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Anti-Corruption Commission
SIGMA Regional Conference on Public Procurement
Head of Anti-Corruption Commission
Prof. Dr. Abdul Kharabsheh
Beirut, Lebanon
2-3 June 2015
Introduction:
The Hashemite Kingdom of Jordan took special notice of public expenditure audit, including
running or capital expenses. The latter comprised as well Government procurement. Light was
shed on this issue as it brings positive effects if mastered professionally, and negative effects if
misused. Consequently, an Audit Bureau was established under the Jordanian Constitution in
1952. The Bureau carried out the financial, administrative, and technical audit in various official
and semi-official governmental divisions. Consequently, Jordan started to adopt legislation,
regulations, and instructions providing best practices on spending and strengthening integrity and
transparency values. A Jordanian study showed that government procurement accounts for
approximately 40% of state budget, and is spent in procurement of goods, services, and major
construction projects such as schools and hospitals1
.
Institutional framework:
The following entities form an institutional framework supervising or governing receiving
operations, as well as auditing operations pertinent to the performance of public expenditure and
government procurement:
- Ministry of Finance, established in 1920
- Audit Bureau, established in 1952
- General Supplies Department, established in 1972
- Government Tenders Department, established in 1982
- Joint Procurement Department, established in 2004
- Anti-Corruption Commission, established in 2006
- Public and Private Sectors Partnership Unit, established in 2014
Legislative framework:
Government procurement is subject to a number of laws, regulations, and instructions issued
consecutively from the Government such as:
- Audit Bureau Act No. (28) of 1952
- Anti-Corruption Commission Act No. (62) of 2006 and any amendments thereof
- Public and Private Sector Partnership Act No. (31) of 2014
- Government Works Regulation No. (71) of 1986 and any amendments thereof
- Supplies Regulation No. (32) of 1993 and any amendments thereof
- Financial Regulation No. (3) of 1994
1
“Development of Governmental Procurement”, Dr. Hussein Hiyassat, Unpublished paper
- Amended Financial Audit Regulation No. (11) of 2015
- Unified Drugs and Medical Supplies Procurement Regulation No. (91) of 2002 and any
amendments thereof
- Instructions for Unified Regulating Procurement and Medical Supplies Procedures No. (1) of
2012 and any amendments thereof
- Government Tenders Instructions of 1987
- Instructions for supplies procurement by tender No. (1) of 1995
- Instructions for conciliators choice of 1998
- Instructions for contractors and consultant’s pre-qualification of 2001
- Anti-Corruption Commission Act and amendments, No. (62) of 2006
- Instructions for tender procedures organization and participation conditions No. (1) of 2008
- Instructions for construction contractors licensing of 2012
- Instructions for contractors’ classification of 2012
- Instructions for engineering offices Rehabilitation of 2012
- Organizational rules such as the organizational rule to regulate the relationship between
General Supplies Department on one hand and ministries, government departments, and
institutions on the other hand
- Regulations for public institutions and companies adopted by the Government.
Reform of the Government procurement sector in Jordan:
Jordan has conducted a number of studies and took initiatives aimed to promote, develop, and
support the reform of the Government procurement sector in the Kingdom, including:
 Support program for Government procurement system reform
This program was executed with the support of the World Bank in order to:
o promote government procurement systems and regulations
o develop a road map for the functioning of government procurement Website in order to
implement e-procurement
o external audit where the Audit Bureau is chosen as external auditor
 Government Financial Management Information System (GFMIS)
In 2010, the Government Financial Management Information System (GFMIS) was launched as
per the recommendations of the International Monetary Fund and the World Bank. The
recommendations were contained in their joint (March / 2004) issued report on Jordan’s financial
management. The report recommended the implementation of (GFMIS) by the Ministry of
Finance, as it provides rapid access to accurate and comprehensive information when requested
or sought. This system aims to save time, effort, and expenditure while ensuring accuracy,
integrity, and transparency in all work stages. Furthermore, the system works on strengthening
follow-up, auditing, and financial accountability operations as well as timeliness in issuance of
periodic reports, directing public spending, and implementation of the state budget within the
limits of available provisions. In addition, the system provides organization, timing, and
programming of banking operations and execution of financial sustainability by managing cash
more efficiently. The system facilitates as well the preservation and retrieval of information and
financial and accounting data, and provides accurate information to assist decision makers in
drawing policies and future plans.
