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.
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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