Who buys and controls the CCTV?
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According to Directive No. 1/2017, tender procedures are to be followed
by the government departments and organisations in construction,
purchase, procurement of services, lease, and sale. Article 10(a) states that
a value of less than MMK 10 million (USD 5,400) does not require calling
for a tender; however, the Tender Committee must request fee proposals
from at least three trustworthy companies. Article 10(b) states for projects
valued from MMK 10 million to MMK 100 million (USD 5,400–54,000), the
tender announcement has to be published two weeks before the tender
opening date on the notice boards of the relevant ministry, general
administration department, and the district and township administration
office. Article 10(c) states for projects over MMK 100 million (USD 54,000)
the tender has to be announced at least twice in state-owned newspapers
one month before the tender opening date, on relevant department’s
notice boards and, if possible, on the ministry’s website.82
Despite the public procurement process outlined above, the Mandalay
Regional Government directly awarded the contract to Huawei for
the Mandalay smart city CCTV surveillance system without a tender
process. The justification for the lack of a tender process was based on
tender Directive No. 1/2017 without citing any specific article. No tender
was called as the project was considered to be in the public interest
and required a huge investment, and because Huawei had already been
internally accredited.83 Apart from having no legal basis, this also violates
Myanmar’s obligations under the UN Convention against Corruption,
which the country signed and ratified.84 Under the Convention, Article
9 requires ‘public distribution of information relating to procurement
procedures and contracts, including information on invitations to tender
and relevant pertinent information on the award of contracts, allowing
potential tenderers sufficient time to prepare and submit their tenders’
and ‘establishment, in advance, of conditions for participation, including
selection and award criteria and tendering rules, and their publication’,
and finally ‘use of objective and predetermined criteria for public
procurement decisions, to facilitate the subsequent verification of the
correct application of the rules or procedures’.
This expedited process was implemented arbitrarily by the government –
Directive No. 1/2017 does not carve out any such exceptions. Given that the