Probe officials for graft on tenders, orders Mpango

Dodoma. The minister for Finance and Planning, Dr Philip Mpango, has ordered the Public Procurement Regulatory Authority (PPRA) to report to the anti-corruption watchdog government officials from 17 institutions for graft investigations.

PPRA’s annual performance evaluation report for the financial year 2016/17 submitted to the minister of Finance and Planing yesterday showed that the said officials were implementing 33 projects whose tendering process suggested to have been influenced by graft.

“I will deal with officials who have been mentioned from institutions that are under my ministry. But the rest of the officials should be reported to the Prevention and Combating of Corruption Bureau (PCCB) immediately,” Dr Mpango said soon after receiving the report from PPRA board chairman Marten Lumbanga. About 70 per cent of government’s annual budget goes into procurement.

Briefing the minister, Mr Lumbanga noted that the report covered 81 institutions out of 112. Also 345 projects were inspected out of which Sh483.4 million were found to have been paid to contractors despite the fact that no work was done.

“The tendering processes of about 33 projects implemented by 17 institutions were found to be influenced by corruption,” Lumbanga said. He mentioned some of the 17 institutions whose procurement processes had a high likelihood of corruption as Kwimba and Kibondo District Councils, Nelson Mandela Institute of Science and Technology, ministry of Water and Irrigation, Arusha Technical College, Muhimbili National Hospital and the Institute of Accountancy Arusha. Other public entities include University of Dar es Salaam, Tanzania Revenue Authority and the Arusha International Conference Centre.

“Eight investigations were conducted on 10 procurement contracts with estimated value of about Sh280 billion which were implemented by eight public entities. These investigations were prompted by instructions from higher authorities,” the PPRA report reads in part.

It adds that the investigations revealed that the government incurred losses equivalent to Sh12.15 billion due to delays in paying the outstanding claims of contractors that resulted into the imposition of interest charges and penalties charged for non-adherence of social and environmental requirements before commencement of construction works.

The report further reads that compliance in submitting information on contract awards decreased in the year under review as 186 out of 533 public institutions submitted information on 73,154 procurement contracts worth Sh6.3 trillion compared to financial year 2015/16 where 322 out of 493 institutions had submitted information on 109,575 contracts worth Sh3 trillion.

Only nine out of 21 ministries submitted information on contracts awarded. The total number of contracts awarded by the nine ministries was 2,002 with a total value of Sh150 billion compared to 5,205 contracts worth Sh383.5 billion, awarded by 18 ministries in the preceding year.

Citing the report Mr Lumbanga said PPRA managed to make an intervention on the procurement processes of three tenders with the value of about Sh42.97 billion after realizing that the government would not attain value for money.

“It is estimated that if public entities implemented PPRA recommendations contained in the investigation reports, the government could save about Sh1.62 billion,” Mr Lumbanga noted.

The PPRA annual performance reports started being issued in 2005.

The report further indicates that during the year under review six procurement audit reports were submitted to PCCB for further investigation due to high likelihood of corruption. The concerned institutions were the National Museum of Tanzania, the Dar es Salaam City Council, the Dar es Salaam Rapid Transit Agency (DART), the Tanzania Communications Regulatory Authority (TCRA), the National Assembly and the ministry of Water and Irrigation.

Also procurement audit reports on 21 projects from five audited entities were also submitted to PCCB for further investigation. The projects were being undertaken by Dodoma Municipal Council, Sikonge District Council, National Museum of Tanzania, Ministry of Water and Irrigation, and Rural Energy Agency (REA.)

“Investigation reports involving Muhimbili Orthopaedic Institute (MOI) and TCRA were submitted to PCCB for further investigations,” the report reads in part.

The report also revealed that during financial year 2016/17, value for money audits revealed dubious payments by three public entities in respect of projects worth Sh3.087 billion where a total of Sh483.44 million or 15.6 per cent of the contract sum was paid to contractors for nonexisting or shoddy works.

The entities in question included the NSSF that paid Suma JKT Sh366 million for construction of Gravely Improvement of Dakawa to Mbigiri Sugar Factory Road in Morogoro Region; NSSF also paid Suma JKT Sh98 million for the general maintenance of Ngerengere – Mkulazi road and Farm Boundary Clearance Mkulazi Ward in Morogoro Rural District in Morogoro Region.

Others are Kwimba District Council paid Sh18.7 million to Samka Contractor limited for routine maintenance of Icheja - Mwandubi road (6.4km) and construction of culverts and side drains of Ngudu urban roads.