PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY
ANNUAL REPORT FOR THE FINANCIAL YEAR 2008/ 09
Page 1 of 179
Page 1 of 179 Tableofcontents
Acronyms……………………………………………………………………………………………….…4
Chairman’s Message………………………………………………………………………………..……6
Executive Director…………………………………………………………………………..……………13
CHAPTER 1: CORPORATE INFORMATION ...... 13 1.1 Statutory Objectives...... 13
1.2 Organizational Structure...... 13
CHAPTER 2: ENSURING TRANSPARENCY, COMPETITION AND VALUE FOR MONEY IN PROCUREMENT & DISPOSAL PRACTICES ...... 15 2.1 Procurement Audits...... 15
2.2 Investigations...... 17
2.3 Contract Audits...... 50
2.4 Follow-ups on Procurement Audit and Investigation Recommendations...... 55
2.5 Applications for Administrative Review...... 72
2.6 Applications For Deviations...... 74
2.7 Suspension of Providers...... 78
2.8 Applications For Accreditation...... 79
2.9 Publication of Contracts above US$ 100,000...... 80
CHAPTER 3: HARMONIZATION OF PROCUREMENT AND DISPOSAL POLICIES, PRACTICES AND SYSTEMS ...... 88 3.1 Development of Standard Bidding Documents for Local Governments...... 88
3.2 Standard Bidding Documents for Revenue Collection...... 88
3.3 Development of a Local Government Public Procurement and Disposal Manual...... 88
3.4 Equipping/Re-tooling of the Procurement and Disposal Units...... 88
3.5 Asset Engraving and Verification in the 11 EU Supported Local Governments....... 89
CHAPTER 4: SETTING PUBLIC PROCUREMENT AND DISPOSAL STANDARDS ...... 90 4.1 Development of the Register of Providers...... 90
4.2 Development of Common Specification Standards of Common User Items...... 90
4.3 Development of Sector Standard Bidding Documents for Central Government Entities.....90
4.4 Amendments to the PPDA Act....... 90
4.5 Development of a Dual Classification List for Defence and National Security Organs...... 92
4.6 Development of Guidelines...... 92 Page 2 of 179 Page 2 of 179 CHAPTER 5: MONITORING COMPLIANCE OF PROCURING AND DISPOSING ENTITIES93 5.1 Conducting 120 Compliance Checks as a PRSC IV Requirement...... 93
5.2 Conducting 61 Compliance Checks...... 93
5.3 Reviewing Monthly and Quarterly Procurement and Disposal Reports...... 94
5.4 Conducting Compliance Assessment in 5 Foreign Missions....... 95
5.5 Development of a Compliance Database....... 96
5.6 Framework contracts:...... 96
5.7 Review of procurement adverts in the press:...... 96
5.8 Printing of combined CG PPDA laws:...... 96
5.9 Court Cases...... 96
CHAPTER 6:BUILDING PROCUREMENT AND DISPOSAL CAPACITY ...... 97 6.1 Build Procurement and Disposal Capacity in PDEs...... 97
CHAPTER 7: STRENGTHENING THE INTERNAL ORGANISATION ...... 110 7.1 Human Resource...... 110
7.2 General Administration...... 111
7.3 Information Technology...... 111
CHAPTER 8:CHALLENGES ...... 111 CHAPTER 9:WAY FORWARD FOR THE FY 2009/10 ...... 112 CHAPTER 10: AUDITOR GENERAL’S REPORT ...... 113 ANNEXES… ……………………………………………………………………………………………133
Page 3 of 179 Page 3 of 179 ACRONYMS ACT – Anti-Corruption Country Threshold Project
ADB- African Development Bank.
AOs – Accounting Officers
CAA – Civil Aviation Authority
CAOs – Chief Administrative Officers
CHOGM – Commonwealth Heads of Government Meeting
CIF – Cost Insurance & Freight
COMESA – Common Market for Eastern and Southern Africa
CPIs – Compliance Performance Indicators
CTB – Central Tender Board
DANIDA - Danish International Development Agency
DDP – Delivery Duty Paid
DFID - Department For International Development
DLG- District Local Government.
DEO- District Education Officer.
DISO- District Internal Security Officer.
GOU – Government of Uganda
GRN – Goods Received Note
HPDU – Head Procurement & Disposal Unit
IDPs – Internally Displaced People.
IFAD- International Fund for Agricultural Development.
IPC- Interim Procurement Committee.
IGG – Inspectorate of Government
IPPU – Institute of Procurement Professionals Uganda
ITB- Instruction to Bidders
LG – Local Government
LPO – Local Purchase Order
MAC- Management Advisory Committee.
MCC – Millennium Challenge Corporation
MICT- Ministry of Information and Technology. Page 4 of 179 Page 4 of 179 MOLG- Ministry of Local Government.
MOFPED – Ministry of Finance, Planning & Economic Development
MTEF- Medium-Term Expenditure Framework
MUBs – Makerere University Business School
NAADS – National Agricultural Advisory Services
NCHE – National Council for Higher Education
NSSF- National Social Security Fund.
OECD/DAC – Organization for Economic Co-operation & Development / Development Assistance Committee
PAC – Public Accounts Committee
PAI – Procurement Audit & Investigations
PDEs – Procuring & Disposing Entities
PPDA – Public Procurement & Disposal of Public Assets Authority
PR – Public Relations
PRSC – Poverty Reduction Support Credit
PS/ST – Permanent Secretary / Secretary to the Treasury
QCBS – Quality Cost Based Selection
RFQ – Request for Quotation
SG – Solicitor General
SFG- Schools Facilities Grant.
TCB – Training & Capacity Building
TCS- Technical Compliance Selection
USAID – United States Agency for International Development
UTODA – Uganda Taxi Operators Drivers Association
UNEB- Uganda National Examination Board.
UCE- Uganda Certificate for Examination.
UACE- Uganda Advanced Certificate for Examination.
Page 5 of 179 Page 5 of 179 CHAIRMAN’S MESSAGE
I am glad to present the 6th Annual Report (Financial Year 2008/9) since the inception of the Public Procurement and Disposal of Public Assets Authority in 2003. The importance of a strong public procurement system cannot be over emphasized in a country where the provision of the much needed goods, services and works largely depends on the transparency, efficiency and fairness of the procurement and disposal system.
The Authority has continued to make great strides in strengthening the existing public procurement and disposal system through introduction of rules and regulations to improve the application of the law. We have been able to scale up on the number of procurement audits, compliance checks and training activities over the year. This is aimed at enforcing the application of the law. The number of Administrative Review applications and cases for investigation being handled by the Authority has also significantly increased. This is a mark of confidence the private sector has in the dispute resolution mechanism, a belief that they can get a fair and transparent hearing when they feel aggrieved. This needs to be encouraged and refined. The law still faces a number of challenges notably poor procurement planning by Entities that leads to delayed procurements, poor solicitation documents failure to adhere to evaluation criteria during evaluation which has caused many Administrative Reviews, lack of records, poor contract management and corruption. These failures call for a more aggressive monitoring of the procurement system.
The amendment process to the PPDA Act is on course and I am glad to report that there has been encouraging interest in the process from all stakeholders. I am confident this process will end with a stronger law. The Ministry of Finance, Planning and Economic Development together with our development partners have supported the exercise to review the structure of the Authority, with the view of making it more responsive to its growing mandate, especially as the number of districts continues to increase with no end in sight.
The audit reports we issue regularly contain numerous violations of the law by managers in procurement entities and although we send them to control authorities for legal or administrative action, nothing seems to happen. So the impunity continues. This is the last report I am issuing on behalf of the Board. The Board is stepping down at the end of February 2011. I take this opportunity to thank the Board and members of staff of PPDA for their dedicated service to the country.
James Kahoza
Chairman, PPDA Board of Directors
Page 6 of 179 Page 6 of 179 EXECUTIVE DIRECTOR’S MESSAGE
I am pleased to present to you the performance of PPDA FOR THE Financial Year 2008/9.The Authority carried out a number of activities under the objectives of ensuring transparency, value for money in procurement and disposal practices, harmonization of laws with local governments, setting standards, monitoring compliance and building procurement and disposal capacity in Uganda. We have continued to expand on the activities we carry out and i am positive that our impact is being felt.
Under ensuring transparency, value for money in public procurement, the Authority completed procurement audits in 50 PDEs and audits in 10 PDEs were still ingoing by close of the Financial Year. The audits revealed improvement in establishment of procurement structures, use of standard bidding documents and forms, and evaluation. Never the less a number of weaknesses in the procurement system were identified in areas such as procurement planning, contract management and record keeping; against which measures such as training and capacity building programmes were designed. The audit reports were shared with the Office of the Auditor General and discussions on future strategies held. A number of investigations, 51 in number were handled by the Authority in the financial year in a bid to promote transparency and fairness in the procurement system. To enhance implementation of the Authority’s recommendations, a follow up programme was started in the Financial Year to monitor implementation of the Authority’s recommendations. Over 70% of the recommendations were implemented by the entities. The Authority in accordance with its mandate also handled 17 Administrative reviews this Financial Year.
With support from the Anti Corruption Threshold Project (ACT), the Authority procured a consultant to develop a Register of national providers. This will be completed in the next Financial Year and will enhance the capacity of providers that participate in public procurement. A list of common user items and average prices was also developed and distributed to all Entities to guide them on the market prices before they enter into contracts and also use it as a basis during budgeting. In a bid to enhance the visibility of the public procurement reform programme, the Authority also implemented aspects of the publicity strategy through radio talk shows and publicity in the print media. A newsletter was also developed and distributed to inform the public on what the Authority is doing.
In a bid to enhance the harmonization of the local government procurement and disposal practices to those of central government, the Authority developed a local government procurement and disposal manual. This will serve as a simplified guide to the LG PDEs when implementing the Law. The Authority also developed draft SBDs for local governments for the categories of goods, works and services.
As part of its mandate to set standards for public procurement and disposal systems, the Authority played a key role in developing proposals for amendments to the PPDA Law. This Financial Year, the principles of the proposed amendment bill were submitted to the Ministry of Finance, Planning and Economic Development and are currently before Cabinet for approval
In a bid to improve on compliance to the law, the authority significantly stepped up the number of compliance checks in the financial Year, accordingly the Authority carried out 120 compliance checks.
The Authority in recognition of the need to make a bigger impact in its capacity building efforts, shifted from workshops as a method of sensitization of PDES on public procurement and disposal. The Authority has moved to using hands on support interventions where PPDA consultants and staff go to the PDES and guide them practically on how procurements and disposals should be handled. This was carried out in several central and local government entities and has been well received in the entities. We plan to expand Page 7 of 179 Page 7 of 179 this programme and use it as the default method of training in the new financial year. A capacity needs assessment was carried out in Central Government PDEs to enable the training and other support programmes to focus more directly on specific skill development needs. A training needs assessment for 110 central government PDEs was finalised and this will form a basis for future capacity building interventions. PPDA also played a key role in the formation the Institute Procurement Professionals of Uganda (IPPU). This body will play a key role in regulating procurement professionals in Uganda and promoting ethical behaviour among procurement practitioners. The Universities and other tertiary Institutions (Basic requirements and Minimum standards for procurement Education and training Regulations, 2008 were gazetted this financial year with PPDA at the forefront of their development.
Given the growing staffing levels at the Authority, two departments were relocated to the PPDA Home to ease the congestion at the Offices on 14th Floor Workers’ House and facilitate further expansion of the Authority’s staffing numbers.
As we enter the new Financial Year, I would like to thank the Government, development partners and all other stakeholders other stakeholders for the continued support of the PPDA in carrying out its ever expanding mandate. More support will be required especially to match the increasing number of PDEs in the form of local governments.
Page 8 of 179 Page 8 of 179 PRIORITIES OF THE AUTHORITY FOR FY 2008/09 In its efforts to meet Government objectives for public procurement reform, the Authority planned to implement the following key activities during the Financial Year 2008/2009:
(i) Ensuring Transparency, Value for Money in Procurement and Disposal Practices
Procurement Reviews and Investigations. The objective of procurement review and investigations is to determine whether procurements are carried out in a fair and transparent process in accordance with the PPDA Act 2003. The major aim of these reviews is to identify areas of weakness in the law that are being flouted and recommend corrective measures. The Authority plans to carry out fifty one (51) procurement reviews. Twenty six (26) of these will be outsourced to individual consultants who will be selected competitively while eight (8) reviews will be carried out in-house. The Authority will receive a boost of 17 procurement audits through the USAID support under the Millennium Challenge Cooperation (MCC). Eight (8) contract audits of big procurements in selected PDEs will also be carried out. An estimated 40 investigation cases will be carried out. Follow-ups on reviews and investigation findings will be stepped up to twenty four (24) PDEs compared to 16 last year. The outcome of the reviews, investigations and follow ups will lead to increased compliance with the law and identification of weaknesses that need to be addressed.
Revision of the PPDA Corporate Plan. The objective of the Corporate Plan is to have a systematic planning framework for the Authority. The Corporate Plan is based on the objectives of the PPDA Act 2003 and the functions of the Authority.
The PPDA Corporate Plan is a 3 year rolling plan that gives strategic direction to the Authority. It outlines the priority areas that are to be covered by the Authority and as such all departmental activities are aligned to the priorities in the Corporate Plan. The Corporate Plan is a living document and is reviewed annually to take into consideration factors that could change the strategic direction of the Authority. The Authority intends to review this plan in the coming financial year. The outcome is a harmonised process of undertaking the objectives of the authority.
Facilitation of the Complaints Review Committee. The main function of this committee is to hear complaints and consider application for deviations from the provisions of the law. This is a management committee set up by the Board of Directors to assist the Board in its functions of hearing complaints, undertaking administrative reviews and reviewing applications for deviations. Section 91 of the PPDA Act provides for the Authority to carry out administrative reviews and make recommendations on any complaints that may be filed by bidders who are not satisfied with the procurement process. The Authority also regularly receives applications for deviations from the law from Entities in accordance with section 79 (3) of the PPDA Act. The Board set up a Complaints Review Committee to handle these two functions. The Authority intends to continue to facilitate the Complaint Review Committee so it can receive and discharge the complaints received within the time periods specified in the law. The outcome is transparency in procurement, and creation of efficiency in the management of the procurement process.
Generate statistical data for periodic reporting. The objective of generating data is for the Authority to be able to ascertain the number of procurements carried out, methods used and amount of public funds spent. The Authority has developed an internal mechanism to collect data using monthly procurement and disposal reports. This data provides an insight in the trends in the public procurement and disposal systems in Uganda. This activity requires inputting data from the monthly reports in the databases before statistics may be generated. The Authority will step up on this activity to enable timely production of statistics that can be used to measure performance. The outcome is reliable and accurate information of procurement and disposal statistics in Uganda.
Update of the compliance and performance indicators. The objective of compliance and performance indicators is to measure the performance of the national procurement systems. The indicators act as a measurement of the level of development of a national procurement system. The Authority intends to carry out an assessment of the compliance and performance indicators following the baseline that was carried out in 2007. This assessment will help to show whether compliance with the Law is improving in the entities against Page 9 of 179
Page 9 of 179 international best practices. The outcome of updating the indicators is to measure the performance of the national systems in terms of development.
Survey to update list of common user items. The objective of the survey on the common user items is to maintain a list of all common user items used by government entities and their indicative average prices. The first set of common user items and prices was published in December 2007. There is periodical need to update the price list which is used by government entities. The Authority is mandated under section 102 of the PPDA Regulations to come up with a list of common user items and average prices to guide entities in their procurement planning among other things. Due to the frequent changes in market prices, the price lists should be updated every year. The Authority intends to update the lists so that the process and commodities reflect the prevailing market prices. The outcome is indicative average price list to be used by all government entities to guide them in determining market price for common user items.
Public Relations Activities. The objective of PR is to improve the image and the relationship of the Authority with all its stakeholders. The authority needs to undertake continuous PR strategies to inform its stakeholders of its activities and be able to share its experiences with both the public and private sector. The Authority is still faced with the challenge of information dissemination. Many members of the public are unaware of the PPDA’s existence and its role in public procurement; often many perceive it as the replacement of the Central Tender Board. This lack of awareness has a number of negative implications; Confusion on the role of the PPDA by members of the public, Lack of interest in government procurements, which is detrimental to the fight against corruption in public procurement and as such no accountability will be demanded of government officers on how government procurements are handled. To address the lack of information the PR section intends to:- embark on media sensitization using radio and print as the key media channels of information dissemination. This will be limited to 10 radio stations in this financial year with hopes of expanding the sensitization to more radio stations. PR also intends to launch an electronic newsletter in the next financial year. The newsletter will be produced internally, every two months and circulated electronically to all stakeholders via email. This will help the section cut down on production costs while ensuring that a more relevant, up- to- date newsletter is published and disseminated to stakeholders while the news is still very relevant. The outcome will be increased knowledge of the public procurement system in Uganda.
Development of the Register of Providers. The objective of the register is to capture all providers in Uganda who are interested in doing business with Government. The register shall include details of providers such as the name and type of company, details of directors, details of their main functions, addresses and bankers’ details etc. This information will assist government entities to identify bonafide providers and their existence. Uganda still faces a challenge of having a modern company registry system where searches can easily be undertaken. Under Section 70 of the PPDA Act 2003, the Authority is mandated to establish providers register to fulfil the above objective. The outcome will be to create a sustainable and vibrant focal point for PDEs and providers with a publicly accessible database. The Register of Providers is funded under the Millennium Challenge Corporation (MCC).
Publication of Contract Awards. The main objective of publicising contract awards is to inform the public how government contracts have been awarded. The publication of these awards involves publication of the names of successful bidders, method of procurement used and the amounts of funds spent. The Authority plans to publish two reports on contracts awarded in excess of US$ 200,000 by Central and Local Government Procuring and Disposing Entities for the periods July to December 2008 and January to June 2009. The outcome is increased transparency in the award of government contracts.
(ii) Harmonizing procurement and disposal policies and practices of the Central Government, Local Governments and Statutory bodies. The objective of amending the PPDA Act and Regulations is to streamline and strengthen the operations of the law. Since 2003, the law has been in operation and several areas have been identified either as lacking or having challenges in implementation or require harmonisation. It is now prudent that the law is revised to be able to overcome the weaknesses and also introduce modern aspects in public procurement. The government of Uganda has set up a Committee comprised of government entities and development partners including the private sector and Chaired by the MOFPED to review the provisions of the PPDA Act and Regulations and come up with recommendations aimed at improving and strengthening the law. Page 10 of 179
Page 10 of 179 The PPDA acts as a Secretariat to the Committee. The outcome will be increased compliance and enforcement of the PPDA law.
(iii) Setting Standards for Public Procurement Systems. The objective of continuously issuing guidelines is to fill up the gaps that exist in the law.
The Authority shall therefore continue issuing guidelines under the PPDA Act with a view to strengthening its provisions. As part of its objective of setting standards, the Authority intends to issue two guidelines on Debriefing of Bidders and the Implementation of Preference Schemes, issue sector Standard Bidding Documents on health sector products and text books and reading materials and issue in consultation with Uganda National Bureau of Standards, Specification standards of commonly procured items by entities. The outcome is better application of the law and enforcement.
(iv) Monitoring Compliance of procuring and disposing entities. The objective of a national compliance exercise is to ascertain levels of compliance to the procurement law by government entities. This exercise was last carried out in 2004 and there is need to undertake another compliance assessment especially in Local Governments following the harmonisation of local government procurement and disposal systems with that of central government in 2007. The outcome of a national compliance exercise shall be increased compliance with the law. Under Section 7(i) and (r) of the PPDA Act, the Authority is mandated to undertake compliance monitoring of all government entities.
The Authority plans to undertake a National Compliance Exercise on all Central and Local Government entities and issue a report on their compliance status. The Authority will issue a report on the 120 Compliance Checks held in FY 2007/08 under the PRSC 7 and to continuously undertake compliance checks on the entities found to be below the satisfactory rating categorisation.
A compliance database is being set up to generate statistical data from the monthly and quarterly reports submitted by entities in order to provide stakeholders with reports on the performance of the public procurement systems.
(v) Building Procurement and Disposal Capacity
The main objective of building capacity is to enhance the efficiency, transparency and accountability by public officials who undertake procurement. The Authority since its inception has carried out capacity building initiatives with a view to increase efficiency and achieve value for money. Under section 6(e) of the PPDA Act 2003. The Authority is mandated to carryout training and capacity building in all government entities. This training goes a long way in the improvement of management of the procurement process by entities.
Following the capacity gaps identified by the capacity needs assessments the Authority will design and implement capacity building interventions for PDEs through provision of hands on support targeting 36 PDEs. The hands on support will be carried out by PPDA staff & Individual consultants based on identified and updated capacity needs while PPDA staff will carry out Quality Assurance of the consultant’s interventions. Procurement and disposal training programmes will be delivered to staff engaged in the procurement and disposal process at all levels, together with other stakeholders through demand driven training and in collaborative arrangements with MOFPED and MOLG. The training will be continually adapted and updated to reflect demand, as ascertained through capacity needs assessment and other reports. The Authority will in addition, build Capacity of 100 Providers and 50 Civil Society Organisation members through a sensitisation non-residential workshop. To cope with the increased demand for training and to improve the quality of the trainers, PPDA intends to hire and deploy continuously procurement and disposal consultants (trainers) to carry out capacity building activities like hands on support and training. The Authority plans to improve efficiency levels in PDEs by equipping and tooling PDUs in 10 selected government institutions. The outcome is increased capacity and efficiency in the management of the public procurement and disposal processes.
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Page 11 of 179 Promotion of professional development and self-regulation: The objective is to create a regulator for procurement professionals in Uganda under the institute of procurement professionals in Uganda. The main function of this institute is to regulate the procurement professional in their day to day procurement engagements. The institute has been set up and will be facilitated by the authority to kick start its operations. The Institute of Procurement Professionals of Uganda will prescribe and regulate the conduct of its members, will be supported and facilitated to recruit procurement practitioners as its members and maintain them to the required standards. The outcome of the institute is to professionalize public procurement in Uganda.
(vi) Strengthening the Internal Organisation
Finance: The Authority is financed by Government of Uganda through the Consolidated Fund with additional support from donor agencies. The Government of Uganda’s Anti-Corruption Threshold Country Plan was approved by the Millennium Challenge Corporation, which will also provide support to PPDA. The Authority may also seek to generate its own revenue, for example, through the registration of providers of works, services and supplies.
Human Resources: With the harmonisation of the procurement law at the local government level, there is need for the Authority to expand its organisational structure to meet the additional demand. To facilitate achievement of the strategic objectives, performance management among the human resource will be strengthened partly through capacity building among PPDA staff and board members whereby training and study tours will be conducted. . This year however, it has been planned to get in consultants from outside and conduct the training locally.
Accommodation: The Authority purchased a property at Plot 39, Nakasero Road and moved some of its staff out of Workers’ House to the property purchased at Plot 39, Nakasero Road to ease the present congestion and facilitate further expansion.
Management Information: The Authority will improve the PPDA information resource centre, the record keeping system and install document management software to ease documentation flow between Worker’s House offices and PPDA Home at Plot 39 Nakasero Road.
Internal Audit: internal audit work plan for this year will continue to focus on areas that are high risk to the Authority objectives, resources, reputation budget performance and other priority areas identified by management and Board. These high risk areas are grant of waivers, internal procurements, financial reporting, development of team mate, implementation of Solomon. The outcome of internal audit reviews is improved performance, timely and accurate reporting and a compliant PPDA.
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Page 12 of 179 CHAPTER 1: CORPORATE INFORMATION
The Public Procurement and Disposal of Public Assets Act No. 1 of 2003 (PPDA Act) established the Public Procurement and Disposal of Public Assets Authority as an autonomous Regulatory Body. The Act empowers the Authority to formulate policies, set procurement and disposal standards, build procurement and disposal capacity and supervise the procurement and disposal practices of all procuring and disposing entities, which include central government ministries and departments, local governments, constitutional and statutory bodies.
1.1 Statutory Objectives
The objectives of the Authority are stated in Section 6 of the PPDA Act and these are to: i. ensure the application of fair, competitive, transparent, non-discriminatory and value for money procurement and disposal standards and practices; ii. harmonize the procurement and disposal policies, systems and practices of the central government, local governments and statutory bodies; iii. set standards for the public procurement and disposal systems in Uganda; iv. monitor compliance of procuring and disposing entities; and v. Build procurement and disposal capacity in Uganda.
1.2 Organizational Structure
The Authority is composed of the following:
1.2.1 Board of Directors
The Authority is governed by a Board of Directors. During the financial year, the Minister of Finance, Planning and Economic Development appointed 7 members of the Board namely: i. Mr. James Kahoza - Chairman ii. Mr. Joseph Mukasa - Member iii. Mrs. Sarah Lubega - Member iv. Mr. John B. O. Wabwire - Member v. Mr. Anthony Okwenye - Member vi. Eng. Younus B.K. Mpagi - Member vii. Mr. David Kabateraine - Member viii. Mr. Edgar Agaba - Executive Director
Section 10 of the PPDA Act empowers the Board to execute the functions and powers of the Authority. The Board is responsible for formulating policies of the Authority, approving the Authority’s budgets and overseeing the operations of the Authority by monitoring and evaluating its performance.
1.2.2 Executive Director and the Corporate Office
The Executive Director is responsible for the day-to-day operations of the Authority. He implements the Authority’s policies and programmes and supervises all the departments. The Executive Director heads the Corporate Office which is responsible for public relations, internal audit and co-ordination with other government agencies, the donor community and the civil
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Page 13 of 179 society. The Corporate Office is also supported by the Technical Advisor who provides technical support to the Authority
1.2.3 Legal and Compliance Department
The department of Legal and Compliance is mandated under Section 7 (c) to set standards for the public procurement and disposal sector. The department’s main objective is to provide advisory services on public procurement and disposal of assets to the Authority, Procuring and Disposing Entities, providers and other stakeholders. It also monitors Procuring and Disposing Entities and recommending corrective measures to be undertaken to ensure conformity with the requirements of the law.
1.2.4 Training and Capacity Building Department
The Training and Capacity Building department is responsible for building procurement and disposal capacity. The capacity building functions of the Authority are specified in Sections 6 (e), 7 (c), (m) of the PPDA Act and Regulation 11 and include: setting training standards, competence levels certification systems, development of capacity building operational plans, collaboration with procuring and disposing entities, providers, training and research institutions.
1.2.5 Procurement Audit and Investigations Department
The department of Procurement Audit and Investigations is mandated under Sections 7 and 8 of the Act to commission or undertake investigations. The department also carries out procurement or disposal contract and performance audits. The audits and investigations are undertaken on disposing entities at Central and Local government, Statutory bodies, Commissions, Public Hospitals and Tertiary Institutions.
1.2.6 Finance and Administration Department
The department is responsible for smooth management of the internal affairs of the Authority, including finance and administration, human resource management, information technology and library and documentation services. It is also oversees the procurement of goods and services for the Authority.
1.2.7 Internal Audit Unit
Internal Audit is a unit in the Authority which is administratively under the office of the Executive Director. The mandate of internal audit is to perform an oversight function and appraise operations, systems and procedures. The unit functionally reports to the Board of Directors.
Page 14 of 179 Page 14 of 179 CHAPTER 2: ENSURING TRANSPARENCY, COMPETITION AND VALUE FOR MONEY IN PROCUREMENT & DISPOSAL PRACTICES
In accordance with Section 6 (a) of the PPDA Act, the Authority is mandated to ensure the application of fair, competitive, transparent, non discriminatory, value for money procurement and disposal standards and practices. During the FY under review the Authority undertook to carry out the following activities:
2.1 Procurement Audits
PPDA planned to conduct procurement audits in sixty (60) PDEs during the Financial Year 2008/09 of which two (2) were spillovers from FY 2007/2008. The planned audits were:-
1 Amnesty Commission 30 Ministry of Water & Environment 2 Capital Markets Authority 31 Ministry of Works and Transport 3 Cotton Development Authority 32 Mubende District 4 Directorate of Public Prosecutions 33 Mukono District 5 Education Service Commission 34 Mulago Hospital 6 Electricity Regulatory Authority 35 National Council for Higher Education 7 Gulu University 36 National Council for Science and 8 Health Service Commission Technology 9 Ibanda District 37 National Curriculum Development Centre 10 Jinja District 38 National Planning Authority 11 Judicial Service Commission 39 National Social Security Fund 12 Kabale District 40 National Water and Sewerage 13 Kabarole District Corporation 14 Kisoro District 41 Office of the Prime Minister 15 Law Development Centre 42 Parliamentary Commission 16 Lira District LG 43 Population Secretariat 17 Local Government Finance Commission 44 Posta Uganda 18 Management Training and Advisory 45 Public Service Commission Centre 46 Rural Electrification Agency 19 Mbarara District LG 47 Sironko District 20 Ministry of Defence 48 Tororo District 21 Ministry of Energy & Mineral 49 Uganda Blood Transfusion Services Development 50 Uganda Coffee Development Authority 22 Ministry of Foreign Affairs 51 Uganda Communications Commission 23 Ministry of Gender, Labour and Social 52 Uganda Electricity Generation Co. Ltd Development 53 Uganda Investment Authority 24 Ministry of Health (ADB-Project) 54 Uganda Land Commission 25 Ministry of Information Communications 55 Uganda Management Institute Technology 56 Uganda National Bureau of Standard 26 Ministry of Internal Affairs 57 Uganda National Examinations Board 27 Ministry of Justice and Constitutional 58 Uganda Police Force Affairs 59 Uganda Printing and Publishing 28 Ministry of Public Service Corporation 29 Ministry of Tourism, Trade and Industry 60 Uganda Wildlife Authority
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Page 15 of 179 Procurement Audits Completed The following fifty (50) procurement audits were completed during the financial year under review:
1 ADB-Project in Ministry of Health 26 Mubende District 2 Amnesty Commission 27 Mukono District 3 Capital Markets Authority 28 National Curriculum Development 4 Cotton Development Authority Centre 5 Directorate of Public Prosecutions 29 National Planning Authority 6 Education Service Commission 30 National Water and Sewerage 7 Electricity Regulatory Authority Corporation 8 Health Service Commission 31 Parliamentary Commission 9 Ibanda District 32 Population Secretariat 10 Jinja District 33 Posta Uganda 11 Judicial Service Commission 34 Public Service Commission 12 Kabarole District 35 Rural Electrification Agency 13 Kisoro District 36 Sironko District 14 Law Development Centre 37 Tororo District 15 Local Government Finance Commission 38 Uganda Blood Transfusion Services 16 Management Training and Advisory 39 Uganda Coffee Development Authority Centre 40 Uganda Communications Commission 17 Mbarara District LG 41 Uganda Electricity Generation Co. Ltd 18 Ministry of Energy & Mineral 42 Uganda Investment Authority Development 43 Uganda Land Commission 19 Ministry of Foreign Affairs 44 Uganda Management Institute 20 Ministry of Gender, Labour and Social 45 Uganda National Bureau of Standard Development 46 Uganda National Council for Science 21 Ministry of ICT and Technology 22 Ministry of Internal Affairs 47 Uganda National Examinations Board 23 Ministry of Justice and Constitutional 48 Uganda Police Force Affairs 49 Uganda Printing and Publishing 24 Ministry of Public Service Corporation 25 Ministry of Tourism, Trade and 50 Uganda Wildlife Authority Industry 4. Ministry of Defence On-going Procurement Audits 5. Ministry of Water & Environment 6. Ministry of Works and Transport The following ten (10) procurement audits were 7. Mulago Hospital still on-going as of 30th June 2009: 8. National Council for Higher Education 1. Gulu University 9. National Social Security Fund 2. Kabale District 10. Office of the Prime Minister 3. Lira District LG
Summary of Performance of the PDEs
Of the 1,520 contracts reviewed, 414 were ranked as high risk, 371 contracts were medium risk, 414 ranked as low risk and 321 contracts were satisfactory (See figure 1.1)
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Page 16 of 179 Figure 1.1
Summary of Performance by number of contracts
Satisfactory 21% High 28% High Medium Low Satisfactory Low 27% Medium 24%
Figure 1.2 Summary of Performance by value of contracts A detailed analysis of the performance and key findings from the PDEs is attached.
2.2 Investigations
Section 8 (c) of the PPDA Act empowers PPDA to commission or undertake investigations. During the FY under review, the PPDA received 51complaints from the public. Out of the 51 complaints, 28 were investigated and disposed off while 14 cases were referred back to the PDEs for the Accounting Officers to investigate. 2 cases were referred to the Management Advisory Committee (MAC) and the remaining 7 cases are still on-going. Below is a summary of the investigated cases: Name of PDE: Pallisa District Local Government Subject of Investigation: Construction of District Council Chambers Background: PPDA received a complaint from Mr. Kirya Badru, the District Council Puti-Puti Sub- County, Pallisa District, against the Chairperson and the entire District Executive Committee about a contract agreement entered into with M/s China Nanjing International Ltd for the construction of the District Council Chambers and offices. Findings: Recommendations: 1. Without canceling the contract with M/s China Nanjing, the x The District should enter into District re-advertised and entered into a fresh contract with M/s negotiations with M/s China SMB International for construction of the District Council Nanjing International Limited Chambers and Offices –Phase1. to agree on recovery of the 2. In 1999, the district received a bid security worth Ushs advance payment and formally 35,000,000/= which was directly deposited on the General Fund terminate the contract. Account of the District and was never released back to the x The Accounting Officer, Mr. contractor- M/s China Nanjing International Ltd. Musobya Kiganda Abdullah 3. The District effected an advance payment of Ushs 63,265,859/= should be disciplined by the to M/s China Nanjing against no advance guarantee or security Permanent Secretary, Ministry contrary Regulation 116(2) of Local Government Regulations, of Local Government for 2006. having failed to implement the
Page 17 of 179
Page 17 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 4.1. To-date,During theno works Financial have Year been 2005/2006,executed by theM/s SchoolsChina Nanjing1. The Accountingsame recommendation Officer should made InternationalFacility Grant Ltd, (SFG) another programme contractor funding in the was names reduced of M/s SMBterminate by IGG the in appointments 2004. of the Internationaland the programme Ltd was proc cutured offand he Manafwa is on site. District. followingx The officers:Accounting Dr Officer Wamasebu should 5. TheTherefore Authority due inspected to limited the funds, documents the at above the District three and Gideon, it caution Dr Okello the Denis Contracts and Mr wascontracts observed were that not the implemented.District did not Whenhave any the documentation SFG Mwenyi Committee Davis from members the Contracts for asprogramme far as the was contract installed with in M/s Financial China YearNanjing 2007/2008, was concerned, Committee making for fraudulently retrospective approving approval apartthe above from three four contracts letters we ofre submittedcorrespondence to Manafwa between thethe wrongfuldecisions. award of tender for contractorDistrict Contracts and the CommitteeDistrict. There to considerwas no recordvariations of the in contractconstruction x The of Entity classrooms should at Bwirussa seek for agreementthe contract andprices. payment records at all on file contrary toPrimary training School in areas to of New contracting Mbale 2. RegulationsThe Contracts 46(1) Committee, and Regulati Manafwaons 121 District of Local approved Government Commercial and contract Agencies management in accordance so (PPDA)individual Regulations, contract amendments 2006. for the contracts of with Regulationthat performance 16 of the LG of (PPDA) future 6. WithoutNangalwe terminating and Sigunga the Primary contract Schools for the increasing construction the of theRegulations, contracts 2006. can be enhanced and Counciltotal contract Chambers values with by M/s50% China of the Nanjing original International contracts 2. Ltd,The Accountingalso ensure Officer strict should compliance ensure thewithout District the approval has engaged of the another Authority, contractor contrary on to the samethat theto memberssigned contracts. of the Contracts contract.Regulation 120 (12) of the Local Government (PPDA) Committee strictly comply with the 7. TheRegulations, contract 2006. for construction of the Council Chambers forexisting procurement laws. 3. PallisaInitially, District each school resulted had into attracted a financial one loss bidder, of 3. UshsThe Senior Assistant Secretary, Mr 28,265,859/=rendering the to Government. procurement non-competitive. The Bwayo Rogers should be subjected to Interim Procurement Committee irregularly approved disciplinary action for communicating Namethe of contractPDE: Manafwa awards District and disregarding the technical award decisions. Subjectevaluation of Investigation: report without Construction providing ofsound Nangalwe, reasons. Bwirussa & Sigunga Primary Schools th 4. The Accounting Officer should advise Background:4. In the meetingPPDA held was 10 requested February by 2006, the Chief the Interim Administ rativethe Contracts Officer, Committee Manafwa District to ensure Local that Government,Procurement to conduct Committee an independent (IPC), Manafwainvestigation District into the contcontractracts for variationsconstruction above of classrooms 25% of the in threeirregularly primary schools approved namely; an award Nangalwe, of Shs Bwirussa 31,164,349/= and Sigunga to Primarycontract Schools value in are Manafwa approved District. by the Findings:M/s Yema Contractors and Suppliers. The IPC as Recommendations:Authority. 1. Duringstated in the their Financial minutes Year ignored 2005/2006, the evaluation the Schools report 1.5. TheManafwa Accounting District being Officer a should young Facilityrecommendation Grant (SFG) and programme approved an funding award was to areduced bidder terminate the appointments of the and the programme cut off Manafwa District. following officers: Dr Wamasebu Therefore due to limited funds, the above three Gideon, Dr Okello Denis and Mr contracts were not implemented. Page When 18 of the 179 SFG Mwenyi Davis from the Contracts programme was installed in Financial Year 2007/2008, Committee for fraudulently approving the above three contracts were submitted to Manafwa the wrongful award of tender for District Contracts Committee to consider variations in construction of classrooms at Bwirussa the contract prices. Primary School to New Mbale 2. The Contracts Committee, Manafwa District approved Commercial Agencies in accordance individual contract amendments for the contracts of with Regulation 16 of the LG (PPDA) Nangalwe and Sigunga Primary Schools increasing the Regulations, 2006. total contract values by 50% of the original contracts 2. The Accounting Officer should ensure without the approval of the Authority, contrary to that the members of the Contracts Regulation 120 (12) of the Local Government (PPDA) Committee strictly comply with the Regulations, 2006. existing procurement laws. 3. Initially, each school had attracted one bidder, 3. The Senior Assistant Secretary, Mr rendering the procurement non-competitive. The Bwayo Rogers should be subjected to Interim Procurement Committee irregularly approved disciplinary action for communicating the contract awards and disregarding the technical award decisions. evaluation report without providing sound reasons. th 4. The Accounting Officer should advise 4. In the meeting held 10 February 2006, the Interim the Contracts Committee to ensure that Procurement Committee (IPC), Manafwa District contract variations above 25% of the irregularly approved an award of Shs 31,164,349/= to contract value are approved by the M/s Yema Contractors and Suppliers. The IPC as Authority. stated in their minutes ignored the evaluation report 5. Manafwa District being a young recommendation and approved an award to a bidder
Page 18 of 179 Page 18 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. whoDuring had the been Financial disqualified Year 2005/2006, at the the preliminary Schools 1. Entity,The Accounting the Accounting Officer Officer should examinationFacility Grant for (SFG) lack of programme a bid security. funding was reduced ensureterminate that the training appointments in different of the 5. Inand the the same programme meeting as cut above off the Manafwa IPC irregularly District. procurementfollowing officers: modules Dris conducted Wamasebu to approvedTherefore awards due tofor limitedNangalwe funds, P/S and the Sigunga above P/S three to sensitizeGideon, Drthe Okellouser departments, Denis and PDU Mr bidders,contracts whose were not bids implemented. were not evaluated When the by SFG the andMwenyi members Davis from of the the Contracts Evaluationprogramme was Committee installed because in Financial their Year bids 2007/2008, were not Committee on for the fraudulently procurement approving law. signedthe above by the three Chairperson contracts IPC. were submitted to Manafwa 6. Thethe wrongful Accounting award Officer of tender should for 6. Mr.District Bwayo Contracts Rogers, Committee Senior Assistantto consider Secretary variations then, in immediatelyconstruction of investigate classrooms quality at Bwirussa of the usurpedthe contract powers prices. of the Accounting Officer by constructionPrimary School especially to theNew structural Mbale 2. communicatingThe Contracts Committee, award decisions Manafwa and District signing approved contracts strengthCommercial of the Agencies classrooms in built accordance in the forindividual the three contract schools. amendments Mr. Bwayo for did the this contracts contrary ofto threewith Regulation primary 16 schools of the LG and (PPDA) make SectionNangalwe 26 and(g) ofSigunga the PPDA Primary Act, No.Schools 1 of 2003.increasing the remedialRegulations, measures. 2006. 7. Fromtotal contract the site values inspection by 50% of Sigungu of the original Primary contracts School, 2. The Accounting Officer should ensure thewithout quality the of approvalthe construction of the works Authority, was very contrary poor, toa that the members of the Contracts newRegulation classroom 120 block(12) of under the Localdefects Government liability period (PPDA) had Committee strictly comply with the severalRegulations, cracks 2006. in the floor and the walls. The classroom existing procurement laws. 3. blockInitially, showed each signs school of had uneven attracted settlement one bidder,in the 3. The Senior Assistant Secretary, Mr foundationrendering leading the procurement to big cracks non-competitive. in the walls rendering The Bwayo Rogers should be subjected to theInterim structure Procurement weak. Committee irregularly approved disciplinary action for communicating the contract awards and disregarding the technical award decisions. evaluation report without providing sound reasons. th 4. The Accounting Officer should advise Name4. In of the PDE: meeting Uganda held Police 10 Force February 2006, the Interim the Contracts Committee to ensure that SubjectProcurement of Investigation: Committee Construction (IPC), of Manafwa Temporary District (Iron Sheets)contract Structures variations above 25% of the Background:irregularly The approved Authority an award received of Shs a 31,164,349/=complaint on to the constructioncontract value of temporary are approved (Iron Sheets) by the structuresM/s Yema in Uganda Contractors Police Force and Suppliers. for CHOGM. The The IPC re port as indicatedAuthority. that the structures constructed by M/s stated Rhino in Investments their minutes (U) ignoredLtd were the poorly evaluation done a reportnd the eucalyptus5. Manafwa poles District were too being small ina size young to supportrecommendation the structures. and approved an award to a bidder Findings: Recommendations: x The Uganda Police Force Estates Officer instructed M/s 1. The Accounting Officer, Ms Rhino Investments (U) Ltd to commencePage 18 workof 179 when the Kabogoza Musoke Winnie procurement cycle was at the level of approval of the method Agnes, should be cautioned by of procurement by the Contracts Committee. the Head of Public Service for x At commencement of the works in October 2007, M/s Rhino signing this contract Investment Ltd was given the bills of quantities which were retrospectively. She should also mere schedules of materials without technical specifications be cautioned for failing her and without drawings. The contractor was given a sketch only overall responsibility in showing that the structures shall measure 30 meters long by execution of this procurement. 10 meters wide. 2. The Contracts Committee x The Entity used the direct procurement method yet the value members should be cautioned to of this procurement was Ushs 159,818,750= which required stop making retrospective the use of open bidding. approval decisions. x The works for temporary structures were completed in 3. The Estates Officer, ACP December 2007 without a signed contract. Edyegu Richard should be held x M/s Rhino Investments Ltd’s bid dated 7th November 2007 responsible for instructing the had the priced bills of quantities which were a duplication of bidder to commence works prior the priced bills of quantities attached to the PP Form 20 with to Contracts Committee the exact same rates. approval hence, appropriate x The evaluation committee did not carry out the arithmetic disciplinary action should be error check of the bid. The bidder for each unit at Ushs. 15, taken against him. 981, 875, 000/= and the grand total was Ushs 159,818,750= 4. The Estates Officer, Kyasanku for the 12 temporary structures. This grand total should have Raymond should be punished for instructing the bidder to
Page 19 of 179 Page 19 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. beenDuring corrected the Financial to Ushs 191,782,500= Year 2005/2006, and this the caused Schools a deficit 1. The replace Accounting timber Officer for the should roof ofFacility Shs 31,963,750=. Grant (SFG) programme funding was reduced terminatestructure the withappointments eucalyptus of poles, the x Itand took the the Entity programme four months cut from off the Manafwa date of contract District. award followingwithout officers: any authority Dr Wamasebu and for toTherefore forward the due contract to limited to Solicitor funds, General the above for clearance. three The Gideon,his Drpoor Okello supervision. Denis and Mr Entitycontracts did not were provide not implemented.any justification Whenfor the delay. the SFG Mwenyi5. The Davis Accountant from General the Contracts should x Theprogramme Authority was inspectedinstalled in the Financial four temporary Year 2007/2008, structures at Committeetake for appropriate fraudulently action approving against Nsambyathe above Police three contractsbarracks weandre noted submitted that the to Manafwastructures were the wrongfulthe head award PDU of Mr. tender Aheebwa for poorlyDistrict constructedContracts Committee with very to weakconsider eucalyptus variations poles in and constructionStanely of forclassrooms having delayedat Bwirussa the hardlythe contract any engineeringprices. technical input. The roofing and the Primarysubmission School of to the Newdraft contract Mbale 2. timberThe Contracts door shuttersCommittee, were Manafwa not done District using approved the materials Commercialto Solicitor Agencies in General accordance for specifiedindividual in contract the bills amendmentsof quantities/schedule for the contracts of materials. of The with Regulationclearance without16 of the any LG justifiable (PPDA) roofNangalwe structure and thatSigunga is the Primary rafters, Schoolspurlines, increasing struts & ties,the wall Regulations,reason. 2006. platetotal contractand tie beam values was by supposed 50% of to the be original done using contracts timber 2.but The6. AccountingThe above Officer mentioned should officersensure insteadwithout used the weak approval eucalyptus of the poles. Authority, contrary to that theshould members give reasons of the as Contracts to why x TheRegulation changes 120 in (12) the of roof the structLocalures Government were instructed (PPDA) by the Committeethey should strictly not comply be compelled with the to EstatesRegulations, Officer 2006. without approval by or without bringing these existingpay procurement the contractor laws. for the works 3. changesInitially, to eachthe attention school of hadthe Contracts attracted Committee. one bidder, 3. The Seniorirregularly Assistant executed. Secretary, Mr x Therendering contractor the raised procurement a claim non-competitive. for payment, however The the Bwayo Rogers should be subjected to EntityInterim has Procurement failed to take Committee a decision irregularly on whether approved or not to pay disciplinary action for communicating andthe no contract officer awardsin the Entity and disregardingis taking responsibility the technical which is award decisions. evaluation report without providing sound reasons. contrary to Section 34 (f)th & (g) of the PPDA Act , 2003 4. The Accounting Officer should advise 4. In the meeting held 10 February 2006, the Interim the Contracts Committee to ensure that Procurement Committee (IPC), Manafwa District contract variations above 25% of the Nameirregularly of PDE: approvedMinistry of an Local award Government of Shs 31,164,349/= to contract value are approved by the SubjectM/s of Yema Investigation: Contractors Procurement and Suppliers. of 355 Motorcycles The IPC as Authority. Background:stated in theirThe minutes GOU through ignored MOLG the evaluation received report a loan 5. fromManafwa International District Fund being for Agricultural a young Developmentrecommendation (IFAD) andtowards approved the cost an of award the District to a bidderLivelihoods Supports Program and part of the loan was used to procure 355 motorcycles. PPDA received a complaint from a whistleblower alleging corruption in the procurement process of motorcycles by the MoLG. Findings: Page 18 of 179 Recommendations: 1. Initially, only one firm passed the preliminary examination stage. 1. The bidding process in the However, the funding agency requested MOLG to waive minor MOLG should always be deviations like height which would not substantially affect the handled by the PDU in performance of the motorcycles. This waiver brought on board M/s accordance with PPDA Top Company Ltd, M/s Twin Coast Ltd in addition to M/s Honda Regulations 31 and 32 (f). (U) Ltd which had initially qualified alone. In this regard, the 2. The lowest bid of M/s Twin Coast Ltd and the second lowest bid of Accounting Officer should M/s Top Company Ltd were eliminated after the site visit aimed at advise in writing, the establishing whether the bidder could offer after sales service Program Co-ordinator, support; whether the bidder had in stock fast moving spare parts for District Livelihood the equipment offered and were valued at US $ 25,000. Support Program not to 3. The bidding process (issue and receipt of bids) was handled by the usurp the powers of the Liaison Office, District Livelihood Support Program (DLSP), PDU. according to the information obtained from the bid document, 2. In displaying the Notice of contrary to the PPDA Regulations that require that the process be Best Evaluated Bidder, the handled by the PDU. Accounting Officer should 4. The bid document did not spell out the year of manufacture of always ensure that it is in motorcycles to be supplied. While interviewing the suppliers and accordance with the Entity, it was stated that it was known to be brand new Regulation 224 of the motorcycles of the year 2008. However, this was not included in the PPDA Regulations, 2003. contract between MOLG and the awarded bidder. 3. Since the year of 5. The Authority also established that the manufacture’s authorisation
Page 20 of 179 Page 20 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. submittedDuring the by Financial M/s Twin Year Coast 2005/2006, Ltd was the from Schools Yancheng 1. DilingThe Accountingmanufacture Officer was not shouldstated ImpexFacility Ltd, Grant which (SFG) is notprogramme the manuf fundingacturer was of Jailing.reduced Furtherterminate due thein appointments the contract, of the diligenceand the and programme search revealed cut off that Manafwathis company District. (Yancheng) following is a Accounting officers: Dr Officer Wamasebu should supplierTherefore of medical due to equipment limited funds, and sundries. the above three Gideon, Drensure Okello that Denisthe motorcycles and Mr 6. Ascontracts part of were the investigation, not implemented. the Authority When visited the SFG both M/sMwenyi Top Davisdelivered from by the the Contracts supplier Companyprogramme (U) was Ltd installed and M/s in Honda Financial (U) YearLtd on 2007/2008, 8/8/08 and foundCommittee out are for brandfraudulently new of approving the year thatthe aboveboth firms three had contracts spare parts were in submitted stock and topersonnel. Manafwa However, the the wrongful 2008. award The of Accounting tender for recordDistrict that Contracts was signed Committee by Mr. toHenry consider Wang, variations the Managing in Directorconstruction Officer of classrooms and the at Bwirussa supplier onthe 11/03/08contract prices.during the verification by MOLG, it was recordedPrimary that Schoolshould sign to anNew addendum Mbale 2. noThe Jailing Contracts spares Committee, were in theManafwa workshop District but approved were to be importedCommercial to Agencies the contract in accordance with soon,individual and no contract evidence amendments of qualified for staff the in contractsJailing motorcycles of with was Regulation immediate 16 of effect.the LG (PPDA) presented.Nangalwe and Sigunga Primary Schools increasing the Regulations,4. The 2006. Accounting Officer is 7. Thetotal Notice contract of values Best Evaluated by 50% of Bidder the original was displayed contracts on 2. 20/05/08The Accounting advised Officer to proceed should with ensure the withwithout the removal the approval date of of 26/05/08. the Authority, However, contrary there was to no evidencethat the membersprocurement of the process Contracts to its thatRegulation the notice 120 (12) was of copied the Local to all Government the bidders (PPDA) as required byCommittee the conclusion. strictly comply with the PPDARegulations, Reg. 224 2006. (6). existing procurement laws. 3. Initially, each school had attracted one bidder, 3. The Senior Assistant Secretary, Mr rendering the procurement non-competitive. The Bwayo Rogers should be subjected to NameInterim of PDE: Procurement Makerere University Committee Business irregularly School approved disciplinary action for communicating Subjectthe of contract Investigation: awards Construction and disregarding of the theLecture technical Halls and Libraryaward decisions. Background:evaluation Thereport Authority without receivedproviding several sound complaintsreasons. from bidders regarding the procurement process th 4. The Accounting Officer should advise for4. theIn Construction the meeting of held Lecture 10 FebruaryHalls and 2006,the Li brary the Interim at Makerere Universitythe Contracts Business Committee School. to ensure that Findings:Procurement Committee (IPC), Manafwa District contractRecommendations: variations above 25% of the 1. Evaluationirregularly approved criteria used an award was of not Shs stated 31,164,349/= in the solicitation to contract 1. Re-evaluate value are approved the bids by thefor documentM/s Yema contrary Contractors to Regulation and Suppliers. 172(1). The IPC as Authority.construction of the proposed 2. Thestated evaluation in their minutesof the bids ignored at the the preliminary evaluation evaluation report 5. stageManafwa library District and the being construction a young of wasrecommendation not done in accordance and approved with the an awardRegulations. to a bidder the lecture halls strictly 3. The Evaluation Committee did not follow the evaluation following the evaluation criteria methodology stipulated in the solicitation document, for stipulated in the solicitation example, the post-qualification criteriaPage stated 18 ofin 179the solicitation document in accordance with document were examined at the detailed technical examination Section 71 (3) of the PPDA Act stage. 2003. Ensure that all the 4. There were contradictions in the evaluation report on the bids. arithmetic errors in all bids are The report stated that all the bidders were compliant on the corrected. major items of construction equipment proposed to carry out 2. In the event that the same bidder the contract at preliminary examination. In the same report, M/s is the best evaluated for both Babcon was not compliant on the technical evaluation. procurements, the Evaluation 5. Arithmetic error checks and corrections were not done Committee should assess the exhaustively. For example in M/s Seyani’s Brothers & capacity of the bidder to Company Ltd bid for Library construction, the multiplication undertake both jobs. error of Ushs 196,698,000/= (page 2/36) was not detected and 3. The Accounting Officer should was not corrected. ensure that the Heads of User 6. M/s Seyani Brothers & Company Ltd emerged as the best Departments and other officials evaluated bidder for both procurements, that is, construction of from the Entity are trained in lectures halls and for construction of the library. It must be the area of evaluation of bids. noted that both procurements were evaluated separately as they were advertised as different procurements. The Entity did not envisage a situation where both procurements could be won by one bidder and as such did not evaluate the capacity of M/s Seyani Brothers & Company Ltd to undertake both jobs.
Page 21 of 179 Page 21 of 179 Name of PDE: Uganda National Examinations Board Subject of Investigation: Printing of Certificates Background: UNEB wrote to PPDA on 17th October 2006 requesting for a waiver to procure classified material which include “question papers, plastic question paper envelopes, computerized mark sheets, computerized entry forms, result slips certificates and chemicals for the chemistry practical examinations (unknown). The Authority advised UNEB to procure certificates and result slips competitively in accordance with the thresholds provided for in PPDA Guideline 1/2003. On 19th June 2008, PPDA wrote to UNEB requesting for information about the procurement of the certificates. Findings: Recommendations: 1 Since 1973, UNEB has been procuring certificates directly from 1. The procurement should be M/s Smith & Ouzman. cancelled by the AO and an 2 PP Form 20 initiated by the Principal Examination Officer had open tendering method used in a requisition of 304,400 certificates for UCE, UACE and accordance with PPDA Reg. Business/Technical results with a cost estimated value of 106. 85,247.4 pounds (UGX 273,644,154). 2. Certifying availability of funds 3 The Deputy Secretary Finance and Accounts, Mr. F. Kiyemba, to support a procurement approved the PP Form 20 on behalf of the Accounting Officer. activity is the responsibility of The Delegation Authority Form seen indicated that Mr. F. the AO unless delegated and the Kiyemba was delegated to approve and sign contracts below Deputy Secretary Finance and 50,000,000/= but not certifying availability of funds. Accounts should desist from 4 The invitation to bid was done on telephone and there was no this responsibility. written statement inviting the bidder, M/s Smith & Ouzman Ltd 3. The Head, PDU should ensure (UK). that the procurement procedures 5 The deadline for bid submission was 9/06/2008 but M/s Smith are always followed as per the & Ouzman submitted their bid on 13th June 2008, three days PPDA Act and Regulations, after the deadline. 2003. 6 UNEB ignored the Authority’s advice to procure certificates competitively, hence used a wrong procurement method contrary to Guideline No. 1/2003 on thresholds.
