This article is an excerpt from The Art of Tendering: A Global Due Diligence Guide, which is available for purchase.
In its December 2018 report entitled Special Report of Investigation Conduced into Alleged Acts of Irregularity and Impropriety Surrounding the Submission of ‘Forged’ National Contracts Commission (NCC) Registration Letter by Orchard Solutions Limited, Jamaica’s Integrity Commission – Office of the Contractor General (OCG) recommended the debarment of a contractor that submitted a forged certification in response to a Request for Quotations (RFQ) issued by Petrojam Limited, a state-owned company, for the provision of street and flood lamps fixtures. The RFQ required that that bidders be registered with Jamaica’s National Contracts Commission. The bidder in question was found to have forged its registration documents. The OCG noted that the submission of the forged documents was a criminal offence:
The submission of the forged NCC Registration letter is a criminal offence “…punishable with imprisonment with hard labour for any term not exceeding seven years” pursuant to Section 5 of the Forgery Act.
In addition to any applicable criminal sanctions, the OCG recommended that the contractor be barred from future contracting opportunities with the government, and more generally, that contractors be reminded of the serious sanctions that can attach to inappropriate bidding conduct. The OCG also recommended that public institutions adopt procedures to verify the registrations of bidders prior to making contract awards:
In keeping with Section 1.3.2 of the Government of Jamaica Handbook of Public Sector Procurement Procedures, the OCG recommends that Orchards Solutions Limited be suspended or barred from participation in future Government of Jamaica procurement opportunities, pursuant to the consideration of the NCC. Further, the OCG wishes to remind contractors of Section 1.3.2 , Volume 2 of the Government of Jamaica Handbook of Public Sector Procurement Procedures, which provides information pertaining to following:
“DEBARMENT, SUSPENSION AND INELIGIBILITY
A contractor may be disqualified and/or stricken from the NCC Register of Public Sector Contractors without liability to GoJ, if it is found at any time, that the information submitted concerning his/her qualifications was deliberately falsified. Procuring Entities should, therefore, report any such findings to the NCC promptly, along with any evidence substantiating the falsification. Contractors may also be disqualified, suspended, or stricken from the NCC Register without liability to GoJ, for reasons of poor performance.”
The OCG recommends that all public bodies develop the practice of verifying the NCC registration of all prospective contractors. The OCG considers this recommendation to be absolutely important as there is no latitude for Contractors who provide false information or misrepresent information in the public procurement process.
As this case study illustrates, purchasing institutions need to enact effective deterrents through the creation and enforcement of debarment regimes to dissuade contractors from engaging in improper bidding practices. Those debarment regimes should include transparent procedures for barring bidders that engage in criminal activities or other inappropriate conduct relating to government tendering and contracting.
