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On announcing his resignation Thursday, Defense Agency chief Fukushiro Nukaga mapped out basic plans for reforming the scandal-tainted agency, including a call to dissolve the agency’s Central Procurement Office.

The proposal was made by the Defense Procurement Reform Headquarters, which was set up a month ago by Nukaga.

Quoting the proposal, Nukaga said the agency will dissolve its procurement headquarters and separate the functions of cost-accounting and making contracts. The move will be made in an attempt to disperse the authority currently being held by a few top officials at the Central Procurement Office.

The agency will also beef up the supervisory roles of the agency’s Internal Bureau as well as set up a third-party team to inspect the agency’s procurement operations, Nukaga said.

Meanwhile, it will oblige contracting firms to preserve the relevant documents for a certain period of time and accept inspections by the agency, he said.

The contracts with the firms must also include an item that obliges them to pay for damages should the firms engage in any wrongdoing against the agency, he added.

The proposal will be finalized in April 1999 and the dissolution of the Central Procurement Office is expected in December 2000, according to the agency.

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