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Ugandan government suspends 58 suppliers


Supply Management

28 November 2013 | Will Green

The Ugandan government has published a list of 58 suppliers who have been suspended from bidding for public contracts.

The Public Procurement and Disposal of Public Assets Authority (PPDA) has suspended the firms for a range of reasons including submitting forged bid securities, works not completed on time and invoicing for work not carried out.

The suspensions range in duration from one to five years.

Among the firms is Amman Industrial Tools & Equipment Ltd, which has been suspended indefinitely for causing a $1.7 million loss to the government in connection with a contract to provide 70,000 bicycles.

In a statement the PPDA said: “The firms and their directors will no longer be allowed to participate in any public procurement process during the duration of their suspension.

“Some firms like Amman Industrial Tools & Equipment Ltd and their directors have been suspended indefinitely for causing $1.7 million financial loss to the Government of Uganda.”

A full list of the suspended providers can be found here.

 

SCE inks S$8.8m deal with Mauritius


The Business Time

July 11, 2013

By Angela Tan

SINGAPORE Cooperation Enterprise (SCE), an integrated arm of International Enterprise Singapore, said on Thursday that it has signed an S$8.8 million contract with the Government of Mauritius, to provide advisory services for the procurement of the Mauritius Light Rapid Transit (MLRT).

Under the contract, SCE will gather experts from SMRT International Pte Ltd and Aurecon Singapore Pte Ltd as the Transaction and Technical Advisors for the programme.

The Singapore team has already conducted business case; planning and reference design in Stage 1 and the new contract will form Stage 2 of the project.

It will ensure that the delivery scenarios reflect policy and legal requirements based on international best practices; and that the Public-Private Partnership structure will be acceptable to market and be bankable

 

Namibia: Public Procurement Bleeds Namibia


AllAfrica.com

By EDGAR BRANDT, 2 MAY 2013

Windhoek — Despite a significant increase in public expenditure, public procurement has not brought about the desired outcomes, such as increased employment, improvement in the distribution of economic opportunities, enterprise development and economic growth and development, the Minister of Finance, Saara Kuugongelwa-Amadhila, told a Tender Board meeting held recently in Windhoek.

According to the finance minister the desired outcomes have not been reached for the most part because of leakages out of the economy. “Many tenders are awarded to foreign companies even where local companies have the capacity to perform these tenders. Goods and services procured under these contracts are sourced from outside, and too many expatriates perform work on the projects under these contracts even where locals have the skills to do so. So resources leak out of the Namibian economy as a result of this and opportunities for learning and enterprise development are forfeited,” said Kuugongelwa-Amadhila.

She added that setting tenders aside for local companies and special target groups such as women and youth for economic empowerment could address these challenges.

Additional tools recommended by Kuugongelwa-Amadhila to address these issues include a policy that some tenders should require mandatory sole contracting of Namibian companies and SME‘s, that there should be requirements for local participation in all companies to be awarded tenders and that there should be a mandatory requirement for sourcing of supplies and labour services from within Namibia.

With specific regard to procurement, the finance minister noted there is a significant increase in expectations from the public for the system to help the country overcome the challenges of unemployment and inequities and to support sustainable economic growth. With public expenditure having increased significantly in the recent past, the government’s role in the economy has grown much bigger. “We should also put in place monitoring and evaluation systems to ensure that compliance with bidding commitments are enforced and that the impact of the procurement programmes is evaluated. Companies that fail to honour their bidding commitments should be held to account,” said Kuugongelwa-Amadhila, adding that the current allegations of corruption and court challenges against the decisions of the board do not augur well for the public image of the board.

Also, she encouraged the Tender Board to look at ways to delegate the adjudication of some tenders to state-owned enterprises, local authorities and regional authorities.

She also revealed that a dedicated procurement reform project office has been set up and recruitment of staff is in progress. “The office will help drive the reform process including assisting with the drafting of the regulations for the new (tender) law once passed, and operational guidelines, as well as the setting up of the procurement advisory office and the new secretariat. I encourage the board to ponder on all the challenges and ways and means of overcoming them,” concluded Kuugongelwa-Amadhila.

Monitoring Findings of the Sierra Leone Coalition for Budget and Procurement Transparency in the Education Sector


Awareness Times Newspaper in Freetown

August21, 2012

TRANSPARENCY INTERNATIONALSierra Leone

20, Dundas Street, Freetown, Sierra Leone, West Africa P.O Box 1312

Press Release

Monitoring Findings of the Sierra Leone Coalition for Budget and Procurement Transparency in the Education Sector

“The Sierra Leone Coalition for Budget and Procurement Transparency in the Education Sector” supported by Open Society Initiative for West Africa (OSIWA) through its monitoring exercises had so far made the following findings.

