Lawmakers demand swift overhaul of procurement rules

The Ministry of Finance and Economic Planning (MINECOFIN) has been given two months to update standard bidding documents and six months to revise the 2022 public procurement law, in a move aimed at improving efficiency, fairness, and accountability. The directive was issued by the Public Accounts Committee (PAC) on Thursday, March 2, while presenting its assessment of the law’s implementation to the Lower Chamber. The committee recommended aligning the law with the Sustainable Public Procurement Policy, fast-tracking pending regulations, updating bidding documents, and addressing structural barriers that limit the participation of local firms. ALSO READ: Delays, inflated costs 'hit public projects' under new system Presenting the committee’s decisions, PAC Deputy Chairperson Cecile Murumunawabo said the review is intended to address gaps affecting enforcement. “The law must be revised to resolve implementation challenges within a period not exceeding six months,” she said, adding that standard bidding documents must be aligned with the law within two months. The report, presented by PAC Chairperson Valens Muhakwa, highlights persistent weaknesses despite improvements brought by the 2022 law. ALSO READ: PAC cautions public entities on respect for procurement law Key findings The review found that the law, which is structured around general provisions, procurement procedures, contract implementation, administrative errors, and penalties, replaced the 2018 legislation to address gaps such as corruption risks, limited innovation, weak regulatory authority, frequent contract amendments, and inadequate evaluation mechanisms. However, PAC noted that as circumstances evolve, new challenges have emerged, making further revisions necessary. Although some implementing regulations have been issued, inconsistencies remain between certain provisions of the law and ministerial orders establishing procurement guidelines. ALSO READ: Public procurement: Weak oversight is costing you billions Several key regulations are still pending, including those governing procurement in diplomatic missions, public commercial companies, emergency procurement, innovation-based procurement, and feasibility study approvals for works contracts. Stakeholder consultations PAC consulted several institutions, including MINECOFIN, Rwanda Public Procurement Authority (RPPA), Rwanda Information Society Authority (RISA), the Ministry of Local Government, the City of Kigali and provinces, Rwanda Law Reform Commission, the Institute of Procurement Professionals of Rwanda, the Private Sector Federation, and Transparency International Rwanda. The consultations highlighted progress in implementing the procurement framework, alongside persistent challenges affecting efficiency, compliance, and participation. Private sector concerns The Private Sector Federation said small and medium enterprises (SMEs) still face barriers to accessing public tenders due to strict requirements such as high bid securities and experience thresholds. Large contracts are often bundled instead of being split into smaller lots, limiting SME participation. Other concerns include delayed payments beyond the legally required 45 days, weak enforcement of final contract handover procedures, and limited access to financing using procurement contracts as collateral. Additional challenges cited include competition from foreign firms that later register locally to benefit from tax incentives, limited capacity-building for local engineers, restrictive subcontracting limits, and difficulties handling urgent works outside standard procedures. Civil society and professional input Transparency International Rwanda reported an increase in procurement irregularities over the past five years, particularly at the local government level, with the value of problematic tenders rising significantly between 2019/2020 and 2023/2024. Key issues include weak contract management, delayed payments, abnormal pricing, incomplete works, project delays, and insufficient feasibility studies and market research. The organisation also warned that corruption risks persist across sectors. The Institute of Procurement Professionals of Rwanda noted that while the law has improved practices, some provisions need revision. It recommended allowing correction of arithmetic errors in bids instead of automatic disqualification and reviewing rules governing contract modifications, which are seen as slowing project implementation. Legal and institutional gaps The Rwanda Law Reform Commission said it reviews draft regulations to ensure consistency with the law, noting that while some have been incorporated into ministerial orders, others remain pending. Government institutions, including MINECOFIN, RPPA, and RISA, said the law has improved the system, with about 80 percent of tenders awarded to locally produced goods and services. The e-procurement system now handles about 89 percent of tenders and is integrated with multiple platforms. However, challenges persist, including internet connectivity issues, incomplete system adoption, and difficulties faced by foreign bidders during registration. Officials also noted that the law predates the 2024 Sustainable Public Procurement Policy, underscoring the need for alignment. Local government challenges Local authorities cited operational constraints, including reliance on centralised framework agreements that can delay service delivery and lengthy approval processes for contract modifications. They also flagged the absence of strict timelines for contract signing as a cause of delays. Some institutions still use outdated bidding documents, and there are calls to grant greater procurement autonomy to capable non-budgeted entities. During the session, MP Jennifer Wibabara backed the revision of the law, citing gaps in addressing corruption. A study by Transparency International Rwanda also pointed to bribery risks in procurement, with some respondents reporting requests for illicit payments, in some cases amounting to a significant share of contract values.

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Lawmakers demand swift overhaul of procurement rules