Dar es Salaam. Uhuru Publications Limited, a company owned by the ruling CCM, procured printing services for Sh524.77 million from two firms without following tendering procedures, the Controller and Auditor General (CAG) has revealed.
In the audit report for 2017/18, the CAG, Prof Mussa Assad, noted that the company paid Sh423.53 million to M/S FG Flint Graphics Company and Sh101.24 million to M/S Kill Deep Sea & Printing Services Company as printing costs for Uhuru and Mzalendo newspapers.
However, Uhuru Publications Limited did not apply proper tendering procedures on procurement of services from both companies.
“I observed that no formal contract was entered between Uhuru Publications Limited and M/S FG Flint Graphics Company Limited,” the CAG stated.
He also added that, “The agreement with M/S Kill Deep Sea Printing Service was not signed at the time of delivery in May 2018 instead the contract was signed on November 3, 2018 five months later after service delivery.”
He said that failure to apply proper tendering procedure denies Uhuru Publications Limited an opportunity to obtain the best offers on services or goods procured and in addition may lead to delivery of substandard services.
“I strongly recommend to the Secretary-General CCM to comply with Public Procurement Procedures on all its purchases for the attainment of value for money and thus create confidence to all party members,” Prof Assad said.
Further, the CAG also advised the owner, CCM, to inject additional working capital along with formulating competitive sales and marketing strategies for effective market success after the company registered a decline in revenue for three consecutive years.
“A declining trend of revenue has a negative impact on the performance and sustainability of service potentials.”