Implementation of directive to use local products in govt offices hits snag

KATHMANDU, Sept 17:

The government is mulling over amending the existing directive aimed at promoting domestic products in government office as implementation of the directive is becoming difficult due to legal complications.

Officials have started to review the directive, which was issued in February, saying that it contradicts with the Public Procurement Act. They have also cited lack of proper quality standardization of Nepali products as the major reason behind non-implementation of the directive.

“We have yet to receive information about government offices purchasing local products after the directive was issued. Instead, we have been receiving complaints against the directive,” Bishnu Prasad Dhakal, under secretary at Ministry of Industry, told Republica.

After the cabinet endorsed it, the ministry had dispatched the directive to all line ministries, asking them to forward it to offices under them.
Dhakal said some government offices have said they cannot purchase local products as the directive contradicts with the Public Procurement Act. “Officials fear they will violate the act if they followed the directive,” he added.

In the ´Directives for the Use of Domestic Products in Public Offices 2013´ which was endorsed by the cabinet in February, the government had relaxed some clauses in the act, allowing offices to pay up to 10 percent more than the lowest bidder for Nepali products.

Dhakal is also the joint coordinator of the committee that the MoI recently formed to review the directives. The committee has started discussion with the officials of line ministries and private sector representatives to sort out the problems.

But the discussion is unlikely to make any headway as there is no parliament to make amendment to the Public Procurement Act that contradicts with the directive.
“We will recommend some amendments to the act. We will also incorporate some suggestions in the directive, like having quality standardization of Nepali products and a provision for monitoring the implementation of the directive,” added Dhakal.

Officials say none of the government offices followed the directive while preparing the roster of suppliers for this fiscal year.Dinesh Shrestha, a representative of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in the committee, say government offices are not prioritizing Nepali products because the government hasn´t made the directive mandatory for the government offices. “The government hasn´t prescribed any punishment for offices that flout the directive,” he added.

Saying that small and cottage industries can not pay fee for quality standardization, Shrestha said products of such industries should be used even if they don´t have quality certification.

Meanwhile, Chief Secretary Leela Mani Paudyal said he would adopt necessary measures to make sure that the directive is implemented.

Source: Republica