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Tanzania to prepare strategy to implement National Public Procurement Policy


SupplyManagement

28 June 2014 | Gurjit Degun

The government of Tanzania is to prepare a strategy for implementing the National Public Procurement Policy (NPPP), according to the Public Procurement Regulatory Authority (PPRA).

Finance minister Saada Mkuya said the department has prepared the NPPP “as one of the tools to monitor the public procurement system in the country”. It has worked with the PPRA to prepare the action plan.

In her budget speech earlier this month, Mkuya said over the next financial year, the government “will continue to administer the implementation of the Public Procurement Act No. 7 of 2011 that came into force in December 2013”.

She said the Act should address challenges experienced during the implementation of the Public Procurement Act of 2004. This includes “the overly long procurement process and the high prices of goods and services procured through the public procurement system as compared to the actual market prices”.

Mkuya also announced the government will use bulk purchasing to “control public expenditure and ensure value for money”. The process will see the government buying goods and services directly from suppliers instead of its current method of using agents.

“To begin with, all vehicles and ICT Equipment will be procured through bulk procurement,” she said. “Given the large volume of fuel used in vehicles and machinery, the government will install an electronic system that will be used in purchasing, storing and selling of fuel in order to ensure value for money in these transactions.”

‘No illegality’ in procurement of new Kenyan railway


SupplyManagement

26 February 2014 | Will Green

There was no breach of procurement rules in the deal behind a planned new railway connecting Nairobi and the port of Mombasa, the Kenyan parliament has been told.

National Assembly’s (NA) member Maina Kamanda, chairman of the Committee on Transport, Public Works and Housing, which has completed a report on the project, was responding to the question of why the provision of rolling stock had been single sourced.

The Mombasa-Nairobi Single Gauge Railway project, involving a deal between the Kenya Railways Corporation and the China Road and Bridge Corporation, has proved controversial and Transparency International Kenya has written to the transport secretary requesting all information on the contract “for the purpose of forming an independent opinion on the integrity of the procurement process of awarding the contract”.

Kamanda told NA members because the scheme was a “government to government project, which is to be funded by a negotiated loan, it was therefore exempted from the application of the Public Procurement and Disposal Act”.

“The committee found that the procurement entity acted within the law on the single sourcing of the rolling stock and the work of the tender for the China Road and Bridge Corporation,” he said.

Kamanda said the committee found no “illegality or irregularity in the procurement of this project”.

He added: “The government of Kenya should fast-track the signing of the financial agreement between Kenya and the government of the People’s Republic of China to enable the commencement of that project.”

The matter is also the subject of a separate inquiry by the Public Investments Committee.

Kenya: Oswago Tells EACC of Bad Blood Between Staff, Supplier


AllAfrica.com

BY DOMINIC WABALA, 15 AUGUST 2013

The Independent Electoral and Boundaries Commission (IEBC) Chief Executive Officer James Oswago has revealed the “acrimonious” working relationship between the commission’s Director for ICT and representatives of the company that was awarded the tender to supply election equipment.

Oswago’s statement to the Ethics and Anti-Corruption Commission that is probing the pre-election procurement process at IEBC delves into the behind the scenes intrigues that surrounded the delayed procurement of the equipment, the change of specification for the kits and why they failed to perform as expected.

Oswago said this bad blood between the ICT director Dismas Ong’ondi and employees of Face Technologies (Facestec) caused a delay in the delivery of the kits which arrived a month before the election day.

“The director ICT raised most of the issues which had already been answered by Face Technologies. I may add that the relationship between Dismas and Face was sour/antagonistic for some reasons I never understood. The issues he was raising were relevant, but it was his duty to fully engage and provide a solution e.g. the CEO had to get personally engaged in the effort to get Face to deliver the EVID fully configured and load the final BVR Register per polling station at Kasarani, a function which would have been done by the Director himself and I later delegated that to be headed by Shollei/ICT managers,” Oswago said.

