Report on Compliance Checks Undertaken on 120 Procuring and Disposing Entities
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REPORT ON COMPLIANCE CHECKS UNDERTAKEN ON 120 PROCURING AND DISPOSING ENTITIES 18 th September 2008 1 TABLE OF CONTENTS Page Acronyms 7 EXECUTIVE SUMMARY 1.0 INTRODUCTION 8 1.1 Background 8 1.2 Scope of the Complian ce Checks 8 1.3 Methodology used for the Compliance Checks 8 1.4 Time Frame 9 1.5 Limitations 10 2.0 MAIN FINDINGS 11 2.1 Entity Performance by Compliance Area 11 2.1.1 Procurement Structures 11 2.1.2 Procurement Planning 14 2.1.3 Solicitation and Bidding Procedures 16 2.1.4 Evaluation Procedures 18 2.1.5 Contract Award and Management 19 2.1.6 Reporting 21 2.1.7 Perf or mance of Contracts Committee s 24 2.1.8 Record Keeping 25 2.2 Overall Performance of Entities 28 2.2.1 Performance of Central Government PDEs 28 2.2.2 Performance of Local Government PDEs 28 2. 2. 3 Comparison of Performance of CG PDEs and LG PDEs under 29 Compliance Areas 3.0 COMPLIANCE RATINGS OF ENTITIES 32 3.1 Central Government Entities 32 3.1.1 Ministries 32 Ministry of Defence 32 Ministry of Energy and Mineral Development 36 Ministry of Finance, Planning & Economic Development 39 Ministry of Gender, Labour and Social Development 42 Ministry of Information and Communications Technology 45 Ministry of Internal Affairs 48 Ministry of Justice and Constitutional Affairs 52 Ministry of Lands, Housing and Urban Development 55 Ministry of Public Service 58 Ministry of Trade, Tourism and Industry 61 Ministry of Water and Environment 65 Ministry of Works and Transport 68 2 3.1.2 Government D epartments / Agencies 71 Auditor General 71 Co urts of Judicature 75 Directorate of Public Prosecutions 78 Inspectorate of Government 81 Internal Security Organisation 84 National Curriculum Development Centre 87 Office of the Prime Minister 90 Parliament of Uganda 93 Population Secretariat 97 Privatization Unit 101 Rural Electrification Agency 104 State House 107 Uganda Police 111 Uganda Prisons Service 114 3.1.3 Statutory Bodies 117 Capital Markets Authority 117 Cotton Development Organisation 120 Diary Development Authority 123 Electricity Regulatory Authority 126 National Environment Management Authority 129 National Forest Authority 132 National Planning Authority 135 Uganda Coffee Development Authority 138 Uganda Investment Authority 141 Uganda Revenue Authority 145 3.1.4 State Enterprises 148 Micro Finance Support Centre Ltd 148 National Housing and Construction Company Ltd 152 National Water and Sewerage Corporation Ltd 156 Post Bank (U) Ltd 159 Posta Uganda Ltd 162 Uganda Develop ment Bank 165 Uganda Electricity Distribution Company 169 Uganda Electricity Generation Company 172 Uganda Electricity Transmission Company 175 Uganda Printing and Publishing Corporation 178 Uganda Property Holdings Ltd 181 3.1.5 Commissions 185 Education Service Commission 185 Health Service Commission 188 Local Government Finance Commission 191 Public Service Commission 194 Uganda AIDS Commission 198 Uganda Communications Commission 201 3 Uganda Human Rights Commission 204 Uganda Insurance Commission 207 3.1.6 Regional Referral Hospitals 210 Arua Hospital 210 Gulu Hospital 213 Masaka Hospital 216 Mbale Hospital 220 Mulago Hospital 224 Soroti Hospital 227 3.1.7 Training Institution s 231 Gulu University 231 Kyambogo University 234 Law Development Centre 237 Makerere University Business School 241 Management Training and Advisory Centre 244 Uganda Management Institute 247 3.1.8 Councils 251 National Council for Children 251 National Council for Higher Education 254 National Council for Science and Technology 258 3.1.9 Boards 261 Uganda Export Promotion Board 261 Uganda National Examination Board 265 3.2 Local Government Entities 268 3.2.1 Districts 268 Adjumani District 268 Apac District 271 Budaka District 275 Bundibugyo District 279 Bushenyi District 282 Busia District 286 Gulu District 289 Hoima District 292 Iganga District 296 Isi ngiro District 300 Kabale District 30 4 Kalangala District 307 Kamwenge District 310 Kanungu District 313 Kapchorwa District 317 Kasese District 321 Kayunga District 32 5 4 Kibaale District 32 8 Kiboga District 332 Kiruhura District 33 6 Kisoro District 339 Luwero District 342 Masaka District 345 Mbale District 349 Moyo District 35 3 Mpigi District 35 6 Mubende District 359 Mukono District 363 Nakasongola District 366 Namutamba District 370 Nebbi District 374 Oyam District 37 8 Pader District 381 Pallisa District 384 Rukungiri District 388 Sembabule District 392 Wakiso District 395 3.2.2 Municipalities 39 9 Arua Municipality 399 Entebbe Municipality 402 Fort Portal Municipality 406 Gulu Municipality 409 Jinja Municipality 413 Kabale Municipality 417 Kampala City Council 420 Lira Municipality 42 4 Mbarara Municipality 42 7 Soroti Municipality 431 Tororo Municipality 434 4.0 RECOMMENDATIONS AND WAY FORWARD 43 8 4.1 Procurement Structures 438 4.2 Procurement and Disposal Planning 438 4.3 Solicitation and Bidding Procedures 439 4.4 Evaluation Procedures 440 4.5 Contract Award and Management 4.6 Reporting 4.7 Performance of Contracts Committees 4.8 