Government: ‘Strengthen Financial Accountability’

July 4, 2011

On Friday [July 1] in the House of Assembly Premier Paula Cox spoke about the Office of Project Management and Procurement [OPMP] which she said is “yet another pillar in our efforts to strengthen financial accountability in Government.”

The Premier said the OPMP will “ensure that there is no bias in the tendering process; that Government will obtain value for money; and there is adequate oversight of capital projects.”

The interim Director is Ms. Janet Albion, Senior Consultant in Pricewaterhousecoopers UK Government & Public Sector Procurement practice. Ms. Albion has been contracted by the Bermuda Government for up to six months at a cost of $160,000.

While here Ms Albion will establish the office, recruit a qualified team, produce and implement a code of practice that will define the tendering and management of capital projects and more.

Premier Cox said they intend to table legislation in this session that will establish the OPMP as the authority to have oversight of all procurement functions in Government.

The Premier’s full statement is below:

Mr. Speaker, I rise this morning to advise Honourable Members of the exciting new developments regarding the Office of Project Management and Procurement.

Honourable Members will recall that in the 2010 Throne Speech, the creation of a Project Management and Procurement Office was first touted. In the 2011/12 Budget debate, I advised this Honourable House that the establishment of the Office of Project Management and Procurement is yet another pillar in our efforts to strengthen financial accountability in Government and to enhance our governance framework.

By establishing this office, we are communicating a strong and clear message to the public that the Government has zero tolerance for behavior and practices that do not accord with the highest standards of good governance.

When fully staffed, the Office of Project Management and Procurement will be manned with people with the requisite skill and experience to ensure that there is no bias in the tendering process; that Government will obtain value for money; and there is adequate oversight of capital projects.

This office will also ensure that the processes for tendering and selecting qualified vendors are transparent and in accordance with international standards; and that all businesses including small business owners will have an equal opportunity to obtain government contracts to provide goods and services.

Mr. Speaker, I had also advised this Honourable House that we had been approached by audit firms and private sector companies to assist in transitioning this important unit even further. The Ministry of Finance circulated a request for proposal to the accounting firms and other interested vendors. Four companies responded with very attractive offers to work with us for a reasonable and competitive rate.

Mr. Speaker, in order for this important Department to achieve its objectives, we require persons with significant and superior experience in procurement systems. I am pleased to announce that, as of June 1st, the successful firm, Pricewaterhousecoopers, has provided us with an interim Director, Ms. Janet Albion, Senior Consultant in their UK Government & Public Sector Procurement practice.

Ms Albion is a Member of the Chartered Institute of Purchasing & Supply (CIPS) with over 15 years’ public sector procurement experience. She has previously held the position of Director of Procurement for the Association of Greater Manchester Authorities (AGMA), a collaborative procurement organisation for the 10 Greater Manchester local government authorities. She was also Director of Procurement for a large Metropolitan Borough Council in the United Kingdom.

Ms. Albion has been contracted to us for up to six months, in the first instance, and during that period, she will:

  • Establish the office, and recruit and train a suitably qualified team, including a permanent successor for the Director role;
  • Produce and implement a code of practice that will define the policies and procedures for the purchase of goods and services; the tendering and management of capital projects; complaint handling and dispute resolution;
  • Review current contracts to identify opportunities for further efficiencies to enhance value for money.

Mr. Speaker, we intend to table legislation in this session that will: (1) establish the Office of Project Management and Procurement as the authority to have oversight of all procurement functions in Government; (2) introduce regulations to legislate the code of practice; and (3) establish penalties for non-compliance.Mr. Speaker, by establishing this Office; we intend to fulfill our commitment to transparency and good governance and to achieve value for money by:

  • Raising the profile and importance of procurement as a strategically critical function;
  • Striking an effective balance between cost management, quality service, timely delivery, investment in the Bermuda economy and people, long-term sustainability and compliance with legislation;
  • Ensuring compliance with approved policies and processes;
  • Managing suppliers and contractors to ensure long-term sustainability and long-term relationships;
  • Maximising value by collaborating with the private sector and identifying shared service opportunities; and
  • Requiring timely, accurate and appropriately detailed reports on government spending.

Mr. Speaker, I cannot end this statement without recognising the stellar efforts of the staff who worked diligently to make this Office a reality; in particular, staff of the Ministry of Finance headed by Acting Financial Secretary, Mr. Anthony Manders; Management Consulting Services led by Mrs. Ianthia Fox and consultant, Mr. Wayne Dill.Thank you Mr. Speaker

QUESTIONS:

What is the cost of the consultancy?

