PROCUREMENT audits carried out by the Public Procurement Regulatory Authority (PPRA) for the financial year ending June, 2013 revealed that dubious payment to contractors amounting to 2.1trn/- was unjustifiably paid to contractors by 23 Public Entities (PEs) for works not done.
Unveiling the latest financial report in Dar es Salaam on Friday, the PPRA Board Chairman, Matern Lumbanga said embezzlement of tax payers money would not be tolerated and the guilty party deserved punishment.
He said the auditing that focused on compliance and value for money observed weaknesses that included unrealistic prepared bills of quantities and pre-tender estimates due to the inadequate assessment of the projects sites.
"Inaccurate computation of quantities, inadequately prepared specifications and ambiguous drawings or drawing of items in the bills of quantities leading to unnecessary variations to projects costs were among other discrepancies which should be addressed squarely," Lumbanga suggested Flanked by the PPRA Acting Chief Executive and other Board members, Mr Lumbanga said inappropriate procurement planning caused delays in implementation of projects.
"Delayed payments to contractors and consultancy caused by erratic cash flows from the government or donors together with weak lack of site management meetings resulted to misappropriation of funds," he explained.
In that respect, he added, the audit findings revealed that out of 207 audited projects , 47 of the audited projects performed well (above 75 per cent) signifying that projects objectives were likely to be achieved and value for money to be realized.
"A total of 109 of the audited projects performed fairly (between 50 per cent and 75 per cent). It should be noted that these significant weaknesses which if not properly addressed the projects are unlikely to achieve intended objectives thus value for money will not be realized in totality," he explained.
However, 51 audited projects performed poorly (below 50 per cent) suggesting that most of the objectives of the projects were not achieved hence value for money unlikely to be achieved as well.
"In view of these findings, it means that a total of 10.27bn/- allocated for the 51 projects were not properly utilized," he added Therefore, based on the compliance audits PPRA commends all 13 PEs with good performance.
These are Babati District Council, Bukoba District Council and College of Business Education, Others are DAWASA, Drilling and Dam Construction Agency, East Africa Statistical Training Centre (EASTC), Institute of Accountancy, National Housing Corporation, National Social security Fund, Tanzania Social action Fund, the University of Dar es salaam and UWASA- Arusha.
As for Public Entities with poor performance, the accounting officers, tender boards' chairmen and heads of procurement management units will be summoned before the Board of Directors of PPRA to give reasons for poor performance and to discuss strategies to address the observed shortfalls.
The said PEs are Korogwe District Council, Chamwino District Council, Kilwa District Council, Singida Municipal Council, Kigoma District Council, Lindi and Mtwara Regional Administrative Secretaries, Bukoba and Urban Water and Sewerage Authority.
Others to appear before the Board include Moshi Urban Water and Sewerage Authority, Kariakoo Market Corporation, Ministry of Communication and Technology, DAWASCO and Mtwara Urban Water and Sewerage Authority.