Title of Report:

Procurement audits of government entities for the year 2008/2009 carried out across different
districts in Uganda

Objectives of Audit

Harmonize the procurement and disposal policies, systems and practices of the central
government, local governments and statutory bodies.
Set standards for the public procurement and disposal systems in Uganda.
Monitor compliance of procuring and disposing entities;
Build procurement and disposal capacity in Uganda; and
Ensure the application of fair, competitive, transparent, non-discriminatory and value for
money procurement and disposal standards and practices.

Challenges encountered in PDEs

Low compliance levels with the PPDA law at CG and LG level especially with respect to record
keeping and the Authority has limited enforcement powers.

Procurement planning and monitoring of implementation of the plans is lacking.

Delays to initiate procurements by Procuring and Disposing Entities affects absorption and use
of the correct procurement methods and therefore, competition is not always considered during
procurement.

Poor handling of complaints by Accounting Officers. There is need to strengthen the complaints
handling mechanisms at both the Procuring and Disposing Entity and PPDA levels.

Collusion between PDEs and Bidders frustrates the Authority’s attempts to suspend bidders with
unethical practices.

Low capacity of bidders to submit responsive bids leads to aggressive commercial wars in
procurement.

Lack of adherence to the principle of confidentiality during the bidding process by PDEs
Failure of Entities to debrief bidders on reasons why they were not successful

Low attendance of workshops by participants in the capacity building process

Key Audit findings

There was blatant flouting of the procurement rules and Regulations as the procurement process
was not followed, the procurement and disposal organs were not involved, and there was no
contract signed with the provider. The entire procurement was irregular.
The evaluation of the bids at the preliminary evaluation stage was not done in accordance with
the Regulations.
The Evaluation Committee did not follow the evaluation methodology stipulated in the
solicitation document, for example, the post-qualification criteria stated in the solicitation
document were examined at the detailed technical examination stage.
Administrative review fees were high and preventing the providers from raising
complaints to the accounting officers.
Delays in the release of funds from Central Government make the implementation of the
procurement plan difficult.
Some donor funded projects such as NAADS and NUSAF had their procurement
structures and were not following the PPDA Law.
Lack of facilitation of the evaluation committee in Local Government PDEs.
Local Government PDEs were not guided on preparation and use of framework contracts and
they therefore continued to issue repeated LPOs for repetitively procured goods.

Recommendations

Review and streamline the structure and operations of PPDA with a view to making them
more efficient and effective in achieving the mandate of PPDA.
Participate in the process of amendment of the PPDA Act to ensure that there is a
strengthened public procurement system that delivers value for money.

Implement the PPDA Capacity Building Strategy through by the development of the
capacity of the various stakeholders to efficiently and effectively manage the procurement
function.

Develop, operate and maintain a Register of Providers to serve as a central reference point
of information on providers and thus enhance transparency and a competitive business
environment for the public procurement system.

Strengthen the internal Information Communication and Technology function to support the
efficient and effective implementation of PPDA’s mandate.

Review the PPDA Public Relations and Communications Strategy to enhance the
development of strategic partnerships and linkages with key stakeholders as well as raise
awareness amongst the public of the role of the PPDA and the public procurement system in
Uganda.
Develop an effective procurement performance measurement system (PPMS) to progressively
monitor the performance of the public procurement system in Uganda.

Enforce compliance of the procuring and disposing entities with the PPDA Act by
increasing the number of compliance checks and procurement audits undertaken on procuring
and disposing entities and making regular follow ups on the status of implementation of
PPDA recommendations by the competent authorities.

Enforce the requirement of procurement planning by procuring and disposing entities as

critical tool for the effective management of the procurement function and the efficient
delivery of services by linking the implementation of procurement plans to the budget
execution process.

Conclusion

The importance of a strong public procurement system cannot be over emphasized in a country
where the provision of the much needed goods, services and works largely depends on the
transparency, efficiency and fairness of the procurement and disposal system.
References

Public Procurement and Disposal of Public Assets Authority. (2009). Annual Report For The
Financial Year 2008/ 09: the PPDA Authority.