Name of PDE: Bundibugyo DLG Subject of Investigation: Alleged Flouting of PPDA Regulations by the CAO on the Procurement of Guava Seedlings. Background: With the phasing out of World Food Programme from Bundibugyo District in 2006, the school feeding programme could not be sustained and this caused many children to drop out of school. As a measure, the District Council agreed to provide seedlings to schools in order to boost the school feeding programme and retain the children in schools. PPDA received a complaint from the LC V Chairman Budibugyo District about alleged flouting of PPDA Regulations by the Chief Administrative Officer on the Procurement of Guava Seedlings. Findings: Recommendations: 1 The DISO Bundibugyo had a bed of Guava Seedlings at his 1. The Head Public Service residence at the staff quarters within the Local Government should take disciplinary premises. The District Education Officer approached the DISO measures against the CAO for to supply the seedlings. He sourced the supplier and contracted abetting the flouting of the supplier without any written document. procurement procedures. 2 The DEO is the Chairman Contracts Committee. The DEO’s 2. The District Service informal award to a supplier of his choice was a gross abuse of Commission should take his position as the Head of User Department and Chairman disciplinary measures against Contracts Committee. the DEO for flouting the 3 The DISO agreed to supply the seedlings and he was procurement procedures. “contracted” on the understanding that he would partner with a 3. The Contracts Committee pre-qualified provider to ease payment. The DISO who was the should correct the anomalies in
Page 22 of 179
Page 22 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. providerDuring theis a public Financial officer Year who 2005/2006, could have theinfluenced Schools the 1.CAOThe Accountingthis procurement Officer and should ensure toFacility purchase Grant the (SFG)seedlings programme from him. funding was reduced terminatethat the the appointments supplier is paid of thefor 4 Thereand the was programme an attempt cut to off retrospectively Manafwa District. approve thefollowing only officers: the guava Drseedlings Wamasebu so far procurementTherefore due by to CAO limited requesting funds, the aboveSecretary three Contracts Gideon, supplied. Dr Okello Denis and Mr Committeecontracts were to prepare not implemented. a minute of the When Contracts the SFG Committee Mwenyi Davis from the Contracts whichprogramme was rejected was installed by the insecretary. Financial Year 2007/2008, Committee for fraudulently approving 5 Therethe above was three blatant contracts flouting we re of submitted the procurement to Manafwa rules andthe wrongful award of tender for RegulationsDistrict Contracts as the Committeeprocurement to processconsider was variations not followed, in theconstruction of classrooms at Bwirussa procurementthe contract prices. and disposal organs were not involved, and therePrimary School to New Mbale 2. wasThe Contracts no contract Committee, signed Manafwa with the District provider. approved The entireCommercial Agencies in accordance procurementindividual contract was irregular. amendments for the contracts of with Regulation 16 of the LG (PPDA) Nangalwe and Sigunga Primary Schools increasing the Regulations, 2006. total contract values by 50% of the original contracts 2. The Accounting Officer should ensure Namewithout of PDE: the National approval Social of theSecurity Authority, Fund contrary to that the members of the Contracts SubjectRegulation of Investigation: 120 (12) of Procurement the Local Government of Land at Temangalo, (PPDA) WakisoCommittee District strictly comply with the Background:Regulations,In 2006. exercise of its Regulatory function as containedexisting in Section procurement 8 (c) of laws. the PPDA Act, PPDA3. Initially, instituted each an investigation school had on attracted 27th August one 2008 bidder, into the3. purchaseThe Senior of land Assistant at Temangalo Secretary, by theMr Nationalrendering Social Security the procurement Fund. non-competitive. The Bwayo Rogers should be subjected to Findings:Interim Procurement Committee irregularly approved disciplinaryRecommendations: action for communicating 1. PPthe Form contract 20, awardsthe Procurement and disregarding Requisition the : technicalSection 59 of awardthe 1.decisions.The irregularities and evaluation report without providing sound reasons. PPDA Act states that allth procurement and disposal requirements4. The Accountingoffences Officer noted should from advise the 4. shallIn the be meeting documented held 10 prior February to the 2006, commencement the Interim of the any Contractsfindings Committee of the to investigation ensure that procurementProcurement Committeeor disposal (IPC), proceedings. Manafwa In District regard to contract the variationsconducted above by PPDA 25% ofin the procurementirregularly approved of valuation an award services, of ShsNSSF 31,164,349/= Investment Analyst to Mr.contract valuepurchase are approved of land by the at PaulM/s Yema Gimeyi Contractors raised two and (2) Suppliers. PP Forms dated The IPC 31/10/2008 as Authority. and Temangalo are grave. In 21/11/2007.stated in their minutes ignored the evaluation report 5. Manafwa accordance District beingwith Section a young 9 of 2. Regulationrecommendation 105 (1) and of approved the PPDA an Regulations award to a2003 bidder states that a the PPDA Act, PPDA Procuring and Disposing Entity shall not initiate any procurement Regulations 12 and 43(1), proceedings or activities for which funds are neither available or the competent authority, in adequate. The PP Form 20 used to initiatePage 18the ofpurchase 179 of land at this case, the Minister of Temangalo indicates that the estimated value of the procurement Finance, Planning and was Ushs. 12.99 billion and yet the amount available for this Economic Development requirement was Ushs.11bn. This indicates that funds were should take severe insufficient to undertake this purchase. disciplinary action against 3. Regulation 265 (1) of the PPDA Regulations 2003 further states the following: that no specification shall be issued with reference to a particular x The Board Members trademark, brand name, patent, design, type, specific origin, of NSSF producer, manufacturer, catalogue or numbered item. The x The Managing requisition form stated that land was to be purchased from Director of NSSF Temangalo indicating the blocks and corresponding plot numbers. x The Corporation The specifications by NSSF as stated on the requisition form were Secretary NSSF. made with reference to the Temangalo land owned by Arma Ltd. 2. The Authority further and Mr. Nzeyi which was unfair and discriminatory to other land recommends that the vendors and contravened Section 45 of the PPDA Act 2003. Investment Analyst Mr. Paul 4. Procurement Threshold: Regulation 106 (2) of the PPDA Gimeyi be disciplined in Regulations 2003 states that the choice of a procurement method accordance with the shall be on the basis of the estimated value of the requirement or applicable Staff Regulations the circumstances pertaining to the requirement. Guideline of NSSF. 1/2004 of the PPDA Regulations 2003 further states that for supplies whose threshold is above Ushs. 70m the open bidding method of procurement shall be used. The estimated value of the procurement as indicated on PP Form 20 was Ushs. 12.99 billion
Page 23 of 179 Page 23 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. Duringwhich falls the within Financial the threshold Year 2005/2006, for the open the bidding Schools method. 1. The Accounting Officer should FacilityEntity contravenedGrant (SFG) theprogramme PPDA Regulations funding was and reduced Guidelines terminate by the appointments of the andapplying the criteria programme other cut than off the Manafwa estimated District. value of following the officers: Dr Wamasebu Thereforeprocurement due to determine to limited the funds,applicable the method above of three procurement. Gideon, Dr Okello Denis and Mr 5. contractsRegulation were 339 notof the implemented. PPDA Regulations When states the SFG the conditionsMwenyi Davis from the Contracts programmeunder which was a installed deviation in fromFinancial the Year use of2007/2008, a procurement Committee or for fraudulently approving thedisposal above method three contractsor document were may submitted be permitted to Manafwa by the Authority.the wrongful award of tender for DistrictRegulation Contracts 340 (1) Committee of the PPDA to consider Regulations variations 2003 furtherin statesconstruction of classrooms at Bwirussa thethat contract an application prices. for a deviation from the use of a procurementPrimary School to New Mbale 2. Theor disposal Contracts method Committee, shall be Manafwasubmitted District to the Authority approved in writing.Commercial Agencies in accordance individualThe Authority contract did not amendments receive any such for the application contracts from of NSSF.with Regulation 16 of the LG (PPDA) 6. NangalweProcurement and Sigunga Method: PrimarySection Schools 82 (1) increasing defines the the RestrictedRegulations, 2006. totaldomestic contract bidding values method by 50%as one of where the original bids are contracts obtained by2. directThe Accounting Officer should ensure withoutinvitation the from approval a restricted of thelist Authority,without open contrary advertisement. to Inthat a the members of the Contracts Regulationletter to the120 Auditor(12) of the Genera Locall Government dated 14/08/2008, (PPDA) the NSSFCommittee strictly comply with the Regulations,Managing Director 2006. states that the restricted procurement methodexisting procurement laws. 3. Initially,was used toeach purchase school the had land. attracted This was one not the bidder, case as3. notedThe Senior Assistant Secretary, Mr renderingfrom the PP the Form procurement 20 to purchase non-competitive. land raised by The Mr. GimeyiBwayo Rogers should be subjected to Interimwhich specified Procurement the land Committee to be purchased irregularly was approved the Temangalo disciplinary action for communicating theland. contract This was awards a case of and direct disregarding procurement. the Section technical 85 (1) ofaward the decisions. evaluationPPDA Act report states without that the providing direct procurement sound reasons. method is a sole th 4. The Accounting Officer should advise 4. Insource the meeting procurement held 10method February where 2006, exceptional the Interim circumstances the Contracts Committee to ensure that Procurementprevent the use Committee of competition. (IPC), PPDA Manafwa did not find District any evidencecontract variations above 25% of the irregularlyof exceptional approved circumstances an award which of Shs required 31,164,349/= use of to the directcontract value are approved by the M/sprocurement Yema Contractors method. NSSF and contravened Suppliers. the The PPDA IPC Act as 2003Authority. by statedusing thein their direct minutes procurement ignored method the evaluation to purchase report the 5. landManafwa at District being a young recommendationTemangalo without and proper approved justifi ancation award as provided to a bidder in Clause 6 of the Fourth Schedule of the PPDA Act. 7. Prequalification: Regulation 120 (1) states that prequalification may be used under open domestic orPage open 18international of 179 bidding to obtain a shortlist of bidders using the criteria for evaluation prescribed by a Procuring and Disposing Entity. Prequalification shall be open to all providers using public advertisement of a prequalification notice which shall invite bidders to obtain the prequalification documents from a Procuring and Disposing Entity or submit an expression of interest directly to a Procuring and Disposing Entity. 8. Regulation 142 (1) states that a shortlist shall include sufficient bidders to ensure real and effective competition. Regulation 142 (3) (a) further states that where a shortlist is to be developed, a fair and equal opportunity shall be afforded to all bidders and there shall be no barrier created to deter competition. In the case of purchase of land by NSSF the following offer letters were found on file: x 15/01/2008 B.U International on behalf of Meera Nanyunja Kizza at Ushs 37m per acre x 23/01/2008 Mr. Amos Nzeyi at Ushs. 27m per acre x Ideal Homes at Ushs 40m per acre 9. The Authority notes that the Entity did not issue a prequalification notice and instead pre-qualified land sellers using the submission of an offer letter to NSSF and the fulfilment of criteria prescribed by the Management Investment Committee.
Page 24 of 179 Page 24 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 10.1. SolicitationDuring the of Financial offers: Section Year 2005/2006, 3 of the PPDA the Schools Act 2003 1. definesThe Accounting Officer should solicitationFacility Grant documents (SFG) programme as bidding funding documents was reduced or any otherterminate the appointments of the documentsand the programme inviting bidders cut tooff participate Manafwa in District. procurement following or officers: Dr Wamasebu disposalTherefore proceedings; due to limited and includes funds, documents the above inviting three potentialGideon, Dr Okello Denis and Mr bidderscontracts to pre-qualify were not implemented.and standard bidding When documents. the SFG Mwenyi Davis from the Contracts 11. Sectionprogramme 62 was (1) installed of the PPDAin Financial Act 2003Year further2007/2008, states thatCommittee a for fraudulently approving Procuringthe above and three Disposing contracts Entity were shall submitted use the to standard Manafwa documents the wrongful award of tender for providedDistrict Contracts by the AuthorityCommittee as to modelsconsider for variations drafting in solicitation construction of classrooms at Bwirussa documentsthe contract forprices. each individual procurement. The Entity did Primary not School to New Mbale 2. solicitThe Contracts for offers Committee, in accordance Manafwa with District the procedures approved provided Commercial in Agencies in accordance theindividual PPDA Act contract through amendments either publication for the of contracts an advert of or issuancewith Regulation 16 of the LG (PPDA) ofNangalwe solicitation and documents.Sigunga Primary The unSchoolssolicited increasing offers from the ‘walk-insRegulations, 2006. andtotal brokers contract exposed values by the 50% Entity of the to original all kinds contracts of offers 2. whichThe Accounting Officer should ensure includedwithout thethose approval that did ofnot themeet Authority, the criteria contrary for land torequired that by the members of the Contracts NSSF.Regulation 120 (12) of the Local Government (PPDA) Committee strictly comply with the 12 PowerRegulations, of Attorney: 2006. On 31/01/2008, Arma Ltd. appointed existing Mr. procurement laws. 3. NzeyiInitially, using each an irrevocable school had Power attracted of Attorney. one bidder, A procurement 3. The Senior Assistant Secretary, Mr requisitionrendering for the valuation procurement services non-competitive. was raised in October The 2007 Bwayoand Rogers should be subjected to listedInterim the Procurement plots to be valued; Committee it comprised irregularly of two approved plots belongingdisciplinary action for communicating tothe Arma contract Ltd and awards nine and(9) plots disregarding belonging the to technicalMr. Nzeyi. At awardthis decisions. pointevaluation the two report sellers without who providingwere acting sound independently reasons. of each other th 4. The Accounting Officer should advise 4. wereIn the merged meeting by heldNSSF 10 and Februaryvaluation 2006,services the for Interim their lands werethe Contracts Committee to ensure that recordedProcurement on one Committee (1) PP Form (IPC), which Manafwa was approved. District This meanscontract variations above 25% of the thatirregularly the Entity approved requested an awardfor a Power of Shs of 31,164,349/=Attorney from to Arma Ltd.contract value are approved by the whenM/s Yemathe lands Contractors belonging and to both Suppliers. Arma Ltd. The and IPC Mr. as Nzeyi Authority.had alreadystated in been their merged. minutes ignored the evaluation report 5. Manafwa District being a young 13. Evaluation:recommendation Section and 71 approved (3) of the an PPDA award Act to 2003 a bidder states that no evaluation criteria other than that stated in the bidding documents shall be taken into account. In the case of purchase of land for purposes of developing housing projects,Page 18 NSSF of 179 did not issue bidding documents. 14. A bid evaluation report also seen on file indicating that evaluation was conducted on 3 offers as follows: x Mebra N. Kizza - Block 436 Plot 41 Ebb.road 21km - 100 acres - 37m x Ideal Homes - LRV 3 Folio 1 Ebb. 40km - 159.4 acres - 40m x Arma Ltd.& Nzeyi - Temangalo, Wakiso 13km - 463.87 acres - 27m 15. The evaluation sheet on file indicated 463.87 acres for Arma Ltd & Amos Nzeyi was treated as responsive to the requirements of NSSF. The other two bidders who are also on the evaluation sheet were failed on grounds that their price was high. The offer from Pert properties appeared responsive to the specifications, however the seller’s land was not verified by Mr. Gimeyi for purposes of being shortlisted. In the interview held with NSSF Management on 29/09/2008, Mr. Gimeyi explained that he did not visit this land due to previous cases where he had been misled by sellers. 16. Regulation 169 (3) of the PPDA Regulations 2003 states that the number of members of an evaluation committee shall depend on the value and complexity of the procurement requirement but shall in all cases be a minimum of three. Mr. Gimeyi conducted
Page 25 of 179 Page 25 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. theDuring evaluation the Financial of the 26 Year offers. 2005/2006, Mr. Gimeyi the should Schools have realised1. The Accounting Officer should thatFacility he did Grant not (SFG)possess programme sufficient skills funding to undertakewas reduced evaluation terminate of the appointments of the theand 26 the land programme offers in the cutdatab offase and Manafwa should have District. brought itfollowing to officers: Dr Wamasebu theTherefore attention due of the to Management limited funds, Investment the above Committee three in orderGideon, Dr Okello Denis and Mr tocontracts ensure that were an notEvaluation implemented. Committee When is properly the SFG constituted Mwenyi in Davis from the Contracts accordance with the PPDA Regulations 2003. programme was installed in Financial Year 2007/2008, Committee for fraudulently approving 17. Negotiations: Regulation 220 of the PPDA Regulations 2003 the above three contracts were submitted to Manafwa provides for the procedure for negotiations which includesthe wrongful award of tender for preparationDistrict Contracts of a negotiationsCommittee to plan, consider approval variations of the in plan by construction the of classrooms at Bwirussa Contractsthe contract Committee, prices. approval of the negotiations team, recordPrimary School to New Mbale 2. ofThe negotiation Contracts meetingsCommittee, and Manafwa preparation District of a negotiationsapproved report.Commercial Agencies in accordance Regulationindividual contract220 (5) amendmentsof the PPDA forRegulations the contracts 2003 in of particularwith Regulation 16 of the LG (PPDA) statesNangalwe that negotiationsand Sigunga shall Primary be conducted Schools increasing by the negotiation the teamRegulations, 2006. whototal shall contract not valuescommit by the 50% Procuring of the and original Disposing contracts Entity 2. to anyThe Accounting Officer should ensure proposedwithout thearrangements approval or of agreements, the Authority, but shall contrary seek the to approvalthat the members of the Contracts ofRegulation the Contracts 120 (12) Committee of the Local prior Government to confirming (PPDA) any agreement Committee strictly comply with the reached.Regulations, Save 2006. for the price offer from Mr Amos Nzeyi of Ushsexisting procurement laws. 3. 27mInitially, in a letter each dated school 23/0/08 had and attracted the counter-offer one bidder, dated 7/03/08 from the Managing Director NSSF of Ushs 24m per acre, 3.thereThe is Senior Assistant Secretary, Mr rendering the procurement non-competitive. The Bwayo Rogers should be subjected to noInterim other Procurement record on file Committee of negotiations irregularly and how approved the two parties agreed on the sale price of Ushs 24m. disciplinary action for communicating 18. Valuations:the contract Regulation awards and 285 disregarding (1) states the that technical a statement award of decisions. evaluation report without providing sound reasons. requirement for the procurementth of services shall be defined4. The in Accounting Officer should advise 4. theIn theterms meeting of reference held 10or brief. February Regulation 2006, the285 Interim(2) further statesthe Contracts Committee to ensure that thatProcurement the terms Committee of reference (IPC), or brief Manafwa shall District contain a clear,contract variations above 25% of the unambiguousirregularly approved and precise an award description of Shs 31,164,349/= of the services to requiredcontract. value are approved by the RegulationM/s Yema Contractors286 (2) (a) further and Suppliers. stets that solicitationThe IPC as documents Authority. forstated services in their shall minutes specify ignored the terms the evaluation of reference report or brief5. andManafwa District being a young expectedrecommendation input of and key approved personnel an where award applicable. to a bidderPPDA noted that the valuers were not issued with the same terms of reference in regard to the plots of land to be valued. The Entity erred in relying on valuer’s quotations who had not been provided with Page 18 of 179 the same terms of reference as a basis for ascertaining the value of the Temangalo land. PPDA also noted that the three (3) valuers contracted by NSSF were not issued with solicitation documents inviting them to bid. The valuers were issued with LPOs requiring them to ascertain the value of land at Temangalo. 19. Surveyor’s report: Clause 6 of the Fourth Schedule of the PPDA Act 2003 states the conditions for use of the direct procurement method. NSSF procured the services of M/s Geomaps using the direct procurement method. The Surveyor’s Terms of Reference were to identify the land at Temangalo, conduct a search at Ministry of Lands and open up boundaries. In response M/s Geomaps recomputed the acreages for each of the plots and verified it with the acreage on the titles using Global Positioning Satellite. In their preliminary survey reports, M/s Geomaps stated that there were some plots which were still registered with other persons and that would have to be transferred prior to purchase. He also stated that Plot 12 and Plot 20 have to be sub-divided so as to allow part of the plots to remain with the registered proprietor due to the developments on these plots. It was wrong for Management to conclude the sale
Page 26 of 179
Page 26 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. withoutDuring conducting the Financial due Yeardiligence 2005/2006, to ascertain the the Schools findings 1. of Thethe Accounting Officer should Surveyor’sFacility Grant report. (SFG) programme funding was reduced terminate the appointments of the 20. Saleand Agreements the programme and transfer cut off of title: ManafwaSection District. 46 of the PPDAfollowing officers: Dr Wamasebu ActTherefore states that due all to procurements limited funds, and disposal the above shall three be conducted Gideon, Dr Okello Denis and Mr incontracts a manner were to not maximise implemented. competition When and the achieve SFG value Mwenyi for Davis from the Contracts money.programme The was Agreements installed in were Financial signed Year by 2007/2008, both NSSF and Committee Mr. for fraudulently approving Nzeyithe above on three 10/03/2008 contracts following were submitted Solicitor to General’s Manafwa clearance.the wrongful award of tender for DuringDistrict theContracts interview Committee with NSSF to consider officials variations on 29/09/2008, in construction the of classrooms at Bwirussa Entitythe contract stated prices. that transfer for three (3) titles had so far been madePrimary School to New Mbale 2. andThe theContracts remaining Committee, three (3) Manafwaare being Districtprocessed. approved It is not clearCommercial to Agencies in accordance theindividual Authority contract why the amendments transfer of for Plots the 12, contracts 16 and 20of have with not Regulation 16 of the LG (PPDA) beenNangalwe effected. and ItSigunga appears Primary that the Schools developments increasing on thethe said plotsRegulations, 2006. aretotal the contract cause for values the delay. by 50% The of Managing the original Director contracts explained 2. thatThe Accounting Officer should ensure thewithout delay the to approval transfer of was the caused Authority, by contrary a Memorandum to that of the members of the Contracts UnderstandingRegulation 120 (MoU)(12) of whichthe Local had Governmentbeen signed (PPDA)by the Entity Committeeand strictly comply with the theRegulations, seller. PPDA 2006. requested for a copy of the MoU, however existingthis procurement laws. 3. wasInitially, not submitted. each school had attracted one bidder, 3. The Senior Assistant Secretary, Mr 21. PPDArendering also thenoted procurementthe discrepancy non-competitive. in the acreage of The Plots 12,Bwayo 16 Rogers should be subjected to andInterim 20 stated Procurement on the transfer Committee forms irregularly as compared approved to the acreage disciplinary of action for communicating the same contract plots awards stated in and the disregardingSale Agreements. the technical This implies thataward decisions. thereevaluation is lack report of accuracywithout providing and it is sound not clearreasons. which is the true th 4. The Accounting Officer should advise 4. acreageIn the meetingpurchased held by NSSF. 10 February 2006, the Interim the Contracts Committee to ensure that 22. PlotsProcurement Surveyed, Committee Valued and (IPC), Bought: Manafwa PPDA noted District a variance contract in variations above 25% of the theirregularly Plots which approved were ansurveyed, award ofvalued Shs and 31,164,349/= bought as toindicated contract in value are approved by the theM/s table Yema below. Contractors In particular, and Suppliers. Plot 16 which The comprisesIPC as of Authority. the residentialstated in their house minutes was not ignored surveyed the evaluation and valued report and yet5. wasManafwa District being a young purchased.recommendation PPDA andnotes approved that NSSF an placed award a tocaveat a bidder on this plot. It was irregular for NSSF to purchase Plot 16 prior to its survey and valuation. Item Plot No Page 18 of 179 Plots Surveyed 12, 20, 21, 35, 61, 191, 11, 19 Block 301, 21 Block 301 (9 Plots) Plots Valued 12, 20,21,35, 61, 191, 11, 19 Block 301, 21 Block 301 (9 Plots) Plots Bought 12, 16, 20, 21, 35, 191, Plots not transferred 12, 16, 20 Plots not surveyed but None valued Plots not valued but None surveyed Plots not surveyed, not Plot 16 (This Plot has a residential valued but bought house and farmhouse).
23. Best Practice: The principles of transparency, competition and value for money provided in the PPDA Act 2003 and also regarded as best practices were disregarded by the NSSF in the purchase of land at Temangalo. As a Public Entity mandated by Government to provide retirement benefits to its members, the above mentioned principles should have been followed to the letter. The Management of NSSF should have ensured that potential land sellers are accorded an equal opportunity to participate and that due diligence tests are fulfilled and complied
Page 27 of 179 Page 27 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. withDuring for purposes the Financial of achieving Year 2005/2006,value for money. the Schools 1. The Accounting Officer should Facility Grant (SFG) programme funding was reduced terminate the appointments of the Nameand of PDE: the programmeIganga District cut LG off Manafwa District. following officers: Dr Wamasebu SubjectTherefore of Investigation: due to limited Pre-qualification funds, the for aboveRehabilitation three of RoadsGideon, and Spot Dr OkelloImprovement Denis and Mr Background:contracts PPDA were notreceived implemented. a complaint Whenfrom M/s the Web SFG Consortium Mwenyi Construction Davis fromand Consultancy the Contracts (U) Ltd programmeabout their dissatisfactionwas installed inwith Financial the decision Year 2007/2008,of the Chief AdministrationCommittee Officer, for fraudulently Iganga District approving LG regardingthe above prequalification three contracts for we2007/08.re submitted The complain to Manafwaant requested the for wrongful an Admi awardnistrative of Review tender with for the AccountingDistrict Contracts Officer. Committee However, tothey consider were dissatisfivariationsed in with theconstruction decision of of the classrooms Chief Administration at Bwirussa Officerthe contractand sought prices. for PPDA’s intervention. Primary School to New Mbale Findings:2. The Contracts Committee, Manafwa District approved CommercialRecommendations: Agencies in accordance 1 Inindividual the complaint contract to amendments the Authority, for the the complainant contracts of did notwith 1. RegulationThe Accounting 16 of the Officer LG (PPDA) takes specifyNangalwe the and subject Sigunga matter Primary of the Schools complaint. increasing Clarification the wasRegulations, responsibility 2006. for failing to madetotal contract later on values and by the 50% subject of the oforiginal complaint contracts was 2. pre-The Accountingaddress theOfficer mistakes should raised ensure by qualificationwithout the for approval rehabilitation of the of Authority, roads and spot contrary improvement. to that thethe members complainant of the in Bid Contracts notice 2 TheRegulation complaint 120 was (12) time of the barred Local since Government the best evaluated(PPDA) bidderCommittee No.2 strictly of 2007/08. comply He with should the noticeRegulations, was displayed2006. on 22nd August 2007 expiring on 5existingth accordinglyprocurement be laws. cautioned. 3. SeptemberInitially, each 2007 school when the had recommended attracted one ten bidder, working 3. daysThe 2. SeniorThe Accounting Assistant Secretary,Officer should Mr terminate.rendering The the complainant procurement requested non-competitive. for an administrative The Bwayo Rogersalways should ensure be that subjected the best to reviewInterim on Procurement 11/9/2007. Committee irregularly approved disciplinaryEvaluated action forBidder communicating Notice is 3 Thethe contractadministrative awards review and conduc disregardingted by the the AO technical indicated thataward decisions.issued to all the bidders in evaluation report without providing sound reasons. the Entity did not seek clarificationth from the complainant.4. HadThe Accountingaccordance Officer with shouldSection advise 85(5) 4. theyIn the done meeting so they held would 10 have February realized 2006, that the the Interimcomplaint wasthe Contractsof the CommitteeLG PPDA Regulations.to ensure that aboutProcurement prequalification Committee for reha (IPC),bilitation Manafwa and spot District improvement contract 3. The variations Accounting above Officer 25% should of the asirregularly the complainant approved clarified an award in hi ofs complaint Shs 31,164,349/= to the Authority. to contract always value are handle approved complaints by the 4 TheM/s Yemapre-qualification Contractors records and Suppliers. revealed that The the IPC complainant as Authority. lodged by bidders in appliedstated in for their three minutes areas, ignored namely; the construction evaluation report of buildings, 5. Manafwa accordance District with being Section a young 139 openingrecommendation and shaping and of approved roads and an rehabilitation award to a bidderof roads. M/s of LG PPDA Regulations. Web Consortium was pre-qualified for two areas and failed for 4. Bid documents should always rehabilitation of roads, having scored 51% of the required pass be sold at a price sufficient to mark. Page 18 of 179 cover the cost of producing the 5 The bidder raised pertinent issues in their complaint to the bid document in accordance Entity that the Accounting Officer ought to respond to. with Regulation 66(5). However, the Accounting Officer did not exhaustively address the complaints raised, for example, the complaint on road works in Iganga Town Council, opening of roads under works for Busembatia, Kigulu-Budali Primary School access road, culverts for a road from Nawampiti Sub County Via Nabikuyi Trading Centre to mention but a few. 6 Although the Accounting Officer acknowledged the mistakes in the advert and promised to clarify them, there was no evidence that such clarification was made. Ordinarily, such clarifications would be made through issue of an addendum but there was no addendum issued. 7 The Secretary Contracts Committee who was the author of the advert formed part of the committee to conduct the investigation. Another committee member handling the investigation, Mr. Aggrey Wunyi, has a court case with the complainant, M/s Web Consortium. This might have influenced the outcome of the investigation. 8 The Chief Internal Auditor, Mr. Tenywa Joseph, made false allegations against the complainant. Mr. Tenywa prepared a report relating to shoddy work on Igulusa-Budhali road
Page 28 of 179 Page 28 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. awardedDuring theto the Financial complainant, Year which 2005/2006, the complainant the Schools construed 1. The Accounting Officer should toFacility be a false Grant allegation. (SFG) programmeThe Authority funding observes was reduced that these wereterminate the appointments of the pastand works the programmeprior to the procurement cut off Manafwaunder investigation District. and thefollowing officers: Dr Wamasebu auditor’sTherefore report due to should limited not havefunds, been the used above to three evaluate theGideon, Dr Okello Denis and Mr complainant.contracts were not implemented. When the SFG Mwenyi Davis from the Contracts 9 Theprogramme Director was of M/sinstalled Web Constrin Financialuction Year could 2007/2008, have had personal Committee for fraudulently approving problemsthe above three with contracts the investigation were submitted team to appointed Manafwa by thethe wrongful award of tender for AccountingDistrict Contracts Officer Committee but there to wasconsider no evidencevariations thatin theseconstruction of classrooms at Bwirussa membersthe contract were prices. corrupted. Primary School to New Mbale 102. The Contracts Authority Committee, noted that theManafwa complainant District was approved evaluated forCommercial Agencies in accordance pre-qualificationindividual contract for amendments rehabilitation for the of contracts roads and of spotwith Regulation 16 of the LG (PPDA) improvementNangalwe and but Sigunga the award Primary deci sionSchools was increasingnot communicated the toRegulations, 2006. thetotal complainant contract values contrary by 50% to of Section the original 85 of contracts the LG PPDA2. The Accounting Officer should ensure Regulationswithout the 2006. approval This ofmisled the the Authority, complainant contrary to believe to thatthat the members of the Contracts theirRegulation bid was 120 not (12) considered. of the Local Government (PPDA) Committee strictly comply with the Regulations, 2006. existing procurement laws. 3. Initially, each school had attracted one bidder, 3. The Senior Assistant Secretary, Mr Namerendering of PDE: Ministry the procurement of Energy and non-competitive. Mineral Development The Bwayo Rogers should be subjected to SubjectInterim of Investigation: Procurement CommitteeProcurement irregularly of Petroleum approved Marker disciplinary action for communicating Background:the contractPPDA awards received and a disregarding complaint from the M/s technical Authen tix award SA regarding decisions. the way the tender was awarded.evaluation The reportfirm raised without several providing letters sound to the reasons. Accounting Officer but they did not receive any formal th 4. The Accounting Officer should advise response.4. In the The meeting complainant held 10 highlighted February specific 2006, area the s Interim of concern whichthe Contracts included Committee the procurement to ensure method that used,Procurement bidding documents, Committee evaluation (IPC), of Manafwabids, and un Districtdisclosed negotiations.contract variations The Authority above wrote 25% ofto the Accountingirregularly Officer approved of Ministry an award of ofEnergy Shs 31,164,349/=and Mineral Development to contract requesting value arethe Entity approved to avail by the th AdministrativeM/s Yema Review Contractors report andto the Suppliers. bidder with The a copy IPC to asthe AuthorityAuthority. by 11 April 2008. Findings:stated in their minutes ignored the evaluation reportRecommendations: 5. Manafwa District being a young 1 Therecommendation procurement and was approved conducted an award without to a a bidder 1. The Accounting Officer, Mr. F.A. solicitation document and without a clearly Kabagambe Kaliisa should submit an defined statement of requirements. explanation within 10 days to the Authority 2 The procurement was conducted in aPage manner 18 thatof 179 why he did not investigate the complaints did not promote transparency and fairness i.e. use raised by M/s Authentix as per the PPDA Act of a wrong procurement method, failure to and Regulations. observe bidding period, failure to publicly open 2. The Accounting Officer, Mr F.A. the bids, bid opening not witnessed by Contracts Kabagambe Kaliisa should take appropriate Committee. disciplinary action against the head of the 3 The user department usurped the functions and user department, Mr. J.B. Twodo for powers of the PDU and the Accounting Officer usurping powers of the Accounting Officer thereby undermining the independence of without delegated authority. functions and powers. 3. The Accounting Officer should take 4 The Accounting Officer did not investigate disciplinary action against the Contracts complaints raised by the bidder contrary to Committee members for their failure to Section 26(h) & (i) of the PPDA Act, No.1 of perform their functions in accordance with 2003. Section 28 of the PPDA Act, 2003, For example for not approving bidding and contract documents. 4. The Accounting Officer should ensure independence of the procurement functions in the Entity. Specifically the PDU should be empowered to carry out its duties as stipulated in the PPDA Act and Regulations. The Accounting Officer should stop heads of user departments from usurping roles of the
Page 29 of 179 Page 29 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. During the Financial Year 2005/2006, the Schools PDU.1. The Accounting Officer should Facility Grant (SFG) programme funding was reduced5. The terminate Accountant the General appointments should of take the and the programme cut off Manafwa District. appropriate following disciplinary officers: action Dr against Wamasebu the Therefore due to limited funds, the above three Head Gideon, PDU then, Dr Mr. Okello Isaac DenisKyaligonza, and Mrfor contracts were not implemented. When the SFG failureMwenyi to provide Davis technical from guidance the Contracts and for programme was installed in Financial Year 2007/2008, failureCommittee to use the for relevant fraudulently legal documents approving the above three contracts were submitted to Manafwa duringthe the procurement wrongful award process. of tender for District Contracts Committee to consider variations6. in The PDUconstruction should ensure of classrooms that the atEntity Bwirussa uses the contract prices. StandardPrimary Bidding School Documents to New with Mbale the 2. The Contracts Committee, Manafwa District approved appropriateCommercial evaluation Agencies methodology in accordance and individual contract amendments for the contracts of criteriawith for Regulation its procurements 16 of the in LG accordance (PPDA) Nangalwe and Sigunga Primary Schools increasing the with PPDARegulations, Regulations 2006. 62 and 71. total contract values by 50% of the original contracts 2. The Accounting Officer should ensure Namewithout of PDE: the Pallisa approval District of Local the Authority, Government contrary to that the members of the Contracts SubjectRegulation of Investigation: 120 (12) of Tender the Local for theGovernment Construction (PPDA) of a Matern Committeeity Ward at Kakoro strictly Health comply Centre with the Background:Regulations,M/s 2006. Ramex Furniture and Building Contractors Ltdexistingwas awarded procurement the tender laws. to construct the3. maternityInitially, ward. each The school District had Executive attracted Committee one bidder, (DEC) 3. complainedThe Senior that M/s Assistant Ramex Secretary, Furniture and Mr Buildingrendering Contractors the procurementwas carrying out non-competitive. sub standard work The and in Bwayoaddition Rogers to that, should the firm be had subjected not been to pre-qualifiedInterim Procurementto carry out such Committee works. irregularly approved disciplinary action for communicating Findings:the contract awards and disregarding the technical awardRecommendations: decisions. evaluation report without providing sound reasons. 1 The Authority observed th that the pre-qualification document4. The1. AccountingThe Head Officer of should PDU, advise Mr. 4. usedIn the was meeting not the heldstandard 10 document February issued 2006, by the PPDA. Interim the ContractsHibbombo Committee Kainan to shouldensure that be 2 M/sProcurement Ramex Furniture Committee and (IPC), Building Manafwa Contractors District and M/s contractdisciplined variations for above not supporting 25% of the Nankomairregularly approved General an Enterprises award of Shs Ltd 31,164,349/= applied for to pre- contractfunctioning value are of approved the Contracts by the qualification,M/s Yema Contractors were evaluated and Suppliers. and as The a IPC result as were Authority.Committee, as required of him recommendedstated in their minutes for pre-qualification ignored the evaluation by the report Evaluation 5. Manafwaunder Districtthe PPDA being Law. a young Committee.recommendation and approved an award to a bidder 2. As the appointed contract 3 M/s Ramex Furniture and Building Contractors and M/s manager, the District Engineer, Nankoma General Enterprises Ltd were omitted when the list Mr. Ronald Mukombe is held of successful and unsuccessful firmsPage was 18reproduced of 179 as part accountable for the progress of the Contracts Committee minutes. Consequently, a Public reports and the recommendations Notice dated 8th August 2007 was put up on the notice board. there from. He should continue The notice did not include the names of the two firms. to undertake contract 4 A company called M/s Ramex Construction and Furniture management and intensify Mart Ltd wrote to the CAO, Pallisa DLG requesting for supervision of all project sites information as to why their firm had been omitted from the and in accordance with list of pre-qualified firms. Mr. Aramazan Wabuko, a Director Regulation 26 (7) prepare reports clarified that M/s Ramex Furniture and Building Contractors on any departure from the terms and M/s Ramex Construction and Furniture Mart Ltd was the and conditions of the contract to same company. the Accounting officer with a 5 The Authority noted that the District took 5 months to copy to the PDU. respond to the two firms, more so that M/s Ramex Furniture 3. The PDU should ensure that and Building Contractors, which had written to the Entity on submissions are made to a 10th August 2007. On 25th January 2008, the Contracts Contracts Committee on time Committee approved the inclusion of M/s Ramex and in correct manner as required Construction and Furniture Mart Ltd and M/s Nankoma under Regulation 25 (3) (b). General Enterprises on the pre-qualification list. A revised 4. The District should always use pre-qualification was approved by the CC. Therefore, the the standard PPDA bidding contract for construction of a maternity ward at Kakoro documents as required under Health Centre was correctly awarded to M/s Ramex Furniture Regulation 48. and Building Contractors. 6 M/s Ramex Furniture and Building Contractors Ltd at Kakoro
Page 30 of 179 Page 30 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. HCDuring III had the deviated Financial from Year the scope 2005/2006, of works; the however, Schools given1. The Accounting Officer should thatFacility the projectGrant (SFG) was still programme on-going, funding these were was deviationsreduced that terminate the appointments of the couldand thebe rectified programme by the cutcontractor off Manafwaand the work District. done could following officers: Dr Wamasebu notTherefore currently due be categorized to limited as funds, shoddy. the above three Gideon, Dr Okello Denis and Mr 7 Thecontracts contract were between not implemented. M/s Ramex Furniture When the and SFG Building Mwenyi Davis from the Contracts Contractorsprogramme was Ltd installed and Pallisa in Financial DLG Year was 2007/2008, signed by Mr. Committee for fraudulently approving Mukwanathe above three Wekhola contracts Koloto we re on submitted behalf ofto Manafwa the company. the wrongful award of tender for RecordsDistrict Contractsretrieved fromCommittee the Registry to consider of companies variations show in that construction of classrooms at Bwirussa Mr.the contractKoloto prices.is not a director of the Company. The Authority Primary School to New Mbale 2. observedThe Contracts that the Committee, District erred Manafwa and did District not request approved bidders to Commercial Agencies in accordance submitindividual powers contract of Attorney. amendments The for Powers the contracts of Attorney of are with Regulation 16 of the LG (PPDA) importantNangalwe inand ensuring Sigunga that Primary the person Schools signing increasing the contract the has Regulations, 2006. contractualtotal contract powers values to bybind 50% the Company. of the original contracts 2. The Accounting Officer should ensure without the approval of the Authority, contrary to that the members of the Contracts Regulation 120 (12) of the Local Government (PPDA) Committee strictly comply with the NameRegulations, of PDE: Sironko 2006. District existing procurement laws. Subject3. Initially, of Investigation: each school Collection had attracted of Revenue one from bidder, Buteza 3.MarketThe Senior Assistant Secretary, Mr Background:rendering PPDA the procurementreceived a Complaint non-competitive. from M/s Bumu The GeneralBwayo Stores Rogers about shouldthe Mismanagement be subjected of to the ProcurementInterim Procurement Process of Committee Buteza Market irregularly in Sironko approved District disciplinary action for communicating Findings:the contract awards and disregarding the technical Recommendations:award decisions. 1. Theevaluation Entity report erred without by issuing providing an addendum sound reasons. extending the x th 4. TheThe Accounting procurement Officer for the should collection advise of 4. dateIn the for meeting submission held of 10 bids February on the day 2006, supposed the Interim to the therevenue Contracts for Committee Buteza to Marketensure that in deadlineProcurement for submission Committee of (IPC),bids. Bidders Manafwa were District informed contractSironko variations District above should 25% be of the re- aboutirregularly the extension approved while an award waiting of for Shs bid 31,164,349/= opening. to contracttendered value immediately. are approved by the 2. AtM/s the Yema time Contractors of issuing the and addendum, Suppliers. two The bidders IPC as had x Authority.The PDU should be disciplined by submittedstated in their their minutes bids for ignored Buteza the market, evaluation that report is, M/s 5. Manafwathe AO for District issuing being an addendum a young on Mabberirecommendation Robert and and M/s approved Bumu General an award Stores. to a bidder the day supposed to be the deadline 3. Only one bidder, M/s Wokanyasi Stephen, picked the for submission of bids. solicitation document after the extension of the bid x The Evaluation Committee should be period. Page 18 of 179 disciplined by AO for not following 4. The Evaluation Committee did not follow the evaluation the evaluation criteria stated in the criteria states in the bid document. All the three (3) bids SBD. were not responsive both at preliminary and technical x The Evaluation Committee should stage but were passed by the Evaluation Committee. always sign the ethical code of There was no evidence to show that some areas of the conduct. evaluation were waived. x The AO should not award tenders 5. The Evaluation Committee wrongly recommended M/s before the expiry of the best Wokanyasi Stephen for the award of tender. evaluated bidder notice. 6. Communication of award was made by the AO before the x Signing of the contracts is the role of expiry date of the Best Evaluated Bidder Notice. the Accounting Officer and not the 7. The District defied PPDA’s request to halt the user department, in this particular procurement process until investigations are completed case, the sub-county chiefs. but went ahead and awarded the tender for the x The PDU should ensure that record management of Buteza Market. keeping is in accordance with Regulation 46 of the Local Government PPDA Regulations 2006.
Name of PDE: Hoima District
Page 31 of 179 Page 31 of 179 HC III had deviated from the scope of works; however, given that the project was still on-going, these were deviations that could be rectified by the contractor and the work done could not currently be categorized as shoddy. 7 The contract between M/s Ramex Furniture and Building Contractors Ltd and Pallisa DLG was signed by Mr. Mukwana Wekhola Koloto on behalf of the company. Records retrieved from the Registry of companies show that Mr. Koloto is not a director of the Company. The Authority observed that the District erred and did not request bidders to submit powers of Attorney. The Powers of Attorney are important in ensuring that the person signing the contract has contractual powers to bind the Company.
Name of PDE: Sironko District Subject of Investigation: Collection of Revenue from Buteza Market Background: PPDA received a Complaint from M/s Bumu General Stores about the Mismanagement of the Procurement Process of Buteza Market in Sironko District Findings: Recommendations: 1. The Entity erred by issuing an addendum extending the x The procurement for the collection of date for submission of bids on the day supposed to the revenue for Buteza Market in deadline for submission of bids. Bidders were informed Sironko District should be re- about the extension while waiting for bid opening. tendered immediately. 2. At the time of issuing the addendum, two bidders had x The PDU should be disciplined by submitted their bids for Buteza market, that is, M/s the AO for issuing an addendum on Mabberi Robert and M/s Bumu General Stores. the day supposed to be the deadline 3. Only one bidder, M/s Wokanyasi Stephen, picked the for submission of bids. solicitation document after the extension of the bid x The Evaluation Committee should be period. disciplined by AO for not following 4. The Evaluation Committee did not follow the evaluation the evaluation criteria stated in the criteria states in the bid document. All the three (3) bids SBD. were not responsive both at preliminary and technical x The Evaluation Committee should stage but were passed by the Evaluation Committee. always sign the ethical code of There was no evidence to show that some areas of the conduct. evaluation were waived. x The AO should not award tenders 5. The Evaluation Committee wrongly recommended M/s before the expiry of the best Wokanyasi Stephen for the award of tender. evaluated bidder notice. 6. Communication of award was made by the AO before the x Signing of the contracts is the role of expiry date of the Best Evaluated Bidder Notice. the Accounting Officer and not the 7. The District defied PPDA’s request to halt the user department, in this particular procurement process until investigations are completed case, the sub-county chiefs. but went ahead and awarded the tender for the x The PDU should ensure that record management of Buteza Market. keeping is in accordance with Regulation 46 of the Local Government PPDA Regulations 2006.
Name of PDE: Hoima District Subject of Investigation: Collection of Revenue from Buhuka Market in Kyangwali Sub-County. Background: PPDA received a Complaint from M/s John Byaruhanga about the Mismanagement of the Procurement Process of Buhuka Market in Hoima District. Page 31 of 179 Findings: Recommendations: 1 Although the complainant alleged that Amina Birungi, x The suspension of the procurement one of the bidders tendering for revenue collection at process should be lifted. The AO was Buhuka market, was fronted by Mr. Bagonza Sephi, an advised to proceed with the LC III Councillor, there was no evidence to prove this procurement process. allegation. x Upon concluding the evaluation and 2 According to the Chairperson of the Evaluation award process, the Accounting Committee, Ms. Evelyn Businge, and Head of PDU, Mr. Officer should submit to the Chris Byaruhanga, the allegations of influence peddling Authority, the evaluation report and were based on rumours. The complainant failed to the Contracts Committee minutes substantiate the allegations during an interview. awarding the tender for Buhuka 3 There was no evidence that Mr. Mugema Anthony, also a market to the successful bidder. bidder, was fronted by Mr. Bagonza Sephi under cover. Mr. Mugema Anthony submitted the bid in his own right. 4 By the time of investigation, no award had been made. The procurement process was stopped at evaluation stage following PPDA intervention.
Name of PDE: Bududa District Local Government Subject of Investigation: Construction the District Water Office Background: PPDA received an anonymous complaint concerning the construction of the District Water Office for Bududa District Local Government. The complaint alleged that the contract for construction of the District Water Office for Bududa District was inflated to Ushs 130,000,000/= and yet a similar office with the same plan in Amuria District costed Ushs 75,000,000/=. Findings: Recommendations: 1 The procurement of the contractor for construction of Bududa x The Accounting Officer should District Water Office went through a competitive bidding ensure that the contract is process although the Entity used a wrong procurement amended through the Contracts method contrary to Regulation 33(3) of the Local Committee to the corrected Governments (PPDA) Regulations of 2006. The Entity original figure of Ushs should have used open bidding method because the estimated 133,395,810/=. value of the procurement was above the threshold for x The Accounting Officer should selective bidding. take appropriate disciplinary 2 There were several irregularities and deviations from the action against the members of Local Governments (PPDA) Regulations, 2006, for example: Bududa District Contracts i. There was no evidence on file that the procurement Committee namely Mary method was approved by the Contracts Committee; Wamimbi, Wakooli Beatrice, ii. There was no evidence on file that the procurement Wabuna Richard, Masaba Y. requirements were documented using a requisition; Kutosi and Wadada Simon. iii. The deadline for submission of bids was extended from x The Accounting Officer should th nd 13 February 2007 to 2 March 2007 without approval ensure that right procedures of by the Contracts Committee; procurement initiation and iv. There was no record on file showing that the bid confirmation of funding are done documents and procurement notice were approved by the for all procurements in the Entity contracts committee; in accordance to Regulation 65 v. There is no evidence on file that the membership of the of the Local Governments evaluation committee was recommended by the PDU and (PPDA) Regulations, 2006. approved by the Contracts Committee;
Page 32 of 179 Page 32 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. vi.DuringThe Entity the Financial did not display Year 2005/2006,the notice of thethe best Schools evaluated 1. Thex The Accounting Head PDU Officer should shouldensure Facilitybidder; Grant (SFG) programme funding was reduced terminatethat the the appointments correct evaluation of the vii.and The the CC programme minutes referred cut to off for Manafwaapproval of District. the award of followingprocedures officers: are followedDr Wamasebu in all ThereforeUshs 133,395,810/= due to limited were funds, not signed the by above any member three of Gideon,procurements Dr Okello in Denis the Entity and Mr in contractsthe Contracts were notCommittee implemented. thus rendering When them the invalid; SFG Mwenyiaccordance Davis from with Regulation the Contracts 72 viii.programmeThe Authority was installed noted in with Financial concern Year that 2007/2008, the Accounting Committeeof the for fraudulently Local Governments approving the aboveOfficer three took contracts along time were to submitted communicate to Manafwa the award the wrongful(PPDA) Regulations, award of 2006. tender for Districtdecision Contracts to the Committeesuccessful bidder.to consider variations in constructionx The Head of classrooms PDU should at Bwirussa ensure 3 Thethe contract Entity requestedprices. for submission of a bid security of 2% Primarythat School the public to notice New of Mbale best 2. ofThe the Contracts bid price, Committee, this contrary Manafwa to Regulations District approved50(2) of Local Commercialevaluated Agencies bidder in accordance for any Governments(PPDA)individual contract amendments Regulations, for 2006 the which contracts requires of that with Regulationprocurement 16 of is the displayed LG (PPDA) in valueNangalwe of the and security Sigunga shall Primary be a fixed Schools amount increasing not a percentage the Regulations,accordance 2006. to Regulation 85 of oftotal the contract bid price. values by 50% of the original contracts 2. The Accountingthe Local GovernmentsOfficer should (PPDA) ensure 4 Bududawithout Districtthe approval Contracts of the Committee Authority, fraudulently contrary to revised that theRegulations, members 2006. of the He Contracts should andRegulation approved 120 the (12) contract of the fromLocal Ushs Government 133,395,810/= (PPDA) to Ushs Committeealso ensure strictly that comply minutes with of the 139,986,509/=Regulations, 2006. causing a financial loss of Ush 6,590,699/= to existingContracts procurement Committee laws. are always 3. Government.Initially, each Under school the Minute had attracted 4: CC/BDDA/06/06/07 one bidder, 3. the The Seniorsigned. Assistant Secretary, Mr CCrendering changed the the procurementcontract sum stating non-competitive. that it was very The clear Bwayo Rogers should be subjected to thatInterim the bidder Procurement had under Committee quoted on irregularly one item approvedof iron sheets. disciplinary action for communicating Thisthe contract decision awards translates and into disregarding a financial the technical loss of Ushs award decisions. 6,590,699/=evaluation report to Government. without providing sound reasons. th 4. The Accounting Officer should advise 4. In the meeting held 10 February 2006, the Interim the Contracts Committee to ensure that Procurement Committee (IPC), Manafwa District contract variations above 25% of the Nameirregularly of PDE: approvedBudaka District an award of Shs 31,164,349/= to contract value are approved by the SubjectM/s of Yema Investigation: Contractors Collection and Suppliers. of Revenue The from IPC Utilities as at KamonkoliAuthority. Taxi/Bus Park Background:stated in theirThe minutes Authority ignored received the a evaluation complaint report from M/s5. Manafwa Kagwa Lino District Isiko, being a bidder, a young citing irregularitiesrecommendation in the procurement and approved process an award of renting to a of bidder utilities at Kamonkoli Taxi Park for the financial year 2008/09. Findings: Recommendations: Page 18 of 179 1 M/s Kagwa Lino Isiko was illegally collecting revenue from x The AO should discipline the utilities at the Taxi/Park bus after their contract expired on sub-county chief, Kamonkoli 30th June 2008. The contract for M/s Kagwa Lino Isiko was sub-county, for allowing M/s not extended during the period when Budaka District was Kagwa Lino to operate the Taxi procuring a new provider for FY 2008/09 and operating in the Park on an invalid contract. taxi park illegally while the procurement process for FY x The Evaluation Committee 2008/09 was still on-going. The new bidder was awarded the should be disciplined for not th tender on 29 July 2008. following the evaluation criteria 2 The addendum issued for this tender was not dated and the specified in the bid document Authority could not ascertain whether it was issued in and for recommending award of accordance with Reg. 67(5) of the PPDA LG Regulations tender at the reserve price of 2006. 100,000/= instead of 120,000/= 3 M/s Kagwa Lino Isiko, the complainant, failed preliminary quoted by the bidder in the bid evaluation but the Evaluation Committee passed the firm onto document, thus causing a the next stage (technical) contrary to Reg. 77 (4) of the PPDA financial loss to the District of LG Regulations 2006. 20,000/= per week. 4 The Evaluation Committee did not follow the evaluation x The previous AO, Mr. Businge criteria specified in the bid document. S.T. Amooti should be 5 The tender was awarded at the reserve price instead of the bid disciplined for communicating price quoted by the bidder in their bid document causing a award before the expiry of financial loss to the District. display period for the best 6 The AO communicated the award of tender for the utilities at evaluated bidder notice.
Page 33 of 179 Page 33 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. KamonkoliDuring the Taxi Financial Park before Year the 2005/2006, expiry of thedisplay Schools period 1.for Thex The Accounting current AO Officer should should be theFacility best evaluatedGrant (SFG) bidder programme notice. funding was reduced terminatecautioned the appointments for failure to comply of the 7 Theand AO the defied programme the instructions cut off from Manafwa the Authority District. to halt the followingwith officers: the instructions Dr Wamasebu of the procurementTherefore due process to limited until investigation funds, the intoabove the three matter is Gideon,PPDA Dr to Okello halt the Denis procurement and Mr completecontracts but were went not ahead implemented. to award the When tender the to M/s SFG Kamo Mwenyiprocess. Davis from the Contracts Investmentprogramme (U)was Ltd. installed in Financial Year 2007/2008, Committee for fraudulently approving the above three contracts were submitted to Manafwa the wrongful award of tender for District Contracts Committee to consider variations in construction of classrooms at Bwirussa the contract prices. Primary School to New Mbale Name2. The of Contracts PDE: National Committee, Medical Manafwa Stores District approved Commercial Agencies in accordance Subjectindividual of Investigation: contract amendments Complaint on for Procurement the contracts of Medi of cal Sundrieswith Regulation and Pharmaceuticals 16 of the LG (PPDA) Background:Nangalwe PPDAand Sigunga received Primary a complaint Schools from increasing M/s Surgipharm the Regulations, Uganda Limited 2006. on 22/8/2008 citing irregularitiestotal contract in the values procurement. by 50% of M/s the Surgipharm original contracts Uganda Limited2. The wasAccounting the best Officer evaluated should bidder ensure for Amoxicillinwithout thebut thisapproval item ofwas the excluded Authority, from contrary the lis t to of itemsthat to be the purchased members after of the evaluation Contracts in preferenceRegulation for 120 a local (12) manufacturof the Localer, Government M/s Rene Industries(PPDA) Ltd.Committee Also the quantities strictly comply awarded with to M/s the SurgipharmRegulations, under 2006. water for injection were reduced compared existing to what procurement had been advertisedlaws. in the newspapers3. Initially, by each NMS. school NMS had used attracted restrictive one biddi bidder,ng to 3. inviteThe firms Senior to Assistant supply similar Secretary, medical Mr sundries/pharmaceuticalsrendering the procurement when another non-competitive. procurement conducted The usingBwayo open Rogers bidding should was still be on-going. subjected to Findings:Interim Procurement Committee irregularly approved disciplinaryRecommendations: action for communicating 1. Thethe removal contract of awards some products and disregarding from the procurement the technical process awardx Thedecisions. General Manager was to evaluation report without providing sound reasons. in preference of procuringth them from local manufacturers and4. The Accountingdiscipline Officer the should Contracts advise 4. reductionIn the meeting in the quantities held 10 of February awarded 2006, supplies the were Interim not done the ContractsCommittee Committee for mismanaging to ensure that the inProcurement a transparent Committee manner. National (IPC), Manafwa Medical Stores District did not contractprocurement variations process above 25%of supply of the of informirregularly M/s approvedSurgipharm an (U) award Ltd of that Shs the 31,164,349/= quantities for to water contractpharmaceuticals value are approved and medical by the forM/s injection Yema Contractorshad been reduced and Suppliers. to 4 months The yet Surgipharm’s IPC as Authority.sundries. bidstated was in for their 24 minutes months. ignored This was the contrary evaluation to Reg. report 134 5. and Manafwax The GeneralDistrict Manager being a was young to 148recommendation of the PPDA Act and & approved Reg., 2003. an award to a bidder caution the Evaluation 2. NMS further breached the SBD issued to bidders by Committee for the following decreasing the quantities indicated in the statement of reasons: requirement. ITB 41.1 stated: “ThePage percentage 18 of 179 of which o For unfairly failing Marvid quantities may be increased is NONE”; “The percentage of Pharmaceuticals and which quantities may be decreased is NONE”. Therefore, the Medipharm Sales in the decrease in quantities of water for injection from 8,800,000 to second procurement which 1,040,000 was breach of bidding requirements. involved local 3. M/s Surgipharm was unfairly treated by NMS because the manufacturers; Entity did not endeavor to negotiate with the firm on the o For passing Rene added requirement of embossment of Amoxicillin. Industries Ltd on 10 4. PPDA authorized NMS to procure drugs using the providers products worth U$ on the NDA list, therefore preference to procure drugs from 5,041,072 that were none local manufacturers by NMS as priority, was a new criteria compliant on shelf life of and a deviation that was not approved by the Authority. three years as was required 5. The procurement that targeted only the local manufacturers in the specifications in the was against PPDA Act basic procurement principles since bid document. there was no legal provision on preference to local providers. 3. The framework contract 6. NMS went ahead to award the procurement (Ref: arrangement was to be NMS/SUPLS/07-08/01001/02- under open bidding) to the terminated by the General best evaluated bidders after the expiry of the bid validity Manager and a more transparent, period of 120 working days – ITB ITB 20.1. The Authority non- discriminatory and an open noted that NMS’s award was invalid and only two firms, bidding competitive process was Gittoes Pharmaceuticals and Sino Africa, accepted the award. to be commenced upon 7. The CC failed in its supervisory role and mismanaged the immediately for the procurement first procurement process Ref: NMS/SUPLS/07-08/01001/02, of pharmaceutical products.
Page 34 of 179 Page 34 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. whereDuring a thenew Financialprocurement Year Ref. 2005/2006, NMS/SUPLS/07-08/02001/14 the Schools 1. The4. National Accounting Medical Officer Stores should withFacility similar Grant products (SFG) wasprogramme initiated funding without wascancellation reduced of the terminateapply the to PPDA appointments for guidance of the on firstand procurement. the programme cut off Manafwa District. followingthe preference officers: scheme Dr Wamasebu for local 8. ThereTherefore were due serious to limited flaws in funds, the evaluation the above process three of the Gideon,manufacturers. Dr Okello Denis and Mr secondcontracts procurement were not implemented. Ref. NMS/SUPLS/07-08/02001/14 When the SFG of Mwenyi Davis from the Contracts Pharmaceuticalprogramme was Products installed fromin Financial the Local Year Manufacturers; 2007/2008, as a Committee for fraudulently approving resultthe above Rene three Industries contracts was weunfairlyre submitted awarded to whereas Manafwa Marvid the wrongful award of tender for PharmaceuticalsDistrict Contracts and Committee Medipharm to considerSales were variations unfairly in failed. construction of classrooms at Bwirussa Thethe contract two firms prices. that were awarded were passed at the Primary School to New Mbale 2. evaluationThe Contracts stage Committee, and yet were Manafwa not compliant District i.e.: approved Commercial Agencies in accordance 9. KPIindividual was passed contract when amendments they did not forhave the a valid contracts NDA oflicense. with Regulation 16 of the LG (PPDA) NDANangalwe license and Sigunga number Primary 54802 Schools to operate increasing large the scale Regulations, 2006. pharmaceuticaltotal contract values manufacturing by 50% of the business original contracts expired 2. on The Accounting Officer should ensure th 17/12/2007,without the thoughapproval a of letter the Authority,dated 5 March contrary 2008 to not that the members of the Contracts specificallyRegulation 120addressed (12) of for the this Local tender Government was issued (PPDA) by NDA that Committee strictly comply with the theirRegulations, license 2006. is being processed. This requirement was not existing procurement laws. 3. evaluated.Initially, each school had attracted one bidder, 3. The Senior Assistant Secretary, Mr 10. Renerendering Industries the did procurement not comply with non-competitive. the requirement The of three Bwayo Rogers should be subjected to yearsInterim shelf Procurement life instead Committee offered 2 years irregularly for 10 products approved out of disciplinary action for communicating the 12 contract awarded awards products. and The disregarding non - compliant the products technical worth award decisions. U$evaluation 5,041,072 report (90% without of the providing value) were sound Diclofenac reasons. Sodium, th 4. The Accounting Officer should advise 4. Ibuprofen,In the meeting Actylsalicylic held 10 February acid, Albendazole, 2006, the Interim Amoxicillin, the Contracts Committee to ensure that Cloxacillin,Procurement Erythromycin, Committee (IPC), Floric Manafwa acid, Griseofulvin, District and contract variations above 25% of the Ketaconazole.irregularly approved an award of Shs 31,164,349/= to contract value are approved by the 11. MarvidM/s Yema Pharmaceuticals Contractors andwas Suppliers.failed on valid The trading IPC as license Authority. whenstated one in theirwas provided minutes and ignored they had the bidded evaluation for two report products 5. Manafwa District being a young chlorhexidinerecommendation gluconate and approved and Benzyl an award Benzoate to a valued bidder at Shs 411,744,000 which were never awarded to any one. Medipharm which was failed on bid validity period after clarification had bidded for one Page item, 18 oral of 179 dehydration, valued at Shs 557,794,150 which was not awarded to anyone.
Name of PDE: East African Civil Aviation Academy, Soroti under Ministry of Works & Transport Subject of Investigation: Procurement of Avgas and a Tanker Background: The Daily Monitor ran a story “Fuel tanker abandoned in Soroti after a botched procurement deal” on 16th October 2008. According to this story, the tanker contained 25,000 litres of aviation fuel and was purchased by Mr. Silver Kaija, Ag. Director of the Academy, without the knowledge of the school’s Contract Committee. Findings: Recommendations: 1. The Authority established that the procurement process of 23,000 1. The Accounting Officer was litres of Avgas fuel and tanker by the Academy was a mis- to take disciplinary action procurement since this was not on the procurement plan. against Mr. Silver Kaija who 2. There was no initiation of procurement requirements and handled the procurement. confirmation of funding contrary to Reg.104. 2. The Accounting Officer was 3. The Ag. Director Mr. Silver Kaija usurped all the function and to submit records of M/s PK roles of the procurement structures when he issued the LPO to Pierre Kairanga to the M/s PK Pierre Kairanga without proper procedures and was Criminal Investigation therefore held responsible for the mis- procurement. Department to ascertain the 4. The LPO had the following anomalies: legal status of the company a. The LPO was not on the standard LPO used by the and authenticity of all academy individuals concerned.
Page 35 of 179 Page 35 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. Duringb. There the Financial was no agreedYear 2005/2006, cost of the the total Schools product 1. or unitThe 3. AccountingThe Entity Officer through should the Facility costs,Grant (SFG) programme funding was reduced terminate Procurement the appointments Officer of should the andc. theDelivery programme dates where cut not off stated. Manafwa District. following expedite officers: the Dr Board Wamasebu decision Therefored. This due was to a blanket limited order funds, issued the to above the supplier three withoutGideon, Drto Okello look for Denis alternative and Mr contractsany were terms not and implemented.conditions of the When supply. the SFG Mwenyi suppliers Davis from of the Avgas Contracts after programmee. All thewas above installed are incontrary Financial to Reg.Year 1342007/2008, (2) of the PPDACommittee developing for fraudulently a approving clear the aboveRegulations three contracts 2003. were submitted to Manafwa the wrongfulspecification award of and tender bidding for 5. M/sDistrict PK Contracts Pierre Kairanga Committee in accordanceto consider tovariations the PPDA in Act construction and document of classrooms as recommended at Bwirussa Regulationsthe contract prices. was not eligible to conduct business with Primary the by School the Authority. to New Mbale 2. AcademyThe Contracts on this Committee, procurement Manafwa as he had District not fulfilled approved all the legalCommercial 4. The Agencies procurement in accordance process of requirementsindividual contract as indicated amendments here below: for the contracts of with RegulationAvgas 16 from of Shellthe LG should (PPDA) be Nangalwei. The and Academy Sigunga could Primary not establishSchools increasing the physical the address Regulations, of streamlined 2006. to go through the total contractthe supplier values as by they 50% were of the only original contacted contracts by email2. The or AccountingPDU and Officer CC approval.should ensure The withouttelephone the approval of the Authority, contrary to that the Entity members is advised of the to Contractsenter into Regulationii. No indication 120 (12) thatof the the Local Mr. Government Kairanga was (PPDA) registered toCommittee do a strictlyframework comply contract with with the Regulations,business 2006. in Uganda existing procurementthe suppliers laws. so as to 3. Initially,iii. Supplier each did school not present had Powersattracted of one Attorney, bidder, Authorizing 3. The Seniorsafeguard Assistant the interests Secretary, of the Mr renderingMr. Pierre the procurement Kairanga to handle non-competitive. business on behalfThe of Bwayo DG RogersAcademy. should be subjected to InterimInternational Procurement Inc. Committee irregularly approved disciplinary action for communicating theiv. contractLack of awardsAuthority and for disregardingDG International the to technical deal in Petroleum award decisions. evaluationproducts. report without providing sound reasons. th 4. The Accounting Officer should advise 6.4. TheIn the Entity meeting did not held provide 10 specifica Februarytions 2006, to the the supplier; Interim thereforethe Contracts Committee to ensure that toProcurement ascertain the Committee quality of the (IPC), Avgas Manafwaprocured, there District was needcontract for variations above 25% of the verificationirregularly approvedof the fuel an through award ofa sample Shs 31,164,349/= and obtaining to authenticcontract value are approved by the documentsM/s Yema and Contractors details from and Suppliers.the suppliers The in the IPC USA. as It wasAuthority. establishedstated in their that minutesMr. Silver ignored Kaija had the evaluationcommitted the report Academy 5. Manafwa to District being a young purchaserecommendation Avgas worth and approvedUSD$ 46,000. an award00 when to athe bidder quality has not been ascertained. 7. The Authority contacted Mr. P.K Pierre Kairanga on the telephone for an interview. HoweverPage due 18to theof 179language barrier he only communicated in Swahili and French so we did not have a fruitful discussion on the company status. PPDA inquired if he had an office but we were informed that he was staying in Mambo Hotel in Ndeeba and did not have any offices for operation as they were only in Uganda awaiting payments from the Academy. 8. The Authority therefore established that all procurement procedures related to the acquisition of 23,000litres of Avgas and a tanker in accordance to the Public Procurement and Disposal of Public Assets Act and Regulations 2003 were flouted.
