Kathmandu, December 5

The Public Procurement Management Office (PPMO) has blacklisted more than 51 companies in the last 11 months for flouting rules and regulations regarding procurement and construction. Those companies were engaged in civil works, consulting and goods supply.

According to data maintained by the PPMO, 38 civil firms had been blacklisted as of November 30. Meanwhile, five consulting firms and eight goods suppliers were blacklisted by the office for violating rules and regulations in the review period.

If any company that has received government tender does not complete the work within the set time or does not maintain the working quality, the PPMO has the right to blacklist that company for a period between one year and three years as per seriousness of their faults. It means the blacklisted firms cannot compete in the government’s bidding process until they are removed from the list.

“Our aim is to maintain discipline in bidding and construction process,” said Krishna Devkota, secretary of the PPMO, explaining the decision to crack down on errant firms.

According to him, the PPMO is developing separate guidelines for blacklisting and removing the companies that improve their performance from the blacklist. Currently, the PPMO has been blacklisting the firms based on the recommendations of the implementing agencies of different ministries. “When the new guidelines are implemented, the PPMO will also have the authority to monitor the performance of companies engaged in civil works and blacklist the firms that are not following the rules,” Devkota informed.

Nonetheless, PPMO will continue to blacklist the firms as per the recommendation of implementing agencies in the future as well.

According to Devkota, the PPMO office is blacklisting the firms selected to construct any project or to supply the goods but do not start the work within 15 days of winning the contract.

As per the laws, the PPMO can blacklist the firms for one to three years. However, if the blacklisted firm files a case at the court and the court rules in favour of the firm, it can be removed from the list.