Procurement constitutes one of the seven tracks (financial and accounting operations, budget and
project management, receivables management, cash management, procurement, payments, and
general ledger) for the first axis of the three axes system (financial and accounting operations
management axis, information technologies management axis, and change management axis).
This track is specialized in following-up and implementing all matters related to different
procurement methods, such as technical works and services procurement, and supplies
procurement (goods and services). This process covers the full track of procurement, starting
from the stage of needs identification (procurement orders) to the receiving stage based on the
special needs of ministries and Government departments.
 Study of Integrity Promotion within the Health Sector
The Anti-Corruption Commission conducted in 2011, and in cooperation with the United
Nations Development Programme, a study concerned with assessing the fairness and
transparency processes and procedures in the purchase of drugs, medical supplies, and devices.
The study was launched in order to discover weaknesses and loopholes facilitating the
occurrence of corruption during procurement within the health sector. The study aimed to
develop a tool to assess the risk of these gaps, thus to develop a plan to address these points and
loopholes.
This study’s conclusions consisted of a set of recommendations on regulations and followed
procedures:
 Regulations:
The study recommended the need to address gaps in each of the following systems, instructions,
and laws:
The Joint Procurement System of 2002, Supplies System of 1993, Temporary Law of Drugs and
Pharmacology No. (80) of 2001, Drugs Examination Instructions of 2006, and Food and Drug
Administration Law of 2008 as a result of a number of weaknesses in regulations. This weakness
could lead to a misunderstanding or a lack of effectiveness, and thus to probable loss of integrity
and transparency.
 Internal Audit Units:
The study recommended strengthening internal audit units with the help of field specialists,
ensuring capacity building for internal audit unit staff including the training of government
officials, health professionals, and facilitating their contact with the Anti-Corruption
Commission. Furthermore, the Commission should identify the most vulnerable places to
corruption and carry on taking preventive action.
 Individuals involved in procurement:
The study recommended conducting research in order to implement the "accountability system"
in an appropriate legal framework, and to consider clear disciplinary / punitive actions for
misconduct amongst public servants. Staff should be accountable for their actions, for instance,
the quality control laboratories in the Food and Drug Administration. These laboratories are
directly responsible for delivering test results. However, the supplier is held accountable for any
delay and is subject to violations. Furthermore, the study recommended the possibility of
considering the inclusion of staff accountability and punishment in accordance with the Civil
Service Article (30) of 2007.
In addition, the study recommended the extension of overtime working hours for a certain
number of hours, establishing an overtime monitor system, providing incentives, health-care
personnel capacity building, and activating the Code of Ethics.
 Anti-Corruption Commission Role:
-The study recommended the Anti-Corruption Commission to rely on experienced health
specialist in the field of health sector procurement. Specialist should work with the Commission
and relevant health authorities to promote integrity and transparency in this important sector.
-The study recommended taking into account the need to address the issue of whistleblowers and
witnesses protection, in order to ensure the protection of health workers who report corruption.
Furthermore, internal channels should be created and procedures clarified in order to report
corruption.
A. Recommendations related to drug procurement:
-Ministry of Health to adopt assessing mechanism for quantities to be procured based on real
needs, with the use of national health accounts statements prior to the procurement. Assessment
may be achievable through "Hakim" initiative to computerize the health sector (VistA). This
initiative works on transforming concepts, health practices, and medical care in Jordan through
enhancing automation of health care quality and effectiveness. The study recommended the
implementation of a health sector computerizing system. Furthermore, the study endorsed
creating a database to help in information provision. The latter is recommended in order to take
the right decision, starting from determining the actual needs for drugs, and reducing wastage of
drugs caused by an inventory shortage or redundant accumulation.
-To adopt a classification and monitoring mechanism for suppliers / bidders performance. Rating
suppliers for efficiency evaluation and monitoring and analyzing suppliers’ performance are
some of the key elements in establishing the success of procurement process.
-Joint Procurement Department to deal with international tenders in order to reduce the market’s
exclusive monopoly of suppliers, which leads to high prices. The Joint Procurement Department
can target international tenders, especially biodrugs tenders, with the help of field specialists. In
addition, department staff should be trained to deal with international tenders. However, this
requires an agreement with the Food and Drug Administration. I have suggested allowing foreign
companies to register the drug with the Food and Drug Administration (without the local agent).
