PROVINCIAL ASSEMBLY OF SINDH
NOTIFICATION
KARACHI, THE 25th May, 2009
NO.PAS/Legis-B-2/2009- The Sindh Public Procurement Bill, 2009 having been
passed by the Provincial
Assembly of Sindh on Friday,
the 17th April, 2009 and assented to by the Governor of Sindh on 22nd May, 2009 is hereby published as an Act of the Legislature of Sindh.
THE SINDH PUBLIC PROCUREMENT ACT, 2009
SINDH ACT NO: IV OF 2009.
(First published after having received the assent of the
Governor of Sindh in the Gazette of Sindh (Extra-Ordinary) dated 25th May,
2009.)
AN ACT
to provide for
establishment of Public Procurement Regulatory Authority or regulating public
procurement of goods, services and works in the public sector.
Preamble WHEREAS it is expedient to provide for the establishment
of Public Procurement Regulatory
Authority
for regulating
procurement
of goods, services and works in the public sector and for matter connected therewith or
ancillary thereto;
It is hereby enacted as follows:-
CHAPTER
1
1. Short title extent and commencement (1) This Act may be called the Sindh Public Procurement Act, 2009.
(2) It extends to the whole of Sindh.
(3) It shall come into force at once and shall be deemed to have
taken effect on and from 22nd August, 2007.
2.Definitions In this Act, unless there is anything repugnant in the subject or
context - (a) "Authority" means the Sindh Public Procurement Regulatory
Authority established under section 3;
(b) "Board" means
the Board of
Directors
of
the Authority
constituted under section 6;
(c) "Chairman" means
the Chairman of the Board
(d) "Fund" means the fund established under section 9;
(e)
"goods" means articles and objects
of every kind and description including raw materials, products, equipment,
machinery, spares and commodities in any form (including solid, liquid and gaseous
form), and includes
services
incidental to installation, transport, maintenance and similar
obligations related to the supply
of goods
if the value of these services
does
not exceed the value of such goods;
(f) "Government"
means the Government of Sindh;
(g) "Managing Director"
means the Managing Director appointed under section 8;
(h) "member" means a
member of the Board;
(i) "mis-procurement" means public procurement in contravention
of any provision of this Act, any rule, regulation, order
or instruction made there under or any other law in respect
of, or relating to, public procurement;
(j) "prescribed" means prescribed by rules made under
this
Act;
(k) "procuring agency"
means -
i.
any
Department or Office of Government; or ii. District Government; or
III. any authority, corporation,
body or organization established
by law or which is owned or controlled
by Government;
(I)
"Public Fund" means the Provincial
Consolidated Fund and the Public Account of the Province
and
includes funds of enterprises which are owned or controlled by Government;
(m)
"public procurement"
means acquisition of goods, services
or construction of any works financed wholly or partly out of the Public Fund, including projects of public-private partnership, unless excluded otherwise by Government;
(n) "regulations"
means regulations made under this Act;
(o) "rules" means rules made under this Act;
(p) "service" means any object of procurement other
than
goods or works; and includes consultancy services; and
(q) "works" means any construction work (including electrical
and mechanical work) consisting of erection, assembly. repair, renovation, or demolition of a building or structure or part thereof, such as site preparation,
excavation, installation of equipment or materials
and decoration, finishing and includes incidental
services such as drilling, mapping, satellite
photography, seismic investigations
and similar activities, if the value of those services does not
exceed that of the works themselves.
CHAPTER II
Establishment of
Authority
3. Establishment of Authority (1)
There shall be established an Authority to be called the Sindh Public Procurement Regulatory Authority for carrying out the purposes of this Act.
(2) The Authority shall be a body corporate,
having perpetual succession and a common seal with powers subject to the provisions of this Act, to acquire and hold property,
both moveable and immovable,
and,
sue and be sued by the name assigned to it by sub-section (I).
(3)
The headquarters of the authority shall be at Karachi and it may establish its offices at such other place or places in the Province of Sindh, as it
may consider appropriate.
4. Power of Government to issue directives Government may, as and when it considers necessary, issue directives to the Authority on matters of policy, and such directives shall be binding on the
Authority.
