The Federal Government has approved new guidelines that could bar contractors, consultants and service providers from participating in Federal Government procurement for between three and five years over specified misconduct, fraud and poor contract performance.
The new policy, contained in a circular signed by the Secretary to the Government of the Federation, George Akume, is titled “Implementation of the National Guideline on Debarment of Contractors.”
The guideline establishes grounds and procedures for excluding contractors and other service providers from federal procurement where they are found to have violated the Public Procurement Act, 2007, or engaged in wrongdoing relating to the execution of government contracts.
According to the government, the measure is intended to strengthen integrity, transparency and accountability in public procurement, ensure value for money and protect public resources from contractors who fail to meet contractual obligations.
The guideline identifies six major grounds for debarment. They include offering bribes, money, gifts or other benefits to influence procurement decisions; offering employment or other financially measurable benefits to government procurement officials for the same purpose; conviction for fraud or related offences involving public contracts; wilful failure to fulfil contractual obligations; a history of unsatisfactory contract performance; and falsification of documents.
Contractors who have previously been debarred by a multilateral organisation may also be considered for exclusion from Federal Government procurement.
Under the new framework, a contractor who is debarred will be prohibited from bidding for or receiving new Federal Government contracts. Ministries, departments and agencies will also be barred from soliciting offers from the affected contractor or approving subcontracts involving the firm or individual.
A debarred contractor will further be prohibited from conducting government business as an agent or representative of another contractor, consultant or service provider.
The sanctions will also apply to partners involved in joint ventures, although the guidelines allow an existing government contract or subcontract to continue where the relevant government agency determines that there are valid reasons for doing so.
The Bureau of Public Procurement will play a central role in implementing the new framework. The BPP may commence debarment proceedings where its review, surveillance or audit provides reason to believe that a contractor has breached the Public Procurement Act or relevant regulations.
A procuring entity may also recommend a contractor for debarment after conducting appropriate investigations and presenting evidence approved by its Accounting Officer.
The procedure includes provisions intended to give affected contractors an opportunity to respond to allegations before a final decision is reached.
The BPP is required to acknowledge a debarment request within seven working days, while the Secretary of the Debarment Committee is expected to review the submitted information within 10 working days.
Where grounds for possible debarment are established, the BPP must issue a notice to the affected contractor within five working days. The notice is expected to specify the allegations and grounds on which the proposed sanction is based.
The contractor will then have 10 working days to respond. The BPP may grant an additional period of not more than five working days where an extension is requested.
The response may be submitted personally or through legal counsel and must include supporting information as well as a verifying affidavit confirming that the information provided is truthful after due diligence has been conducted.
Where the affected contractor cannot be reached physically or electronically, the guidelines provide for publication of the proposed debarment in two national newspapers, the Tenders Journal and the BPP’s website for at least 10 working days.
After considering the contractor’s response, the Debarment Committee is expected to reach a decision on the merits. Where debarment is imposed, the BPP will issue a final notice stating the grounds, duration and implications of the sanction.
The name of the sanctioned contractor will subsequently be entered into the BPP database and published on the Bureau’s website, the Federal Tenders Journal and other relevant platforms.
The debarment period is expected to range from a minimum of three years to a maximum of five years, depending on the circumstances of the case and the decision of the Debarment Committee.
The new guideline builds on Nigeria’s existing public procurement framework established under the Public Procurement Act 2007, which created the BPP and provided the legal foundation for regulating Federal Government procurement.
Akume directed Accounting Officers to ensure that the guideline is brought to the attention of Tenders Boards, Procurement Planning Committees, procurement departments and other officials involved in government contracting.
The circular stated that implementation of the new guideline is effective immediately, signalling a more structured administrative process for dealing with contractors accused of procurement violations, fraud, falsification or persistent failure to deliver government contracts.
