Question Tag: Act 914

A newly appointed Chief Executive Officer (CEO) of a large Government Teaching Hospital has just resumed work. The Hospital is financed by 40% Internally Generated Funds and 60% subventions. At his first meeting with the Management Committee of the Hospital, the CEO briefed the Committee about his policies and strategies to improve efficiency in the Hospital’s operations. He identified the use of the Public Procurement Procedures as the major obstacle of the Hospital in achieving its objectives. He therefore suggested the use of established commercial procurement practices because a consultant advised him that it is very possible and permissible under the Public Procurement Act 2016 (Amendment) Act 914. He added that the head of an entity has the responsibility to decide whether to use public procurement rules or otherwise.

Required:
i) Explain to the Chief Executive Officer, the conditions under which the Public Procurement Act 2016 (Amendment) Act 914 permits the use of established commercial practices.
(3 marks)

ii) Describe the approval procedure involved prior to the use of established commercial practices of procurement.
(2 marks)

iii) In your opinion, would the Hospital meet the conditions for using the established commercial practices of procurement? Explain.
(2 marks)

iv) Explain THREE (3) functions of the Head of Procurement Entity under the Public Procurement Act 2016 (Amendment) Act 914.
(3 marks)