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Major move to enhance transparency, accountability
View(s):- Finance Ministry orders immediate implementation of electronic procurement system
The Finance Ministry has instructed all ministries, provincial councils, departments, district secretariats, State corporations, statutory boards and State-owned enterprises to immediately implement the long overdue electronic Government procurement (e-GP) system, in keeping with an International Monetary Fund (IMF) requirement to improve transparency.
Procurement notices relating to all methods and categories with an estimated value of more than Rs 300mn are now to be published in the e-GP portal from May 1. Details of awards of contracts with a value of more than Rs 200mn are to be collected by line ministries and submitted to a designated email address in a prescribed format.
According to a circular sent this week by the Public Finance Director General, from next month the appointment of Cabinet-level procurement committees will also be made only upon fulfillment of these instructions.
It reveals that although Sri Lanka launched its e-GP system several years ago to enhance transparency and accountability, “it is regretted to note that most of the State agencies have not followed these instructions…”
He said they had failed to update the e-GP portal details of all procurements, despite a previous circular requiring them to do so.
“Given the highest importance attached by the Government to create an efficient and transparent Government Procurement System in the country, you are kindly requested to instruct the relevant officials who are involved in procurement-related activities that directly come under your purview [sic] to adhere to the following instructions,” the Director wrote.
There have been at least four circulars since 2018 mandating the adoption of the e-GP system, including one requiring the appointment of liaison officers to collate and upload information. A circular dated 2019 even set out procedures such as registration of procurement entities, liaison officers and vendors, publication of annual procurement plans and procurement notices. However, it had failed to be implemented.
The IMF has several times stressed the importance of clear procurement procedures. In its staff report last month, the multilateral lender observed that Sri Lankan authorities were upgrading anti-corruption legislation.
“In parallel, the authorities will step up efforts to reduce opportunities for corruption by expanding the reliance on digitalisation in areas such as revenue administration and procurement,” it said.
It also said Sri Lanka undertook to operationalise an online transparency platform last month.
“We will strengthen commitment-based spending controls by completing our roll out of the Integrated Treasury Management Information System (ITMIS), a full-fledged IT-based PFM (Personal Financial Management) platform, and by introducing a more rigorous IT-based commitment control framework such as an e-procurement system for public investment,”it added.
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