Name of PDE: Jinja Municipal Council Subject of Investigation: Irregularities in the Procurement Process of Jinja Central Market/Evening Background: The complainant, M/s Crown Merchantile Limited and current contractor, were dissatisfied with the award decision of Jinja Municipal Council. They sought for an administrative review with JMC which was also later contested and they wrote to the Inspectorate of Government (IGG) requesting for an investigation. PPDA received the complaint from the IGG. Findings: Recommendations: 1. The firm awarded the tender to collect revenue from Jinja Central x Jinja Municipal Council Market/evening, M/s BBK General Construction Ltd did not have re-evaluates the bids for the two years’ experience stated in the bid document. The firm Jinja Central
Page 36 of 179 Page 36 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. whichDuring submitted the Financial the bid Year was 2005/2006, M/s BBK General the Schools Construction 1. The Ltd AccountingMarket/Evening. Officer should andFacility NOT Grant M/s (SFG) BBK programme General Construction. funding was Whereasreduced M/s terminate BBK x theThe appointmentsAO was to caution of the Generaland the Construction programme had cut the off required Manafwa experience, District. M/s following BBK Registry officers: for Dr usurping Wamasebu the GeneralTherefore Construction due to limited Ltd did funds, not have the theabove two-year three experienceGideon, Drroles Okello of the Denis PDU. and Mr required.contracts There were was not no implemented. linkage of M/s When BBK General the SFG Construction Mwenyi x DavisThe Evaluation from the Committee Contracts toprogramme M/s BBK was General installed Construction in Financial Ltd Year since 2007/2008, M/s BBK GeneralCommittee forwas fraudulently to be disciplined approving for Constructionthe above three is a contractsbusiness name were and submitted the latter to is Manafwa a company. the wrongfultheir award failure ofto interpret tender the for 2. TheDistrict Evaluation Contracts Committee Committee failed to considerto interpret variations the evaluation in criteriaconstruction evaluation of classrooms criteria at Bwirussa and andthe contractthere was prices. no effort by the members to seek guidance fromPrimary the Schoolaward wrongto New marks Mbale to 2. CC.The ForContracts this reason, Committee, the EC Manafwaawarded wrong District marks approved to the bidders.Commercial bidders. Agencies in accordance 3. Asindividual per the contract bid notice amendments that appeared for the in contracts the New of Visionwith of Regulation x The 16 bid of document the LG (PPDA) should 07/08/2008,Nangalwe and the Sigunga tender Primary documents Schools were increasing picked from the the GeneralRegulations, have 2006. an appropriate Officetotal contract (Registry) values and bynot 50% PDU. of This the originalresulted contractsinto a breach 2. ofThe law Accounting evaluation Officer should methodology ensure bywithout allowing the bids approval to be issued of the and Authority, receipted contrary by the Registry to andthat in the membersand evaluation of the criteria Contracts to theRegulation process several120 (12) mistakes of the Local were madeGovernment in the recording (PPDA) of bids.Committee compare strictly comply and evaluate with the 4. TheRegulations, CC retrospectively 2006. approved the evaluation report for revenueexisting procurementbid in accordancelaws. with 3. sourcesInitially, in each Jinja MC. school The had approval attracted of the one evaluation bidder, report3. The was Senior Reg. Assistant 48 (4) Secretary, of the PPDA Mr maderendering after the display procurement of the best non-competitive. evaluated bidder The notice. Bwayo This RogersLG Reg. should 2006. be subjected to contravenedInterim Procurement Reg. 85 of Committee the PPDA LG irregularly Reg. 2006. approved disciplinaryx Issuing action for and communicating receiving of 5. Thethe contract decision awards arising and from disregarding the administrative the technical review award was decisions.bids should be conducted communicatedevaluation report to without M/s Crown providing Merchantile sound reasons. Limited by the AO in th 4. The Accountingby the Officer PDU in should accordance advise 4. accordanceIn the meeting with heldReg. 10139(5) February of the PPDA 2006, Act, the 2003. Interim However, the the Contracts with Committee Reg. 25 to (1j) ensure and (2f)that EntityProcurement did not Committee give the complainant (IPC), Manafwa a fair hearing District whichcontract was variationsof the above PPDA 25% LG of Reg. the contraryirregularly to the approved laws of an natural award justice. of Shs 31,164,349/= to contract value2006. are approved by the M/s Yema Contractors and Suppliers. The IPC as Authority. stated in their minutes ignored the evaluation report 5. Manafwa District being a young recommendation and approved an award to a bidder Name of PDE: Buwenge Town Council Subject of Investigation: Management of Buwenge Water Supply Background: The Authority received a Pagecomplaint 18 of from 179 the Chairman Buwenge Water Board protesting the relationship between M/s Bika Ltd, formerly managing the water supply in Buwenge Town Council and M/s Kagulu Multiple Services Ltd, the firm awarded the tender to manage the water supply. Yet M/s Bika Ltd mismanaged the previous tender. Findings: Recommendations: 1. The CC did not approve the choice of the procurement 1. The CC should recommend method and bid document contrary to Reg. 56 (a & c) of the suspension of M/s Bika Ltd and PPDA LG Reg. 2006. M/s Kagulu Multiple Services for:- 2. There was no PP Form 20 from the User Department. This o Failure to respond to an audit was contrary to Reg. 65 of the PPDA LG Reg. 2006. query raised by Auditor 3. There was no information indicating that the PDU issued General of Shs 17,978,121; the bid documents contrary to Reg. 25 (1j) of the PPDA LG o Causing a loss of 16, Reg. 2006. We note that the Secretary CC, Mr. Silas Shs.16,360,155/= in Kafute, was handling the activities of the PDU at the time. accumulated bill and Shs. 4. There was no invitation to bidders issued since no 6,514,378 in accumulated documentation was on file. electricity bills. 5. There was no information regarding the receipt of bids o For the relationship existing contrary to Reg. 70 of the PPDA LG Reg. 2006. between the ownership and 6. There was nothing on file to show that the PDU management of both firms by recommended members of the Evaluation Committee to the Mr. Sam Ogot Okoth. CC for approval contrary to Reg. 25(2a) of the PPDA LG 2. The AO takes responsibility for the Reg. 2006. mismanagement of the 7. There was no information regarding CC approval of the procurement process for the
Page 37 of 179 Page 37 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. EvaluationDuring the Committee Financial contrary Year 2005/2006, to Reg. 17(1b) the of Schools the PPDA 1. The management Accounting and Officer provision should of LGFacility Reg. Grant 2006. (SFG) programme funding was reduced terminatewater services the appointments in Buwenge of Town the 8. Theand Evaluation the programme Committee cut did off not Manafwasign the ethical District. code of followingCouncil officers: which led Dr to Wamasebu a blanket conductTherefore contrary due to Reg. limited 27(9) funds, of the PPDA the above LG Reg. three 2006. Gideon,signing Dr of Okello a three-year Denis and contract Mr 9. Thecontracts Authority were did not not implemented. see the best evaluated When bidder the SFG notice Mwenyiwith M/s Davis Kagulu from Multiple the Contracts Service onprogramme file contrary was to installed Reg. 85 in of Financial the PPDA Year LG Reg.2007/2008, 2006. Committeewithout for any fraudulently clause to check approving their 10. Onthe above1st June three 2008, contracts the TC we Buwenge,re submitted Mr. Graceto Manafwa Kisembe, the performance. wrongful award of tender for wronglyDistrict Contracts signed Committee the contract to consider for Buwenge variations Waterin 3.constructionThe former of classrooms Secretary at CC,Bwirussa Mr. managementthe contract prices. without delegated authority from the AO PrimarySilas School Kafute, to is New also Mbale held 2. contraryThe Contracts to Reg. Committee, 14(f) of the Manafwa LG PPDA District Reg. 2006. approved Commercialresponsible Agencies for in accordance the 11. Theindividual District contract did not amendments provide for the the Authority contracts with of a withmismanagement Regulation 16 of the LG of (PPDA) the procurementNangalwe and action Sigunga file. Primary This contravened Schools increasing Reg. 46 the of the Regulations,procurement 2006. process for the LGtotal PPDA contract Reg. values 2006. by The 50% Authority of the original concluded contracts that the2. The managementAccounting Officer and should provision ensure of procurementwithout the process approval for ofthe theprovisions Authority, of water contrary services to for that water the members services in of Buwenge the Contracts Town BuwengeRegulation Water 120 (12)Supply of thewas Local not conducted Government in a (PPDA)competitive CommitteeCouncil. strictly comply with the manner,Regulations, was 2006.not fair and not transparent. 4.existingThe procurement CC members laws. should be 12.3. ThereInitially, was eacha strong school relationship had attractedbetween the one ownership bidder, and3. The cautioned Senior Assistant for making Secretary, approvals Mr managementrendering the of procurement M/s Bika and non-competitive. M/s Kagulu Multiple The Bwayowithout Rogers the necessary should be documents. subjected to ServicesInterim Procurementbecause Mr. CommitteeSam Ogot Okoth irregularly was the approved Managing 5.disciplinaryThe Town action Clerk, for communicating Mr. Grace Directorthe contract of bothawards firms. and disregardingMr. Ogot Sam the technicalwas also a awardKisembe, decisions. should be disciplined for shareholderevaluation report in M/s without Bika providing Ltd, a firm sound whose reasons. contract had signing the contract without th 4. The Accounting Officer should advise 4. beenIn the terminated meeting held for mismanagement 10 February 2006, of Buwenge the Interim Water the Contractsdelegated Committeeauthority from to ensure the AO. that Supply.Procurement Committee (IPC), Manafwa District 6.contractThe variations Inspector above General 25% of the of 13. Theirregularly Town approvedClerk, Mr. an Kisembe award of Grace, Shs 31,164,349/= acted irresponsibly to contractGovernment value are approved(IGG) by should the becauseM/s Yema he wrote Contractors several andletters Suppliers. to M/s Bika The Ltd IPCwhere as Mr. Authority.investigate further the conduct of Samstated Ogot in their about minutes their ignored failure the to evaluation fulfill contractual report 5. Manafwathe Town District Clerk, being Mr. a Kisembe young obligationsrecommendation but went and ahead approved and signed an award a new to contract a bidder with Grace. Mr. Sam Ogot under a different name, M/s Kagulu Multiple Services Ltd. Page 18 of 179
Name of PDE: Sembabule, Rakai, Isingiro and Kiruhura Subject of Investigation: Complaint About Alleged Unfair Evaluation of Bids and Flouting of PPDA Regulations for Mobilization and Design of Water and Sanitation Schemes in Three Rural Growth Centres. Background: PPDA received a complaint from Hydraulic & Sanitation Consult about alleged flouting of PPDA Regulations in the tenders for Consultancy Services for Mobilization and Design of Water & Sanitation Schemes in Sembabule, Rakai, Isingiro and Kiruhura Districts. The respective CAOs were requested to investigate and respond to the allegations. The CAO for Rakai responded and gave a report to the complainant but the remaining CAOs of Kiruhura, Isingiro and Sembabule did not. PPDA later received communication from the Austrian Embassy who made a follow-up on the tenders where the authority had never received any response. Findings: Recommendations: 1. M/s MADZI Uganda initially submitted a bid security in form of x The Facility Manager for a bank guarantee whereas the requirement was the banker’s Water and Sanitation cheque or bank draft of Shs 2,000,000. There was also a banker’s Development Facility cheque 601516 dated 18/12/2007 issued by DFCU after bid (WSDF) should discipline closing date of 17/12/07 though he was passed by the Evaluation Mr. Mwanje Enock and Mr. Committee as compliant. Ngabirano Denth, members 2. The Authority was established that bid opening was held on of the Evaluation Committee 20/12/07, though the addendum extending the bid opening date for passing M/s MADZI
Page 38 of 179 Page 38 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. wasDuring not availed. the Financial Year 2005/2006, the Schools 1. The AccountingUganda at preliminary Officer should stage 3. TheFacility Director Grant of(SFG) M/s programme MADZI Uganda, funding Eng.was reduced Stanley Watengaterminate on the a bid appointments security dated of after the worksand thewith programmethe Ministry cutof Water off and Manafwa Environment District. stationed following at closing officers: date Dr and Wamasebu awarding theTherefore Headquarters. due to There limited was no funds, evidence the that above he declared three conflictGideon, Drtechnical Okello scores Denis to and MADZI Mr ofcontracts interest wereas a serving not implemented. civil servant doing When business the SFGwith a projectMwenyi Uganda Davis from on areas the he Contracts had not underprogramme the samewas installed Ministry in as Financial required Year by the2007/2008, Code of EthicalCommittee qualified. for fraudulently approving Conductthe above in three Business. contracts The we Codere submitted of Ethical to Conduct Manafwa in business,the wrongfulx The CAO award Isingiro of tender should for FifthDistrict Schedule Contracts of Committee the PPDA Act,to consider 2003 requires variations that in employees construction discipline of classrooms members at Bwirussa of the shallthe contract reveal prices. any personal interest that may impinge or mightPrimary Evaluation School to Committee New Mbale that 2. reasonablyThe Contracts be Committee, deemed by Manafwa others to District impinge approved on an employee’s Commercial evaluated Agencies bids in of accordance Isingiro businessindividual dealings contract with amendments an industry. for the contracts of with Regulationdistrict 16 for of passingthe LG MADZI(PPDA) 4. TheNangalwe CAO Sembabuleand Sigunga failed Primary to investigate Schools increasing the complaint the of unfairRegulations, Uganda 2006. at preliminary stage evaluationtotal contract and values flouting by 50% of PPDA of the regulationsoriginal contracts tender 2. numberThe Accountingon a bid Officer security should dated ensure after WSDF-SWB/SEM/SCVS/01/07without the approval of the Authority, when it was contrary referred to to himthat in the closing members date of and the Contracts awarding JuneRegulation 2008 by 120 the (12) Authority. of the Local Government (PPDA) Committeetechnical strictly comply scores with to M/s the FindingsRegulations, in Kiruhura 2006. District: existing procurementMADZI Uganda laws. on areas he 13. ThereInitially, were each no exceptions school hadnoted attracted in the evaluation one bidder, exercise 3. of Thethe Seniorhad Assistantnot qualified. Secretary, Mr consultancyrendering the services procurement for mobilization non-competitive. and design The of water Bwayo and x RogersDisciplinary should action be subjected should be to sanitationInterim Procurement schemes in Kiruhura Committee district. irregularly approved disciplinarytaken action against for communicating Eng. Stanley Findingsthe contract in Isingiro awards District: and disregarding the technical award decisions.Watenga who is a serving 1. Theevaluation evaluation report team without favoured providing M/s sound MADZI reasons. Uganda in some civil servant with the th 4. The Accounting Officer should advise 4. casesIn the while meeting evaluating held 10 the February qualifications 2006, the of Interim consultants, the for ContractsMinistry Committee of to Water ensure that and example:Procurement Committee (IPC), Manafwa District contract variationsEnvironment above 25% for of thehis irregularlya. M/s approved Enid Kansime an award was ofonly Shs mentioned 31,164,349/= in the toproposal contract as valueinvolvement are approved in by this the M/s Yemathe Contractors Sociologist andbut neitherSuppliers. her The CV IPC nor as any of Authority. her procurement without stated inacademic their minutes qualifications ignored was the provided, evaluation but report the evaluation 5. Manafwa declaring District his being interest a in young M/s recommendationteam awarded and M/s approved MADZI an Uganda award tomaximum a bidder score of 3. MADZI Uganda. b. The bid document required that the qualification for a x The Facility Manager, Sanitation Specialist was a degree in Public Health or WSDF should in future Environment, but M/s HellenPage Irene 18 of Obuya179 who was ensure that the standard bid evaluated and awarded maximum points of 3 presented a document includes evidence CV with a degree in B.Arts. on experience and 2. M/s MADZI Uganda initially submitted a bid security in form of qualifications of personnel. a bank guarantee dated 12/12/07 whereas the requirement was the x The CAO of Isingiro, banker’s cheque or bank draft of Shs 2,000,000. There was also Kiruhura and Sembabule an attached document (not bound as part of the proposal) of should in future ensure that banker’s cheque 601516 dated 18/12/2007 issued by DFCU after the technically successful bid closing date of 17/12/07 though he was passed by the bidders are invited for Evaluation Committee as compliant. The record of bid opening financial bid opening where was not availed to confirm what was recorded at bid opening, two envelopes have been though the Chairman Contracts Committee indicated that the bids used. were opened on 20/12/07. x The CAOs should always 3. The Director of M/s MADZI Uganda Eng. Stanley Watenga investigate the complaints works with the Ministry of Water and Environment stationed at whenever they are referred to the headquarters. There was no evidence that he declared a them by the Authority in conflict of interest as a civil servant doing business with the same accordance with regulation Ministry that is funding the project as required by the Code of 14 (g) of the PPDA Ethical Conduct in Business. Regulations 2006. General observations: 1. Generally all the bidders who were technically evaluated indicated in their proposals experience of similar nature by listing jobs earlier done but there was no attached evidence to confirm
Page 39 of 179 Page 39 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. suchDuring experience. the Financial The bid Year document 2005/2006, issued theto bidders Schools was 1.lackingThe Accounting Officer should asFacility far asGrant availing/attaching (SFG) programme the funding evidence was of reduced experience wasterminate the appointments of the concerned.and the programme cut off Manafwa District. following officers: Dr Wamasebu 2. FinancialTherefore bid due opening to limited was not funds, held the publicly above in three all the threeGideon, Dr Okello Denis and Mr districtscontracts with were representation not implemented. of technically When thecomplaint SFG bidders,Mwenyi Davis from the Contracts contraryprogramme to thewas Local installed Governme in Financialnt (PPDA) Year guidelines 2007/2008, on financialCommittee for fraudulently approving bidthe opening above three where contracts quality wecostre evaluation submitted methodology to Manafwa has beenthe wrongful award of tender for used.District Contracts Committee to consider variations in construction of classrooms at Bwirussa 3. Thethe contract evaluation prices. reports for all districts did not include individualPrimary School to New Mbale 2. scoreThe Contracts sheets. TheCommittee, evaluation Manafwa was done District in a team approved by agreeing Commercial on Agencies in accordance scores.individual contract amendments for the contracts of with Regulation 16 of the LG (PPDA) Nangalwe and Sigunga Primary Schools increasing the Regulations, 2006. total contract values by 50% of the original contracts 2. The Accounting Officer should ensure Namewithout of PDE: the Sironko approval District of the Authority, contrary to that the members of the Contracts SubjectRegulation of Investigation: 120 (12) of Complaint the Local aboutGovernment the Mismanagement (PPDA) ofCommittee the Procurement strictly Process comply for withRevenue the CollectionRegulations, in Bulegeni 2006. Market existing procurement laws. Background:3. Initially, eachPPDA school received had a complaint attracted from one the bidder, Member 3. The of Parliament Senior Assistant for Bulambuli Secretary, County, Mr Sironkorendering District, the Hon. procurement Wamakuyu Mudimi, non-competitive. citing irre gularities The inBwayo the procurement Rogers should process be subjected of revenue to collectionInterim for Procurement Bulegeni Market Committee in Sironko irregularly District. approved disciplinary action for communicating Findings:the contract awards and disregarding the technicalRecommendations: award decisions. evaluation report without providing sound reasons. th 4. The Accounting Officer should advise Name4. In of the PDE: meeting Kabarole held District 10 February 2006, the Interim the Contracts Committee to ensure that SubjectProcurement of Investigation: Committee Complaint (IPC), Manafwa about award District of Tendercontract for the variations Construction above of25% Rubona, of the Nyakigumba,irregularly Kibiito approved and anRwimi award Town(s of Shs) Water 31,164,349/= Supply and to Sanitationcontract Scheme. value are approved by the Background:M/s YemaPPDA Contractors received and a complaint Suppliers. forwarded The IPC from as OfficeAuthority. of IGG stating that M/s Vambeco Enterprisesstated inallegedly their minutes flouted ignoredthe procurement the evaluation procedur reportes by Kabarole5. Manafwa District District Administration being especially a young in therecommendation award of contract and for approved Nyakigumba an awardTowns toWater a bidder Supply. Findings: Recommendations: 1. Although the CAO as the Accounting Officer has x The Accounting Officer (i.e. CAO overall responsibility over the Entity’sPage procurement 18 of 179 Kabarole) should proceed with the activities, he undermined the independency of procurement process in accordance with functions as per PPDA Regulations when he the second evaluation report as approved interfered with the functions of the Contracts by the Contracts Committee. Committee by issuing instructions directly to the x The Accounting Officer should investigate Evaluation Committee to review the evaluation the falsification of the evaluation report report. He should have referred the matter to and take appropriate disciplinary action Contracts Committee through the Secretary of the against any member of staff found to have CC. been involved in altering the Evaluation 2. The CC received two evaluation reports. However, Committee’s recommendation. when the first report was received and approved, x The CAO should caution the Contracts one of the members of the Evaluation Committee Committee members for failure to recede raised anomalies and the Entity resolved to review their first approval of the evaluation report the report. It was noted by the Authority that at this before approving another report for the point, the Contracts Committee had not receded same tender. their earlier decision. x The Contracts Committee should recede 3. The Entity did not apply the recommended PPDA their first awards of the contracts that were standard forms and notices in the procurement based on the falsified evaluation report. process. x The CAO should stop interfering with the 4. The Authority did not find merit in the grounds functions of the Contracts Committee. raised by the complainant, Ms Vambeco. The x The CAO should organize training in Authority concluded that the evaluation report consultation with PPDA for members of initially issued to the CC that was tampered with
Page 40 of 179 Page 40 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. wasDuring eventually the Financial corrected, Year and 2005/2006, the best evaluated the Schools the1. The Contracts Accounting Committee Officer and should key bidderFacility awarded Grant (SFG) the contract. programme funding was reduced stakeholdersterminate involved the appointments in the of tender the and the programme cut off Manafwa District. evaluationsfollowing of the officers: district. Dr Wamasebu Therefore due to limited funds, the above three Gideon, Dr Okello Denis and Mr contracts were not implemented. When the SFG Mwenyi Davis from the Contracts Nameprogramme of PDE: Mbalewas installed Municipal in Financial Council Year 2007/2008, Committee for fraudulently approving Subjectthe aboveof Investigation: three contracts Complaint were submitted Cited About to Manafwa Irregularities inthe the wrongful Disposal Process award ofof 33 tender Lock-up for SpaceDistrict at Mbale Contracts Taxi Park. Committee to consider variations in construction of classrooms at Bwirussa Background:the contractMbale prices. Municipal Local Government Council allocatedPrimary lock-up School space at to Mbale New Taxi Mbale Park to2. thirtyThe Contractsthree (33) Committee,firms in May Manafwa 2002. During District spac approvede allocation, theCommercial Council realized Agencies that in more accordance lock-up spaceindividual had been contract allocated amendments compared for to the the availa contractsble planned of space.with Regulation The Council 16 of requested the LG (PPDA) for the expansionNangalwe of theand TaxiSigunga Park Primary and the Schools Permanent increasing Secretary, the MinistryRegulations, of Lands, 2006. Housing and Urban Developmenttotal contract granted. values During by 50% the of re-allocation, the original PPDA contracts received 2. The various Accounting complaints Officer that should the disposal ensure processwithout was flouted. the approval of the Authority, contrary to that the members of the Contracts Findings:Regulation 120 (12) of the Local Government (PPDA) CommitteeRecommendations: strictly comply with the 1. TheRegulations, PDU failed 2006. in its capacity to distinguish between existing a x Mbaleprocurement Municipal laws. Council 3. procurementInitially, each from school a disposal. had attracted The sale one of lock-up bidder, space 3. atThe Seniorshould Assistant re-tender Secretary, the disposal Mr Mbalerendering Municipal the procurement Council was non-competitive.divestiture by lease The and not Bwayo a Rogersas per should Reg. 125 be subjected of the LG to procurement.Interim Procurement Committee irregularly approved disciplinaryPPDA action Regulations, for communicating 2006. 2. Thethe Municipality contract awards used anda wrong disregarding method of the disposal. technical There wasaward x decisions.Disciplinary action was to be evaluation report without providing sound reasons. no publication of the bidth notice as required under Reg. 125(2)4. The Accountingtaken against Officer should Mr Robert advise 4. ofIn the the LG meeting PPDA heldReg. 102006. February 2006, the Interim the ContractsKabala Committee and Mr Sebowa to ensure Jimmy that 3. BidProcurement notices were Committee put up at (IPC), Mbale Manafwa notice boards. District The lawcontract both variations Councilors above 25% in of the requiresirregularly that approved a bidder an shall award be solicited of Shs 31,164,349/= by the publication to andcontract Municipality value are approved by the District by the displayM/s Yema of a Contractors public invitation and Suppliers. notice (Reg. The 125 IPC (2) of as the LGAuthority. Council for participating in the PPDAstated in Reg. their 2006). minutes The ignored Municipality the evaluation did not report publish 5. theManafwa bidding District of 33 beinglock-up aspaces young at disposalrecommendation but only anddisplayed approved the invitation an award to to bidder. a bidder Therefore, Mbale Taxi Park. the method of invitation used in the allocation of 33 lock-up x Mbale Municipality Council, spaces was not sufficient. in handling of disposal 4. There is sufficient evidence to showPage that 18 someof 179 Councillors activities, should always participated in the bidding process contrary to ITB 1 sub- follow disposal rules as section 6 of the bid document. The proprietors of M/s Elgon stipulated in LG PPDA Reg. General Dealers Association and M/s National Data Card Bank 2006. who were allocated lock-up space No. 98 and 91 respectively are both Councillors in Mbale Municipal Council contravening Reg. 20 (2) of the PPDA LG Reg. 2006. According to the information from the Registrar of Companies, the two firms belong to Mr. Jimmy Ssebowa Khaukha and Mr. Robert Kabala respectively.
Name of PDE: Mbale Referral Hospital. Subject of Investigation: Complaint About Alleged Irregularities in the Procurement Process of Works and Supplies in Mbale Referral Hospital. Background: PPDA received a complaint from a whistleblower in respect to the procurement of works and supplies at Mbale Regional Referral Hospital. Findings: Recommendations: 1. The Entity did not use the standard forms issued by the Authority 1. The tender for overhaul of to record all details of the procurement process. This is contrary water and sewerage network to Section 56(2) of the PPDA Act 2003. should be halted since its 2. The procurement requirements were not documented using PP works were already under Form 20. This was contrary to Regulation 104 of the PPDA Lot 1.
Page 41 of 179 Page 41 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. Regulations,During the 2003. Financial Year 2005/2006, the Schools 1. The 2. AccountingTenders for Officerworks were should to be 3. TheFacility Entity Grant did (SFG)not record programme the issue funding of the wassolicitation reduced documents terminate independently the appointments evaluated of the usingand thePP Form programme 30 contrary cut to Re offgulation Manafwa 146(3) District. (a) of the PPDAfollowing taking officers: into consideration Dr Wamasebu the Regulations,Therefore due 2003. to limited funds, the above three Gideon, Dromissions Okello noted Denis and by theMr 4. Thecontracts Entity were did not not record implemented. the bids received When theusing SFG PP FormMwenyi 34 Authority. Davis from the Contracts contraryprogramme to Regulation was installed 158(3) in Financial of the PPDA Year Regulations, 2007/2008, 2003. Committee3. Tender for fraudulently for supply approving of 5. Thethe abovebid opening three contractswas not recorded were submitted using the to PP Manafwa Form 35 contrarythe wrongfulfurniture award were of to tender be forre- toDistrict Regulations Contracts 164(1) Committee of the PPDA to consider Regulation, variations 2003. in constructiontendered of classrooms and the at Entity Bwirussa was 6. Therethe contract was prices. no clear boundary between the scope of worksPrimary to School consider to the Newprovisions Mbale of 2. presentedThe Contracts in LotCommittee, 1 – renovations Manafwa District of buildings approved and Lot-2Commercial – Regulations Agencies 348 in accordance & 349, overhaulindividual of contractthe water amendments and sewerage for network. the contracts of with Regulationrecommending 16 of the LG (PPDA) the 7. CloseNangalwe analysis and Sigunga indicated Primary that 90% Schools of worksincreasing in Lot the 2 wereRegulations, a blacklisting 2006. of the respective duplicationtotal contract of valuesworks byin Lot 50% 1 ofunder the originalthe sub-heading contracts “plumbing 2. The Accountingfirm for Officer fraudulent should practice. ensure andwithout drainage.” the approval The manholes of the and Authority, their accessories contrary were to placedthat the4. Tender members for of supply the Contracts of motor underRegulation “security 120 lights.”(12) of theThis Local was aGovernment fraudulent practice. (PPDA) Committeevehicle strictly was comply to be re-tendered with the 8. RetrospectiveRegulations, 2006. approval of bidding documents by CC was alsoexisting procurementas per Contracts laws. Committee 3. noted.Initially, each school had attracted one bidder, 3. The Seniordecision. Assistant Secretary, Mr 9. Thererendering was the extension procurement of the deadline non-competitive. for bid closing The withoutBwayo 5. RogersThe Entity should was be subjected to proceed to approvalInterim Procurementby CC. Committee irregularly approved disciplinarywith action the for procurement communicating of 10. Allthe minutes contract of awardsCC relating and to disregarding this procurement the technicalwere not signed.award decisions.medical supplies as per 11. Membersevaluation of report the Evaluationwithout providing Committee sound did reasons. not sign the Code of notice of Best Evaluated th 4. The Accounting Officer should advise 4. EthicalIn the meetingConduct heldin Business 10 February contrary 2006,to Regulation the Interim 169(9) of thethe ContractsBidder Committee since noto ensure significant that PPDAProcurement Regulations, Committee 2003 (IPC), Manafwa District contract variationsanomalies abovewere noted 25% on of this the 12. Theirregularly Evaluation approved Committee an award did of not Shs carry 31,164,349/= out the technical to contract and valueLot during are investigation. approved by the commercialM/s Yema examination Contractors of and the Suppliers. bids for works The in IPC accordance as withAuthority. criteriastated in stipulated their minutes in the ignored bidding the documents evaluation contrary report to 5. SectionManafwa District being a young 72(2)recommendation of the PPDA and Act, approved 2003. an award to a bidder
Name of PDE: Posta Uganda. Page 18 of 179 Subject of Investigation: Disposal of Used Scrap Motor Vehicle/Service Vans and Motorcycles at Posta Uganda. Background: The Public Procurement and Disposal of Public Assets Authority (PPDA) received a complaint from Mr. Tom Barigye who was one of the bidders for the items of disposal citing various irregularities during the disposal process by Posta Uganda. Findings: Recommendations: 1. Bidders were required to pay a non refundable fee of x Posta Uganda should continue with 100,000/= to Posta Uganda. The Authority noted that the the disposal process and carry out amount of money paid by the bidders amounting to contract placement in accordance with 100,000/= was unreasonably high in light of the size of the Contracts Committee award the bid document. This was contrary to Regulation 146 decisions. (5) which requires that solicitation documents should be x The complainant Mr. Tom Barigye sold in order to cover costs related to printing, copying should accordingly be informed as per and distribution. Posta Uganda contravened this the CC decision as the best evaluated regulation by also incorporating towing charges into the bidder and awarded the vehicle Mazda cost of the bidding document, thereby transferring UAD 629B at 1,600,000/=. unnecessary financial burden to the bidders. x The Accounting Officer should take 2. From the notice, the complainant Mr. Tom Barigye was appropriate disciplinary action against the best evaluated bidder for Mitsubishi Pajero 287 UDE the Ag. PDU Mr. Caleb Muwanguzi at 4,500,000/= and also best evaluated bidder for Mazda for; UAD 629B at 1,600,000/=. The Authority established i. Recommending a high that the Mitsubishi Pajero UDE 287 was awarded to the price of the solicitation
Page 42 of 179 Page 42 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. thirdDuring evaluated the Financial bidder Year as the 2005/2006, first and the second Schools best 1. The Accountingdocument. Officer should evaluatedFacility Grant bidders (SFG) didn’t programme come to funding pay for was the reduced vehicle. terminateii. the Failure appointments to obtain approvals of the Theand UAD the programme 629B Mazda cut was off not awarded Manafwa and District. is still following from officers: the Dr Wamasebu Contracts available.Therefore due to limited funds, the above three Gideon, DrCommittee Okello Denisfor the andprice Mrof 3. Thecontracts complainant were not implemented. alleges that When he never the SFG got Mwenyi Davisthe solicitation from the document, Contracts communicationprogramme was ofinstalled the award. in Financial He adds Yearthat there 2007/2008, was no Committee [ forcontrary fraudulently to Regulation approving notificationthe above three of contractsaward published were submitted and that to Manafwa he never the wrongful146 award (6)], valuation of tender report for receivedDistrict Contracts any phone Committee call from to Posta consider Uganda variations regarding in constructionand of classrooms evaluation at committee Bwirussa histhe contractnotification prices. of award. Over a period of six months, Primary School[contrary to to Regulation New Mbale 37 2. Mr.The BarigyeContracts claimed Committee, he visited Manafwa Posta DistrictUganda approvedsix times, Commercial(2) Agencies]. in accordance allindividual of which contract yielded amendmentsno results as forhe was the unable contracts to ofget withiii. RegulationFailure 16 toof usethe theLG standard(PPDA) informationNangalwe and as Sigungato whether Primary he had Schools been awarded increasing or thenot. Regulations,format 2006. of the notification Thetotal investigation contract values established by 50% that of thesome original of the contractsBarigye’s 2. The Accountingof award Officer as should per ensure PPDA visitswithout were the before approval the notification of the Authority, of award contrary was put toon that the membersGuideline of 2/2004 the Contractsand Reg. theRegulation notice board. 120 (12) of the Local Government (PPDA) Committee 336 strictly of PPDA comply Regulations, with the 4. TheRegulations, investigation 2006. revealed that from the time of bid existing procurement2003. laws. 3. opening,Initially, bidders each school got information had attracted on contract one award bidder, a 3.4. ThePosta Senior Uganda Assistant should always Secretary, appoint Mr monthrendering later, theas the procurement evaluation had non-competitive. taken longer than The had BwayoContract Rogers Managers should be to subjected undertake to beenInterim anticipated. Procurement The Committee Authority irregularly established approved the disciplinaryfunctions action as forstipulated communicating under followingthe contract from awards three other and bidders: disregarding the technical awardRegulation decisions. 337 (1) of the PPDA evaluationa. One report of the without bidders providing got to know sound the reasons. outcome of 4. TheRegulations, Accounting 2003. Officer should advise 4. In the meetingthe disposal held process10th February from the2006, notification the Interim of 5. Communication to bidders should st the Contracts Committee to ensure that Procurementaward Committee that was placed (IPC), on 1 Manafwa floor next District to the contractalways be variations formalized above and documented 25% of the irregularlyProcurement approved and an awardDisposal of Unit Shs 31,164,349/=office. to contractin accordance value with are Reg. approved 336. by the M/s b. YemaAnother Contractors bidder received and Suppliers. the communication The IPC via as 6. Authority.The Contracts Committee should stated intelephone their minutes a month ignored after the the bid evaluation opening. report 5. Manafwaalways provide District approvals being a at young key recommendationc. One of the and bidders, approved Eng. anGeorge award Owili to awas bidder also stages of the disposal process. informed via telephone. 5. Posta Uganda provided communication of the best evaluated bidders, by way of makingPage phone 18 of calls179 to bidders and posting on the notice board a list of the bidders and highlighting the best evaluated bidder contrary to Reg. 336 which requires that the award is displayed within one working day of contract award on the PDE’s notice board. 6. Posta Uganda erred by not providing sufficient guidance on the time frame within which bidders were to pick their contract awards after being contacted. 7. At bid opening Posta Uganda had given an indication that award decisions would be communicated within one week from bid opening. However, Posta erred by failing to inform the bidders of the delay in the evaluation process, leading to the delay in communicating award decisions. Best practice would have required that Posta Uganda inform the bidders about the delay and when the bidders would be contacted.
Name of PDE: Hoima Town Council.
Page 43 of 179 Page 43 of 179 third evaluated bidder as the first and second best document. evaluated bidders didn’t come to pay for the vehicle. ii. Failure to obtain approvals The UAD 629B Mazda was not awarded and is still from the Contracts available. Committee for the price of 3. The complainant alleges that he never got the solicitation document, communication of the award. He adds that there was no [contrary to Regulation notification of award published and that he never 146 (6)], valuation report received any phone call from Posta Uganda regarding and evaluation committee his notification of award. Over a period of six months, [contrary to Regulation 37 Mr. Barigye claimed he visited Posta Uganda six times, (2)]. all of which yielded no results as he was unable to get iii. Failure to use the standard information as to whether he had been awarded or not. format of the notification The investigation established that some of the Barigye’s of award as per PPDA visits were before the notification of award was put on Guideline 2/2004 and Reg. the notice board. 336 of PPDA Regulations, 4. The investigation revealed that from the time of bid 2003. opening, bidders got information on contract award a 4. Posta Uganda should always appoint month later, as the evaluation had taken longer than had Contract Managers to undertake been anticipated. The Authority established the functions as stipulated under following from three other bidders: Regulation 337 (1) of the PPDA a. One of the bidders got to know the outcome of Regulations, 2003. the disposal process from the notification of 5. Communication to bidders should award that was placed on 1st floor next to the always be formalized and documented Procurement and Disposal Unit office. in accordance with Reg. 336. b. Another bidder received the communication via 6. The Contracts Committee should telephone a month after the bid opening. always provide approvals at key c. One of the bidders, Eng. George Owili was also stages of the disposal process. informed via telephone. 5. Posta Uganda provided communication of the best evaluated bidders, by way of making phone calls to bidders and posting on the notice board a list of the bidders and highlighting the best evaluated bidder contrary to Reg. 336 which requires that the award is displayed within one working day of contract award on the PDE’s notice board. 6. Posta Uganda erred by not providing sufficient guidance on the time frame within which bidders were to pick their contract awards after being contacted. 7. At bid opening Posta Uganda had given an indication that award decisions would be communicated within one week from bid opening. However, Posta erred by failing to inform the bidders of the delay in the evaluation process, leading to the delay in communicating award decisions. Best practice would have required that Posta Uganda inform the bidders about the delay and when the bidders would be contacted.
Name of PDE: Hoima Town Council. Subject of Investigation: Procurement of Land for Waste Compositing in Hoima Town Council. Background: The Public Procurement and Disposal of Public Assets Authority (PPDA) received a complaint from Mr. Okuja Dennis Peterson,Page one 43 of of the 179 bidders, citing irregularities in the procurement of land for waste compositing project for Hoima Town Council by the District Contracts Committee. Findings: Recommendations: 1. The proposal from Ojuka was eligible but not administratively 1. The Entity re-evaluates the compliant as he did not submit a sworn affidavit or a statutory bids submitted by the bidders declaration about the status of the land. However, further in line with the criteria stated analysis of the availed records indicated that Mr. Okuja in the letter of invitation. submitted the sworn affidavit to the Council and not to the 2. The bid submitted by Mrs. Procurement Officer as indicated in the addendum. Jane Magezi be disqualified. 2. The Entity erred when they gave the bidders only one day to 3. The Entity should inform the respond to the addendum. It was noted that the Entity issued the Authority of the outcome addendum on Thursday 15th/01/09 and expected the bidders to within 14 days after receipt of respond by Monday 19th/01/09 which in effect gave the bidders the report. one working day to prepare an affidavit. This was irregular and 4. The Entity should in future contrary to LG.Reg 67 (5) that requires that a bidder should be ensure that bid documents are given reasonable time to take an addendum into account while drawn up with the input of user preparing the bid. departments and approved by 3. The Evaluation Committee erred when they used criteria not CC before a procurement communicated to the bidders to evaluate bids. The detailed process is initiated. evaluation report on file indicated that the evaluators adopted 5. The Bid documents issued to additional areas in the evaluation criteria that were not part of bidders should always state the the approved criteria in the letter of invitation to bidders. These evaluation methodology to be areas included Topography and the Initial Environmental used as required in LG. Reg 48 Impact Assessment report. This was contrary to regulation (4). 48(4) of the Local Government (PPDA) Regulations 2006. 6. The Evaluation Committee 4. The Authority noted from the correspondences submitted and should stick to the evaluation also from the interviews conducted that the recommended methodology as stated in the bidder Mrs Jane Magezi was a Councillor LC III in Hoima bid document. Town Council, the Entity purchasing the land. The position of Mrs Jane Magezi was also confirmed in the initial letter dated 12th September 2008, written to the potential sellers where it was clearly stated that Mrs. Jane Magezi was a Councillor LC III Hoima Town Council. According to Regulation 20(2) of the Local Government (PPDA) Regulations, 2006 “Councillors, employees of a council, members of Contracts Committee and other statutory bodies of a council are prohibited from being bidders or providers to council either directly or indirectly”. This regulation technically disqualifies Mrs Jane Magezi from the biding process. 5. The budgeted amount is half of the awarded amounting raising concerns on payment. The Authority noted that the Town Council had budgeted for Shs. 15,000,000 for the purchase of land and as confirmed in the approved budget for FY2008/2009. This raises concern as to how the Council was to pay the price of 30 million as awarded.
Name of PDE: Mubenda District
Page 44 of 179 Page 44 of 179 Subject of Investigation: Procurement of Land for Waste Compositing in Hoima Town Council. Background: The Public Procurement and Disposal of Public Assets Authority (PPDA) received a complaint from Mr. Okuja Dennis Peterson, one of the bidders, citing irregularities in the procurement of land for waste compositing project for Hoima Town Council by the District Contracts Committee. Findings: Recommendations: 1. The proposal from Ojuka was eligible but not administratively 1. The Entity re-evaluates the compliant as he did not submit a sworn affidavit or a statutory bids submitted by the bidders declaration about the status of the land. However, further in line with the criteria stated analysis of the availed records indicated that Mr. Okuja in the letter of invitation. submitted the sworn affidavit to the Council and not to the 2. The bid submitted by Mrs. Procurement Officer as indicated in the addendum. Jane Magezi be disqualified. 2. The Entity erred when they gave the bidders only one day to 3. The Entity should inform the respond to the addendum. It was noted that the Entity issued the Authority of the outcome addendum on Thursday 15th/01/09 and expected the bidders to within 14 days after receipt of respond by Monday 19th/01/09 which in effect gave the bidders the report. one working day to prepare an affidavit. This was irregular and 4. The Entity should in future contrary to LG.Reg 67 (5) that requires that a bidder should be ensure that bid documents are given reasonable time to take an addendum into account while drawn up with the input of user preparing the bid. departments and approved by 3. The Evaluation Committee erred when they used criteria not CC before a procurement communicated to the bidders to evaluate bids. The detailed process is initiated. evaluation report on file indicated that the evaluators adopted 5. The Bid documents issued to additional areas in the evaluation criteria that were not part of bidders should always state the the approved criteria in the letter of invitation to bidders. These evaluation methodology to be areas included Topography and the Initial Environmental used as required in LG. Reg 48 Impact Assessment report. This was contrary to regulation (4). 48(4) of the Local Government (PPDA) Regulations 2006. 6. The Evaluation Committee 4. The Authority noted from the correspondences submitted and should stick to the evaluation also from the interviews conducted that the recommended methodology as stated in the bidder Mrs Jane Magezi was a Councillor LC III in Hoima bid document. Town Council, the Entity purchasing the land. The position of Mrs Jane Magezi was also confirmed in the initial letter dated 12th September 2008, written to the potential sellers where it was clearly stated that Mrs. Jane Magezi was a Councillor LC III Hoima Town Council. According to Regulation 20(2) of the Local Government (PPDA) Regulations, 2006 “Councillors, employees of a council, members of Contracts Committee and other statutory bodies of a council are prohibited from being bidders or providers to council either directly or indirectly”. This regulation technically disqualifies Mrs Jane Magezi from the biding process. 5. The budgeted amount is half of the awarded amounting raising concerns on payment. The Authority noted that the Town Council had budgeted for Shs. 15,000,000 for the purchase of land and as confirmed in the approved budget for FY2008/2009. This raises concern as to how the Council was to pay the price of 30 million as awarded.
Name of PDE: Mubenda District Subject of Investigation: Contractor for the Repair of Bukomero-Kakinzi-Kayera-Kyankwanzi Road (76km) Background: The Public Procurement Page and Disposal44 of 179 of Public Assets Authority (PPDA) received a complaint from M/s Manafa Masaba Constructions Ltd in respect of the procurement of works for repair of Bukomero-Kakinzi-Kayera–Kyankwanzi road (76km). Findings: Recommendations: 1. The Authority reviewed the solicitation documents, the evaluation 1. The Entity should re-tender report, and cross-checked the arithmetic errors, and noted that this procurement since the there were arithmetic errors in three bids namely for M/s bids are now invalid. Mulowooza & Bros Ltd, M/s Manafa Masaba and M/s Lamba 2. The Accounting Officer Enterprises. The arithmetic errors were corrected in order to should ensure that the time arrive at the evaluated total prices, however the bidders whose limits for conducting bids had arithmetic errors were not notified of and requested to administrative reviews are agree to the arithmetic corrections contrary to Regulation 192(3). strictly observed in 2. The Authority noted that the chairperson of the Evaluation accordance with Regulation Committee did not notify and seek clarification from bidders 346(4). whose bids had arithmetic errors. This was contrary to 3. The Head PDU should Regulation 192 (3) ensure that members of the 3. The Engineer’s estimate for the Entity was Ushs 2,584,939,719/=. Evaluation Committee M/s Lamba Enterprises corrected bid price was Ushs always sign the Code of 2,285,694,834/= which is 12% below the Engineer’s estimate. Ethical Conduct in Business 4. The Authority noted the M/s Lamba Enterprises Ltd quoted Ushs in accordance with 2,441,053,734/= and not Ushs 2,441,058,784/= as claimed by the Regulations 169(9). complainant 4. The Head PDU should 5. The Authority noted that much as the Evaluation Committee ensure that Evaluation computed variance of the bid prices from the Entity’s engineer’s Committees prepare estimate, the outcome of the computation was not used in the evaluation reports using the ranking of the bids. The variance computations were not of any relevant PP Forms in line significance and they were not part of the evaluation criteria. with Regulation 195(1). 6. The Authority noted that the Entity display of the notice of best 5. The Head PDU and the evaluated bidder was not conducted in accordance with the PPDA Secretary Contracts Regulations. The notice was displayed 10 days after the decision Committee should ensure of the contracts committee to award the contract contrary to that the display of the notice Regulation 224(1) and the notice was not in the format provided of best evaluated bidder is in the seventh schedule of the PPDA Regulations. It was also done in accordance with irregular for the Entity to request the unsuccessful bidders to pick Regulation 224(1) their bid securities as per the notice of best evaluated bidder 6. The Head PDU should before entering into contract. This contrary to Regulation 152(5). ensure that a bid security is 7. The Authority noted that the validity of the bids submitted for this released promptly to procurement expired on April 28, 2009 implying that the bids are unsuccessful bidder upon now invalid. The Authority further noted that the Entity did not expiry of the term of the request the bidders to extend the validity period of their bids but security or upon the instead requested bidders to extend validity of the bid securities. formation of a contract with 8. The Accounting Officer instituted an investigation after receipt of the successful bidder. the application for administrative review however; his decision 7. The Evaluation Committee was not issued within the stipulated fifteen working days contrary should ensure that the to Regulation 346(4). evaluation report contains 9. The Application for an Administrative Review to the Authority recommendations on by the complainant was technically out of time in accordance with Regulations 347 (1) & (2). The Authority in accordance with Section 8(c) of the PPDA Act, 2003 instituted an investigation into the matter.
Page 45 of 179 Page 45 of 179 Name of PDE: Bundibugyo District Subject of Investigation: Construction of Kikyo Gravity Flow Scheme in Bundibugyo District Background: Bundibugyo District Local Government (BDLG) entered into a contract with M/s Sualf Construction Ltd to undertake construction of Kikyo Gravity Flow Scheme with support from Belgium Technical Cooperation (BTC). During the implementation of the contract, it was noted by BTC Project Engineer that the construction works were not executed in accordance with the design of the scheme. Consequently BTC requested the Authority to review the procurement process. Findings: Recommendations: 1. The Authority noted that there were deviations from the x The Contractor, M/s Sualf specifications of the contract in terms of materials used in the Construction Ltd should Phase 1 of the contract. The following deviations from the reconstruct the pipeline for contract were noted: Phase 1 and 2 in accordance i. Intake works: The contractor constructed a straight stone with the approved Bills of masonry wall at the abstraction instead of a slanting wall Quantities and designs of the specified in the contract. Kikyo Gravity Flow Scheme. ii. Pipes and fittings on three reservoir tanks: The x The Accounting Officer contractor did not use the pipes and fittings specified in the should take disciplinary contract. The pipes and fittings used by the Contractor were action against Mr. Jaana much cheaper than the ones stated in the contract. As a Misisera for altering designs result, Ushs. 8,030,000/= was fraudulently paid to the and Bills of Quantities contractor. without seeking the iii. Pipeline HDPE 110mm PN 6 and PN 10: Two sections of necessary approvals from the pipeline HDPE 110mm totalling 300 metres were not laid Consultant who designed the in accordance with the contract. As a result, the contractor scheme and the Contracts was fraudulently paid Ushs. 8,358,150/=. Committee. 2. The Authority noted that modifications to the intake works were x Mr. Jaana Misisera should done by the contractor with hand written instructions from the not continue supervising the Ag. District Water Officer Mr. Jaana Misisera. contract while on study 3. The Authority noted that the Supervising Engineer Mr. Jaana leave. The Head of the Misisera did not act impartially between the contracting authority Works Department should and the contractor contrary to Regulation 105 of the LG (PPDA) nominate a contract Regulations, 2006. The Supervising Engineer misrepresented supervisor with appropriate facts, verified and certified the above illegal works for payment. skills and experience in line 4. The Contractor in the first payment certificate submitted claims with Regulations 119 (2 & 3) for having laid 110mm HDPE pipes and payment was effected of the LG (PPDA) yet the contractor had actually laid 90mm HDPE pipes. This was Regulations 2006. very unethical of the contractor and is contrary to the Code of x The Contracts Committee Ethical Conduct for Bidders and Providers contained in Guideline should consider No. 4/2003 of the PPDA Guidelines and is a fraudulent practice recommending blacklisting as defined under LG (PPDA) Regulations, 2006. of M/s Sualf Construction 5. M/s Sualf Construction Ltd submitted an interim certificate of Ltd in accordance with payment No. 2 amounting to Ugs. 200,512,680/=. This was Regulation 60 of the LG verified by the Ag. District Engineer, Mr. Jaana Misisera. Upon (PPDA) Regulations 2006. review by the BTC Project Engineer, Mr. Jeef Ssozi Ssekimpi, it x In bid to streamline the was realized that the contractor had invoiced several items that contract implementation of had not been done and these undone works had been verified and Kikyo Gravity Flow Scheme, certified by the Supervisor Mr. Jaana Misisera. The certificate of the Accounting Officer of payment was therefore reduced by Ugs. 44,112,000/=. The the Entity should clearly contractor again submitted a fraudulent claim for payment. spell out the roles, linkages 6. The contact worth Ugs. 431,605,747/= VAT exclusive was signed and the contractual for Phase 2, however the value of works as per the BOQs obligations between the BTC
Page 46 of 179
Page 46 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. attachedDuring the amounted Financial to Ugs. Year 369,468,887/=. 2005/2006, the The Schools Authority 1. notedThe AccountingProject Engineer Officer and should the thatFacility the Grant revised (SFG) BOQs programme had signi ficantfunding changes was reduced in terms of terminate the District the appointments Contract Supervisor. of the pipelineand the sizes programme and pressure cut ratings. off Mr. Manafwa Jana Misisera District. made thesefollowing officers: Dr Wamasebu changesTherefore without due to consulting limited hisfunds, superiors the above yet the three changes hadGideon, Dr Okello Denis and Mr financialcontracts and were technical not implemented. implications contrary When to the Regulation SFG 105(8)Mwenyi Davis from the Contracts ofprogramme the LG (PPDA) was installed Regulations, in Financial 2006. Year 2007/2008, Committee for fraudulently approving 7. Thethe aboveContracts three Committee contracts weandre PDU submitted did not to approve Manafwa the revisedthe wrongful award of tender for BOQs.District TheContracts Contracts Committee Committee to consider and PDU variations explained in that theirconstruction of classrooms at Bwirussa approvalthe contract of theprices. second phase was based on deducting the amountPrimary School to New Mbale 2. inThe Phase Contracts I from Committee, the original Manafwacontract value District of Ugs. approved 847,652,804/=. Commercial Agencies in accordance 8. Theindividual Authority contract noted amendments that the contractor for the contractsimplemented of Phasewith 2 Regulation 16 of the LG (PPDA) usingNangalwe the and revised Sigunga BOQs. Primary The Schools deviations increasing from thethe approvedRegulations, 2006. engineeringtotal contract designs values were by 50%noted of as thefollows: original contracts 2. The Accounting Officer should ensure withouti. From the reservoir approval tank of Nothe 3 Authority, to Break Pressure contrary Tank to 12, that the the members of the Contracts Regulationcontractor 120 (12)laid of1175m the Local of 75mm Government HDPE PN (PPDA) 6 pipes contraryCommittee strictly comply with the Regulations,to the contract2006. which specified 75mm HDPE PN 10 pipesexisting procurement laws. 3. Initially,as per each the design school and had contractor’s attracted bid. one bidder, 3. The Senior Assistant Secretary, Mr renderingii. The section the procurement from BPT 12 non-competitive. to BPT 13 the contractor The laidBwayo Rogers should be subjected to Interim548m Procurement 63 mm HDPE Committee PN 6 irregularly pipes contrary approved to the contractdisciplinary action for communicating the contractwhich specified awards and 75 mm disregarding HDPE to the PN 6technical pipes as per award the decisions. evaluationdesign report and thewithout contractor’s providing bid. sound reasons. th 4. The Accounting Officer should advise 4. iii.In theFrom meeting BPT held13 the 10 contractor February laid 2006, 1948m the of Interim 63 mm HDPEthe Contracts Committee to ensure that ProcurementPN 6 pipes Committee contrary to (IPC), the contract Manafwa which Districtspecified 90 mmcontract variations above 25% of the irregularlyHDPE approved PN 6 pipes an as award per the of design Shs 31,164,349/= and contractor’s to bid.contract value are approved by the iv.M/s YemaFrom chainContractors age 4+175 and Suppliers.to chain age The 6+055 IPC the as contractorAuthority. stated laid in their63 mm minutes HDPE ignoredPN6 pipes the contrary evaluation to the report contract 5. whichManafwa District being a young recommendationspecified 90 and mm approved HDPE an PN award 10 to as a per bidder design and contractor’s bid. 9. The Authority in consultation of the report from M/s Warner Consultants who prepared the engineeringPage 18 of design 179 of Kikyo Gravity Flow Scheme noted that the changes in the pipe sizes and specifications would have significant impact on the intended objectives of the project.
Name of PDE: Subject of Investigation: Recruitment of Rural Financial Services Programme Administrator Unit & UCSCU Background: The GOU with loan funding from the International Fund for Agricultural Development (IFAD) was implementing the Rural Financial Services Programme (RFSP) and they wanted to use the funds to contract a consultant for recruitment of positions in the Rural Financial Services Programme (RFSP). M/s JAVA Consultants Ltd emerged the best evaluated bidder. However, M/s Dama Consultants were dissatisfied with the evaluation process and they wrote to the Accounting Officer, Rural Financial Services Programme, MoFPED, expressing concerns about the procurement process. MoFPED wrote back explaining the process that had been followed but the complainant expressed dissatisfaction and wrote to PPDA requesting it to carry out an investigation into the procurement process.
