Download Ugandan Procurement Practices

Procurement Capacity
Strengthening Initiatives in
Uganda: an Anti-Corruption
approach
Presented at the 3rd OECD-DAC Joint Venture on
Procurement held in Arusha, Tanzania
5th - 7th May 2008
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Theme of the Presentation
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Overview of the procurement reforms in
Uganda
PPDA Capacity Building interventions
Other Anti- Corruption Initiatives
Monitoring and Enforcement mechanisms
National Public Procurement Integrity Survey
Challenges
Way Forward
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Uganda
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Population 27
million
Area 241,000
square
kilometres
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Objectives of the Procurement Reforms
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Reforms started in 1999 with a Task Force aimed at:
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Transparency and Accountability - to fight waste and
corruption
Fairness/ Equal opportunity for all in the bidding
process
Integration of the public procurement system with
public financial management framework
Providing a more attractive investment climate by
lowering risk
Maximising competition to satisfy customer needs and
ensure value for money
A streamlined procurement process through the
gradual adoption of electronic commerce
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Establishment of Decentralized Public
Procurement System in Uganda
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Key features of the procurement legal reforms
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PPDA Act of 2003 abolished the Central Tender
Board and established PPDA as the national
regulatory body for public procurement
PDEs mandated to undertake unlimited procurement
and disposal subject to standard practices and
procedures prescribed by law
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Publication of detailed procedural regulations and
standard formats, guidelines and standard bidding
documentation.
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Harmonization of local government procurement
with national standards achieved in 2006
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Capacity Building Interventions
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The 5th strategic objective of PPDA under the
Corporate Plan is to “Build procurement and disposal
capacity”.
PPDA is implementing a 5 year Capacity Building
Strategy that is aimed at promoting awareness of the
PPDA Act through training programs for PDEs,
Providers and CSOs involved in anti-corruption.
PPDA has conducted capacity needs assessments for
central and local government PDEs and for providers to
identify the capacity gaps that hinder the effective
implementation of the law.
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Capacity Building Interventions
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Promoted a Bill for the formation of a National
professional institute for procurement professionals
(IPPU) and raise professional ethics through an
accreditation and certification mechanism to ensure
that entry into the profession is restricted to suitably
qualified professionals.
Participated in the setting of minimum education
standards and curricula for tertiary institutions that
offer procurement courses to the public. (Diploma,
Degree & Masters level)
Recognition of the importance of the roles of related
professional bodies by developing linkages with
them and participating in their training programmes.
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Capacity Building Interventions
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Implementation of a Publicity Strategy that targets CSOs
and general public through print and electronic media.
Establishment of the Public Procurement Policy Unit in
Ministry of Finance charged with:
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Policy guidance and technical support to PS/ST
on procurement policy matters
Deployment of the procurement professionals to
PDEs and Professional development of the
procurement cadre.
Development of amendment proposals to the
PPDA Act and Regulations.
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Other Anti-Corruption Initiatives
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PPDA is a member of the Accountability Sector
Working Group and is also a member of the Inter Agency Forum that implements the National AntiCorruption Strategy.
PPDA is one of the beneficiary institutions under the
MCC Anti-Corruption Threshold Country Plan
Project under which IFMS is to get procurement
module.
Key principle of decentralised system is the
Segregation of roles and independence of the
powers of the Procurement structures – i.e.
Governing bodies, AO, CC, PDU, EC.
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Other Anti-Corruption Initiatives
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Establishment of the Register of Providers to ensure that
data on providers is more transparent and available to all
actors in the procurement process, serves as a basis for
monitoring their performance and compliance with the
law.
Issuing of Standard solicitation documents to PDEs that
provide standard terms and conditions.
Legal requirement for Bid notices to be published in at
least one newspaper of wide circulation and displayed on
the PDE’s notice board and on the PPDA website on
www.ppda.go.ug
Statutory periods for procurement processes e.g.
advertising, bidding, display of notices and handling of
complaints
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Other Anti-Corruption Initiatives
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Mandatory requirements for PDEs to hold
Pre-bid meetings for high-value and complex
tenders with have the Bids read out and
recorded at public bid openings.
Enforcement of Procurement Planning on an
annual basis based on approved budgets
Issued Ethical Codes of Conduct for public
officers and Bidders - Mandatory declarations
Legal definition of corrupt and fraudulent
practices in procurement.
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Monitoring and Enforcement Mechanisms
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PPDA Monitors through;
 Review of the monthly/quarterly reports
submitted by PDEs.