Record Keeping 4.9 Way Forward 440 5 ANNEXES 442 Annex I - Compliance Assessment Tool 442 Annex II – Overall Performance of the 120 PDEs 449 Annex III – Performance of PDEs by category 459 Annex IV- Number of Contracts Committee and PDU members in each PDE 469 Annex V – Overall Ranking of LG and CG PDEs FIGURES 13 Fig. I – Performance of CG PDEs under Procurement Structures 13 Fig. II - Performance of LG PDEs under Procurement Structures 13 Fig. III- Performance of CG PDEs under Procurement / Disposal Planning 15 Fig. IV - Performance of LG PDEs under Procurement / Disposal Planning 16 Fig. V - Performance of CG PDEs under Solicitation and Bidding Procedures 17 Fig. VI - Performance of LG PDEs under Solicitation and Bidding Procedures 17 Fig. VII - Performance of CG PDEs under Evaluation Procedures 18 Fig. VIII- Performance of LG PDEs under Evaluation Procedures 19 Fig. IX- Performance of CG PDEs under Contract Award and Management 20 Fig. X- Performance of LG PDEs under Contract Award and Management 21 Fig. XI - Performance of CG PDEs under Reporting 23 Fig. XII - Perfo rmance of LG PDEs under Reporting 23 Fig XIII - Performance of CG Contracts Committees 24 Fig XIV - Performance of LG Contracts Committees 25 Fig. XV- Performance of CG PDEs under Record Keeping 26 Fig. XVI- Performance of LG PDEs under Record Keeping 27 Fig. XVII -Performance of CG PDEs under all Compliance Areas 28 Fig. XVIII -Pe rformance of LG PDEs under all Compliance Areas 29 Fig. XIX – Compliance Rating of CG PDEs 30 Fig. XX - Compliance Rating of LG PDEs 31 6 LIST OF ACRONYMS AG Attorney General AO Accounting Officer CAO Chief Administrative Officer CC Contracts Committee CG Central Government EC Evaluation Committee IGG Inspector General Government GoU Government of Uganda LG Local Government LGA Local Government Act Cap 243 LGPDR Local Government Procurement and Disposal RegulationsNo.39/ 2006 LPO Local Purchase Order MOFPED Ministry of Finance, Planning & Economic Development MOJCA Ministry of Justice and Constitutional Affairs MOLG Ministry of Local Government OAG Office of Auditor General PDE Procurement and Disposal Entity PDU Procurement and Disposal Unit PPDA Public Procurement and Disposal of Public Assets Authority PPDA Act Public Procurement and Disposal of Public Assets Act No. 1/2003 PPDA Reg. Public Procurement and Disposal of Public Assets Regulation, No.70/2003 PRSC Poverty PS/ST Permanent Secretary/Secretary to the Treasury SBD Standard Bidding Document SG Solicitor General TC Town Clerk UD User Departments WB World Bank 7 EXECUTIVE SUMMARY This report presents the key findings and recommendations of a Compliance Check exercise undertaken by the Public Procurement and Disposal of Public Assets Authority (PPDA) between May and August 2008. The main objective of the exercise was to assess the compliance levels of 120 PDEs (72 Central Government Entities and 48 Local Government Entities) as a national representative sample of all the procuring and disposing entities that are currently slightly over 200 in number. Main Findings The exercise was undertaken on the basis of a Compliance Rating Tool that covered 8 Compliance Areas. The following is a summary of the main findings under each of the eight compliance areas: Procurement Structures Out of the 120 PDEs assessed 48 PDEs (40%) were not compliant to the legal requirement of having the full membership of the 5 Contracts Committee members approved by the Secretary to the Treasury. A number of Donor funded projects were not using procurement structures of the PDE. Some of the LG PDEs had not yet filled the positions for the Procurement and Disposal Unit staff with procurement professionals. Procurement Planning Out of the 120 PDEs assessed, 69 PDEs (57.5%) had a procurement plan that was being followed by the PDE. LG PDEs faced challenges in preparation of procurement plans since their User Departments include Town Councils and sub-counties which are geographically distant from the PDU. Few PDEs had in place framework contracts for procurement of repetitively procured or common user items. Solicitation and Bidding Procedures Most CG PDEs were using the standard solicitation documents in the standard format issued by PPDA LG PDEs not applying standard formats since the LG (Procurement and Disposal) Guidelines had only recently been issued to them. A number of procurements sampled did not adhere to the thresholds in the determination of procurement methods and direct procurements were common especially for Regional Referral Hospitals. Evaluation Procedures Some PDEs had no record at all of the evaluation process for any of the procurement cases reviewed and others flouted the evaluation procedures and criteria. LG PDEs need more training in this area since some Contracts Committees had appointed one evaluation team for all procurements. Few of the procurement files reviewed had a signed record of the acceptance of code of ethical conduct by the Evaluation Committee members. Contract Award and Management Many irregularities noted under this area and very few PDEs had records on contract management on the files reviewed.