No. 12 of 2010 FIFTH NATIONAL ASSEMBLY PARLIAMENTARY DEBATES (HANSARD) FIRST SESSION TUESDAY 17 AUGUST 2010 2 CONTENTS PAPERS LAID QUESTIONS (ORAL) MOTION – SUSPENSION OF S.O 10 (2) STATEMENTS BY MINISTERS BILL (PUBLIC) MOTIONS CIVIL ESTABLISHMENT (AMENDMENT NO. 2) ORDER 2010 GOVERNMENT PROGRAMME 2010-2015 ADJOURNMENT QUESTIONS (WRITTEN) 3 Members Members THE CABINET (Formed by Dr. the Hon. Navinchandra Ramgoolam) Dr. the Hon. Navinchandra Ramgoolam, GCSK, FRCP Prime Minister, Minister of Defence, Home Affairs and External Communications Dr. the Hon. Ahmed Rashid Beebeejaun, GCSK, FRCP Deputy Prime Minister, Minister of Energy and Public Utilities Hon. Charles Gaëtan Xavier-Luc Duval, GCSK Vice-Prime Minister, Minister of Social Integration and Economic Empowerment Hon. Pravind Kumar Jugnauth Vice-Prime Minister, Minister of Finance and Economic Development Hon. Anil Kumar Bachoo Minister of Public Infrastructure, National Development Unit, Land Transport and Shipping Dr. the Hon. Arvin Boolell Minister of Foreign Affairs, Regional Integration and International Trade Dr. the Hon. Abu Twalib Kasenally, FRCS Minister of Housing and Lands Hon. Mrs Sheilabai Bappoo, GOSK Minister of Gender Equality, Child Development and Family Welfare Hon. Nandcoomar Bodha Minister of Tourism and Leisure Dr. the Hon. Vasant Kumar Bunwaree Minister of Education and Human Resources Hon. Satya Veryash Faugoo Minister of Agro-Industry and Food Security Hon. Showkutally Soodhun Minister of Industry and Commerce Hon. Devanand Virahsawmy, GOSK Minister of Environment and Sustainable Development Dr. the Hon. Rajeshwar Jeetah Minister of Tertiary Education, Science, Research and Technology Hon. Satyaprakash Ritoo Minister of Youth and Sports Hon. Mrs Leela Devi Dookun-Luchoomun Minister of Social Security, National Solidarity and Reform Institutions Hon. Louis Hervé Aimée Minister of Local Government and Outer Islands Hon. Mrs Santi Bai Hanoomanjee Minister of Health and Quality of Life Hon. Mookhesswur Choonee Minister of Arts and Culture Hon. Tassarajen Pillay Chedumbrum Minister of Information and Communication Technology Hon. Louis Joseph Von-Mally, GOSK Minister of Fisheries and Rodrigues Hon. Ashit Kumar Gungah Minister of Civil Service Affairs and Administrative Reforms Hon Shakeel Ahmed Yousuf Abdul Razack Mohamed Minister of Labour, Industrial Relations and Employment Hon Yatindra Nath Varma Attorney General Hon John Michaël Tzoun Sao Yeung Sik Yuen Minister of Business, Enterprise, Cooperatives and Consumer Protection 4 Members Members PRINCIPAL OFFICERS AND OFFICIALS Mr Speaker Purryag, Hon. Rajkeswur, GCSK, GOSK Deputy Speaker Roopun, Hon. Prithvirajsing Deputy Chairman of Committees Hossen, Hon. Abdullah Hafeez Clerk of the National Assembly Dowlutta, Mr R. Ranjit Deputy Clerk Lotun, Mrs B. Safeena Clerk Assistant Ramchurn, Ms Urmeelah Devi Chief Hansard Reporter and Lam Shu On, Ms Clivie Sub-Editor Senior Library Officer Pallen, Mr Noël Serjeant-at-Arms Munroop, Mr Kishore 5 MAURITIUS Fifth National Assembly --------------- FIRST SESSION --------- Debate No. 12 of 2010 Sitting of Tuesday 17 August 2010 The Assembly met in the Assembly House, Port Louis, at 11.30 a.m. The National Anthem was played (Mr Speaker in the Chair) 6 PAPERS LAID The Prime Minister: Sir, the Papers have been laid on the Table – A. Prime Minister’s Office – Certificate of Urgency in respect of The Code Civil Mauricien (Amendment) Bill (No. XV of 2010). B. Ministry of Finance and Economic Development – (a) The Customs (Amendment) Regulations 2010 (Government Notice No.159 of 2010). (b) The Customs Use of Computer (Amendment) Regulations 2010 (Government Notice No.160 of 2010). (c) The Companies (Resubmission of Documents) Regulations 2010 (Government Notice No.161 of 2010). C. Ministry of Business, Enterprise, Cooperatives and Consumer Protection – The Rodrigues Consumer Protection (Control of Price of Taxable and Non- Taxable Goods) (Amendment No. 19) Regulations 2010 (Government Notice No. 162 of 2010). 7 ORAL ANSWERS TO QUESTIONS PROCUREMENT - CONTRACTS The Leader of the Opposition (Mr P. Bérenger) (by Private Notice) asked the Vice- Prime Minister, Minister of Finance and Economic Development whether, in regard to procurement and since the proclamation of the Public Procurement Act, he will state the – (a) composition of the Central Procurement Board, the Procurement Policy Office and the Independent Review Panel; (b) value of the contracts awarded through – (i) direct procurement; (ii) restricted bidding, and (iii) emergency procurement, giving details thereof in each case, including the applicable updated cost estimate, and (c) reviews effected by the Panel and the cancellations of bidding processes by public bodies, if any, giving details thereof. The