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University of Botswana Law Journal - PULP

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132 UNIVERSITY OF BOTSWANA LAW JOURNAL DECEMBER 2010<br />

framework, organizational responsibilities and capabilities, and present<br />

procedures and practices, including how these may differ from the formal rules<br />

and procedures. The World Bank report was damning, it notes that: 1<br />

“About 50% <strong>of</strong> projects in Nigeria are dead even before they<br />

commence ... the projects are designed to fail because the objective<br />

is not to implement them, but to use them as vehicles for looting <strong>of</strong><br />

the public treasury ... Instead <strong>of</strong> adding value, they become<br />

economic drain pipes.”<br />

It was rightly observed that the government functionaries were involved in the<br />

awards <strong>of</strong> public contracts and a new legal regime that will eschew that<br />

abnormality was advocated by the report:<br />

“Members <strong>of</strong> the Federal Tender Board are Ministers who due to<br />

their political role shall not and cannot be expected to deal with<br />

details in procurement procedures. It is therefore considered that the<br />

Federal Tender Board does not add value to the procurement<br />

process. High level politicians such as Governors, Ministers and<br />

Commissioners should use their valuable time for major policy and<br />

strategic issues rather than approving contract awards. Elected<br />

<strong>of</strong>ficials are responsible for allocation <strong>of</strong> resources but the<br />

mechanics <strong>of</strong> spending these resources should follow laid down<br />

procurement regulations and procedures.” 2<br />

Rather than enacting a statutory legislation to regulate public contracts, the<br />

government took a step to check the abuse in the system by establishing the<br />

Budget Monitoring and Price Intelligence Unit (BMPIU) in the Presidency<br />

with an objective among others to ensure that merit and due diligence are<br />

adhered to in the award and execution <strong>of</strong> contracts, procurement <strong>of</strong> products<br />

and services. 3<br />

However on the 4th <strong>of</strong> June 2007, the then president <strong>of</strong> Nigeria<br />

President Umaru Musa Yar’Adua signed into law the Public Procurement Act<br />

(PPA) which is the first procurement law in the history <strong>of</strong> Nigeria. The<br />

purpose <strong>of</strong> the Act is to ensure transparency, competitiveness, value for<br />

money and pr<strong>of</strong>essionalism in the public sector procurement system. 4 The Act<br />

1 See Nigeria: Country Procurement Assessment Report Volume 1 and 2 - http://www-wds.worldbank.org/<br />

external/default/WDSContentServer/WDSP/IB/2001/06/08/000094946_01053004 [site visited on 2<br />

September, 2010].<br />

2 Id.<br />

3 The Budget Monitoring and Price Intelligence Unit (BMPIU) serves as a “vanguard <strong>of</strong> ensuring fiscal<br />

transparency, strict compliance with Federal Government guidelines on Due Process Certification as it<br />

concerns budgeting for and procurement <strong>of</strong> facilities/services/contracts at appropriate costs(Ezekwesili,<br />

2005.<br />

4 Section 4[1] <strong>of</strong> the Act.

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