Business
PPDA may issue market price guidelines to accounting officers
Publish Date: Jun 01, 2014
PPDA may issue market price guidelines to accounting officers
PPDA executive director Cornelia Sabiiti
  • mail
  • img
newvision

By Billy Rwothungeyo

The public procurement regulator is open to the possibility of issuing market price guidelines to the accounting officers as implementation of the new procurement law vests more responsibility on the chief executives.

“It (the law) says that the accounting officer shall not sign a contract where the price is higher than the market price, and of course there are sanctions in the law,” said Milton Tumutegyereize, public procurement and disposal Assets Authority (PPDA)’s director of training and capacity building.

Accounting officers are also required to undertake assessments of the market price before the commencement of the procurement process.

“This (sanctions) have not been there before. So most likely, the accounting officers are likely to fall into this trap, but we are sensitising them.”

Speaking at a capacity building workshop organised for the media recently, Tumutegyereize added: “It is not easy to determine this market price. We shall issue guidelines on how this market can be determined.”

“The law envisages that every entity will know at what price they are going to get their product. If they want to buy a car, they should know how much it costs by the time they make their budget estimates, so they should survey.”

The new law, which was launched in March, also broadens the definition of accounting officer, from those appointed by the permanent secretary to include heads of statutory bodies or state enterprises.

Further, the new law empowers accounting officers to sign a contract without a decision by the contracts committee, where it is unable to meet, in emergency situations.

Tumutegyereize said it is important for the media to understand the procurement cycle in the quest for better value for money in the public procurement.

“Whoever has failed to explain their budgets would say the procurement process is long. PPDA law is the problem. It is the people — the entities themselves who are either inefficient or have conflict of interest, therefore they delay and give contracts unethically,” he said.

RELATED ARTICLES

PPDA law to promote efficiency, accountability

Amended PPDA Act becomes operational next week

PPDA suspends 58 providers

PPDA training firms to better procurement

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Economy to grow by 7% in five years
Uganda’s economy will grow by 7% a year in the three to five years’ time, up from a forecast 6% in 2014, helped by investment from oil explorers and by expansion in the services sector, the finance minister...
Change needed for economic independence — Kagina
Outgoing Uganda Revenue Authority (URA) boss Allen Kagina on Thursday called for a complete mind-set transformation among individuals and institutions in using the available resources for production rather than wasteful consumption....
EADB to fund more projects in Uganda
The East African Development Bank (EADB) has received credit worth $40m (about sh104b) from the African Development Bank (AfDB) to finance infrastructure, manufacturing, tourism, agriculture, transport, education and health projects...
Quacks in construction industry a big threat to Vision 2040
Players in the construction industry have asked the Government to regulate it, saying increasing numbers of quacks will affect efforts to attain the Uganda Vision 2040....
NSSF to save Uganda Clays from collapse
It is now or never for Uganda Clays Limited (UCL). The National Social Security Fund (NSSF) has announced that it will convert a sh16.7b loan to UCL into equity in a bid to secure the company’s future....
UAE Exchange Uganda celebrates, brand turns 34 globally
UAE Exchange Uganda joins its global family in celebrating the 34th anniversary of the brand coming into existence...
Should diplomatic passports issued to ex-govt workers be with drawn?
Yes
No
Can't Say
follow us
subscribe to our news letter