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2008 Assessment

Yemen: Integrity Indicators Scorecard

Yemen: Integrity Scorecard Report > Sub-Category: Procurement
Indicators		Score
51	Is the public procurement process effective?	60
52	Can citizens access the public procurement process?	54

Indicator and sub-Indicator Details

Is the public procurement process effective?

51a: In law, there are regulations addressing conflicts of interest for public procurement officials.

Score:

YES

Comments: There are no specific regulations, although all those in charge of tenders and auctions at all stages must avoid conflicts of interest, or the possibility thereof, while undertaking their employment duties and tasks as set out by law.

References: Financial Law No. 8, 199,0 and subsequent amendments

Law of Tenders, Auctions and Stores No. 23, 2007, Article 95 (1) (b)[ LINK ]

51b: In law, there is mandatory professional training for public procurement officials.

Score:

YES

Comments: The law speaks only of preparing programs for training chairmen and members of tender committees and their respective staffs. There is no compulsory training in any of the relevant laws, including the Financial Law and the Anti-Corruption Law.

References: Law No. 32, 2007, Concerning Tenders, Auctions and Stores, Article 57 (8)

51c: In practice, the conflicts of interest regulations for public procurement officials are enforced.

Score:

100

Comments: "Procurement was a regular source of corruption in the executive branch. For instance, in September the Ministry of Public Works acknowledged before Parliament that only 20% of contracts were awarded by tender." From first source

It is obvious to many government employees that no significant attention is given to enforcing procurement laws, and this researcher has significant experience in the field.

References: [ LINK ]

[ LINK ]

51d: In law, there is a mechanism that monitors the assets, incomes and spending habits of public procurement officials.

Score:

YES

Comments: Although the law speaks of the establishment of the Supreme National Anti-Corruption Committee (SNACC), there is no specific stipulation for monitoring the changing wealth of procurement officials. Even with the Financial Disclosure Act, there is no specific follow-up mechanism to check for changes in the economic well-being of all relevant officials, not just procurement officials. The mandate is implied in the relevant laws, but it is inconceivably difficult to believe that they can be effective.

References: Financial Disclosure Law No. 20, 2006

Anti-Corruption Law No. 30, 2006

Procurement Law No. 23, 2007

51e: In law, major procurements require competitive bidding.

Score:

YES

Comments: The bylaws for the current effective Tender Law (2007) have yet to be enacted or are under preparation by a U.S. consulting firm. But if we can rely on the bylaws of the previously effective Procurement Law (1997), it sets out ceilings for undertaking other forms of bidding, and it is expected that the new bylaws will do the same.

References: Law No. 23, 2007, Tenders, Auctions and Stores

Bylaws of Tender Law, Prime Minister's Decrees No. 234, 1997, No. 3, 1997, [ LINK ]

51f: In law, strict formal requirements limit the extent of sole sourcing.

Score:

YES

Comments: The above defines cases when a direct purchase or contract is allowed.

References: Law of Tenders 23, 2007, Articles 16-18, [ LINK ]

51g: In law, unsuccessful bidders can instigate an official review of procurement decisions.

Score:

YES

Comments: Law sets out this right by presenting a request to the head of the entity for which the tender is made.

References: Law of Tenders, 23, 2007, Article 77 (a), [ LINK ]

51h: In law, unsuccessful bidders can challenge procurement decisions in a court of law.

Score:

YES

Comments:

References: Law of Tenders 23, 2007, Article E (1), [ LINK ]" target="_blank">[ LINK ]

http://snaccyemen.org/details.asp?id=1612&catid=33

51i: In law, companies guilty of major violations of procurement regulations (i.e. bribery) are prohibited from participating in future procurement bids.

Score:

YES

Comments: The articles speak to rejection of bids, possible revocation of licenses and suits for damages, if the completed works were unsatisfactory, if the contractor had undertaken some of the work or carried out some of the supply or services.

References: Law No. 23, 2007 for Tenders, Auctions and Stores, Articles 28 (a), 29

[ LINK ]

51j: In practice, companies guilty of major violations of procurement regulations (i.e. bribery) are prohibited from participating in future procurement bids.

Score:

100

Comments: There are stipulations for this in the current Procurement Law, but with the absence of a bylaws for Law 23, there have not been any procedures for implementing the law. There is no record of companies being prohibited for such violations, except for the boycott list that used to be effective throughout the Arab World). No record of banned companies for such violations exists.

References: Procurement Law

Law No. 23, 2007

Can citizens access the public procurement process?

52a: In law, citizens can access public procurement regulations.

Score:

YES

Comments: The Tender Committee website shows the pertinent laws and regulations, all of which clearly express the transparency of all procedures.

References: Official Gazette

Higher (or Supreme) Tender Committee, [ LINK ]

52b: In law, the government is required to publicly announce the results of procurement decisions.

Score:

YES

Comments: No stipulation exists to force the announcement of results of tenders except to the awardee and the unsuccessful bidders, but there is no stipulation for making the results public. It may come in the bylaws, but until then, the answer is no.

References: Law No. 23, 2007, Tenders, Auctions and Stores, Article 22 (b)

52c: In practice, citizens can access public procurement regulations within a reasonable time period.

Score:

100

Comments: When any new regulations are issued, they are usually published in at least one of the official newspapers (Al-Thoura). At least one of the English-language newspapers would have a translation or summation.

References: Media reports of issued laws

52d: In practice, citizens can access public procurement regulations at a reasonable cost.

Score:

100

Comments: Public TV sometimes reads out the entire text of a new law or regulation. In any case, the cost should not exceed that of a newspaper.

In any cases, new laws and regulations requiring legislative enactment are published in the Official Gazette.

References: Various media reports

Law No. 1, 2006, Bylaws of Parliament

52e: In practice, major public procurements are effectively advertised.

Score:

100

Comments: Tender announcements are always available in the print editions (and sometimes the Web editions) of Al-Thoura and in almost all the English-language newspapers. Other entities show them on their websites. Tender announcements can also be found with other sources that have ready access to such information.

References: [ LINK ]

[ LINK ]

52f: In practice, citizens can access the results of major public procurement bids.

Score:

100

Comments: The above is one of the rare occasions when the result of a tender was announced.

References: [ LINK ]