OAG: $2m for PM’s office paid after waiver

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The Auditor-General found that $2 million worth of payments was made by the Economy Ministry for works for the Prime Minister’s new office after a “waiver of the tender process”.

This, according to the Remaining 2019 Audit Report on General Administration, Social Services, Economic Services and Infrastructure Services Sectors tabled in Parliament last week.

The Office of the Auditor-General (OAG) stated $808,000 was for payment for architectural services for the prime minister’s office complex and $1.26 million was for payment for lead consultancy service for the prime minister’s office complex.

The OAG stated public tenders must be called for any procurement of goods, services or works valued at $50,000 or more, unless the Tender Board had approved an exemption in accordance with the Procurement Regulations.

“Although approvals for urgent waiver of tender were sighted, audit could not ascertain whether these services or works carried out met the criteria for ‘provision of urgent infrastructure development and services’,” stated the OAG.

“It is recommended that the Procurement Regulation is reviewed to clearly define ‘urgent infrastructure development and services’.

The Economy Ministry said it noted the requirement of Procurement Regulation 2010.

“However, due to the urgency and nature of works and limited timeframe, the waiver of tender processes were sought,” the ministry stated.

The ministry stated the urgency was due to the building “deteriorating significantly and posing high risk to occupants”.

“Therefore, to expedite the construction works, the waiver of tender processes.”

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