By Peter NyanjeThe Citizen Reporter
Monday, 15 April 2013 07:50
Public Procurement Act, which is meant to check fraud in the purchase
of goods and services, has proved to be a liability and should be
reviewed, according to the Controller and Auditor General.
Ludovic Utouh told The Citizen here recently that those who were
expected to adhere to the law had found ways to either circumvent or
He said even President Jakaya Kikwete had voiced his
concern about the law enacted in 2004 with a view to improving
procurement procedures in public entities and local government
“During our recent meeting as I was presenting my
audit reports at State House, among the issues President Kikwete asked
me to work on is a review of the Procurement Act,” Mr Utouh said.
said the President was concerned because the cost of goods procured in
accordance with the requirements of the law was twice or even three
times their market value.
Mr Utouh cited as an example of an air
ticket bought for a minister who was travelling abroad on official duty,
which cost thrice as much as the one he paid for his wife, who was
travveling with him on the same flight and class.
ticket was purchased through the government’s procurement procedures.
He decided to travel with his wife so he went and bought another ticket
from a travel agent... its price was so low that people were amazed,” he
said. The CAG’s audit reports for the year that ended June 30, 2012
show that hundreds of millions of shillings were lost through dubious
According to Mr Utouh, an audit report by the
Public Procurement Regulatory Authority (PPRA) on the performance of
procuring entities (PEs) highlighted many problems, most of which also
featured in the CAG’s previous reports.
According to PPRA,
similar weaknesses have been recurring every financial year , and these
include: inappropriate establishment of procurement management units
(PMUs); inappropriate preparation of annual procurement plans; poor
record keeping; weak contract management, and failure to publish
The audits revealed that the overall level of
compliance on establishment and composition of PMUs was averaging 78 per
cent (56 per cent in 2010/11) for MDAs.
This, the report says, leads to another problem of inappropriate preparation of annual procurement plans.
of the audited procuring entities are still not complying with the
requirement for preparing annual procurement plans despite their
importance in helping procuring entities,” said Mr Utouh.
overall average level of compliance on preparation and implementation of
annual procurement plans is only 58 per cent, according to the CAG’s
audit of central government and its entities.
management, it was observed, like in previous years, that some of the
contracts lacked important contract documents and some contained
“In other many areas it was observed that
performance guarantees were not enforced in cases of performance
failure and warranties were not enforced in cases of supplied goods with
poor quality,” Mr Utouh said.
He added that there were many
entities which failed to liquidate damages applied for delayed contracts
while in other cases, site meetings were not conducted for most of the
reviewed contracts and there were no adequate quality assurance and
There are also many cases where completed works were
not tested to ascertain whether they have attained the specifications as
provided in the contract documents and progress reports for works
contracts were not prepared in other cases.
“It is amazing that
though the procurement law sets conditions there are many incidents in
which extensions of time for completion of contracts were issued without
justifiable reasons and without following appropriate procedures,”
reads part of CAG’s report. The audit results further indicate that
average levels of compliance were 55 per cent and 71 per cent for
quality control and contracts management, respectively.