PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY

Transcription

1 PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY INVESTIGATION REPORT INTO VIOLATION OF PPDA REGULATIONS AT OUR LADY OF GOOD COUNSEL SECONDARY SCHOOL - GAYAZA ENTITY: OUR LADY OF GOOD COUNSEL SS - GAYAZA COMPLAINANT: MR. MALUNGU IGNATIUS LOYOLA JULY 2012

2 CONTENTS ACRONYMS: EXECUTIVE SUMMARY BACKGROUND OBJECTIVE OF THE INVESTIGATION LEGAL PROVISIONS APPLICABLE METHODOLOGY FINDINGS OF THE AUTHORITY DECISION OF THE AUTHORITY PPDA RECOMMENDATIONS:... 9 Page 2 of 10

3 ACRONYMS: AO - Accounting Officer BEB - Best Evaluated Bidder BOQs - Bill Of Quantities CC - Contracts Committee FY - Financial Year MoES - Ministry of Education and Sports PDU - Procurement and Disposal Unit PPDA - Public Procurement and Disposal of Public Assets Authority PP Form - PPDA Standard Form UGX - Uganda Shillings Page 3 of 10

4 1.0 EXECUTIVE SUMMARY Our Lady of Good Counsel Senior Secondary School was founded in 1958 by Gayaza Catholic Parish Education Committee. In 1984, it became a Government School registered with the Ministry of Education and Sports (MoES). The school is not under the Universal Secondary Education (USE) programme and is not facilitated by government in terms of capital development and capitation grants except salary for 40 out of 76 teachers. Currently, the school has a population of 1,280 students and entirely depends on school fees from parents to run all its activities. On 13 th March 2012, PPDA received a complaint from Mr. Malungu Loyola Ignatius alleging that the School was conducting some procurements without advertising yet they fell in the advertising brackets as per the PPDA law. The procurements were: (i) Procurement of foods and beverages worth UGX. 145,800,200 in 1 st term 2010; (ii) Procurement of foods and beverages worth UGX. 96,135,750 in 1 st term 2009; and (iii)procurement of foods and beverages worth UGX. 94,256,250 in 3 rd term In accordance with Section 8 (c) of the PPDA Act 2003, the Authority instituted an investigation into the matter. 1.1 PPDA Findings (i) The school does not have fully constituted procurement structures as stated in Annex 2 of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (ii) The amount stated by the complainant in the three terms of 2008, 2009 and 2010 were in the advertising threshold. However, the stated amount was not spent at once and on one provider, since the items under foods and beverages were diverse including, meat, sugar, milk, maize flour, vegetables and others, which were not provided by one supplier. Page 4 of 10

5 (iii)micro procurement instead of Restricted Bidding method of procurement was used in the procurement of food stuffs worth UGX. 10,140,000 from M/s G. Kayemba Agencies as per payment voucher number 1726 and invoice number 537 contrary to Section of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (iv) The school did not have a pre-qualified list of providers for the three years under investigation contrary to Section of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (v) The school did not use standard PP Forms in all its procurements as required under the PPDA law. 1.2 PPDA Recommendations (i) The Accounting Officer should ensure that the school has fully constituted procurement structures as per Section 4.1 of the Procurement and Disposal Guideline for Schools in Ugandan 1/2004. (ii) The Accounting Officer should ensure that the appropriate procurement method is used as per Section 8.6 of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (iii)the school should consider the use of frame work contracts for the supply of perishable goods such as food stuff or repetitive supplies such as stationery where delivery can only be handled as and when required in accordance with Section 6.3 of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (iv) The school should pre-qualify providers and ensure rotation of providers to ensure competition and transparency as per Sections 6.1 and 7.1 of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. For instance in the procurement of beans, maize, meat and sugar. (v) The school should use standard PP forms in all its procurement and disposal activities as per Annex of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. Page 5 of 10

6 (vi) The school should strictly follow the PPDA Act and Regulations 2003 and the Procurement and Disposal Guideline for Schools in Uganda 1/2004 in the conduct of all its procurement and disposal activities. Page 6 of 10

