REPORT ON THE PUBLIC PROCUREMENT BILL, 2021
THE PORTFOLIO COMMITTEE ON THE ECONOMIC AND DEVELOPMENT CLUSTER
National Assembly Phone: +266 22323035 P. O. Box 190 Fax: + 266 22310434
On Tuesday 6th April, 2021 the Hon. Minister of Finance tabled the Public
Procurement Bill, 2021 in the House. The Bill was referred to the Portfolio
Committee on the Economic and Development Cluster for consideration in terms
of Standing Order No. 51 (5). The Committee invited the Ministry of Finance to a
briefing session in accordance with Standing Order No. 54 (2).
The Committee, therefore, presents this Report to the House for consideration.
2.0 MINISTERIAL BRIEF
The Ministry of Finance stated that the objective of the Bill is to establish the
Lesotho Procurement Authority for monitoring procurement compliance based on
rules, regulations, guidance manual and standard bidding documents. The Bill
establishes the Authority to regulate institutional structures and manage public
procurement by providing procedures, processes and regulations of procurement
of goods, works, consultancy and non-consultancy services. The Authority shall be
headed by the Director General as an autonomous body corporate with perpetual
succession. It establishes the Board of Directors which shall exercise powers and
control on the Authority.
The Bill provides the Authority with powers to request any information,
documentation, records and, or reports in respect to any aspect of public
procurement process where the breach, wrongdoing, misrepresentation,
mismanagement or collusion has been allegedly reported or proven against a
Procuring Entity or service provider, commission or undertake an investigation
and institute a procurement contract and performance audit and suspend or
debar a contractor, supplier, service provider or consultant for engaging in public
The Bill establishes the Public Procurement Tribunal as an appeal body on tender
grievances or complaints.
The Bill has a section on margin of domestic preference which gives the local
business community an added advantage over foreign companies. It further
provides an affirmative action to those who had been marginalized, i.e.
disadvantaged groups such as the physically disabled, youth and women. The Bill
provides for tender reservation for the specific groups of business community
such as Small, Medium and Micro Enterprises (SMMEs). It has sanctions on
offences, and has provisions on the debarment for businesses which are unethical
against the procurement law and practice. It has provided a platform and
procedure on dispute settlement. It has afforded a window for national tenders
against international tenders to boost the country’s development and to provide
national business community with the know-how and capacity building.
3.0 CONSIDERATION OF THE BILL CLAUSE BY CLAUSE
The Public Procurement Bill, 2020 was adopted with the following amendments:
- Under the interpretation of “contractor”, insert the word “firm” between the words “a” and “natural”.
- Under the interpretation of ‘’Turnkey contract’’, insert a comma and the word “infrastructure” between the words “building’’ and “or”.
- In Clause 7 sub-clause (3), line 1, delete the words “any law” and substitute them with “laws of Lesotho”.
- In Clause 8, delete the whole Clause and substitute it with the following:
‘‘8. Second-hand goods shall not be- (a) eligible for procurement under this Act, except with the permission of the Minister who will, on advice of the Authority, issue such permit and condition under which a procuring entity can procure second-hand goods; and
(b) procured through a competitive process that also allows a tender with new goods. ”
- In Clause 10 sub-clause (2), line 1, insert ‘‘Procuring Entity’’ between the words ‘’the’’ and “Central’’.
- In Clause 17 sub-clause (g), insert the words ‘‘procurement process” between “comma” and the word “opportunity’’.
- In Clause 24 sub-clause (5), line 1, insert a comma and the words “, on ad hoc basis” after the word “may”.
- In Clause 32 sub-clause (2), line 2, insert a comma and the words “on ad hoc basis,” after the word “may”.
- In Clause 50 sub-clause (4), line 1, insert the words “on ad hoc basis “after the word “may”.
- In Clause 64, line 1, insert the words “for that tender,” after the word, “tenderer”.
- In Clause 69 sub-clause (2) (a), delete the words “Ministry of Public Works,” and substitute them with “relevant procuring entity or body;”
- In Clause 74, line 4, delete all the words after the word “period” and substitute them with a “full stop”.
- In Clause 74, insert the numbering (1) and add a new sub-clause(2) as follows: “(2) A cooling off period shall be a period of ten days”
- In Clause 78 sub-clause 1, line (2), after the word ‘‘Basotho’’ insert a comma and the following words: between the words: “women, youth and people with disabilities”
- In Clause 78 sub-clause (2), line 3, insert the words, “or disadvantaged groups” after the word “SMEs”.
- In Clause 85 sub-clause (1), line 2, insert the words “its advertisement period” between the words “and” and “shall”.
- In Clause 89 sub-clause (3) (a), delete the word “of”.
- In Clause 95 sub-clause (1), line 1, delete the word “negotiation” and substitute it with the word “negotiate”.
- In Clause 95 sub-clause (3), line 4, delete the words “in a” and substitute them with “of costs and the”.
- In Clause 96 sub-clause (4), line 3, delete the word “file”.
- In Clause 97 sub-clause (4), line 1, delete the comma and all the words to the end of the sub-clause and substitute them with “signing of a contract to any senior officer except the head of a procurement unit”.
- In Clause 97 sub- clause (5), line 2, delete a “hyphen” and numbering (a) and delete sub-clause (5) (b).
- In Clause 99 sub-clause (1), line 3, after the word “known”, delete the word “sources” and substitute it with the words “suppliers or service providers”
- In Clause 119, delete the numbering “(7)” and substitute it with “(5)” and renumber sequentially.
- In Clause 130 sub-clause (4) (a), after the word “academic” insert the words “or professional”.
- In Clause 139 sub- clause (1), line 1, after the word “within” insert the words “30 days or”.
After thorough scrutiny of the Bill, the Committee recommends that the House
adopts the Bill as amended (Annex 2)
The Committee wishes to submit this report to the House for adoption
Members of the Committee
- Hon. M. R. Khati (Chairperson) 2. Hon. T. Kibane 3. Hon. T. Aumane 4. Hon. M. C. Hlao 5. Hon .T. T. Mosena 6. Hon. L. Hlalele 7. Hon. T. L. Mokhosi 8. Hon. M. Tlali 9. Hon. M. Hlalele 10. Hon .M. Motoboli 11. Hon. V. Malebo 12. Hon. K. Mathaba 13. Hon. L. Mohlajoa 14. Hon. H. Lehana 15. Hon. L. Litsoane 16. Hon. M. Maqelepo 17. Hon .M.Senauoane 18. Hon.M.Malefane