a year ago

Policy underway to dispose of govt assets after economic life

Aims to cut spending on maintenance

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The government has taken a move to dispose of all kinds of its assets at the end of their economic lives, aiming to increase revenue and save money spent on maintaining such assets.

A disposal policy has already been drafted and sent recently to the government ministries, departments and agencies for comments, according to the Central Procurement Technical Unit (CPTU).

Sources said the policy is being formulated to define various categories of assets and issues related to procurements so that wastage can be addressed after the end of economic life of the assets.

They said computer, car, construction or development equipment and materials are procured under the development and operational budget every year through various agencies.

Some 14 options have been proposed to dispose of the expired goods, they added, citing examples of salvage value, market value, transferring the asset to other disposal entities, etc.

Due to lack of uniform guidelines, these are often left over, dumps at stores and parking lots that occupy spaces.

Sources said the draft has proposed to dispose of these either by destroying, or selling or any other ways after the end of their economic lives depending on items.

The government's public procurement allocation accounted for about US$ 25 billion, which is 37 per cent of the procurement budget of $ 67 billion.

The CPTU under the Implementation, Monitoring and Evaluation Division (IMED) has formulated the draft asset disposal policy to ensure best available net return from such disposed of assets, and ensure appropriate handling of the goods with fair, transparent and accountable manner.

Under the draft policy, a disposal survey committee has been proposed which would guide the process of disposal showing grounds like not fit for the purpose due to the end of life, unserviceable, obsolete, limited shelf life, storage space, etc.

Other reasons for disposing of the assets are reaching optimum selling time to maximum returns and finding hazardous materials and non-complying with occupational health and safety standards.

Before starting the work of the committee, the head of the user department shall initiate the proposal by requesting the procurement department or the department responsible for asset disposal.

"This policy will help the entities to define standard, method or restrict disposal of public assets in a legal, accountable and effective manner," said an official, who is involved in commenting on the draft.

He said the policy is expected to show the best possible outcome and value for money for the government entities at the time of procurement as well.

The government entities can dispose of goods in a manner that is efficient, consistent and equitable, and will seek to achieve value for money in accordance with the relevant principles of the Public Procurement Act and Public Procurement Rules.

It provides the methodology of asset depreciation using a straight line method.

However, many government agencies could not send their comments to the CPTU by the deadline of Sunday, sources said.

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