This matter facilitates registering drugs already existing in neighboring countries markets and
subjected to strict registration (Member States in the Pharmaceutical Inspection
Convention and Pharmaceutical Inspection Co-operation Scheme). The registration is especially
important for biodrugs, which are not economically profitable, in order to encourage companies
on local registration.
-Ministry of Health to allocate financial resource from the Treasury, in order to benefit from the
tenders increase by a 30% rate when needed and with no price change.
-To update the list of efficient drugs on a regular basis by the Food and Drug Administration (list
of drugs purchased for different levels of health care, the Joint Procurement Department to
commit to this list).
-Joint Procurement Department not to be held responsible for the payment of suppliers'
reclamations.
-To conduct feasibility study in order to assess the establishment of a funding system, such as the
creation of a drug fund under the health insurance administration, where funding provision is
allowed prior to the procurement process, or at least before the claim of drugs to be procured.
-To reconsider drug pricing policy and review drug pricing basis as health insurance
administration takes into consideration private sector prices for compensation (or pay
commitment). In addition, to review the basis of drugs pricing calculation in the private sector.
-To evaluate and review the need to examine each procured (batch) by the Joint Procurement
Department for the Ministry of Health by the Food and Drug Administration laboratories for
quality control. The study also called for activating the drugs examination system.
-To tighten audit on approved drugs procurement and to commit in submitting reports to internal
audit units.
-To implement a more rigorous audit mechanism on unapproved and procured drugs (based on
patient's name and personal identification number). Payment to be made by the health insurance
administration, with the need to annually renew memberships of the approval committees.
-To require from committee members signing a conflict of interest form before starting the
tenders, in order to prevent any conflict of interest.
B. Recommendations for medical devices procurement:
-The objective of health technologies evaluation (Health Technology Assessment / HTA) is
providing safer health care by relying on scientific evidence, assisting decision-makers to
evaluate the safety of provided health services, and render health care procurement cost more
effective through the procurement of medical devices that have been previously tried and proven
efficacy. Furthermore, coverage decisions procedures to be more open and inclusive in terms of
sharing information, holding public meetings, and publishing decisions and results. In addition,
the High Health Council to take on the task of evaluating health technologies.
-To publish and render allocated devices prices available for all and by all means in order to
achieve transparency.
-To adopt contractors classification.
-To recommend abiding by sending reports to Internal Audit Unit for follow-up. Reports to be
saved for auditing and accountability by Audit.
-To obtain signatures of medical devices procurement committee members on the conflict of
interest form.
C. Recommendations for medical supplies procurement:
-Joint Procurement Department, in accordance with its provisions, to proceed with medical
supplies procurement.
-To adopt a mechanism in order to determine quantity of medical supplies to be procured.
-To adopt the signing of members of medical supplies procurement committees on the conflict of
interest form.
-To adopt an effective evaluation mechanism for the performance of medical supplies providers.
-To adopt information management system.
-To receive and treat the complaints and objections of medical supplies providers transparently.
Complaints and objections to be saved for audit and accountability purposes by Audit.
-To tighten audit on procurement.
-To have representation of civil society organizations in committees involved in the procurement
of medical supplies.
 Sharek (Participate) Initiative:
Sharek is a Jordanian initiative in partnership with the Anti-Corruption Commission and the
Ministry of Health in collaboration with the High Health Council and the National Woman's
health care center, and supported by the United Nations Development Programme. The Initiative
comes as part of the efforts to enhance social accountability for better delivery of public basic
services including health, education, water, etc.
The initiative aims to strengthen citizens’ participation in monitoring the integrity and quality of
health services, and build capacities in voicing needs and revealing corruption in this sector,
through harnessing Information and Communication Technologies (ICT). In addition, it aims to
improve the understanding of stakeholders, including users and public officials involved in the
delivery of and oversight the quality and integrity of health services, of social accountability
concept, mechanisms, and tools of public service performance.
 Study of Variation Orders in Government Tenders
In 2013, a study of variation orders in government tenders was conducted with the participation
of a working group involving representatives from: (Anti-Corruption Commission, Ministry of
Public Works and Housing, Private Sector, Ministry of Municipalities, and the engineering
consulting offices).
The importance of the study comes as a result of conducted investigations by the Commission on
a number of issues related to the increasing cost of some government projects, in comparison
with the original tenders’ value. The increase is a result of variation orders that have occurred
upon execution.