1. There are established procurement committees with the required membership in all the entities monitored

2. Most of the procurement units monitored were able to produce documentary evidence of procurement committee meetings, bid documents, etc.

3. All the bid openings were done in public

4. Most of the procurement committees work independently without administrative or  political influence

5. Lack of adequate equipment like computers, printers in all the Procurement Units monitored. This will affect there efficiency of the unit and proper storage of records

6. In some entities, there is semblance of administrative/ political interference in public procurement processes. This will undermine the independence of the Unit

7. In all the entities monitored, there is inadequate number of procurement professionals to effectively handle procurement processes especially in big councils like the Freetown City Council. This is one of the factors responsible for flouting procurement regulations.

8. There is in most cases the absence of technical experts in the preparation of bids and the award of contracts. This can lead to the quotation of wrong specifications of goods, works and services required.

9. In most of the councils monitored, there is no documentary evidence of the 5% retention fee for every contract awarded especially works. This makes it  difficult to track contractors who abandon their contracts before completion

10. There is insufficient teaching and learning materials like text books in most of the schools monitored

11. There is delay, and sometimes non-payment of the 5% retention fees

12. In most of the entities monitored contract details including BOQs are not publicly displayed. This makes monitoring of contract performance very difficult

For more information or clarification please contact Transparency International Secretariat 20 Dundas Street Freetown or call Mr. Edward B. Koroma (Project Coordinator) on the following mobile telephone numbers 076-407979/033-445884/077-173936.

© Copyright 2005, Freetown, Sierra Leone.

Ten foreign firms bid to supply Zambia oil


March 30, 2012

* Current supplier Glencore among bidders

* 12 for separate diesel, petrol supply tender

(Reuters) – Ten foreign companies, including Glencore Energy UK Ltd, have tendered to supply oil to Zambia for a period of two years starting this year, the public procurement agency said on Friday.

The oil should be configured to Zambia’s 24,000 barrels-per-day Indeni refinery, which does not process pure crude oil.

Zambia in February invited tenders for the supply of 1.4 million tonnes of oil after the expiry of a contract with Glencore under a two-year arrangement from March 2010.

Hazel Zulu, the Zambia Public Procurement Agency spokeswoman said Mercury Energy Trading (SA), Agipol Africa Limited, Gunvor (SA) and Crown Hill Investments Limited had also put in bids.

Others are KenolKobil Limited, Trafigura PTE Limited, Vitol SA, Independent Petroleum Group Company of Kuwait and Addax Energy SA, she said…Read more.

Algeria: Parallel economy slows Algerian development


News24.com

March 14th, 2012

AlgiersAlgeria‘s parallel economy and tax evasion cost the state colossal sums and undermine development in the resource-rich north African country, officials and experts say.

About half of Algeria’s 35 000 registered importers – 15 000 of them – are on a national blacklist of swindlers and tax evaders, according to Algeria’s anti-fraud chief Abdelhamid Boukahnoun.

Of those, 12 000 failed to submit company accounts, and the rest were put on the list for illicit trading practices, said Boukahnoun, head of the commerce ministry‘s Control and Fraud Prevention Department.

Operators who are on the list cannot engage in foreign trade or bid for public contracts, and they are deprived of tax advantages.

Trade Minister Mustapha Benbada says the black market accounts for half the revenue made by Algerian businesses.

“Most of the above-board economic agents, who are registered with the trade ministry, are involved in black economy practices,” Benbada told an international business meeting in the capital Algiers on Monday. “Half their revenue is generated by the black economy.”

Over the past three years, unbilled transactions have accounted for 155 billion dinars, according to estimates by his ministry.

But Boukahnoun said the true figure is far higher, closer to €10bn since 2009, and experts estimate that the parallel economy accounts for between 20 and 40 percent of gross domestic product (GDP).

They note that businesses are forced to buy raw materials as well as finished goods from the black market.

Economic dysfunction

As a result, large sums of money circulate outside the banking system to the detriment of the economy, Benbada says.

The former French colony draws the lion’s share of its income from oil and gas while struggling to develop its industrial sector.

The use of payment means other than cash – cheques, transfers and the like – is the only way to guarantee transparency, experts note.

The government tried to require wholesalers to use cheques for transactions over €3 000, but had to back down in January 2011 after riots over soaring food costs claimed five lives and injured hundreds.

Analysts blamed the riots on fears among wholesalers that they would have to pay more in taxes, prompting them to raise their prices.

Benbada said the government had not scrapped the idea, and would try again after “laying the groundwork better.”

Nacer Eddine Hammouda, a researcher at Algeria’s Applied Economic Research Centre for Development, said “economic dysfunction” makes a parallel economy inevitable because the formal sector cannot provide enough jobs to go around.

Unemployment among Algerian youths, which reached 50% 10 years ago, has come down to 21%, according to the International Monetary Fund.