vice-Prime Minister, Minister of Finance and Economic Development (Mr P. Jugnauth): Mr Speaker, Sir, with your permission, I will concurrently reply to PQ No. 1B/518 which also relates to the subject matter. Before addressing the specific questions, it is important to set the stage regarding how procurement issues are being addressed internationally and our own experience in improving the process. Mr Speaker Sir, the challenge that all Governments across the world face with public procurement is how to strike the right balance between speed, transparency and equity. Streamlining of procurement processes has been at the centre of reforms in many countries 8 including the US, New Zealand, Australia and Singapore. The objective being to provide more responsive support to end users, eliminate bureaucratic obstacles to programme accomplishment, improving inter-departmental coordination, and empower service delivery managers to procure what they need without impediment by a centralised organisation, whilst, at the same time, ensuring value for money and fairness to all suppliers. The challenge is both to learn from doing and improve the system as required whilst also adhering to the rules and regulations established by the regulatory authority, which is in our case the Procurement Policy Office (PPO). There is a permanent learning curve with public procurement. We need to be ready to keep updating the system and especially using new technology such as e-procurement and innovative procurement methods. As part of this mandate, the PPO has obtained assistance from COMESA and the World Bank. The main recommendations were to revamp our legislation to align it fully with United Nations Commission for International Trade Law (UNCITRAL) model and the COMESA Procurement Directives, including - • review of the procurement institutional structure; • provision for disposal of assets in our legislation; • make amendments to cater for e-procurement implementation; • rulings of the IRP should be binding on the CPB and Public Bodies; • elaborate a strategy to lay out the medium and long term goals related to the decentralisation of procurement. Mr Speaker Sir, it is good to note that, following the international trend, Mauritius has already launched on the path of the recommendations of COMESA and the World Bank. The Government has embarked on a decentralisation process by gradually increasing the prescribed amounts for major contracts. Whilst maintaining checks and balances through adherence to the provisions of the Act, this move has - (i) empowered public bodies, through capacity building, to assume greater control over their projects; 9 (ii) trimmed the queue at the Central Procurement Board; (iii) reduced the procurement lead time by over 15 percent at the CPB and over 25 percent at the level of Public Bodies, and (iv) increased implementation of the Public Sector Investment Programme from some Rs11 billion in 2008 to Rs19 billion in 2009 whilst the rate of implementation for the Government Investment Programme improved from 52 percent of planned spending in 2008/09 to 77 percent in 2009. In addition to these reforms, we are also working to specify, as part of the tender process, the technical specifications required to promote sustainable procurement and to be compliant with different regulations including Environmental Impact Assessments and Labour Laws. This will allow the winning bidder to rapidly move to implementation whilst complying with all relevant rules and regulations. I am also informed that the evaluation of the procurement activities carried out by the PPO following the decentralisation has not revealed any abuse of the system or any case of corrupt practice in the approval and/or award of contracts which previously required CPB’s approval. Indeed, Mr Speaker, Sir, as regards part (c) of the question, I am informed that since the coming into operation of the Act to date, the Independent Review Panel reviewed 60 cases. I am tabling the details of the cases reviewed by the IRP and the recommendations made. It will be noted that in 7 cases, following the recommendations of the IRP, the bidding processes were cancelled by the public bodies concerned. Mr Speaker, Sir, it is important to note that we have gained in efficiency as I have just mentioned whilst also gaining in transparency and fairness. Over the period 2009 to date, the IRP ruled against the CPB in 45% of cases whilst rulings against public bodies were only 37%. Before the decentralisation reforms the IRP ruled against the CPB in 53% of cases. I am also informed that the proportion of cases where the IRP ruled in favour of applicants has more than halved from 1.9% of total procurement before the decentralisation reforms to 0.9% after. Moreover, there