The study aimed at pondering variation orders and the real reasons behind them. In addition, the
study presented recommendations to reduce these variations. In order to achieve the objectives of
the study, the latter used several methods that included a comprehensive review of regulations
controlling variation orders and brainstorming sessions. Furthermore, the study conducted
personal interviews with specialists involved in government tenders, either specialists from
relevant government institutions or private institutions. In addition, the study used the official
available data.
The study has confined the reasons behind variation orders as follows:
 Weak preliminary studies for Government projects, in the field of economic, financial,
social, and environmental feasibilities, etc...
 Doubled estimated cost for projects implementation, especially in the field of value and
cost of acquisition.
 Designs and drawings errors and failing to accurately determine quantities.
The study concluded in findings and recommendations pertinent to:
-Recommendations regarding the regulative and contractual aspect:
A. The need to adjust the system of government works materials through the following:
 Definitions relevant to variation orders to be modified.
 Implementation of Government works and technical services to be centralized through
public tenders while excluding special and justified cases.
 To amend Article (22) pertinent to variation orders in order to reduce the quantity and
total value of variation orders
B. The need to adjust the unified contract for construction projects, and include the
following:
 Define the responsibilities of the employer, consultant, and contractor, in addition to their
negligence.
 Amend the unified contract for construction projects regarding variable orders prices to
be subjected to the approval of the concerned engineer, contractor, and employer before
approval and implementation. Thus, prices are issued with variable orders.
-Recommendations regarding work procedures, notably:
A. To conduct economic, social, and environmental feasibility studies for government projects,
as an essential step before the implementation of any government project. Feasibility studies are
essential in order to discover all economic, social, and financial conditions of the project.
B. To identify project goals, intentions, location, scope, and beneficiaries.
C. To refrain from amending the project goals and intentions without real justification in case of
replacing people in charge.
D. To determine accurate cost of project acquisition.
Given the importance of the study, his Excellency the Prime Minister requested from the
Ministry of Public Works and Housing, the Ministry of Justice, and the Greater Amman
Municipality to implement it as a result of its important role in blocking the Government’s
financial resources waste. His Excellency the Minister of Public Works and Housing instructed
the Director General of Government Tenders Department to abide by and implement the study
recommendations, and to instruct the Secretary of the National Building Council to prepare a
draft legislation in order to amend the provisions of the National Building Code Council in line
with this study.
 Anti-Corruption Commission Act
The Anti-Corruption Commission law was considered conflict of interest as a corruption crime
in paragraph (5 / F), which stipulates the following:
Article 5: It is considered as corruption what follows:
F. Failure to declare or disclose investments, property, or benefits may lead to a conflict of
interest if the laws and regulations require so, and that would achieve personal benefit directly or
indirectly for whoever abstained on declaring.
On the basis of paragraph (22 / c):
1. Every contract or agreement or benefit or privilege obtained as a result of an act that would be
considered corrupt is considered voidable or annulled according to a decision of the competent
court.
2. The Commission during its investigation procedures shall request, as an expedited measure of
the competent court, the suspension of any contract or agreement or benefit or privilege if it
shows of apparent evidence that it has been obtained as a result of an act of corruption, until the
case is decided upon.
 Public Procurement Network specialists:
In 2013, Jordan joined a network of public procurement specialists formed by the governments
of nine countries in the region: (Jordan, Morocco, Tunisia, Lebanon, Yemen, Djibouti, Egypt,
Palestine, and Libya) and supported by the World Bank. The network aims to work on capacity
building and professionalization of workers in the field of procurement. Furthermore, the
network tackles updating procurement tools and increasing access for small and medium
enterprises to government contracts markets.
Challenges:
Several challenges facing the Jordanian procurement sector are summarized as follows:
1. Multiplicity of legislative frameworks governing public procurement, rendering audit
effectiveness a hassle.
2. Relative delay in presenting and referral tenders procedures
3. Absence of benchmarks in the current government procurement system regarding procurement
procedures objection and decision making
4. Weakness in draft preliminary needs studies in the fields of procurement, tenders, procedures,
audit, and accountability.
5. Weakness in procurement and audit procedures progress
6. Poor response to the demand side (Citizen)
7. Weakness in accountability for error and oversight
8. Lack of clear criteria in selecting tenders and procurement members of committee as well as
absence of codes of conduct with members and presence of conflict of interest.