Page 47 of 179 Page 47 of 179 Findings: Recommendations:
1. The Rural Financial Services Programme (RFSP) received a no 1. MoFPED should ensure objection to the terms of reference (TORs) on 29th November 2007 that projects within their from the World Bank. Ministry are given 2. The Authority noted that under use of Consultants’ Qualification guidance on Selection (as prescribed by the Consultant’s Manual, World Bank), implementation of the which RFSP had set out to use, requires that upon evaluating the PPDA Act and EOIs, a shortlist of firms meeting the requirements is established Regulations, 2003. and from this shortlist, the best firm, with the most appropriate Procurements and qualifications and references would be selected. disposals under 3. The RFP should only have been sent out to the best firm, requesting programmes such as RFSP for a technical and financial proposal and thereafter invited to should be channeled negotiate the contract. From the evaluation results of the EOIs, through the MoFPED UNISIS scored highest and should have been the firm invited to procurement and disposal submit technical and financial proposals. structures such as the 4. In view of the above, the Authority finds that RFSP did not fully Accounting Officer, adhere to the requirements under use of Consultants Qualification Contracts Committee and Selection (CQS) as stipulated under paragraph 3.7 of the Guidelines Head of PDU unless on Selection and employment of Consultants by the World Bank delegation has been Borrowers. May 2004, Edition and in so doing, the evaluation and authorised in accordance award processes were not fully in accordance with the applicable with Regulation 39 of the legal provisions. PPDA Act, 2003. 5. Approvals from MoFPED Contracts Committee: In as much as 2. Procurements and this procurement was to be guided by World Bank procedures, disposals of RFSP is required to follow national procedures, Paragraph 3 of the Programmes/projects that Programme Loan Agreement states as follows “ procurement of fall within the arm pit of consultant services financed from the proceeds of the loan shall be the Ministry should be undertaken in accordance with the Borrower’s national channeled through the procedures, to the extent that they are consistent with the MoFPED procurement procedures of, and approved by, the cooperating Institution for the structures such as the procurement of consultant services for similar projects. In light of Accounting Officer, the above, it was observed that prior to the establishment of the Contracts Committee and delegated Contracts Committee; no approvals were obtained from the Procurement and the MoFPED Contracts Committee at the following stages: Disposal Unit as required o Advert for the EOI under the Public o The evaluation report for the EOIs procurement and Disposal o The terms of reference for the consultancy of Public Assets Act, 2003. o The bid document to be issued to bidders 3. Where MoFPED intends to o The shortlist of bidders to be invited delegate to the o The evaluation committee Programmes/projects, the o The technical, financial and combined evaluation report provisions under 6. Delegation of functions: The function of communicating award Regulations 62 to 74 of the decisions/ signing contracts is that of the Accounting Officer. The Public procurement and contract with M/s Java Consulting Ltd was signed by the RFSP Disposal of Public Assets Project Coordinator on behalf of the Client. There was however no Regulations, 2003, should evidence that this function had been delegated by the Accounting apply. officer to the Project Coordinator, contrary to Regulation 63 (1) 4. The RFSP through (c). MoFPED should make 7. Evaluation Criteria: The evaluation criteria in RFP did not include arrangements for the minimum qualifications required of each of the key professional procurement and disposal staff, rendering the evaluation criteria incomplete. For example, the training by PPDA of the
Page 48 of 179
Page 48 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. academicDuring the requirements, Financial Year professional 2005/2006, qualifications the Schools and 1. minimumThe Accountingdelegated Officer Contracts should experienceFacility Grant required (SFG) of programme each of th efunding key personnel was reduced should haveterminate been theCommittee appointments as well as of other the indicatedand the in programme the bid data sheet. cut offFailure Manafwa to specify District. such qualifications following staff officers: of RFSP Dr to Wamasebuenable the isTherefore bound to duelead to to subjectivity limited funds, at the evaluation the above stage three in additionGideon, to Drdifferent Okello players Denis and execute Mr Consultantscontracts were submitting not implemented. non responsive Whenbids. the SFG Mwenyi Davistheir from duties the as Contracts required 8. Noticeprogramme of bestwas evaluatedinstalled in bidder:Financial The Year notice 2007/2008, of best evaluatedCommittee forunder fraudulently the PPDA approving Act, bidderthe above was threeissued contracts more than we twore submittedmonths after to Manafwathe contract hadthe been wrongful 2003. award of tender for enteredDistrict Contracts into with Committee M/s Java Consultingto consider Ltd.variations The noticein ofconstruction best of classrooms at Bwirussa evaluatedthe contract bidder prices. is required to be displayed within five days ofPrimary the School to New Mbale 2. decisionThe Contracts of the Committee,CC to award Manafwa a contract District in accordance approved with Reg.Commercial 224 Agencies in accordance (1).individual Reg. 224(5 contract &6) amendments also requires for that the the contracts notice of is sent towith all Regulation 16 of the LG (PPDA) biddersNangalwe and and proof Sigunga of receipt Primary is obtained. Schools increasing the Regulations, 2006. total contract values by 50% of the original contracts 2. The Accounting Officer should ensure Namewithout of PDE: the Rakai approval District. of the Authority, contrary to that the members of the Contracts SubjectRegulation of Investigation: 120 (12) of Collection the Local of Government Trading Licences (PPDA) in KyoteraCommittee Town Council, strictly Rakai comply District. with the Background:Regulations,Rakai 2006. District was procuring a firm to collect Tradingexisting Licenses procurement for Kyotera laws. Town Council. M/s3. Initially, Nabbale Enterprises each school Ltd had wrote attracted to the CAO one Rakai bidder, District 3. The contesting Senior the Assistant results Secretary, after the best Mr evaluatedrendering bidder the notice procurement was displayed. non-competitive. When the CAO The failed toBwayo respond Rogers to M/s should Nabbale be subjected Enterprise’s to complaint,Interim they Procurement complained Committee to PPDA. irregularly approved disciplinary action for communicating Findings:the contract awards and disregarding the technical Recommendations:award decisions. evaluation report without providing sound reasons. th 1.4. InThe accordance Accounting with Officer Reg. should 120 (14, advise 15 1.4. ByIn the 13 th meeting February held 2009 10 at February 10.00 a.m, 2006, the the designated Interim andthe Contracts 16), the Committee contract to shouldensure that be closingProcurement time for Committee the tenders (IPC), for collection Manafwa of District trading nullifiedcontract variations and the procurement above 25% should of the licencesirregularly in Kyotera approved Town, an award as per of the Shs advert 31,164,349/= in The New to becontract re-tendered. value areThe approved contract between by the VisionM/s Yema of 22 Contractorsnd January and 2009, Suppliers. only one The firm, IPC M/s as theAuthority. District and M/s V.K. Transporters Nabbalestated in Enterprises their minutes had submitted ignored the a bid. evaluation report 5. wasManafwa illegally District constituted. being a In young other 2. Therecommendation Accounting Officer and approved issued an an awardaddendum to a on bidder 20th words, the contract is null and void February 2009, 7 days after the expiry of the deadline under the PPDA LG Regulations for submission contrary to Reg. 67 (6) which requires (2006). that any extension of the bidding periodPage is 18issued of 179where 2. The AO should take appropriate more than one third of the bidding period is remaining. disciplinary action against the Ag. 3. The Authority notes that the addendum was issued Head PDU, Mr. Charles Zimaze, for outside the designated period. Therefore, the addendum the following reasons:- th was invalid and all bids received after 13 February o Failure to conduct the pre-bid were irregularly received. The bids from M/s V.K meeting and bid opening as Transporters and M/s Kobs after were submitted scheduled contrary to Reg. 68 outside the designated date and time of submission. and 71; 4. M/s V.K. Transporters and M/s Kobs paid for the bids o Issuing an addendum without on 21/02/2009 and 4/03/2009 respectively and CC approval contrary to Reg. submitted their bids on 4th March 2009. This was 19 67(8); days after bid closure contrary to Reg. 70 (7 & 8) states o Failure to fulfill his that a bid that arrives at the location of submission after responsibilities as Head, PDU, the latest time and date for submission of bids shall not contrary to Reg. 25 (a, b, f, n, be accepted. The bid for M/s V.K. Transporters arrived p), Reg 25 (2c), Reg. 17(c) and after closure of bids and therefore it should not have Reg. 70(9); and been accepted, neither should it have been evaluated o Individually soliciting for bids and the bidder awarded the tender. Subsequently, the after closure of bid submission. bid for M/s V.K. Transporters was invalid and the 3. The AO should take appropriate district should not have entered into a contract with an disciplinary action against the illegal bidder. Equally, the contract signed with the M/s Evaluation Committee for awarding V.K. Transporters was illegal and therefore it is null wrong scores to bidders and for and void. mismanaging the evaluation process.
Page 49 of 179 Page 49 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 5.1. AlthoughDuring the the Financial CAO deniedYear 2005/2006, having received the Schools M/s 5.1. The AO Accounting should caution Officer the should CC Nabbale’sFacility Grant (SFG) letter/complaint, programme funding her was Secretary reduced membersterminate for the usurping appointments the powers of the of acknowledgedand the programme receipt of the cut letter. off Therefore, Manafwa there District. was thefollowing Evaluation officers: Committee Dr Wamasebu and for enoughTherefore evidence due to to limited implicate funds, the the District above officials three alteringGideon, the Dr evaluation Okello Denis report and contrary Mr particularlycontracts were the not AO implemented. for failure to Whenrespond the to SFG M/s toMwenyi Reg. 13. Davis from the Contracts Nabbale’sprogramme complaint. was installed The in Authority Financial notes Year that 2007/2008, the AO 6. TheCommittee Town for Clerk fraudulently should approving forthwith failedthe above to three investigate contracts M/s we re Nabbale’s submitted complaint to Manafwa as preparethe wrongful their work award plan and of submit tender it for to requiredDistrict Contractsunder Reg. Committee 14(g), hence to considerM/s Nabbale variations was not in theconstruction PDU for of classrooms incorporation at Bwirussa in the giventhe contract a fair hearingprices. by the CAO. consolidatedPrimary School procurement to New plan Mbaleat the 6.2. ThereThe Contracts were irregularities Committee, andManafwa inconsistencies District approved in the DistrictCommercial as per AgenciesReg. 62. in accordance evaluation.individual contract The bids amendments were not for subjected the contracts to the of 7. Thewith Regulation AO takes responsibility16 of the LG (PPDA) for the preliminaryNangalwe and examination, Sigunga Primary then technical Schools evaluationincreasing andthe mismanagementRegulations, 2006. of the procurement finallytotal contract financial values evaluation by 50% in ofaccordance the original with contracts the LG 2. processThe Accounting for the collectionOfficer should of Trading ensure Guidelines,without the 2008 approval and Reg. of 77(3). the Authority, contrary to Licensesthat the membersin Kyotera of Town the Contracts Council 7. TheRegulation CC usurped120 (12) of the the powers Local Government of the Evaluation (PPDA) contraryCommittee to Reg. strictly 14. comply with the CommitteeRegulations, by 2006. re-evaluating the bids contrary to (Reg. 8. Theexisting Permanent procurement Secretary, laws. Ministry of 3. 18Initially, (9) and each13(4) of school the LG had PPDA attracted Reg. 2006 one and bidder, Reg. 3. LocalThe Senior Government, Assistant Secretary, should take Mr 52rendering of the PPDA the Act procurement 2003 which non-competitive. states that where Thethe appropriateBwayo Rogers disciplinary should be action subjected against to CCInterim disagrees Procurement with the Committee PDU, it should irregularly reject approved or return Mr.disciplinary Edward actionGalabuzi, for CAO communicating Rakai, for the submission contract awards to the PDU and for disregarding review. the technical failingaward decisions. to investigate the complaint evaluation report without providing sound reasons. lodged by M/s Nabbale Enterprises th 4. The Accounting Officer should advise 4. In the meeting held 10 February 2006, the Interim contrarythe Contracts to Reg. Committee 14(g). to ensure that Procurement Committee (IPC), Manafwa District contract variations above 25% of the irregularly approved an award of Shs 31,164,349/= to contract value are approved by the M/s Yema Contractors and Suppliers. The IPC as Authority. 2.3 Contract Audits stated in their minutes ignored the evaluation report 5. Manafwa District being a young recommendation and approved an award to a bidder Name of PDE: Kampala City Council Subject of Investigation: Management of the Taxi Parks and Breach of Contract Agreement Between UTODA and Kampala City Council Page 18 of 179 Background: PPDA received a complaint from Commercial Taxi Owners Transport Development Association (COTODA) on the mismanagement of the taxi parks and breach of agreement between UTODA and KCC. Findings: Recommendations: 1. There were no documents for the procurement process, like x The Accounting Officer (i.e. procurement planning, initiation of bids, evaluation report Town Clerk-KCC) should and notice of award of best evaluated bidder notice on file. invoke clause 15 of the contract 2. Contracts Committee minutes were not available. and terminate the contract since 3. The process of awarding the contract to UTODA was not UTODA has committed a done in a competitive manner. breach as provided under clause 4. There were several letters and communication on file 15.1.1 on its monthly payment indicating that UTODA was not remitting the monthly dues obligations. Termination of the as required. The process was not cost effective considering contract should be in that the contractor was in arrears for a whole year. accordance with Local 5. There was no competition sought after every expiry of the Government (PPDA) UTODA contract contrary to procurement requirements. Regulation 120 (15) & (16) and 6. After expiry of the contract in 2000, the Secretary Tender clause 15 of the contract as Board, KCC advised that the contract is re-advertised with a signed on 5th December 2005 reserve price of 300 million but his advice was not and recover the balances owed implemented. by UTODA. 7. The Director Finance (Contract Manager) reviewed the x The Authority recommends that performance of UTODA contract and submitted a report three months notice of
Page 50 of 179 Page 50 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. recommendingDuring the Financial that the Yearrenewal 2005/2006, of the contract the Schools on condition 1. The termination Accounting be given Officer to UTODA should that:Facility Grant (SFG) programme funding was reduced terminateand the KCC appointments immediately of the and a. theAll programme arrears are fully cut paid off by Manafwa the expiry District. date of the followingcommences officers: on the Dr procurement Wamasebu Thereforecontract, due toif not, limited this ne funds,gates the the intended above renewal. three Gideon,process Dr Okello for the Denis management and Mr of contractsb. UTODA were notpays implemented.the contract sum When at least the two SFGmonths in Mwenyitaxi Davis parks from under the a competitive Contracts programmeadvance was asinstalled the council in Financial policy now Year requires. 2007/2008, Committeeprocess for that fraudulently should be approving finalized the abovec. UTODA three contractsdeposits a we bankre submittedguarantee, to equivalent Manafwa of two the wrongfulby the award elapse of of tender the three for District monthsContracts of theCommittee contract tosum; consider and variations in constructionmonths. of classrooms at Bwirussa the contractd. A new prices. contract is drawn putting in place more Primaryx KCC School should to ensure New that Mbale a 2. The Contractsfeasible Committee, ways of ensuring Manafwa that District the contractor approved does not Commercialprovision Agencies is included in accordance in the bid individualabscond contract from amendments any of the mandatory for the contracts duties. of with Regulationdocument 16 that; of the ‘eligibility LG (PPDA) to 8. DespiteNangalwe the and above, Sigunga the Mayor Primary and Schools the Town increasing Clerk went the ahead Regulations,participate 2006. in the bidding tototal renew contract the contract values bywhen 50% the of conditions the original recommended contracts 2. by The Accountingprocess is Officerfor all firms should and ensure their thewithout contract the manager approval were of not the fulfilled. Authority, contrary to that thecompany members directors of the that Contracts do not 9. AlthoughRegulation there 120 was(12) aof letter the Localon record Government informing (PPDA) UTODA of Committeeowe strictly KCC comply any outstanding with the theRegulations, renewal of 2006. the contract for 5 years dated 25/11/2005, and existingmoney procurement (debts)’. laws. 3. aInitially, meeting each held by school the Kampala had attracted District one Tender bidder, Board 3. on Thex SeniorIn order Assistant for KCC Secretary, to safeguard Mr 14/11/2005,rendering thethe record procurement of these minutes non-competitive. were not availed. The Bwayothe Rogers revenue should remittances, be subjected money to 10. TheInterim letter Procurement required that Committee UTODA indicates irregularly in approved writing within disciplinaryfrom the action taxis for should communicating be directly seventhe contract days if awardsthe conditions and disregarding (above) are acceptable the technical to them. award decisions.paid onto KCC account. Then Noevaluation response report was without seen providing on file. sound The reasons. communication to the obligation will be on KCC th 4. The Accounting Officer should advise 4. UTODAIn the meeting was signed held by 10 the February Secretary 2006,Kampala the Tender Interim Board the Contractsto pay Committee the contractor to ensure that the insteadProcurement of the Accounting Committee Officer. (IPC), Manafwa District contractmonthly variations dues above for enforcement. 25% of the 11. Theirregularly current approved contract an document award of between Shs 31,164,349/= KCC and UTODA to contractThis value should are be approved on agreed byclause the wasM/s an Yema extension Contractors of an already and Suppliers. existing contract, The IPC however as the Authority.in the contract. auditstated team in their could minutes not establish ignored if the the evaluation previous procurement report 5. Manafwax Given District the census being undertaken a young andrecommendation contracting process and approved was handled an award in to accordance a bidder with and the statistics from revenue procurement rules and procedures. on vehicles, it is clear that the 12. By August 2007, UTODA contract was not performing well number of taxis operating in the and a notice of termination of contractPage was 18 submitted of 179 to the country and more especially in Chairman of UTODA by the Town Clerk. However, the Kampala City has increased. contract was not terminated after the intervention of the This calls for revision of Minister of Local Government in a meeting convened monthly fees to be paid to KCC. between UTODA and KCC on 13/09/2007 with new x The Town Clerk should always deadlines. ensure that a performance 13. Four months after the notice of termination of the UTODA security is issued by the contract, KCC made a report on the UTODA performance awarded bidder before the from July 2007 to November 2007, to the Permanent contract is signed in accordance Secretary MOLG. The reports pointed out UTODA owed with the provisions of KCC Shs.2,331,546,000. Over the same period, UTODA paid Regulation 102 of the Local Shs.386.7 million out of the expected arrears of Shs.520 Government (PPDA) million. Regulations, 2006. 14. The Authority also noted that the Minister of Local Government in a letter dated 14/12/2007 informed UTODA Chairman that “Unless you make a deliberate and serious effort to pay arrears of Shs.2,308,346,000 to KCC within three months, I shall be left with no option but to advise KCC to terminate your contract and we shall not discuss this matter with you any more” the Minister concluded. However, performance of UTODA from July 2007 – March 2008 showed that UTODA still owed KCC 2.165 billion and the contract was still running.
Page 51 of 179 Page 51 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 15.1. UTODADuring theChairman Financial later Year wrote 2005/2006, to KCC Town the SchoolsClerk in May1. The Accounting Officer should 2008Facility requesting Grant (SFG) for reconciliationprogramme funding of contract was reduced payments. It terminate the appointments of the wasand stated the in programme the letter that cut UTODA off Manafwahad cleared District. all their dues following officers: Dr Wamasebu forTherefore January, due February to limited and funds,March the 2008. above However, three the Gideon, Dr Okello Denis and Mr Authoritycontracts noted were that not not implemented. all the amounts When due for the above SFG dates Mwenyi Davis from the Contracts wereprogramme paid. was The installed Authority in notesFinancial that Year the 2007/2008, accumulation of Committee for fraudulently approving unpaidthe above amounts three was contracts a breach were of submittedclause 3 of to the Manafwa contract that the wrongful award of tender for requiredDistrict ContractsUTODA toCommittee pay the Councilto consider a monthly variations contract in fee construction of classrooms at Bwirussa ofthe Shs.290,000,000. contract prices. Primary School to New Mbale 16.2. The AuthorityContracts wasCommittee, presented Manafwa with documents District approvedshowing that a Commercial Agencies in accordance positionindividual was contract reached amendments between KCC for andthe contracts UTODA to of remit with Regulation 16 of the LG (PPDA) Shs.96Nangalwe million and Sigunga monthly Primary on arrearsSchools inincreasing addition the to the Regulations, 2006. contractedtotal contract monthly values amount by 50% of Shs.290 of the original million. contracts 2. The Accounting Officer should ensure 17. Anwithout account the of approval the remittances of the Authority, to KCC from contrary Jan 2008-Aug to that the members of the Contracts 2008Regulation was 120 presented (12) of tothe the Local Authority Government and the(PPDA) following Committee strictly comply with the observationsRegulations, 2006.were made: existing procurement laws. 3. Initially,e. Shs.652.2 each school million had was remitted attracted for one the bidder,8 months 3. on The Senior Assistant Secretary, Mr renderingarrears the instead procurement of Shs.768 non-competitive. million leaving a Thedeficit of Bwayo Rogers should be subjected to Interim Shs.115.8 Procurement million Committee on what irregularlywas expected approved to be paid on disciplinary action for communicating the contractarrears. awards and disregarding the technical award decisions. evaluationf. Out report of 2,320,000,000without providing expected sound reasons. for the 8 months th 4. The Accounting Officer should advise 4. In the meetingremittances held on 10 the February contract 2006, monthly the Interim payments, the Contracts Committee to ensure that ProcurementShs.2,011,113,500 Committee (IPC),was paid Manafwa leaving District a deficit of contract variations above 25% of the irregularlyShs.308,886,500. approved an award At this of Shs rate, 31,164,349/= UTODA needs to not contract value are approved by the M/s Yemaless than Contractors 32 months and to Suppliers.clear the outstanding The IPC arrears. as Authority. statedg. inThe their Authority minutes concludedignored the that evaluation UTODA report failed 5. to Manafwa District being a young recommendationfulfill their and obligations approved on an the award contract to a payment bidder and payments on arrears. 18. The Authority also noted that the taxi operators pays the money into a UTODA account Page and not18 of KCC 179 account. Therefore, it is upon UTODA to decide from the monthly collections how much is to be remitted to KCC.
Name of PDE: Ministry of Education and Sports Subject of Investigation: Supply of Various Goods for the Establishment of 24 Seed Secondary Schools by Ministry of Education and Sports Background: The Ministry of Education received funds from ADB under the Support to the Post Primary, Education and Training project for the establishment of 24 new Seed Secondary Schools and 1 Special Needs School. The Ministry of Education invited prospective bidders for civil works tenders (construction of new schools) in 7 Lots at the same time tenders for supplies (laboratory reagents – lot 1, laboratory equipment –lot 2, furniture – 3 and textbooks lot 4-7) in 7 lots to equip the schools on completion of construction. PPDA received a complaint from DRC Medical requesting for a review of bids.
Findings: Recommendations: 1. The Authority established that the planning and procurement x The terms and conditions of process for the support of the establishment of the new 25 Seed the signed contract between Secondary Schools was carried out in accordance with ADB the Ministry of Education Rules of Procedure for the Procurement of Goods and Services. and Streamline Services However, it is required that where the provisions of the PPDA Limited should be adhered Act do not conflict with the provisions of the financing to.
Page 52 of 179 Page 52 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. agreement,During the the Financial procuring Year Entity 2005/2006, would at the the same Schools time apply1. Thethe x AccountingThe Authority Officer will conduct should a PPDAFacility rulesGrant and (SFG) regulations. programme Having funding a fullywas reduced signed evaluationterminate performance the appointments audit for ofall the reportand the by the programme members of cut the off evaluation Manafwa team District. was an omissionfollowing 7 officers: lots of civil Dr works Wamasebu and 7 committedTherefore during due to the limited procurement funds, process. the above three Gideon, Drlots Okelloof supplies Denis in all and the Mr25 2. Thecontracts Authority were established not implemented. that the funding When agreement the SFG stated thatMwenyi beneficiary Davis from schools the Contracts not later theprogramme procurement was installedwill be managed in Financial by the Year rules 2007/2008, of ADB. This wasCommittee than for March fraudulently 2009. approving notthe abovein the bidding three contracts document we reissued submitted but was to stated Manafwa in the publicthe wrongful award of tender for bidDistrict notice Contracts issued inCommittee the East to African consider Newspaper variations section in 4 thatconstruction of classrooms at Bwirussa statedthe contract that “The prices. Instructions to bidders and general conditionsPrimary of School to New Mbale 2. theThe contractContracts containedCommittee, in Manafwa the bidding District documents approved for GoodsCommercial Agencies in accordance complyindividual with contract the Bank’s amendments standard for Bidding the contracts Documents of for with the Regulation 16 of the LG (PPDA) procurementNangalwe and of Sigunga Goods, Primary July 2000”, Schools thus, increasing the request the for Regulations, an 2006. administrativetotal contract valuesreview byunder 50% the of PPDA the original rules was contracts in conflict 2. withThe Accounting Officer should ensure Sectionwithout 4 the of approval the PPDA of Act, the 2003, Authority, hence contrary the ADB to complaints that the members of the Contracts procedureRegulation should 120 (12) have of been the Localapplied. Government (PPDA) Committee strictly comply with the 3. TheRegulations, Authority 2006. established that ADB rules on notificationexisting to procurement laws. 3. unsuccessfulInitially, each bidders school was communicated had attracted after one signing bidder, of contract3. The Senior Assistant Secretary, Mr andrendering receiving the of procurement performance non-competitive. guarantee from the The successfulBwayo Rogers should be subjected to bidderInterim as Procurement in section 3.4.1 Committee of the ADB irregularly rules of procedure. approved disciplinary action for communicating 4. Thethe contract Authority awards established and disregarding that the contract the technical for supply award and decisions. deliveryevaluation of report laboratory without equipment providing was sound conducted reasons. under the ADB th 4. The Accounting Officer should advise 4. procurementIn the meeting rules held of 10 procedure February that 2006, were followedthe Interim as required.the Contracts Committee to ensure that NoProcurement objection ofCommittee the bid document (IPC), Manafwa and evaluation District report wascontract variations above 25% of the receivedirregularly from approved ADB. an award of Shs 31,164,349/= to contract value are approved by the 5. TheM/s complainant Yema Contractors failed on and original Suppliers. registered The or IPC notarised as PowerAuthority. ofstated Attorney in their to minutesthe signatory ignored of the bidevaluation with sample report signature,5. Manafwa District being a young sincerecommendation it was the requirement and approved in the an bid award document. to a bidder The Authority did not find merit in the complaint by DRC Medical.
Name of PDE: Ibanda District Page 18 of 179 Subject of Investigation: Construction of Ibanda Town Water Supply and Sanitation Scheme-Pipeline & Building Works Background: The Authority conducted an investigation into the evaluation process for the construction of Ibanda Town Water Supply and Sanitation Scheme where M/s Block Technical Services was awarded a tender at an estimated value of UGX 2,552,224,382/=. As a follow-up, a contract audit was instituted to review its implementation and performance. Findings: Recommendations: 1. The Authority observed that WSDF, a project under 1. The AO should ensure that he MOWE, should have used the Ministry procurement spells out the extent of delegation structures, namely, AO, CC and PDU for this procurement of his procurement functions to the rather than the structures of Ibanda District since these did Facility Manager-WSDF and to the not have delegated authority from the Accounting Officer, Districts in accordance with Reg. MOWE. 62(a)(ii) of the PPDA Reg. 2003. 2. The Project Manager explained that the use of District 2. Contract out the procurement procurement structures was allowed in the financing functions of the Ministry’s CC, agreement between the WSDF and Federal Republic of PDU, or user department to the Austria. There was no evidence availed to the audit team to respective District procuring and collaborate this. disposing entities in accordance 3. The signed contract was between GOU represented by with Reg. 62(b)(i) of the PPDA MOWE, and the provider. However, the CAO Ibanda and Reg. 2003. The AO is advised to the Facility Manager, Herbert Nuwamanya, signed the also refer to Regulations 75,78 and contract without delegated authority from the Permanent 79 of the PPDA Reg. 2003.
Page 53 of 179 Page 53 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1. Secretary,During the MOWE. Financial Year 2005/2006, the Schools 1. 3.The The Accounting Manager, Officer WSDF should 4. TheFacility Facility Grant (SFG) Manager programme kept the funding contract was managementreduced terminateensure the that appointments all contracts of arethe recordsand the and programme none of them cut were off at Manafwa the PDU. This District. implied followingexecuted officers: in accordance Dr Wamasebu with the thatTherefore the Entity due to was limited not funds, abreast the with above the three project Gideon,terms Dr and Okello conditions Denis specified and Mr in implementation.contracts were not implemented. When the SFG Mwenyithe contract. Davis from the Contracts 5. Atprogramme the time was ofinstalled investigation in Financial (September Year 2007/2008, 2008), the 4.CommitteeIt was for recommended fraudulently that approving upon contractorthe above threehad completed contracts we there project submitted and to the Manafwa works were the receipt wrongful of award this of report, tender thefor underDistrict the Contracts defects liability Committee period. to consider variations in constructionAccounting of classrooms Officer, MOWE at Bwirussa was 6. Thethe contract construction prices. works were properly executed and Primaryto organise School a meeting to New between Mbale the 2. accordingThe Contracts to the Committee, technical specifications,Manafwa District drawings, approved bills of CommercialMinistry and Agencies PPDA into discuss accordance and quantitiesindividual and contract conditions amendments of contr act for as the per contractssigned contract. of withstreamline Regulation 16 the of the procurementLG (PPDA) ThereNangalwe were and no Sigunga defects detectedPrimary Schools by the auditincreasing team the for the Regulations,linkages 2006. among the Ministry, the componentstotal contract inspected. values by 50% of the original contracts 2. The LocalAccounting Governments Officer and should WSDF. ensure 7. Thewithout contract the completion approval of date the was Authority, illegally extended contrary which to that the members of the Contracts resultedRegulation into 120 failure (12) of to the evoke Local theGovernment liquidated (PPDA) damages’ Committee strictly comply with the clause.Regulations, 2006. existing procurement laws. 8.3. ThereInitially, was eachfailure school of the contract had attracted to provide one the bidder, insurance 3. The Senior Assistant Secretary, Mr coverrendering in joint the names procurement of the employer non-competitive. and the contractor The Bwayo Rogers should be subjected to contraryInterim Procurementto clause 13 of Committee the general irregularly conditions approvedof contract. disciplinary action for communicating the contract awards and disregarding the technical award decisions. evaluation report without providing sound reasons. th 4. The Accounting Officer should advise Name4. In of the PDE: meeting Ministry held of 10 Education February & Sports 2006, the Interim the Contracts Committee to ensure that SubjectProcurement of Investigation: Committee Construction (IPC), of Manafwa Sampled DistrictSeed Secondary contract Schools variations by Ministry above of Education 25% of the & Sportsirregularly approved an award of Shs 31,164,349/= to contract value are approved by the Background:M/s YemaPPDA Contractors received and complaints Suppliers. from Thevarious IPC individua as lsAuthority. citing irregularities in the construction of Seedstated Secondary in their minutesSchools by ignored Ministry the of evaluation Education report and Sports5. Manafwa (MoES). The District major beingareas of a concern young includedrecommendation unrealistic high and rates approved for these an awardprojects, to lack a bidder of compliance to the terms and conditions of the contract between the MoES and the contractors, sub-contracting of contracts and poor supervision of works. Page 18 of 179 Findings: Recommendations:
1. There was minimal involvement of the Districts by the parent 1. The Accounting Officer/ Ministry during the construction of seed schools. The Districts Permanent Secretary should were only involved at the initiation stage to agree on the sites caution the Assistant but District Engineers were not used in developing the bills of Commissioner in charge of the quantities (BOQs). Construction Unit for poor 2. The Ministry did not release the BOQs and the contracts for the supervision of this contract. construction works to the District Engineers and/or the 2. Districts, as user departments Districts. As a User Departments, the role of the District or and direct beneficiaries, should supervision by the District Engineer was minimal because they be involved in the initiation of did not have the BOQs/contract(s) for the works. Contract the procurements in management therefore was mainly the role of the Ministry. accordance with Section 34 3. Although Section 7 of the General Conditions of the contract (b&c). spelt out that “the contractor may subcontract with the approval 3. Contract management should of the project manager…’’ it did not state that all the works can be transferred to the user be subcontracted. Lack of technical personnel was a big department in accordance with challenge to the Ministry. Most contractors lacked qualified Reg. 258 and Section 34 personnel to carry out the job and even when work was sub- (g,h,i,j) of the PPDA Act, contracted, the Ministry found it hard to reprimand the 2003. The appointed contract Contractors because they denied the accusation that they were managers should always stick sub-contracting. to the terms and conditions of
Page 54 of 179 Page 54 of 179 4. To-date, no works have been executed by M/s China Nanjing same recommendation made International Ltd, another contractor in the names of M/s SMB by IGG in 2004. International Ltd was procured and he is on site. x The Accounting Officer should 5. The Authority inspected the documents at the District and it caution the Contracts was observed that the District did not have any documentation Committee members for as far as the contract with M/s China Nanjing was concerned, making retrospective approval apart from four letters of correspondence between the decisions. contractor and the District. There was no record of the contract x The Entity should seek for agreement and payment records at all on file contrary to training in areas of contracting Regulations 46(1) and Regulations 121 of Local Government and contract management so (PPDA) Regulations, 2006. that performance of future 6. Without terminating the contract for the construction of the contracts can be enhanced and Council Chambers with M/s China Nanjing International Ltd, also ensure strict compliance the District has engaged another contractor on the same to signed contracts. contract. 7. The contract for construction of the Council Chambers for Pallisa District resulted into a financial loss of Ushs 28,265,859/= to Government.
Name of PDE: Manafwa District Subject of Investigation: Construction of Nangalwe, Bwirussa & Sigunga Primary Schools Background: PPDA was requested by the Chief Administrative Officer, Manafwa District Local Government, to conduct an independent investigation into the contracts for construction of classrooms in three primary schools namely; Nangalwe, Bwirussa and Sigunga Primary Schools in Manafwa District. Findings: Recommendations: 1.4. DuringSome contractors the Financial did not Year use the 2005/2006, recommended the Schoolsmaterials stated1. The Accountingthe contracts. Officer should Facilityin the bid Grant document. (SFG) programme There was funding no evidence was reduced on file that theterminate 4. The the Ministry appointments should develop of the andsupervising the programme engineer authorized cut off the Manafwa changes. District. There was nofollowing thresholds officers: Dr in Wamasebu their Thereforeevidence to dueprove to that limited the supervising funds, the engineer above had three raised theGideon, procurements Dr Okello Denis whereby and huge Mr contractsobservations. were This not was implemented. noted as likely poor When contract the SFG supervision Mwenyi projects Davis above from a thecertain Contracts figure programmeon the part ofwas the installed ministry in to Financial which caution Year 2007/2008, should be taken atCommittee are for handled fraudulently by the approving Ministry thetime above of certification three contracts of the works. were submitted to Manafwa the wrongfulwhile award the district of tender handles for 5. DistrictThe building Contracts materials Committee used duringto consider the construction, variations in e.g sandconstruction smaller of classroomsprojects. at Bwirussa theand contract bricks, prices. were sub-standard. This led to shaky and weakPrimary 5. The School Ministry to should New come Mbale up 2. Thewalls Contracts especially Committee, when pressure Manafwa was exerted District by approvedthe audit team. Commercialwith Agencies agreed standards in accordance for 6. individualThe District contract Engineers amendments were not fully for involved the contracts by the of Ministry with Regulationworks such 16 of that the theLG (PPDA) districts Nangalweand therefore and could Sigunga not takePrimary full supervisionSchools increasing of the construction the Regulations, are 2006. given the autonomy to totalof seed contract schools. values For this by reason, 50% of the the District original also contracts could not2. takeThe Accountingimplement Officer projects should while ensure the withoutownership the and approval this was of seen the Authority, to be more contrary of the Ministry’sto that theMinistry members plays of thea supervisory Contracts RegulationProject. 120 (12) of the Local Government (PPDA) Committeerole. strictly comply with the Regulations, 2006. existing procurement laws. 3. Initially, each school had attracted one bidder, 3. The Senior Assistant Secretary, Mr 2.4 rendering Follow-ups the on procurement Procurement non-competitive. Audit and Investigation The RecommenBwayo Rogersdations should be subjected to Interim Procurement Committee irregularly approved disciplinary action for communicating The theAuthority contract planned awards to conduct and disregarding procurement the audit technical and investigation award follow-up decisions. in 24 entities. However, the Authorityevaluation conducted report without thirty providing four (34) soundfollow-up reasons. activities as indicated here below:- th 4. The Accounting Officer should advise 4. In the meeting held 10 February 2006, the Interim the Contracts Committee to ensure that The Procurementperformance rating Committee of the follow-up (IPC), Manafwawas calculated District using the formulaecontract below: variations above 25% of the irregularly approved an award of Shs 31,164,349/= to contract value are approved by the M/s YemaNo. of Contractors recommendations and Suppliers. implemented The by IPC the entity as Authority. X 100% stated inTotal their No. minutes of recommendations ignored the evaluationissued to the report entity 5. Manafwa District being a young recommendation and approved an award to a bidder Performance Rating Above 80% Highly Satisfactory (HS) 60 – 79% Satisfactory (S) Page 18 of 179 40 – 59% Moderately Satisfactory (MS) Below 40% Unsatisfactory (U)
2.4.1 Procurement Audits
KABALE HOSPITAL Of the 13 recommendations made to Kabale Hospital, 5 (38%) recommendations were implemented, 6 (47%) were not implemented and 2 (15%) were partially implemented. The recommendations that were not/not fully implemented were: x The Senior Hospital Administrator still carried out functions of the PDU. x There was no evidence that the Accounting Officer had cautioned the Senior Hospital Administrator as regards interfering in the procurement process. x The bidding documents still did not contain the evaluation criteria. x The entity was still not using the PPDA Standard Bidding documents. x Procurement referencing was still lacking.
Page 55 of 179 Page 55 of 179 Kabale Hospital
50 40 30 Series1 20 10 Percentage of Percentage
recommendations 0 Implemented Not Partially implemented implemented Status of implementation
BUTABIKA HOSPITAL Of the 7 recommendations made, Butabika Hospital implemented 6 (86%) of the recommendations, while 1 (14%) was not implemented. These were recommendations that were to be effected in January 2009. These included framework contracts for supply of non medical sundries on emergencies and direct procurements, framework contract for supply of foodstuffs.
Butabika hospital
10 0 90 80 70 60 50 Series1 40 30 20
percentage of 10
recommendations 0 Imp lement ed No t imp lement ed Part ially imp lement ed status of implementation
Page 56 of 179
Page 56 of 179 NATIONAL SOCIAL SECURITY FUND Thirteen recommendations were made from the findings for the audit. All recommendations (100%) were fully implemented.
National Social Security Fund
120 100 80 60 Series1 40
Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented implemented Status of implementation
MINISTRY OF WATER, LANDS AND ENVIRONMENT A number of recommendations were made. In total, 80 recommendations were made to the then Ministry of Water, Lands and Environment and all 80 recommendations (100%) were reported to have been implemented.
Ministry of Water and Environment
120 100 80 60 Series1 40
Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented implemented Status of implementation
Page 57 of 179
Page 57 of 179 UGANDA COMMUNICATIONS COMMISSION The Authority noted that UCC had implemented 8 (100%) of the recommendations from the audit findings.
Uganda Communications Commission
120 100 80 60 Series1 40
Percentage of Percentage 20
recommendations 0 Implemented Not Partially implemented implemented Status of implementation
MINISTRY OF EDUCATION AND SPORTS Of the 8 recommendations made, the ministry had only implemented 4 (50%) and not implemented 4 (50%).
Ministry of Education and Sports
60 50 40 30 Series1 20
Percentage of Percentage 10 recommendations 0 Implemented Not Partially implemented implemented Status of implementation
Page 58 of 179
Page 58 of 179 UGANDA PRISONS Of the 12 recommendations made, Uganda Prisons implemented 10 (92%) of the recommendations and did not implement 1 (8%).
Uganda Prisons
100
80
60 Series 1 40
Percentage of Percentage 20 recommendations 0 Implemented Not implemented Partially implemented Status of implementation
GULU REGIONAL REFERRAL HOSPITAL Of the 13 recommendations, Gulu Regional Referral Hospital implemented 3 (23%), 7 (53.8%) were not implemented while 3 (23%) were partially implemented. PPDA observed that: x The entity had not prepared the procurement plan for FY 2007/08; x Non pre-qualified providers continued to be invited to bid; x the hospital did not pre-qualify providers to supply meals, rubbish collection and computer servicing; x The Accounts Department continued to perform some functions of the PDU; x The purchase of fuel was still not handled by the PDU; x The entity had only six (6) complete procurement action files; x Contracts Committee proceedings were not recorded as required by Reg. 53; x The PDU did not have a notice board specific to procurement and disposal information. x The entity had not yet requested for specialized training from the Authority.
Gulu Regional Hospital
60 50 40 30 Series1 20 10 Percentage of Percentage
recommendations 0 Implemented Not Partially implemented implemented Status of implementation
Page 59 of 179
Page 59 of 179 NATIONAL DRUG AUTHORITY The Authority observed that the entity implemented all the audit recommendations and its percentage rating in terms of implementation status was 100%.
National Drug Authority
120 100 80 60 Series1 40
Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented implemented status of implementation
MINISTRY OF HEALTH The Authority observed that the Ministry implemented 12 (86%) of the audit recommendations and did not recommend 2 (14%). Areas of action not implemented included:- x The Ministry had not responded to the audit report despite numerous reminders from PPDA; and x The Ministry made changes to a contract after it had been cleared by the Solicitor General without issuing an addendum. PPDA requested for an addendum to the contract from the entity but this had not been submitted.
Ministry of Health
100 80 60 Series1 40 20
Percenatage of Percenatage 0 recommendations Implemented Not Partially implemented implemented Status of implementation
Page 60 of 179
Page 60 of 179 NATIONAL MEDICAL STORES The Authority noted that National Medical Stores implemented 10 (91%) of the recommendations and did not implement 1 (9%) of the recommendations. The following, however, was still pending:- x The Head of Stores, Marketing and Operations who is responsible for identification of requirements and quantification of drugs was still the Chairman of the Contracts Committee.
National Medical Stores
100
80
60 Series1 40
Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented implemented Status of implementation
MINISTRY OF AGRICULTURE, ANIMAL INDUSTRY AND FISHERIES
It was observed that the Ministry implemented 9 (64%) of the action areas recommended by the PPDA. However, the following audit recommendations were still pending:- x The Accounting Officer did not caution the Project coordinators of the following projects for meddling in the Ministry’s procurement process – Plan for Modernisation of Agriculture, North West Small Holder Agriculture Development Project and Animal Production and Marketing. x The Project Co-coordinator of Vegetable Oil Development Project did not submit a report to PPDA concerning the procurement of sun flower seeds as requested.
Ministry of Agriculture, Animal Industry and Fisheries
70 60 50 40 Series1 30 20
Percentage of Percentage 10
recommendations 0 Implemented Not Partially implemented implemented Status of recommendations
Page 61 of 179
Page 61 of 179 UGANDA BUREAU OF STATISTICS
Uganda Bureau of Standards had implemented 6 (86%) of the recommendations. However invoices especially for micro procurement were still not available on file.
Uganda Bureau of Statistics
100
80
60 Series1 40
Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented implemented Status of implementation
2.4.2 Investigations
KYAMBOGO UNIVERSITY -Investigation into the procurement of computers and accessories. Of the 3 recommendations made from the findings of the investigation. All recommendations 3 (100%) were fully implemented.
Kyambogo University
120
100
80
60 Series1
40
20
0 Percentage of Percentage recommendations Implemented Not Partially implemented Status of implementation
Page 62 of 179
Page 62 of 179 JINJA MUNICIPAL COUNCIL - Tender for management and collection of revenue for Day Street Parking Out of the six recommendations made arising out of the investigation findings, 5 (83.3 %) were Implemented. The recommendation requiring the Accounting Officer to caution the Contracts Committee members for abdicating their duty of authorizing the solicitation document before issue had not been implemented.
Jinja Municipal Council
90 80 70 60 50 Series1 40 30 20 10 0 Percentage of Percentage recommendations Implemented Not Partially implemented Status of implementation
JINJA MUNICIPAL COUNCIL – Complaint by M/s Lorn on tendering process of Abattoir and Bus Park Three recommendations were made to Jinja Municipal Council regarding this investigation. All three recommendations (100%) were implemented by the Municipal Council.
Jinja Municipal council - m/s lorn
120
100
80
60 Series1
40
20
0 Percentage of Percentage recommendations Implemented Not Partially implemented Status of implementation
Page 63 of 179
Page 63 of 179 TORORO MUNICIPAL COUNCIL - Investigation for tender for revenue collection from Taxi and Bus Park Three recommendations were made to Tororo Municipal Council regarding this investigation. Two recommendations (66.6%) were implemented by the Municipal Council. These were to re-advertise the tender for revenue collection from Tororo Municipal Taxi and Bus Park and in the interim take over collection of revenue from the taxi park and bus park. There was no evidence that the Permanent Secretary, MoLG had taken disciplinary action against the Ag. Town Clerk for signing a contract with an illegal company.
Tororo municipal council
70
60
50 40 Series1 30 20
10 0 Percentage of recommendations of Percentage Implemented Not Partially implemented Status of implementation
KANUNGU DISTRICT – Kihihi Town Council - Management Contract for Water Supply System for Kihihi Town Council
Two recommendations were made and these were fully implemented by the Town Council.
Kanungu district
120 100 80 60 Series1 40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
Page 64 of 179
Page 64 of 179 RUKUNGIRI DISTRICT - Sale of Rukungiri Inn and Associated plots
Five recommendations were made and all five had been fully implemented by the District.
Rukungiri district
120
100 80 60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
KABALE MUNICIPAL COUNCIL – Management of Taxi/Bus Park Three recommendations were made and all three have been fully implemented by the Council.
Kabale municipality
120
100 80 60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
Page 65 of 179
Page 65 of 179 MBARARA MUNICIPAL COUNCIL - Tender to enforce property rates
Three recommendations were made and all three have been fully implemented by the Council. However the Accounting had not communicated to the Authority on the status of the recommendations as required under Regulation 5(4) of the LG (PPDA) Regulations, 2006.
Mbarara municipal Council
120
100 80 60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
KAMWENGE DISTRICT - Procurement of a provider for completion of Kamwenge Town Council Offices Three recommendations were made and all three have been fully implemented by the Council.
Kamw enge district Local Gov't
120
100 80
60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
Page 66 of 179
Page 66 of 179 KOBOKO DISTRICT LOCAL GOVERNMENT - Koboko Town Council: Tender for Revenue Collection from Grade ‘A’ Markets Three recommendations were made and all three have been fully implemented by the Council.
Koboko District Local Gov't
120
100 80 60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
MINISTRY OF EDUCATION AND SPORTS - Investigation on the tender for construction of Kiyuya Seed Secondary School, Masindi District.
Three recommendations were made and all three have been fully implemented by the Ministry.
Ministry of Education and Sports
120
100 80
60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
Page 67 of 179
Page 67 of 179 UGANDA NATIONAL EXAMINATIONS BOARD - Investigation into the procurement of UACE certificates.
Three recommendations were made and all three have been fully implemented by UNEB.
Uganda National Examinations Board
120
100 80 60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
NEBBI DISTRICT LOCAL GOVT - Investigation of the tender for revenue collection from landing sites in Pakwach Town Council
Four recommendations were made and all have been implemented by the entity.
Nebbi District Local Gov't
120
100 80
60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
Page 68 of 179
Page 68 of 179 MOYO DISTRICT LOCAL GOVT - Investigation of the Tender for the Operation and Management of Moyo Town Council Taxi/Bus Park
Three recommendations were made. One recommendation (33.3 %) was implemented, while two (66.6%) were not. These were; the Chief Administrative Office, Moyo District Local Government did not reprimand the Town Council Planning Committee members and the Ag. Town Clerk, Mr. Leku Samuel for usurping the functions of the Contracts Committee and the Accounting Officer respectively. Also not implemented was Accounting Officer, Ministry of Local Government taking disciplinary action against Mr. Tabu Job (Currently Assistant CAO) for conflict of interest in the award of tender for renovation of office block.
Moyo District LG
80 70 60 50 40 Series1 30
Percentage of Percentage 20
recommendations 10 0 Implemented Not Partially implemented Status of implementation
MITYANA DISTRICT LOCAL GOVT - Investigation of the Tender for Management and Collection of Revenue from Mityana Taxi/Bus Park
The two recommendations made in the report had not yet been implemented.
Mityana District Local Gov't
120
100 80 60 Series1
40 Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
Page 69 of 179
Page 69 of 179 PALLISA DISTRICT LOCAL GOVT – Construction of Office Block by Pallisa District Local Government
Five recommendations were made. Two recommendations (40%) were implemented, while three (60%) were not. These were; the Permanent Secretary, Ministry of Local Government did not take appropriate disciplinary action against the Chief Administrative Office, Mr. Musobya Kiganda Abdullah for failure to implement the same recommendations made by IGG in 2004. The advanced payment to China Nanjing International has never been recovered and the contract has never been terminated.
Pallisa District Local Government - construction of office block
70 60 50 40 Series1 30 20 Percentage of Percentage 10 recommendations 0 Implemented Not Partially implemented Status of implementation
PALLISA DISTRICT LOCAL GOVT – Construction of a Maternity Ward at Kakoro Health Centre by Pallisa District Local Government
Four recommendations were made. Three recommendations (75%) were implemented, while one (25%) was not. The AO did not take appropriate disciplinary action against Mr. Hibbombo Kainan, the Head of PDU, but instead elevated him to become the Sub-County Chief in the District. The Authority was concerned that the District had not considered Mr. Hibbombo’s past performance but instead gave him more powers and independence by controlling the sub-county’s budget.
Pallisa District Local Government - construction of maternity w ard
80 70 60 50 40 Series1 30 20 Percentage of Percentage 10 recommendations 0 Implemented Not Partially implemented Status of implementation
Page 70 of 179
Page 70 of 179 MBALE DISTRICT LOCAL GOVT – Construction of a Gravity Flow Scheme in Mbale District LG
Six recommendations were made. Five recommendations (83.3%) were implemented, while one (26.7%) was not. The Accounting Officer did not inform the Authority on the implementation of the recommendations within 10 (ten) working days after receipt of the report.
Mbale District Local Government - construction of gravity flow scheme
90 80 70 60 50 Series1 40 30
Percentage of Percentage 20
recommendations 10 0 Implemented Not Partially implemented Status of implementation
BUKEDEA DISTRICT LOCAL GOVT – Revenue collection from Bukedea Grade A Market
Three recommendations were made. One recommendation (33.3%) was implemented, while two (66.7%) were not. These were; the entity did not have any procurement action file at the time of the follow-up. Also to note was that they were no procurement structures in place and no PDU staff had been recruited.
Bukedea district local gov't Revenue collection from Bukedea Grade A Market
80 70 60 50 40 Series1 30 20 Percentage of Percentage 10 recommendations 0 Implemented Not Partially implemented Status of implementation
Page 71 of 179
Page 71 of 179 SIRONKO DISTRICT LOCAL GOVT – Revenue collection from Buteza Grade A Market
Eight recommendations were made. Six recommendations (75%) were implemented, while two (25%) were not. These were; the Sub-county chiefs were still signing contracts on behalf of the AO without delegated authority and the AO was awarding tenders before the expiry of the best evaluated bidder notice.
Sironko District Local Government
80 70 60 50 40 Series1 30 20 Percentage of Percentage 10 recommendations 0 Implemented Not Partially implemented Status of implementation
MBALE MUNICIPAL COUNCIL – Revenue collection from Mbale Main Taxi Park
Seven recommendations were made and all of them implemented.
Mbale municipal council
120 100 80 60 Series1 1 40
Percentage of Percentage 20 recommendations 0 Implemented Not Partially implemented Status of implementation
2.5 Applications for Administrative Review
The Authority derives its mandate to conduct administrative reviews from Sections 8 (e) and 91 of the Public Procurement and Disposal of Public Assets Act 2003, Regulation 347 of the Public Procurement and Disposal of Public Assets Regulations 2003 and Regulation 140 of the Local Governments (Public Procurement and Disposal of Public Assets Regulations 2006.
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Page 72 of 179 During the FY 2008/09, the Authority received a total of 17 Applications for Administrative Review from Entities. Of these 9 (52.9%) were upheld while 7 (41.1%) were rejected and 1 (5.88%) was withdrawn.
Out of the 17 applications, 6 (35.2%) were from Central Government PDEs while 11 (64.7%) were from Local Government PDEs. The details of the subject matter and the decision of the Authority are contained in Annex 1.
The statistics of the applications for deviations and the decision of the Authority are depicted in the table below:
No Received No & % No & % No & % No & % From No & % From by PPDA Upheld Rejected Withdrawn CG PDEs LG PDEs 171 9 (64%) 7 (36%) 1 (0%) 14 (79%) 3 (21%)
A comparative analysis of the applications for deviations received by the Authority in FY 2007/08 and FY 2008/09 illustrated in the bar chart below: C omparativeS tatis tic s forAdminis trativeReviewsinFY07/08&FY08/09 100
90
80 79%
70 71% 64% 60 57% FY 2007/08 50 FY 2008/09 43% 40 36%
30 29% 21 21% 20 17
10 1% 0% 0 Number Upheld Rejected Withdrawn FromCG FromLG Received PDEs PDEs
1 The number of Applications for Administrative Reviews submitted to PPDA in FY 2008/09 decreased by 5 (19%) from 21 that were submitted to PPDA in FY 2007/08.
Page 73 of 179
Page 73 of 179 2.6 Applications For Deviations
The Authority derives its mandate to handle Applications by Entities for Deviations under Section 7 (e) of the PPDA Act and PPDA Regulations 6 (c) and 339. For the case of Local Governments this power is under Regulation 61 of the Local Governments (Public Procurement and Disposal of Public Assets) Regulations. Under the above provisions, the Authority has powers to permit a deviation from the use of a procurement/disposal method, rule or document by an Entity- (a) where exceptional requirements make it impossible, impractical or uneconomical to comply with these Regulations; (b) where market conditions or behaviour do not allow effective application of these Regulations; or (c ) for specialised or particular requirements that are regulated or governed by harmonised international standards or practices.
The Authority under Section 7(e) of the PPDA Act and Regulations 6(c) and 339 of the PPDA Regulations has powers to permit a deviation from the use of the procurement/disposal method, rule or document by a Procuring and Disposal Entity (PDE). The Authority received a total of 247 applications for deviations from procuring and disposing entities during FY 2008/09. A table showing the list the procuring and disposing entities that submitted applications to the Authority for deviations and the decision of the Authority is attached as Annex 2.
Decision of the Authority: Out of the 247 applications received by the Authority, 124 (50.5%) were granted as follows; 101(41%) were approved as requested, 16 (6.5%) were approved with modifications and 7 (3%) approved with conditions. The number of applications for Deviations that were not granted were 123 (49.5%) and these included 25 (10%) that were referred back to the Entity, (e.g. emergencies, premature, advice on the use of force account and some were not by PDEs), 57 (23%) applications were rejected (i.e. were retrospective requests or did not meet the conditions under PPDA Regulation 339) and 41 (16.5%) applications that were deferred pending submission of additional information by the Entity e.g. non submission of procurement plans or monthly/quarterly reports, Contracts Committee minutes, proof of confirmation of funding etc.
During this period, the Authority revoked a deviation that had been granted to Ministry of Energy and Mineral Development for the procurement of fuel for government strategic reserves on the ground that the entire process was flawed.
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Page 74 of 179 Statistics on Applications for Deviations in FY 2008/09
Total Not Granted 49.5% Total Not Granted
Additional Info required 16.5% Additional Info required Rejected 23% Rejected
Referred back to PDE 10% Referred back to PDE
Total Granted
With Conditions
Total Granted 50.5% With Modifications
With Conditions 3% As Requested With Modifications 6.5%
As Re que ste d 41%
0 10 20 30 40 50 60 70 80 90 100
Category of PDEs: Out of the 247 applications, 170 (69%) were from Central Government, 74 (30%) from Local Governments, 1(0%) from foreign missions and 2 (1%) from private firms that were not procuring and disposing entities (PDEs) as shown in the pie chart below
Applications for Deviations by Category of PDE 1 1% 5 2% 74 30% Central Govt PDEs Local Govt PDEs Foreign Missions 165 Non PDEs 67%
Page 75 of 179
Page 75 of 179 Types of Deviations: This is in respect to the procurement method and rules/ procedures in the PPDA Act and Regulations 2003 that were the subject of the deviation application by the Entity. During this period, out of the 247 applications, the types of deviations requested included the following- (a) 128 (53%) for direct procurement; (b) 7 (3%) for selective bidding; (c) 33 (13.3%) for use of restricted domestic method; (d) 6 (2 %) for use of request for quotation; (e) 4 (2 %) for use of restricted international bidding, (f) 27 (11 %) for variation of contract; (g) 10 (4%) for approval of addendum; (h) 6 (2 %) for use of alternative bidding documents; (i) 4 (2 %) for disposal of public assets; (j) 7 (3%) for use of force account; (k) 8 (3%) for reduction of bidding period; (l) 4 (2%) for use of firms on the Entity’s pre-qualified list; (m) 1 (0.4%) for introduction of a variation order; (n) 2 (1%) for use of emergency procedures; and (o) 1 (0.4%) for use of the community purchase method.
A summary of the types of deviation applications is illustrated in the pie chart below.
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Page 76 of 179 Deviation Applications by Type
0% 1% 3%2% 0% 1% 3% 0% 3% 4% 3% 1% 49%
11%
I 3% 2% 1% 12%
Direct Procurement Restricted bidding Restricted International bidding Request for Quotations Introduction of Addendum Variation of contract Guidance from the Authority Disposal of Public Assets Selective Bidding Force Account Reserve price Reduction of bidding periods Use of alternative bidding documents Use of Pre-qualified firms Renewal of Contract Not indicated Emergency Procurements Community Purchase
Subject Matter: This is in respect to the category of procurement /disposal of the deviation application sought by the Entity i.e. whether supplies, works, services, purchase of land and disposal. Out of the 247 applications, the subject matter was in respect of the following- (a) 91 (36.5 %) were in respect of supplies, (b) 79 (32 %) for services; (c) 74 (30 %) for works; (d) 2 (1%) for disposal of assets; and (e) 1 (0.5%) for purchase of land.
A summary of the subject matter of the deviation applications is illustrated in the pie chart below.
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Page 77 of 179 Deviation Applications by Subject Matter
2 1% 1 79 0.5% 32% supplies 91 works 37% services disposal land 74 30%
2.7 Suspension of Providers
The Authority derives its mandate to suspend providers under Section 94 of the PPDA Act and PPDA Regulation 351 that provide that the Authority may suspend a provider who does not comply with the Act, Regulations or Guidelines made under the Act. Under PPDA Regulation 349 a recommendation to suspend a provider shall be submitted to the Authority in writing by a contracts committee of an Entity. Thus, the Authority is not empowered to suspend a provider on its own initiative or on the recommendation of any party other than a contracts committee.
During this period the Authority received only one (1) recommendation from Ministry of Education and Sports for suspension of M/s T& Brothers General Enterprises Limited following its failure to comply with the contract terms of completion of construction works for the Entity despite several extensions.
The Board of Directors of the Authority at their meeting held on Thursday 11th June 2009 reviewed the recommendation to suspend M/s T& Brothers General Enterprises Limited and noted the following. The Authority noted that the contract management by the User Department fell short of what is required under PPDA Regulation 260. The contract was for a period of four months but the User Department only inspected the site during the third month when it was noted that the Bidder had not yet commenced on the works or even ferried materials to the sites. This laxity on the part of the Contract Manager resulted in the subsequent extensions to the contract which further exacerbated the poor workmanship since the Bidder had no sense of urgency to complete the works especially since the certificates presented were always cleared for payment by the Contract Manager. Mr. Kiyuba of M/s T& Brothers ignored two written requests by PPDA to present their side of the case against the recommendation of the Entity to have their firm suspended. This was despite several telephone calls between Mr. Kiyuba and staff of the Authority in which he confirmed receipt of the letters from PPDA forwarding to him the Entity’s case against him and requesting him to present his defence. The Authority was of the view that the conduct of the Mr. Kiyuba as the official representative of M/s T& Brothers was deliberately uncooperative and this conduct needs to be investigated further to establish Page 78 of 179
Page 78 of 179 whether it amounts to connivance or collusion to commit a fraudulent or corrupt act contrary to Section 95 (1) (d) of the PPDA Act.
The decision of the Authority was that the matter be referred to the Director of the Criminal Investigations Department (CID) with a view to conducting a thorough investigation on the directors of M/s T & Brothers General Enterprise Limited (Mr. Kiyuba George and Mr. Ibanda Ben) and the staff of the User Department of Ministry of Education and Sports. The investigation by CID will cover the process leading to the contract award and the subsequent implementation of the contract for the construction of two libraries at Kapchorwa and Bukedea Primary Teachers Colleges to establish whether by their actions or omissions they had connived or colluded to commit a fraudulent or corrupt act contrary to Section 95 (1) (d) of the PPDA Act, 2003.
2.8 Applications For Accreditation
The Authority derives its mandate to handle Applications by Entities for Accreditation under PPDA Regulation 342. The Board appointed the Management Advisory Committee (MAC) to handle the above mandate of the Authority. An analysis of the outcome of the matters handled by MAC during the period July 2008 to June 2009 is provided in the following sections.
During this period the Authority received two (2) Applications for Accreditation from the following Entities: (a) National Social Security Fund; and (b) Post Bank (U) Ltd.
2.8.1 National Social Security Fund (NSSF)
The NSSF submitted an application to the Authority for accreditation of the acquisition system under its Investment Policy as an alternative procurement system under PPDA Regulation 342.
In its application NSSF stated the following: (a) NSSF is a Government controlled Entity set up by an Act of Parliament, the National Social Security Fund Act (Chapter 222 of the Laws of Uganda) to act as a social security institution operating a provident fund, in which employers and employees contribute 10% and 5% of the employee’s gross salary respectively for the benefit of the employee. (b) The governing body of the Fund is the Board of Directors which is charged with the responsibility of investing surplus funds in consultation with the Minister responsible for Finance. (c) There are three types of Investments that are usually undertaken by NSSF under its investment Policy namely- i. Fixed Income Investments. These include treasury bills; treasury bonds, commercial bonds, commercial paper, fixed deposits, loans, bank placements, lines of credit and structured portfolio that include derivatives quoted commodities, futures, oil, platinum and gold. ii.Real Estate. This applies to real estate to be developed or purchased solely for purposes of capital gains, disposal for profit or rental income. They are either commercial or residential. They include BOOT arrangements, BOT arrangements, land bank transactions, securitization of residential mortgages, residential and commercial estate developments, and forestry developments. iii. Equities. They include quoted shares, unquoted shares (joint ventures, start-up investments, public private partnerships, regular partnerships, special purpose vehicles, private equity), indices, equity based derivatives
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Page 79 of 179 On 19th August 2008, the PPDA Board of Directors, in accordance with PPDA Regulation 342 (5), approved the application by National Social Security Fund as contained in the Investment Policy subject to the following conditions:
i. The scope of the approved accreditation is to cover only the investments that fall under the categories of Fixed Income Investments and Equities as defined above. However, NSSF should ensure that the procedures used to acquire these investments are transparent and based on sound commercial practices and other applicable laws. ii. In order to promote linkages between the procurement structures and the Investment structures, the Head of the Procurement and Disposal Unit shall be a mandatory member of the Evaluation Committee where investment projects under the categories of Fixed Income Investments and Equities require an evaluation process. Similarly two members of the Contracts Committee should be appointed to the Investment Committee of Management. iii. All other investments that fall under the category of Real Estate are to strictly follow the PPDA Act. In addition, NSSF should ensure that all investments in real estate offer value for money by subjecting the proposed investments to open and competitive bidding before NSSF enters into any legally binding commitment for the investment project. iv. All procurements and disposals of goods, services and fixed assets for NSSF’s use, outside the area of investments, shall follow the PPDA Act. Accordingly, NSSF shall continue to submit monthly reports to the PPDA on these procurements and disposals. v. The accreditation for investments under the categories of Fixed Income Investments and Equities shall be for an initial period of two years during which the Authority shall monitor the implementation of the alternative system and shall require changes to the system or withdraw the accreditation where appropriate. vi. NSSF shall submit to the Authority bi-annual reports on the procurement and disposal activities undertaken under the Investment Portfolio.
2.8.2 Post Bank (U) Ltd (PBU)
The Post Bank (U) Ltd submitted an application to the Authority for accreditation of the procurement process related to its core banking function. In its application, the main areas proposed by PBU for accreditation were the following- 1. Acquisition of sites/premises for new branch locations. This includes the Consultancy services for the structural design and construction supervision and the actual sourcing and engaging Contractors for the refurbishment works. 2. Procurement of ICT/ Core banking requirements and this includes the acquisition of both core banking hard ware and software.