$160,000

How many contracts have been vetted by the Project Management and Procurement Office since its inception?

21 contracts have been vetted since March 2011.

What is the procedure for awarding contracts?

The Process for contract awards is based on a point system which relates to an evaluation of the following criteria:

  • 1.Cost & Deliver:
  • 2.Financial Capability
  • 3.Past Performances
  • 4.Past Experience
  • 5.References
  • 6.Current Workload
  • 7.Past Relationships
  • 8.Safety Management

Each criterion is given a predetermined weight. This predetermined weighting of the criteria establishes priority and will vary from project to project. As a general rule, bid prices are given the highest weight (or priority).

In the event that one or more bidders receive very close points then we will look at the criteria closely to see if it is more appropriate to award it to one bidder over the other. For example, if two bidders are a few points apart but one price is significantly lower then it might make sense to award it to the lower bidder given the current financial constraints in government.

Alternatively, if the government’s priority is to support companies with the most Bermudian staff then it might make sense to spend more on a project as a means of keeping more Bermudians employed.

One other factor that should be considered is value for money.

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Comments (26)

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  1. joe says:

    Oh dear. More bureaucracy. Guess its one way of getting those unemployed friends back into the main stream. And just think of the fun: a bureaucracy put together to facilitate the giving away of government funds. Whee!

  2. pebblebeach says:

    Well done…a day late a dollar short, actually a $1Billion short…its really unfortunately the Finance Minister did not implemented this measure years ago…however as a tax payer, I am thankful that the processes for tendering and selecting qualified vendors will finally be transparent and in accordance with international standards; and that all businesses including small business owners (not necessarily just close friends and family) will have an equal opportunity to obtain government contracts to provide goods and services in which the tax payer will get value for dollars and not a series of unexplained costly overruns to the benefit of a chosen few. Hey… it is what it is…

  3. sandgrownan says:

    “The interim Director is Ms. Janet Albion, Senior Consultant in Pricewaterhousecoopers UK Government & Public Sector Procurement practice. Ms. Albion has been contracted by the Bermuda Government up to six months at a cost of $160,000.”

    Good work if you can get it.

    Will the PLP now formally apologise to Larry Dennis? Essentially, they’ve just admitted that they have been extremely lacking in accountability. Will the new “office” look at prior “deals” and act accordingly? Thought not.

    Talk about shutting the stable door after the horse has…er…sailed away on a taxpayer funded yacht.

  4. Great news says:

    Premier Cox continues to make great strides in ushering in an era of transparency, fair trade and accountability.

    • sandgrownan says:

      It’s 6 years too late. The money has all gone and our grandchildren will be paying for it.

      • Tickled Pink (and Blue) says:

        Yup !! and don’t forget about their grandchildren. Accountability has been non-existant.

    • Shaking the Head says:

      Can’t disagree with that. However, what Bermuda’s taxpayers have suffered for is having a Minister of Finance for the last seven years who sat back and did nothing while by the Premier’s admission in this announcement, contracts were not transparent, not adequately vetted and not controlled. The Minister of Finance is Constitutionally responsible for the Island’s finances, not the Premier. If the Government was serious in this matter, the offices of the Premier and Minister of Finance would be separated.

  5. Geza Wolf says:

    So much gets done when an election is brewing.

    • For sure says:

      All this feel good talk about good governance and accountability etc and etc and etc … Almost makes me want to vote for them ….. hahahahahahahahaha

    • PEPPER says:

      I agree with you…an election is brewing….and a certain talk show host is looking at her options…

  6. Great news says:

    What i dont understand is that these comments like Sandgrownan and geza Wolf really confuse me. All this time you talk about no accountability etc…now that the Premier and her administration are implementing all the things you have asked for, you still want to criticize everything.
    It makes it seem to me that it is all political. You would actually prefer nothing be done becuase then that would give you something to complain about.

    • Gary says:

      Apparently, ‘Great News says’, you miss the point.Most of us truly understand the points made by Sandgrownan and For sure says. The fact that the Premiere/Minister of Finance has finally implemented some checks and balances after years of questionable deals (and i’m being kind) is welcomed but sadly “way to late”. Is there any money left to manage? Sorry, but the Minister of Finance has been a poor, poor custodian of our money.

