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AG Queries Irregularities in Gov’t Procurement Worth UGX 10.58 Trillion

The management of the procurement function in government formed part of the four thematic audits that the new Auditor General undertook to enhance transparency, accountability, and service delivery. Public procurement is governed by the Public Procurement and Disposal of Public Assets Act - PPDA Act Cap 205.
17 Jan 2025 12:15
Auditor General, Edward Akol, presents the audit report to Deputy Speaker Thomas Tayebwa.
The latest report by the Auditor General, Edward Akol, reveals that 11, out of the 78 assessed government entities made 63 procurements worth 59.02 billion Shillings which were not in procurement plans.

Akol presented the financial year 2023/2024 report to the Deputy Speaker of Parliament, Thomas Tayebwa, on Wednesday for scrutiny by Parliament’s Public Accounts Committees (PACs).

The management of the procurement function in government formed part of the four thematic audits that the new Auditor General undertook to enhance transparency, accountability, and service delivery. Public procurement is governed by the Public Procurement and Disposal of Public Assets Act -  PPDA Act Cap 205.

“During the audit year 2024, I undertook a review of the procurement of goods and services in a sample of 78 entities, 36 of which are implementing the e-GP system, while the other 42 are still on the legacy system. The budget for procurement in the sampled entities on the e-GP system was 10.58 trillion while that for the entities on the legacy system was 1.92 trillion,” reads part of the audit report.

In addition to 11 entities making procurements that were not in the plan, the Auditor General reveals that out of the 78 assessed entities, five split 19 procurements worth 2.4 billion Shillings without adhering to the criteria for splitting requirements.

Akol also noted that eight entities irregularly initiated 21 procurements worth 42.79 billion Shillings. Additionally, 13 entities undertook 79 procurements worth 25.45 billion Shillings without obtaining market prices of the requirements to support the estimated values of the procurements.

“Forty-four contracts worth 47.1 billion Shillings, in 10 entities out of the 78 assessed, signed the contracts with bidders without requiring them to avail performance security,” Akol reported.

The new Auditor General says that these critical challenges in the e-government procurement system threaten the efficiency and transparency of the country’s procurement processes.

“The delayed rollout of the system has exposed us to technological obsolescence risks, whereby our technology may be outdated before it is fully deployed, potentially leading to escalating operational costs. Given that procurement represents a significant portion of government spending, these gaps in our system pose serious risks to transparency, competitiveness, and accountability in the procurement process,” said Akol.

The new audit report is yet to be tabled on the floor of parliament for scrutiny by the Public Accounts Committees.    

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