The CEO attributed the delay to request by the Directorate of ICT late changes of data without prior notification. “I stated that Face too are frustrated by poor response on critical issues from ICT Directorate and I had seen evidence of it as in the exchange of several emails between Dismas and Face Technologies in which Face lists clear instances of promises made but not fulfilled by ICT, late changes to the data on file without prior notification forcing Face team to redo some work afresh, areas where in correct data was sent to Face Technologies. Finally the Director ICT was never involved at all in the setting up of the EVID data processing centre at Kasarani Sports Complex,” Oswago says in his statement.

The CEO also blamed the failure of the Electronic Voter Identification Devices (EVIDs) during the March 4 2013 election on human error owing to inadequate training of poll clerks.

“The gadgets did not fail- human error resulting from insufficient training caused the problem. I can state that the EVID equipment hand held or laptop worked very well in all cases where charging issue was addressed. Indeed, in elections for CAW conducted in Kuria EAST AND Samburu, three week after the March 4th polls, the EVID worked perfectly well,” Oswago said.

The IEBC CEO said that the delivery of the kits was delay for over 30 days because a complaint had been lodged at the Public Procurement Oversight Authority (PPOA) challenging the award of the tender to Face Technologies while the ICT director constantly faulted any efforts by the South African company as they tried to deliver on time.

Oswago said that he delegated the EVID project to the IEBC Deputy Commissioner Secretary-Support Services Wilson Shollei and was not involved in some of the communication between Face Technology and IEBC.

The IEBC CEO told the investigators in his statement on June 28 2013 at 9:30am that on December 5 2012, he received a memo from Deputy Commission Secretary Support Services Wilson Shollei requesting him to authorize transfer of US $ 16,651,139 (Sh1.4 billion) to the Commission’s Kenya Commercial Bank account No. 1117602532 University way branch to complete the contractual obligation with Face Technology.

“I am aware that on December 05, 2012 the DCS-Support Services, Mr Wilson Shollei wrote a memo to me requesting for authority to transfer funds amounting USD 16,651,139.3 to the Commission account No. 1117602532 at KCB University Way. The Commission was in the process of entering a contract with Face Technologies to supply EVID and the contract required irrevocable letter of credit. Subsequently, I gave the approval on December 05, 2012 partly because I had earlier assigned Shollei responsibility to manage EVID procurement and implementation and partly because I had received verbal briefs from him that the vendor had specifically asked for an LC in the contract. This information was also included in the memo. I can see on the memo produced before me here today, Shollei gave instruction for voucher preparation to the Director manager Finance on 10th December and he has signed for the accounting officer. I am seeing this for the first time,” Oswago said in his statement.

He also denies being aware of the US$ 15 per kit for some rubber protection which is tax exempt yet the other items are taxable.

South Africa: Mbeki, Manuel to give evidence in arms probe


The Citizen

July 16th, SAPA

Former president Thabo Mbeki will testify as a witness in the first phase of the Arms Procurement Commission, it was announced.

The commission, which is probing the R70 billion arms procurement deal, will hold public hearings from August 5 until January 31, subject to President Jacob Zuma granting an extension beyond November, spokesman William Baloyi said in a statement on Monday.

Mbeki and Minister in the Presidency Trevor Manuel were set to testify in the second half of January.

Baloyi said the first phase of the commission would “deal with the rationale for the Strategic Defence Procurement Package”, and whether the arms and equipment acquired were under-utilised or not utilised at all.

The first witnesses would be navy and air force officials. Armscor witnesses would be named later.

Former Intelligence Minister Ronnie Kasrils and Congress of the People president Mosiuoa Lekota would be called as witnesses between September 30 and October 4, followed by department of trade and industry officials until November 11.

Former Public Enterprises Minister Alec Erwin was expected to testify for three days in November, followed by National Treasury officials until the end of that month.

“It is also important to note that the programme is not cast in stone and circumstances prevailing at the hearings may require that it be adapted or altered, and this may also effect the sequence of witnesses,” Baloyi said.