As of 30th June 2009, the application by PBU had not yet been considered by the PPDA Board which will take a final decision on the matter in the next financial year.
2.9 Publication of Contracts above US$ 100,000
During the FY under review, 111 PDEs were compliant to the request to submit to PPDA the report on contracts awarded above US$ 100,000. 55 PDEs submitted a NIL return report while 56 PDEs awarded a total of 387 contracts.
Most PDEs used the open domestic bidding method of procurement with a total of 236 (61%), procurements being handled using this method. 74 (19%) procurements were handled using the restricted domestic and
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Page 80 of 179 international methods, 42 (11%) procurements were conducted using open international bidding, while 12 (3%) procurements were conducted using Request for Quotations & Proposals and 23 (6%) procurements were conducted using the direct procurement method.
The Authority in a bid to promote transparency in public procurement published the above report on the website. A detailed analysis of the report is provided in the table below:
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Page 81 of 179 Table 1: Report on Contracts Awarded Above US$ 100,000
ENTITY METHOD Direct Method Open Domestic Open International RFQ/P Restricted
Nos Value Value Nos Value Nos Value Nos Value Nos Uganda Revenue 1 Authority 435,569,407 3 1,522,283,835 Jinja Municipal Council 2 503,430,534
Kabale Regional 2 2,965,637,510 Referral State House 3 1 8 3,305,452,372 354,744,592 3,281,036,927 UETCL 6 2 1,124,308,012 4,522,264,068 Ministry of Water 1 1 299,365,736 16 9,824,547,882 196,930,000 KCC 1 827,819,705 29 21,472,063,097 Butabika 8 33,991,152,086 UEDCL 4 1,326,924,186 8 5,363,610,495 Butaleja DLG 5 1,505,405,111 Kasese DLG 1 18 5,001,785,758 178,118,850 NWSC 3 9 13,384,763,423 3,420,906,813
Page 82 of 179 Page 82 of 179 ENTITY METHOD Direct Method Open Domestic Open International RFQ/P Restricted UBC 1 3 2 2,766,704,202 1,139,150,137 17,562,691,786 Makerere University 4 2,709,788,749 Rural Electrification 1 Agency 1,194,510,000 9 20,380,124,837 Mbale Regional Hospital 3 1,162,669,391 Ministry of 2 2 29 Works 831,982,588 28 36,714,440,012 2,249,371,677 15,783,573,213
Amuru 2 585,000,000 NMS 3 3 21 3,479,930,000 1 200,454,700 4,393,957,705 60,391,557,140 Private Sector 11 14,178,749,329 OPM 2 8 2 3,074,549,345 12 12,244,224,570 5,181,144,000 586,117,374 CAA 1 2 286,250,197 16 7,397,095,277 2,457,636,580 Tororo DLG 3 953,000,318 Office of President 2 1,774,590,000 Gulu University 1 766,295,425 Fort Portal Referral Hospital 1 625,691,684 Mbale Municipal 1 950,600,000
Page 83 of 179 Page 83 of 179 ENTITY METHOD Direct Method Open Domestic Open International RFQ/P Restricted Kiboga DLG 3 969,650,314 Arua DLG 1 220,000,000 Sembabule DLG 3 1,140,193,230 Wakiso DLG 5 1,638,121,788 Uganda Industrial Research 8 2 633,714,469 4,890,085,870 Paliisa DLG 3 893,436,337 Kabale DLG 1 1 237,814,063 330,000,000 Ntungamo DLG 3 2,135,532,177 Mbarara University 1 1,016,683,865 Cotton Development 3 1 Orgn 4,050,261,310 2 770,846,800 680,648,100 Kabarole DLG 4 14,489,857,550 Kalangala DLG 1 495,162,338 Kyenjojo 2 DLG 220,000,000 Isingiro DLG 1 2,382,692,249 Kabale Municipal 2 546,117,163 Mayuge DLG 1 441,128,722
Page 84 of 179 Page 84 of 179 ENTITY METHOD Direct Method Open Domestic Open International RFQ/P Restricted Nakasongola DLG 1 526,465,060 Masindi DLG 1 390,411,175 Kaabong DLG 1 270,765,000 Moroto DLG 1 239,500,000 Mukono DLG 3 929,557,295 Jinja DLG 1 320,238,076 Mityana DLG 3 917,914,253 Kaliro DLG 3 903,362,970 Kibaale DLG 3 937,784,185 Gulu Municipal 1 350,896,540 Sironko DLG 3 2,029,985,683 Mulago Hospital 3 786,462,590 MAAIF 3 1 434,168,922 2,892,481,571 National Curriculum DC 3 907,180,112
23 19,463,511,386 236 188,533,610,894 42 65,361,330,293 12 9,929,846,297 74 104,560,791,542
Page 85 of 179 Page 85 of 179 Table 2 : Analysis by Procurement Method (Number)
6% 19% 3%
11%
61%
DirectProcurement OpenDomestic OpenInternational RFQ Restricted
Page 86 of 179
Page 86 of 179 Table 3: Analysis by Procurement Method (Value)
5% 27%
49% 2% 17%
DirectProcurement OpenDomestic OpenInternational RFQ Restricted
Page 87 of 179
Page 87 of 179 CHAPTER 3: HARMONIZATION OF PROCUREMENT AND DISPOSAL POLICIES, PRACTICES AND SYSTEMS
In accordance with Section 6 (b) of the PPDA Act, is mandated to harmonize the procurement and disposal systems and practices of the Central and Local Government Entities and statutory bodies. During the FY under review the Authority undertook to carry out the following activities:
3.1 Development of Standard Bidding Documents for Local Governments
The Authority developed the Local Government Standard Bidding Documents (SBDs). The SBDs included the following:
(a) Registration (Annual Short listing); (b) Supplies -Open and Selective bidding; (c) Works -Open and Selective bidding; (d) Services -Open and Selective bidding; and (e) Disposal.
The final LG SBDs were approved by the PPDA Board of Directors on 11th June 2009 for issuance to the Local Governments.
3.2 Standard Bidding Documents for Revenue Collection
The Authority developed Standard Bidding Documents for Revenue Collection. The draft documents were submitted to the Local Government Finance Commission and the Commission submitted its comments on the documents. The documents were also submitted to the Privatization Unit for comments and PPDA was yet to receive PU’s comments. The SBDs will be issued next financial year.
3.3 Development of a Local Government Public Procurement and Disposal Manual
The Authority under the EU Project developed the Local Government Public Procurement and Disposal Manual/User Guide. The User Guides were distributed to all Local Government Entities including Municipalities.
3.4 Equipping/Re-tooling of the Procurement and Disposal Units
In an effort to build capacity of the Local Government Procurement and Disposal Units, the Authority procured equipment and furniture for the PDUs in the Local Governments using funds from both EU and FINMAP. The equipment and furniture procured for the Procurement and Disposal Units included internet connectivity, computer desktop, UPS(s), printers, filing cabinets, computer desks, office chairs and desks, fax machines and photocopiers, sign posts, tender boxes and notice boards, banners, stickers, T-shirts and motorcycles. Among others included 744 copies of the Local Government (PPDA) Guidelines, 2008, and 740 copies of the combined LG Amendment Act and LG Regulations. The following entities benefited from the re-tooling exercise:-
1. Amuru 8. Bundibugyo 2. Apac 9. Busia 3. Arua 10. Hoima 4. Arua Municipality 11. Kaberamaido 5. Bududa 12. Kamwenge 6. Bukedea 13. Kanungu 7. Buliisa 14. Kasese
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Page 88 of 179 15. Kayunga 26. Mpigi 16. Kisoro 27. Nakaseke 17. Kotido 28. Nakasongola 18. Kumi 29. Nebbi 19. Lira Municipality 30. Ntungamo 20. Luwero 31. Oyam 21. Lyantonde 32. Pallisa 22. Maracha-Terego 33. Rakai 23. Masindi 34. Sironko 24. Mayuge 35. Soroti 25. Moyo 36. Tororo
3.5 Asset Engraving and Verification in the 11 EU Supported Local Governments.
The Authority conducted an asset engraving exercise for all the equipment distributed in the eleven (11) EU supported Local Governments after the re-tooling. The 11 districts included:-
1. Arua District 5. Kamwenge. 9. Mpigi 2. Arua Municipality 6. Kanungu 10. Nebbi 3. Busia 7. Kayunga 11. Pallisa 4. Hoima 8. Kisoro
Page 89 of 179
Page 89 of 179 CHAPTER 4: SETTING PUBLIC PROCUREMENT AND DISPOSAL STANDARDS
In accordance with Section 6 (c) of the PPDA Act, PPDA is mandated to set standards for public procurement and disposal systems in Uganda. During the FY under review, the Authority undertook to carry out the following activities:-
4.1 Development of the Register of Providers
The PPDA in conjunction with the Anti-Corruption Country Threshold (ACT) Project invited Expressions of Interest (EOI) for the development and operation of the Register of Providers. M/s Kisaka & Company/Solutions for Business (JV) was contracted to develop and test the Register of Providers.
4.2 Development of Common Specification Standards of Common User Items
The Authority in collaboration with Uganda National Bureau of Standards (UNBS) finalized eleven (11) standards for paper and paper products. These standards were declared as Uganda Standards (US) by the National Standards Council. UNBS also forwarded the following draft standards to the Authority: i. Stationery: Scholastic stationery and Paper ii. Fuel: Petroleum and Kerosene iii. Food and Agriculture
Upon request from the PPDA, the UNBS prepared simplified versions of 10 standards in order to make them user friendly. The UNBS submitted to the Authority simplified versions of the following standards:
i. Bond paper ii. Liquid detergent iii. Pneumatic tyres iv. Scholastic stationery v. Rubber Gloves vi. Synthetic Gloves vii. All Glass/metal Syringes (Dimensions) viii. All Glass/metal Syringes (Design and Performance) ix. Ball pens
4.3 Development of Sector Standard Bidding Documents for Central Government Entities
The Authority developed the Standard Bidding Documents for the Health, Roads and Education (Textbooks) Sectors. Consultative meetings were held with the following stakeholders: Health (Ministry of Health, National Drug Authority, National Medical Stores and Pharmaceutical Society of Uganda), Textbooks (Ministry of Education and Sports) and roads (Ministry of Works and Transport, Uganda National Roads Authority, UNABCEC and Uganda Association of Certified Engineers).
The documents are still being reviewed and are to be completed in the next Financial Year.
4.4 Amendments to the PPDA Act.
The Authority participated in Technical Working Group (TWG) meetings chaired by MOFPED on the Amendments to the PPDA Act. The main objectives of the Amendments to the PPDA Act were the following:
Page 90 of 179
Page 90 of 179 (a) To improve efficiency of the public procurement system; (b) To strengthen PPDA in order to improve compliance levels; and (c) To remedy any defects in the PPDA Act.
The TWG completed the discussions on the proposals collected from various stakeholders and submitted their report on the proposed amendments to the Permanent Secretary/Secretary to the Treasury (PS/ST) for further consideration by the World Bank, MOFPED Top Management and the PPDA Board.
The main proposals in the Report of the TWG on Amendment of the PPDA Act included the following:
(a) Scope of application of the PPDA Act should be clarified to cover the following; i. Procurement and disposal by an Entity within or outside Uganda; ii. Procurements in non government entities financed from specific public funds; and iii. Procurement by companies in which a PDE has majority interest.
(b) PPDA Board Composition-The PPDA Board to include more stakeholders like the public, the contractors, the procurement association and any others who are affected by the PPDA.
(c) Debriefing of Unsuccessful Bidders -The law should require Entities to inform the unsuccessful bidders of the reasons they failed and PPDA could develop a standard format to guide Entities on how to respond to the unsuccessful bidders.
(d) Definition of Accounting Officer- To clarify the definition of an Accounting Officer of an Entity to include any person appointed under any Act or under any instrument of appointment made under any Act including the Companies Act, to perform the functions of accounting officer of a PDE or of an entity, not of Government, but which is financed from specific public funds.
(e) Definition of Supplies – Supplies definition should be amended to cover land, assets or anything capable of being supplied whether tangible or intangible.
(f) Ineligible members of the Contracts Committee - The head of the finance department, but not the head of the accounts department, where the positions are held by different officers, and the staff of the department of internal audit of a procuring and disposing entity are not eligible for nomination to a Contracts Committee
(g) Procurement and Disposal Planning – Strengthen the provisions on procurement planning to require an Entity to display the approved and updated plan on its procurement and disposal notice board for not less than twenty working days. And on a quarterly basis and in any other case, where necessary, review and update its procurement plan and notify the Secretary to Treasury of any modification and submit the updated and approved plan to PPDA
(h) Preference Schemes – To clarify that the circumstances for the application of a Margin of Preference to be accorded to a provider and for goods and works the following were proposed:- i. To be applicable only for procurement methods of open domestic and open international bidding ii. To be based on price only by adding the specified margin of preference to financial proposals of non eligible bids. iii. To be related to the percentage of a procurement activity to be undertaken as local inputs and proportional to the percentage of the contract to be actually executed by national or resident providers or sub contractors
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Page 91 of 179 (i) Donation as a method of Disposal - Disposal of public assets may be by way of donation only where a PDE cannot effect disposal of public assets by any of the other prescribed disposal methods
(j) Disposal Committee - An Accounting Officer shall establish a disposal committee to-assess and verify the public assets identified by the user department and or Board of Survey as due for disposal. The Disposal Committee is to have the function of causing the identified assets to be valued; and setting a reserve price for the public assets to be disposed of.
(k) Appeals Tribunal – To improve on the Appeals Mechanism by the establishment of an independent Administrative Review Tribunal whose mandate is to include the following; i. Reviewing Administrative Review decisions of PPDA as an appellate body where a bidder is aggrieved following the decision of PPDA. ii. Reviewing matters where a Bidder alleges that PPDA has a conflict of interest in a matter. iii. Reviewing decisions of PPDA when a PDE or any other person alleges they have been aggrieved by the decision of PPDA.
(l) Suspension of Providers - PPDA may on recommendation of a PDE or after investigations on its own initiative, suspend a provider from engaging in any public procurement or disposal process
4.5 Development of a Dual Classification List for Defence and National Security Organs
The Authority nominated two persons to liaise with Internal Security Organization, External Security Organization and Uganda Police to discuss their dual classified lists. The officials were vetted and approved by the security agents.
State House submitted its list of classified items for the FY 08/09 to the Authority while Ministry of Defence, Internal Security Organization and Uganda Police submitted their procurement plans for FY 2008/2009 to the Authority. The Entities have been complying with PPDA’s requirement of submission of monthly procurement and disposal reports.
Meetings with the above National Security Organs are to be held in the next Financial Year to agree on the procurement procedures to be used for their classified procurements.
4.6 Development of Guidelines
The Authority developed two guidelines on sub-contracting/preferences and de-briefing of bidders. These two areas were however included as proposed amendments to the PPDA Act and therefore guidelines could not be issued on them.
The Authority identified another area instead that required a guideline namely the use of Force on Account by Local Governments. This was developed and on 28th August 2008, the Authority issued a Guideline to LG PDEs on “Conditions for the use of Force on Account by Local Government PDEs”.
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Page 92 of 179 CHAPTER 5: MONITORING COMPLIANCE OF PROCURING AND DISPOSING ENTITIES
In accordance with Section 6 (d) and 7 (r) of the PPDA Act, 2003 and Regulation 6 (e) (iii) of the PPDA Regulations, 2003, PPDA is mandated to monitor compliance of Procuring and Disposing Entities, administer and enforce compliance with all the provisions of the Act, Regulations, Guidelines, Solicitation documents and specification standards issued by the Authority. During the FY under review, the Authority undertook to carry out the following activities:-
5.1 Conducting 120 Compliance Checks as a PRSC IV Requirement
In fulfillment of the PRSC 7 prior action, the Authority with the assistance of six (6) individual consultants conducted 120 compliance checks on both Central and Local Government Procuring and Disposing Entities. The final report was submitted to the Permanent Secretary/Secretary to Treasury (PS/ST) and copied to the World Bank Country Manager. A summary of the findings is given in Annexes 1 and 2. Findings of the report were placed on PPDA’s website and are to be published in PPDA’s e-newsletter in the next Financial Year.
5.2 Conducting 61 Compliance Checks
The Authority conducted Compliance Checks in the following Entities:
Twenty five (25) spillovers from FY 2007/08:
1. Amnesty Commission 13. Ministry of Foreign Affairs 2. Arua District Local Government 14. Ministry of Health 3. Butabika Hospital 15. National Agriculture Research Organisation 4. Civil Aviation Authority 16. National Council of Sports 5. Electoral Commission 17. Uganda Blood Transfusion Services 6. Jinja Hospital 18. Uganda Broadcasting Corporation 7. Judicial Service Commission 19. Uganda Bureau of Statistics 8. Lira Hospital 20. Uganda Land Commission 9. Makerere University 21. Uganda Law Reform Commission 10. Mbarara University of Science and Technology 22. Uganda National Bureau of Standards 11. Ministry of Agriculture, Animal Industry and 23. Uganda Tourist Board Fisheries. 24. Uganda Wildlife Authority 12. Ministry of East African Community Affairs 25. Uganda Wildlife Education Centre
Thirty six (36) for FY 08/09:
1. Amolator District 8. Dokolo District 2. Amuru District 9. Ibanda District 3. Bududa District 10. Jinja District 4. Bugiri District 11. Kaberamiado District 5. Bukedea District 12. Kaliro District 6. Buliisa District 13. Kamuli District 7. Butaleja District 14. Kilembe Mines
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Page 93 of 179 15. Kumi District 27. Mityana District 16. Kyenjojo District 28. Nakaseke District 17. Lira District 29. National Animal Resource Genetic Centre & 18. Lyantonde District Databank 19. Manafwa District 30. National Drug Authority 20. Masaka MC 31. Ntungamo District 21. Masindi District 32. Office of the President 22. Mayuge District 33. Rakai District 23. Mbale MC 34. Sironko District 24. Mbarara District 35. Soroti District 25. Mbarara Hospital 36. Tororo District 26. Ministry of Local Government
The summary of findings from the 25 Compliance Checks and 36 Compliance Checks is contained in Annexes 3 & 4 respectively. Findings of the reports were placed on PPDA’s website and are to be published in PPDA’s e- newsletter in the next Financial Year.
5.3 Reviewing Monthly and Quarterly Procurement and Disposal Reports
5.3.1 Monthly reports
The Authority was expected to review 1,296 reports from both Central Government and Local Government PDEs per quarter. During the financial year 08/09, 909 reports were submitted to PPDA of these only 205 reports were reviewed, that is, 124 monthly reports from the Central Government and 81 quarterly from Local Government for the Financial Year 2008/09. The number of reports reviewed was low due to the heavy workload in the Department of Legal and Compliance which reviews the reports.
The main findings from the reviewed reports were as follows; i. Some of the entitles submit omnibus reports as opposed to monthly or quarterly reports; ii. Some entities do not report on micro procurements; iii. Some entities do not reports on utilities such as water, electricity and telephone bills; iv. Some entities do not report on disposals and contracts completed; v. Procurements are split to avoid use of more competitive methods of procurements; vi. Direct procurements are used for procurements such as vehicle repairs, workshop facilities, air tickets; vii. Some entities do not use correct format for reporting; viii. In many cases the appropriate Contracts Committee minutes are not attached; and ix. The most commonly procured items include stationery, workshop facilities, tyres, motor vehicle repair, cleaning services.
5.3.2 Procurement plans: The Authority received 148 procurement plans and reviewed 77 of them. One of the main findings was that some entities do not use the standard format for preparation of procurement plans. The list of Central and Local Government Entities that were/were not compliant to the requirement of submitting a Procurement Plan for FY 2008/09 was published in the press and is attached in Annexes 5 and 6 respectively.
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Page 94 of 179 5.4 Conducting Compliance Assessment in 5 Foreign Missions.
The Authority conducted compliance checks and hands on capacity building on the following foreign missions:
i. Kinshasa, Democratic Republic of Congo ii. Kigali, Rwanda iii. Nairobi, Kenya iv. Dar-es-Salaam, Tanzania v. Cairo, Egypt
The assessment was conducted based on the Foreign Missions Guideline 1/2008. The Guideline takes into account the challenges faced by the missions in their respective countries when conducting procurement and disposal with regard to the areas of Procurement Structures, Procurement and Disposal methods, Procurement Planning and Reporting. The Authority noted that the missions face the following challenges:
i. Low staffing in the missions which pauses a challenge to constituting the procurement structures in accordance with the Missions Guideline ii. Lack of a clear understanding of the PPDA law iii. Procurement Thresholds do not attract competition in the respective countries because they are considered low. iv. Late remittance of funds by Ministry of Finance leads to delayed implementation of procurements in accordance with annual procurement plans. v. Pre-qualification of providers vi. Approval by the Solicitor General vii. Preference for use of Quotations Method as opposed to publication of adverts which is costly. viii. Conflict between Disposal rules in the countries where the missions are located and the PPDA law. ix. One mission (Nairobi) did not have office facilities such as computers &cabinets. x. All the 5 missions did not have an official website, and this limits communication. xi. There was no procurement plan in all the 5 Missions visited. xii. All the 5 missions visited never used form PP20 to initiate procurements and did not have a pre-qualification list of providers. xiii. Lack of quarterly reports in all the 5 Missions. xiv. Vehicles & other items for disposal were not attracting competent bidders xv. Most missions had problems with constituting a board of survey, to identify and value assets for disposal xvi. There were no designated Procurement Officer and no Contracts committee in all the 5 foreign missions visited.
In an effort to address some of the challenges mentioned above, the Authority made the following recommendations to the Missions:
i. Entity should organise for training from PPDA in areas where they lack capacity. ii. Use framework contracts for repeatedly procured items iii. Missions should put in place Pre-Qualification Lists with about 3 Providers for each category. iv. Missions should apply for deviations in cases where the provisions of the law are impossible to adhere to. v. Foreign missions should be retooled with Computers and filing cabinets vi. Foreign missions should be connected to the internet
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Page 95 of 179 vii. Procurement plans based on the approved budgets should be prepared and submitted to PPDA for compliance purposes viii. Initiation of procurements should be done using form PP20 and maintain a list of pre-qualified providers. ix. Missions should prepare quarterly reports and submit them to PPDA. x. Alternative methods for disposal such as sale to Public officers should be used. xi. The Accounting Officers should appoint a Board of Survey to verify the assets due for disposal. Foreign missions should establish a PDU and Contracts Committee in accordance with the law
5.5 Development of a Compliance Database.
The Authority, with the support of the EU Project, developed an Electronic Compliance Database and Monitoring System. The users were trained and the database is now operational.
5.6 Framework contracts:
The Authority in consultation with UNRA drafted a framework Standard Bidding Document for works. On 11th June 2009, the Board of Directors approved the issuance of the framework SBD for Works. The document will be issued to stakeholders next Financial Year.
5.7 Review of procurement adverts in the press:
On average the Authority reviews about 80 procurement adverts per month to ensure that they are in compliance with the PPDA Act and Regulations.
5.8 Printing of combined CG PPDA laws:
Under a budgetary reallocation, the Authority printed 450 copies of the combined Central Government PPDA Act and Regulations.
5.9 Court Cases
The Authority handled the following Court Cases in the Financial Year:
i. HC Misc. Application No. 380 of 2008, Clear Channel v. PPDA. Ruling was delivered on 14th April 2009 where the Ruling was given against PPDA and PPDA ordered to pay costs. The Authority was dissatisfied with the Judgment and appealed to the Court of Appeal against the decision. The Authority has made an application for stay of execution of the High Court decision but Justice Y. Bamwine who made the ruling, declined to hear the application to stay the execution of his own decision, so the application was made to the Court of Appeal and is pending a hearing date. Meanwhile we have put in an application for an interim stay incase the main application takes long to hear (there must be at least three judges to form a quorum) as the application for an interim order can be heard by the Registrar.
ii. Masaka HC Misc. Application No. 27 of 2009, CHOGM Tour Agents 2007 (U) Ltd v. Masaka Municipal Council. Judgment was delivered on 8th April 2009 where Court found that PPDA acted within its mandate and the application was dismissed.
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Page 96 of 179 iii. HCCS No.216 of 2004, MK Publishers and Others v. PS Ministry of Education and Sports and PPDA. MK Publishers was scheduled to complete payment of money owed to the Authority by 30th June 2009. Though the company kept on defaulting on its own schedules, due to pressure from us we have received the last two cheques totaling 5,900,000/- and if they clear the matter will finally come to an end.
iv. HC Civil Application No. 80 of 2009, Uganda Inland Port Ltd v. Attorney General. There have been so many applications filed by the parties and the matter was set for hearing of submissions on June 23rd 2009, but due to the saga surrounding the trial judge, the matter is still in abeyance until the Judicial Service Commission makes a recommendation to the appointing authority (H. E. the President) about his fate.
v. HC Misc. Application No. 5 of 2009, UTODA v. PPDA and KCC. Case was set for hearing on 20th May 2009, but unfortunately Justice Musoke-Kibuuka was in Masaka finishing his cases there (he was formerly a resident judge in Masaka). But there is a new twist to the case as UTODA and KCC have consented to a payment schedule giving UTODA up to 30th November 2009 within which to settle all outstanding arrears meanwhile the termination of the contract has been withdrawn up to this time, meaning if UTODA fulfils its part of the agreement, the contract will continue till 2010 when it expires. The Authority has in light of this written to KCC to officially communicate to PPDA its position in the matter vis-à-vis the pending court case.
vi. HC Civil Application No. 208 of 2008, NSSF v. PPDA. The Minister for Finance, Planning and Economic Development advised that the matter be settled out of court. The matter was adjourned to 30th April 2009 for the parties to file a Consent Ruling or proceed. Due to the personal effort of the ED., the matter was finally settled amicably and the case has been withdrawn from court with each party bearing its own costs.
vii. HC Civil application No. 295 of 2009, Alliance Media Ltd Vs. Clear Channel Independent (Uganda) Ltd and PPDA . On 30th June 2009, PPDA was served a Notice of Motion and annexures in respect of the suit. The Authority has instructed the Attorney General’s Chambers to handle the matter.
CHAPTER 6: BUILDING PROCUREMENT AND DISPOSAL CAPACITY
Section 6 (e) of the Public Procurement and Disposal of Public Assets Act, 2003 specifies one of the five objectives of the Authority as ‘to build procurement and disposal capacity in Uganda’. During this financial year PPDA carried out capacity building activities to address the capacity gaps identified during the previous financial year. During the year under review, the authority under took the following activities
6.1 Build Procurement and Disposal Capacity in PDEs
6.1.1 Hands on Support
PPDA used the hands on support approach to build capacity in PDEs, where PPDA consultants and staff guided PDEs practically on how procurements and disposals should be conducted in accordance with the law. PPDA conducted hands-on support exercises in Forty Eight (48) PDEs namely: 1. Kitgum, 3. Kaliro, 2. Pader, 4. Mayuge,
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Page 97 of 179 5. Nakasongola, 27. Masaka, 6. Kibaale, 28. Sembabule, 7. Nakaseke, 29. Kiboga, 8. Mukono, 30. Gulu, 9. Luwero, 31. Adjumani, 10. Masindi, 32. Kanungu, 11. Buliisa, 33. Lira , 12. Mbale, 34. Pallisa, 13. Isingiro, 35. Kabarole, 14. Kiruhura, 36. Kisoro , 15. Rakai, 37. Kasese 16. Bugiri, 38. Soroti , 17. Amuria, 39. Wakiso, 18. Bushenyi, 40. Arua , 19. Mubende, 41. Bundibugyo District, 20. Hoima , 42. Kampala City Council, 21. Kapchorwa, 43. Lira Municipal Council, 22. Entebbe Municipality, 44. Tororo Municipal Council. 23. Jinja Municipality, 45. Ministry of Health 24. Mbarara Municipality. 46. Ministry of Local Government, 25. Rukungiri 47. Ministry of Education and sports 26. Kabale, 48. Ministry of Water and Environment.
Key issues noted from Hands on support activities and recommendations for action:
During the hands on support for PDEs, the following issues were raised and recommendations made as shown in table below:
Table 4: Key Issues Raised From Hands on Support and Recommendations.
No Key issues Recommendations 1. Lack of facilitation of the evaluation The districts should facilitate the evaluation committee in Local Government PDEs committees through the proceeds from sale of bid documents. 2. User departments are still interfering in the Users should be sensitized on their roles, and role of the PDU by the issuing of LPOs. not to interfere with the activities of the PDU.
3. There are delays in payment to the Providers should be contracted based on the providers which affects the delivery of availability of resources. Moneys due to the services. providers should be paid within 30 days after delivery 4. Lack of facilitation of the PDUs Accounting officers should try to facilitate the PDUs. The MOFPED should create a funding code (IPF) for PDUs in the Local Governments 5. Use of force account was cheaper for the A circular or guideline on the use of force Local Governments since they had account should be issued. inadequate funds to implement projects, but it was not provided for in the PPDA law. 6. The standard bidding documents were too Providers should be sensitised on the use of the bulky and complicated creating low standard bid documents.
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Page 98 of 179 5. Nakasongola, 27. Masaka, 6. Kibaale, 28. Sembabule, 7. Nakaseke, 29. Kiboga, 8. Mukono, 30. Gulu, 9. Luwero, 31. Adjumani, 10. Masindi, 32. Kanungu, 11. Buliisa, 33. Lira , 12. Mbale, 34. Pallisa, 13. Isingiro, 35. Kabarole, 14. Kiruhura, 36. Kisoro , 15. Rakai, 37. Kasese 16. Bugiri, 38. Soroti , 17. Amuria, 39. Wakiso, 18. Bushenyi, 40. Arua , 19. Mubende, 41. Bundibugyo District, 20. Hoima , 42. Kampala City Council, 21. Kapchorwa, 43. Lira Municipal Council, 22. Entebbe Municipality, 44. Tororo Municipal Council. 23. Jinja Municipality, 45. Ministry of Health 24. Mbarara Municipality. 46. Ministry of Local Government, 25. Rukungiri 47. Ministry of Education and sports 26. Kabale, 48. Ministry of Water and Environment.
Key issues noted from Hands on support activities and recommendations for action:
During the hands on support for PDEs, the following issues were raised and recommendations made as shown in table below:
Table 4: Key Issues Raised From Hands on Support and Recommendations.
No Key issues Recommendations 1. Lackresponses of facilitation from provider of the particularly evaluation in the The districts should facilitate the evaluation committeeLocal Governments in Local Government PDEs committeesPPDA should through come upthe with proceeds a simpler from SBD sale offor bidthe localdocuments. governments 7.2. LocalUser departments Government are PDEs still interfering were not in guided the AUsers guideline should on be thesensitized use of frameworkon their roles, contracts and onrole of preparation the PDU by and the issuing use of of frameworkLPOs. shouldnot to interfere be developed with the and activities circulated of the to PDU. Local contracts and they therefore continued to Governments issue repeated LPOs for repetitively 3. There are delays in payment to the Providers should be contracted based on the procured goods. providers which affects the delivery of availability of resources. Moneys due to the 8. Administrative review fees were high and Administrative review fees should be revised services. providers should be paid within 30 days after preventing the providers from raising after consultation with the different delivery complaints to the accounting officers. stakeholders. 4. Lack of facilitation of the PDUs Accounting officers should try to facilitate the No Key issues Recommendations PDUs. The MOFPED should create a funding 9. Delays in the release of funds from Central MOFPEDcode (IPF) for should PDUs in release the Local finds Governments to local Government make the implementation of governments timely. 5. Use of force account was cheaper for the A circular or guideline on the use of force the procurement plan difficult. Local Governments since they had account should be issued. 10. Ainadequate lot of funds funds wereto implement spent on projects, advertising but The threshold for open bidding should be costsit was fornot bidsprovided under for open in the bidding PPDA law. due to increased to 150million to reduce on the cost of low thresholds advertising. 6. The standard bidding documents were too Providers should be sensitised on the use of the 11. Evaluationbulky and complicated committee members creating lowwere not PPDAstandard should bid documents. lobby the MOFPED to facilitate motivated to do their work because of lack District Local Governments to pay allowances of funds to pay their allowances. for Evaluation committee members. 12. There were no guidelines for Page procurement98 of 179 PPDA should come up with procedures on the of Land buying and selling of land by entities 13. Delays by PS/ST to approve members of PS/ST should speed up the process of Contracts Committee approving members of Contracts Committee 14. Lack of office equipment such as computers PDU should be facilitated with computers and and photocopiers photocopiers. Lists of LGs not yet re-tooled should be prepared in terms of their capacity gaps and plans made to equip them. 15. Delays in approval of contracts above 50M PPDA should write to the Solicitor General to by solicitor General. address this issue. There is need to increase the threshold to over shs. 100m 16. Some donor funded projects such as There is need to harmonize the various NAADS and NUSAF had their procurement conflicting procurement legislation. structures and were not following the PPDA Law Guidelines by the donors should be used after ratification by PPDA 17. Delays in preparation of procurement plans It is now mandatory for PDEs to prepare and submitting them to PPDA Procurement plans before funds are released. 18. Some LGs have resorted to the use of public PPDA needs to come up with an SBD for bidding for collection of revenue from revenue collection (parks, utilities and markets and parks; which is not provided markets). for in the PPDA guidelines.
6.1.2 Training for Eleven (11) Local Governments
PPDA conducted training for 11 Local Governments. The local governments trained included:
1. Wakiso, 3. Nakaseke, 2. Nakasongora, 4. Kalangala,
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Page 99 of 179 5. Kyenjojo, 9. Kayunga, 6. Kiboga, 10. Mpigi, and 7. Luwero, 11. Masaka. 8. Mukono,
The areas covered during the training included the New Local Government Public Procurement and Disposal framework, Procurement Planning, the Procurement process, Evaluation of bids, and Contract management among others.
Main challenges faced by the Eleven (11) Local Governments:
I. Procurement Planning Challenges: i. Uncertainty about the expected resource envelope. Whereas it was quite easy to estimate what would come from the consolidated fund, this was not normally the case with local revenue, especially after the removal of Graduated Tax. Hence, procurements tagged to local revenue would most times not be realized. ii. Political interests most times override what has been planned leading to distortion of the procurement work plan. Moreover, at times, political interests do not respect the laid down procedures and would have to be accommodated as and when they would occur. iii. The unit costs for the works provided by the line ministries were, most times, unrealistic leading to gross under costing. iv. Sometimes, the total cost of projects planned and executed by the central government are much higher than similar projects by LGs. PPDA should investigate this. v. Not all local governments were using the standard procurement planning format issued by PPDA. vi. It was evident that procurement planning in local governments was done more as a requirement under the Local Government Development Program (LGDP) than as a management tool for controlling, monitoring and evaluating the procurement function. vii. It was clear from the workshops that procurement planning was still a big problem. Whereas local governments had the capacity to identify their requirements on an annual basis and reflect them in their budgets and programme work plans, for many local governments, these had not been translated into a procurement plan. Where procurement plans had been prepared, there was a very weak link between the procurement plans, the annual budget estimates and the programme work plans. viii. The user departments and the lower local governments had very limited, if any, involvement in procurement planning process. The exercise was being undertaken by the Secretary, contracts committee. ix. The following specific aspects of the procurement work plan were a general problem to most local governments:
¾ Determining the timeframes for the specific stages of the procurement process ¾ Determining the basis for choosing one procurement procedure or method against another ¾ Coming up with realistic costs
II Preparation and Management of Standard Bidding Documents There was no one common set of standard bidding documents issued by a single body used across LGs. What existed in local governments were different types of bidding documents issued by different funding sources such as PPDA (for the central government), Local Government Development Program (LGDP), School Facilities Grant (SFG), Health, and European Union. There was need for PPDA to quickly release the SBDs for local governments.
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Page 100 of 179 i. Bidders in local governments were not given access to standard bidding documents prior to purchase. They only accessed these documents upon payment. ii. The cost of standard bidding documents in local governments was not based on a cost recovery basis but rather looked at as a source of revenue. PPDA needed to intervene. iii. Standard documents for use in local governments were mainly for works. There was no or limited use of standard bidding documents for services, especially non-consultancy ones, as well as supplies. iv. The language used in the standard bidding documents was complex to be comprehensively understood by ordinary contractors. Translating to local languages was proposed. v. The standard bidding documents in local governments were mainly the preserve of the Engineering staff. vi. Customizing the standard bidding documents to fit the particular LG needs. vii. How to balance the actual cost of standard bidding documents against the revenue generated by local governments in the sale of SBDs viii. Wording of the standard bidding documents for ease of understanding by all the providers given the varied type of providers in local governments. ix. Determining the ample time for the bidders to access and study the standard bidding documents. x. Who should be involved in the preparation and management of standard bidding documents? In many local governments, this had been the preserve of the Engineering staff.
III. Bid Evaluation
Bid Evaluation knowledge and skills was identified as clearly lacking in most of the technical staff in local governments.
i. The different evaluation methodologies were not known and used by the technical staff in local governments. They had some general understanding of the merit point system of evaluation. ii. Most times, the evaluation criteria were not made known to bidders in the standard bidding documents. iii. Time allocated to the evaluation exercise was normally inadequate to handle the large volume of procurements. The practice in local governments was to handle a large volume of procurements at one ago necessitating evaluating many tenders at ago. Because of inadequate time, quality was normally compromised. iv. Financial and Technical evaluations were being conducted concurrently. Many times, all the bids opened at the bid opening stage went through the entire evaluation process. The benefits of having the bids sieved through the different stages of the evaluation process were missing. v. Conflict of interest – how can it be enforced and upheld? vi. Not indicating the evaluation criteria in the SBDs. vii. Not conforming to the evaluation criteria stated in the SBDs during evaluation. viii. Not adhering to the principle of confidentiality by members of the Evaluation Committee.
IV. Contracts Management
i. Generally, there was weak contracts management in local governments. The responsibility of contracts was mainly vested in the local government engineers, who many times were expected to oversee a large number of projects that were running concurrently. ii. There were no contract managers; iii. There were no records of contract management i.e. no files at all; iv. Monitoring of contracts, especially works was being done by the politicians, whose knowledge of the works was very limited. As policy makers, they were not obliged to report to the Accounting Officer. This meant that monitoring of contracts was not focused. v. Collusion between the local government staff and the providers, which leads to poor quality work vi. Political interference vii. Not having contract managers to prepare contract management reports viii. How to manage contract variations
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Page 101 of 179 ix. Contract monitoring not being done
6.1.3 Procurement Cadre Forum for Central Government Ministries and Statutory Bodies
PPDA with funding from FINMAP conducted a Procurement Cadre Forum for Central Government and statutory bodies. The theme of the Forum was “Improving Efficiency and Effectiveness of Procurement and Disposal Units” and focused Procurement planning, Design and use of Evaluation criteria in the procurement of goods, Works and Services and framework contracting. Participants for the Forum were staff from Procurement and Disposal units from Central Government Ministries, and statutory bodies. Eighty eight (88) Procurement officers attended this Forum.
Issues raised and recommendations from the Procurement Cadre Forum.
A number of issues were raised during the forum as reflected in the table below.
Table 5: Key Issues raised at the Central Government Procurement Cadre Forum
No Issue Recommendations 1 There are many and voluminous forms PPDA should consolidate some of these within the procurement cycle which forms to reduce on stationery expenses and need a lot of stationery and storage save storage space space 2 Failure by PDEs to adhere to Accountant General should write procurement plans Accounting officers to follow Procurement Plans 5 Evaluation committees were not This should be handled by accounting remunerated and therefore not officers. motivated to do their work 6 Procurement officers are not involved in Procurement officers should be involved in the budgeting process the budgeting of their respective PDEs 7 Approval of contracts beyond 50M by Solicitor General should speed up solicitor General takes too long. approval of contracts and the threshold be raised 8 Providers in the printing industry did PPDA should organise training for not know the requirements for doing providers in the printing sector business with Government.
9 Standard bidding documents were hard Providers should recruit or seek advice to be interpreted by providers therefore from procurement professionals to guide some providers fail to conform to them in preparation of bidding documents requirements when responding to solicitation documents 10 Most Referral hospitals and other PDEs A staff needs assessment should be carried were understaffed with only one Officer out to ascertain the number of staff required in the PDUs 13 Lack of technical personnel in some There in need to continue training users in entities to conduct bid evaluation bid evaluation 14 Commercial PDEs like UBC, and NEC There is need for these entities to apply for are finding it difficult to compete with accreditation like NHCC Ltd did. other companies while following the PPDA Law
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Page 102 of 179 5. Nakasongola, 27. Masaka, 6. Kibaale, 28. Sembabule, 7. Nakaseke, 29. Kiboga, 8. Mukono, 30. Gulu, 9. Luwero, 31. Adjumani, 10. Masindi, 32. Kanungu, 11. Buliisa, 33. Lira , 12. Mbale, 34. Pallisa, 13. Isingiro, 35. Kabarole, 14. Kiruhura, 36. Kisoro , 15. Rakai, 37. Kasese 16. Bugiri, 38. Soroti , 17. Amuria, 39. Wakiso, 18. Bushenyi, 40. Arua , 19. Mubende, 41. Bundibugyo District, 20. Hoima , 42. Kampala City Council, 21. Kapchorwa, 43. Lira Municipal Council, 22. Entebbe Municipality, 44. Tororo Municipal Council. 23. Jinja Municipality, 45. Ministry of Health 24. Mbarara Municipality. 46. Ministry of Local Government, 25. Rukungiri 47. Ministry of Education and sports 26. Kabale, 48. Ministry of Water and Environment.
Key issues noted from Hands on support activities and recommendations for action:
During the hands on support for PDEs, the following issues were raised and recommendations made as shown in table below:
Table 4: Key Issues Raised From Hands on Support and Recommendations.
No Key issues Recommendations 151. Lack There of wasfacilitation no guideline of the evaluation on procurement TheGuidelines districts forshould PPPs facilitate should thebe evaluationdeveloped committeeand disposal in Local under Government Public PDEs Private committees through the proceeds from sale of Partnerships(PPPs) arrangements bid documents. 2. User departments are still interfering in the Users should be sensitized on their roles, and 6.1.4 Procurementrole of the PDU Cadre by the forumissuing forof LPOs. Local Governmentsnot to interfere with the activities of the PDU.
Under3. the There funding are delays of FINMAP, in payment PPDA to the conducted Providersa 2nd Procurement should be contractedCadre forum based for on Localthe Governments. The areasproviders covered which during affects this the Forum delivery included of Procuravailabilityement of of resources. Management, Moneys Control due to the , Maintenance and collectionservices. of revenue from lorry, pick-up and busesproviders parks, Procurement should be paid of within management 30 days afterof Markets. Ninety (90) Procurement Officers attended this Forum delivery 4. Lack of facilitation of the PDUs Accounting officers should try to facilitate the Issues raised and recommendations from the ProcPDUs.urement The CadreMOFPED Forum should for create local a fundingGovernments. code (IPF) for PDUs in the Local Governments 5. Use of force account was cheaper for the A circular or guideline on the use of force A number of issues were raised during this training as reflected in the table below. Local Governments since they had account should be issued. inadequate funds to implement projects, but Table 6:it Key was Issuesnot provided raised for at in the the Loca PPDAl Government law. Procurement Cadre Forum 6. The standard bidding documents were too Providers should be sensitised on the use of the No bulky Issue and complicated creating low Recommendationsstandard bid documents. 1 Lack of finances affects operations of PPDA will write to the Accountant General PDUs since they cannot independentlyPage 98 of 179to provide for a budget code for PDUs,so budget for their requirements. that they can plan as a department 2 The probation period of 2 years for The Accountant General to address the Procurement officers is too long as issue, so that staff can be funded for training PDU staff can not be funded for even when still on probation training. 3 No provision for promotion of officers Ministry of Public service to provide for beyond Senior Procurement officer or structures that cater for promotions beyond Principal Procurement Officer. these levels 4 Lack of guidelines on Revenue PPDA to come up with an SBD and a collection for Parks and Markets guideline for procurement and management of Markets, landing sites and Parks. 5 Use of force Account as a procurement Force account is a method of contracting method. under works. This can be used but all the inputs have to be acquired competitively. 6 The overlapping roles of PPDA and There is need to ensure harmony between IGG the two oversight agencies. 9 Evaluation committees were not There is need for PPDA to provide for the remunerated and therefore not evaluation of EC members in the motivated to do their work amendment of the Act 11 Use of reserve prices during evaluation Reserve prices should not be used for of bids evaluation since it is basically an estimate, unless under fixed budget selection methodology, where the budget is known to all. 12 The need to Prequalify providers for 3 LG PDEs should still pre-qualify for one years in LGs like the Central year until this provision is made in the law. government entities. 13 Need to centralize the recruitment and PPDA is to liaise with the Accountant deployment of procurement officers in General over the possibility of recruitment Local governments by the Ministry of of Procurement Officers in Local Finance governments by MOFPED
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Page 103 of 179 6.1.5 Supply Driven Training
PPDA conducted training for the Districts of Bundibugyo, Kasese, and Kampala City Council. In addition 6.1.5 Central Supply Driven Government Training Ministries which included Health, Local Government, Water and Environment and Education and Sports were trained. The training conducted covered the 12 PPDA training modules .Issues raisedPPDA inconducted the training training are contained for the Districtsin table below: of Bundibugyo, Kasese, and Kampala City Council. In addition Central Government Ministries which included Health, Local Government, Water and Environment and Education and Sports were trained. The training conducted covered the 12 PPDA training modules .Issues raised in the training are contained in table below:
Table 7: Emerging Issues Under Supply Driven Capacity Building Activities
No Issues Recommendations 1. Table There 7: areEmerging no cleaner Issues guidelines Under forSupply revenue Driven CapacityPPDA Building should Activities come up with guidelines for revenue collection from Markets and parks. collection from markets and parks 2.No TheIssues Local Governments were concerned that use of PPDARecommendations should issue guidelines on the use of force 1. force There accountare no cleaner was cheaper guidelines than for use revenue of contractors accountPPDA should come up with guidelines for revenue yetcollection force from account Markets and was parks. not a recognized collection from markets and parks 2. procurement The Local Governments method. were concerned that use of PPDA should issue guidelines on the use of force 3. Mostforce providers account wasin local cheaper governments than use were of contractors illiterate PPDAaccount should translate the PPDA Act and andyet unable force to account understand the was PPDA not Act a and recognized Regulations into local languages. regulationsprocurement method. 4.3. PPDAMost providers was making in local recommendations governments wereto the illiterate TherePPDA is shouldneed to amend translate the law the to PPDA give PPDA Act more and appropriateand unable toauthorities understand for the taking PPDA disciplinary Act and action powersRegulations to deal into withlocal peoplelanguages. who work contrary to againstregulations those who breach the procurement law but the law. Provisions should also be made for 4. with PPDA no was action making on some recommendations recommendations. to the penaltiesThere is needincase to of amend various the offences. law to give PPDA more 5. Thereappropriate was lack authorities of clarity for on taking what disciplinaryclassified action Ministrypowers to of deal defence with people should who give work clarification contrary on to procurementsagainst those whowere, breach and why the theyprocurement should not law be but classifiedthe law. procurements Provisions should also be made for regulatedwith no action by the on PPDA some Law.recommendations. penalties incase of various offences. 6.5. There was was lack a general of clarity observation on what classified that Government GovernmentMinistry of defenceshould benchmark should give on clarification NGO projects on projectsprocurements were costingwere, and higher why thanthey projectsshould not funded be by whenclassified budgeting procurements for government projects NGOsregulated such by as the churches. PPDA Law. 7.6. There were was a no general provisions observation in the law that for Government electronic TheGovernment law should should be benchmark amended to on provide NGO projects for e- procurementprojects were .This costing would higher render than it projects difficult funded to put byin procurementwhen budgeting i.e. usefor governmentof fax projects practiceNGOs such the as knowledge churches. and skills acquired in this 7. training. There were no provisions in the law for electronic The law should be amended to provide for e- 8. Theprocurement use of electronic .This would procurement render it difficult requires to the put use in PPDAprocurement should i.e. review use of the fax retooling needs of these ofpractice computers the knowledge and KCC, and Kasese skills and acquired Bundibugyo in this entities and solicit for funds to retool the entities Districtstraining. lack computers to facilitate electronic with computers. 8. procurement The use of electronic procurement requires the use PPDA should review the retooling needs of these of computers and KCC, Kasese and Bundibugyo entities and solicit for funds to retool the entities Districts lack computers to facilitate electronic with computers. 6.1.6 Demandprocurement Driven Training for Central Government PDEs
PPDA conducted demand driven training in twenty three (23) PDEs and one (1) procurement Students Association in which6.1.6 1626 Demandpeople were Driven trained Training. The peoplefor Central trained Government included Accounting PDEs officers, Contract committee members, users, PDU staff, politicians and board members. The PDEs trained included: PPDA conducted demand driven training in twenty three (23) PDEs3. and Civilone (1) Aviation procurem Authorityent Students Association in which 16261. peopleBusitema were trainedUniversity. The people trained included Accounting4. Comboni officers, ContractCollege committee members, users, PDU staff,2. politiciansCapital and Markets board authoritymembers. The PDEs trained included:5. Dairy Development Authority 3. Civil Aviation Authority 1. Busitema University 4. Comboni College Page 104 of 179 2. Capital Markets authority 5. Dairy Development Authority
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Page 104 of 179 6. Directorate of Ethics 15. National Forestry Authority 7. East African Community affairs 16. National Medical Stores 8. Kyambogo University 17. Office of the auditor General 9. Mandela National Stadium 18. Parliamentary commission 10. Ministry of Defence 19. Posta Uganda 11. Ministry of Health 20. Presidents Office (ISO) 12. Ministry of Water and Environment 21. Uganda colleges of commerce institutions 13. National Agricultural Research Organization 22. Uganda Investment Authority 14. National Drug Authority 23. Uganda Revenue authority
The details of the training conducted are contained in the Annex….
6.1.8 Residential Workshop for 13 Referral Hospitals
PPDA conducted a one day residential workshop for 13 regional referral hospitals and other stakeholders. The main objective of the workshop was to discuss the peculiar procurement issues affecting the stakeholders in the procurement and supply of medicines and make suggestions on how to improve performance of their respective roles in the procurement and disposal process. The areas covered during the workshop included the Procurement and Disposal Legal framework, Policy on Procurement of Drugs and Sundry items in Hospitals and Supply of Drugs and sundry items
The referral hospitals which attended included 1. Arua Referral hospital 7. Kabale Referral hospital 2. Butabika Referral hospital 8. Lira Referral hospital 3. Fort- Portal Referral hospital 9. Masaka Referral hospital 4. Gulu Referral hospital 10. Mbale Referral hospital 5. Hoima Referral hospital 11. Mbarara Referral hospital 6. Jinja Referral hospital 12. Soroti Referral hospital 13. Ministry of Health 15. National Medical Stores 14. National Drug Authority 16. Joint Medical Stores.
Key Issues from the Residential Workshop for 13 Referral Hospitals
During the residential workshop for 13 referral hospitals issues were raised and recommendations made. The issues and recommendations are contained in table below:
Table 8: Key Issues from the Residential Workshop for 13 Referral Hospitals
No. Issues Recommendations 1. The PPDA thresholds for micro The threshold should be increased to 5m procurement is low 2. The policy on credit line is only Ministry of Health should release part of the favoring NMS credit line funds to Joint Medical Stores and not National Medical stores alone 3. All Medicines need to be embossed / JMS should emboss medicines and drugs like sealed NMS 4. There are contradictory guidelines for The PPDA, Ministry of Health and National the procurement and supply of drugs Medical Stores procurement procedures should with the PPDA Act, 2003. be harmonized with that of PPDA 5. There are inefficiencies in the delivery National Medical Stores should inform PDEs of
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Page 105 of 179 5. Nakasongola, 27. Masaka, 6. Kibaale, 28. Sembabule, 7. Nakaseke, 29. Kiboga, 8. Mukono, 30. Gulu, 9. Luwero, 31. Adjumani, 10. Masindi, 32. Kanungu, 11. Buliisa, 33. Lira , 12. Mbale, 34. Pallisa, 13. Isingiro, 35. Kabarole, 14. Kiruhura, 36. Kisoro , 15. Rakai, 37. Kasese 16. Bugiri, 38. Soroti , 17. Amuria, 39. Wakiso, 18. Bushenyi, 40. Arua , 19. Mubende, 41. Bundibugyo District, 20. Hoima , 42. Kampala City Council, 21. Kapchorwa, 43. Lira Municipal Council, 22. Entebbe Municipality, 44. Tororo Municipal Council. 23. Jinja Municipality, 45. Ministry of Health 24. Mbarara Municipality. 46. Ministry of Local Government, 25. Rukungiri 47. Ministry of Education and sports 26. Kabale, 48. Ministry of Water and Environment.
Key issues noted from Hands on support activities and recommendations for action:
During the hands on support for PDEs, the following issues were raised and recommendations made as shown in table below:
Table 4: Key Issues Raised From Hands on Support and Recommendations.
No Key issues Recommendations 1. Lackof of drugs facilitation causing of the evaluation shortages in deliveryThe districts dates should and timefacilitate as the opposed evaluation to just committeeHospitals in Local Government PDEs deliveringcommittees any through time the any proceeds day withoutfrom sale prior of communicationbid documents. 2. 6. User Poor departments coordination are still interfering of drugin the PDEsUsers should should forward be sensitized annual on Procurement their roles, andplans roleprocurements, of the PDU by poorthe issuing handling of LPOs. of to not Joint to interfere Medical with Stores the andactivities National of the Medical PDU. emergencies and lack of knowledge on stores for purposes of planning for supply 3. Theredealing are with delays stock-outs in payment to the NationalProviders Medical should storesbe contracted should based provide on the PDEs providers which affects the delivery of withavailability Procurement of resources. plan format Moneys specific due to to drugs the 7. services. The lengthy procurement process of Theproviders handling should of emergencybe paid within procurements 30 days after is Drugs is a problem especially in catereddelivery for in the PPDA Law (fourth schedule) 4. Lackemergency of facilitation cases of the PDUs Accounting officers should try to facilitate the No. Issues RecommendationsPDUs. The MOFPED should create a funding 8. Evaluation Committees need to be Accountingcode (IPF) Officers for PDUs should in the Local work Governments within their 5. Useremunerated of force account was cheaper for the operationalA circular budgetor guideline to motivate on the use the of force evaluation Local Governments since they had committeesaccount should be issued. 9. inadequate Solicitor funds General to implement clearance projects, is too but PPDA should take up the matter with MOJCA itlengthy was not provided and bureaucratic for in the PPDA causing law. and also train The Ministry of Justice and 6. TheProcurement standard bidding delays documents were too ConstitutionalProviders should Affairs be Staffsensitised annually on the use of the 10. bulky Lack andof cooperation complicated increating PDEs lowand poor Accountingstandard bidOfficers documents. to handle administratively interpersonal relations 11. There is need for regular workshopsPage 98 of of National179 Medical Stores should organize all stakeholders involved in consultative workshops and should not wait for procurement and supply of medicines. PPDA PPDA should organize stakeholders’ workshops annually 12. Late release of funds by Ministry of PPDA should advise MOFPED to release funds Finance, Planning and Economic early Development 13. Certificate of non-availability only Credit line money should be shared between used to procure using funds of PDEs NMS & JMS on a percentage basis 14. NMS lacks regional distribution NMS should open Regional distribution Centres centres and causes delays in distribution
6.1.9 Conduct Research on Procurement and Disposal Systems and Capacity Building Initiatives
PPDA conducted research to identify problematic areas/points in the public procurement and disposal processes. Two (2) individual consultants were engaged to conduct research. This study was undertaken and the findings were as follows:
Table 9: Research findings on procurement and disposal systems and capacity building initiatives No Findings Recommendations 1. The minimum lead-time for a simple The authority considers revision of the thresholds procurement was about 7 weeks to reflect the demands of the various stakeholders. However, extensive consultations have to be made with different actors to forge the appropriate limits of the thresholds
2. The Structure and set up of the contracts The formation of the contracts committee should be committee was a problem. 5 members who are in revisited with a view of considering membership to
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Page 106 of 179 5. Nakasongola, 27. Masaka, 6. Kibaale, 28. Sembabule, 7. Nakaseke, 29. Kiboga, 8. Mukono, 30. Gulu, 9. Luwero, 31. Adjumani, 10. Masindi, 32. Kanungu, 11. Buliisa, 33. Lira , 12. Mbale, 34. Pallisa, 13. Isingiro, 35. Kabarole, 14. Kiruhura, 36. Kisoro , 15. Rakai, 37. Kasese 16. Bugiri, 38. Soroti , 17. Amuria, 39. Wakiso, 18. Bushenyi, 40. Arua , 19. Mubende, 41. Bundibugyo District, 20. Hoima , 42. Kampala City Council, 21. Kapchorwa, 43. Lira Municipal Council, 22. Entebbe Municipality, 44. Tororo Municipal Council. 23. Jinja Municipality, 45. Ministry of Health 24. Mbarara Municipality. 46. Ministry of Local Government, 25. Rukungiri 47. Ministry of Education and sports 26. Kabale, 48. Ministry of Water and Environment.
Key issues noted from Hands on support activities and recommendations for action:
During the hands on support for PDEs, the following issues were raised and recommendations made as shown in table below:
Table 4: Key Issues Raised From Hands on Support and Recommendations.
No Key issues Recommendations 1. most Lack cases of facilitation senior people of the in evaluation PDEs are always officersThe districts who areshould relatively facilitate less the busy evaluation but who can busycommittee and can in hardlyLocal Government form a quorum PDEs thereby alsocommittees withstand through the influence the proceeds from theirfrom superiors.sale of frustrating procurement work Thebid documents.study found out that most entity procurements 2. User departments are still interfering in the delayUsers because should be the sensitized quorum for on CC their meeting roles, cannotand role of the PDU by the issuing of LPOs. benot raised to interfere due to with commitment the activities of officers of the onPDU. other ‘official responsibilities’ 3. The frequent transfers of procurement officers The Accountant General and the policy unit under 3. within There public are delays service in were payment affecting to the procurement theProviders Ministry should of be Finance contracted should based come on the with work.providers which affects the delivery of guidelinesavailability on of the resources. modalities Moneys for transfer due of to officers. the services. providers should be paid within 30 days after delivery No.4. Issues Lack of facilitation of the PDUs RecommendationsAccounting officers should try to facilitate the 4. The major problematic areas in the procurement ItPDUs. was suggestedThe MOFPED that PPDAshould carriescreate outa funding a study process included (1) records management, (2) amongcode (IPF) all stakeholdersfor PDUs in thatthe Local had been Governments trained to Procurement planning, (3) Evaluation of bids, assess the extent to which the transfer of 5. and Use (4) of Awardingforce account of contracts. was cheaper These for arethe the knowledgeA circular inor workshops guideline onhad the actually use of been force realized areasLocal that Governments needed critical since attention they byhad mangers at andaccount to also should identify be issued. new knowledge gaps where institutionalinadequate level funds but to also implement policy makers projects, like butthe capacity building interventions and strategies PPDAit was not provided for in the PPDA law. should be based. This study should cover central 6. The standard bidding documents were too andProviders local government should be entitiessensitised . on the use of the 5. Thebulky number and complicated of PP forms creating used in low procurement Instandard the amendment bid documents. of the law, a provision should be and disposal were too many. made to rationalize the PP Forms by aggregating Page 98 of 179some of them. 6. The major problems that contributes to delayed It was recommended that PPDA takes up these procurement in central government entities issues to a higher policy level to come up with a include (1) Lack of technical capacity to prepare solution. bid documents; (2) Poor motivation of Contract Committee members;(3) Lack of sufficient pre- qualified providers; (4) Wrong documentation to Contract Committee(5) Delayed advertisement due to Lack of funds to pay media firms (7) Delays in sending out solicitation documents (8) conflict of interest (9) lack of technical capacity (10) political interference 7. The major problems that lead to delays in the It was suggested that the authority reviews the procurement process during formation of requirement for approval like of documents and contract stage were found to be (1) Delayed thresholds which were already clarified by the law. clearance by the solicitor general for contracts above 50m, ;(2) The length of statutory display period being long;(3) Delay in furnishing a performance security; and (4) Delayed dispatch to the provider of the signed contract. 8. other minor problems but which need to be Accounting officers need to ensure these issues are addressed included (a) Delayed contract handled administratively to speed up the process. committee meetings and (b) Delays in display of the best-evaluated bidder which affects timely award
6.1.10 Dissemination of Procurement and Education Training Regulations 2008
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Page 107 of 179 most cases senior people in PDEs are always officers who are relatively less busy but who can busy and can hardly form a quorum thereby also withstand the influence from their superiors. frustrating procurement work The study found out that most entity procurements delay because the quorum for CC meeting cannot be raised due to commitment of officers on other ‘official responsibilities’ 3. The frequent transfers of procurement officers The Accountant General and the policy unit under within public service were affecting procurement the Ministry of Finance should come with work. guidelines on the modalities for transfer of officers.
