PART VIII:
Supervision, Sanctions and Dispute Resolution
 

Article 32: Supervision

     In the case of important and high value procurement (ICB and Public Bidding) financed by the national budget, the Ministry of Finance, Procurement Monitoring Office will monitor each stage starting from the preparation of tender documents until the completion of the contract including any specified warranty /maintenance period.

     • The procuring entity or project owner shall submit an Annual Procurement Plan to Ministry of Finance, Procurement Monitoring Office for information.

     • Prior to starting a tendering procedure the Tender Committee may seek the advice and guidance of the Director of the Procurement Monitoring Office on the correct application of the procurement procedures.

     • The procuring entity for all contracts which amount to more than Kip 300 million or if requested shall submit one copy of the contract to Ministry of Finance, Procurement Monitoring Office.

     • In cases where the contractors, suppliers or consultants cause a serious breach of conditions of their contracts, the procuring entity or project owners shall report to Ministry of Finance, Procurement Monitoring Office in writing, who shall recommend what action shall be taken.

     • As a reference in setting current expenditures and as a basic price comparison for market prices, the Ministry of Finance, Procurement Monitoring Office in coordination with the Ministry of Trade and other line ministries shall prepare a reference price list of market prices, giving a range of prices, for generally most used items by government entities every 6 (six) months. Such reference price list shall be used as a guide to check the market prices, unit costs and technical standards applied when procuring by price comparison method.
 

Article 33: Complaints

     • In the case of any incorrect application by the procuring entity or project owner related to a procurement procedure comes to the knowledge of bidders, written complaints against such act shall be filed with proper evidence with the Chairman of the Tender Committee.

     • Bidders may refer to the Ministry of Finance, Procurement Monitoring Office in case such misconduct has not received proper resolution within 14 days from the date of receipt of the complaint by the Chairman of the Tender Committee.

     • The Tender Committee shall consider the complaint and, if necessary, suspend approval of the award decision. The Chairman of the Tender Committee shall notify all bidders of the decision to suspend the approval of bid award.

    • The parties, procuring entity, Ministry of Finance, Procurement Monitoring Office shall seek to resolve the complaint in conjunction with the complainant as described by Decree 03/PM dated 9 January 2004 and the Implementing Rules and Regulations. The Tender Committee shall consider the complaint and give an answer in writing within 14 working days relating to the grounds of its decision. Where the complainant agrees to such grounds in full or in part, a proper method of resolution shall be agreed. If, within the prescribed period of time, no answer is given, the bidders may refer to the Ministry of Finance, Procurement Monitoring Office for consideration and decision making within the next 14 working days.

     • In principle, if there is a complaint, the contract award should be withheld. However, the Chairman of the Tender Committee may justify the continuation of the procurement procedure by reason of urgent necessity. Such justification must be sufficiently supported and notified to the complainant within 7 working days prior to the date such justification becomes binding. If the procuring entity fails to comply with this Article, the award decision shall be rescinded and considered as null and void.

     • Complaint after contract award: In case of a complaint after a contract has been awarded the complaint will be considered by the Tender Committee and a report submitted to the State Inspection Authority in the Prime Minister's Office and the Ministry of Finance, Procurement Monitoring Office.
 

Article 34: Disputes

     • In the case a complaint is made relating to the award of the contract, and if the decision and act of the Tender Committee are inconsistent with the principles of Decree 03/PM dated 9 January 2004 and these Implementing Rules and Regulations, the Ministry of Finance may:

     • Give notice to the court for legal proceedings.

     • Rescind in full or in part the decision and acts of the procuring entity or project owner that are inconsistent with the provisions of Decree 03/PM dated 9 January 2004 and these Implementing Rules and Regulations.

    • Recommend the procuring entity or project owner to make good any inconsistency and carry out the procurement procedure in accordance with the regulations.

     • Based on the procurement procedure and before the contract is signed, the Ministry of Finance, Procurement Monitoring Office may request the procuring entity or project owner to postpone the award of contract and re-evaluate the bids, when:

• Such suspension shall not cause any damage to the public interest, to the procuring entity or to other bidders.

• There is evidence that bid evaluation is not in accordance with the provisions of Decree 03/PM and these Implementing Rules and Regulations.

• The government stands to sustain a loss if the procedure is not corrected.
   

Article 35: Complaint for Court Proceedings

      In the case it is not possible to resolve the complaint in accordance with paragraph 4 Article 33, the relevant bidder may, first, seek resolution through further mediation or conciliation with the Ministry of Finance, Procurement Monitoring Office. Subsequently, if the issue is not resolved, the bidder may file a complaint with the court.
 

Article 36: Sanctions

     • Tender Committee, any individual, legal entity or organization breaching or acting inconsistently with the provisions of Decree 03/PM dated 9 January 2004 and these Implementing Rules and Regulations will be subject to warnings, administrative and disciplinary measures provided under the civil service rules and as provided by law depending on the seriousness of such acts.

     • Any breach of the provisions of Decree 03/PM dated 9 January 2004 and these Implementing Rules and Regulations which constitutes a criminal offense, such as falsification of documents, abuse of authority, negligence in the performance of duties will entail criminal proceedings.

     • In case of firms or individuals colluding in the design and costing of works or in manipulation of the award of contracts for joint or personal interest, court proceedings and punishments will be carried out as provided by law.

     • Contracts for the procurement of goods, works and services that are entered into not in full compliance with the bidding procedures described under Part II of these Implementing Rules and Regulations, and contracts entered on the basis of bidding procedures lacking transparency, are considered as null and void.

     • Any bidder offering or promising material or other rewards either directly or indirectly to the Tender Committee or an individual involved in procurement decision making for the purpose of obtaining a contract through non-transparent bidding and improper bidding procedures may be disqualified by the procuring entity or project owner and court proceedings may be instituted.