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Chuuk wants to learn CNMI procurement practices, regs
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Posted on Nov 11 2004
Even as the CNMI procurement policies get flak from contractors and potential investors, the State of Chuuk has expressed its desire to learn more about the Commonwealth’s procurement procedures.
In an Oct. 19, 2004 letter to Gov. Juan N. Babauta, Chuuk Gov. Ansito Walter requested the Babauta administration “to work and share with my staff any procedures that your government may have already established relative to government procurement applicable to U.S. federal grant.”
Walter said that Chuuk is a sub-grantee of several federal grants under the arrangement of the amended Compact between the Federated States of Micronesia and the United States.
Under this arrangement, he said, Chuuk is required to set up procurement regulations, among other requirements, prior to accessing the grants.
“We have been advised that your government has already put in place such procurement rules acceptable to the U.S.,” he said.
In his response, Babauta informed the Chuuk governor that he has authorized the Department of Finance and the Attorney General’s Office to share information about CNMI procurement practices with Chuuk.
“I agree with you on the importance of maintaining and strengthening the relationships of mutual assistance that exist among all of the Micronesian islands,” Babauta said.
The CNMI government began its efforts last year to develop a uniform procurement policy amid complaints of misuse of expenditure authority by public officials.
The CNMI AGO had cited that, among others, recent misuse of expenditure authority by public officials warrant the need to institute a strong centralized financial authority through the Finance Department.
