The Permanent Secretary,

REPORT OF THE ONE DAY SENSITIZATION WORKSHOP ON STRENGTHENING PROCUREMENT FUNCTIONS FOR COVID-19 AND EMERGENCY SITUATION TO FACILITATE PARTICIPATION OF SMALL AND MEDIUM ENTERPRISES, HELD ON WEDNESDAY, SEPTEMBER 30, 2020 AT MAJESTIC HALL ‘B’ TAHIR GUEST PALACE, IBRAHIM NATSUGUNE ROAD, NASSARAWA G.R.A. KANO STATE

PREAMBLE

The way for the governing class to strengthen the contract processes is to reinforce transparency and accountability in the procurement procedures. Therefore, a coordinated effort towards the fight against COVID-19 Pandemic is needed for our Small and Medium Scale Enterprises (SMEs) and to be sustained. However, institutionalization of transparency and accountability mechanism is the core of all Government Institutions and its entities. More so to reduce the effect, most of the eligible requirements as the bidding pre-requisite are eliminated. Whilst consideration is given to the premises registration to support the local content in the State.

For emphasis, the main aim of this Workshop is to acquaint the participants on the guidelines and procedures of Public Procurement as contained in the Guidelines issued by the World Bank as well as the State Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme.

The training conducted is to keep the SMEs owners abreast of the new requirements and incentives available to them including the rights to contract in the COVID-19 Pandemic period.

It is against this background that the public procurement procedure with a new procurement system contained in the State proposed Procurement Law and the e-Procurement to ensure Transparent, Efficient and Effective deliveries of Value for Money in Public Finance Budgeting and Expenditure would be known prior to assentment.

As theme of the Workshop implies, it is to review what transcended in the outbreak of COVID-19 which produced Global challenges causing drop of revenues and driving the global economy into recessesion coupled with depressions to the general populace.

COMMENCEMENT

The Event started with welcoming address by The Permanent Secretary Due process Bureau followed by Opening Remark by the Honourable Commissioner, Ministry of Commerce Barrister Ibrahim Mukhtar and the keynote address by the Special Guest of Honour, Honourable Commissioner Ministry for Planning and Budget Alhaji Nura Muhammad Dankade. The presenter started the presentation by giving the background to procurement reforms, definitions of Public Procurement, Key provisions of the Kano State Procurement Manual, Principles of Public Procurement, general qualification of Bidders, ground for exclusion of Bids, meaning of MSMEs, why MSMEs in Public Procurement? Impact of COVID-19 on MSMEs, common challenges faced by MSMEs in Public Procurement, and end by giving recommendations for MSMEs involvement in Public Procurement

The first paper was presented by Barrister Chukuma Chinaka Title: “Procurement waiver and incentives for SMEs to participate actively in the states’ Procurement process” and was chaired by the Chairman Kano State Chamber of Commerce Alhaji Dalha Abubakar (CEO/ALHAMSAD Investment Limited).

Second Session was chaired by Engineer Hussam Musa Karry, Former Permanent Secretary Ministry of Environment and the second Paper was presented by Misbahu Ahmad Badawi Title: “Guideline to increase Small and Medium Enterprises Participation in contract Award in Kano State”. His presentation is centered on the purpose of the Guideline and which is to address the challenges that the Small and Medium Enterprises face in participating and winning contracts award by the Kano State Government also to provide solutions to how such challenges/barriers can be overcome by SMEs not only to participate in such contracts and to be able to submit responsive Bids that will lead to award of contracts in the State.

The presenter also brings out the obstacles and problems, which he stated that value of contract is too high for SMEs to participate due to inability of the SMEs to meet financial (cash flow, average turnover), tight deadlines for preparation of Bids, high cost of Bids preparation including cost of producing paper bids, obtaining the bidding documents and submission of bids to the MDAs. In addition to the obstacles/barriers SMEs also commit some errors when they participate in Public Procurement Contract.

Third and the last session was chaired by Architect Muhammad Lawal Unguwar Gini former Director PRS, Due Process Bureau two papers were presented that is the third and fourth by Engineer Lawal G. Datti (third Paper) Title: Over view of Public procurement process in Kano State” and Engineer Ibrahim Idris (fourth paper) Titled Understanding Effective Procurement process in Kano State”. The presenter of the third paper, Engr. Lawal G. Datti started by giving an overview of Public Procurement Process in Kano where he stated that at the inception of the democratic government In 1999, the Federal Government observed that the contract award system lacked the required transparency in the award, the World Bank was commissioned in 1999 – 2000 to carry out a Country Procurement Assessment Review (CPAR) and the CPAR report revealed that 60k was lost to underhand practices out of every N1.00 spent by Government. Budget Monitoring and Price Intelligence Unit (BMPIU) was set up in 2001 to mitigate these corrupt practices using Treasury Circulars issued by the Accountant General of the Federation.