9. Limited specialized training programs for staff in charge of tenders and procurement. The
programs should deal primarily with the sensitivity of tenders and procurement processes, the
importance of taking into account the requirements of transparency, and the prevention of
corruption.
10. Weakness in community audit over the implementation of tenders and procurement.

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  • 1. Anti-Corruption Commission SIGMA Regional Conference on Public Procurement Head of Anti-Corruption Commission Prof. Dr. Abdul Kharabsheh Beirut, Lebanon 2-3 June 2015
  • 2. Introduction: The Hashemite Kingdom of Jordan took special notice of public expenditure audit, including running or capital expenses. The latter comprised as well Government procurement. Light was shed on this issue as it brings positive effects if mastered professionally, and negative effects if misused. Consequently, an Audit Bureau was established under the Jordanian Constitution in 1952. The Bureau carried out the financial, administrative, and technical audit in various official and semi-official governmental divisions. Consequently, Jordan started to adopt legislation, regulations, and instructions providing best practices on spending and strengthening integrity and transparency values. A Jordanian study showed that government procurement accounts for approximately 40% of state budget, and is spent in procurement of goods, services, and major construction projects such as schools and hospitals1 . Institutional framework: The following entities form an institutional framework supervising or governing receiving operations, as well as auditing operations pertinent to the performance of public expenditure and government procurement: - Ministry of Finance, established in 1920 - Audit Bureau, established in 1952 - General Supplies Department, established in 1972 - Government Tenders Department, established in 1982 - Joint Procurement Department, established in 2004 - Anti-Corruption Commission, established in 2006 - Public and Private Sectors Partnership Unit, established in 2014 Legislative framework: Government procurement is subject to a number of laws, regulations, and instructions issued consecutively from the Government such as: - Audit Bureau Act No. (28) of 1952 - Anti-Corruption Commission Act No. (62) of 2006 and any amendments thereof - Public and Private Sector Partnership Act No. (31) of 2014 - Government Works Regulation No. (71) of 1986 and any amendments thereof - Supplies Regulation No. (32) of 1993 and any amendments thereof - Financial Regulation No. (3) of 1994 1 “Development of Governmental Procurement”, Dr. Hussein Hiyassat, Unpublished paper
  • 3. - Amended Financial Audit Regulation No. (11) of 2015 - Unified Drugs and Medical Supplies Procurement Regulation No. (91) of 2002 and any amendments thereof - Instructions for Unified Regulating Procurement and Medical Supplies Procedures No. (1) of 2012 and any amendments thereof - Government Tenders Instructions of 1987 - Instructions for supplies procurement by tender No. (1) of 1995 - Instructions for conciliators choice of 1998 - Instructions for contractors and consultant’s pre-qualification of 2001 - Anti-Corruption Commission Act and amendments, No. (62) of 2006 - Instructions for tender procedures organization and participation conditions No. (1) of 2008 - Instructions for construction contractors licensing of 2012 - Instructions for contractors’ classification of 2012 - Instructions for engineering offices Rehabilitation of 2012 - Organizational rules such as the organizational rule to regulate the relationship between General Supplies Department on one hand and ministries, government departments, and institutions on the other hand - Regulations for public institutions and companies adopted by the Government. Reform of the Government procurement sector in Jordan: Jordan has conducted a number of studies and took initiatives aimed to promote, develop, and support the reform of the Government procurement sector in the Kingdom, including:  Support program for Government procurement system reform This program was executed with the support of the World Bank in order to: o promote government procurement systems and regulations o develop a road map for the functioning of government procurement Website in order to implement e-procurement o external audit where the Audit Bureau is chosen as external auditor
  • 4.  Government Financial Management Information System (GFMIS) In 2010, the Government Financial Management Information System (GFMIS) was launched as per the recommendations of the International Monetary Fund and the World Bank. The recommendations were contained in their joint (March / 2004) issued report on Jordan’s financial management. The report recommended the implementation of (GFMIS) by the Ministry of Finance, as it provides rapid access to accurate and comprehensive information when requested or sought. This system aims to save time, effort, and expenditure while ensuring accuracy, integrity, and transparency in all work stages. Furthermore, the system works on strengthening follow-up, auditing, and financial accountability operations as well as timeliness in issuance of periodic reports, directing public spending, and implementation of the state budget within the limits of available provisions. In addition, the system provides organization, timing, and programming of banking operations and execution of financial sustainability by managing cash more efficiently. The system facilitates as well the preservation and retrieval of information and financial and accounting data, and provides accurate information to assist decision makers in drawing policies and future plans. Procurement constitutes one of the seven tracks (financial and accounting operations, budget and project management, receivables management, cash management, procurement, payments, and general ledger) for the first axis of the three axes system (financial and accounting operations management axis, information technologies management axis, and change management axis). This track is specialized in following-up and implementing all matters related to different procurement methods, such as technical works and services procurement, and supplies procurement (goods and services). This process covers the full track of procurement, starting from the stage of needs identification (procurement orders) to the receiving stage based on the special needs of ministries and Government departments.  Study of Integrity Promotion within the Health Sector The Anti-Corruption Commission conducted in 2011, and in cooperation with the United Nations Development Programme, a study concerned with assessing the fairness and transparency processes and procedures in the purchase of drugs, medical supplies, and devices. The study was launched in order to discover weaknesses and loopholes facilitating the occurrence of corruption during procurement within the health sector. The study aimed to develop a tool to assess the risk of these gaps, thus to develop a plan to address these points and loopholes. This study’s conclusions consisted of a set of recommendations on regulations and followed procedures:
