Maravi

Auditor General's report reveals flaws in procurement at NIPA

Auditor General's report reveals flaws in procurement at NIPA
By Moses Kuwema
Mon 28 May 2012, 13:28 CAT

THE 2010 Auditor General's report has revealed that the National Institute of Public Administra-tion procured goods and services worth over K2 billion without obtaining the required three competitive quotations.

Section 1.4 of the public procurement Act stipulates that procurements valued above K5 million and up to K15 million shall be submitted to the tender committee for the examination and authorisation, subject to an assessment of at least three competitive quotations obtained from reputable or registered suppliers based on conformity with specifications, delivery schedules and prices or comparative prices.

However, contrary to procurement guidelines, the institute procured goods and services in amounts totalling K2,402,664,163 in 2010 without obtaining the required three competitive quotations, according to the report.

"Contrary to public stores regulation number 16, there were no receipt and disposal details in respect of various stores items costing K4,278,297,653 (general stores - K3,742,449,630 and K535,848,023 for fuel) procured during the period under review," read the report.

The report further revealed that assets valued at K5,425,649,896 did not have identification marks and no register was maintained.

The report also observed that NIPA main campus and Burma Road campus buildings located at stand number 3542 and 353, respectively, all valued at K2.2 billion had no title deeds.

This was contrary to the lands Act number 29 of 1995 that requires that institutions or individuals owning land should have or possess title deeds as proof of ownership.

The Auditor General's report also revealed that the NIPA governing council had two representatives from the private sector instead of one and this resulted in the council consisting of 10 members instead of nine as provided in article five of the NIPA Act.

And the report has revealed that the Zambia Postal Services Corporation (Zampost) entered into a lease agreement to rent a house on plot number 623 Salama Park, Ibex Hill for the area manager in Lusaka where the corporation paid rentals to the landlord amounting to K20,527,500 net of withholding tax for the period from October 22, 2011 to April 21, 2012.

The audit report has, however, observed that the property was owned by the area manager, and that although he declared interest on October 26, 2011, this was only made after the agreement had been signed on October 20, 2011 and rentals paid on October 25, 2011.

The report observed that the declaration was done in bad faith and the area manager's actions were tantamount to fraud.

The report further stated that the declaration of interest by the area manager could not have justified management's action of renting the property.

Labels: AUDITOR GENERAL, PROCUREMENT SYSTEMS

posted by MrK @ 4:41 PM