“Some of the witnesses may be recalled at a later stage, when the commission deals with the terms of reference relating to allegations of impropriety, fraud and corruption in the acquisition process, a phase in which the ‘whistleblowers’ and those who are implicated will feature.”

The commission would be held in the council chambers of the Sammy Marks Conference Centre in Pretoria.

The deal, which was initially estimated to cost R43 million, has dogged South Africa’s politics since it was signed in 1999, after then Pan Africanist Congress MP Patricia de Lille raised allegations of corruption in Parliament.

Zuma himself was once charged with corruption after his financial adviser Schabir Shaik, who had a tender to supply part of the requirements, was found to have facilitated a bribe for him from a French arms company.

The charges against Zuma were later dropped.

99 percent of Ugandan contracts over budget


SupplyManagement

2 July 2013 | Adam Leach

Lack of attention to detail and poor market research by buyers are to blame for more than 99 out of every 100 public sector contracts in Uganda last year running over budget, according to the Inspector General of Government.

In its third annual report into corruption within government, the IGG found that the number of procurements that kept to budget had dropped to just 0.7 per cent of those let over the past year. It blamed purchasers for leading to unrealistic estimates of overall costs. The situation also appears to be deteriorating as in 2009, only half of contracts were found to have gone over their original budget.

The report said: “Price increase during execution, through change orders in specifications or cost, may be grounds for corruption. This is a significant red flag of a possible entry point of corruption and calls for integration of risk management into public procurement.”

The report, which covered contracts in 2012, also criticised public sector buyers for taking too long. It found that less than a third of procurements – 29 per cent – were completed when they were supposed to.

Analysis: New law fails to ease oil concerns in Uganda


IRIN NEWS

KAMPALA/NAIROBI, 13 December 2012 (IRIN) – Uganda’s parliament recently passed a law to govern the exploration, development and production of the country’s estimated three billion barrels of oil, a resource whose extraction will directly affect the livelihoods of tens of thousands of people.

While the law streamlines the burgeoning industry, analysts have raised concerns over transparency and over who controls the sector.

“The new law helps set clear guidelines under which the oil sector is to be run and managed, and makes clear who is in charge of what roles,” said Tony Otoa, director of Great Lakes Public Affairs (GLPA), a Uganda-based think tank focusing on oil and governance. “However, there are some concerns about transparency and too much power within the oil industry in the hands of the president.”

The bill was passed on 7 December after weeks of wrangling over its controversial Clause 9, which gives the energy minister wide-ranging powers, including authority over the granting and revoking of oil licenses, negotiating and endorsing petroleum agreements, and promoting and sustaining transparency in the petroleum sector. Many members of parliament (MPs) felt these powers should be held by an independent national oil authority.

“Essentially, the standoff, which has ended, was about the withdrawal of trust from a government that is battered by corruption scandals. Also the way the cabinet operates is that, in the past, the feeling has been that some key ministries, like finance, are effectively run by the presidency after being stuffed by yes-men or -women. The pushback against Clause 9 also comes as the Central Bank opened its vaults to a large withdrawal in 2010 [US$740 million to buy six fighter jets] only for approvals to be sought retrospectively,” said Angelo Izama, a Ugandan journalist and oil sector analyst.

“Loss of trust”

“This loss of trust is behind the resistance to greater control by the executive,” he added. “The executive has not been a bad shepherd of the process so far. Uganda’s negotiating position has been tougher with the oil companies, ironically, without the oversight of parliament. However, public scandals elsewhere have negatively affected the ability of the president to convince lawmakers – especially of his party – that he means well.”

A number of donors – including the UK and Ireland – recently suspended aid to Uganda following allegations of deep-rooted corruption in the Office of the Prime Minister. The prime minister, the former energy minister and the foreign affairs minister were all accused of taking kick-backs from oil companies in 2011, charges that remain unproven but that nevertheless damage the reputation of the government.