  • 5.  Regulations: The study recommended the need to address gaps in each of the following systems, instructions, and laws: The Joint Procurement System of 2002, Supplies System of 1993, Temporary Law of Drugs and Pharmacology No. (80) of 2001, Drugs Examination Instructions of 2006, and Food and Drug Administration Law of 2008 as a result of a number of weaknesses in regulations. This weakness could lead to a misunderstanding or a lack of effectiveness, and thus to probable loss of integrity and transparency.  Internal Audit Units: The study recommended strengthening internal audit units with the help of field specialists, ensuring capacity building for internal audit unit staff including the training of government officials, health professionals, and facilitating their contact with the Anti-Corruption Commission. Furthermore, the Commission should identify the most vulnerable places to corruption and carry on taking preventive action.  Individuals involved in procurement: The study recommended conducting research in order to implement the "accountability system" in an appropriate legal framework, and to consider clear disciplinary / punitive actions for misconduct amongst public servants. Staff should be accountable for their actions, for instance, the quality control laboratories in the Food and Drug Administration. These laboratories are directly responsible for delivering test results. However, the supplier is held accountable for any delay and is subject to violations. Furthermore, the study recommended the possibility of considering the inclusion of staff accountability and punishment in accordance with the Civil Service Article (30) of 2007. In addition, the study recommended the extension of overtime working hours for a certain number of hours, establishing an overtime monitor system, providing incentives, health-care personnel capacity building, and activating the Code of Ethics.  Anti-Corruption Commission Role: -The study recommended the Anti-Corruption Commission to rely on experienced health specialist in the field of health sector procurement. Specialist should work with the Commission and relevant health authorities to promote integrity and transparency in this important sector. -The study recommended taking into account the need to address the issue of whistleblowers and witnesses protection, in order to ensure the protection of health workers who report corruption. Furthermore, internal channels should be created and procedures clarified in order to report corruption.
  • 6. A. Recommendations related to drug procurement: -Ministry of Health to adopt assessing mechanism for quantities to be procured based on real needs, with the use of national health accounts statements prior to the procurement. Assessment may be achievable through "Hakim" initiative to computerize the health sector (VistA). This initiative works on transforming concepts, health practices, and medical care in Jordan through enhancing automation of health care quality and effectiveness. The study recommended the implementation of a health sector computerizing system. Furthermore, the study endorsed creating a database to help in information provision. The latter is recommended in order to take the right decision, starting from determining the actual needs for drugs, and reducing wastage of drugs caused by an inventory shortage or redundant accumulation. -To adopt a classification and monitoring mechanism for suppliers / bidders performance. Rating suppliers for efficiency evaluation and monitoring and analyzing suppliers’ performance are some of the key elements in establishing the success of procurement process. -Joint Procurement Department to deal with international tenders in order to reduce the market’s exclusive monopoly of suppliers, which leads to high prices. The Joint Procurement Department can target international tenders, especially biodrugs tenders, with the help of field specialists. In addition, department staff should be trained to deal with international tenders. However, this requires an agreement with the Food and Drug Administration. I have suggested allowing foreign companies to register the drug with the Food and Drug Administration (without the local agent). This matter facilitates registering drugs already existing in neighboring countries markets and subjected to strict registration (Member States in the Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme). The registration is especially important for biodrugs, which are not economically profitable, in order to encourage companies on local registration. -Ministry of Health to allocate financial resource from the Treasury, in order to benefit from the tenders increase by a 30% rate when needed and with no price change. -To update the list of efficient drugs on a regular basis by the Food and Drug Administration (list of drugs purchased for different levels of health care, the Joint Procurement Department to commit to this list). -Joint Procurement Department not to be held responsible for the payment of suppliers' reclamations. -To conduct feasibility study in order to assess the establishment of a funding system, such as the creation of a drug fund under the health insurance administration, where funding provision is allowed prior to the procurement process, or at least before the claim of drugs to be procured. -To reconsider drug pricing policy and review drug pricing basis as health insurance administration takes into consideration private sector prices for compensation (or pay commitment). In addition, to review the basis of drugs pricing calculation in the private sector.
