AUDIT FOLLOWUP 31-07-09 FOR THE WEBSITE

Siganike.Baruti

Informations

• Publié par: Chaet
• Nombre de lectures: 24
• Langue: English

Extrait

FOLLOW-UP IMPLEMENTATION OF
PROCUREMENT AUDIT RECOMMENDATIONS IN
FORTY FIVE PROCURING ENTITIES





















June, 2009


TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................................................iv
1.0 Introduction........................ 1
1.1 Background ........................ 1
1.2 The objectives of the procurement audit follow-up.............................................. 2
1.3 Methodology........................................................................................................ 2
2.0 Observations...................... 3
2.1 General Level of Compliance........................................................ 3
2.2 Analysis of the results ................................ 8
2.2.1 Poor performing entities ......................................................................... 8
2.2.2 Areas of Focus in the FY 2009/10 ........................................................ 10
2.3 Assessment of the implementation of specific audit recommendations............ 12
2.3.1 Mbeya District Council.......................................................................... 12
2.3.2 Songea District Council.................... 14
2.3.3 Sumbawanga Municipal Council ...................................... 16
2.3.4 Muhimbili University College of Health and Allied Sciences................. 18
2.3.5 Muhimbili National Hospital .................................................................. 19
2.3.6 Dar es Salaam City Council 20
2.3.7 National Board for Accountants and Auditors....................................... 22
2.3.8 Iringa District Council............................................................................ 23
2.3.9 Sumbawanga Municipal Council ...................................... 25
2.3.10 Songea Municipal Council .................................................................... 27
2.3.11 National Examination Council of Tanzania........................ 30
2.2.12 Regional Administrative Secretariat – Dar es Salaam.......................... 31
2.3.13 Tanzania Civil Aviation Authority ...................................... 32
2.3.14 Regional Administration Secretariat – Arusha...................................... 33
2.3.15 Arusha Municipal Council ..................................................................... 34
2.3.16 Ministry of Water and Irrigation......................................... 34
2.3.17 Tanzania Airport Authority................... 36

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2.3.18 Ilala Municipal Council.......................................................................... 37
2.3.19 Arusha District Council..................... 38
2.3.20 Meru District Council ............................................................................ 40
2.3.21 Moshi Urban Water and Sewerage Authority ....................................... 41
2.3.22 Arusha Urban Water and Sewerage Authority...................................... 41
2.3.23 Morogoro Municipal Council ................................................................. 43
2.3.24 Kinondoni Municipal Council ................................................................ 43
2.3.25 National Health Insurance Fund ........................................................... 45
2.3.26 National Social Security Fund 46
2.3.27 Vocational Education and Training Authority........................................ 47
2.3.28 National Housing Corporation .............................................................. 49
2.3.29 Medical Stores Department ............................................. 49
2.3.30 Mwanza City Council ............................................................................ 50
2.3.31 Ministry of Energy and Minerals ........................................................... 51
2.3.32 Ministry of Justice and Constitutional Affairs ........................................ 52
2.3.33 Tabora Municipal Council ................................................. 53
2.3.34 Chamwino District Council................... 54
2.3.35 Bukoba District Council ........................................................................ 55
2.3.36 TANROADS...................................................................... 55
2.3.37 TANESCO ................................... 57
2.3.38 Ministry of Agriculture and Food Security............................................. 59
2.3.39 Ministry of Education ............................................................................ 62
2.3.40 Dar Es Salaam Water and Sanitation Authority.................................... 65
2.3.41 Open University of Tanzania ................................................................ 66
2.3.42 Ministry of Heath and Social Welfare ................................................... 67
2.3.43 Tanzania Ports Authority ...................................................................... 68
2.3.44 Tanzania Commission for Aids (TACAIDS).......................................... 70
2.3.45 Public Services Pension Fund.............................................................. 74

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LIST OF ACRONYMS / ABBREVIATIONS

ADB African Development Bank
AO Accounting Officer
APP Annual Procurement Plan
CEO Chief Executive Officer
CPI Compliance Performance Indicator
CQ Competitive Quotations
DED District Executive Director
DT District Treasurer
EC Evaluation Committee
FY Financial Year
G.N Government Notice
GPN General Procurement Notice
LGA Local Government Authority
MDA Ministries, Independent Departments, Authorities/ Agencies
MT Municipal Treasurer
MTB Ministerial Tender Board
NCB National Competitive Bidding
NS National Shopping
PE Procuring Entity
PFMRP Public Finance Management Reform Programme
PMU Procurement Management Unit
PPA 2004 Public Procurement Act, 2004
PPRA Public Procurement Regulatory Authority
RAS Regional Administration Secretariat
SBD Standard Bidding Documents
SPN Specific Procurement Notice
TB Tender Board
USAID United States Agency for International Development
WSDP Water Sector Development Programme







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EXECUTIVE SUMMARY

1. In view of PPRA’s mandate under Sub-section 7(1)(j) of the Public
Procurement Act, 2004, the Authority carried out procurement audits in twenty
(20) and seventy (70) procuring entities during the financial years 2006/07
and 2007/08 respectively. During this financial year, forty five (45) out of the
ninety (90) previous audited procuring entities were visited to assess the
implementation of the previous procurement audit recommendations under
ADB and Recurrent budget funding; They included seventeen (17) Local
Government Authorities (LGAs) and twenty eight (28) Ministries, Independent
Departments and Agencies (MDAs).

2. The outcome of the review indicated a remarkable compliance improvement
from an average level of compliance of 39% and 43% in the financial years
2006/07 and 2007/08, respectively, to an average level of compliance of 71%.
The average level of compliance in LGAs has increased from 40% to 66%
while in the MDAs it has increased from 43% to 74%. The Medical Stores
Department attained a maximum compliance level of ninety six percent (96%)
while the National Housing Corporation attained a minimum compliance level
of thirty seven percent (37%).

3. The performance was above average (50% and above) in twelve out of the
thirteen compliance indicators including: Establishment and composition of
Tender Board; Establishment and composition of PMU; Preparation of Annual
Procurement Plan; Functioning of AO, TB and PMU; Complying to
compulsory approvals; Advertisement of bid opportunities; Publication of
contract awards; Time for preparation of bids; The use of appropriate methods
of procurement; Complying with the use of Standard Tender Document as
stipulated in the regulations; Quality assurance; and Contract implementation.
On the other side, the average performance on one indicator, records
keeping, was below average.

4. The National Housing Corporation has attained the lowest compliance level of 37%
indicating a dismal increase from the compliance level of 14% when it was audited in
the financial year 2006/07. This indicates persistence in breaching the PPA. Our
assessment has indicated that the Tender Board and Head of PMU are mainly
responsible for the low performance of the entity.

Pursuant to Section 17(1) (b) of PPA, Cap 410, we advise the Board to
recommend to the competent Authority (The Head of the entity) to replace the
Head of the PMU. We also advise the Board to recommend to the Head of the
entity to take appropriate disciplinary measures to the members of the Tender
Board in accordance with Section 14 of PPA, Cap 410.

5. The Tabora Munic