No. Issues Recommendations 4. The major problematic areas in the procurement It was suggested that PPDA carries out a study process included (1) records management, (2) among all stakeholders that had been trained to Procurement planning, (3) Evaluation of bids, assess the extent to which the transfer of and (4) Awarding of contracts. These are the knowledge in workshops had actually been realized areas that needed critical attention by mangers at and to also identify new knowledge gaps where institutional level but also policy makers like the capacity building interventions and strategies PPDA should be based. This study should cover central and local government entities . 5. The number of PP forms used in procurement In the amendment of the law, a provision should be and disposal were too many. made to rationalize the PP Forms by aggregating some of them. 6. The major problems that contributes to delayed It was recommended that PPDA takes up these procurement in central government entities issues to a higher policy level to come up with a include (1) Lack of technical capacity to prepare solution. bid documents; (2) Poor motivation of Contract Committee members;(3) Lack of sufficient pre- qualified providers; (4) Wrong documentation to Contract Committee(5) Delayed advertisement due to Lack of funds to pay media firms (7) Delays in sending out solicitation documents (8) conflict of interest (9) lack of technical capacity (10) political interference 7. The major problems that lead to delays in the It was suggested that the authority reviews the procurement process during formation of requirement for approval like of documents and contract stage were found to be (1) Delayed thresholds which were already clarified by the law. clearance by the solicitor general for contracts above 50m, ;(2) The length of statutory display period being long;(3) Delay in furnishing a performance security; and (4) Delayed dispatch to the provider of the signed contract. 8. other minor problems but which need to be Accounting officers need to ensure these issues are addressed included (a) Delayed contract handled administratively to speed up the process. committee meetings and (b) Delays in display of the best-evaluated bidder which affects timely award
6.1.10 Dissemination of Procurement and Education Training Regulations 2008 PPDA held Eight (8) meetings and one stakeholders’ workshop to spearhead the dissemination of Page 107 of 179 Procurement Education and Training standards. In addition a hands on support was carried out in 8 universities to disseminate the standards .The universities visited included:
i. Islamic University in Uganda (IUIU). ii. Kyambogo University iii. Makerere Business School (MUBS) iv. Nkumba University v. Uganda Christian University (UCU) vi. Uganda Management Institute (UMI) vii. Uganda Martyrs University
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Page 108 of 179 During the consultations and hands on support the following issues were raised and are contained in the tables below.
Table 10: Key issues from issues from the Procurement Standards Stakeholder’s Workshop
No. Issue Recommendations 1. National Council for higher education has not There is need for more dissemination sufficiently disseminated the new entry implementation and feed back requirements to Universities 2. Other training courses were run in There is need for statutory instruments for Universities and tertiary institutions without other courses such as medicine ,Nursing etc guiding regulations passed by parliament 3. In most cases Regulations are passed by National council for higher education parliament but National Council for higher should find more ways of disseminating education does not sufficiently disseminate the passed Regulations. the Regulations to stakeholders. Institutions should subscribe to Uganda gazette to get information on regulations passed by parliament 4. Some courses offered by universities and Universities should trace people they taught other tertiary institutions may no longer be who are employed to ascertain whether relevant to the current employment what they taught them is still relevant requirements and therefore needed to be improved upon Universities should carry a needs assessment with employers to identify their current training needs.
Professional bodies should also be consulted during the design of training curriculum 5. The training standards of some higher For standardization of training government institutions of learning some times do not needs to closely monitor private institutions measure to the required national standards 6. Since these regulations are being implemented There is need to hold another stakeholders for the first time, a lot of challenges are workshop in future to discuss the expected in the implementation process. implementation challenges and the way forward 7. Some Private Institutions such as Uganda Training institutions should write to PPDA Martyrs University reported that they had and request for training. inadequate skills and knowledge to manage procurement and disposal and there fore expressed the need for training for their procurement stakeholders. 8. Most Universities lacked procurement More textbooks for procurement courses reading materials /text books and did not should be procured and also subscribe to subscribe to International journals international and national journals.
9. Getting placements for student’s internship PPDA in collaboration with MOFPED, and was a challenge. Government entities and MOLG should make contacts for students to other organisations are not receptive of undertake industrial training students who go there for industrial training Universities should take personal efforts to secure placements for industrial training
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Page 109 of 179 No. Issues Recommendations 10. Low qualifications of Lecturers at Mbarara Lecturers should be upgraded through University of Science and Technology training for Masters and PHD programmes 11. Limited computer access points in Mbarara Improve internet system to enable Students University of science and Technology and access international journals Kyambogo University were reducing accessibility to international Journals 12. Inadequate funding from government for the Government should increase funding to Government funded Universities universities 13. Inadequate number of academic lecturers to Universities should increase the number of match with the big number of students/high lecturers to match with the high number of enrolment in Government funded institutions students. 14. Insufficient facilities such as training space There should be Sufficient training space and computers. and computers should be provided 15. There is need for skills based training but the Universities should start providing skills time available is so short to accommodate that based training training 16. Lack of enough library facilities at UMI at UMI Should provide sufficient library Mbarara Centre facilities in all its centres 17. Lack of enough computers at UMI and UMI and Kyambogo University should buy Kyambogo university to cater for the big more computers and have separate number of students computer labs for procurement students
CHAPTER 7: STRENGTHENING THE INTERNAL ORGANISATION
Internal administration and management of the Authority is provided for under Section 17 to 22 of the PPDA Act. Under the provisions of Section 17 and 22 of the PPDA Act the PPDA manages the Human Resource function, general administration, information technology that includes records management and library; and accounting and finance related matters.
7.1 Human Resource
At the end of the financial year the Authority had 63 members of staff in post. Five (5) positions fell vacant during the year as a result of staff resignations, new posts being created and unfilled positions on the establishment. The following six (6) positions were filled during the year.
i) Officer Procurement Audit and Investigations ii) Administrative Secretary iii) Manager Legal and Compliance iv) Accounts officer v) Office Assistant
Towards the end of the financial year, the following four (4) vacant positions were advertised to have them filled:
i) Information Technology Support Officer ii) Accounts officer iii) Receptionist iv) Stores and Records Assistant
In a bid to enhance staff welfare, the Authority signed a contract with East African Underwriters Ltd to provide medical insurance services to staff and their dependants. Page 110 of 179
Page 110 of 179 In a bid to attract, motivate and retain staff in the Authority, staff remunerations were revised upwards with effect from 1 July 2008 after benchmarking with the Authority’s sister organizations.
The Authority organized a staff retreat for its staff under the theme “Governance and Service delivery” in March 2009. Five (5) resource persons were hired to make presentations on selected topics. The staff also discussed issues that affect their work.
A training program for the purpose of training newly recruited staff in the Authority was drawn. It was found necessary to give them sufficient training in their jobs to facilitate acceptable levels of performance. It was not possible to train the rest of staff due to insufficient funds however some of them attended continued professional development programs.
7.2 General Administration
During the Financial year 2008/9, the Authority continued to provide operational logistics to staff in a conducive work environment that enabled them to appropriately deliver on the Authority’s mandate.
7.3 Information Technology
7.3.1 PPDA Website
The Authority enhanced its website (www.ppda.go.ug) to provide procurement and disposal related information in a way that promotes transparency and builds confidence in the entire public procurement and disposal practice including making PPDA’s mandate known and also providing information and guidance on the PPDA Act to the public.
7.3.2 Electronic Document Management System
The Authority’s advisory function under its mandate brings with it a lot of communication on paper with both providers and procuring and Disposing Entities; and subsequently the paper work generated, processed and stored by the Authority is increasing exponentially. The increase in documents and communication affects efficient work-flow, file space and file management. In order to address these issues; the Authority procured an Electronic Document Management System (EDMS) that should be able to provide for Electronic processing of both electronic and paper-based documents, including long-term secure and reliable storage for documents. Staff have been trained in the use of the system and documents are being transformed into electronic form.
CHAPTER 8: CHALLENGES
While the Authority has realized a number of achievements as mentioned above, it is still faced with a number of challenges in the fulfillment of its mandate as indicated below:
1. Low compliance levels with the PPDA law at CG and LG level especially with respect to record keeping and the Authority has limited enforcement powers. 2. Procurement planning and monitoring of implementation of the plans is lacking. 3. Delays to initiate procurements by Procuring and Disposing Entities affects absorption and use of the correct procurement methods and therefore, competition is not always considered during procurement. 4. Poor handling of complaints by Accounting Officers. There is need to strengthen the complaints handling mechanisms at both the Procuring and Disposing Entity and PPDA levels. 5. Collusion between PDEs and Bidders frustrates the Authority’s attempts to suspend bidders with unethical practices.
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Page 111 of 179 6. Low capacity of bidders to submit responsive bids leads to aggressive commercial wars in procurement. 7. Lack of adherence to the principle of confidentiality during the bidding process by PDEs. 8. Failure of Entities to debrief bidders on reasons why they were not successful. 9. Low attendance of workshops by participants in the capacity building process.
CHAPTER 9: WAY FORWARD FOR THE FY 2009/10
In line with its overall mandate of promoting transparency, efficiency and value for money, and enforce its mandate, the Authority will focus on the following areas as priority in the FY 2008/09:
In light of the PPDA Corporate Plan, the ASWG strategy and the National Development Plan, the Authority this Financial year shall prioritise its activities as follows:
a) Develop an effective procurement performance measurement system (PPMS) to progressively monitor the performance of the public procurement system in Uganda.
b) Enforce compliance of the procuring and disposing entities with the PPDA Act by increasing the number of compliance checks and procurement audits undertaken on procuring and disposing entities and making regular follow ups on the status of implementation of PPDA recommendations by the competent authorities.
c) Enforce the requirement of procurement planning by procuring and disposing entities as critical tool for the effective management of the procurement function and the efficient delivery of services by linking the implementation of procurement plans to the budget execution process.
d) Review and streamline the structure and operations of PPDA with a view to making them more efficient and effective in achieving the mandate of PPDA.
e) Participate in the process of amendment of the PPDA Act to ensure that there is a strengthened public procurement system that delivers value for money.
f) Implement the PPDA Capacity Building Strategy through by the development of the capacity of the various stakeholders to efficiently and effectively manage the procurement function.
g) Develop, operate and maintain a Register of Providers to serve as a central reference point of information on providers and thus enhance transparency and a competitive business environment for the public procurement system. h) Strengthen the internal Information Communication and Technology function to support the efficient and effective implementation of PPDA’s mandate.
i) Review the PPDA Public Relations and Communications Strategy to enhance the development of strategic partnerships and linkages with key stakeholders as well as raise awareness amongst the public of the role of the PPDA and the public procurement system in Uganda.
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Page 112 of 179 CHAPTER 10: AUDITOR GENERAL’S REPORT
OFFICE OF THE AUDITOR GENERAL
THE REPUBLIC OF UGANDA
PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY
(PPDA) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2009
TOGETHER WITH THE REPORT AND OPINION THEREON BY
THE AUDITOR GENERAL
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Page 113 of 179 PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY
Financial Statements for the Year Ended 30th June, 2009
CONTENTS PAGES
Auditor General’s Report 114-115
Corporate Information 116
Report of the Directors 117
Statement of Directors’ responsibilities 118
Balance Sheet 119
Revenue and Expenditure 120
Statement of changes in financing 121
Statement of cash flows 122
Notes to the financial statements 123- 131
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Page 114 of 179 REPORT OF THE AUDITOR GENERAL TO PARLIAMENT IN RESPECT OF PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY FOR THE YEAR ENDED 30TH JUNE 2009
Under the terms of section 21 of the Public Procurement and Disposal of Public Assets Authority (PPDA) Act of 2003, I am required to audit the accounts of the Authority and report to Parliament in accordance with Article 163 (4) of the Constitution.
Report
The financial statements of Public Procurement and Disposal of Public Assets Authority set out on pages 5 to 15 which comprise the balance sheet as at 30th June 2009, the statement, statement of changes in equity and cash flow statement for the year then ended and summary of significant accounting policies and other explanatory notes have been audited.
Directors’ Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standards and the Public Procurement and Disposal of Public Assets Authority Act, 2003. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
The responsibility of the Auditor is to express an independent opinion on the financial statements based on the audit. The audit was conducted in accordance with International Standards on Auditing. Those standards require that the audit is planned and performed to obtain reasonable assurance as to whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the Auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Auditor considers the internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Authority’s internal control. An audit also includes evaluating the appropriateness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
In my opinion, the financial statements give a true and fair view of the state of affairs of the Authority as at 30th June 2009 and of the surplus and cash flow for the year then ended and comply with the Public Procurement and Disposal Act, 2003.
Report on Other Legal and Regulatory Requirements
Page 115 of 179
Page 115 of 179 As required by the Public Procurement and Disposal of Public Assets Authority (PPDA) Act, I report to you based on the audit, that:
(i) All the information and explanations which were necessary for the purposes of the audit were obtained. (ii) Proper books of account have been kept by the Authority, so far as appears from the examination of those books, and (iii) The Authority’s balance sheet and income statement are in agreement with the books of account.
John F.S. Muwanga
AUDITOR GENERAL
KAMPALA
8th December 2010
Page 116 of 179
Page 116 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
CORPORATE INFORMATION
DIRECTORS Mr. James Kahoza (Chairman)
Eng. Y.B. K Mpagi
Mr. Anthony Okwenye
Mr. John B.O. Wabwire.
Ms. Sarah Lubega
Mr. David Kabateraine
Mr. Agaba Edgar (Executive Director)
BOARD SECRETARY Mrs. Sabiti Cornelia
AUDITORS Office of the Auditor General
Government of Uganda
PRINCIPAL BANKERS Bank of Uganda
P. O. Box 7120
Kampala
Uganda
Page 117 of 179
Page 117 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
REPORT OF THE DIRECTORS
The Directors 1resent their report together with the audited financial statements for the year ended 3O June 2009 in accordance with the PPDA Act Section 22 which discloses the state of affairs of the Authority.
Incorporation
Public Procurement and Disposal of Public Assets Authority was established by the
Parliament of Uganda under the Public Procurement and Disposal of Public Assets Act, No.1 of 2003.
Objectives
The PPDA’s objectives are as set out in Section 6 of the Act, namely, to: a) ensure the application of fair, competitive, transparent, non-discriminatory and value for money public procurement and disposal standards and practices; b) harmonise the procurement and disposal policies, systems and practices of the Central Government, Local Governments and statutory bodies; c) set standards for the public procurement and disposal systems in Uganda; d) monitor compliance of procuring and disposing entities; and e) build procurement and disposal capacity in Uganda. Ownership
Public Procurement and Disposal of Public Assets Authority is an autonomous body corporate established by an Act of Parliament.
Results
The results for the year are shown on page 6.
Directors
The present membership of the Board is set out on page 2.
Auditors
The audit of the Authority was carried out by the Auditor General in accordance with the powers entrusted to him in Article 163(3) of the Constitution of the Republic of Uganda.
By order of the Board
______Executive Director
Page 118 of 179
Page 118 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
Statement of Directors’ responsibilities
For the year ended 30th June 2009______
The Public Procurement and Disposal of Public Assets Act of 2003 requires the directors to prepare financial statements for each financial year. It also requires that the Authority keeps proper books of Account and records of all its transactions.
The directors accept responsibility for the annual financial statements, set out on pages 5 to which have been prepared using appropriate accounting estimates; in conformity with International Financial Reporting Standards and the requirements of the Public Procurement and Disposal of Public Assets Act. The directors are of the opinion that the statements give a true and fair view of the financial affairs of the Authority and of its surplus for the year. The directors accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements as well as adequate systems of internal control.
…………………………………………… ………………………………………
Executive Director Head, Finance and Administration
Page 119 of 179
Page 119 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
STATEMENT OF FINANCIAL POSITION
AS AT 30TH JUNE 2009
NOTES 2009 2008
SHS SHS
NON-CURRENT ASSETS 2 ,423,231,903 2, 477,614,570
CURRENT ASSETS:
Stores 3 42,324,097 26,778,700
Debtors & Prepayments 4 216,938,505 394,465,796
Bank and Cash Balance 5 1,335,086,083 2,439,332,118
1,594,348,685 2,860,576,614
CURRENT LIABILITIES:
Accounts Payable and Accruals 7 459,867,651 507,439,663
NET CURRENT ASSETS: 1, 134, 481,034 2,353, 136,951
TOTAL NET ASSETS 3,557, 712,937 4830,751,521
FINANCED BY: 3,557,712,937 4,830,751,521
3,557,712,937 4,830,751,521
…………………………………Executive Director
………………………………….Head, Finance and Administration
Page 120 of 179
Page 120 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30TH JUNE 2009
ITEM DESCRIPTION NOTES SHS SHS
2008/2009 2007/2008
REVENUE
Government Release 3,568,403,369 3,520,100,000
Donor funding 14 2,170,441,678 4,204,076,519
Other revenue 15 63,409,302 25,954,813
Total Revenue 5,802,254,349 7,750,131,332
EXPENDITURE
Staff costs 8 3,273,189,872 444,414,845
Finance & Administration costs 9 954,051,628 892,050,921
Other expenses 10 146,510,973 101,705,833
Board Expenses 11 92,400,327 115,993,476
Other charges 12 2,285,685,277 2,277,593,983
Finance cost 13 1,748,192 16,770,790
Depreciation 2 331,615,451 312,954,719
Total Expenditure 7,085,201,720 6,161,484,567
SURPLUS (DEFICIT) for the year (1,282,947,371) 1,588,646,765
Page 121 of 179
Page 121 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30TH JUNE 2009
Note SHS SHS
2009 2008
Balance at 1st July 4,830,751,521 3,384,583,650
Prior Year Adjustments 17 28,047,950 0
Refunds to funding sources 16 (18,139,163) (142,478,894)
Restated balance 4,840,660,308 3,242,104,756
Surplus/ (Deficit) for the year (1,282,947,371) 1,588,646,765
Accumulated Surplus for the year as reported 3,557,712,937 4830,751,521
Page 122 of 179
Page 122 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
STATEMENT OF CASH FLOWS FOR YEAR ENDED 30TH JUNE 2009
SHS SHS
Cash flows from operating activities 2009 2008
Excess of income over expenditure (operating surplus) (1,282,947,371) 1,588,646,765
Adjustments for:
Loss on sale of equipment 22,269,229 0
Depreciation 331,615,451 312,954,719
Prior year adjustments (Revenue Reserves) 17 28,047,950 0
(901,014,741) 1,901,601,484
Decrease/(increase) in goods in transit 0 81,491,486
Decrease/ (Increase) in stores control account (15,545,397) (5,816,753)
Decrease in debtors & prepayments 177,527,291 6,781,256
Increase/ (Decrease) in payables (47,572,012) (31,970,364)
Net cash flows from operating activities (786,604,859) 1,952,087,109
Cash flows from investing activities
Purchase of property, plant and equipment (333,787,012) (764,888,814)
Proceeds from sale of equipment 34,284,999 0
Refunds to funding sources 16 (18,139,163) (142,478,894)
Net cash flows from investing activities (317,641,176) (907,367,708)
Net increase (decrease) in cash and cash equivalents (1,104,246,035) 1,044,719,401
Cash and cash equivalent at beginning of the year 2,439,332,118 1,394,612,717
Cash and cash equivalents at year end 1,335,086,083 2,439,332,118
Page 123 of 179
Page 123 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR 2008/09
1. ACCOUNTING POLICIES a. BASIS OF ACCOUNTING
(i) The accounts are prepared under the historical cost convention together with the accrual concept.
All the relevant International Accounting Standards (IASs) have been complied with. b. STORES
Items in stock are stated at the lower of cost and net realizable value. These are all Consumables. c. DEPRECIATION
Fixed assets are depreciated for twelve months in the year of acquisition and no depreciation is charged in the year of disposal as follows:
Motor Vehicles 25%
Office Equipment 20%
Office Furniture 10%
Telecommunication System 20%
Computers 33%
Buildings 04%
Depreciation is calculated using Reducing Balance method. d. FOREIGN CURRENCY
Foreign currency transactions are recorded in Uganda shillings at the prevailing rate of exchange on the date of the transaction.
Assets and liabilities in foreign currency at the close of the year are translated into Uganda Shillings at the rate ruling at the Balance Sheet date. Any resulting gains or losses are taken to the Income and Expenditure Account.
No foreign currency bank account was held during the year.
Page 124 of 179
Page 124 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORJTY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR 2008/09
e. GOVERNMENT RELEASES
All Grants received in cash form are reflected in the Income and Expenditure Statement for the period.
Page 125 of 179
Page 125 of 179 Page 126 of 179
Page 126 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORJTY
3. STORES
Items in the store were valued at Shs.42, 324,097=
4. DEBTORS & PREPAYMENTS
Debtors included in the Balance Sheet refer to Accountable advances to Staff to procure office related goods or services, staff salary advances, and prepayments made for goods and services that were received after year end.
SHS SHS
2009 2008
Accountable Advances 78 ,382,162 84,963,273
Personal Advances 41,905,919 29,679,420
Deposits and Prepayments 82,343,021 259,820,755
N.S.S.F 0 382,500
C. P. Tax 0 50,000
Sundry Debtors 14,307,403 20,219,848
216,938,505 394,465,796
5. CASH AND BANK BALANCES
Bank - Bank of Uganda RNG Project. 1,233,004,796 2,049,882,403
Bank - Bank of Uganda Vote 4,727,087 38,700,008
Bank - Bank of Uganda UNDP Project 33,686,630 358,988
Bank - Bank of Uganda DANIDA Project 9,902,926 10,826,366
Bank — Bank of Uganda EU Project a/c 2 45,808,539 303,780,657
Bank — Bank of Uganda EU Project a/c 1 10 10
Bank-Citibank 4,118 4,118
PPDA Office Imprest 1,193,600 2,472,600
Cash at Rand 5,015,377 31,563,968
Contingency Float— DANIDA 1,000,000 1,000,000
Office Imprest — EU Project 243,000 243,000
ED’s Office Imp rest 500,000 500,000
1,335,086,083 2,439,332,118
Page 127 of 179
Page 127 of 179 6. CURRENCY
The financial statements are expressed in Uganda shillings.
7. ACCOUNTS PAYABLE AN.D ACCRUALS:
Other Local Trade Creditors 248,652,412 483,124,078
Accruals 177,634,515 688,159
Local Service Tax Payable 5,495,000 0
P.A.Y.E 4,206,855 2,821,955
Income due to Government Nil 3,001
Salaries Payable 5,734,400 6,785,895
NSSF 1,546,546 0
WHT Payable 16,597,923 14,016,575
459,867,651 507,439,663
Page 128 of 179
Page 128 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR 2008/09
SHS SHS
2008/2009 2007/2008
8. STAFF COSTS
Salaries 3,179,347,791 2,368,137,360
Other staffing costs 93,842,081 76,277,485
3,273,189,872 2,444,414,845
9. FINANCE & ADMINISTRATION COSTS
Rent 191,499,840 191,499,840
Stationery 70,225,247 92,364,901
Equipment maintenance 78,944,713 62,034,787
Travel 78,994,304 89,398,055
Vehicle running & maintenance 164,793,685 133,651,677
Communications 123,073,389 146,903,044
Utilities 19,320,116 7,654,411
Office Cleaning 31,700,489 15,069,848
Newspapers, magazines & periodicals 13,279,100 10,465,000
Office miscellaneous 75,250,651 7,3 16,703
Fees and Charges 84,700,865 71,692,655
Loss on sale of Fixed Assets 22,269,229 0
954,051,628 892,050,921
10. OTHER EXPENSES
Subscriptions 31,337,853 12,321,790
Insurances 56,894,717 36,939,527
Public Relations 58,278,403 52,444,516
146,510,973 101,705,833 Page 129 of 179
Page 129 of 179 11. BOARD EXPENSES
Sitting Allowances 34,420,000 43, 150,000
Retainer Fees 43,000,000 54,100,000
Foreign and Local transport 4,270,000 13,661,000
Other Board Expenses 10,710,327 5,082,476
92,400,327 115,993,476
PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR 2008/09
SHS SHS
2008/009 2007/2008
12. OTHER CHARGES
Technical Management Assistance 0 137,902,867
Human Resource development 53,576,499 532,804,157
Corporate Programs 386,230,297 412,268,546
Documentation Centre & Library development
and admin program activities 37,397,008 25,258,325
Training support for procuring entities 180,033,750 197,488,466
UNDP/Capacity Building Project 424,896,554 264,324,484
Audits, Inspections & investigations 391,053,585 221,156,305
Harmonize Central & Local Government
procedures & Policies 812,497,584 486,390,833
2,285,685,277 2,277,593,983
Page 130 of 179
Page 130 of 179 13. FINANCE COST
The total finance cost of Shs 1,748,192=, refers to bank charges.
14. DONOR FUNDING
SHS SHS
Donor
USAID – ACT 0 3,245,293
DFID 0 2,327,836
European Union 440,915,631 751,175,000
DANIDA 60,000,000 479,233,612
United Nations Development Program 415,181,047 401,776,249
Royal Netherlands Government 1,254,345,000 2,566,318,529
2,170,441,678 4,204,076,519
15. OTHER REVENUE
Bid Income 1,690,000 925,000
Sale of Publications 12,304,729 19,229,384
Loss on disposal of Assets 0 40,590
Exchange gain 3,548,574 5,759,839
Disposal proceeds 45,865,999
63,409,302 25,954,813
Page 131 of 179
Page 131 of 179 PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS AUTHORITY
16. REFUNDS TO FUNDING SOURCES
Refunds to funding sources refer to balances on accounts not utilized by the end of the financial year and returned to funding source:
2008/9 2007/8
SHS SHS
1. Balance on Vote a/c returned to Consolidated Fund 18,139,163 130,944,125 2. Balance on Startup to EU Project returned to EU 0 11,534,769 18,139,163 142,478,894
17. PRIOR YEAR ADJUSTMENTS
Prior year adjustments refer to adjustments made to correct very old creditors’ balances.
Creditor Amount
Dama Consultants 15,316,000
Cephas Inn 1,250,000
Travelog 62,325
Travelog 128,460
Bushnet 125,925
Developlan 500,000
Kazinga Channel 965,000
Magazine Centre 2,242,000
Lornrho Motors 3,137,171
Amber House 2,878,873
Muva Printers 374,400
Spice Radio 533,898
Spice Radio 533,898
Total 28,047,950
Page 132 of 179
Page 132 of 179 APPENDIX 1 i. Procurement audit of Uganda Investment Authority
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 22 73% 2,194,160,490 15% Medium Risk 3 10% 38,488,210 0% Low Risk 4 13% 2,422,688,075 17% Satisfactory 1 3% 9,724,046,539 68% Total 30 100% 14,379,383,314 100%
Key findings x Twenty two (22) procurement action files lacked most of the procurement records. x There was no CC involvement whatsoever in many of the procurements audited. x The procurement environment issues included:- o Extremely weak procurement structures o No procurement plan o No evidence of how the pre-qualification list was generated. o Non pre-qualified providers invited to bid o No evidence of contracting and contract performance in many cases o Disregard of Public procurement rules and Regulations o Entity did not report to PPDA at all over the period reviewed Recommendations x CID should investigate twenty two (22) procurement action files with missing records. x The AO must ensure that the PDU and user departments maintain the procurement records and contract management records in accordance with Regulations 90 &91 x The AO should ensure that the PDU prepares a consolidated annual procurement plan encompassing all the projects of the entity to facilitate orderly execution of procurement activities. x The AO should ensure that monthly procurement reports are submitted to the Authority by the 15th day of each month for the previous month using PP form 200 and attaching PP form 202 on the micro-procurements. x AO should consider training of the procurement structures of the entity in Public procurement modules to enhance and improve the performance of the entity in the procurement function.
Procurement audit of Kabarole District Local Government
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 17 57 553,451,710 59 Page 133 of 179
Page 133 of 179 Medium Risk 9 30 275,718,000 29
Low Risk 4 13 113,000,000 12
Satisfactory 0 0 0 0 Total 30 100 942,169,710 100
Findings x Procurements requisitions were raised without the statement of requirements contrary to PPDA LG Regs. 2006. x There was no evidence of confirmation of funds by the Accounting Officer contrary to Regulation 65(7) of the PPDA LG Regulations, 2006. x The entity was using the wrong method of procurement(s). x There were instances where the evaluation criterion would not be stated in the bid document contrary to Section 71 (2) of the PPDA LG Regulations, 2006. The Evaluation Committees recommended award of contracts using budget estimates and ignoring the bidder’s price proposals. x For contracts above 50 million, there was no evidence of approval of contract document by the Solicitor General in all the cases audited. x The entity incurred financial loss totaling Shs 2,590,211/= mainly arising from awarding contracts at budget estimates. x The three procurements without documentation with a total value of 9,695,500/= were missing. x There is no substantive PDU and the role of PDU was carried out by the Assistant CAO.
Recommendations x The Accounting Officer should account for 9,695,500/= that was unaccounted for and recover 2,590,211/= from the various individuals cited in the detailed report. x The Accounting Officer should ensure that all procurement requirements are initiated using LG PP Form 1 and specifications attached in accordance with LG/PPDA Regulation 65(1). x The Accounting Officer should ensure availability of funds are confirmed prior to commence of the procurement process be in accordance with LG/PPDA Regulation 65(7). x The Accounting Officer should ensure that the position of HPDU at the Entity is filled. x The Head PDU should prepare bidding documents for all procurements in accordance with L/G/PPDA Regulation 25(1) (h). x The Head PDU should ensure that the evaluation exercise is properly managed in accordance with LG/PPDA Regulation 25 (2) (d). x All contracts above 50 million should be forwarded to the Solicitor General for approval as a constitutional requirement. x The AO should ensure the PDU maintains procurement and disposal records as required under LG/PPDA Regulation 31(o).
Procurement audit of Uganda Blood Transfusion Services
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 15 50% 1,350,491,223 74% Medium Risk 1 3% 62,900,000 3%
Page 134 of 179
Page 134 of 179 Low Risk 3 10% 400,565,800 22% Satisfactory 11 37% 19,744,750 1% Total 30 100% 1,833,701,773 100%
Key findings x Seven (7) procurement action files worth 12,507,079/= were not availed for review. x In the procurement of blood testing kits, the best financial offer was from Faram E.A Ltd at US $ 258,143.90 against Mission Pharma’s offer of USD 339,996.59. However the Evaluation Committee split the award between the two bidders (Faram E.A Ltd $ 218,294.96 and Mission Pharma $ 100,708.92). The combined recommended bid price for this procurement (Lot 3) was thus USD 319,003.88. This was $ 60,860 more than Faram’s offer of USD 258,143.90. x Bids for the supply of medical equipment were accepted after the deadline for bid submission without evidence of extension of deadline. M/s Jos Hansen was denied award of tender by the EC under unclear circumstances causing a financial loss of $8,482. x Poor record keeping such that most cases lacked post contract and contract management documentation, bid notices, records of issue, receipt and opening of bids, evaluation reports, no signed ethical codes of conduct by Evaluation Committee. All documents concerning payments were kept at Aclaim Africa (PEPFAR fund managers) and no copies were kept by the PDU or Accounts Section at UBTS.
Recommendations x The Accounting Officer should take disciplinary action against the Evaluation Committee for causing a probable financial loss of $ 8,482. x The Criminal Investigations Department investigate the procurement of blood testing kits and take appropriate action against the officers responsible for causing a probable financial loss of USD 60,860. x The CID should investigate the 7 missing files worth 12,507,079/= and take appropriate action against the responsible Officer (HPDU). x The Accounting Officer should take disciplinary action against the Procurement Officer, Mr. Kajungu Geoffrey for evaluating bids received after submission deadline contrary to Reg 158 (5) & (6). x The AO should take appropriate disciplinary action against the CC for granting retrospective approval of procurement. ii. Procurement audit of Mubende District Local Government
The Authority sampled 20 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 12 60% 312,630,009 30% Medium Risk 1 5% 1,500,000 0% Low Risk 7 35% 727,724,937 70% Satisfactory - - - - Total 20 100% 1,041,854,946 100%
Key findings Page 135 of 179
Page 135 of 179 x Seven files worth UGX 86,525,164 were not provided for review x Poor record keeping e.g no evaluation records on file and contract management documents missing x There was an unexplained variance of Shs.4.3 billion between procurements reported to PPDA and procurements as budgeted for. x Wrong procurement methods used. x The District was not using standard bidding documents and standard PPDA Local Government Procurement Forms. x The entity did not seek the Solicitor Generals approval of contracts exceeding 50 Million x The CC in some cases did not approve the composition of the evaluation committees.
Recommendations x The Criminal Investigation Department should investigate the 7 missing file worth 86,525,164/= and take appropriate action against the responsible officials. x The AO should take appropriate disciplinary action should be taken against the PDU and User Departments for initiating and proceeding with procurements without procurement requisitions, confirmation of funding by the AO which violates the provisions of LG/PPDA Regulation 65. x Appropriate disciplinary action should be taken against the PDU for non use of PPDA standard PP LG forms. x The CC should be held responsible for not approving evaluation committees as required by LG/PPDA Regulation 17(1)b. x The PDU should ensure all procurement and Disposal process documentation is kept on their respective action files. x The User departments and the PDU should be held responsible for non compliance of the provisions of the PPDA Regulation 62 regarding procurement planning. iii. Procurement audit of Sironko District Local Government
The Authority sampled 20 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 11 55 375,310,552 63 Medium Risk 9 45 216,176,000 37 Low Risk 0 0 0 0 Satisfactory 0 0 0 0 Total 20 100 591,486,552 100
Key findings x One file worth 78,124,387/= for the purchase of a Toyota Hilux Double Cabin by M/s Yusumuga Auto Ltd was not submitted for review. x No record of solicitation or receipt of bids x Bid opening was not done in the presence of the PDU or CC member. x No CC approval of the solicitation documents, bid notices, and procurement methods. x In some instances, Evaluation Committee members were not approved by CC as PDU did not make submissions. x No Solicitor General’s approval for procurements exceeding UGX. 50,000,000/=. Page 136 of 179
Page 136 of 179 x Poor record keeping – most documents were missing on file e.g, no contract management documents on file. The role of the PDU ended at contract award stage. x NoPoor record record of PS/ST keeping approval – most of documentsthe CC on file. were missing on file e.g, no contract management documents on file. The role of the PDU ended at contract award stage. x No record of PS/ST approval of the CC on file.
Recommendations x The Criminal Investigations Department should investigate the missing file worth 78,124,387/=. xRecommendationsThe AO should seek approval of the CC from the PS/ST. x The PDUCriminal should Investigations always seek De CCpartment approval should of for investigate solicitation the documents, missing file bid worth notice, 78,124,387/=. and procurement x methodThe AO as should required seek by approval Reg.17. of the CC from the PS/ST. x x TheThe PDUPDU shouldshould ensurealways that seek the CC EC approval is approved of for by solicitation the CC as requireddocuments, by Reg.72(1).bid notice, and procurement x Themethod AO as should required ensure by Reg.17. that the PDU maintains all the relevant procurement related information on x individualThe PDU shouldprocurement ensure action that the files EC as is requiredapproved by by Re theg. CC46 and as required this improve by Reg.72(1). the filing system as well. x The AO should ensure that the PDU maintains all the relevant procurement related information on iv. Procurement audit of Directorate of Public Prosecution individual procurement action files as required by Reg. 46 and this improve the filing system as well. The Authority sampled 30 procurement action files and below is the summary of performance of the iv. Procurement audit of Directorate of Public Prosecution entity: The Authority sampled 30 procurement action files and below is the summary of performance of the entity: Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage Number categorization Value categorization HighRisk riskCategory 1 3.3 % 15,000,000 1.0 No. Percentage Value (Ushs) Percentage Medium risk 1 3.3 % 144,273,000 9.3 High risk 1 3.3 % 15,000,000 1.0 Low risk 9 30.0 % 448,799,962 28.7 Medium risk 1 3.3 % 144,273,000 9.3 Satisfactory 19 63.4 % 951,165,566 61.0 Low risk 9 30.0 % 448,799,962 28.7 Total 30 100.0% 1,559,238,528 100.0% Satisfactory 19 63.4 % 951,165,566 61.0
KeyTotal reasons 30 100.0% 1,559,238,528 100.0% x The high risk case was not planned for and evaluation was not conducted. Key reasons Recommendations x The high risk case was not planned for and evaluation was not conducted. x The Accounting Officer should ensure that all requirements are included in the procurement plan in Recommendationsaccordance with PPDA Regulation 96. x The PDUAccounting should Officerensure shouldthat evaluations ensure that for all direct requi procurementsrements are included are conducted in the procurementin accordance plan with in Regulationaccordance 119(6).with PPDA Regulation 96. x The AccountingPDU should Officer ensure should that evaluations ensure usage for of direct PP form procurements 20 to initiate are all conducted procurements. in accordance with Regulation 119(6). v. Procurement audit of Rural Electrification Agency x The Accounting Officer should ensure usage of PP form 20 to initiate all procurements. The Authority sampled 30 procurement action files and below is the summary of performance of the v. Procurement audit of Rural Electrification Agency entity: The Authority sampled 30 procurement action files and below is the summary of performance of the entity: Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage Number categorization Value categorization Risk Category No. Page 137 Percentage of 179 Value (Ushs) Percentage
Page 137 of 179
Page 137 of 179 High Risk 2 7% 79,043,600 30% Medium Risk 6 20% 21,444,535 8% Low Risk 3 10% 55,001,200 21% Satisfactory 19 63% 106,997,207.83 41% Total 30 100% 262,486,542.83 100%
Key findings x Only the Procurement plan for the projects funded under ERT Program was availed and Government of Uganda Procurement funded were made on the basis of the budget proposal x Lack of an approved procurement plan x Lack of two procurement files worth UGX 97,714,000 on the selected sample not availed x Use of suppliers who were not on the pre-qualified list x Wrong method of procurement e.g. direct without justification x The entity was not using SBDs issued by PPDA x Lack of evaluation minute, report and Evaluation Committee not signing ethical code of conduct. x Poor record keeping x Negotiations were being carried out on ad hoc basis contrary to Regulation 219 & 220 x No contract managers assigned and no proof contract monitoring provided.
Recommendations x The entity should ensure that they have an approved procurement plan by the July of each new financial year. x CC should ensure that solicitation documents/statement of requirements are detailed and have specifications in accordance with Regulation 48(a)(i)(iv) x The PDU should ensure that the procurement methods used are in line with the provisions of the fourth schedule to the PPDA Act. x The Accounting Officer should ensure that user departments fulfill their responsibility of contract management in accordance with Regulation 61(5). x The PDU should ensure that all procurement records are kept on their respective procurement action files in accordance with Regulation 90 & 91. x The accounting Officer should ensure that the Entity complies with the reporting requirements as spelt out in Regulation 40 of the PPDA Act. x The entity should liaise with the PPDA for training of the CC on their roles and responsibilities. vi. Procurement audit of Education Service Commission
The Authority sampled 20 procurement action files and below is the summary of performance of the entity: Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 1 3 29,162,520 16 Medium Risk 22 74 137,787,470 67 Low Risk 7 23 25,574,970 17 Satisfactory 0 0 0 0 Total 30 100 192,524,960 100 Page 138 of 179
Page 138 of 179 Key findings x A Proforma Invoice from Ms Kirigwajjo & sons dated 4th September 2007 was used to initiate the procurement, as the PP Form 20 estimates were based on the Proforma invoice value. x Approval of the list of pre-qualified firms and the proposed evaluation committee by CC is not documented. x The original deadline for submitting bid documents was extended in ink without a counter signature. The reasons and approval for extension were not approved by the CC as stipulated in regulation 94(c) of the PPDA regulations. x The receipt of bids was recorded on PP Form 31. However some entries were altered without countersignature. x The dates for the Letter of Bid acceptance by ESC is overwritten / changed but not countersigned.
Recommendations x The Head, PDU should be cautioned against un authorized extensions of bid-submission deadlines or alterations without prior approval of the Contracts Committee as stipulated in regulation 148 (5) & (6) of the PPDA regulations. x In future, PDE should ensure that any alterations done on documents is be endorsed by either the delegated authority to avoid any suspicions of misrepresentation of facts. x The AO should ensure that all payments made to suppliers are acknowledged by the recipients. x The Contracts Committee should ensure that the principles of Regulation 85 (1) and (2) on competition and open competitive bidding are adhered to all the time. vii. Procurement audit of Ministry of Justice and Constitution Affairs
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 12 40% 134,950,553 19% Medium Risk 9 30% 137,387,874 19% Low Risk 4 13% 242,089,128 34% Satisfactory 5 17% 208,196,601 29% Total 30 100% 722,624,156 100%
Key Findings x The entity did not have a procurement plan for the period 2007/08. And at the time of this audit, the procurement plan for 2008/09 was still being prepared. x Poor record keeping e.g records of issue of solicitation documents, receipt of bids, bid opening, evaluation reports, notification of award and contract management were not available in many files. x Retrospective approvals by the CC. x There was no record of CC approval by PS/ST, Ministry of Finance, Planning and Economic Development. x Use of providers who are not on the pre-qualified list e.g Victoria Motors was contracted on many occasions to carry out repairs but was not pre-qualified for such services x Procurements in excess of Shs.350 million were carried out by the Entity but not reported to PPDA.
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Page 139 of 179 Recommendations x The PDU and user departments should be held responsible for not preparing a procurement plan. x Appropriate disciplinary action should be taken against the Head PDU for the missing documents on the procurement action files. x All documents pertaining to procurement are maintained the procurement action file in accordance with Regulation 90 and 91. x The pre-qualified providers list should be reviewed and updated to properly guide the procurement process. x The CC should ensure that provision of retrospective approvals is avoided. x The AO should seek the PS/ST, Ministry of Finance, Planning and Economic Development approval of the CC members in accordance with Reg. 45(3). x Appropriate disciplinary action should be taken against the Head PDU for failure to report all procurements conducted by the entity and for failure to submit monthly reports to PPDA in contravention of Regulation 40 and 118(8) of the PPDA Regulations. viii. Procurement audit of Cotton Development Organisation
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 5 16.67 716,693,374 41 Medium Risk 22 73.33 1,019,109,254 58 Low Risk 3 10 23,712,690 1 Satisfactory 0 0 0 0 Total 30 100 1,759,418,398= 100
Key findings x There was no documentation to evidence the delegation of responsibilities to Officers under various departments who in a number of instances, played the roles of the Accounting Officer x Procurements undertaken but not on the approved procurement plan and budget for the financial year under review. x Lack of solicitation documents issued to bidders. x Lack of evidence of bid evaluation being undertaken x Use of suppliers who were not on the pre-qualified list x Wrong method of procurements x Poor record keeping and incomplete records x Lack of contract management records. x Retrospective approvals by both CC and Accounting Officer
Recommendations x The entity should ensure that they have an approved procurement plan by the July of each new financial year which is linked to the budget and implementation of the procurement plan is followed accordingly. x The PDU should ensure that all procurement records are kept and well on their respective procurement action files.
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Page 140 of 179 x The PDU should ensure that the procurement methods used are in line with the provisions of the fourth schedule to the PPDA Act. x The Accounting Officer should ensure that user departments fulfill their responsibility of contract management in accordance with Regulation 61(5). x The entity should liaise with the PPDA for training of the CC on their roles and responsibilities.
ix. Procurement audit of Public Service Commission
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 5 16.7% 25,745,650 6.6% Medium risk 1 3.3% 3,147,000 0.8% Low risk 13 43.3% 160,819,454 41.0% Satisfactory 11 36.7% 202,205,620 51.6% Total 30 100.0% 391,917,652 100.0%
Key findings x No CC approvals for procurement method x LPOs/Contracts issued after delivery of the goods x There are no copies of solicitation documents on file x Procurement for a number of supplies made without prior approval of CC –Submitted to CC for retrospective approval x Lack of procurement planning – The entity did not have a procurement plan for the period review
Recommendations x The AO must ensure that entity has a procurement plan and that it forms the basis of all procurements of the entity. x The AO should ensure that the PDU and User Departments prepare comprehensive procurement plans in accordance to PPDA Regulations 96-98 x The head PDU should ensure that the choice of procurement method is first approved by CC in accordance to Section 79(2) of the PPDA Act, 2003. CC should ensure that the entity uses open bidding as the preferred method of procurement. x The AO should ensure that PDU, CC and User Departments are trained in the Public Procurement emphasizing the areas of procurement planning, contracting and record keeping among others. x The AO must ensure that all procurements are approved the Contracts Committee prior to issue of LPOs. x The Head PDU should ensure that procurement records are maintained in accordance with PPDA Regulation 90.
x. Procurement audit of Uganda Electricity Generation Company Limited The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization Page 141 of 179
Page 141 of 179 x The PDU should ensure that the procurement methods used are in line with the provisions of the fourth schedule to the PPDA Act. x The Accounting Officer should ensure that user departments fulfill their responsibility of contract management in accordance with Regulation 61(5). x The entity should liaise with the PPDA for training of the CC on their roles and responsibilities.
ix. Procurement audit of Public Service Commission
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 5 16.7% 25,745,650 6.6% Medium risk 1 3.3% 3,147,000 0.8% Low risk 13 43.3% 160,819,454 41.0% Satisfactory 11 36.7% 202,205,620 51.6% Total 30 100.0% 391,917,652 100.0%
Key findings x No CC approvals for procurement method x LPOs/Contracts issued after delivery of the goods x There are no copies of solicitation documents on file x Procurement for a number of supplies made without prior approval of CC –Submitted to CC for retrospective approval x Lack of procurement planning – The entity did not have a procurement plan for the period review
Recommendations x The AO must ensure that entity has a procurement plan and that it forms the basis of all procurements of the entity. x The AO should ensure that the PDU and User Departments prepare comprehensive procurement plans in accordance to PPDA Regulations 96-98 x The head PDU should ensure that the choice of procurement method is first approved by CC in accordance to Section 79(2) of the PPDA Act, 2003. CC should ensure that the entity uses open bidding as the preferred method of procurement. x The AO should ensure that PDU, CC and User Departments are trained in the Public Procurement emphasizing the areas of procurement planning, contracting and record keeping among others. x The AO must ensure that all procurements are approved the Contracts Committee prior to issue of LPOs. x The Head PDU should ensure that procurement records are maintained in accordance with PPDA Regulation 90.
x. Procurement audit of Uganda Electricity Generation Company Limited The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Page 141 Percentage of 179 Value (Ushs) Percentage High Risk 2 7 70,737,056 22 Medium Risk 28 93 245,975,777 78 Low Risk 0 0 0 0 Satisfactory 0 0 0 0 Total 30 100 316,712,833 100
Key findings x The procurements not reflected in the procurement plan and budget. x The firms invited to quote are not prequalified x There were no Bills of Quantities prepared prior to the commencement of the contract. x There is no justification for the 5% increase in price prior to commencement of the contract. The CC recommended price negotiation and issuance of a performance bond which were not adhered to. The contract for the works was signed after work had already started. x The contract was not cleared by the SG as provided in regulation 225 (2) (f) of the PPDA regulations, 2003. x There was no documentation to evidence the delegation of responsibilities to Officers under various departments who in a number of instances, played the roles of the Accounting Officer x Poor record keeping and incomplete records x Lack of contract management records Recommendations x The PDU should ensure that all procurement records are kept and well on their respective procurement action files. x The PDU should ensure that the procurement methods used are in line with the provisions of the fourth schedule to the PPDA Act. x The Accounting Officer should ensure that user departments fulfill their responsibility of contract management in accordance with Regulation 61(5). x The entity should liaise with the PPDA for training of the CC on their roles and responsibilities. x The Head, PDU should ensure that any form of contract amendment is conducted as guided by regulation 262 of the PPDA regulations. x The AO should ensure that contracts above the threshold are not signed before clearance of the Solicitor General as recommended in regulation 225 (2) (f) of the PPDA regulations, 2003. xi. Procurement audit of Ministry of Information, Communication and Technology
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High 2 7% 23,553,750 1% Medium 4 13% 261,838,700 7% Low 3 10% 239,122,160 6% Satisfactory 21 70% 3,438,016,578 87% Total 30 100% 3,962,531,188 100%
Page 142 of 179 Page 142 of 179 Key findings x The entity did not have a procurement plan to guide the procurement process over the period. x The Ministry did not pre-qualify providers to supply some of the frequently procured items e.g batteries and accessories, banners and T-shirts, Fuel, Oil and Lubricants, and Catering services. x Poor estimation of most items procured leading to use of wrong method of procurement. x Incomplete procurement action files. x Lack of CC approvals at the various stages as well as conducting retrospective approvals.
Recommendations x The Accounting Officer should ensure that the entity prepares and approves a procurement plan annually by July of each financial year. x The Head PDU should ensure that the pre-qualified providers list currently in use should be extensively reviewed and updated x The entity should always endeavour to make estimations which are more accurate so that the right method of procurement is used. x Head PDU should ensure that all records are maintained in accordance with Reg. 90 & 91. x The CC should stop immediately retrospective approvals. xii. Procurement audit of Uganda National Council of Science and Technology
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 0 0 0 0 Medium Risk 14 46.7 348,252,752 44.4 Low Risk 16 53.3 435,580,459 55.6 Satisfactory 0 0 0 Total 30 100 783,833,211 100 Key findings x The PDE did not have any case categorised as high risk. However, the section below will highlight areas that need improvement for cases categorises as medium risk. x There was lack of In bid notice or Invitation to Bid for the procurement of individual consultants and other consultancies audited, thus the process of developing the shortlist was not known. x There was lack of evidence that a notice of best evaluated bidder was put up on the procurement notice board for various procurements x Bidders were notified of the contract award a month after the contract had been signed in contradiction of Regulation 224 (5) on the procurement of events management. x There was no proof of delivery of goods x Poor Record keeping information on procurements scattered in different offices. Recommendations x The PDU should consider use of a framework contract for workshops. x Use of telephone to contact service providers should be discouraged x Workshop should as much as possible be rotated among the pre-qualified service providers in the hospitality industry
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Page 143 of 179 x Contract managers should always be appointed for all works and technical services in accordance with PPDA regulation 259. x PDU should ensure that procurement records are maintained in accordance with Reg.90&91 of the PPDA regulations.
x Contract managers should always be appointed for all works and technical services in accordance with PPDA regulation 259. x PDU should ensure that procurement records are maintained in accordance with Reg.90&91 of the PPDA regulations.
Procurement audit of Ibanda District Local Government
The Authority sampled 29 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization Procurement audit of IbandaNo. District Local GovernmentPercentage Value (Ushs) Percentage HighThe AuthorityRisk sampled 29 procurement13 action 45% files and below is the227,984,549 summary of 18% performance of the Mediumentity: Risk 9 31% 813,747,557 66% LowRisk RiskCategory Number5 categor 17%ization Value191,533,999 categorization 15.3% Satisfactory No. 2 Percentage 7% Value (Ushs)8,850,000 Percentage0.7% TotalHigh Risk 2913 100 45% 1,242,116,105227,984,549 18%100 Medium Risk 9 31% 813,747,557 66% Findings Low Risk 5 17% 191,533,999 15.3% x Each user departments maintained and signed a separate LPO for their respective department while Satisfactoryprocuring fuel and stationery without2 involvement 7% of the PDU. 8,850,000 0.7% xTotalSome procurement action files29 were incomplete100 with documents1,242,116,105 such as requisition100 forms, CC approvals, invitation to bid documents, bid documents and evaluation reports missing. x There were instances where the CC was not approving the procurement method and bid documents. Findings x User departments were signing contracts on behalf of AO without delegated authority. x Each user departments maintained and signed a separate LPO for their respective department while x The CC made some retrospective award approvals e.g. supply of a Grader LG 0016-61 worth Ushs procuring fuel and stationery without involvement of the PDU. 2,407,156/=. x Some procurement action files were incomplete with documents such as requisition forms, CC x In some instances, the Evaluation Committee(s) were not using the evaluation criteria stated in approvals, invitation to bid documents, bid documents and evaluation reports missing. Standard Bid Document. x There were instances where the CC was not approving the procurement method and bid documents. x There was probably financial loss of UGX 805,621 during the construction of staff houses by M/s x KwedUser departments Construction were where signing the District contracts failed on behalf to negotia of AOte withwithout M/s delegated Kombi on authority. the original bid offer of x UGXThe CC19,692,218 made some as theretrospective 1st best evaluated award approvalsbidder and e.g. awarded supply contract of a Grader at at UGX LG 0016-61 20,497,839 worth. Ushs 2,407,156/=. xRecommendationsIn some instances, the Evaluation Committee(s) were not using the evaluation criteria stated in x StandardThe CC and Bid PDU Document. should be cautioned for the probable financial loss of UGX 805,621 caused to the x Thereentity duringwas probably the construc financialtion ofloss staff of houses. UGX 805,621 during the construction of staff houses by M/s x TheKwed AO Construction should ensure where that the the District procurement failed to worknegotia pltean with is integrated M/s Kombi in on into the the original annual bid budget offer of in st accordanceUGX 19,692,218 with LG/PPDA as the 1 bestregulation evaluated 62(2). bidder and awarded contract at at UGX 20,497,839. x The Accounting Officer must transfer all the LPO(s) to the PDU. Recommendations x All records on procurement should be kept on file in accordance to LG (PPDA) Reg.46 and LG x The(PPDA) CC andReg.119 PDU forshould contract be cautioned management for the records. probab le financial loss of UGX 805,621 caused to the entity during the construction of staff houses. x The Chairman CC should ensure that all procurement methods are approved by the Committee before x procurementsThe AO should are ensureundertaken. that the procurement work plan is integrated in into the annual budget in accordance with LG/PPDA regulation 62(2). Page 144 of 179 x The Accounting OfficerOfficer mustshould transfer caution all the the CC LPO(s) from to ma theking PDU. retrospective approvals and this should be stopped. x All records on procurement should be kept on file in accordance to LG (PPDA) Reg.46 and LG x The(PPDA) Evaluation Reg.119 Committees for contract should management always records. use the criteria in the bid documents and the CC should only approve evaluation reports which have used the recommended evaluation criteria in the bid x The Chairman CC should ensure that all procurement methods are approved by the Committee before documents issued. procurements are undertaken. Page 144 of 179
Page 144 of 179
i. Procurement audit of Judicial Service Commission
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 0 0 0 0 Medium Risk 20 66.7 68,150,785 54 Low Risk 10 33.3 58,712,739 46
Satisfactory 0 0 00 Total 30 100 126,863,524 100
Key findings x The PDE did not have any case categorised as High Risk. However the section below will highlight areas that need improvement for cases categorises as medium risk. x There is no evidence of appointment of the evaluation committees x Lack of evaluation reports on file. x The Contracts Committee awarded some contracts to non-prequalified firms. x Lack of relevant procurement information on action files. For instance evaluation reports and payment records. x Lack of the best evaluated bidder notice or evidence to show that the BEB was displayed on the procurement notice board. x Poor Record keeping x Lack of Contract Managers
Recommendations x The PDE should arrange to have a valid pre-qualification list for the FY 2009/10 through to 2011/2012 x The Accounting Officer should ensure that each user department prepares departmental procurement work plans based on the approved budget and work plan to feed into the annual consolidated procurement plan prepared by the PDU in accordance with PPDA regulations 60 and 96. x Evaluation Committees should sign and file the code of ethical conduct in accordance with regulation 169 (9). Page 145 of 179 x The Accounting Officer should caution the CC from making retrospective approvals and this should be stopped. x The Evaluation Committees should always use the criteria in the bid documents and the CC should only approve evaluation reports which have used the recommended evaluation criteria in the bid documents issued.
i. Procurement audit of Judicial Service Commission
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 0 0 0 0 Medium Risk 20 66.7 68,150,785 54 Low Risk 10 33.3 58,712,739 46
Satisfactory 0 0 00 Total 30 100 126,863,524 100
Key findings x The PDE did not have any case categorised as High Risk. However the section below will highlight areas that need improvement for cases categorises as medium risk. x There is no evidence of appointment of the evaluation committees x Lack of evaluation reports on file. x The Contracts Committee awarded some contracts to non-prequalified firms. x Lack of relevant procurement information on action files. For instance evaluation reports and payment records. x Lack of the best evaluated bidder notice or evidence to show that the BEB was displayed on the procurement notice board. x Poor Record keeping x Lack of Contract Managers
Recommendations x The PDE should arrange to have a valid pre-qualification list for the FY 2009/10 through to 2011/2012 x The Accounting Officer should ensure that each user department prepares departmental procurement work plans based on the approved budget and work plan to feed into the annual consolidated procurement plan prepared by the PDU in accordance with PPDA regulations 60 and 96. x Evaluation Committees should sign and file the code of ethical conduct in accordance with regulation 169 (9). x The entity should put in placePage contract145 of ma 179nagement systems in accordance with PPDA regulations 258, 259 and 260. x Head PDU should ensure that procurement records are maintained in accordance with Regulations 90 & 91 of PPDA Regulations, 2003.
ii. Procurement audit of National Planning Authority The Authority sampled 27 procurement actionPage files145 andof 179 below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 11 40.8% 127,221,990 32.9% Medium risk - - - - Low risk 7 25.9% 210,517,672 54.3% Satisfactory 9 33.3 % 49,640,360 12.8% Total 27 100.0% 387,380,022 100.0%
Key findings x Eight procurement action files were missing. x There was no procurement plans prepared by the User Departments during FY 2007/2008. x Use of direct procurement method without justifiable reasons. x There are no copies of solicitation documents on file. x Entity not seeking Solicitor General’s approval for contracts above Ushs 50m/=. x For eight procurements, there were no procurement records at all. x A number of procurements were not initiated in accordance with Regulation 104. x The AO did not confirm availability of funds. Recommendations x The CID should investigate the eight files without procurement records. x The Accounting Officer and Head PDU should ensure that the user departments prepare annual work plans for procurement based on the approved budget and submit to PDU in time in accordance with Regulation 96(1). x The AO should ensure that no procurement is initiated without confirmation of funding in accordance with Section 59(2) of the PPDA Act. x The AO and Head PDU should ensure that Solicitor General approves all contracts above the threshold of Ugx 50 million prior to signing in accordance with PPDA Regulation 225(2)(f). x The AO and Head PDU should ensure that procurement records maintained are in accordance with Regulations 90 and 91. x The Head PDU and CC should ensure that appropriate methods of procurement are applied in compliance with Regulation 106 and PPDA Guideline 1/2003. CC should ensure that the entity uses open bidding as the preferred method of procurement.
Page 146 of 179 x The entity should put in place contract management systems in accordance with PPDA regulations 258, 259 and 260. x Head PDU should ensure that procurement records are maintained in accordance with Regulations 90 & 91 of PPDA Regulations, 2003.
ii. Procurement audit of National Planning Authority The Authority sampled 27 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 11 40.8% 127,221,990 32.9% Medium risk - - - - Low risk 7 25.9% 210,517,672 54.3% Satisfactory 9 33.3 % 49,640,360 12.8% Total 27 100.0% 387,380,022 100.0%
Key findings x Eight procurement action files were missing. x There was no procurement plans prepared by the User Departments during FY 2007/2008. x Use of direct procurement method without justifiable reasons. x There are no copies of solicitation documents on file. x Entity not seeking Solicitor General’s approval for contracts above Ushs 50m/=. x For eight procurements, there were no procurement records at all. x A number of procurements were not initiated in accordance with Regulation 104. x The AO did not confirm availability of funds. Recommendations x The CID should investigate the eight files without procurement records. x The Accounting Officer and Head PDU should ensure that the user departments prepare annual work plans for procurement based on the approved budget and submit to PDU in time in accordance with Regulation 96(1). x The AO should ensure that no procurement is initiated without confirmation of funding in accordance with Section 59(2) of the PPDA Act. x The AO and Head PDU should ensure that Solicitor General approves all contracts above the threshold of Ugx 50 million prior to signing in accordance with PPDA Regulation 225(2)(f). x The AO and Head PDU should ensure that procurement records maintained are in accordance with Regulations 90 and 91. x The Head PDU and CC should ensure that appropriate methods of procurement are applied in compliance with Regulation 106 and PPDA Guideline 1/2003. CC should ensure that the entity uses open bidding as the preferred method of procurement.
