This Act, comprising 167 section, aims to (i) regulate and establish institutional structures to manage public procurement, provide procedures, processes and regulations for procurement of goods, works, services, disposal of unserviceable, obsolete, obsolescent, redundant or surplus stores, and equipment, optimise efficiency in public procurement, and obtain value for money; (ii) promote and encourage participation and competition in public procurement; (iii) promote integrity, transparency, proficiency, accountability, fairness and equitable treatment in a public procurement process in order to increase public confidence in a procurement system; (iv) promote sustainable development policies and objectives, including economic development and diversification, environmental conservation and social welfare, and inclusive governance processes. The Act establishes (i) the Lesotho Public Procurement Authority, responsible for regulating and overseeing the public procurement system. Its functions include monitoring compliance, developing procurement policies and standard documents, maintaining procurement information and databases, conducting audits and investigations, professionalising procurement, and debarring suppliers, contractors or consultants that contravene the Act; (ii) a Central Tender Board to conduct procurement above specified high-value thresholds; (iii) a Procurement Tribunal, which hears and determines appeals concerning procurement disputes and decisions made by procuring entities or the Central Tender Board. Public officials involved in procurement must act impartially and in the public interest, avoid and disclose conflicts of interest, protect confidential information and refrain from corrupt, fraudulent, coercive or collusive conduct. Tenderers, suppliers and contractors are likewise prohibited from engaging in corrupt, fraudulent, collusive or coercive practices. Procuring entities must prepare annual procurement plans linked to their budgets, establish qualification requirements for tenderers and use prequalification where appropriate. Open competitive tendering is established as the general procurement method, while alternative methods may be used under specified circumstances. The Act regulates national and international competitive tendering, while special procedures apply during declared disasters or emergencies and in circumstances requiring urgent procurement. For small-value construction works, services and supplies, procuring entities may involve local communities, contractors, artisans and tradespersons. In any case, procurement contracts must clearly establish the parties' obligations, prices, payment arrangements, delivery requirements, performance securities and remedies. The Act regulates contract administration, price adjustments and variations, progress and advance payments, subcontracting, inspection, insurance, liquidated damages, dispute settlement, termination and completion of procurement contracts. Contraventions of the Act constitute offences punishable by fines or imprisonment, or both.
Lesotho · 2023-01-01