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May 16, 2021

NPC Board to Strictly Enforce National Content Legislation

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The National Procurement Commission (NPC) Board will strictly enforce National Content Legislation which is one of the key ingredients for creating wealth and growing the nation’s economy, Chairman Mr. Kenneth Thomson said.

Mr. Thomson said this when awarding a contract of K9, 668,664 to Tumla Investment Limited on behalf of the NPC Board in Port Moresby today for the construction of new Telefomin District Development Authority Office Complex in Telefomin District, West Sepik.

He said one of the provisions in the National Procurement Act 2018 (NPA) and the Public Procurement Reform undertaken by the Government was Section 48 of the NPA which restricts award of contracts valued less than K10 million to only national companies.

“Under Section 48, all contracts valued up to K10 million is only restricted to national companies and citizens with capacity to undertake or provide the goods, works or services.” Mr. Thomson said.

He said the new board under his leadership since taking office have proactively ensured compliance to this provision by already rescinding and revoking previous Board Decisions awarding contracts to foreign owned companies.

“We have already rescinded some earlier decisions which goes against the National Procurement Act.

“That message has to be clear to all contractors and stakeholders that NPC board will be very strict in enforcing all sections of the Act (NPA) including Section 48 National Reservations and Restriction.” Mr. Thomson said.

“Papua New Guinea already has appropriate laws to ensure wealth is retained in the country; civil servants are plainly ignorant in enforcing them. One such law is the National Procurement Act; we just need to enforce these laws. My Board is serious and we will see the enforcement of all NPC Act provisions.” Said Mr. Thomson.

The Prime Minister Honorable James Marape governments “Taking Back PNG and making it a richest black Nation” is possible; it is not just a political rhetoric. If all government departments and statutory agencies were to embrace the policy and enforce laws that already protect our nation’s interests in whatever sector, then we can truly build our nation to see our Prime Ministers vision realized.”

“At the National Procurement Commission, our Board is doing its bit by strictly enforcing the rights of national companies and citizens to get contracts below K10 Million threshold as guaranteed under the procurement laws.”  

He said having such laws now gives legal effect towards supporting the growth of Small to Medium Enterprises (SMEs) which is the way forward towards growing the economy and creating wealth for the nation.

He said contracts valued above K10 million and less than K30 million will have to be awarded to companies that have 50 per cent national ownership.

“Contract above K30 million has no restriction and is open to market for any companies regardless of national or foreign ownership to bid and undertake.”

Mr. Thomson further reiterated that the recently established District and Provincial Procurement Committees who have a threshold limit which is below the National Restriction of K10 million to award contracts to only national companies. He said priority should be given to companies based in the provinces.

“We also encourage districts and provinces to award contracts to competent national companies that are based in the districts and provinces to also retain wealth in our rural areas.”

“Service delivery and wealth creation should go together and that is what we at NPC and the Marape/Basil Government wants to see,” Mr. Thomson said.

Minister for Defense and Telefomin MP Hon Solan Mirisim who was there to witness the signing of the Contract thanked the Chairman, Board and management of NPC and commended them for their effort to improve Government procurement system.

“The National Procurement Commission since replacing CSTB (Central Supply and Tenders Board) has done well in terms of improving our public procurement system and I commend the vibrant leadership at NPC by Chairman Thomson, CEO and the NPC staff,” Hon Mirisim said.

Managing director for Tumla Investment Limited Mr Irad Nati also thanked the Government through NPC for recognizing the importance of supporting nationally owned companies and local SMEs.

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