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Page 146 of 179 iii. Procurement audit of Management Training and Advisory Centre The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 15 50% 24,930,136 68% Medium risk 6 20% 2,919,500 8% Low risk 8 27% 5,988,300 16% Satisfactory 1 3 % 3,000,000 8% Total 30 100% 387,380,022 100%
Key findings x The user departments did not prepare work plans for FY 2007/2008 for onward submission to the PDU. x All procurements were not initiated using the PP Form 20. x Rampant use of micro procurement method by user departments with disregard to the threshold of Ushs 2,000,000/=. There was no evidence of delegated authority to user departments to undertake micro procurements. x The CC members not approved by PS/ST by the time of this audit, though names had been submitted to MoFPED
Recommendations x The Accounting Officer and Head PDU should ensure that the user departments prepare annual work plans for procurement based on the approved budget and submit to PDU in time in accordance with Regulation 96(1). x The AO and PDU should ensure that initiation of procurement requirements is done in accordance to Regulation 104. x The CC and PDU should ensure that appropriate methods of procurement are applied in compliance with Regulation 106 and PPDA Guideline 1/2003. x The AO urgently follow-up with PS/ST to ensure that CC members are approved since their current decisions can be challenged and may not be legally binding. x The Head PDU and CC should ensure that appropriate methods of procurement are applied in compliance with Regulation 106 and PPDA Guideline 1/2003. CC should ensure that the entity uses open bidding as the preferred method of procurement. iv. Procurement audit of Ministry of Public Service The Authority sampled 31 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 11 35.5 330,721,840 40.9 Medium risk 8 25.8 157,121,537 19.4 Low risk 11 35.5 307,319,726 38.0 Satisfactory 1 3.2 13,334,000 1.7 Total 31 100.0 1,871,863,230 100.0 Page 147 of 179 Key findings x The entity did not have a consolidatedPage 147 procur of 179ement plan for the period under review. User departments did not submit their plans to PDU for consolidation. x Contracts above UGX 50m/= not approved by Solicitor General. x No evidence of contract implementation monitoring and supervision. User Departments did not appoint Contract Managers for supervision of contracts. x Most procurement action files had incomplete records.
Recommendations x The Accounting Officer should ensure that all User Departments prepare procurement plans based on approved budget submitted to the PDU to prepare an over all procurement plan for the entity in accordance with Section 34(2) of PPDA Act 2003. x The AO should ensure that all contracts above Ugx. 50 million are cleared by the Solicitor General in accordance with Regulation 225(2)(f). x The AO and Head PDU should ensure that procurement records maintained are in accordance with Regulations 90 and 91.
v. Procurement audit of Kisoro District Local Government The Authority sampled 20 procurement action files and below is the summary of performance of the entity: Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 4 20 43,437,000.00 3 Medium Risk 3 15 103,560,100 6 Low Risk 6 30 1,350,880,014 79 Satisfactory 7 35 216,631,194 13 Total 20 100 1,714,508,308 100
Key findings x In four of the cases reviewed, there were no contracting and post contracting information at all e.g. In the purchase of one unit motor cycle for the Town Council from M/s Toyota Uganda x In some cases, there was confirmation of availability of funds by the AO x Some procurement action files were incomplete. x Procurement requisition raised and approved retrospectively x Retrospective approval of the procurement method and shortlist of firms x Lack of CC involvement in some procurements.
Recommendations x The Accounting Officer should whenever delegating some of his duties do so in writing as required by Reg.14 x The AO should execute all his duties as required by Reg.14. x The PDU should ensure that all contracting and post contracting documentation are kept in accordance with by Reg.46 x The CC should perform their duties in accordance with Reg. 17. x The user department should always appoint contract managers in accordance with Reg. 119 (2).
Page 148 of 179 Total 31 100.0 1,871,863,230 100.0
Key findings x The entity did not have a consolidated procurement plan for the period under review. User departments did not submit their plans to PDU for consolidation. x Contracts above UGX 50m/= not approved by Solicitor General. x No evidence of contract implementation monitoring and supervision. User Departments did not appoint Contract Managers for supervision of contracts. x Most procurement action files had incomplete records.
Recommendations x The Accounting Officer should ensure that all User Departments prepare procurement plans based on approved budget submitted to the PDU to prepare an over all procurement plan for the entity in accordance with Section 34(2) of PPDA Act 2003. x The AO should ensure that all contracts above Ugx. 50 million are cleared by the Solicitor General in accordance with Regulation 225(2)(f). x The AO and Head PDU should ensure that procurement records maintained are in accordance with Regulations 90 and 91. v. Procurement audit of Kisoro District Local Government The Authority sampled 20 procurement action files and below is the summary of performance of the entity: Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 4 20 43,437,000.00 3 Medium Risk 3 15 103,560,100 6 Low Risk 6 30 1,350,880,014 79 Satisfactory 7 35 216,631,194 13 Total 20 100 1,714,508,308 100
Key findings x In four of the cases reviewed, there were no contracting and post contracting information at all e.g. In the purchase of one unit motor cycle for the Town Council from M/s Toyota Uganda x In some cases, there was confirmation of availability of funds by the AO x Some procurement action files were incomplete. x Procurement requisition raised and approved retrospectively x Retrospective approval of the procurement method and shortlist of firms x Lack of CC involvement in some procurements.
Recommendations x The Accounting Officer should whenever delegating some of his duties do so in writing as required by Reg.14 x The AO should execute all his duties as required by Reg.14. x The PDU should ensure that all contracting and post contracting documentation are kept in accordance with by Reg.46 x The CC should perform their duties in accordance with Reg. 17. x The user department should always appoint contract managers in accordance with Reg. 119 (2).
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Page 148 of 179 vi. Procurement audit of Ministry of Energy and Mineral Development The Authority sampled 60 procurement action files and below is the summary of performance of the entity: Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage
High Risk 4 8% 45,060,596,400 12%
Medium Risk 15 25% 14,929,054,422 4%
Low Risk 33 53% 305,870,363,634 81%
Satisfactory 8 13% 10,570,349,898 3%
Total 60 100% 376,430,364,354 100%
Key findings x The Entity did not have a Procurement Plan for the period to guide the Procurement Process as required under Regulation 96 with the exception of the SMMRP, ERT and PSDO Projects, which had their own detailed Procurement Plans that guided their procurement processes. x User departments would not only initiate requirements but would proceed and make submissions to the Contracts Committee, against the provisions of Act Section 38.
Recommendations x The AO should ensure Procurement Plans are drawn for every financial year as required by Sec. 58 of the PPDA Act, 2003. x The PDU should ensure all procurements are initiated using requisition form (PP Form 20) and should be appropriately filled and in accordance with Reg 104. x The Secretary CC should ensure all submissions are channeled through the PDU as required by Reg. 58 (b)
Procurement Audit of National Water & Sewerage Corporation (FY 2006/07)
The Authority sampled 60 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 4 7% 69,199,016 0.1% Medium risk 11 18% 171,900,449 0.2% Low risk 35 58% 39,571,575,923 49.8% Satisfactory 10 17% 39,650,172,165 49.9% Total 60 100% 79,462,847,553 100.0%
Key findings x Although the PDU initiated the planning process well in time, the process was slow due to delayed submission of departmental work plans by the User Departments. The consolidated procurement plan was approved by the Board in December 2006, six months into the next financial year. Page 149 of 179
Page 149 of 179 x The pre-qualification process took unnecessary too long time. It was initiated in July 2005 but the award letters to the pre-qualified providers were issued in August 2006. x Direct procurement method was used without clear justification and relevant approval, for example, 3 procurements in the audited sample. x The Contracts Committee was not making approvals of procurement methods, bid documents and Evaluation Committees. For instance, the procurement method of 41 cases out of the 52 procurements audited was not approved by CC. During the period under review, the entity had only four CC members who have also reduced to three. x In most of the cases audited there was no record of issuance, receipt and open of bid documents. x The Evaluation Committees were not approved by the CC, e.g 64% of the procurements audited did not have CC approval of the EC. The evaluation reports were also not approved by the CC. x The PDU was not involved in the management of large and donor funded project procurements.
Recommendations x The procurement planning process should be initiated towards the end of the preceding FY and refined as soon as the corporation budget is approved by the board, in order to ensure that there is no gap in the procurement process. x The pre-qualification exercise should be initiated well before the end of the last financial year of the period for which the pre-qualification list is valid. In any case this should be done at least 2 months before the expiry of the validity of the pre-qualification list, as per PPDA Guideline 1/2005 section 2(iii). x Use of direct procurements should be clearly justified and approved by the CC and Accounting Office as stipulated by Regulation 106 of the PPDA Regulations, 2003. x The Head PDU should ensure that the method of procurement is approved by the Contracts Committee in accordance to PPDA Regulations 49 (a) and 94 (a), 2003. x The Head PDU should ensure that all procedures related to solicitation of bids, including the issuance, receipt and opening of bids, are appropriately recorded using the relevant PP Forms (PP Form 30, 31, 34, 35). x The PDU should be fully involved in the management of the procurements of all internally and donor funded projects. x The Accounting Officer should nominate candidates for CC approval by the PS/ST to fill up the vacant positions.
Procurement audit of Electricity Regulatory Authority
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 4 13% 10,485,044 1.9% Medium Risk 2 7% 3,905,140 0.7% Low Risk 9 30% 122,946,942 22.7% Satisfactory 15 50% 405,142,008 74.7% Total 30 100% 542,479,134 100%
Findings x Some procurements were initiated without requisitions raised on standard PP Form 20 e.g. ERA/SERVICES/2007/2008/00019
Page 150 of 179
Page 150 of 179 x Though the entity had a pre-qualified providers list which guided the procurement process, the entity invited non pre-qualified providers to bid along pre-qualified providers. x In some cases the PDU nominated only two evaluation committee members for approval. x x InThough some cases the entity quorum had ofa pre-qualified the EC was providers not adhered list to.which For guided example the caseprocurement numbers process, ERA/SPLS/06- the entity 07/00031invited nonand pre-qualifiedERA/SERVICES/2007/08/00010. providers to bid along pre-qualified providers. x x ImportantIn some procurementcases the PDU and nominated disposal documentsonly two evaluation were missing committee on file. members for approval. x x TheIn CC some failed cases to provide quorum oversight of the EC role was in a notpproving adhered members to. For of example the evaluation case numbers committees. ERA/SPLS/06- x In07/00031 one instance and ERA/SERVICES/2007/08/00010.two members of the evaluation committee constituted an evaluation committee and x conductedImportant an procurement evaluation contrary and disposal to Regulation documents 169. were missing on file. x The CC failed to provide oversight role in approving members of the evaluation committees. Recommendationsx In one instance two members of the evaluation committee constituted an evaluation committee and x Theconducted PDU should an evaluation ensure that contrary procurement to Regulation requirements 169. are initiated using PP form 20 in accordance with Regulation 104(1) and availability of fund confirmed prior to initiating procurement proceedings Recommendationsin accordance with Regulation 105(1). x x UserThe departments PDU should should ensure ensure that procurement that they provide requirements budget areestimates initiated for using each PPitem form of procurement 20 in accordance on PPwith form Regulation 20 as required 104(1) by and Reg availa 104 (2).bility of fund confirmed prior to initiating procurement proceedings x Thein Headaccordance PDU shouldwith Regulation update the 105(1). pre-qualified register pf providers list to include categories missing x in Userthe current departments register. should ensure that they provide budget estimates for each item of procurement on x ThePP Head form PDU20 as shouldrequired be by disciplined Reg 104 (2).appropriately for nominating only two members of the PDU to x theThe Evaluation Head PDU Committee should update contrary the to pre-qualified Regulation 169(3)register & pf (5). providers list to include categories missing x Thein theHead current PDU, register. under whom the responsibility of record keeping directly falls in accordance with x SectionThe Head 31(0) PDU of the should PPDA be Act, disciplined should be appropriately cautioned for for failing nominating to perform only thistwo function. members of the PDU to x Thethe CC Evaluation should approve Committee members contrary of the to RegulationEvaluation Committee169(3) & (5). in cognizant of Regulation 169. x The Head PDU, under whom the responsibility of record keeping directly falls in accordance with ProcurementSection 31(0)audit ofof theHealth PPDA Service Act, should Commission be cautioned for failing to perform this function. x The CC should approve members of the Evaluation Committee in cognizant of Regulation 169. The Authority sampled 30 procurement action files and below is the summary of performance of the entity:Procurement audit of Health Service Commission
The Authority sampled 30 procurementNumber categorization action files and below is Value the summary categorization of performance of the Risk Category entity: No. Percentage Value (Ushs) Percentage High Risk 13% Number2 categorization7% 18,226,764 Value categorization MediumRisk Category Risk 13% 4No. Percentage13% Value 18,711,718 (Ushs) Percentage Low Risk 51% High Risk 9 2 30%7% 73,846,040 18,226,764 13% Satisfactory 24% Medium Risk 15 4 50%13% 34,269,400 18,711,718 13% Total 30 100% 145,053,922 100% Low Risk 9 30% 73,846,040 51% Satisfactory 15 50% 34,269,400 24% Total 30 100% 145,053,922 100%
Findings x There were a number of items, such as Stationery which even though planned to be procured quarterly by use of the RFQ method were subsequently procured on an adhoc basis as micro Findingsprocurements; x x WhileThere the were entity a number had a comprehensive of items, such 2007/08 as Statione Plan,ry it which did not even include though items planned such as to Travel be procured (Air Tickets)quarterly and byProvision use of of the internet RFQ methodservices. wereIt has subsequently been noted that procured the entity on has an adhocincluded basis such as in microthe currentprocurements; plan. x x TheWhile Commission the entity did had not a issue comprehensive notification 2007/08of award Plan, and bidit didacceptance not include letters items subsequent such as to Travel contract (Air awardTickets) decisions; and Provision of internet services. It has been noted that the entity has included such in the x Thecurrent CC retrospectively plan. awarded contracts for the procurement of Air tickets for two HSC Officers x whereThe CommissionLPOs were issued did not before issue evaluation notification of ofbids award had andtaken bid place; acceptance letters subsequent to contract award decisions; Page 151 of 179 x The CC retrospectively awarded contracts for the procurement of Air tickets for two HSC Officers where LPOs were issued before evaluation of bids had taken place; Page 151 of 179
Page 151 of 179 x Before retirement of the Mr Martin Olobo as the Accounting Officer, Ms Dorothy Nasolo in many instances certified availability of funds on requisition forms without any formal delegation given by the Accounting Officer. x The Head PDU failed in her responsibility of keeping records as stipulated in Section 31(o) of the PPDA Act 2003.
Recommendations x The Accounting Officer should subject cleaning service to competition, then enter into framework contract with the successful bidders. x The Accounting Officer should ensure the successful bidder and unsuccessful bidders are notified of contract award as required by Reg. 225 (4) and should ensure letter of bid acceptance are issued in accordance with Reg. 228. x Members of the Contracts Committee should be cautioned for making retrospective approvals. x All procurement and contracts management documentation should be kept as required by Reg. 90 and 91. x The functions of the Accounting Officer should always be carried out only by persons with properly delegated authority. x Secretary CC should ensure the use of PP Form 209 in communicating CC decisions on a submission as required by Reg. 51 (8). Procurement audit of Uganda Management Institute
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 14 47% 217,847,826.00 49% Medium Risk 12 40% 192,609,279.00 43% Low Risk 4 13% 33,060,133.00 7% Satisfactory - 0% - - Total 30 100% 443,517,238.00 100%
Key Findings x 23% of the reviewed procurements were initiated without approval of the need and confirmation of availability of funds; for example Procurement of Security Service from Ultimate Security Group Ltd was carried out without PP Form 20. x Only one firm M/S Katende Ssempebwa Advocates Ltd was pre-qualified for the provision of Legal Services for a period of three years. x Procurement Methods were used against the provisions in the PPDA Act, Regulations and Guidelines, e.g direct procurements method was used unjustifiably. x The Head PDU failed in her responsibility of keeping records as stipulated in Section 31(o) of the PPDA Act 2003. x The PDU failed to make submissions to the CC seeking approval of the procurement method, solicitation document using PP standard Form 1 as required by Reg.29. x The PDU failed to prepare contracts and have them signed by the Accounting Officer and the Provider contrary to Section 31(m) of the PPDA Act 2003. x There was no Solicitor General’s approval of contracts that exceeded UGX.50,000,000 such as in the case of procurement of vehicles from Kampala Nissan Ltd. x For the files reviewed, documentation maintained was incomplete with missing procurement forms; goods received notes, certificates of completion of work, copies of evidence of payment and contract completion reports. Page 152 of 179
Page 152 of 179 x The CC did not approve the procurement methods, advertisements & bid documents e.g. in the supply of motor vehicles by Kampala Nissan Ltd.
Recommendations x x TheThe CCEntity did shouldnot approve obtain thea list procurement of practicing methods, law firms advertisements from the Uganda & bid Lawdocuments Society e.g. and in enter the supplyinto framework of motor contractsvehicles by with Kampala selected Nissan firms. Ltd. x The Head PDU should ensure that appropriate procurement methods are used in accordance with RecommendationsGuideline 1/2003. xx TheThe Entity AO shouldshould takeobtain appropriate a list of practicing disciplinary law firms action from against the Uganda the Contracts Law Society Committee and enter for intoapproving framework non competitivecontracts with procurement selected firms. methods without justification contrary to Section 46 of x theThe PPDA Head PDUAct 2003. should ensure that appropriate procurement methods are used in accordance with x GuidelineThe PDU 1/2003.should always ensure that the all documents associated with a procurement are filed on x Thethe procurement AO should action take file appropriate in accordance disciplinary with Regulation action against 90 and 91. the Contracts Committee for x approvingThe PDU non should competitive ensure Usersprocurement officially methods communicate without justificationContract Managers contrary andto Section such records 46 of theshould PPDA be Actkept 2003. on the files as required by the Reg. 259(3). xx TheThe PDUAO should should ensure always all ensure contracts that abovethe all UGX docum 50,ents000,000 associated are approved with a procurement by the Solicitor are filedGeneral on theas requiredprocurement by Reg. action 225(2) file in(f). accordance with Regulation 90 and 91. xx TheThe PDUAccounting should officer ensure should Users ensure officially appropriate communicate contract Contract documents Managers are prepared and such and records ensure shouldthat they be arekept signed on the between files as requiredthe Entity by and the the Reg. Provider 259(3). such that both parties operate under clear x Theterms AO and should conditions ensure asall requiredcontracts by above Reg. UGX 229 50,since000,000 the LPO are approveddoes not captureby the Solicitor all the pertinentGeneral asterms. required by Reg. 225(2) (f). xx The The Accounting AO should officer take appropriate should ensure disciplinary appropriate action contract against documents the Head are PDU prepared for failing and to ensure keep thatrecords they contrary are signed to Sectionbetween 31(0) the Entity of the and PPDA the ActProvider 2003. such that both parties operate under clear x termsThe AO and should conditions take appropriateas required disciplinaryby Reg. 229 action since againstthe LPO the does PDU not for capture not preparing all the pertinentcontracts terms.and having them signed by the Accounting Officer and the Provider contrary to Section 31(m) of x theThe PPDA AO should Act 2003 take appropriate disciplinary action against the Head PDU for failing to keep records contrary to Section 31(0) of the PPDA Act 2003. x The AO should take appropriate disciplinary action against the PDU for not preparing contracts and having them signed by the Accounting Officer and the Provider contrary to Section 31(m) of the PPDA Act 2003
Procurement audit of Uganda Coffee Development Authority
The Authority sampled 30 procurement action files and below is the summary of performance of the entity: Procurement audit of Uganda Coffee Development Authority Number categorization Value categorization TheRisk Authority Category sampled 30 procurement action files and below is the summary of performance of the entity: No. Percentage Value (Ushs) Percentage High Risk 0 0 0 0 Medium Risk Number categorization Value categorization Risk Category 6 20% 11,695,714 3% No. Percentage Value (Ushs) Percentage Low Risk 5 17% 182,655,700 53% High Risk Satisfactory 190 63%0 147,710,3660 43%0 Medium Risk Total 306 100%20% 342,061,78011,695,714 100% 3% Low Risk 5 17% 182,655,700 53% SatisfactoryFindings x Not all items were in the approved19 procurement 63%plan, for example, 147,710,366 the wet processing 43% machine. Totalx The Authority did not have a framework30 contract100% for frequently 342,061,780 purchased items such 100% as Poly Pots which would have led to cost saving. Findingsx User departments did not adhere to the preparation of work plan for all procurements based on the x Notapproved all items budget were for in FYthe 2009/20010approved procurement in accordance plan, with for Regulationexample, the number wet processing 96. machine. xx TheThere Authority were instances did not where have somea framework procurement contract action for filesfrequently were incomplete. purchased items such as Poly Pots which would have led to cost saving. Page 153 of 179 x User departments did not adhere to the preparation of work plan for all procurements based on the approved budget for FY 2009/20010 in accordance with Regulation number 96. x There were instances where some procurement action files were incomplete. Page 153 of 179
Page 153 of 179 x The Procurement and Disposal Unit (PDU) was understaffed having been manned by one officer. To handle the fairly significant workload, the officer occasionally enlisted the help of trainee assistants (interns). x The Procurement and Disposal Unit (PDU) was understaffed having been manned by one officer. To Recommendationshandle the fairly significant workload, the officer occasionally enlisted the help of trainee assistants x (interns).The entity should comprehensively plan for all items expected to be procured in line with Regulation 96 of the PPDA. Recommendationsx The Accounting Officer should update the provider’s register for the FY 2009/20010 in accordance x Thewith entityRegulation should 126(6). comprehensively plan for all items expected to be procured in line with Regulation x 96The of Headthe PPDA. PDU should identify frequently procured items for the entity to enter into framework x Thecontracts Accounting with the Officer providers should in line update with theRegulation provide r’s237. register for the FY 2009/20010 in accordance x withThe entityRegulation must 126(6).always ensure that all correspondences related to each procurement item are filed in x Theone file Head from PDU the shouldinitiation identify of the need frequently up to post procured contract items management for the entity documentation to enter into as required framework by contractsRegulation with 90 theand providers91 in line with Regulation 237. x TheUser entity departments must always should ensure prepare that workall corresponde plan for nces2009/10 related FY to for each all procurement procurements item based are filed on thein oneapproved file from budget the initiation which must of the be need submitted up to post to thecontract PDU management to facilitate documentation orderly execution as required of annual by Regulationprocurement 90 activities and 91 as stipulated by Regulation number 96. x UserThe Accounting departments Officer should should prepare ensure work the plan PDU for is sta2009/10ffed appropriately FY for all in procurements line with the basedwork load on the of approvedthe Entity in budget accordance which with must S ection be submitted 30 of the to PPDA the PDUAct, 2003. to facilitate orderly execution of annual procurement activities as stipulated by Regulation number 96. x The Accounting Officer should ensure the PDU is staffed appropriately in line with the work load of the Entity in accordance with Section 30 of the PPDA Act, 2003.
Procurement audit of Posta Uganda
The Authority sampled 30 procurement action files and below is the summary of performance of the Procuremententity: audit of Posta Uganda
The Authority sampled 30 procurement action files and below is the summary of performance of the Number categorization Value categorization entity:Risk Category No. Percentage Value (Ushs) Percentage High Risk Number categorization 664,558,919 Value categorization 76% Risk Category 18 60% Medium Risk No.5 Percentage17% Value90,524,960 (Ushs) Percentage 10% High Risk 664,558,919 76% Low Risk 187 60%23% 123,707,099 14% Medium Risk 90,524,960 10% Satisfactory 50 17%0 0 0 Low Risk 123,707,099 14% Total 307 100%23% 878,790,978 100% Satisfactory 0 0 0 0 TotalFindings 878,790,978 100% x The procurement plan was not integrated30 into the100% annual expenditure programme to enhance financial predictability, accounting and control over procurement budgets. The Plan did not have a detailed Findingsbreakdown of activities of works, services or supplies to be procured and schedule of procurement x Therequirements procurement in order plan ofwas priority not integrated as required into by the PPDA annual regulation expenditure 9. programme to enhance financial x predictability,Some suppliers accounting not on pre- and qualif controlied over list were procur invitedement to budgets. bid alongside The Plan those did not that have had a been detailed pre- breakdownqualified with of activitiesout any justifiable of works, reasonsservices for or examsuppliplees Underto be procuredsupply of and sta tioneryschedule and of consumablesprocurement requirementsM/s J.N. Enterprises in order was of priority not on theas requiredEntity’s bypre-qualified PPDA regulation list. 9. x SomeMembers suppliers of the notEvaluation on pre- Committees qualified list were were in so invitedme instances to bid alongsidenot approved those by thatCC hadas required been pre- by qualifiedregulation with 48 (C). out any justifiable reasons for example Under supply of stationery and consumables x M/sThe J.N. procurement Enterprises records was not of on the the entityEntity’s are pre-qualified not kept in list. their respective action files contrary to x Membersregulation of 90 the and Evaluation 91 of the CommitteesRegulations. were Most in pa soymentme instances related documentationnot approved by was CC not as providedrequired byon regulationmost of the 48 case (C). files. x TheThe PDU procurement proceeded records with some of the procurement entity are witnothout kept procurement in their respective requisitions, action approvals files contrary from CC to andregulation confirmation 90 and of 91 funding of the by Regulations. the AO. Most payment related documentation was not provided on most of the case files. Page 154 of 179 The PDU proceeded with some procurement without procurement requisitions, approvals from CC and confirmation of funding by the AO. Page 154 of 179
Page 154 of 179 Non use of standard PPDA forms e.g. record of bid issue, receipt and opening, evaluation reports, CC communication of decisions. x The CC was not involved in key procurement stages which was a big flaw in the entity’s procurement process e.g approval of contract awards.
Recommendations x The PDU should prepare 2009/10 procurement plan linked to the annual approved budget in accordance with regulation 96 of the PPDA Regulations 2003. x The Head PDU should ensure that priority is given to the pre-qualified providers to participate in the bidding process. x The Head PDU should ensure that the Evaluation Committee is nominated and submitted to the CC for approval in accordance with Regulation 169(2). x The PDU should ensure that all documents pertaining to a procurement are maintained the procurement action file in accordance with Regulation 90 and 91. x The Accounting Officer should consider recruiting qualified and experienced personnel to man the PDU. x The PDU should ensure that the procurement methods used are in line with the provisions of the fourth schedule to the PPDA Act. x The entity should liaise with the PPDA for training of the CC on their roles and responsibilities.
Procurement audit of Uganda National Bureau of Standards
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 25 83.34% 481,496,582 88.85% Medium Risk 1 3.33% 6,000,000 1.11% Low Risk 4 13.33% 54,396,592 10.04% Satisfactory 0 0% 0 0% Total 30 100% 541,893,174 100%
Key Findings x The Entity did not operate their procurement processes on the basis of a procurement plan for the period under review. In the absence of procurement plan(s) the entity conducted many procurements in an adhoc manner and emergencies. x Pre-qualification was not carried out by the entity for the period under review and this could undermine the principles of transparency, efficiency & economy in inviting bidders. x In the procurement of Furniture from Nina Interiors Limited at UGX. 6,520,000/= and the procurement of Office Space from SGS at UGX 40,120,000/=. The wrong procurement methods were used by the PDE and without approval by CC and no justification was provided e.g RFQ was used instead of direct method. x In the procurement of Toyota Land Cruiser (UGX. 98,022,000) and Double Cabin Pick-up (UGX. 123,184,514) clearance from the Solicitor General was not sought. x The PDU did not maintain records of all procurements as required under Regulation 89, 90 and 91
Recommendations x The AO should ensure that the statute establishing UNBS is harmonised to conform with the PPDA Act 2003. Page 155 of 179
Page 155 of 179 x Procurement planning should be done annually in accordance with Section 34(2), Regulation 60, 96(1). x The pre-qualification process at the PDE should be conducted in accordance with the PPDA Act 2003 & Regulations 22-24 in particular and results documented and archived for future reference. x The PDU staff should ensure that the correct procurement method is applied in accordance with Regulation 106 and approved by CC in accordance with Regulation 48. x The AO should ensure that all contracts above Ugx. 50 million are cleared by the Solicitor General in accordance with Regulation 225(2)(f). x The PDU should maintain copies of all contract management documents on their file in accordance with Regulation 89, 90 and 91.
x Procurement planning should be done annually in accordance with Section 34(2), Regulation 60, 96(1). x The pre-qualification process at the PDE should be conducted in accordance with the PPDA Act 2003 & Regulations 22-24 in particular and results documented and archived for future reference. x The PDU staff should ensure that the correct procurement method is applied in accordance with Regulation 106 and approved by CC in accordance with Regulation 48. x The AO should ensure that all contracts above Ugx. 50 million are cleared by the Solicitor General in accordance with Regulation 225(2)(f). x The PDU should maintain copies of all contract management documents on their file in accordance with Regulation 89, 90 and 91.
Procurement audit of Uganda Land Commission The Authority sampled 29 procurement action files and below is the summary of performance of the entity: Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High Risk 1 3.5% 4,659,525 2.5% Medium Risk 1 3.5% 10,000,000 5.4% Low Risk 8 27.6% 40,155,411 21.6% Satisfactory 19 65.4% 131,370,514 70.5% Total 29 100% 186,185,450 100% Procurement audit of Uganda Land Commission The Authority sampled 29 procurement action files and below is the summary of performance of the Keyentity: Findings x Procurement plans were preparedNumber by categorization the User Departments for Value the period categorization under review but no Riskconsolidation Category into an annual/comprehensive plan was made. As a result all procurements were made on an adhoc basis this also resultedNo. in the discrepan Percentagecy noted in Value the value (Ushs) of all procurements Percentage reported Highto Risk PPDA at 144,555,419/= and the1 value of the cases3.5% audited at 186,185,450/=4,659,525 . 2.5% Mediumx Direct Risk procurement method was 1used without written3.5% justification by10,000,000 the CC and PDU. 5.4% x Purchase orders for most of the procurement cases reviewed lacked attachments of statements of Lowrequirements Risk and the general or special8 conditions27.6% of contract. 40,155,411 21.6% Satisfactoryx When procuring office furniture19 from Nina Interior65.4% s, the best 131,370,514 evaluated bidder notice70.5% was dated 23/05/2008 yet the evaluation report awarding tender to Nina Interiors was dated 26/05/2008 Totalindicating that the evaluation was29 carried out after100% contract had been186,185,450 already awarded. 100% x The CC was composed of 6 members contrary to Section 27 of the PPDA Act, 2003. Keyx TheFindings procurement process was executed before funds were confirmed by the AO e.gthe procurement x Procurementof hotel services plans from were Imperial prepared Resort by the Beach, User Departments Hotel Triangle, for the printingperiod under of Land review forms but and no consolidationprocurement of into Tyres an annual/comprehensivefrom Kilimanjaro) the entire.plan wa s made. As a result all procurements were made x onThere an adhocwere nobasis contract this also Managers resulted appointedin the discrepan for eachcy notedof the in contracts the value the of allPDE procurements entered into reported and no tocontract PPDA monitoring. at 144,555,419/= and the value of the cases audited at 186,185,450/= . xx DirectThe role procurement of internal method audit in was certification usedPage without 156and written ve ofrification 179 justification of items by thein the CC procurement and PDU. process was x Purchaseinadequate. orders The scope for most mainly of thecove procurementred the financial cases arrangements reviewed lacked without attachments due regard of to statements the technical of requirementsrequirements andof the the procured general oritems, special quality conditions and consistence of contract. of decisions and records. xx WhenThe PDU procuring is managed office by furnitureone person from with Nina sufficient Interior equipments, the best and evaluated storage facilities. bidder notice was dated 23/05/2008 yet the evaluation report awarding tender to Nina Interiors was dated 26/05/2008 Recommendationsindicating that the evaluation was carried out after contract had been already awarded. xx TheProcurement CC was composed planning of should 6 members be done contrary annually. to Section It is the27 of obligation the PPDA of Act, each 2003. User Department to x Theprepare procurement a procurement process plan was and executed the PDU before to aggregat funds ewere all individualconfirmed plans by the into AO one e.gthe PDE procurement annual plan ofThe hotel AO should services exercise from his Imperial role in Resort accordance Beach, with Hotel Regulation Triangle, 96. the printing of Land forms and x procurementThe PDU staff of shouldTyres from ensure Kilimanjaro) that procurement the entire. met hod is applied in accordance with Regulation 106 x Thereand approved were no by contract CC in accordanceManagers appointedwith Regulation for each 48. of the contracts the PDE entered into and no x contractIn preparing monitoring. the solicitation documents, the PDU should always include a statement of requirements in accordance with Regulation 134(1).Page 156 of 179 x Appropriate disciplinary action should be taken against the CC and PDU approving and conducting the evaluation retrospectively and for notPage conforming 156 of to179 Regulation 184, 188, 190, 195. x The composition of the CC should be in accordance with Section 27 Third Schedule. x The User Department should fully comply with Regulation 104(1)(c) x The PDU and User Department should comply with Regulation 61(5), 259 of the PPDA by assigning contract managers.
Procurement audit of Uganda Police Force
The Authority sampled 40 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 15 38% 4,127,024,576 9% Medium Risk 6 15% 886,860,341 2% Low Risk 4 10% 2,036,364,111 5% Satisfactory 15 38% 36,555,190,148 84% Total 40 100% 43,605,439,176 100%
Key Findings x A number of procurements carried out were outside the Procurement Plan prepared, e.g procurement of drugs. x In 30% of the case files reviewed, the entity gave providers fewer days to submit their bids which contradicted Section 145 of the PPDA Regulations (2003). x The Force used the direct method of procurement unjustifiably. Better value for money could have been achieved under framework contracts. x The procurements reviewed were executed using wrong methods of procurement such as in procurement of building materials for Soroti Barracks where the RFQ instead of ODB method was used to source for supplies worth Ugx.179,689,220. x There was no evidence that evaluation of bids was carried out by an independently established team as is required under Section 168 of the PPDA Regulations 2003 such as in construction of semi- permanent accommodation structures in various locations of Kampala Extra. x The PDU entirely handed over the contract management function to the user departments, and did not keep contracting and contract management records on individual procurement action files. Page 157 of 179 x The role of internal audit in certification and verification of items in the procurement process was inadequate. The scope mainly covered the financial arrangements without due regard to the technical requirements of the procured items, quality and consistence of decisions and records. xx The PDUrole of is managedinternal audit by one in personcertification with sufficient and verification equipment of itemsand storage in the facilities. procurement process was inadequate. The scope mainly covered the financial arrangements without due regard to the technical Recommendationsrequirements of the procured items, quality and consistence of decisions and records. xx TheProcurement PDU is managed planning by should one person be done with annually.sufficient Itequipment is the obligation and storage of facilities. each User Department to prepare a procurement plan and the PDU to aggregate all individual plans into one PDE annual plan RecommendationsThe AO should exercise his role in accordance with Regulation 96. xx ProcurementThe PDU staff planning should ensure should that be procurement done annually. met Ithod is is the applied obligation in accordance of each Userwith Regulation Department 106 to prepareand approved a procurement by CC in planaccordance and the with PDU Regulation to aggregat 48.e all individual plans into one PDE annual plan x TheIn preparing AO should the exercise solicitation his role documents, in accordance the PDU with s houldRegulation always 96. include a statement of requirements x Thein accordance PDU staff with should Regulation ensure that 134(1). procurement method is applied in accordance with Regulation 106 x andAppropriate approved disciplinary by CC in accordance action should with beRegulation taken against 48. the CC and PDU approving and conducting x Inthe preparing evaluation the retrospectively solicitation documents, and for not the conforming PDU should to Regulation always include 184, 188,a statement 190, 195. of requirements x inThe accordance composition with of Regulation the CC should 134(1). be in accordance with Section 27 Third Schedule. xx AppropriateThe User Department disciplinary should action fully should comply be takewithn Regulation against the 104(1)(c) CC and PDU approving and conducting x theThe evaluation PDU and retrospectivelyUser Department and should for not comply conforming with Regulation to Regulation 61(5), 184, 259 188, of 190, the PPDA195. by assigning x Thecontract composition managers. of the CC should be in accordance with Section 27 Third Schedule. x The User Department should fully comply with Regulation 104(1)(c) x The PDU and User Department should comply with Regulation 61(5), 259 of the PPDA by assigning contract managers.
Procurement audit of Uganda Police Force
The Authority sampled 40 procurement action files and below is the summary of performance of the Procuremententity: audit of Uganda Police Force
TheRisk AuthorityCategory sampled 40 procurementNumber categor actionization files and below Value is the categorization summary of performance of the entity: No. Percentage Value (Ushs) Percentage RiskHigh CategoryRisk Number15 categor38%ization Value 4,127,024,576 categorization 9% Medium Risk No.6 Percentage15% Value 886,860,341 (Ushs) Percentage2% HighLow Risk 154 38%10% 4,127,024,5762,036,364,111 9%5% MediumSatisfactory Risk 615 15%38% 36,555,190,148 886,860,341 2%84% LowTotal Risk 440 10%100% 43,605,439,176 2,036,364,111 5% 100% Satisfactory 15 38% 36,555,190,148 84% Key Findings Totalx A number of procurements40 carried out were100% outside the Procurement 43,605,439,176 Plan prepared, 100% e.g procurement of drugs. Keyx InFindings 30% of the case files reviewed, the entity gave providers fewer days to submit their bids which x Acontradicted number of Sectionprocurements 145 of carriedthe PPDA out Regulationswere outside (2003). the Procurement Plan prepared, e.g procurement x ofThe drugs. Force used the direct method of procurement unjustifiably. Better value for money could have x Inbeen 30% achieved of the undercase files framework reviewed, contracts. the entity gave providers fewer days to submit their bids which x contradictedThe procurements Section reviewed145 of the werePPDA executed Regulations usin (2003).g wrong methods of procurement such as in x Theprocurement Force used of thebuilding direct materials method offor procurement Soroti Barracks unjustifiably. where the BetterRFQ instvalueade for of moneyODB method could have was beenused achievedto source underfor supplies framework worth contracts. Ugx.179,689,220. xx TheThere procurements was no evidence reviewed that evaluation were executed of bids was usin gcarried wrong out methods by an independently of procurement established such asteam in procurementas is required of under building Section materials 168 offor the Soroti PPDA Ba rracks Regula wheretions 2003the RFQ such inst as ead in constructionof ODB method of semi- was usedpermanent to source accommodation for supplies worth structures Ugx.179,689,220. in various locations of Kampala Extra. xx ThereThe PDU was entirely no evidence handed that over evaluation the contract of bids management was carried function out by to an the independently user departments, established and did team not askeep is contracting required under and contract Section 168management of the PPDA records Regula on individualtions 2003 procurement such as in action construction files. of semi- x permanentThe CC did accommodation not provide key structures approvalsPage in various at157 key locationsof stages 179 of of the Kampala procurement Extra. process of the choice of x Theprocurement PDU entirely methods, handed solicitation over the contractdocuments, management evaluation function teams and to thereports, user departments,negotiation teams and did and not of keepthe contract contracting award and decision contract such management as in procurement records onof individualspare parts procurement for ASTU vehicles. action files. Page 157 of 179 Recommendations x User Departments should prepare work plans and which should be integrated into the annual procurement plan to enhance financial predictability. UPF should plan all procurements and disposals in a rational manner to avoid emergency procurements and disposals in accordance with the provisions of Reg. 96, 97 and 98 of the PPDA Regulations. x The bidding periods given to the bidders in all procurements should be sufficient enough to allow bidders to prepare and submit their Page bids and157 shouldof 179 not be reduced with the aim of limiting competition in accordance with Regulation 145. x All procurement and disposals to be conducted in a manner to maximize competition and achieve value for money in accordance with the provisions of PPDA regulation 85(1). x All methods used for the selection of bidders should allow for fair and equitable selection and ensure maximum competition. Where an emergency situation arises, a recommendation for the use of the situation as a criterion for determination of the choice of procurement method should include a comprehensive justification for its use clearly stating the reasons giving rise to the emergency situation in line with PPDA regulation 110. x All contracts entered into by the Entity should be managed in accordance with the procedure laid out under Division IV of the PPDA Regulations. x All Procurements carried out by the Entity should obtain approvals of the Contracts Committee of the choice of procurement methods, solicitation documents, evaluation teams and reports, negotiation teams and of the contract award decisions as is stated in the Law.
Procurement audit of Ministry of Trade, Tourism and Industry
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage
High Risk 10 33% 620,493,802.0 10.90% Medium Risk 5 17% 1,042,664,151.0 18.31% Low Risk 14 47% 2,077,668,206.0 36.49% Satisfactory 1 3% 1,952,664,000.0 34.30% Total 30 100% 5,693,490,159.0 100%
Key Findings x The PDU proceeded with procurements without, requisitions, confirmation of funds by the AO, obtaining approvals from the Contracts Committee of the method of procurement, solicitation documents and choice of providers; x There were some cases where some key approvals were not made by CC and procurements proceeded. x During the year 2007/2008, MTTI did not have an approved procurement plan; instead Department Procurement Work Plans were used as the plan for the entity. x Suppliers not on the pre-qualified suppliers list were invited to bid alongside those that had been pre-qualified without any justifiable reasons. The entity used pre-qualified supplier’s list of other entities and left out those on its list were not invited to bid.
Page 158 of 179 x The CC did not provide key approvals at key stages of the procurement process of the choice of procurement methods, solicitation documents, evaluation teams and reports, negotiation teams and of the contract award decision such as in procurement of spare parts for ASTU vehicles.
Recommendations x User Departments should prepare work plans and which should be integrated into the annual procurement plan to enhance financial predictability. UPF should plan all procurements and disposals in a rational manner to avoid emergency procurements and disposals in accordance with the provisions of Reg. 96, 97 and 98 of the PPDA Regulations. x The bidding periods given to the bidders in all procurements should be sufficient enough to allow bidders to prepare and submit their bids and should not be reduced with the aim of limiting competition in accordance with Regulation 145. x All procurement and disposals to be conducted in a manner to maximize competition and achieve value for money in accordance with the provisions of PPDA regulation 85(1). x All methods used for the selection of bidders should allow for fair and equitable selection and ensure maximum competition. Where an emergency situation arises, a recommendation for the use of the situation as a criterion for determination of the choice of procurement method should include a comprehensive justification for its use clearly stating the reasons giving rise to the emergency situation in line with PPDA regulation 110. x All contracts entered into by the Entity should be managed in accordance with the procedure laid out under Division IV of the PPDA Regulations. x All Procurements carried out by the Entity should obtain approvals of the Contracts Committee of the choice of procurement methods, solicitation documents, evaluation teams and reports, negotiation teams and of the contract award decisions as is stated in the Law.
Procurement audit of Ministry of Trade, Tourism and Industry
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage
High Risk 10 33% 620,493,802.0 10.90% Medium Risk 5 17% 1,042,664,151.0 18.31% Low Risk 14 47% 2,077,668,206.0 36.49% Satisfactory 1 3% 1,952,664,000.0 34.30% Total 30 100% 5,693,490,159.0 100%
Key Findings x The PDU proceeded with procurements without, requisitions, confirmation of funds by the AO, obtaining approvals from the Contracts Committee of the method of procurement, solicitation documents and choice of providers; x There were some cases where some key approvals were not made by CC and procurements proceeded. x During the year 2007/2008, MTTI did not have an approved procurement plan; instead Department Procurement Work Plans were used as the plan for the entity. x Suppliers not on the pre-qualified suppliers list were invited to bid alongside those that had been pre-qualified without any justifiable reasons. The entity used pre-qualified supplier’s list of other entities and left out those on its list were not invited to bid. x Procurement records were scattered in different procurement stakeholder departments i.e. User Departments, Contracts Committee,Page Finance158 of and 179 Accounts. x For all the contracts awarded, we did not see evidence of post contract monitoring that was undertaken by the PDU or User Departments after the contract signing. x About three contracts exceeding Uganda Shillings 50 million were signed without approval and clearance from the Solicitor General.
Recommendations Page 158 of 179 x The AO should ensure that funds are certified for all procurements in accordance with Reg. 105. x The HPDU and user departments should proceed with requisition of procurements as stipulated under Reg. 104. x User Departments should prepare work plans and which should be integrated into the annual procurement plan to enhance financial predictability in accordance with the provisions of Reg. 96, 97 and 98 of the PPDA Regulations. x All contracts exceeding Uganda Shillings 50 million should be approved and cleared by the Solicitor General. x All procurement action files should be kept in accordance with Reg. 90 and 91. x The entity should appoint contract managers for all big contracts. This should be done in accordance with Reg. 258, 259 and 260. x The CC should play their roles as stipulated in the PPDA Law and Regulations.
Procurement audit of Local Government Finance Commission
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage
High Risk 7 23.00% 16,484,317 2.60% Medium Risk 6 20.00% 260,203,740 41.70% Low Risk 14 46.66% 16,126,695 2.60% Satisfactory 3 10.00% 331,097,666 53.10% Total 30 100.0% 623,912,418 100.00%
Key Findings x Of the 30 procurement cases audited, five procurement files were initiated using a memo and PP Form 20 was signed after the evaluation process contrary to PPDA Regulation 104 (1) (a), (b), (c),(d), 2003. x Of the 30 procurements audited, 73% of the files had either no LPOs, confirmation of completed work, receipt of payment or both documents were missing contrary to PPDA Act, 56, (1), (a), and (b) 2003. x The direct method of procurement was used without clear justification contrary to the fourth schedule of the PPDA Act, 2003 and R 119. x The CC was not approving the methods of procurement contrary to R49 (3) (a) and 94 (1) (a) of PPDA Regulations 2003. x Whereas there were negotiations during the procurement of vehicles (four double cabin pick-ups from Toyota (U) Ltd.) and the results were recorded on PP Form 51, there was no negotiation plan prepared Page 159 of 179 x Procurement records were scattered in different procurement stakeholder departments i.e. User Departments, Contracts Committee, Finance and Accounts. x For all the contracts awarded, we did not see evidence of post contract monitoring that was undertaken by the PDU or User Departments after the contract signing. x About three contracts exceeding Uganda Shillings 50 million were signed without approval and clearance from the Solicitor General.
Recommendations x The AO should ensure that funds are certified for all procurements in accordance with Reg. 105. x The HPDU and user departments should proceed with requisition of procurements as stipulated under Reg. 104. x User Departments should prepare work plans and which should be integrated into the annual procurement plan to enhance financial predictability in accordance with the provisions of Reg. 96, 97 and 98 of the PPDA Regulations. x All contracts exceeding Uganda Shillings 50 million should be approved and cleared by the Solicitor General. x All procurement action files should be kept in accordance with Reg. 90 and 91. x The entity should appoint contract managers for all big contracts. This should be done in accordance with Reg. 258, 259 and 260. x The CC should play their roles as stipulated in the PPDA Law and Regulations.
Procurement audit of Local Government Finance Commission
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage
High Risk 7 23.00% 16,484,317 2.60% Medium Risk 6 20.00% 260,203,740 41.70% Low Risk 14 46.66% 16,126,695 2.60% Satisfactory 3 10.00% 331,097,666 53.10% Total 30 100.0% 623,912,418 100.00%
Key Findings x Of the 30 procurement cases audited, five procurement files were initiated using a memo and PP Form 20 was signed after the evaluation process contrary to PPDA Regulation 104 (1) (a), (b), (c),(d), 2003. x Of the 30 procurements audited, 73% of the files had either no LPOs, confirmation of completed work, receipt of payment or both documents were missing contrary to PPDA Act, 56, (1), (a), and (b) 2003. x The direct method of procurement was used without clear justification contrary to the fourth schedule of the PPDA Act, 2003 and R 119. x The CC was not approving the methods of procurement contrary to R49 (3) (a) and 94 (1) (a) of PPDA Regulations 2003. x Whereas there were negotiations during the procurement of vehicles (four double cabin pick-ups from Toyota (U) Ltd.) and the results were recorded on PP Form 51, there was no negotiation plan prepared prior to the negotiations contrary to Reg.Page 220(3)159 of 179 x The LGFC lacks a well structured, staffed and facilitated PDU. The structure has only one person (PO) who can not handle all the Procurement obligations of the commission. x There were stages of the procurement process where the CC was not involved, e.g. approval of procurement methods, contrary to Reg. 49 (2&3). x The Contract Committee did not meet frequently and thus causing delays in the procurement process.
Recommendations x The User departments and the PDU should be held responsible for non compliancy with the provisions of the PPDA Regulation 62 as regards procurement planning. x The Head PDU must emphasize adherencePage 159 to Reg. of 179 33 which provides the basis for choice of the procurement method. x The PDU should ensure that evaluation is carried out for all procurements and must be held responsible for not nominating members to conduct evaluation as required under Section 71. x The PDU should be held responsible for not seeking CC approval of the EC as required by Reg. 17(1)b. x The CID should investigation the 7 missing files worth UGX 86,525,164= unaccounted funds. x The CC Secretary should ensure that CC minutes are prepared using standard forms (Record of CC meeting) specified in the PPDA Regulation. x Appropriate disciplinary action should be taken against the PDU, User departments and the AO for initiating and proceeding with procurements without procurement requisitions, confirmation of funding by the AO in accordance with Reg. 104 and 105. x The AO should ensure that PPDA standard PP Forms are used by the Entity.
Procurement audit of Ministry of Foreign Affairs
The Authority sampled 60 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage
High Risk 8 13% 1,785,342,530 7% Medium Risk 8 13% 1,449,721,489 5% Low Risk 15 25% 12,281,282,389 46% Satisfactory 29 48% 11,030,194,772 42% Total 60 100% 26,546,541,180 100%
Key Findings x The Procurement Plan did not indicate the time when the requirements would be purchased, the method of procurement, order of priority and source of funding. As such, the Plan was more or less a list of user departments’ requirements. x The CHOGM Work Plan though adequately detailed, was hardly followed. Some procurements carried out under CHOGM were not on the plan. The OIC Procurement Plan though adequate for carrying out OIC procurements, was prepared late in the procurement process. x Some procurements were carried out without prior approval and confirmation of funds availability by the AO. Page 160 of 179 prior to the negotiations contrary to Reg. 220(3) x The LGFC lacks a well structured, staffed and facilitated PDU. The structure has only one person (PO)prior whoto the can negotiations not handle contrary all the Procurement to Reg. 220(3) obligations of the commission. xx ThereThe LGFC were lacks stages a ofwell the structured, procurement staffed process and f whereacilitated the PDU. CC was The not structure involved, has e.g. only approval one person of procurement(PO) who can methods, not handle contrary all the to Procurement Reg. 49 (2&3). obligations of the commission. xx TheThereprior Contract to were the negotiations stagesCommittee of the contrarydid procurement not meet to Reg. frequently process220(3) and where thus thecausing CC delays was not in involved,the procurement e.g. approval process. of x procurementThe LGFC lacksmethods, a well contrary structured, to Reg. staffed 49 (2&3). and facilitated PDU. The structure has only one person Recommendationsx The(PO) Contract who can Committee not handle didall thenot Procurementmeet frequently obligations and thus ofcausing the commission. delays in the procurement process. xx ThereThe User were departments stages of the and procurement the PDU should process be where held the responsible CC was fornot non involved, compliancy e.g. approval with the of Recommendationsprocurementprovisions of methods, the PPDA contrary Regulation to Reg. 62 as49 regards(2&3). procurement planning. xxx TheThe Contract Head User PDU departments Committee must emphasize did and not the meet PDUadherence frequently should to Reg.and be hethus 33ld whichcausing responsible provides delays for in the nonthe basis procurement compliancy for choice process. with of the the procurementprovisions of method. the PPDA Regulation 62 as regards procurement planning. xxRecommendationsThe HeadPDU PDUshould must ensure emphasize that evaluation adherence is to carried Reg. 33 out which for all provides procurements the basis and for must choice be of held the x responsibleprocurementThe User for departments method. not nominating and themembers PDU to should conduct be evaluation held responsible as required for under non compliancySection 71. with the xx Theprovisions PDU PDU shouldof should the PPDA be ensure held Regulation responsible that evaluation 62 foras regards not is carried seeking procurement out CC for approval planning. all procurements of the EC as and required must by be Reg. held x 17(1)b.responsibleThe Head PDUfor not must nominating emphasize members adherence to conduct to Reg. evaluation 33 which as providesrequired under the basis Section for choice71. of the xx Theprocurement CID PDU should should method. investigation be held responsible the 7 missing for notfiles seeking worth UGX CC approval 86,525,164= of the unaccounted EC as required funds. by Reg. xx The17(1)b.The CC PDU Secretary should should ensure ensure that evaluationthat CC minutes is carried are prepared out for using all procurements standard forms and (Record must be of heldCC x meeting)Theresponsible CID specifiedshould for not investigation in nominating the PPDA the membersRegulation. 7 missing to conductfiles worth evaluation UGX 86,525,164= as required unaccountedunder Section funds. 71. xxx AppropriateTheThe CC PDU Secretary should disciplinary beshould held action ensure responsible should that CC be for minutes taken not seeking ag arainste prepared CCthe approvalPDU, using User ofstandard departments the EC forms as requiredand (Record the byAO of Reg.CCfor initiatingmeeting)17(1)b. specified and proceeding in the PPDA with Regulation. procurements without procurement requisitions, confirmation of xx fundingAppropriateThe CID by should the disciplinary AO investigation in accordance action the should with 7 missing Reg. be taken 104 files and agworthainst 105. UGX the PDU, 86,525,164= User departments unaccounted and funds. the AO for xx TheinitiatingThe AO CC should Secretary and proceedingensure should that ensurePPDA with procurementsstandardthat CC minutesPP Forms wit arhout eare prepared used procurement by usingthe Entity. standard requisitions, forms confirmation (Record of CC of fundingmeeting) by specified the AO in accordancethe PPDA Regulation. with Reg. 104 and 105. xx TheAppropriate AO should disciplinary ensure that action PPDA should standard be PPtaken Forms against are usedthe PDU, by the User Entity. departments and the AO for initiating and proceeding with procurements without procurement requisitions, confirmation of funding by the AO in accordance with Reg. 104 and 105. Procurementx The AO should audit ensureof Ministry that PPDA of Foreign standard Affairs PP Forms are used by the Entity.
TheProcurement Authority audit sampled of Ministry 60 procurement of Foreign action Affairs files and below is the summary of performance of the entity: The Authority sampled 60 procurement action files and below is the summary of performance of the Riskentity:Procurement Category audit of MinistryNumber of Foreign categor Affairsization Value categorization No. Percentage Value (Ushs) Percentage RiskThe AuthorityCategory sampled 60 procurementNumber categor actionization files and below Value is the categorization summary of performance of the Highentity: Risk No. 8 Percentage13% Value 1,785,342,530 (Ushs) Percentage7% Medium Risk HighRisk RiskCategory Number categor8 ization 13% Value 1,449,721,489 categorization 5% Low Risk 8 13% 1,785,342,530 7% Medium Risk No. 15 Percentage25% Value 12,281,282,389 (Ushs) Percentage46% Satisfactory 8 13% 1,449,721,489 5% LowHigh Risk Risk 29 48% 11,030,194,772 42% Total 158 25%13% 12,281,282,389 1,785,342,530 46%7% Medium Risk 60 100% 26,546,541,180 100% Satisfactory 298 48%13% 11,030,194,772 1,449,721,489 42%5% Low Risk Total 6015 100%25%26,546,541,180 12,281,282,389 100%46% Satisfactory 29 48% 11,030,194,772 42% Key Findings Total x The Procurement Plan did not indicate60 the time wh 100%en the requirements26,546,541,180 would be purchased,100% the Keymethod Findings of procurement, order of priority and source of funding. As such, the Plan was more or less a x listThe of Procurement user departments’ Plan didrequirements. not indicate the time when the requirements would be purchased, the x Themethod CHOGM of procurement, Work Plan order though of priority adequately and source detaile ofd, funding. was hardly As such, followed. the Plan Some was more procurements or less a Keycarriedlist Findings of user out departments’ under CHOGM requirements. were not on the plan. The OIC Procurement Plan though adequate for xx carryingTheThe CHOGM Procurement out OIC Work procurements, Plan Plan did though not was indicate adequatelyprepared the late time detaile in whthed,en procurement was the requirements hardly process. followed. would Some be purchased, procurements the x Somecarriedmethod procurements outof procurement, under CHOGM were ordercarried were of out priority not without on and the prior plan.source approval Th ofe funding. OIC and Procurement confirmationAs such, the Plan ofPlan funds though was availability more adequate or less forby a thecarryinglist AO. of user out departments’ OIC procurements, requirements. was prepared late in the procurement process. xx SomeThe CHOGMprocurements Work were Plan carried though out Page adequatelywithout160 prior of detaile 179approvald, was and hardly confirmation followed. of funds Some availability procurements by thecarried AO. out under CHOGM were not on the plan. The OIC Procurement Plan though adequate for carrying out OIC procurements, wasPage prepared160 late of in179 the procurement process. x Some procurements were carried out without prior approval and confirmation of funds availability by the AO. Page 160 of 179
Page 160 of 179 x Some procurement file cases lacked records of issue of solicitation documents as well as records of receipt and opening of bids e.g. Procurement of Air tickets for MOFA delegation to India, publicity of OIC event. x In some instances bidding periods were less than the minimum recommended by PPDA regulations e.g. Provision of Decoration services for OIC event. x There are some cases in which standard solicitation documents were not used in bidding (Printing of ministerial policy statement). x No evaluation of bids was carried out e.g. assorted furniture for Munyonyo, Banquets, Reception and Hospitality-OIC, Publicity of OIC event, Repair of Motor vehicle, etc. x There were some missing contracts/LPOs on procurement files e.g. Supply of invitation cards for CHOGM by TTB Investments, Servicing Photocopier by Ultra (U) Ltd. x Some contracts also had no Solicitor General’s approval e.g. Supply of assorted furniture for Munyonyo, Venue for CHOGM retreat. x Many case files had missing contract performance documentation, for instance, provision of banquets, reception and hospitality, Venue for CHOGM Retreat, Entertainment by Isaiah Katumwa, Supply of gifts and bags, provision of air tickets, Events management services for CHOGM, supply of kitchen utensils and domestic ware, elevator maintenance, servicing photocopier and venue for accommodation and closing ceremony for CHOGM. x In some instances, contract variations were greater than 25% of the initial contract values yet PPDA clearance was not sought on the variations e.g. Design and printing of OIC material and UN Security Council seat campaign material by Supply Masters. x In the execution of some procurements, PPDA Regulations were hardly considered. E.g. Supply of assorted furniture for Munyonyo by Malaysia furnishing, repair of motor vehicle by Star Auto Paradise, banquets, reception and hospitality by Sheraton Hotel, publicity of OIC event. x In some cases evaluation criteria was developed after submission of bids contrary to the Regulations e.g. Procurement of Furniture for MOFA. x In a number of instances, the Entity used methods of procurement contrary to the provisions of the law without justification and CC approval e.g. Procurement of Air tickets for MOFA delegates, printing ministerial policy statement, repair of motor vehicle. x There were cases of retrospective approval by the CC (Provision of furniture and artworks for Entebbe Airport). Some procurements were carried out without key CC approvals as required by the Act and Regulations.
Recommendations x The PDU should ensure that work plans provided by User departments are in the format specified by Reg. 97. The PDU should also ensure that a combined work plan is prepared as required by Reg. 96 (3) taking into consideration Reg. 98. x Appropriate disciplinary action should be taken against the HPDU for lack of procurement records. x The Entity should carry out evaluations of bids submitted under all procurement methods (including direct procurement) in accordance with division VII of the PPDA regulations. x PDU should ensure all procurement, contracting and contract management documentation is maintained on the procurement action file as required by Reg 90 & 91. x The PDU should ensure that all contract variations exceeding 25% get PPDA’s clearance in accordance with Section 340 of the PPDA Regulations. x The AO should ensure in the execution of all procurement processes, the Act and Regulations are adhered to and permission sought from PPDA should any deviations be deemed necessary. x The CC should ensure evaluation criteria is developed and approved prior to issue of solicitation documents to bidders as required by Reg 172 (1) and 48 (a). x The PDU should ensure the correct procurement methods are used in accordance with Reg. 106 and guideline 1/2003. The PDU should also consider the use of framework contracts for frequently procured goods and services as required by Reg 118 (11). x The CC should ensure timely communication of their decisions on any submissions made by the PDU.
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Page 161 of 179 x The Secretary CC should ensure all records of CC meetings are properly kept as required by Act Sec 41 and Reg 53. x The AO should liaise with PPDA and ensure that User departments obtain necessary training in procurement and contract management legislation and procedures. x The PDU should sensitive the user departments on the contract management roles required of them in x accordanceThe Secretary with CC Reg. should 260. ensure all records of CC meetings are properly kept as required by Act Sec 41 and Reg 53. xProcurementThe AO should audit of liaise Mukono with District PPDA and Local ensure Government that User departments obtain necessary training in procurement and contract management legislation and procedures. xThe The Authority PDU should sampled sensitive 20 procurement the user departments action files on and the belowcontract is management the summary roles of performancerequired of them of the in entity:accordance with Reg. 260.
