INADEQUACIES in procurement and contract management cost the government more than 57bn/- in the 2014/15 financial year, the Controller and Auditor General (CAG) report has revealed.
The significant procurement issues in
the last financial year’s report include among others, a list of
entities that made procurement outside the annual procurement plan
(8.5bn/-) and entities that made procurement without approval of the
Tender Board (494.4m/-).
Others, according to the report, are
procurement made without competitive tendering (27.1bn/-), delivered
goods without inspection (15.5bn/-) and procurement of goods and
services without contracts (5.2bn/-).
Also in the list is procurement of goods
and services through imprests (150.3m/-), procurement of goods and
services from unapproved suppliers (8.6m/-) as well as goods and works
procured and paid for but not delivered (3.3m/-).
The CAG report also revealed a list of
public entities with inadequate procurement records as Tanzania People’s
Defence Forces (TPDF), Prisons Service Department, Tanzania High
Commission in Abuja, Nigeria, Tanzania Embassy in Addis Ababa, Ethiopia
and High Commission of Tanzania in Ottawa, Canada.
At the National Electoral Commission
(NEC), the report details that various materials worth for registration
of voters in the permanent register amounting to 827m/- were procured in
excess although the same had not been used despite the lapse in the
intended purpose.
The report further revealed that the
Ministry of Constitutional Affairs and Justice procured printing
services amounting to 7m/- in respect of the proposed constitution books
which the CAG flawed due to non-compliance with procurement laws.
Apart from that, 150,003 copies of the
proposed constitution books were yet to be issued to targeted
beneficiaries for the purpose of public awareness on the referendum for
the proposed constitution.
“Results of my audit also indicate that
some ministries, departments and agencies (MDAs) did not manage well the
contracts entered between them and various contractors’’, said the CAG,
Professor Mussa Assad, when unveiling his annual report on Monday.
The weakness, according to him,
contributed to the late completion of some of the projects -- and
sometimes substandard performance.
In this category, it includes delayed
completion of construction works at the then Ministry for Education and
Vocational Training (MoEVT) and rehabilitation of chancery buildings at
the Tanzania embassies in Maputo and New York.
The CAG report also revealed notable
weaknesses by the Public Procurement Regulatory Authority (PPRA) during
the procurement audits of MDAs.
At the then Ministry of Foreign Affairs
and International Cooperation, the CAG found out that the ministry did
not sign contracts for all the procurement activities on behalf of the
procurement entity pursuant to section 36(h) of the Public Procurement
Act (PPA), 2011.
The Public Service Commission (PSC) did
not properly aggregate the procurement requirements in the (Annual
Procurement Plan (APP) as per the requirement of section 49 of PPA.
In the Vice-President’s Office (VPO), 12
tenders out of 17 planned for procurement during the financial year
2014/15 were not implemented as per the requirement of the law.
The CAG also found out that at the
Public Service Recruitment Secretariat, the Accounting Officer (AO) did
not issue notice of intension to award contracts to all bidders for the
tenders.
At the then Ministry of East African
Cooperation, tenders for internet and email connection did not follow
procurement procedure. Instead, the single source procurement method was
used.
The report found out the contract was prepared by the service provider instead of the procurement entity.
On the area of procurement, the report
recommends that the management of the audited MDAs and Regional
Secretariat (RS) should ensure that they fully observe the requirements
of procurement laws, specifically on the preparation and implementation
of Annual Procurement Plans (APPs).
The CAG also suggests that approval of
procurements by tender boards is paramount as well as inspection,
acceptance of goods and services made as well as effecting procurements
from approved suppliers
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