State Organs Urged to Adopt Govn't Purchasing System

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Last updated at: (Beijing Time) Monday, December 30, 2002

State Organs Urged to Adopt Govn't Purchasing System

The State Council has released a notice urging central government departments to promote the government purchasing system. The notice says the purchasing system is of great significance in strengthening the management of fiscal expenditures and preventing corruption.

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A notice issued recently from the office of the State Council, saying that the government procurement system is going to be fully carried out in the central state organs.

The notice points out, to carry out fully the government procurement system in the central state organs is extremely important in significance for strengthening the management and control of financial expenditure, enhancing the utility of financial capital and nipping the corruption in the bud from the very sources.

Dispatched together with the notice is the "Program for Implementation of Carrying out Fully the Government Procurement System in Central State Organs". It has made clear the principles for the execution of the government procurement system in central state organs.

First there must be a reasonable division of work and mutual restriction, namely, a separation of work between the sector for procurement control and that in charge of mass-purchase, and a separation of mass-purchase with those for buying in item by item.

Secondly, attention must be paid both to effectiveness and efficiency, a reasonable decision being made for the scale of procurement and decentralized purchases. The procurement conducted by the sector should see to it that the prices must be lower than the average market prices with higher efficiency and the goods are of better quality and services as required.

Thirdly, There must have an open, fair, just and strict working procedure to regulate the behavior in procurement so as to build up a healthy controlling system.

Fourthly, the step by step implementation is from the easy to the difficult and to be pushed ahead steadily in a way of gradual expansion in scale for procurement.

As regulated in the implementation program, a way of unified management and control is to be adopted in the work for government procurement in central state organs, which is to be carried out according to different categories. The Ministry of Finance is the supervisory and controlling department in implementation of the government procurement for the central state organs. For the purpose, it is going to set up a center for government procurement in central state organs. Managed by the Office Affair Administration under the State Council, it is to organize in a unified way the procured items listed in the category of government procurement for central state organs.

The items beyond the category for the procurement in central state organs may be purchased of their own accord by various departments and sectors in line with the relevant law and regulations. They may be bought either in a centralized and decentralized way. The centralized purchases by departments may be organized by departments themselves or to be entrusted to the central procurement center for purchases or purchased through agencies in society by way of bidding invitation.

As regulated in the implementation program the government procurement should be done in a way of open bidding or bidding invitation, competitive talks and inquiries for prices, single source procurement or other ways of purchases as decided by the Ministry of Finance.

As required by the implementation program, the government procurement for the central state organs is going to be carried out step by step, from the easy to the difficult in a principle of doing it proactively and steadily to achieve a gradual expansion in scale for procurement.

By People's Daily Online

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