RiskProcurement Category audit of MukonoNumber District categor Local izationGovernment Value categorization No. Percentage Value (Ushs) Percentage The Authority sampled 20 procurement action files and below is the summary of performance of the entity:High Risk 10 50% 109,827,324 38% Medium Risk 14,700,000 5% Risk Category Number categor1 ization 5% Value categorization Low Risk 126,729,192 44% No. 5 Percentage25% Value (Ushs) Percentage Satisfactory 4 20% 35,498,750 12% High Risk 10 50% 109,827,324 38% Total 20 100% 286,755,266 100% Medium Risk 1 5% 14,700,000 5% Low Risk 5 25% 126,729,192 44% Satisfactory 4 20% 35,498,750 12% Total 20 100% 286,755,266 100%
Key Findings x A number of procurements initiated and handled during the period were not on the District’s Procurement Plan e.g. Capacity Building. The plan was not linked to the District’s budget and did not demonstrate user department involvement in its preparation. This was demonstrated by the un- reconciled difference of Shs.19,065,645,757/= between the total non-wage budget for the entity and Keythe Findings total procurements reported to PPDA during the period 2007/08. x AThe number PDU’s involvement of procurements in the initia procurementted and process handled was during up to the the periodcontract were award not stage. on theThere District’s was no Procurementevidence of Plan assignment e.g. Capacity of contract Building. supervisors The plan was and not of linked contract to the management District’s budget for a and number did not of demonstrateprocurements. user department involvement in its preparation. This was demonstrated by the un- x reconciledProcurement difference records wereof Shs.19,065,645,757/= scattered in different betw usereen departments the total non-wage and as a budget result, forthe thePDU entity did andnot thehave total procurement procurements action reported files. to PPDA during the period 2007/08. x TheThere PDU’s were involvementmany instances in thewhere procurement the PDU proceededprocess was with up toprocurements the contract withoutaward stage. requisitions There wasraised, no evidencewithout confirmation of assignment of funding of contract by the supervisorsAO and CC approvals. and of contract management for a number of x procurements.The PDU did not emphasize the use of LG forms issued by the authority, e.g. there were no forms, the x CCProcurement minutes were records not onwere LG scattered forms among in different others. user departments and as a result, the PDU did not x Therehave procurement was no CC approvalaction files. of methods of procurement and there were instances where direct and sole x Theresourcing were was many used instanceswithout justification. where the PDU proceeded with procurements without requisitions raised, x Therewithout was confirmation no evidence of funding of the CC by the appointment AO and CC by approvals. the PS/ST and the committee was inadequately x Thestaffed PDU with did only not threeemphasize members. the use of LG forms issued by the authority, e.g. there were no forms, the CC minutes were not on LG forms among others. xRecommendationsThere was no CC approval of methods of procurement and there were instances where direct and sole xsourcingThe PDU,was used User without departments, justification. AO and CC should desist from initiating and proceeding with x Thereprocurements was no evidence without of the procur CC ement appointment requisition by the forms PS/ST (PP and LG the committee Form 1), was confirmation inadequately of staffedavailability with only of three funds members. and CC approvals. x The User departments should always appoint contract supervisors formally for effective contract Recommendationsmonitoring as required by LG/PPDA regulation 105. x The PDU, User departments, AOPage and162 CC of should 179 desist from initiating and proceeding with procurements without procurement requisition forms (PP LG Form 1), confirmation of availability of funds and CC approvals. x The User departments should always appoint contract supervisors formally for effective contract monitoring as required by LG/PPDA regulation 105. Page 162 of 179
Page 162 of 179 x The PDU should ensure that all missing documentation is maintained within the PDU in accordance with section 31(o) PPDA Act. x The CC should desist from not approving contract documents and should ensure that future contracts are approved prior to their issuance. x The PDU should ensure that PPDA PP LG forms are used at all appropriate stages of the procurement process. x The PDU should be held responsible for the non submission of draft contracts for CC approval and should ensure all future contracts are submitted for approval. x The CC should exercise its oversight and approval role regarding approval of procurement methods as required by LG/PPDA regulation 56. x The AO and PDU should ensure that a fully fledged CC approved by the PS/ST is put in place. x The Chairman CC and Secretary CC should desist from preparing CC decisions not evident in the CC minutes, all future decisions should be generated from CC minutes / Deliberations.
Procurement audit of Law Development Centre
The Authority sampled 64 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 9 14 56,694,735 13 Medium Risk 6 9 12,039,400 3 Low Risk 5 8 8,030,100 2 Satisfactory 44 69 368,552,785 83
Total 64 100 445,317,020 100
Findings x There were no procurement plans prepared in the period under review. This resulted into haphazard and emergency procurements. x The secretary LDC was a member of the Contracts Committee and also had a role in approving issuance of all the LPOs. This resulted in conflict of interest. x The capacity of the PDU in terms of staff was weak. The incapacity created a challenge especially due to the numerous small value, and diverse range of procurement requirements undertaken by LDC. x The Contracts Committee members served a period of more than 3 years, but their appointment letters had not been renewed for the subsequent period. x The LDC did not use PPDA forms as stipulated in the Act in the execution of their procurements. x There was no evidence of framework agreements for commonly procured items. This increases to unnecessary contract management costs. x Wrong procurement methods used in various contracts.
Recommendations x The PDU should ensure that work plans provided by User departments are in the format specified by Reg. 97. The PDU should also ensure that a combined work plan is prepared as required by Reg. 96 (3) taking into consideration Reg. 98. x Emergency procurements should be conducted in accordance with Reg. 110. x The Secretary LDC who is a member of the Contracts Committee should be replaced to avoid conflict of interest. x The AO should adequately staff the PDU handle the diverse range of procurement requirements undertaken by LDC.
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Page 163 of 179 x The AO should regularize the operations of the Contracts Committee members and ensure that their appointments are renewed. x The PDU should use PPDA forms as stipulated in the Act in the execution of their procurements. x The choice of method of procurement should be in accordance with Reg. 106.
Procurement Audit of Tororo District Local Government (2007/08)
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 13 43 635,974,391 57 Medium Risk 11 37 339,097,201 31 Low Risk 6 20 134,639,800 12 Satisfactory 0 0 0 0 Total 30 100% 1,109,711,392 100%
Key findings x User Departments, particularly sub-counties, prepared departmental plans but these were not submitted to the PDU for consolidation into an aggregated procurement plan for FY 2007/08 contrary to LG PPDA Regulation 26(1)(a). x Areas such as Motor vehicle repair and maintenance and provision of motor vehicle lubricants, fuel and servicing had only one pre-qualified provider each. This limited the short listing and rotation of providers contrary to LG PPDA Regulation 38(5)(b). x Notices inviting pre-qualified providers were posted on the general notice board, without writing specifically to the short listed bidders, while using selective and RFQ/F, contrary to LG PPDA Regulation 38(2). x 17 % of the cases reviewed did not have evaluation reports on file, contrary to Regulation 46(2)(f) of the LG PPDA Regulations, 2006 and where evaluation reports were prepared, the reports were not in PPDA format. Most of the evaluation recommendations were based on the engineer’s estimates and reserve prices regardless of the bidders offer. x Record keeping at the entity was poor. There was no single complete procurement action file contravening Regulations 46 of the PPDA (Local Government) Regulations 2006. x The CC was approving contract variations above 15% without clearance from PPDA in accordance with LG PPDA Regulation 120(12). x The PS/ST appointed four members of the Contracts Committee in 2006. One member was interdicted in 2007, leaving only three active members. However by the time of audit, no appointments had been made. x Agreements prepared by the entity were not in PPDA format contrary to Regulation 88(1). Thirty seven point 5 percent (37.5%) (or 3/8) of the contracts eligible for Solicitor General’s approval were not cleared by the Solicitor General contrary to LG PPDA Regulation 86(2)(f).
Recommendations x The entity should prepare work plans and consolidate them into Procurement Plans in accordance with LG PPDA Regulation 26(1)(a). x Where an invitation to bid attracts few applications and few providers are pre-qualified in accordance with LG/PPDA Regulation 51(1), the entity could beef up their pre-qualified list with providers pre- qualified in other entities in order to foster competition. x Bidders should be called in writing after approval of shortlist in accordance with LG PPDAA Regulation 38(2), in addition to the display on notice board [Reg. 38(7)]. Page 164 of 179
Page 164 of 179 x The District Engineer as a User Department should recommend statement of requirements to the PDU for incorporation into the bidding document in accordance with LG PPDA Regulation 26(1). x The Head PDU should ensure that records are maintained on file in accordance with LG PPDA Regulation 46. x The evaluation criteria for each procurement ought to be indicated in the bid document in accordance with LG PPDA Regulation 48(4). x Except under Fixed Budget Selection, the engineer’s estimate should not be imposed on bidders. x The Solicitor General should approve all contracts above 50 million Shillings in line with LG/PPDA Regulation 86(2) (f). x The Accounting Officer should take disciplinary action on Mr. Harlod Bruce Lugoolobi and Mr. Timothy Asangai Osillo for poorly maintaining records of the entity. x The CC should stop approving contracts variations above 15% without clearance from PPDA in accordance with LG PPDA Regulation 120(12). x The Accounting Officer should follow up on the appointment of the CC members
Procurement Audit of Parliamentary Commission (2007/08)
The Authority sampled 20 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 14 70% 2,066,076,943 35% Medium Risk 5 25% 3,448,380,410 58% Low Risk 1 5% 451,857,942 8% Satisfactory 0 0 0 0 Total 20 100% 5,966,315,295 100%
Key findings x The Entity did not have an approved procurement plan. As a result, there were instances where procurement methods used were not in line with the provisions in the PPDA Act and Regulations. An example was where the RFQ method was used to procure an X-ray machine at a value of more than 148 million shillings. x The prequalification list used was generated in 2005/2006 and was valid for three years expiring on 30th June 2008. At the time of the audit, 6 months into the next financial year, the list had not been updated. x There were no contract managers assigned to any of the contracts reviewed. x There was no contract management related documentation kept for each of the procurements. Procurements worth 203,630,176/= did not have documentation at all. The documentation maintained were incomplete with missing procurement forms, goods received notes, certificates of completion of work, copies of evidence of payment and contract completion reports. x The CC did not approval some procurements e.g air ticketing and hotel and catering services. x Not all procurements were handled through the PDU, some of the procurements relating to air ticketing were initiated by the User Departments and approved by the Accounting Officer. In some instances, the User Departments appeared to perform the roles of the PDU.
Recommendation Procurement plans should be prepared and linked to the annual approved budget in accordance with Regulation 96 of the PPDA Regulations.
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Page 165 of 179 As required by Regulation 126 (6), the pre-qualification list should be regularly reviewed to identify whether it is satisfactory to ensure providers still have the capacity to deliver. All documentation relating to contract management should be filed as stipulated in Reg 91, 260 (a) (vii) and Act Sec 56 (1). The Accounting Officer should caution the Head, PDU, for breach of Section 41 and Regulation 90 and 91 of the PPDA Act. The Accounting Officer should ensure that the Entity complies with the reporting requirements as spelt out in Section 40 of the PPDA Act. Members of the Contracts Committee should execute their roles and functions as enumerated under Section 28 of the PPDA Act.
Procurement Audit of Ministry of Health – ADB Project (2007/08)
The Authority sampled 20 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 1 5 80,655,017.00 0 Medium Risk 0 0 0 0 Low Risk 4 20 1,050,282,920.10 3% Satisfactory 15 75 35,572,541,745.19 97% Total 20 100% 36,703,479,682.29 100%
Key finding Despite having the plan procurement, one of the procurements (photocopying of bid documents – Ref. No. SHSSPP/SVCS/07-08/0064) was hastily handled and violations made of PPDA rules on duration of bidding periods. The Project utilised the pre-qualified providers list of Butabika Hospital because it was under its jurisdiction. Members of the Evaluation Committees that carried out evaluations did not sign Code of Ethics as required by PPDA Regulation 169 (9). Most of the Procurement Reports submitted to PPDA were late and incomplete.
Recommendation The PMU should ensure all procurements are adequately planned for to avoid emergencies and urgent procurements as required under Sec. 58 of the PPDA Act, 2003. The PDU should ensure that members of evaluation committees sign the ethical code of conduct as required under Reg. 169 (9) The PMU should ensure timely and accurate submission of reports to PPDA as required Reg. 40
Procurement Audit of Population Secretariat (2007/08) The Authority sampled 10 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage
High Risk 1 10% 24,780,000 8% Medium Risk 5 50% 188,902,050 58% Page 166 of 179
Page 166 of 179 Low Risk 4 40% 111,255,560 34% Satisfactory 0 0 0 0 Total 10 100% 324,937,610 100% Key findings x The procurement plan ignored several requirements e.g. the inclusion of schedule of procurement requirements and source of funding. User departments were not involved in the development of the procurement plan. x Key categories such as provision of conference facilities and consultancy services were not pre- qualified for. Providers of certain categories were not rotated e.g garages. Some solicited bidders were not on the pre-qualified list of suppliers. x There were no contract managers assigned to big contracts reviewed. x Some information relating to procurements was not filed as is required by the PPDA Act and Regulations especially post-contract management documents. x During the period under review, the PDU was understaffed with only one Procurement Officer in the Unit. In addition to the various roles, he also handled fleet management in the Entity which was strenuous for one person x For the 7 months to February 2008, the CC Chairman was also the Director, Finance and Administration, in breach of the segregation of duties control in the procurement process.
Recommendations User departments should prepare work plan for procurements based on the approved budgets and submit the plan to the PDU in line with Section 34, Reg 60 and 96(1). The Entity should periodically review and update the list of pre-qualified providers as required by Regulation 126 (6). Contract Managers nominated by User Departments should always execute their functions in line with PPDA Reg 258 (3), (5) and 260. The PDE should ensure procurement related information and documentation is retained as required by Sec 56 (1) of the PPDA Act. The Accounting Officer should ensure that the PDU is well staffed and able to fully carry out its responsibilities under PPDA Reg 58 and 59. Any delegation of the Accounting Officer roles and functions must in accordance with PPDA Regulation 63 which requires that this be done in writing. Procurement Audit of Ministry of General, Labour and Social Development (2007/08)
The Authority sampled 30 procurement action files and below is the summary of performance of the entity: Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 4 13% 189,619,618 4% Medium Risk 10 33% 4,534,345,160 89% Low Risk 14 47% 340,865,100 6.7% Satisfactory 2 7% 48,886,600 0.3% Total 30 100% 5,113,716,478 100%
Key findings The procurement plan lacked adequate detail for a number of items listed on it and was not linked to the Entity’s budget. It did not provide for activities in their order of priority.
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Page 167 of 179 While the Ministry had a list of pre-qualified providers generated in line with the provisions of the law, there were a number of instances where the list was not well utilised e.g cases include the provision of food-related supplies. For most contracts awarded, the Entity did not use standard bidding documents to draft the contracts. The PDU was not involved in the procurement after issuing of LPOs. User Departments together with the Finance Department took charge from there. Contract managers were not appointed to oversee procurements after award. Some of the procurement related records were not availed for the reviewed case files. The entity’s procurement budget was approximately Shs 6.7 billion. However, Shs 20 billion was expended in procurements which was 80% of unbudgeted procurements. The PPDA noted that this came up as a result of the CHOGM and Afro Arab Conference related activities.
Recommendations x The Ministry should comply with Sections 58 and 59 of the Act which explicitly require that the Entity plan its procurements in a rational manner avoiding emergency procurements. x As required by Regulation 126 (6), the pre-qualification list should be regularly reviewed to identify whether it is satisfactory to ensure providers are still capable and to update their details. x The User Department should appoint contract managers in accordance with Reg. 259. x All records regarding the procurement process must be archived appropriately and kept safely as required by Act Sec 56 (1), Reg 90, 91 and 92.
Procurement Audit of Mbarara District Local Government (2007/08)
The Authority sampled 30 procurement action files and below is the summary of performance of the entity: Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 8 27 472,633,836 45 Medium Risk 9 30 197,613,411 19 Low Risk 13 43 383,533,568 36 Satisfactory 0 0 0 0 Total 30 100% 1,053,780,815 100%
Findings x The PDU did not aggregate the work plans into a consolidated Procurement Plan contrary to Section 62(3) of the LG PPDA Regulations. Some of the procurements were not reflected in the User Department’s work plans e.g Construction of HC II and 2-stance pit latrine at Bwengure, all the items for the CAO’s office, Veterinary Department, Production and Marketing Department, Medical Department, District Service Commission, Agriculture and Engineering Departments did not have estimated costs. x There was no evidence that the AO was certifying availability of funds contrary to Regulation 14 (j). x The evaluation criteria were not stated in the bid document contrary to Regulation 71 (2) of the PPDA LG Regulations, 2006. A number of the cases reviewed did not have evaluation reports on file, contrary to Regulation 81 (1) of the PPDA LG Regulations, 2006. x Record keeping at the entity was very poor. Procurement action files were not maintained in accordance with Regulations 46 of the PPDA (Local Government) regulations 2006. x Majority of the procurements audited did not have evidence of appointment of contract managers contrary to Local Government (PPDA) regulation 105(1). x There was an instance where an award was made to a non-responsive bidder. This was in the case of Page 168 of 179
Page 168 of 179 completion of 4-classroom block at Bushwere P/S. x There were a number of contracts that were signed by Sub-county Chiefs without delegated authority. x For contracts above 50 million, there was no evidence of approval from the Solicitor General. x The PDU was understaffed, with only one officer at the level of Assistant Procurement Officer, who only joined in May 2008. A number of functions expected of the PDU were not being carried out.
Recommendations x The Accounting Officer should ensure that user departments submit procurement and disposal work plans to the PDU prior to the start of the financial year. The work plan should be linked to the budget. x The role of certifying availability of funds should be carried out by the Accounting Officer in accordance with Regulation 14 (j). x Records of issue of bids should be maintained as well as record of bid opening/attendance in accordance with Regulations 66 (4) & 70 (5) respectively. x The evaluation criteria should always be clearly stated in the bid document in accordance to Regulation 71 (2) of the PPDA LG Regulations, 2006. x Each contract should have a supervisor appointed in accordance with regulation 105 (1). A record of appointment of the supervisor should also be on file. x Delegation of functions should be undertaken in accordance with Regulation 29. Record of delegation of functions should be maintained by the PDU. x Contracts whose value is 50 million and above should get prior approval from the Solicitor General. x The Accounting Officer should ensure that the Procurement and Disposal Unit (PDU) is staffed at an appropriate level.
Procurement Audit of Jinja District Local Government (2007/08) The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization No. Percentage Value (Ushs) Percentage High Risk 14 47% 492,307,324 50%
Medium Risk 09 30% 308,189,200 31% Low Risk 7 23% 189,528,450 19% Satisfactory 0 0% - 0% Total 30 100% 990,024,974/= 100%
Key Findings x The procurement plan was drawn. However, there was no relationship between the approved budget and the procurement plan as required LG (PPDA) Reg.62 (2). x Majority of the cases seen lacked evidence of confirmation of funding by the Accounting Officer. x The audit revealed that some companies on the pre qualified list enjoyed a lion’s share of the contracts awarded under Selective National Bidding. e.g. M/s Nsusen Motors Garage. x The composition of the evaluation team(s) was constant e.g all water projects had only three members evaluating over 8 categories of procurements with over 5 bids each. The District Engineer communicated award without delegated authority from AO e.g in a letter dated 19/7/2007 to M/s Casper Investments and Construction Co. x There was no contract implementation plan made for all construction works audited contrary to Regulation 119(3) of Local Government (PPDA) Regulations 2006. No contract managers were appointed contrary to LG (PPDA) Reg.119. x Records on procurement activities are not kept in accordance with the LG (PPDA) Reg.46.
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Page 169 of 179 x There was no evidence seen on file that entity received the necessary approvals from CC regarding approval of the bidding documents, procurement method and procurement notice. The CC minutes, did not state conclusively the recommendations of the meetings contrary to LG (PPDA) 17.
Recommendations: xx ThereThe was AO no should evidence ensure seen that on the file procurement that entity received work plan the isnecessary integrated appr intoovals the from annual CC budgetregarding in approvalaccordance of the with bidding LG/PPDA documents, regulation procurement 62(2). method and procurement notice. The CC minutes, x didThe not Head state PDUconclusively should ensure the recommendations that the pre-qualificati of the meetingson list is putcontrary into full to LG use (PPDA) and providers 17. rotated in accordance to LG (PPDA) regulation 38(2) and (5) (b). xRecommendations:The Head PDU should ensure that bid documents have a detailed evaluation criteria which should x beThe followed AO should by the ensure Evaluation that theCommittees. procurement work plan is integrated into the annual budget in x Theaccordance Accounting with LG/PPDA Officer should regulation put in 62(2). place a contract monitoring mechanism and that contract x managersThe Head are PDU appointed should ensurein accord thatance the withpre-qualificati Regulationson 258list isof put PPDA. into full use and providers rotated x Allin accordance records on toprocurement LG (PPDA) should regulation be kept 38(2) on fileand in (5) accordance (b). to Reg. 46 (3) and Reg.119. x x TheThe ChairmanHead PDU CC should and ensure members that of bid CC documents should ensure have thata detailed that all evaluation procurements criteria go which through should the properbe followed procedures by the and Evaluation met the necessCommittees.ary conditions before approval. x The Accounting Officer should put in place a contract monitoring mechanism and that contract managers are appointed in accordance with Regulations 258 of PPDA. x All records on procurement should be kept on file in accordance to Reg. 46 (3) and Reg.119. x The Chairman CC and members of CC should ensure that that all procurements go through the proper procedures and met the necessary conditions before approval.
Procurement audit of Amnesty Commission
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Procurement audit of AmnestyNumber Commission categorization Value categorization Risk Category The Authority sampled 30 procurementNo. actionPercentage files and below Value is the (Ushs) summary Percentage of performance of the Highentity: risk 2 7% 9,050,000 10.80% Medium risk 9 30% 46,197,100 55.14% Number categorization Value categorization LowRisk risk Category 5 16% 7,098,572 8.47% No. Percentage Value (Ushs) Percentage Satisfactory 14 47% 21,439,800 25.59% High risk 2 7% 9,050,000 10.80% TotalMedium risk 309 100.0%30% 83,785,47246,197,100 100.0% 55.14% Low risk 5 16% 7,098,572 8.47% KeySatisfactory Findings 14 47% 21,439,800 25.59% All procurement requisitions forms were approved. However, it was noted that the HPDU initiated all procurementsTotal and not the user 30depart ment contrary100.0% to the Act 34(1)(b).83,785,472 100.0% The direct procurement was used without clear justification and relevant approval. x In most cases the quotations were received on pro-forma invoices without using the SBDs. ThereKey Findings was no single instance where bid issue was recorded contrary to regulation 146 (3). xAllThe procurement CC comprises requisitions only three forms members were contrary approved. to PPDAHowever, Act itsection was noted 29. that the HPDU initiated all procurements and not the user department contrary to the Act 34(1)(b). RecommendationsThe direct procurement was used without clear justification and relevant approval. x TheIn most Accounting cases the Officerquotations should were ensurereceived that on pro-forma the user departmentinvoices without heads using approve the SBDs. the procurement Thererequisition was no formsingle not instance the PDU. where bid issue was recorded contrary to regulation 146 (3). x DirectThe CC procurements comprises only should three bemembers clearly contrary justified to and PPDA approved Act section by the 29. CC and Accounting Office as stipulated by Regulation 106 of the PPDA Regulations, 2003. Recommendations Head PDU should ensure that all procedures related to solicitation of bids, including the issuance, receiptThe Accounting and opening Officer of bids, should are appropriately ensure that recorded the user using department the relevant heads PP approve Forms (PP the Form procurement 30, 31, 34,requisition 35). form not the PDU. Page 170 of 179 TheDirect AC procurements should consider should increasing be clearly the justifiemembershipd and of approved the CC byin theorder CC to andavoid Accounting quorum issues Office and as enhancestipulated completeness by Regulation of 106 the of CC the independentPPDA Regulations, opinion 2003. and should get involved in the procurement processHead PDU as is shouldrequired ensure under thatSection all procedures29 off PPDA relate Act.d to solicitation of bids, including the issuance, Page 170 of 179 Procurement audit of Capital Markets Authority Page 170 of 179 The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 1 3% 7,896,000= 3% Medium risk 23 77% 158,251,450= 59% Low risk 6 20% 99,984,572= 38% Satisfactory 0 0% 0 0% Total 30 100% 266,132,022= 10%0 Key Findings x In a number of instances, some firms that were awarded contracts with the PDE were not pre- qualified. x Procurement action files were incomplete contrary to Reg. 90 and 91. x In some instances some of the firms the PDE dealt with were not registered companies. x There was no evidence of appointment of contract managers for procurements that required close supervision contrary to section 259 of the PPDA Regulations. x Some procurements were undertaken without the involvement of the Contracts Committee. x In a number of incidences evaluation teams were not duly appointed to conduct evaluation. x There were instances where contracts were never subjected to competition.
Recommendations x The PDE should endeavour to utilize the services of prequalified firms and can be updated as provided in regulation 126(6) 0f the PPDA regulations, 2003. x The CC should always formally appoint contract managers even when they are user departments in order to enhance effective contract management as provided in regulation 259 of the PPDA regulations, 2003. x The Head PDU should seek authority of the CC before they conduct any procurements. x The Secretary to the CC is advised to always record all proceedings of the CC as provided in regulation 53 (2),(c) and (4) of the PPDA regulations, 2003. x The PDE is encouraged to subject their procurements to competition as stipulated in regulation 85 of the PPDA regulations, 2003. x For all contracts for long term service provision, the PDE should always have contract managers appointed as stipulated in regulation 259 of the PPDA Regulations. x The Head PDU should ensure that documents are kept in accordance with regulation 90 & 91 of the PPDA Regulation. x The User Departments should always formally nominate / appoint contract managers even when they are user departments in order to enhance effective contract management as provided in regulation 259 (1) of the PPDA Regulations, 2003. x The Head PDU should always make sure that evaluation teams sign the code of ethics as stipulated in regulation 169(9).
Page 171 of 179 receipt and opening of bids, are appropriately recorded using the relevant PP Forms (PP Form 30, 31, 34, 35). The AC should consider increasing the membership of the CC in order to avoid quorum issues and enhance completeness of the CC independent opinion and should get involved in the procurement process as is required under Section 29 off PPDA Act.
Procurement audit of Capital Markets Authority
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 1 3% 7,896,000= 3% Medium risk 23 77% 158,251,450= 59% Low risk 6 20% 99,984,572= 38% Satisfactory 0 0% 0 0% Total 30 100% 266,132,022= 10%0 Key Findings x In a number of instances, some firms that were awarded contracts with the PDE were not pre- qualified. x Procurement action files were incomplete contrary to Reg. 90 and 91. x In some instances some of the firms the PDE dealt with were not registered companies. x There was no evidence of appointment of contract managers for procurements that required close supervision contrary to section 259 of the PPDA Regulations. x Some procurements were undertaken without the involvement of the Contracts Committee. x In a number of incidences evaluation teams were not duly appointed to conduct evaluation. x There were instances where contracts were never subjected to competition.
Recommendations x The PDE should endeavour to utilize the services of prequalified firms and can be updated as provided in regulation 126(6) 0f the PPDA regulations, 2003. x The CC should always formally appoint contract managers even when they are user departments in order to enhance effective contract management as provided in regulation 259 of the PPDA regulations, 2003. x The Head PDU should seek authority of the CC before they conduct any procurements. x The Secretary to the CC is advised to always record all proceedings of the CC as provided in regulation 53 (2),(c) and (4) of the PPDA regulations, 2003. x The PDE is encouraged to subject their procurements to competition as stipulated in regulation 85 of the PPDA regulations, 2003. x For all contracts for long term service provision, the PDE should always have contract managers appointed as stipulated in regulation 259 of the PPDA Regulations. x The Head PDU should ensure that documents are kept in accordance with regulation 90 & 91 of the PPDA Regulation. x The User Departments should always formally nominate / appoint contract managers even when they are user departments in order to enhance effective contract management as provided in regulation 259 (1) of the PPDA Regulations, 2003. x The Head PDU should always make sure that evaluation teams sign the code of ethics as stipulated in regulation 169(9).
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Page 171 of 179 Procurement audit of Uganda Printing and Publishing Corporation
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 19 63.33% 904,998,291 91.49% Medium risk 9 30% 81,140,021 8.20% Low risk 2 6.67% 3,026,755 0.31% Satisfactory 0 0 0 0 Total 30 100% 989,165,067 100%
Key Findings x No annual procurement plan was prepared for the period under review by the PDE. All procurements were made on an adhoc basis. Due to lack of procurement plans wrong procurement methods were used as noted in 12 cases audited. x The wrong procurement methods were used disregarding the thresholds as required by Regulation 106(4). x No evaluation minutes were availed to the audit team for all the 30 cases audited to show that evaluations are prepared containing all essential information. x For the period under review there were no contract Managers appointed for each of the contracts the PDE entered into, no contract monitoring of whatever nature employed x The CC for the period under review were nominated by the Board of UPPC but lacked approval of the PS/ST.
Recommendations x The AO should ensure that the PDU prepares the entity’s procurement plan in accordance with Regulations 96-98. x The PDU and CC should ensure that right procurement methods are used in accordance with Regulation 106 taking into account the threshold. x The PDU should ensure that evaluation minutes are attached to the evaluation report in accordance with Regulation 170(2)(i), 171(5). x The head PDU should ensure that evaluation of bids is conducted in accordance with PPDA Regulations 168-171. x The Contract Managers should always ensure that contract variations are handled in accordance with the contract and Regulation 261. x The AO should seek approval of the CC from the PS/ST in accordance with Regulation 45(3).
Procurement audit of Uganda Wildlife Authority The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Risk Category Number categorization Value categorization
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Page 172 of 179 Procurement audit of Uganda Printing and Publishing Corporation
The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 19 63.33% 904,998,291 91.49% Medium risk 9 30% 81,140,021 8.20% Low risk 2 6.67% 3,026,755 0.31% Satisfactory 0 0 0 0 Total 30 100% 989,165,067 100%
Key Findings x No annual procurement plan was prepared for the period under review by the PDE. All procurements were made on an adhoc basis. Due to lack of procurement plans wrong procurement methods were used as noted in 12 cases audited. x The wrong procurement methods were used disregarding the thresholds as required by Regulation 106(4). x No evaluation minutes were availed to the audit team for all the 30 cases audited to show that evaluations are prepared containing all essential information. x For the period under review there were no contract Managers appointed for each of the contracts the PDE entered into, no contract monitoring of whatever nature employed x The CC for the period under review were nominated by the Board of UPPC but lacked approval of the PS/ST.
Recommendations x The AO should ensure that the PDU prepares the entity’s procurement plan in accordance with Regulations 96-98. x The PDU and CC should ensure that right procurement methods are used in accordance with Regulation 106 taking into account the threshold. x The PDU should ensure that evaluation minutes are attached to the evaluation report in accordance with Regulation 170(2)(i), 171(5). x The head PDU should ensure that evaluation of bids is conducted in accordance with PPDA Regulations 168-171. x The Contract Managers should always ensure that contract variations are handled in accordance with the contract and Regulation 261. x The AO should seek approval of the CC from the PS/ST in accordance with Regulation 45(3).
Procurement audit of Uganda Wildlife Authority The Authority sampled 30 procurement action files and below is the summary of performance of the entity: No. Percentage Value (Ushs) Percentage HighRisk Categoryrisk Number5 categorization17% 163,112,009 Value categorization 0.7% Medium risk No.4 Percentage13% Value63,715,394 (Ushs) Percentage 0.3% Page 172 of 179 163,112,009 0.7% HighLow riskrisk 145 47%17% 1,832,301,987 7.3% 63,715,394 0.3% MediumSatisfactory risk 47 13%23% 22,993,290,859 91.8% 1,832,301,987 7.3% LowTotal risk 1430 100%47% 25,052,420,249 100% Satisfactory 7 23% 22,993,290,859 91.8% TotalKey Findings 30 100% 25,052,420,249 100% x Not all procurement conducted were in procurement plan contrary to Regulation 96. x Where as the entity complied with Regulations 168 and 169 regarding evaluation of bids, there Key Findings where no copy of evaluation report was availed to the audit team making it difficult to assess how x Not all procurement conducted were in procurement plan contrary to Regulation 96. the evaluation was done, e.g in the procurement of 300 sets of automobile tyres and tubes worth x Whereshs 106,920,000. as the entity complied with Regulations 168 and 169 regarding evaluation of bids, there where no copy of evaluation report was availed to the audit team making it difficult to assess how x Where as over all the entity endeavored to keep documents safely, there was lack of key the evaluation was done, e.g in the procurement of 300 sets of automobile tyres and tubes worth documents in three cases (the ones ranked high risk),it was also not easy to locate others in time shs 106,920,000. contrary to sections 41 and 56(1) (a) (b) of the PPDA Act 2003. x RecommendationsWhere as over all the entity endeavored to keep documents safely, there was lack of key documents in three cases (the ones ranked high risk),it was also not easy to locate others in time x The AO and Head PDU should ensure that there is always in place a procurement plan and that contrary to sections 41 and 56(1) (a) (b) of the PPDA Act 2003. all procurements are in accordance with the plan in line with Regulations 96 and 97. Recommendations x The CC and HPDU should always ensure that bid evaluation is done in accordance with x The AO and Head PDU should ensure that there is always in place a procurement plan and that Regulations 168 and 169. all procurements are in accordance with the plan in line with Regulations 96 and 97. x The CC and PDU should always ensure procurement documentation is kept under lock and key in x The CC and HPDU should always ensure that bid evaluation is done in accordance with accordance to 41 and 56(1) (a) (b) of the PPDA Act 2003. Regulations 168 and 169. x The AO and Head PDU should in accordance with sections 41 and 56(1) ensure that records are x The CC and PDU should always ensure procurement documentation is kept under lock and key in properly managed. accordance to 41 and 56(1) (a) (b) of the PPDA Act 2003. x ProcurementThe AO audit and ofHead Ministry PDU should of Internal in accordance Affairs with sections 41 and 56(1) ensure that records are properly managed. The Authority sampled 60 procurement action files and below is the summary of performance of the Procuremententity: audit of Ministry of Internal Affairs The Authority sampled 60 procurement action files and below is the summary of performance of the Number categorization Value categorization entity:Risk Category No. Percentage Value (Ushs) Percentage Number28 categorization 46.67% 337,467,596 Value categorization 18.02% RiskHigh Categoryrisk Medium risk No.10 Percentage 16.67% Value 461,567,736 (Ushs) Percentage 24.66% 28 46.67% 337,467,596 18.02% HighLow riskrisk 13 21.66% 405,366,898 21.66% 10 16.67% 461,567,736 24.66% MediumSatisfactory risk 9 15% 667,461,000 35.66% 13 21.66% 405,366,898 21.66% LowTotal risk 60 100% 1,871,863,230 100% Satisfactory 9 15% 667,461,000 35.66% Total 60 100% 1,871,863,230 100%
Key Findings x The Entity didn’t operate its procurement processes on the basis of a Procurement Plan for the period under review apart from the JLOS assistance program. User departments did not submit their Key Findings plans to the PDU for compilation. x The Entity didn’t operate its procurement processes on the basis of a Procurement Plan for the period under review apart from the JLOS assistance program. User departments did not submit their plans to the PDU for compilation. Page 173 of 179
Page 173 of 179 Page 173 of 179 x No aggregation was done for similar transactions such as the procurement of stationery to benefit from economies of scale. x The availed list of providers was unnecessarily too big such that some pre-qualified providers were never invited to participate in the bidding process x There are some instances where the direct procurement method was used without justification e.g during the renovation of Mbarara Regional Office worth UGX. 7,096,650. x Some procurements lacked AO’s confirmation of availability of funds. x Among the cases reviewed, the CC did not approve the bid documents for some procurements. x There was no evidence of appointment of Contract Managers by User Departments assigned to supervise big procurements. Contract management documents were scattered in different departments.
Recommendations x The entity should plan its procurements as required under Section 58 of the PPDA Act. x User departments should prepare work plans in accordance with Sections 34 (2) and Reg. 96-105 of the PPDA Act, 2003. x The PDE should rotate the bidders on the shortlist to provide fair and equal opportunities to all bidders on the shortlist in accordance with Regulation 142(3) (a) and (b). x The Head PDU and CC should ensure that appropriate methods of procurement are applied in compliance with Regulation 106 and PPDA Guideline 1/2003. x The AO should ensure that funds are confirmed on all procurement requirements in accordance with 105. x The AO and Head PDU should ensure that user departments maintain the contract management records in accordance to PPDA Regulation 91
Procurement audit of Uganda National Examination Board The Authority sampled 30 procurement action files and below is the summary of performance of the entity:
Number categorization Value categorization Risk Category No. Percentage Value (Ushs) Percentage High risk 6 20% 72,476,186.40 3.57% Medium risk 3 10% 141,335,148 6.96% Low risk 17 57% 1,758,777,574 86.60% Satisfactory 4 13% 58,442,929 2.88% Total 30 100 2,031,031,837.40 100
Key Findings x Contrary to PPDA Regulations 96(1), (2) and (3) UNEB did not have a Procurement Plan. x Direct procurement was used without appropriate justification contrary to paragraphs 6(1)(a) (iii),(iv),(v) of the fourth schedule to the PPDA Act 2003. x The entity engaged pre-qualified suppliers who sometimes were not on the pre-qualification list e.g. Braille Materials and meals for the exam printing staff. x Five procurement actions were not provided to the audit team. x The entity does not have an elaborate system for contract management, goods inspection and receipt contrary to PPDA Regulations 258(1),259 (1)and 260.
Recommendations x In accordance with PPDA Regulations 96(1),(2) and (3), the entity should always make procurement plans on which all procurements should be based. Page 174 of 179
Page 174 of 179 x Direct procurements should be clearly justified in accordance with paragraphs 6(1) (a) (iii), (IV), (v) of the fourth schedule to the PPDA Act 2003. x The HPDU should ensure that the procurement action files are kept in accordance with Reg. 90 and 91. xx TheDirect Entity procurements should ensure should that be clearly it pre-qualifies justified in for accordanceaccordance all required withwith categories paragraphsparagraphs and 6(1)6(1) needs (a)(a) (iii), (iii), to avoid (IV),(IV), procuring(v)(v) ofof thethe fourthfourthout side scheduleschedule the pre-qualified toto thethe PPDAPPDA list, ActAct and 2003.2003. in accordance with Regulation 126(6). xx InThe accordance HPDU should with regulationensure that 259 the andprocurement 260, the entity actiontion should filesfiles areappointare keptkept a inin contract accordanceaccordance manager withwith Reg.Reg. 9090 andand 91.91. x The Entity should ensure that it pre-qualifies for all required categories and needs to avoid procuring out side the pre-qualified list, and in accordance with Regulation 126(6). x InIn accordanceaccordance withwith regulationregulation 259259 andand 260,260, ththee entityentity shouldshould appointappoint aa contractcontract managermanager
APPENDIX 2: SCHEDULE OF TRAINING CONDUCTED BY PPDA IN 2008/2009 FINANCIAL YEAR
S/no Activity/PDE Modules/Areas Category of Participants Number APPENDIX 2: SCHEDULE OF TRAININGcovered CONDUCTED BY PPDA IN 2008/2009 FINANCIALtrained YEAR1. 13 Regional Referral Procurement of drugs 39 Hospitals and S/no representatives Activity/PDE of MOH, Modules/Areas Category of Participants Number NDA, NMS, and JMS coveredcovered trainedtrained 1. 13 Regional Referral Procurement of drugs 39 (SupplyHospitals Driven) and 2. 11representativesrepresentatives LGs which included ofof MOH,MOH, Public Procurement 66 Wakiso,NDA, NMS, Nakasongora, and JMS and Disposal Nakaseke, Kalangala, framework, Kyenjojo,(Supply(Supply Driven)Driven) Kiboga, Luwero, Procurement Planning, 2. Mukono,11 LGs which Kayunga, included Mpigi, the PublicPublic Procurement ProcurementProcurement 66 andWakiso, Masaka Nakasongora, process,andand DisposalDisposal Evaluation of Nakaseke, Kalangala, bids,framework,framework, and Contract .Kyenjojo, (Supply Driven) Kiboga, Luwero, management.Procurement Planning, 3. ProcurementMukono, Kayunga, Cadre Mpigi, Forum Keythethe ProcurementProcurement issues in the Procurement Officers 88 forandand 88MasakaMasaka Central Government procurementprocess, Evaluation and of and Statutory bodies disposalbids, and process, Contract .. (Supply(Supply Driven)Driven) Procurementmanagement. planning. 3. (SupplyProcurement Driven) Cadre Forum DesignKey issues and inuse the of Procurement Officers 88 forfor 88 88 Central Central Government Government Evaluationprocurement criteria and in andand StatutoryStatutory bodiesbodies thedisposal procurement process, of goods,Procurement Works planning. and (Supply(Supply Driven)Driven) Services,Design and Contract use of and contractsEvaluation Management criteria in withthethe procurementprocurement focus on ofof frameworkgoods, Works and contracting.Services, Contract and st 4. 1 Procurement Cadre for Publiccontractscontracts ManagementManagement Procurement Procurement Officers 171 Procurement Officers forum process,with focus Evaluation on of for 93 Local Governments bidsframeworkframework and Procurement (Supply Driven) planning.contracting.contracting. S/no4. Activity/PDE1stst Procurement Procurement Cadre Cadre for for Modules/AreasorderPublic and collection Procurement of CategoryProcurement of ParticipantsOfficers Number171 (SupplyProcurement Driven) Officers forum coveredrevenueprocess, from Evaluation lorry, of trained 5. 2forfornd 9393Procurement LocalLocal GovernmentsGovernments Cadre Procurementpick-upbids and and Procurement buses of Procurement Officers 90 forum(Supply(Supply for Driven)Driven) Local Management,parks,planning. Procurement Control of S/no Governments Activity/PDE andmanagementModules/Areas Maintenance of of Category of Participants Number Marketscoveredcovered trainedtrained 5. 2ndnd ProcurementProcurement CadreCadre PageProcurement175 of 179of Procurement Officers 90 forumforum forfor LocalLocal Management, Control Governments andand MaintenanceMaintenance ofof
6. Workshops for MOH, Page Principles175 ofof of179 Public PDU staff, Contracts 21 MOLG, MOES, MWE- procurement. Committee, Users Under BELGO Pre-qualificationPage 175 of 179 and (Supply Driven) the Bidding process. Evaluation of bids. Contracts and Contract management 7. Workshop for KCC under Principles of Public Council Executive 70 BELGO procurement and Members, Accounting disposal, Pre- Officer (Supply Driven) qualification and the PDU staff,, Contracts bidding process, Committee members , Disposal of Public 6 User Dept and RDC Assets, Ethics in Public procurement and Disposal, International Procurement, E- Procurement strategies 8. Workshop for Bundibugyo Principles of Public Council Executive 46 & Kasese-Under BELGO Procurement and Members, Accounting (Supply Driven) Disposal ,Pre- Officer qualification and the bidding process, PDU staff, Contracts Disposal of Public Committee members, assets, Ethics in Public Users and RDCs Procurement and disposal, International Procurement, E-Procurement strategies
S/no Activity/PDE Modules/Areas Category of Participants Number covered trained 9. MOH,MOLG,MOES,MWE- Legal framework, Public Ministers, Permanent & 13 Under BELGO(Supply Driven) Procurement and Under Secretaries, Users Disposal framework 10. Uganda Revenue Authority Legal Framework, PDU 17 (URA) Principles of Public ( Demand driven ) Procurement and Disposal, Public
Page 176 of 179 x Direct procurements should be clearly justified in accordance with paragraphs 6(1) (a) (iii), (IV), (v) of the fourth schedule to the PPDA Act 2003. x The HPDU should ensure that the procurement action files are kept in accordance with Reg. 90 and 91. x The Entity should ensure that it pre-qualifies for all required categories and needs to avoid procuring out side the pre-qualified list, and in accordance with Regulation 126(6). x In accordance with regulation 259 and 260, the entity should appoint a contract manager
APPENDIX 2: SCHEDULE OF TRAINING CONDUCTED BY PPDA IN 2008/2009 FINANCIAL YEAR
S/no Activity/PDE Modules/Areas Category of Participants Number covered trained 1. 13 Regional Referral Procurement of drugs 39 Hospitals and representatives of MOH, NDA, NMS, and JMS
(Supply Driven) 2. 11 LGs which included Public Procurement 66 Wakiso, Nakasongora, and Disposal Nakaseke, Kalangala, framework, Kyenjojo, Kiboga, Luwero, Procurement Planning, Mukono, Kayunga, Mpigi, the Procurement and Masaka process, Evaluation of bids, and Contract . (Supply Driven) management. 3. Procurement Cadre Forum Key issues in the Procurement Officers 88 for 88 Central Government procurement and and Statutory bodies disposal process, Procurement planning. (Supply Driven) Design and use of Evaluation criteria in the procurement of goods,order and Works collection and of (Supply Driven) Services,revenue from Contract lorry, and contractspick-uporder and and Managementcollection buses of (Supply Driven) withparks,revenue focus Procurement from on lorry, of frameworkmanagementpick-up and buses of contracting.Marketsparks, Procurement of 4. 1st Procurement Cadre for Publicmanagement Procurement of Procurement Officers 171 Procurement Officers forum process,Markets Evaluation of for 93 Local Governments bids and Procurement (Supply Driven) planning. S/no6. Activity/PDEWorkshops for MOH, Modules/Areas Principles of Public CategoryPDU staff, of Participants Contracts 21 Number MOLG, MOES, MWE- coveredprocurement. Committee, Users trained 5.6. 2UnderWorkshopsnd Procurement BELGO for Cadre MOH, ProcurementPre-qualification Principles ofof Public and ProcurementPDU staff, Officers Contracts 21 90 forum(SupplyMOLG, for Driven) Local MOES, MWE- Management,theprocurement. Bidding process. Control Committee, Users GovernmentsUnder BELGO andEvaluationPre-qualification Maintenance of of bids. and (Supply Driven) Contractsthe Bidding process. and PageContractEvaluation175 managementof 179 of bids. 7. Workshop for KCC under PrinciplesContracts of Public and Council Executive 70 BELGO procurementContract management and Members, Accounting 7. Workshop for KCC under disposal,Principles Pre- of Public Officer Council Executive 70 (SupplyBELGO Driven) qualificationprocurement and the PDUMembers, staff,, Accounting Contracts biddingdisposal, process, Pre- CommitteeOfficer members , (Supply Driven) Disposalqualification of Public and the 6PDU User staff,, Dept Contracts and RDC Assets,bidding Ethicsprocess, in Committee members , PublicDisposal procurement of Public 6 User Dept and RDC andAssets, Disposal, Ethics in InternationalPublic procurement Procurement,and Disposal, E- ProcurementInternational strategies 8. Workshop for Bundibugyo PrinciplesProcurement, of Public E- Council Executive 46 & Kasese-Under BELGO Procurement andstrategies Members, Accounting 8. (SupplyWorkshop Driven) for Bundibugyo DisposalPrinciples ,Pre- of Public OfficerCouncil Executive 46 & Kasese-Under BELGO qualificationProcurement and the Members, Accounting (Supply Driven) biddingDisposal process, ,Pre- PDUOfficer staff, Contracts Disposalqualification of Public and the Committee members, assets,bidding Ethics process, in Public UsersPDU staff, and RDCsContracts ProcurementDisposal of Public and Committee members, disposal,assets, Ethics International in Public Users and RDCs Procurement,Procurement and E-Procurementdisposal, International strategiesProcurement, E-Procurement strategies
S/no Activity/PDE Modules/Areas Category of Participants Number covered trained 9.S/no MOH,MOLG,MOES,MWE- Activity/PDE LegalModules/Areas framework, Public Ministers,Category Permanent of Participants & 13 Number Under BELGO(Supply Driven) Procurementcovered and Under Secretaries, Users trained 9. MOH,MOLG,MOES,MWE- DisposalLegal framework, framework Public Ministers, Permanent & 13 10. UgandaUnder BELGO(Supply Revenue Authority Driven) LegalProcurement Framework, and PDUUnder Secretaries, Users 17 (URA) PrinciplesDisposal framework of Public 10. (Uganda Demand driven Revenue ) Authority ProcurementLegal Framework, and PDU 17 (URA) Disposal,Principles of Public ( Demand driven ) Procurement Planning, and PagePreparationDisposal,176 of of 179 Statement Public of Requirements, PageStandard176 of 179 Bidding Documents (SBDs), Pre- qualification and the Bidding process, Contracts and Contracts Management International Procurement, Disposal of Public Assets 11. Presidents office( ISO) Legal framework Members of Contract 30 ( Demand driven ) Committee, Procurement Page 176 of 179 and Disposal Unit (PDU) and User Department. 12. E. African Comm. Affairs Induction of new staff in Newly recruited staff 25 the Procurement process in Government ( Demand driven ) 13. Kyambogo University Pre-Qualification and the Procurement Students 161 Procurement students bidding process and Disposal of Public ( Demand driven ) Assets.
14. Busitema University Legal framework, Pre- Accounting officer 42 ( Demand driven ) Qualification and the Members of Contract bidding process ,and Committee, PDU Public Procurement Users Planning 15. Comboni College Procurement and Contract Committee 24 Disposal Guidelines for members, users and ( Demand driven ) Schools members of PDU 16. National Drug Authority Legal framework, Public Board Members 35 Procurement and Top Management ( Demand driven ) Disposal Principles 17. Parliamentary Commission Public Procurement Users, PDU 15 ( Demand driven ) Planning 18. 5 Uganda College of Prequalification, Public Contracts Committee 69 Commerce Institutions Procurement and members and users ( Demand driven ) disposal principles, Contracts and contract Management, Disposal of Public Assets, Ethics in Public Procurement 19. Ministry of Defence Public procurement Users, PDU Staff, 55 ( Demand driven ) planning ,Bid evaluation, Members of contracts Contract design and committee. management
S/no Activity/PDE Modules/Areas Category of Participants Number covered trained 20. Ministry of Water and Legal framework Users, and PDU 61 Environment ,Disposal of public ( Demand driven ) assets, Evaluation of Bids, Disposal of Public Assets 21. Office of the Auditor General Legal framework, External auditors from OAG 90 Page 177 of 179 x Direct procurements should be clearly justified in accordance with paragraphs 6(1) (a) (iii), (IV), (v) of the fourth schedule to the PPDA Act 2003. x The HPDU should ensure that the procurement action files are kept in accordance with Reg. 90 and 91. x The Entity should ensure that it pre-qualifies for all required categories and needs to avoid procuring out side the pre-qualified list, and in accordance with Regulation 126(6). x In accordance with regulation 259 and 260, the entity should appoint a contract manager
APPENDIX 2: SCHEDULE OF TRAINING CONDUCTED BY PPDA IN 2008/2009 FINANCIAL YEAR
S/no Activity/PDE Modules/Areas Category of Participants Number covered trained 1. 13 Regional Referral Procurement of drugs 39 Hospitals and representatives of MOH, NDA, NMS, and JMS
(Supply Driven) 2. 11 LGs which included Public Procurement 66 Wakiso, Nakasongora, and Disposal Nakaseke, Kalangala, framework, Kyenjojo, Kiboga, Luwero, Procurement Planning, Mukono, Kayunga, Mpigi, the Procurement and Masaka process, Evaluation of bids, and Contract . (Supply Driven) management. 3. Procurement Cadre Forum Key issues in the Procurement Officers 88 for 88 Central Government procurement and and Statutory bodies disposal process, Procurement planning. (Supply Driven) Design and use of Evaluation criteria in theProcurement procurement Planning, of goods,Preparation Works of Statementand Services,ofProcurement Contract Requirements, Planning, and contractsStandardPreparation Management of Statement Bidding withDocumentsof focus Requirements, (SBDs),on Pre- frameworkqualificationStandard and Bidding the BiddingDocuments (SBDs), process, Pre- contracting.Contracts and Contracts 4. 1st Procurement Cadre for Publicqualification Procurement and the Procurement Officers 171 ManagementBidding process, Procurement Officers forum process,InternationalContracts Evaluation and Contracts of for 93 Local Governments bidsProcurement,Management and Procurement Disposal (Supply Driven) planning.ofInternational Public Assets S/no11. Activity/PDEPresidents office( ISO) Modules/AreasLegalProcurement, framework Disposal CategoryMembers of ofParticipants Contract Number30 ( Demand driven ) coveredof Public Assets Committee, Procurement trained 5.11. 2 Presidentsnd Procurement office( ISO)Cadre ProcurementLegal framework of ProcurementandMembers Disposal ofOfficers Unit Contract (PDU) 30 90 forum( Demand for driven Local ) Management, Control andCommittee, User Department. Procurement 12. GovernmentsE. African Comm. Affairs andInduction Maintenance of new staff of in Newlyand Disposal recruited Unit staff (PDU) 25 the Procurement process and User Department. 12. E. African Comm. Affairs PageinInduction Government175 ofof new 179 staff in Newly recruited staff 25 ( Demand driven ) the Procurement process 13. Kyambogo University Pre-Qualificationin Government and the Procurement Students 161 Procurement( Demand driven students ) bidding process and 13. Kyambogo University DisposalPre-Qualification of and Public the Procurement Students 161 (Procurement Demand driven students ) Assets.bidding process and Disposal of Public 14. Busitema( Demand Universitydriven ) LegalAssets. framework, Pre- Accounting officer 42 ( Demand driven ) Qualification and the Members of Contract 14. Busitema University biddingLegal framework, process ,andPre- Committee,Accounting officerPDU 42 ( Demand driven ) PublicQualification Procurement and the UsersMembers of Contract Planning bidding process ,and Committee, PDU 15. Comboni College Procurement and Contract Committee 24 Public Procurement Users DisposalPlanning Guidelines for members, users and 15. (Comboni Demand Collegedriven ) SchoolsProcurement and membersContract of PDU Committee 24 16. National Drug Authority LegalDisposal framework, Guidelines Public for Boardmembers, Members users and 35 ( Demand driven ) ProcurementSchools and Topmembers Management of PDU 16. (National Demand Drug driven Authority ) DisposalLegal framework, Principles Public Board Members 35 17. Parliamentary Commission PublicProcurement Procurement and Users,Top Management PDU 15 ( Demand driven ) PlanningDisposal Principles 18.17. 5Parliamentary Uganda Commission College of Prequalification,Public Procurement Public ContractsUsers, PDU Committee 6915 Commerce( Demand driven Institutions ) ProcurementPlanning and members and users 18. (5 Demand Uganda driven College ) of disposalPrequalification, principles, Public Contracts Committee 69 Commerce Institutions ContractsProcurement and contract and members and users ( Demand driven ) Management,disposal principles, Disposal ofContracts Public Assets, and contract Ethics inManagement, Public Procurement Disposal 19. Ministry of Defence Publicof Public Assets, procurement Ethics Users, PDU Staff, 55 ( Demand driven ) planningin Public ,BidProcurement evaluation, Members of contracts 19. Ministry of Defence ContractPublic design procurement and committee.Users, PDU Staff, 55 ( Demand driven ) managementplanning ,Bid evaluation, Members of contracts Contract design and committee. S/no Activity/PDE Modules/Areasmanagement Category of Participants Number covered trained 20.S/no Ministry Activity/PDE of Water and LegalModules/Areas framework Users,Category and of PDU Participants 61Number Environment ,Disposalcovered of public trained 20. (Ministry Demand driven of ) Water and assets,Legal Evaluation framework of Users, and PDU 61 Environment Bids,,Disposal Disposal of of Public public ( Demand driven ) Assetsassets, Evaluation of 21. Office of the Auditor General LegalBids, Disposal fra ofmework, Public External auditors from OAG 90 Contracts and contract PageAssets177 of 179 21. (Office Demand of the driven Auditor ) General Management, Legal fra Legalmework, and External auditors from OAG 90 Compliance issues 22. Ministry of Health PagePublic177 procurement of 179 80 process, Public ( Demand driven ) procurement planning, Procurement Audit and Legal issues, Records Management 23. Directorate of Ethics New Public PDU,& Contracts 20 procurement and committee ( Demand driven ) disposal framework, Public procurement planning 24. Capital Markets Authority NewPage Public 177 of 179 Accounting Officer 15 Procurement and User departments ( Demand driven ) Disposal Framework CC members ,Preparation of Evaluation committees Statement of PDU requirements, Bid Evaluation, Contracts & Contract Management 25. National Forestry Authority New Public Members of contracts 40 Procurement and committees, staff of the ( Demand driven ) Disposal Framework, PDUs, and staff of user Preparation of departments Statement of requirements, Bid Evaluation, Contracts 26. National Agricultural New Public Procurement officers and 30 Research Organization Procurement and Contracts committee Disposal Framework , members ( Demand driven ) Procurement planning, Evaluation of bids, Standard Bid documents
27. National Medical Stores New Public User departments, 13 ( Demand driven ) Procurement and Members of contracts Disposal Framework Committee and staff with Emphasis on the from the Procurement roles and and Disposal Unit responsibilities of the key stakeholders in the PDE
Page 178 of 179 x Direct procurements should be clearly justified in accordance with paragraphs 6(1) (a) (iii), (IV), (v) of the fourth schedule to the PPDA Act 2003. x The HPDU should ensure that the procurement action files are kept in accordance with Reg. 90 and 91. x The Entity should ensure that it pre-qualifies for all required categories and needs to avoid procuring out side the pre-qualified list, and in accordance with Regulation 126(6). x In accordance with regulation 259 and 260, the entity should appoint a contract manager
APPENDIX 2: SCHEDULE OF TRAINING CONDUCTED BY PPDA IN 2008/2009 FINANCIAL YEAR
S/no Activity/PDE Modules/Areas Category of Participants Number covered trained 1. 13 Regional Referral Procurement of drugs 39 Hospitals and representatives of MOH, NDA, NMS, and JMS
(Supply Driven) 2. 11 LGs which included Public Procurement 66 Wakiso, Nakasongora, and Disposal Nakaseke, Kalangala, framework, Kyenjojo, Kiboga, Luwero, Procurement Planning, Mukono, Kayunga, Mpigi, the Procurement and Masaka process, Evaluation of bids, and Contract . (Supply Driven) management. 3. Procurement Cadre Forum Key issues in the Procurement Officers 88 for 88 Central Government procurement and and Statutory bodies disposal process, Procurement planning. (Supply Driven) Design and use of Evaluation criteria in the procurement of goods, Works and Services, Contract and contracts Management with focus on framework contracting. 4. 1st Procurement Cadre for Public Procurement Procurement Officers 171 Procurement Officers forum process, Evaluation of for 93 Local Governments bids and Procurement (Supply Driven) planning.Contracts and contract S/no Activity/PDE( Demand driven ) Modules/AreasManagement, Legal and Category of Participants Number coveredCompliance issues trained 5.22. 2Ministrynd Procurement of Health Cadre ProcurementPublic procurement of Procurement Officers 80 90 forum for Local Management,process, Public Control Governments( Demand driven ) andprocurement Maintenance planning, of Procurement Audit Pageand Legal175 ofissues, 179 Records Management 23. Directorate of Ethics New Public PDU,& Contracts 20 procurement and committee ( Demand driven ) disposal framework, Public procurement planning 24. Capital Markets Authority New Public Accounting Officer 15 Procurement and User departments ( Demand driven ) Disposal Framework CC members ,Preparation of Evaluation committees Statement of PDU requirements, Bid Evaluation, Contracts & Contract Management 25. National Forestry Authority New Public Members of contracts 40 Procurement and committees, staff of the ( Demand driven ) Disposal Framework, PDUs, and staff of user Preparation of departments Statement of requirements, Bid Evaluation, Contracts 26. National Agricultural New Public Procurement officers and 30 Research Organization Procurement and Contracts committee Disposal Framework , members ( Demand driven ) Procurement planning, Evaluation of bids, Standard Bid documents
27. National Medical Stores New Public User departments, 13 ( Demand driven ) Procurement and Members of contracts Disposal Framework Committee and staff with Emphasis on the from the Procurement roles and and Disposal Unit responsibilities of the key stakeholders in the PDE
Page 178 of 179
Page 178 of 179 S/no Activity/PDE Modules/Areas Category of Participants Number covered trained 28. Civil Aviation Authority New Public Members of contracts 56 Procurement and committee, staff of the ( Demand driven ) Disposal Framework PDUs, and user with Emphasis on the departments. roles and responsibilities of the key stakeholders in the PDE, 29. Dairy Development New Public Members of Contracts 5 Authority Procurement and Committee. Disposal Framework ( Demand driven ) with Emphasis on the roles and responsibilities of the key stakeholders in the PDE. 30. Posta Uganda. Public Procurement Users 26 and Disposal ( Demand driven ) Framework., Public Procurement Planning, Preparation of Statements of requirements, Prequalification and the bidding process ,Bid Evaluation, Contract and Contracts Management 31. Uganda National 70 Examinations Board ( Demand driven ) 32. Uganda Investment Public procurement Accounting Officer 29 Authority Legal framework and Contracts Committee the Procurement Members, PDU staff ( Demand driven ) process in and, User Departments Government. 33. Mandela National Stadium Public procurement Board members 14 ( Demand driven ) Legal framework and Accounting Officer the Procurement Contracts Committee process in Members Government. PDU staff and User Departments Total 1626
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