  • 7. -To evaluate and review the need to examine each procured (batch) by the Joint Procurement Department for the Ministry of Health by the Food and Drug Administration laboratories for quality control. The study also called for activating the drugs examination system. -To tighten audit on approved drugs procurement and to commit in submitting reports to internal audit units. -To implement a more rigorous audit mechanism on unapproved and procured drugs (based on patient's name and personal identification number). Payment to be made by the health insurance administration, with the need to annually renew memberships of the approval committees. -To require from committee members signing a conflict of interest form before starting the tenders, in order to prevent any conflict of interest.
  • 8. B. Recommendations for medical devices procurement: -The objective of health technologies evaluation (Health Technology Assessment / HTA) is providing safer health care by relying on scientific evidence, assisting decision-makers to evaluate the safety of provided health services, and render health care procurement cost more effective through the procurement of medical devices that have been previously tried and proven efficacy. Furthermore, coverage decisions procedures to be more open and inclusive in terms of sharing information, holding public meetings, and publishing decisions and results. In addition, the High Health Council to take on the task of evaluating health technologies. -To publish and render allocated devices prices available for all and by all means in order to achieve transparency. -To adopt contractors classification. -To recommend abiding by sending reports to Internal Audit Unit for follow-up. Reports to be saved for auditing and accountability by Audit. -To obtain signatures of medical devices procurement committee members on the conflict of interest form. C. Recommendations for medical supplies procurement: -Joint Procurement Department, in accordance with its provisions, to proceed with medical supplies procurement. -To adopt a mechanism in order to determine quantity of medical supplies to be procured. -To adopt the signing of members of medical supplies procurement committees on the conflict of interest form. -To adopt an effective evaluation mechanism for the performance of medical supplies providers. -To adopt information management system. -To receive and treat the complaints and objections of medical supplies providers transparently. Complaints and objections to be saved for audit and accountability purposes by Audit. -To tighten audit on procurement. -To have representation of civil society organizations in committees involved in the procurement of medical supplies.
  • 9.  Sharek (Participate) Initiative: Sharek is a Jordanian initiative in partnership with the Anti-Corruption Commission and the Ministry of Health in collaboration with the High Health Council and the National Woman's health care center, and supported by the United Nations Development Programme. The Initiative comes as part of the efforts to enhance social accountability for better delivery of public basic services including health, education, water, etc. The initiative aims to strengthen citizens’ participation in monitoring the integrity and quality of health services, and build capacities in voicing needs and revealing corruption in this sector, through harnessing Information and Communication Technologies (ICT). In addition, it aims to improve the understanding of stakeholders, including users and public officials involved in the delivery of and oversight the quality and integrity of health services, of social accountability concept, mechanisms, and tools of public service performance.  Study of Variation Orders in Government Tenders In 2013, a study of variation orders in government tenders was conducted with the participation of a working group involving representatives from: (Anti-Corruption Commission, Ministry of Public Works and Housing, Private Sector, Ministry of Municipalities, and the engineering consulting offices). The importance of the study comes as a result of conducted investigations by the Commission on a number of issues related to the increasing cost of some government projects, in comparison with the original tenders’ value. The increase is a result of variation orders that have occurred upon execution. The study aimed at pondering variation orders and the real reasons behind them. In addition, the study presented recommendations to reduce these variations. In order to achieve the objectives of the study, the latter used several methods that included a comprehensive review of regulations controlling variation orders and brainstorming sessions. Furthermore, the study conducted personal interviews with specialists involved in government tenders, either specialists from relevant government institutions or private institutions. In addition, the study used the official available data. The study has confined the reasons behind variation orders as follows:  Weak preliminary studies for Government projects, in the field of economic, financial, social, and environmental feasibilities, etc...  Doubled estimated cost for projects implementation, especially in the field of value and cost of acquisition.  Designs and drawings errors and failing to accurately determine quantities.
