In a landmark move to usher in more transparency and put an end to tender syndicates, the Bangladesh government has announced that 100% of government procurement will be conducted through an e-tendering system. The move is a component of the government’s broader initiative to introduce accountability, prevent corruption, and allow fair competition in government contracts.
Currently, around 65% of public tenders are going through the online system. However, with changes to the Procurement Act, e-tendering will become compulsory for all public procurements in the near future. The decision was made in a top-level council meeting chaired by Chief Adviser Professor Muhammad Yunus and was later endorsed by Press Secretary Shafiqul Alam.
A Step towards Greater Transparency
Public procurement has been a top priority in Bangladesh for decades with more than ever before making headlines with charges of corruption and favoritism and tender cartels. The move by the government to go to a completely digital procurement system should following instructions.
- Removing middlemen and bid cartels that rig the tender.
- Offer a leveled field on which all eligible firms can compete on a par.
- Reduce corruption by minimizing manual interference with the system.
- Maximize efficiency and effectiveness for optimal utilization of taxpayers’ funds.
Chief Adviser Professor Muhammad Yunus reiterated emphasis on having a level playing field competition and e-governance in his address to the meeting. “Public procurement is a major sector of government expenditure. Transparency in this sector is crucial for good governance and for economic stability. Through going to entirely 100% e-tendering, we are shutting loopholes through which nepotism and corruption can thrive,” he said
Why E-Tender?
E-tendering is electronic procurement management through which firms can bid for government contracts on an electronic platform. Benefits are:
1. Better Security: Online mechanisms ensure bid submissions are recorded and are not tamper proof.
2. Less Human Intervention: In contrast to traditional tendering, e-tendering minimizes human-to-human contact to reduce bribery and collusion risks.
3. Real time monitoring: Government and oversight agencies can track procurement processes in real time to increase accountability.
4. Cost Savings: An efficient process saves paperwork and bureaucratic red tape and hence makes the system cost effective.
While this system is used for 65% of procurement processes, large-scale implementation of e-tendering is set to revolutionize public procurement in Bangladesh.
Challenges in implementation
Despite its benefits, a switch to a complete 100% e-tendering system will not be without its challenges. Specialists list some potential obstacles as follows:
Technical Readiness: There are some smaller businesses and government departments that still lack that necessary digital infrastructure to take up e-tendering fully.
Sensitisation and Training: Government officers and entrepreneurs are relatively inexperienced with digitalisation and would need to be properly trained to make adjustments.
Cybersecurity Concerns: An entirely online system requires robust cyber defense mechanisms for protection of procurement secrets against intrusiveness and tampering.
In a bid to address these challenges, there has been proposed phased implementation of the full e-tendering system and training of civil servants and companies, IT infrastructure and infrastructure development and seamless transition.
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Industry and Public Perception
The decision has been met with mixed response by various stakeholders. It has been adopted by entrepreneurs as an opportunity to put an end to nepotism and make contracts accessible on a merit-based access.
Opposition Politicians: There are some opposition politicians who have suggested that although the system is fantastic on paper, the government needs to ensure proper enforcement and not develop new styles of digital corruption.
Civil Society Organizations: Anti-corruption bodies and activists for transparency have greeted the step as a landmark ruling in the journey towards good governance.
Md. Rashidul Islam of a company based in Dhaka said that there used to be a big volume of tenders that were hijacked by influentially syndicates. An all-electronic system provides a level playing field for honest businesses such as mine to bid for government contracts. Done right, it can be a game-changer for this industry. However, there have been complaints from some small businesses of difficulties in adapting to the digital system and appeals to the government to help them through the transition phase.
What Happens Next?
The government has also begun to prepare amending legislation for making compulsory full e-tendering. Government departments and ministries will be engaged in the months ahead in procuring systems upgradation, training of personnel, and registering all departments on the system of e-tendering. The transition is expected to be complete by this financial year and make Bangladesh a pioneer in this part of the world to possess a completely digital procurement system.
Conclusion
The 100% e-tendering program is a landmark for anti-corruption activity in Bangladesh. In efficient implementation, it can make the government more effective, save public money and make the field even for business. Though there are still challenges to overcome, the government’s dedication to digital governance and transparency indicates a bright future for public procurement reform in Bangladesh.