7 2.0 BACKGROUND Our lady of Good Counsel Secondary School Gayaza procured the following items (i) In 1 st term 2010, the school made 50 procurements of various foods and beverages worth UGX. 145,800,200, (ii) In 1 st term 2009, the school made 39 procurements of various foods and beverages worth UGX. 96,135,750, and (iii) In 3 rd term 2008, the school made 49 procurements of various foods and beverages worth UGX. 94,256, OBJECTIVE OF THE INVESTIGATION (i) To establish whether Our Lady of Good Counsel SS Gayaza carried out procurements without advertising when they fell in the advertising threshold. (ii) To establish whether the school the school complied with the provisions of the provisions of the Procurement and Disposal Guideline for Schools in Uganda No. 1/ LEGAL PROVISIONS APPLICABLE The Public Procurement and Disposal of Public Assets Act No.1 of The Public Procurement and Disposal of Public Assets Regulations The Procurement and Disposal Guideline for Schools in Uganda No. 1/ METHODOLOGY 5.1 The Authority reviewed the following documentation contained in the procurement action files provided by Our Lady of Good Counsel SS Gayaza: (i) Requisition Vouchers; (ii) Invoices; (iii)delivery notes; and (iv) Income and expenditure reports. Page 7 of 10

8 5.2 The Authority interviewed the following persons: No. Name Organization Designation 1 Theresa Mary Obbo Our Lady of Good Counsel Head Teacher SS Gayaza 2 Oyera Donald Our Lady of Good Counsel SS Gayaza Deputy Head Teacher 3 Namyalo Ruth Our Lady of Good Counsel Secretary SS Gayaza 4 Nabbongo Patrick Our Lady of Good Counsel Bursar SS Gayaza 5 Bukenya Kabali Our Lady of Good Counsel Director of Studies SS Gayaza 6 Malungu Loyola Ignatius Our lady of Good Counsel SS Gayaza (Not in service currently) Complainant 6.0 FINDINGS OF THE AUTHORITY 6.1 Objective (i) To establish whether Our Lady of Good Counsel SS Gayaza carried out procurements without advertising when they were in the advertising threshold. (ii) To establish whether Our Lady of Good Counsel SS Gayaza carried out procurements in accordance with the PPDA Act and Regulations 2003 and Procurement and Disposal Guideline for Schools in Uganda 1/2004. PPDA findings (i) The school does not have fully constituted procurement structures as stated in Annex 2 of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (ii) The amount stated by the complainant in the three terms of 2008, 2009 and 2010 were in the advertising threshold. However, the stated amount was not spent at once and on one Page 8 of 10

9 provider, since the items under foods and beverages were diverse including, meat, sugar, milk, maize flour, vegetables and others, which were not provided by one supplier. (iii)micro procurement instead of Restricted Bidding method of procurement was used in the procurement of food stuffs worth UGX. 10,140,000 from M/s G. Kayemba Agencies as per payment voucher number 1726 and invoice number 537 contrary to Section of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (iv) The school did not have a pre-qualified list of providers for the three years under investigation contrary to Section of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (v) The school did not use standard PP Forms in all its procurements as required under the PPDA law. Conclusion The Entity did not advertise for the procurements because they did not fall in the advertising threshold. However, the Authority noted that there was no list of pre-qualified suppliers, wrong procurement methods were used, competition and fairness was not observed and standard PP Forms were not used in the conduct of procurements. 7.0 DECISION OF THE AUTHORITY The Authority noted that the amount involved in the conduct of the procurements under investigation did not fall in the advertising threshold to warrant competition therefore, the complaint does not have merit and is rejected. 8.0 PPDA RECOMMENDATIONS: In light of the above findings, the Authority recommends as follows: (i) The Accounting Officer should ensure that the school has fully constituted procurement structures as per Section 4.1 of the Procurement and Disposal Guideline for Schools in Ugandan 1/2004. Page 9 of 10

10 (ii) The Accounting Officer should ensure that the appropriate procurement method is used as per Section 8.6 of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (iii)the school should consider the use of frame work contracts for the supply of perishable goods such as food stuff or repetitive supplies such as stationery where delivery can only be handled as and when required in accordance with Section 6.3 of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (iv) The school should pre-qualify providers and ensure rotation of providers to ensure competition and transparency as per Sections 6.1 and 7.1 of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. For instance in the procurement of beans, maize, meat and sugar. (v) The school should use standard PP forms in all its procurement and disposal activities as per Annex of the Procurement and Disposal Guideline for Schools in Uganda 1/2004. (vi) The school should strictly follow the PPDA Act and Regulations 2003 and the Procurement and Disposal Guideline for Schools in Uganda 1/2004 in the conduct of all its procurement and disposal activities. Page 10 of 10