The Ministry of Finance and Treasury (MOFT) through the Treasury Division Procurement Unit (TPU) and the Central Tender Board (CTB) were established to provide a regulatory, monitoring and oversight service on public procurement and asset disposal matters in a transparent, accountable, efficient and effective manner in order to realise value for money for Solomon Island’s public funds.
In view of its core functions and responsibilities, MOFT has made significant progress in the following areas:
With the substantial increase in the value and volume of SIG’s procurement in recent years, it is imperative that public funds are expended in the proper manner and gets value for money public goods and services for the people of Solomon Islands. This is all the more important with the hosting of the Pacific Games in 2023 and the need to ensure that the provision of goods and services, and the activities undertaken are of good standard and quality.
Retrospective approvals for award of contracts, bid waivers and variations to contracts, regardless of the urgency or circumstances around the procurement are no longer being accepted by MOFT. Similarly, payments will not be approved for goods, works or services procured without prior approval from procurement authorities as designated under both Procurement Regulations 2021 and the SIG Procurement Manual 2022.
Delivery of goods and services (under simple procurement rules) must be properly certified before payments can be processed in MOFT, and this is where Ministries have been strongly urged to use Local Purchase Orders (LPOs) as the means of securing payment. On the other hand, Advance Payments are only limited to 20% for works procurements, but these are generally discouraged as it leads to abuse and uncertainties of the actual delivery of goods and services and places it low down the ranking of priority payments.
Advance Payments are discouraged as it leads to abuse and uncertainties of the actual delivery of specified goods and services.
Public procurement does not take place in a societal vacuum. The need for win-win partnerships with suppliers/vendors/contractors and members of the business community in general is never greater. It is therefore, against this backdrop that the business community is advised to ensure that fully signed contracts and addenda are in place before goods, works or services are provided to ministries. The business community is thus reminded to note the following:
MOFT will not take any responsibility for any goods, works and services delivered to ministries in the absence of fully signed contracts of addenda. These rules and guidelines have been re- clarified with ministries vide Finance Circular 01/2023: 2023 Budget Execution Strategy.
MOFT sincerely acknowledges the support and collaboration from our key stakeholders in the donor, business community, ministries and the general public in this very important endeavour.
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