  • 10. The study concluded in findings and recommendations pertinent to: -Recommendations regarding the regulative and contractual aspect: A. The need to adjust the system of government works materials through the following:  Definitions relevant to variation orders to be modified.  Implementation of Government works and technical services to be centralized through public tenders while excluding special and justified cases.  To amend Article (22) pertinent to variation orders in order to reduce the quantity and total value of variation orders B. The need to adjust the unified contract for construction projects, and include the following:  Define the responsibilities of the employer, consultant, and contractor, in addition to their negligence.  Amend the unified contract for construction projects regarding variable orders prices to be subjected to the approval of the concerned engineer, contractor, and employer before approval and implementation. Thus, prices are issued with variable orders. -Recommendations regarding work procedures, notably: A. To conduct economic, social, and environmental feasibility studies for government projects, as an essential step before the implementation of any government project. Feasibility studies are essential in order to discover all economic, social, and financial conditions of the project. B. To identify project goals, intentions, location, scope, and beneficiaries. C. To refrain from amending the project goals and intentions without real justification in case of replacing people in charge. D. To determine accurate cost of project acquisition. Given the importance of the study, his Excellency the Prime Minister requested from the Ministry of Public Works and Housing, the Ministry of Justice, and the Greater Amman Municipality to implement it as a result of its important role in blocking the Government’s financial resources waste. His Excellency the Minister of Public Works and Housing instructed the Director General of Government Tenders Department to abide by and implement the study recommendations, and to instruct the Secretary of the National Building Council to prepare a draft legislation in order to amend the provisions of the National Building Code Council in line with this study.  Anti-Corruption Commission Act The Anti-Corruption Commission law was considered conflict of interest as a corruption crime in paragraph (5 / F), which stipulates the following:
  • 11. Article 5: It is considered as corruption what follows: F. Failure to declare or disclose investments, property, or benefits may lead to a conflict of interest if the laws and regulations require so, and that would achieve personal benefit directly or indirectly for whoever abstained on declaring. On the basis of paragraph (22 / c): 1. Every contract or agreement or benefit or privilege obtained as a result of an act that would be considered corrupt is considered voidable or annulled according to a decision of the competent court. 2. The Commission during its investigation procedures shall request, as an expedited measure of the competent court, the suspension of any contract or agreement or benefit or privilege if it shows of apparent evidence that it has been obtained as a result of an act of corruption, until the case is decided upon.  Public Procurement Network specialists: In 2013, Jordan joined a network of public procurement specialists formed by the governments of nine countries in the region: (Jordan, Morocco, Tunisia, Lebanon, Yemen, Djibouti, Egypt, Palestine, and Libya) and supported by the World Bank. The network aims to work on capacity building and professionalization of workers in the field of procurement. Furthermore, the network tackles updating procurement tools and increasing access for small and medium enterprises to government contracts markets. Challenges: Several challenges facing the Jordanian procurement sector are summarized as follows: 1. Multiplicity of legislative frameworks governing public procurement, rendering audit effectiveness a hassle. 2. Relative delay in presenting and referral tenders procedures 3. Absence of benchmarks in the current government procurement system regarding procurement procedures objection and decision making 4. Weakness in draft preliminary needs studies in the fields of procurement, tenders, procedures, audit, and accountability. 5. Weakness in procurement and audit procedures progress 6. Poor response to the demand side (Citizen) 7. Weakness in accountability for error and oversight 8. Lack of clear criteria in selecting tenders and procurement members of committee as well as absence of codes of conduct with members and presence of conflict of interest.
  • 12. 9. Limited specialized training programs for staff in charge of tenders and procurement. The programs should deal primarily with the sensitivity of tenders and procurement processes, the importance of taking into account the requirements of transparency, and the prevention of corruption. 10. Weakness in community audit over the implementation of tenders and procurement.