Fundasaun Mahein, March 31 2014
Execution of the 2014 State General Budget for the Defense and Security Sectors
Mahein Nia Hanoin report No. 6 discusses FM’s thoughts and recommendations for the Ministry of Defense and Security (MDS) to consider in executing its 2014 State General Budget allocation. FM’s monitoring has uncovered a number of important notes for the MDS to consider. Sources utilized and topics covered in this report include the audit conducted for the MDS by consultant Deloitte in 2012, lessons learned from the MDS’s execution of the State General Budget in 2013, and the control capacity of National Parliament Committee B in the defense and security sector.
The report created by Deloitte recommended that the MDS improve both its management policies and improve its procurement policies and system, as procurement for the State General Budget has been implemented poorly in the past.
FM’s analyses of the execution of the 2013 State General Budget revealed that not all of the procurement processes undertaken were in accordance with existing procurement laws. FM found that 209 single source procurement contracts were not in accordance with existing procurement laws. FM believes it is important that the public is aware of the illegality of these projects, especially as some of them are not urgent projects.
Finally, an important goal of this report is to urge the National Parliament to supervise the planning and subsequent implementation of a more effective procurement process. Doing so would guarantee government responsibility for management and consolidate the state’s focus on supporting national development.
1. Recommend that the MDS to establish a procurement timeline for projects lasting a year or more.
2. Recommend that the MDS follow procurement laws and guidance on good-practices for the execution of the 2014 State General Budget.
3. Recommend that the MDS ensures the quality execution of the 2014 State General Budget.
4. Recommend to the National Parliament, and Committee B in particular, to intensify supervision and implementation for the planning of a procurement process, and that the MDS is involved in the creation of an agreeable plan.
5. Recommend that the National Parliament Committee B focuses special attention to the types of public contracts the MDS grants. The implementation of the law (regarding the 2014 State General Budget) and the application of procurement law should be rigorously supervised.
6. Recommend to the state general inspector, Commission of ANTI Corruption and Public Ministry to make an inspection and investigation into the procurement process of the MDS in 2013, particularly for single source procurement contracts.
For more information please contact:
Executive Director of FM
Phone Number: (+670) 7737-4222, or (+670) 7756 1184