“The country lacks trust in the state… Institutions and officials have lost legitimacy, and for such an important bill to vest too much power into a political appointee is a recipe for disaster,” said Stephen Oola, a transitional justice and governance analyst at Uganda’s Makerere University Refugee Law Project.

“Granting and revoking licenses and negotiations are technical in nature. We need an independent commission or authority made up of people of good competence, technical ability and experience, and good morals to guard our oil,” said Frank Gashumba, a local businessman and social activist.

Proponents of Clause 9 say licensing powers are safer in the hands of the cabinet than under an oil authority. “The authority is open, easy to bribe and manipulate. Cabinet is bigger than the authority – members of the executive are answerable to Ugandans because they are elected leaders,” said Kenneth Omona, a ruling party MP.

Those opposed to it say they will challenge the law, which was passed with 149 votes in favour and 39 against; some 198 MPs did not turn up to vote.

“The fight is not complete; the passing of the bill is liable to be challenged in courts of law,” said Theodore Ssekikubo, ruling party MP and chair of the parliamentary forum on oil and gas. “If we fail to go to court, we shall subject the matter to a referendum for all Ugandans to pronounce themselves on this strategic resource. We want to ensure transparency and accountability in the oil sector.”

Transparency

There are also concerns about the law’s confidentiality clause, which limits the amount of information accessible by the public.

“The law is lacking transparency – it imposes confidentiality on officials working within the sector, even after they leave office, so there is no opportunity for whistle-blowing or for the public to have access to information on, say, production-sharing agreements,” GLPA’s Otoa said.

He noted that Uganda still hasn’t joined the Extractive Industries Transparency Initiative (EITI), an international scheme that attempts to set a global standard for transparency in oil, gas and mining, further compounding the sector’s lack of transparency. As a member of the EITI, Uganda and oil companies involved in the country would be required to publish all payments and revenues from the industry.

While Total and the China National Offshore Oil Corporation (CNOOC), two of Uganda’s major oil partners, are listed on Wall Street and are therefore subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act – which requires disclosure of payments relating to the acquisition of licenses for exploration and production of oil, gas and minerals – the Irish firm Tullow Oil, another of Uganda’s main oil partners, is not under any similar obligations.

“I am worried we [legislators] and the public can’t access and scrutinize these agreements. You can imagine the recently negotiated and signed oil agreements have not been accessed by the public, not even by members of parliament,” Beatrice Anywar, former shadow energy minister, told IRIN.

The impact of the oil sector has so far been most acutely felt by communities around Lake Albert, thousands of whom have had to move – some willingly and some forcefully – to make room for an oil refinery, which is expected to take up 29sqkm and displace some 8,000 people.

Land issues

“The government is prosecuting the refinery resettlement by the book. However, managing public expectations and the process of multiple decision makers in Uganda’s complex land legal system [Uganda has multiple land systems, including customary, leasehold and freehold] has contributed some volatility to the process… What is adequate compensation? And who determines that? Is it the market or should this be done by the government?” said journalist Izama.

“As a partner to the oil companies, it’s questionable too if the government can make the best decisions for the affected people as it would look to keep project costs fairly low,” he continued. “It is still a dilemma which is jurisprudential as well as political.”

He noted that much of the oil is in game reserves and a sensitive basin with lakes, rivers and a rare biodiversity, and borders the Democratic Republic of Congo, which could also pose challenges for peaceful production; there has already been some tension between the two countries over their boundaries within Lake Albert.

“The process of consensus-building is still weak, and regardless of how it’s arrived at, displacements will create uncomfortable realities, including land and job pressure.”

According to Otoa, Uganda’s lack of a comprehensive land policy makes compensation issues more complex. “We need clear land policies to ensure people are properly compensated – there is a Resettlement Action Plan in place, but it has not been implemented, and a draft land policy has not been actualized, leaving these communities vulnerable,” he said.

He noted that the lack of education among the local population, both in the oil-rich areas and the rest of the country, had contributed to the continued problems in the sector.