While lamenting the black market, Trade Minister Benbada acknowledged that “it is socially useful as it allows tens of thousands of families to make a living”.

“The weakness of the non-market economy, the non-competitive, monopolistic market, as well as the system of pricing that does not reflect market realities are elements that cause the informal sector to expand,” he said.

Portland Cement launches vetting of suppliers


Business Daily

February 20th, 2012

Troubled East African Portland Cement Company is seeking to overhaul its list of suppliers amid a boardroom wrangle that the government has linked to fraudulent procurement.

In a newspaper advertisement, EAPCC is seeking to vet afresh 98 suppliers of goods and services, saying only companies scoring highly as per its evaluation criteria will be pre-qualified.

“All existing suppliers who wish to be retained in the database (of suppliers) must apply and submit up to date information requested in the current pre-qualification data sheet,” read part of the advertisement.

Analysts say the fresh vetting of the company’ suppliers could be driven by a need to clean up its procurement department in light of the accusation of fraud.

“The company could be moving to ensure their long-running relationship with suppliers is not tainted with fraud and that it gets value for money,” said Robert Nyamu, the head of forensic audit at Deloitte Eastern Africa.

Mr Nyamu said the review of pre-qualified suppliers helps companies to shake off old suppliers who may collude with senior management to push through fraudulent contracts.

Among the items and services EAPCC is seeking to pre-qualify suppliers for include raw materials such as coal, bauxite, and clinker whose recent supply contract sparked off the ongoing court battles.

Industrialisation minister Amason Kingi—who sought to suspend EAPCC’s board on December 22—has accused it of spending Sh1 billion on goods without following competitive bidding and, in another instance, overruled the tender committee to vary the terms of a clinker contract. “Those purchases were made by direct procurement or restricted tendering,” read part of an affidavit by Mr Kingi.

The affidavit, for instance, said the board changed the terms of a contract to supply 140,000 tonnes of clinker after the supplier — Sanghi Industrial -— requested to increase the price from $58.90 per tonne after supplying only 67,000 tonnes.

The irregular purchases were made between August 15 and November 30, 2011, according to the affidavit.

The company’s directors, who have been temporarily reinstated by the high court, have hit back at Mr Kingi, saying the minister wants them out over a multi-billion shilling tender that the government allegedly wanted to go to a local supplier. They said the award of the Sh1.8 billion kiln upgrade contract to a South Korean firm, had upset government officials.

Sierra Leone: Timber!


Al Jazeera

A story of corruption that is stripping the west African country bare.
Illegal logging is laying waste to Sierra Leone’s endangered forests. Despite years of laws and bans, its precious timber is still being exported abroad and unless something is done the country’s woodlands will have been destroyed within a decade. So why can the authorities not do more to stop it?

In this edition of Africa Investigates, reporter Sorious Samura exposes the high level corruption that is stripping his homeland bare.
With an undercover team he discovers that an illegal multi-million dollar timber trade is flourishing under the nose of the government and that associates of one of the most powerful politicians in the country are involved.

In response, the government of Sierra Leone has issued a statement promising to investigate the matters raised in this programme. See the video here.

Kigali to host East African Procurement Forum


AllAfrica
24 October 2011

KigaliRwanda will early next month host the fourth East African Procurement Forum (EAPF), which will bring together about 200 participants from all members states of the regional bloc.The EAPF is held annually on a rotational basis starting from 2008, and the theme for this year is; “Improving the Efficiency of Public Procurement in East African Community for Economic Growth.

It is expected to bring together various players from member states to discuss and come up with plans to develop a mutually agreed public procurement policy in the bloc.

“All actors in public procurement will have chance to discuss several issues involved; they are also expected to come up with strategies to boost public procurement in EAC, as a single bloc.” Said Augustus Seminaga, head of the Rwanda Public Procurement Authority (RPPA

He added that though it is currently possible for any entrepreneur from any of the EAC member state to win a tender in another partner country, there was still need for formulating uniform procedures to address issues like corruption in the tendering processes.

Christophe Nzakamwita, the Director of the Auditing and Monitoring Unit at RPPA, added that Rwanda had achieved a lot in containing graft in public procurement which is a major issue, though statistics were not readily available by press time.

He further explained that most of the few claims of graft are filed by some disgruntled bidders who resort to trading fictitious allegations after failing to fulfil the required conditions.

“Some entrepreneurs don’t present complete requirements and blame tender boards for being corrupt when they fail to make it through,” he said.

“Otherwise, Rwanda has achieved a lot in curbing corruption for the past years, especially due to the strict monitoring by the RPPA, along with the Auditor General’s office”.

Seminega added that RPPA is conducting a series of trainings for bidders in all provinces to increase their skills, and generally boost the sector.

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