5. Functions and Powers of the Authority (1)
Subject to other
provisions of
this Act, the Authority may take such measures and exercise such powers as may be necessary
for improving governance, management, transparency,
accountability
and
quality
of public procurement of goods, services and works in the public sector, as well as
in collaboration with the private sector.
(2) Without prejudice
to the generality of the powers conferred by sub- section (1), the Authority may -
(a)
examine, evaluate, assess the application of laws, rules,
regulations, policies
and
procedures in respect of or relating to, procurement and also make recommendations
thereof;
(b) conduct research and recommend to Government
formulation of new laws, rules and policies, in respect of or
related to
public procurement and revisions therein;
(c) make regulations
and lay down codes of ethics and
procedure relating to public procurement,
inspection of
standards and quality of goods
services and works;
(d) provide and coordinate assistance to procuring agencies for developing and improving
their institutional framework
and public procurement activities;
(e) study and report to Government
on overall performance
of procuring agencies and make
recommendations for
improvement in their
institutional set up and practices;
(f) call
any functionary of procuring agencies
to
provide assistance
in its functions and call for any information from such agencies in pursuance of its objectives and functions;
(g) to provide guidance to procuring agencies regarding
implementation of laws, rules, procedures relating to procurement;
(h) organize and manage capacity
building activities for the
personnel of the procuring agencies;
(i) provide for dispute resolution mechanism in line with the
best international Practices; and
(j) perform any other function and exercise such powers as may be prescribed
through the rules in framed pursuance of this Act and may be assigned to it by Government or that is incidental or consequential to any of the aforesaid functions.
Chapter
III
Management and Administration of the Authority
6. Board (1)
General
directions and administration of
the Authority
and
its affairs shall vest in a Board which may exercise all powers, perform all functions and do all acts and things which may be exercised, performed or done by the
Authority.
|
(2)
The Board shall consist of –
|
(vii)
|
Secretary, Irrigation
and Power
Department;
|
Member
|
|
(viii)
|
Secretary, Works & Services
Department;
|
Member
|
|
(ix)
|
Secretary, Information Technology
Department;
|
Member
|
|
(x)
|
Secretary (General Administration)
Services, General Administration and
Coordination Department;
|
Member
|
|
(xi)
|
President of Karachi Chambers of
Commerce & Industry or his nominee;
|
Member
|
|
(xii)
|
nominee of Pakistan Engineering
Council;
|
Member
|
|
(xiii)
|
a renowned professional
in Information Technology to be
nominated by Government;
|
Member
|
|
(xiv)
|
a renowned professional
in management and financial sectors to be nominated
by Government;
|
Member
|
|
(xv)
|
a representative of Transparency
International Pakistan, Karachi;
|
Member
|
|
(xvi)
|
two
members from
Civil Society
to be nominated by Government;
|
Members
|
|
(xvii)
|
representative of the Auditor
General of Pakistan; and
|
Member
|
|
(xviii)
|
Managing Director
|
Member
|
(3) The Managing Director shall also act as a Secretary of the Board.
(4)
A member appointed from the private sector shall hold office for
a period of three years and shall be entitled
to such terms and conditions as the Board may determine.
(5) A member from the private sector may, by writing
in his hand addressed to the Chairman
of the Board, resign his office.
(6)
A casual vacancy in the office of a private sector member shall
be filled by appointment of
another member from the private sector for the residue of the terms of his predecessor.
7. Meeting of the Board (1)
The meeting of the Board shall be presided over by the Chairman or,
in his absence
the Vice Chairman shall preside the meeting of
the Board.
(2) Seven members shall constitute a quorum for a meeting of the
Board
requiring a decision by the Board.
(3) The meeting of the Board shall be held at such times, places and in such manner as may be prescribed by regulation.
(4)
The members shall have reasonable
notice of the time and place
of the meeting and matters on which a decision by the Board shall be taken in such meeting.
(5) The decision of the Board shall be taken by the majority of its
members present and, in case of a tie, the member presiding a meeting shall
have
a casting vote.
(6) All orders, determination and decision of the Board
shall
be taken in writing and shall be signed by the Managing
Director.
