Kampala — AN audit report into the Commowealth Heads of Government Meeting (CHOGM) activities has revealed that the country lost over sh4b in over-payment for road repairs within Kampala city and Entebbe International Airport to several contract firms.

Out of the 48 infrastructural repairs, 18 projects received excess funds, said the Auditor General in the engineering audit of Chogm activities report. Projects such as repairs of parts of Kampala Road were in excess of sh119.9m, pavements by over sh107m, for sidewalks payment was in excess of sh132m, drainage lines sh11m, drainage covers by over sh129m and surface dressing was over paid by sh12m.

The audit also found that the continuous line in white or yellow thermoplastic road marking within the city was instead made with ordinary paint but the rate was not decreased from sh5,500 to sh2,400 per metre.

Excess payments were also made for construction of the Munyonyo marina to the tune of sh44m and guard rails (chain and post) around habour walls at sh56m. The VVIP terminal at Entebbe Airport was overpaid by sh120m. The report noted that most of these roads have since developed potholes as the roads were either old, poorly done or patching was not finished.

"Many of the roads are showing signs of distress due to their age and many new potholes were seen during the visit. "There was no difference between old and new kerbs as what were claimed as new looked old," read the report.

The report also highlights gross irregularities in the tendering and awarding of contracts, deviation from procedure and over designing of a number of projects, through which the Government could have lost colossal sums of money.

The report does not state how much could have been lost in total for both roads and airport repair but states that: "Quantities paid for work items were higher than the approximate quantities found at the sites, for example at the construction of the VVIP Terminal and associated civil works."

Other projects, the report notes, were over designed, hence wastage.

"For some projects, funds utilised were excessive in respect of the purpose for which the facilities were intended to serve. For example, the Munyonyo Marina construction concrete thickness of 200mm and paving of driveways, parking and walkways at the Munyonyo Speke Resort for the asphalt thickness of 50mm. A thickness of 100mm and 30mm respectively could have sufficed."

It also noted that many variations on a number of projects in the course of implementation, for example the domestic terminal at Entebbe International Airport and the Munyonyo Marina, "are a result of inadequate undertaking of needs assessment to ascertain the full requirements or end use of the facilities."

The audit by the Auditor General points out that most of the procurement procedures chosen for the majority of activities audited was restricted domestic tendering as opposed to Open Domestic Bidding, denying the Government of competitive pricing and quality.

The value for money audit report says of the audited activities, 31 were procured through restricted domestic tendering; eight by open domestic bidding, four through pseudo estimates method and one by direct procurement method.

"The preferred method would have been Open Domestic Bidding, especially for works contracts. This would have increased the competitiveness of the bids," the Auditor General observed in the 212 page report submitted to Cabinet.

The report recommends that Open Domestic Competitive Bidding should always be used to ensure transparency in securing contractors.

Other recommendations include the need for accounting and finance officers and internal Audit sections to ensure that documentation for given contracts are attached to payment requisition and the Ministry of Works and Transport, Evaluation and Contracts committees should be specific in their recommendations for contract awards.

Confidential cost estimates for all future projects be prepared; and that contract variations that exceed the contract committee's allowable thresholds of 25% should always be forwarded to PPDA for clearance prior to implementation of the respective works.

However, the report noted that most of the payment processes for most of the works and services audited were not breached."

Among the irregularities, the report notes that 17 out of the 48 audited activities lacked the Engineers' estimates to guide the evaluation committee during their assessment of bids, "and where the estimates were available they were far below the bids received from bidders."

It also notes that 33 project activities had variations issued, seven of which were signed after implementation, 24 of which were still pending signature by audit time and two not yet approved by the contracts committee.

The audit, which looked into the procurement and financial aspects of the activities, however, on the technical aspects lauded the quality of work done, noting: "The quality of work done under the projects audited was found to be good and the facilities are providing the services they were intended for."

In December 2007, Cabinet requested the Auditor General to undertake a value-for-money audit on CHOGM activities following complaints from MPs.