Audit report exposes cost disparities across govt procurements

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The latest annual audit report has revealed significant variations in prices charged by government entities for similar goods, works and services, raising concerns about weak standardisation and procurement controls.

The Auditor General’s report for the year ended December 31, 2025, has been presented to Parliament for action.

Auditor General Edward Akol said the wide price differences recorded for common user items across Ministries, Departments and Agencies point to poor coordination in procurement practices.

An analysis of the costs of constructing selected tarmacked roads revealed substantial differences in expenditure per square kilometre. For instance, the upgrading of 8.07 kilometres and reconstruction of 6.83 kilometres of roads, including the signalisation of seven junctions in Lubaga and Makindye divisions, cost sh609,639 per square kilometre.

In contrast, the reconstruction of 18.84 kilometres of roads in Makindye, Central, Kawempe and Lubaga divisions, including the signalisation of five junctions in Makindye Division under Lot 3, was undertaken at sh491,620 per square kilometre.

Meanwhile, the construction of selected roads in Kira and Mukono municipalities under Lot 1, including Mbogo and Cyprian roads measuring 9.0 kilometres and the Kungu–Bivanju road measuring 2.3 kilometres, cost sh299,977 per square kilometre.

Further disparities were recorded under Lot 2 of the Kira and Mukono road works, which covered Anthony–Kame, Kame Annex, Albert Cook–Cathedral Rise, Kame–Nabuti–Katosi road and related links spanning 8.68 kilometres, at a cost of sh357,722 per square kilometre. Lot 3 works covering Nasuuti–Nakabago–Ntawo, Bajjo–Seeta, Serado Link and Kigunga Link roads measuring 9.72 kilometres cost sh324,033 per square kilometre.

Similar inconsistencies were also observed in the procurement of furniture with identical specifications across different entities. An analysis of furniture procurement revealed wide price variances. Executive desks were procured at sh5 million by Entity A, sh4.3 million by Entity B, sh4.6 million by Entity C, while Entity D paid sh7.5 million.

Executive high-back swivel chairs were procured at sh1 million by Entity A compared to sh1.9 million by Entity B. For workstations, Entity A paid sh6 million, while Entity B paid sh4 million.

The cost of executive desk sets also varied significantly, with Entity A paying sh4 million, Entity B sh4.3 million, Entity C sh4.6 million and Entity D sh7.5 million. Similarly, executive high-back chairs cost sh400,000 at Entity A, sh850,000 at Entity B and as high as sh1.6 million at Entity D.

Akol noted that the absence of standardised specifications and price benchmarks has resulted in government entities paying markedly different amounts for similar items. He said standardising specifications and prices would help eliminate unjustified cost variances and provide a reliable basis for budgeting.

The Auditor General warned that without stronger standardisation and oversight, such disparities would continue to undermine value for money in public spending.