 Compliance assessments on agreed
compliance indicators. (Among pilot countries
for OECD-DAC assessment methodology)
 Procurement audits that contain agreed action
plan for corrective actions and follow up of
their implementation.
 Civil Society and the general public.
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Monitoring and Enforcement Mechanisms
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PPDA Enforces by;
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Investigation of procurement cases where malpractice is
suspected and recommending disciplinary action against the
officers responsible for implementation by AO, PS/ST, Head of
Public Service, IGG, etc.
Submission of findings and recommendations from audits and
investigations to the Auditor General for Parliamentary oversight.
Hearing of administrative review appeals (2 Tier Complaints
System)
Suspension of Providers who breach the Ethical Code of Bidders
Liaison with law enforcement agencies on investigation and
prosecution of Offences under the Act.
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National Public Procurement Integrity
Baseline Survey, 2006
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Integrity Survey was conducted in 33 LGs and 13
CG PDEs by PPDA and Office of the Inspector
General of Government and was funded by USAID
Main objectives of the Survey were to :
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Assess the extent to which corruption is perceived as
influencing the outcome of public procurement and disposal
in Uganda
Identify deterrent and other measures which are perceived
as being effective in reducing the incidence of corruption
and in changing attitudes to corruption.
Identify the vulnerable points in the procurement and
disposal system.
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National Integrity Survey 2006
Findings of the Survey:
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Losses due to Procurement Related Corruption - 7.19 – 9.4% of
total contract values were identified as being paid by way of corrupt
payments in procurements at both CG and LG levels.
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CG Perception about Corruption -73% - 79% of the CG
interviewees said corruption was non-existent or very limited in CG
procurement while LGs perceived procurement corruption at the CG
level to be most prevalent in the higher levels of management
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Identified causes of Corruption- Cultural reasons, Lack of
independent and effective judiciary, Lack of effective incentive
mechanism for public officials, such as lack of promotion on merit,
Economic policies, Lack of effective reporting system, Lack of
transparent and accountable procurement processes.
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Effective anti-corruption measures- Permanent prohibition of a
person convicted of corruption from holding any public office, restitution
order to seize assets, Payment of informers/whistleblowers on
conviction of offender, Increase salaries, Change legal burden of proof
and Taxation penalties.
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Level of Tolerance to Corruption - 95% of the interviewees
perceived corruption as a serious offence. This contradicted other
assertions that Uganda is tolerant to corruption
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Identified causes of corruption
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National Integrity Survey 2006
(Statistical Implications)
Cumulative %
Insttitution
Dishonesty/
Corruption (5.1) %
Corruption
levels(5.2) %
Average
Cummulative %
Uganda Police
79.2
79.3
79.25
Ministry of Health
68.6
72.7
70.65
Higher LG- Political Leaders
67
68.3
67.65
Low er LG- Political Leaders
62.8
65
Higher LG Civil Servants
59.6
62.4
61
National Medical Stores
52.6
59.8
56.2
Low er LG Civil Servants
51.8
53
52.4
Regional Ref erral Hospitals
49.6
55.1
52.35
Min. of Finance
49.1
55
52.05
Parliament of Uganda
50.4
50.5
50.45
Min. of Local Government
49.9
50.6
50.25
Min. of Water, Lands & Environment
41.8
54.7
48.25
41
47.5
44.25
IGG’s Of f ice
38.4
42
40.2
Min. of Agriculture
35.6
42.6
39.1
PPDA
28.2
37
32.6
27
34.5
30.75
26.6
31.7
29.15
Min. of Education & Sports
Local Gov’t Finance Commission
Min. of Gender Labour & Soc-Dev’pt
63.9
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Challenges
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Procurement capacity strengthening is closely linked to the
broader issues of good governance and political and
social transformation therefore capacity building and the
development of professionalism is a long-term process
The poor record keeping culture has resulted in lack of
comprehensive statistics on the value of goods, services
and works procured and on the key indicators under
procurement process. This is exacerbated by the limited
use of electronic commerce.
There are still problems of political interference with
procurement process, particularly at local government
level.
The limited enforcement powers of PPDA and overlap of
mandates with other bodies requires close collaboration in
the implementation of capacity development strategies.
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Way Forward
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Need to establish an effective monitoring and
evaluation of the public procurement systems to
determine capacity gaps at individual, organisational
and country levels.
Need to determine the risks and vulnerable points at
each stage of the procurement/disposal process and
put in place strategies to mitigate them.
Emphasise the importance of consistent political
commitment and support from the highest levels of
government .
Build Partnerships and establish linkages with civic
organisations, oversight agencies and donor partners
to accelerate the fight against corruption.
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Thank You for Your Attention
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