Remove unfair clauses for equal opportunity in public procurement | Business

DHAKA, May 12, 2024 (BSS) – The government should remove discriminatory tax structure for local companies to ensure a level playing field for all domestic and foreign firms in the public procurement process, speakers at a seminar said today.

They made these observations at the seminar titled “Public Procurement Act-Challenges and Opportunities” organized by the International Business Forum of Bangladesh at its conference room in the city.

Speaking as the chief guest, State Minister for Planning Md Shahiduzzaman Sarker emphasized the importance of transparency and accountability in the procurement process. He highlighted the government’s efforts in introducing an electronic government procurement system (E-GP) to enhance transparency at the primary level of procurement.

The State Minister acknowledged that there is still room for improvement in terms of transparency and accountability. He also expressed his commitment to consider the recommendations, complaints, and demands raised by stakeholders during the meeting.

Challenges and Opportunities in Public Procurement

Mohammed Shoheler Rahman Chowdhury, Chief Executive Officer (CEO) of the Bangladesh Public Procurement Authority (BPPA), stated that their goal is to bring the entire procurement system in the country into the E-GP system. He mentioned that the BPPA is continuously identifying and addressing challenges in the procurement process, with the aim of simplifying the complaint resolution process.

In his keynote paper titled “Governance and Competitiveness in Public Procurement Practices: Bangladesh Context,” Dr. Zafrul Islam, Former Lead Procurement Specialist of the World Bank, highlighted the issue of conflict of interest (COI) in the procurement process. He emphasized the need for consultation with stakeholders before formulating laws or rules, and raised concerns about possible informal or undisclosed relationships between public officials and the contracting or consulting industry.

Recommendations for Reform

Muhammad Abdul Mazid, Adviser to the IBFB and former NBR Chairman, recommended bringing reforms in the financial year to reduce waste in resources and time during the implementation of construction projects. He also stressed the importance of imposing equal taxes on local and foreign companies, instead of maintaining a discriminatory tax structure for local firms.

MS Siddiqui, Vice President of the IBFB, urged the government to impose uniform taxes at all levels, including public imports. He emphasized the need for competitiveness to ensure sustainability in the long run in the procurement process.

Professor Muhammad Shahadat Hossain Siddiquee, an Economics professor at Dhaka University, called for equity in the awarding process of work. Engineer SM Khorshed Alam, Advisor to the Bangladesh Association of Construction Industry (BACI), urged the government to abolish the clause of awarding projects to the lowest bidder in the public procurement process. He suggested considering the capacity of prospective awardees instead of solely focusing on the bid amount.

Engineer Rabiul Alam, Former President of Manufacturer’s Association for Transformer and Switchgear (MATS), urged the government to address discrepancies faced by local companies in the project award process.

The seminar was welcomed by Humayun Rashid, President of the IBFB.