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.
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.