  7. Takbir Sharrieff says:

    Congratulations to Madame Premier and her Government Team for ensuring that water tight controls are being put into place for The New Bermuda to prevent more thieves then Ali Baba …more Pirates than Blackbeard…….Sailing away on Yacht’s after plundering Bermuda for 400 years….and riding away on the horses after the stable doors were left open and all the cliches attached to peoples behavior in the Past.These New Controls are welcomed by Right Minded People of Bermuda…….there is more to come….Proud to be a New Bermudian…Kudos to our Present Government….thanks for represent the the voters first….it feels good…….you got my vote……..!.

    • sandgrownan says:

      You been asleep for the last 13 years? Over a billion dollars in debt and you think that’s in our best interests?

    • Get a clue says:

      Takbir, are you serious? Do you not realize this is the same person who was signing the checks in Ewarts administration. With the whole Cog statement its obvious that her loyalty is to the PLP and not the citizens of the island as she would have been willing to show at least some objection to the reckless spending of the Brown administration. Its statements like this that makes me truly believe she thinks we’re all idiots. And sorry to say statements like yours show how ignorant the population is in terms of understanding politics. What happened in the PLP leadership would be the same thing as when Bush finished office they just gave the presidency to Cheney. This is not change, don’t confuse political posturing for genuine change.

  8. Triangle Drifter says:

    Ah, yes! Great news from the person who allowed huge fubds to be squandered away providing lucrative contracts to friends & family without question.

    Where has all dee monee gone Paula?

    Now that Bermuda is worse than flat broke we have grand anouncements, that cost more money, to fix what she enabled by her own hand.

    Talk about sending in the wolves to protect the hen house! She learned well from her Master.

  9. True Dat says:

    Again all these jokers do is talk in circles!!! Anybody that believes this crap is a fool!!! this is only a bunch of crap being poured out to make sure that the suckes run out and put a tic in the book on election day!!! and to also make sure that they continue to be in full control of the money so they can continue to collect their BIG FAT CHECKS!! greedy pigs!!!!

  10. Portia says:

    Hold on…there are some important points that the Premier has not touched on here. Firstly, is the OPMP meant to be functioning apart from the other Government departments? To be truly independent and fair, it would have to be set up that way. Will the OPMP function similarly to the Ombudsman’s Office, that carries out investigations and complaints against Government departments and Ministers – in an autonomous manner?

    The Premier refers to the OPMP as a “department” so I can only assume that she does not intend it have this level of autonomy and independence. On page 18 of the 2011/2012 Budget, the expenses for “Project Management & Procurement” are listed under the Ministry of Finance…her ministry! So will the OPMP simply become a another department of the Ministry of Finance? Premier needs to clarify this. How does she intend for it to strengthen financial accountability if she still has a firm grasp over everything done there? Where is the system of checks and balances? Or does she intend to “check” and “balance” herself?

    • sandgrownan says:

      Good points, given her track record of “checking” and “balancing” this is a worry.

  11. Jus' Askin' says:

    Is she ever going to be held accountable or is this a fresh start? :>

  12. MinorMatters says:

    I see – we create a new Department – I guess there is some benefit in paying out of work consultants and hiring somebody from Manchester England to the do the job the Minister should have done 7 years ago by…get ready for this – by adhering to the following piece of advice: “Just Say No!” to all the errant expenditures of the previous Premier.

  13. Graeme Outerbridge says:

    Show me the money?^^

    • Nominator says:

      Take a walk on the beach…

      • Graeme Outerbridge says:

        I do all the time….but then this has nothing to do with the poor management of this Government^^

  14. MinorMatters says:

    to BERNEWS – please can you post the story in the other news source which talks about the new Health Agency Company created by the Former Premier with his Indian Counterpart. With this new department, do you think they found anything coincidal here?

    I can’t believe how slow I can be sometimes. It’s all about timing. First we have a Minister who pushes through a bill post haste that would permit drugs to be imported from INDIA without the requisite consultation with the Phamacists (one meeting is insufficient in the course of 6 weeks…), then we have the announcement that the Former Premier creates a new Health Agency Company with an Indian counterpart. Could there be a connection, perchance? Notwithstanding, I think the photo in the RG speaks a million words. There you have the Former Premier enshrouded in the Yellow Indian Sari…reminds me of the expression – “Wolf in Sheep’s clothing”…hmmm