8. Managing Director (1)
Government shall select
and
appoint
a
full-time Managing
Director to serve as member of the Board and shall be responsible
for day to
day
administration of the Authority for such period and on such terms and conditions as determined by the Government on the recommendation
of the Board.
(2)
The Managing Director shall be appointed for three years and he
shall be eligible for re-appointment but his total tenure shall in no case exceed six years.
if he -
(3) No person shall be appointed or continue as Managing Director,
(a) has not
been in public
administration in BPS-20;
(b) has been from private sector, not having less
than 15 years of experience and rich exposure in public procurement;
(c) has
been
convicted of an
offence
involving
moral
turpitude;
(d) has been removed from service for
misconduct; (e)
has been adjudicated as insolvent;
(f) is incapable of discharging his duties by reasons of physical or mental incapacity and
has
been
so
declared by
a
Medical Board appointed by Government; or
(g) fail to disclose
any conflict of interest at or within the time provided for such disclosure
by or under this Act or
contravene any of the provisions of this Act.
(4) The Managing Director
may, at any
time, resign his office by
writing under his hand addressed to Government.
(5)
The Managing
Director shall be paid such salary and allowances
as the Board may determine but his salary and allowances shall not be varied
to his disadvantage during his term of office.
(6)
The Managing Director shall not, during the term of his office, engage
himself to any other service, business, vocation or employment nor shall
he before the expiration of one year thereof enter into employment or accept any advisory
or consult relationship with any person engaged in public
procurement activity: Provided that where the Managing Director is a Government servant there shall be
no such restrictions on his employment after
he has retired or transferred from the post of Managing Director; and where he
is from private sector he
shall not have any direct or indirect financial interest or have any connection with any company engaged
in public procurement activity for so
long as he holds office and for a period of
one year thereafter.
(7) The Managing Director shall have power and responsibility to-
(a) exercise administrative control over the personnel
of the
Authority;
(b) exercise, in respect of the Authority, such other
management administrative and financial powers as
deemed appropriate by the Authority;
(c) submit
the annual budget proposals of the Authority to the
Board;
(d) prepare the annual report
of the Authority for the Board
and Government;
(e) exercise such powers as the Board may delegate to him;
and
(f) act on behalf of the Authority, in any emergency, subject to the obligation
to report such action to the Board at its next meeting and to seek the Board's ratification of any action so taken.
Chapter IV Financial Provisions
9.Fund (1) There shall be established a Fund to be known as the Sindh Public Procurement Regulatory Authority Fund which shall vest in the Authority and
shall be utilized by the Authority to meet the charges in connection with its
functions under this Act.
(2) To the
credit of
the
Sindh Public Procurement
Regulatory
Authority, a fund shall be placed comprising:
(a) such
sums as Government may, from time to time, allocate to it in the annual budget;
(b) grants;
(c) Income
from investment by the Authority; and
(d) all other sums or properties
which
may in any manner become payable
to,
or vest in, the Authority in respect of any matter.
(3) The
Authority, while performing its functions
and
exercising its powers under
the
Act,
shall
exercise highest sense of prudence as far as expenditures are concerned.
10. Expenditure to be charged on the Fund
(1)
The Fund shall he expended for the purpose of -
(a)
paying any expenditure lawfully incurred by the Authority,
relating to remuneration of its members, employees,
advisers, and consultants of the Authority, including
provident fund contributions, superannuating allowances or gratuities, legal
fees and costs as well as other fees and costs;
(b) paying any other expenses,
costs or expenditure properly incurred or accepted
by the Authority in the performance of its functions or the exercise of its powers
under this Act;
(c)
purchasing or hiring equipment,
machinery and any other work and undertakings in the performance of its functions
or the exercise of its powers under this Act;
(d) repaying any financial accommodation received; and
(e) generally paying any expenses for carrying into effect the provisions of this Act.
11. Power to obtain finances and receive grants The
Authority may, from time
to
time
and
with the approval of Government, accept
grants from entities both domestic and
international,
including multilateral agencies for meeting any of its obligations
or performing of any of its functions.