The fourth paper was presented by Engr. Ibrahim Idris, titled Understanding Effective Procurement Process in Kano State. He started by defining what Procurement is as the acquisition of goods, works and/or services at the best possible total cost of ownership in the right Quantity and Quality at the Right time, in the Right Place for direct benefit or use of Government, Corporation or Individuals via a Contract and/or Direct force. The paper dwelt on what is the mission of Public Procurement? This is to ensure and enable Procuring Entities meet their policy and business objectives in the delivery of better Public Services, category of Public Procurement, Principles for Public Procurement (i.e. competition, Accountability, Transparency, Fairness, Economy and Efficiency), Public Procurement Process/stages. These are the basic stages of due process in Public Procurement which include: pre-bid stage, Bidding stage and post bid stage.

CHALLENGES

Common challenges faced by SMES in Public Procurement include:

• Lack of knowledge on opportunities in Public Procurement
• Lack of trust in the public procurement system and processes
• Non-competitiveness of SMEs
• Failure of SMEs to meet statutory eligibility requirements e.g. registration, tax and social security obligations, adequate technical personnel etc.
• Poor capital base of SMEs
• Poor technology infrastructure and skill gaps
• Non-collaboration of SMEs in order to participate in the procurement process
• Poor patronage and incentives by Public Authorities
• Bureaucratic procedures and processes in procurement proceedings
• Poor completion or outright abandonment of past projects by SMEs

RECOMMENDATIONS

• Periodic trainings, workshops and other capacity building exercises for MSMES on the procurement system, processes and procedures;
• the Due Process Bureau for publication on its website, and may as well be forwarded to the MSMEs body in the State for publication;
• Waiver of some tax, social security and other eligibility requirements;
• Procuring entities may breakdown procurement packages into lots of qualitative and quantitative terms particularly for non-complex projects to enable SMEs meet minimum requirements  e.g. cash flow/turn over, relevant experience etc.;
• Procuring entities should encourage in the standard bidding documents and other solicitation documents the formation of joint ventures and sub-contracting arrangements by MSMEs to deliver specific projects;
• Procuring entities should encourage free download of bidding documents from their respective websites;
• If payments are to be made for bid or solicitation documents, it should not exceed the cost of printing and other necessary incidentals
• Deployment of technology to reduce cost, time and excessive physical interface should be encouraged e.g. electronic bid submissions of password protected, read-only bids and quotation;
• Waiver of some financial instruments such as bid security, advance payment and performance guaranties for specific projects or for higher monetary threshold projects;
• Submission of performance bond, advance payment and bid security declarations in place of bank or insurance instruments;
• Advance payments may be reviewed slightly upwards;
• MSMEs must build on their institutional structures and capacities;

CONCLUSION:

Government resources are scare and must be judiciously expended for the common good and in the public interest;

Hence, for SMEs to effectively implement government procurement, they must be competitive;

The potentials of SMEs in Kano State’s economic activities could be harnessed optimally through deliberate, constructive and decisive public procurement instruments, processes and procedures;

To be and remain competitive by MSMEs is a joint task that must be accomplished with the Government; and

Transparency, efficiency, competition shall be enthroned to attain value-for-money and fitness for purpose in all procurement proceedings , while punishments must be meted out as deterrent to people that may attempt to or subvert laid down procedures.

BLD.  MAS’UD LADO SALEH                                               NASIR ABDULLAHI HABIB

    Senior Building Officer                                                    Chief Confidential Secretary

COMMUNIQUE ISSUED AT THE END OF A 1-DAY SENSITIZATION WORKSHOP ON STRENGTHENING PROCUREMENT FUNCTIONS FOR COVID-19 AND EMERGENCY SITUATION TO FACILITATE PARTICIPATION OF SMALL AND MEDIUM ENTERPRISES, HELD ON WEDNESDAY, SEPTEMBER 30, 2020 AT MAJESTIC HALL ‘B’ TAHIR GUEST PALACE, IBRAHIM NATSUGUNE ROAD, NASSARAWA G.R.A. KANO STATE

After exhaustive deliberation of the presentation and the contributions of the participants the Workshop resolved as follows:

i.          Periodic trainings, workshops and other capacity building exercises for MSMES on the procurement system, processes and procedures;

ii.         The Due Process Bureau for publication on its website, and may as well be forwarded to the MSMEs body in the State for publication;

iii.        Waiver of some tax, social security and other eligibility requirements;

iv.        Procuring entities may breakdown procurement packages into lots of qualitative and quantitative terms particularly for non-complex projects to enable SMEs meet minimum requirements e.g. cash flow/turn over, relevant experience etc.;

v.         Procuring entities should encourage in the standard bidding documents and other solicitation documents the formation of joint ventures and sub-contracting arrangements by MSMEs to deliver specific projects;

vi.        Procuring entities should encourage free download of bidding documents from their respective websites;

vii.       If payments are to be made for bid or solicitation documents, it should not exceed the cost of printing and other necessary incidentals

viii.      Deployment of technology to reduce cost, time and excessive physical interface should be encouraged e.g. electronic bid submissions of password protected, read-only bids and quotation;

ix.        Waiver of some financial instruments such as bid security, advance payment and performance guaranties for specific projects or for higher monetary threshold projects;

x.   Submission of performance bond, advance payment and bid security declarations in place of bank or insurance instruments;

xi.        Advance payments may be reviewed slightly upwards;

xii.       MSMEs must build on their institutional structures and capacities;