Budget Monitoring and Price Intelligence Unit
By
Jul 25, 2003, 22:31

Introduction

The present Administration is determined to offset the widespread notion that Nigeria is a corrupt nation, and to overcome the practice of embarking on development projects that are not properly monitored. For this reason it has set up the Budget Monitoring and Price Intelligence Unit (BMPIU), also known as the Due Process Office.

The BMPIU was formally established under the Office of the Principal Secretary to the President in June 2003. It is run as an operationally independent body under the leadership of the Senior Special Assistant to the President on the Unit, Mrs Obiageli Ezekwesili. Its staff comprises experts with a bias for project management, construction and procurement.

The Unit was designed to act as the clearing-house for all Government contracts and procurement of goods and services, and functions under three major strategies: Goal, Objectives and implementation.

Goal of BMPIU

The goal of BMPIU is to ensure full compliance with laid down guidelines and procedures for the procurement of capital and minor capital projects as well as associated goods and services.

Objectives of BMPIU

The objectives of BMPIU are:

1. To harmonize existing government policies/practices and update same on public procurement
2. To determine whether or not Due Process has been observed in the procurement of services and contracts
3. To introduce more honesty, accountability and transparency into the procurement process
4. To establish and update pricing standards and benchmarks for all supplies to Government
5. To monitor the implementation of projects during execution with a view to providing information on performance, output and compliance with specifications and targets
6. To ensure that only projects which have been budgeted for are admitted for execution.

Implementation Strategies

The BMPIU operates under the following guidelines: Regulatory Functions, Certification Functions, Monitoring Functions and Training and Advisory Functions.

A. Regulatory Functions

1. To regulate and set standards, including the enforcement of harmonized bidding and tender documents
2. To formulate the general policies and guidelines related to public sector procurement
3. To develop, update and maintain a related system wide database and technology
4. To undertake procurement research and survey in order to determine information needs and project costing
5. To enforce professional ethics and sanction erring officers and professionals

B. Certification Functions

The Unit will certify all federal-wide procurements under the following guidelines:

1. Resident Due Process Team Certification for projects below N50million
2. Full Due Process Certification for projects above N50million at various stages such as “contract award certificate” and “payment certificate”.

C. Monitoring Functions

1. To supervise the implementation of established procurement policies
2. To monitor the prices of tendered items
3. To perform procurement audits
4. To undertake the monitoring of capital projects that have exceeded 50% of contract sum before release of further funds
5. To document all projects at award and completion stages, and publish same in designated journals

D. Training and Advisory Functions

1. To co-ordinate relevant training programmes so as to build institutional capacity
2. To embark on regular public enlightenment programmes so as to sensitise various stakeholders involved in procurement
3. To interact with Government and parastatal officials, National Assembly members, consultants and relevant professional bodies so as to educate them on all aspects of the work of BMPIU.

Organisation of Due Process Certification

The Nigeria Treasury Circular of 5 July 2002, “Guidelines for Implementation of Due Process Certification of Contract”, provides a plan for the implementation of the Capital Budget. Major sections of the Circular include:

A. Approval of Contracts

1. Contracts below N1.0million

The Permanent Secretary/Chief Executive of parastatals shall approve these.

2. Contracts over N1.0million but below N50.0 million

A Resident Due Process Team (RDPT) shall approve these.

3. Contracts above N50.0million

These shall be processed in accordance with Government guidelines and approved by the Ministerial Tender Board before being forwarded to BMPIU to obtain a Due Process Certificate. When certification is obtained from BMPIU, the project would be forwarded to Federal Executive Council for approval before an award can be made.

4. Due Process Review Procedure

The procedures for Due Process Review are as follows:

a. Requirements for Due Process Review

i. The Project Policy file
ii. Tender Returns
iii. Tender Evaluation Report
iv. Contract Award Letter and Agreement
v. Original Contract Bills of Quantities (if any)
vi. Contract Drawings (if any)
vii. Other Contract Documents
viii. Financial Summary and Statements
ix. Progress Reports
x. Variation Requests and Variation Orders arising
xi. Interim Valuation and Certificates

b. Preliminary Discussion (BMPIU and Beneficiary Ministries)

There may be a need to schedule meetings between BMPIU and beneficiary ministries/parastatals to clear issues connected with the report for certification. Such meetings may take place at pre-review and during the review exercise. BMPIU may call for additional information from the ministries to facilitate the issuance of certification.

c. Preparation of Draft Report

The Due Process Certification will require an assessment to ensure that:

i. The appropriation is available for the funding requirements of the project upon award
ii. The contract awarded by the spending unit/ministry shows that the process complies with open competitive bid standards and that the cost is comparable with national, regional and international standards.

d. Transmission of Draft Report

The Draft Report from BMPIU shall be transmitted to the beneficiary confirming certification. If certification is not granted, attention of the beneficiaries is drawn to the findings and recommendations in the report.

e. Organisation of “Right of Reply” Meeting

For a project where certification is denied, BMPIU has made provisions for a “Right of Reply” meeting aimed at clarifying issues leading to the denial of certification. Such a meeting may either lead to reconciling differences or confirming the position of BMPIU.

f. Final Report

The outcome of a “Right of Reply” meeting will assist in fine-tuning the report and facilitating the issuance of a final report.

g. Granting or Denying Due Process Certification

The final report may either lead to the project being granted certification or being denied certification. Whatever the outcome, it will be transmitted to the beneficiaries.

The granting of certification may lead to the project being recommended for approval by the Federal Executive Council. In cases where projects are denied certification, the beneficiaries may be advised to repackage the project for fresh procurement.

Conclusion

In general, the following suggestions should be adhered to for the successful implementation of Due Process policies:

1. Ministries/parastatals should not embark on new projects when there is a problem of funding existing ones
2. Efforts should be made to stock-take the capital project portfolio of all ministries
3. Procurement planning should be carried out
4. Project feasibility and design should be completed before embarking on procurement and award
5. Technically competent and integrity conscious officials in the ministry should be identified and assigned procurement planning
6. Only projects for which funds are appropriated or available should be forward to BMPIU for Due Process Certification
7. Unadvertised projects will not be accepted by the Unit for review
8. No selective tendering arrangements qualify for Due Process Review
9. Only the Ministry of Defence has a special procurement arrangement
10. A focal point or anchorperson in each ministry should function as the liaison between the BMPIU and the ministry.

The BMPIU expects extensive support for the policy of Due Process Certification. With such support, Due Process will ensure that the present Administration is able to put Nigeria’s natural and human resources to good use through efficient planning, proper management, and fraud-free governance.




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