“We have focused too much on educating MPs on the implications and importance of good oil governance. We need to move to people-centred approaches and encourage dialogue in the public sphere, which will lead to people demanding accountability from their MPs and the government,” he added.

Ultimately, Izama said, responsible actions by the government will be the difference between Uganda’s oil making a significant impact on the country’s economy or causing conflict and greater poverty.

“Pressure on public institutions prior to commercial oil production is an effective way of counteracting the resource curse. If this public engagement falters, if the transition [from President Museveni to his successor] is volatile, some of the scenarios of the so-called oil curse are possible,” he said. “Overall the tensions are high, but responsible actions by public and political institutions like the past debate show progress is possible.”

EU donors freeze aid to Uganda over corruption


Bloomberg News

KAMPALA, Uganda (AP) — More Western donors are freezing aid to Uganda after a scam in which up to $13 million in donor money was embezzled in the office of Uganda’s prime minister. The aid freeze is the kind of action long demanded by transparency campaigners who charge that the money oils a corrupt system.

Uganda has a reputation as a corrupt country, but the latest scandal — brought to light by the country’s auditor general in October — is remarkable for its details: More than $220,000 was spent on gas in four days, millions of dollars were diverted to buy luxury vehicles for top officials, and millions were deposited into individuals’ private accounts.

Because the money was for the rehabilitation of parts of northern Uganda devastated by decades of warlord Joseph Kony‘s brutal insurgency, the scandal has provoked a lasting rage around the country and inspired aid cuts that foreign donors had been reluctant to inflict on this East African country.

Roberto Ridolfi, the head of the European Union delegation to Uganda, said in a statement late Tuesday that the scandal and those before it amounted to “a breach of trust” on the part of Ugandan authorities. Sweden, Germany, Ireland, Britain and Denmark have already cut or cancelled all aid to Uganda over the scam, saying they have lost faith in the government’s capacity to spend money responsibly.

Western donors fund up to 25 percent of Uganda’s budget.

Ridolfi said the EU and its development partners in Uganda “will withhold pending budget support disbursements and any further commitments for an initial period of up to (six) months.”

The donors are giving Uganda until April to pay back all the lost money, investigate the scandal, and take action against all the suspects. But investigations of this nature, when they happen, rarely produce the intended results in Uganda, where corruption charges are often politicized and then dismissed. This year three ministers with close ties to President Yoweri Museveni who faced corruption charges were set free by a judge who said they were scapegoats. The three politicians swiftly returned to their jobs […]

Some campaigners who had long urged donors to act tougher against official waste and graft say the audacity of the latest scandal vindicates their calls for the dismantling of an often-comfortable relationship between the state and its donors. They want foreign aid to be channeled through non-state actors engaged in service delivery and for donors to work directly with contractors in cases where the authorities cannot be trusted with cash.

“For the first time the donors are coming out and putting clear benchmarks and I think it’s a good move,” said Cissy Kagaba of the Anti-Corruption Coalition of Uganda, a watchdog group. “But there are other alternatives they can use to ensure that the money reaches the intended beneficiaries.” Read the full article here.

Senegal’s reforms and red carpets


Africa Report

November 27, 2012

Senegal’s President Macky Sall has slashed government spending to finance new infrastructure projects.

Faced with an audit of Wade-era projects, the opposition says he is playing political games. Dakar has been rolling out the red carpet in recent weeks.

Elected in March on a reform ticket, President Macky Sall is in demand as an interlocutor – whether it is by the World Bank, the UN or France’s President François Hollande, who stopped in Dakar on 12 October en route to his more controversial landing in Kinshasa for the Francophonie summit.

This month, the Mo Ibrahim Foundation is holding its annual development conference in Dakar to salute Senegal’s political achievements.

Dakar’s National Assembly gave Hollande the chance to set out his Africa policy, which he insisted was non-interventionist and non-paternalistic.

Hollande seized the chance for a tête à tête with Sall, seeking his help for the regional effort to tackle the worsening in- security in Mali.

