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Model Procurement System in IGaCoS

Study Analysis 2002

Percenito O. Bustamante, MPA

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Chapter 1INTRODUCTIONBackground of the Study

Over time, public procurement had been the subject of discussion among policymakers and administrators of government institutions, supervisors and rank-and-fileemployees, personalities in the private sector and ultimately the general public. Their main concern is focused on graft and corruption that somehow, since time immemorial,seems to have dictated its processes and is perceived to have been transformed alreadyinto a culture.From the global point of view, public procurement embodies a wide range of effectsupon its intended purpose that is geared towards satisfying public needs. It coversdiverse forms of goods and services. In effect, it had been seen as of paramountsignificant into the day-to-day activities of the people. Hence, in times when its processes are bereft of accountability, the public will have to endure the effects of deficient public services.In fact, in the World Bank had identified public procurement process assignificant in public management reform. This is so acknowledged as criticalconsidering that the institution’s role in development can be felt in its extension of financial assistance to relatively poor countries. With this, it has supported them in thedifferent regions throughout the world in the field of procurement and in various forms

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and approaches. This commitment from the World Bank was triggered by the realities of weak procurement process during those times among the institution’s beneficiaries.In the Philippine context, public procurement is viewed from the perspective of incurring expenditures, which are focused on poverty alleviation, maintenance of peaceand order and providing basic government services for the people to live productivelives. Given this premise, concerned government Offices at the national level areinitiating efforts to introduce measures to maximize the use of limited financialresources.Relative hereof, a remarkable effort is presently emerging in both houses of Congress. This has reference to the proposed procurement reform bill, known as “TheGovernment Procurement Reform Act of 2002”. Though still subject for consolidation,yet, with this initiative, it implies that our legislators are cognizant of the public procurement process in this country. In essence, the principles governing the bill includetransparency, competitiveness, streamlined process and accountability.Amid these efforts of the government, a similar initiative is being pursued bynon-government organizations which is aimed complementing the same. Notable amongthese is the Procurement Watch, Inc. (PWI) which is involved in combating graft andcorruption in government by initiating procurement reforms through partnerships,research, training and advocacy like pursuing a Government Electronic ProcurementSystem.In the Island Garden City of Samal, the current public procurement has developeda sense of realization that acquiring goods and services is meant for addressing the needs

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