes effect immediately.
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