Senegal’s troops, alongside Ghana’s, are regarded as the most professional in the region.

But Sall has plenty of local problems to tackle – such as the perennial rainy-season flooding.

The government’s failure to invest in flood defences was one of the reasons for voters turning against former President Abdoulaye Wade.

In September, Macky Sall pushed through a bill to abolish the Senate, the second chamber in the National Assembly.

He promised that the 767bn CFA francs ($1.5bn) would be used to finance a 10-year plan for effective flood defences, storm drainage and sanitation.

Opponents to Sall’s plan accuse him of partisan plotting.

The Senate was dominated by members of Wade’s [I]Parti Démocratique Sénégalais[/I].

But Sall’s supporters insist the plan reflects the need to cut ballooning government overheads inherited from the Wade era.

The Sall government aims to cut the budget deficit from current levels of 7.4% of gross domestic product down to 4% by 2015.

So far, Sall has closed 59 moribund state institutions, banned first-class travel for civil servants and is selling a presidential jet.

To promote accountability, Sall has published details of all official salaries, declared his own assets and promised to cut salaries at state-run companies to below 5m CFA francs per month.

“Humility, sobriety and rigour should govern our politics,” Sall told The Africa Report’s sister magazine Jeune Afrique after his election.

“I assure you that there will be a profound break from the practices that were in force under my predecessor.”

The new government has quickly launched audits of government departments and projects for evidence of illicit disbursements.

This includes projects run by Wade’s son Karim, such as the 650bn CFA franc energy crisis programme, Plan Takkal.

Britain, France and the United States have pledged cooperation in tracking down stolen money.

Sall rejects claims of political vindictiveness: “The only thing that interests us is that the errors of the past don’t repeat themselves,” he said.

The courts will take cases identified by the audit.

His promise to cut the presidential term from seven to five years with immediate effect won local and international plaudits, as did his agreement with the African Union to set up a special tribunal for Chad’s ex-leader Hissène Habré, in exile in Senegal since 1990.

Liberia: Malpractices At GAC?


AllAfrica.com

November 12, 2012

Activities at the General Auditing Commission have come in the prism of review and reflection days after 46 staffers were relieved of their posts due to what the new administration of Robert Kilby terms “overlapping of functions and budgetary constraints.”

The reported unwholesome activities and malpractices reportedly allegedly championed by the new boss include the purchase of vehicle outside of the Procurement Act, employment of individuals on family and friendship basis and many others.

The African Standard an online news magazine in a statement released and cascaded to media entities has detailed some of the troubling activities at the GAC as the involvement of Auditor General Robert Kilby in acts that do not conform to set standards, ranging from the purchase of a vehicle outside of the Procurement Act, the employment of relatives and comrades and many more.

Besides that, he is accused of employing people who lack the professional wherewithal to perform the tedious task at the GAC while at the same time laid off those who underwent rigorous trainings in many fields of the profession here in Liberia and outside at the expense of the institution.

The magazine named the former Engagement Manager of NOCAL audit, Mr. Alieu Konneh, senior auditor Amos Borbor and overall audit boss Richard A. Wisseh as some of the experienced auditors fired.

Mr. Kilby is also accused of replacing his son, Stephen Weltee Kilby with Michael Gray of Grand Cape Mount County.

For example, the African Standard Magazine claimed Mr. Kilby has just hired 18 people, adding US$35,000 per month to GAC monthly payroll.

According to the report, these new positions were not budgeted for in the current 2012/2013 Budget

Some of the staffers hired by Mr. Kilby are named as Cornelia K. Green-Mason, Executive Assistant to AG with the reported salary of $3,000, Theophilus Julu, Manager Facility with the alleged salary of $1,000, Nathaniel Brumskine, Director of Communication with the alleged salary of $3,600, Stephen Weltee Kilby, Executive Driver with the alleged salary of $700 and Ebenezer Clanko Dunn, Messenger with the alleged salary of $700…Read more.

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