12.Investment The Authority
may invest
its surplus
funds in
accordance
with the
instructions of Government.
13. Budget and Accounts The Authority shall cause its accounts to be maintained
properly and in respect
of each financial year submit
for approval of Government by such
date
and in
such form
as
may be specified by
Government a statement showing the estimated receipts and current expenditure
and the sums to be required from Government during the next financial year.
14.Maintenance of Accounts The Authority shall cause proper accounts
to be kept and shall after the end of each financial year cause to be prepared for that financial year a
statement of accounts of the Authority which shall include a balance
sheet and an account
of receipt and expenditure.
15. Audit The accounts of the Authority shall be audited every year through the
Auditor General of Pakistan.
Chapter V
Regulatory and Other Provisions
16. Information (1)
The
Authority may call for any
information
required by it for carrying out the purposes of this Act, from any person or any institution in
public procurement activities;
and
any such person or institution shall provide the
required information called by the Authority.
(2)
The Authority shall furnish to Government
such information with respect to the policies and procedures it is pursuing or proposes to pursue in the performance of any of its functions under this Act as Government may, from time to time, require.
17. Annual Report Within three months from the end of each financial year, the Authority shall cause a report to be prepared on its activities including
inquiries and
investigations made
by the Authority under this Act during that financial year and release to the
public after it has been seen by the Cabinet.
Chapter VI
Miscellaneous
18.Appointment of Officers and Staff etc.
(1)
The
Authority may, from time to time and within its resources,
appoint such officers, servants, advisers, consultants and experts as it may
consider necessary for
performance of its functions.
(2)
The Authority
shall by regulations prescribe the procedure
for appointment of its officers, servants, advisers, consultants and experts and the terms and conditions of
their service.
19.Members, Officers, etc. to be public servant.
The Chairman,
members, Managing Director, officers, servants,
advisers, consultants and experts of the Authority shall, when acting or purporting to act
in pursuance of any of the provisions of this Act or the rules and regulations
made there under, be deemed to be public servants within the meaning
of section 21 of
the
Pakistan Penal Code.
20.Delegation
The Authority may, by such conditions and limitations as it may deem fit to impose, delegate any of its functions or powers to the Managing Director, or
one or more members or any of its officers except the power
to-
(a) approve audited accounts;
(b) recommend exemption under section 21; and
(c) make
or repeal regulation made under this Act.
21. The Authority may, for reasons to be recorded
in writing, recommend
to Government that the procurement of an object or
class of
objects in the national interest
be exempted from the operation of this Act or any rule or
regulation made there under or any other law regulating public procurement and Government on such recommendations shall exempt the aforesaid
objects or class of
objects
from the operation of the
laws
and
rules
and
regulations made there under.
22. Validity of proceedings No act or proceedings of the Authority or the Board shall be invalid by reason
only of the existence
of a
vacancy in, or defect in the constitution
of time Authority
or the Board.
23. Indemnity No suit, prosecution, or other legal
proceedings shall lie against the
Authority, the Board, the Chairman or any member, officer, servants, advisers or consultants of
the Authority
in respect
of
anything in good
faith done or intended to be done under this Act or the rules and regulations
made
there under.
24. Common Seal (1)
The Authority shall have a common
seal and such seal shall be kept by the Managing Director or such other person as the Chairman
may authorize.
(2) The seal shall be authenticated in the same manner as may be prescribed
by Regulation
and any document purported to be sealed with the seal so authenticated shall be receivable as evidence of the particulars stated in the document.
25. Winding Up No provision of law relating to winding up of bodies corporate shall apply
to the Authority and the Authority shall not be wound up except by the orders
of Government in the same manner as Government may direct.
26. Powers of Government to Make Rules Government may, by notification in the official Gazette make rules for
carrying out
the
purposes of this Act.
27. Powers of the Authority to Make Regulations
The Authority may make regulations, not inconsistent with the provisions of this Act and the rules made there under,
for
carrying out the purposes of this Act.
BY ORDER OF THE SPEAKER PROVINCIAL ASSEMBLY OF SINDH
HADI BUX BURIRO
SECRETARY
PROVINCIAL ASSEMBLY OF SINDH
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