PPDA audit finds Parliamentary Commission wanting

Oct 04, 2014

THE latest audit report by Uganda’s public procurement regulator has revealed gaping holes in the procurement and disposal activities of the Parliamentary Commission

By Billy Rwothungeyo

 

THE latest audit report by Uganda’s public procurement regulator has revealed gaping holes in the procurement and disposal activities of the Parliamentary Commission.

 

The Public Procurement and Disposal of Public Assets Authority (PPDA) sampled contracts undertaken by the commission’s Procuring and Disposing Unit (PDU) in the 2012/2013 financial year that revealed several irregularities.

 

Huge estimated contract and the final contract sum variances

The Commission put itself at the risk of accumulating domestic debt by undertaking two contracts that had massive variations between the estimated and contracted values.

 

The first of such contracts was that on the procurement of Print Master Two Color Offset Press that was initially estimated to cost sh445,469,400 but the eventual contract price rose by sh439, 766,600 to sh885,236,000. 

 

Then there was the procurement of services for a three day residential workshop for the Committee on Legal and Parliamentary Affairs that had sh34,039,200 as the estimated cost, but whose final cost went up  by 37% to sh46,588,500. 

 

The audit also says that the commission further risked committing itself into a contract without sufficient funds when it retrospectively initiated the procurement of the rehabilitation of the parliamentary buildings.

 

The use of brands in solicitation documents for the supply and delivery of computers and peripherals and the gym equipment was deemed by the audit to be unfair because potential bidders were blocked out.

 

Unjustified use of direct procurement method 

The audit also castigates the commission for using the direct procurement method without a satisfactory reason during the procurement for a workshop to facilitate the Commissions, Statutory Authorities and State Enterprises (COSASE) committee.

 

Both the approval of method of procurement and award of contract were done the same day in regard to this contract. 

 

In public procurement, direct methods of procurement are discouraged as they present a higher risk of less realization of value for money.

 

Still with the same procurement, the audit says there was no transparency in the bidding process as PDU requested for the quotation of M/s Speke Resort after the contracts committee had awarded the contract to M/s Imperial Resort Beach Hotel.

 

Failure to communicate arithmetic errors 

The evaluation process for the procurement of a contractor for the on-going construction of additional floors on Eastern, Western and Northern Blocks of the parliamentary buildings also crept up in the report.

 

The audit says that there was no evidence of communication of arithmetic errors to the contractor; M/s Seyani Brothers. The firm had arithmetic corrections amounting to sh3,348,840 changing their bid price from sh11,353,011,365 to sh11,356,360,205.

 

PPDA also fears that the contract for these works will not be finished on time. The site was handed over on September 19 last year and the initial completion date is was July 26th 2014. 

 

“According to the contract manager’s report dated 24th March 2014, so far time spent on the works was 60% (6 months) in comparison to 47% estimated overall progress. This creates a variance of 13% in terms of time in comparison to estimated progress. The implication is that the contract shall not be able to do the work on time,” the audit says.

 

Award of contract before SG’s approval 

The commission also awarded some contracts without the approval of the Solicitor General. As of FY 2012/2013, all public contracts above sh50m were supposed to be given the nod by the solicitor general before being awarded. However, the thresholds have since been raised significantly with the amended PPDA Act that commence earlier this year.

 

The contracts that did not meet this requirement were Procurement of Provision of Internet Services valued at sh77,392,000,. Procurement of Print Master Two Color Offset Press valued at sh885,236,000,  Procurement of office stationery valued at sh68,034,800, rehabilitation of Buildings valued sh 63,640,940 and the painting of Offices of East Block by M/s Microna worth sh67,260,000.

 

Other sticking issues

There was no contract documentation to ascertain whether the works on the renovation of the breastfeeding house were on schedule. 

 

The commission intended to rehabilitate the Sergeant at Arms’ residence. However, the house was later transformed into a breastfeeding house for staff and Members of Parliament at a cost of sh82,933,000.

 

Also, the procurement process for the supply of CCTV Cameras, Video Based Band, Amplifiers and Live Video Switches and the proposed renovation of Development House also had issues among others.

 

Recommendations

The entity was advised to conduct market survey to plan better, use generic specifications, and ensure that only prequalified firms are given an opportunity to bid during bidding.

 

In the evaluation stage, the Commission was advised to ensure that arithmetic corrections are made to a bid where necessary and that the Evaluation Committee communicates the corrections to the affected bidders and the communication copied to all bidders in order to ensure transparency in the procurement process. 

 

The audit also makes other recommendations in contract award and placement, contracting and contract management, record keeping and procurement delays areas.

 

All these recommendations were given this month as a time frame.

Parliament responds

Hellen Kaweesa, the spokesperson of parliament told the New Vision that the above recommendations are being implemented by the entity.

 

“The procurement unit is addressing what was raised in the report. When we are done with implementing the recommendations, we shall get back to PPDA. If there are still outstanding issues that we need to solve, they will also get back to us,” she said.

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