TOUGH new measures to strengthen Government's procurement policy and reduce corruption in the public sector were introduced in Parliament yesterday by minister of finance and the public service Audley Shaw.

Shaw, who tabled a Ministry Paper (number 80/08) which featured a revised Government of Jamaica Handbook of Public Sector Procurement Procedures, said Prime Minister Bruce Golding has named a team to facilitate and expedite the process of formulating the procurement regulations.

Shaw also tabled a bill seeking to amend the Financial Administration and Audit Act (FAAA) to make it mandatory for Government departments to appoint audit committees to strengthen and improve corporate governance and deal promptly with issues raised by the auditor general. They will be subjected to a statutory body to be known as the Audit Commission.

That bill also seeks to empower the minister to make regulations which may provide for penalties of up to $1 million and up to one year imprisonment for breaching the provisions of the FAAA.

The Ministry Paper indicated that the procurement regulations would be placed under the same legislative regime governing the operations of the contractor-general.

It added that consultations would be undertaken between the Office of the Contractor General (OCG), the Attorney General's chambers, the Ministry of Finance and the Public Service, the Cabinet Office and Office of the Chief Parliamentary Counsel.

"At the end of the process, a Ministry Paper will be laid in Parliament seeking approval for the promulgation of the procurement regulations," the Ministry Paper added.
The FAAA bill noted that deficiencies and irregularities, including fraud, were highlighted by the auditor-general in his annual report to Parliament, approximately one year after the close of the financial year.

The delay between the finalisation of the accounts and the presentation of the reports has caused fraud to go undetected in some instances, and not speedily detected in others, the bill said.

"In recognition of these lacunae, it is considered necessary to establish an additional measure of financial control to minimise the incidence of inefficiencies in the Government's accounting system and ensure the integrity of the monthly and annual financial statements," it added.

At present, the finance minister may require a public body to appoint an audit committee from among its members. However, as a consequence of the need to strengthen and improve corporate governance, enhance accountability and demonstrate proper stewardship over public funds, improve financial reporting and ensure that appropriate actions were taken in response to audit findings, a decision was taken to make the appointment of audit committees mandatory.

The bill also seeks to establish a body, called the Audit Commission, as a statutory body to, inter alia, ensure continued effectiveness of audit committees and promote best practices in their operation.

The bill will also expand the definition of departments to include executive agencies, and will empower the minister to make regulations which may provide for the imposition of penalties on summary conviction in a RM Court of a fine not exceeding $1 million, imprisonment for up to one year, or both.