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REPORT ON COMPLIANCE CHECKS UNDERTAKEN ON 120

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					REPORT ON COMPLIANCE CHECKS UNDERTAKEN
  ON 120 PROCURING AND DISPOSING ENTITIES




               18th September 2008




                                        1
                          TABLE OF CONTENTS
                                                                     Page
      Acronyms                                                        7

      EXECUTIVE SUMMARY
1.0   INTRODUCTION                                                    8

1.1   Background                                                       8
1.2   Scope of the Compliance Checks                                   8
1.3   Methodology used for the Compliance Checks                       8
1.4   Time Frame                                                       9
1.5   Limitations                                                     10

2.0   MAIN FINDINGS                                                   11

2.1   Entity Performance by Compliance Area                           11
      2.1.1 Procurement Structures                                    11
      2.1.2 Procurement Planning                                      14
      2.1.3 Solicitation and Bidding Procedures                       16
      2.1.4 Evaluation Procedures                                     18
      2.1.5 Contract Award and Management                             19
      2.1.6 Reporting                                                 21
      2.1.7 Performance of Contracts Committees                       24
      2.1.8 Record Keeping                                            25
2.2   Overall Performance of Entities                                 28
      2.2.1 Performance of Central Government PDEs                    28
      2.2.2 Performance of Local Government PDEs                      28
      2.2.3 Comparison of Performance of CG PDEs and LG PDEs under    29
            Compliance Areas

3.0   COMPLIANCE RATINGS OF ENTITIES                                  32

3.1   Central Government Entities                                     32
3.1.1 Ministries                                                      32
      Ministry of Defence                                             32
      Ministry of Energy and Mineral Development                      36
      Ministry of Finance, Planning & Economic Development            39
      Ministry of Gender, Labour and Social Development               42
      Ministry of Information and Communications Technology           45
      Ministry of Internal Affairs                                    48
      Ministry of Justice and Constitutional Affairs                  52
      Ministry of Lands, Housing and Urban Development                55
      Ministry of Public Service                                      58
      Ministry of Trade, Tourism and Industry                         61
      Ministry of Water and Environment                               65
      Ministry of Works and Transport                                 68




                                                                            2
3.1.2   Government Departments / Agencies             71
        Auditor General                               71
        Courts of Judicature                          75
        Directorate of Public Prosecutions            78
        Inspectorate of Government                    81
        Internal Security Organisation                84
        National Curriculum Development Centre        87
        Office of the Prime Minister                  90
        Parliament of Uganda                          93
        Population Secretariat                        97
        Privatization Unit                            101
        Rural Electrification Agency                  104
        State House                                   107
        Uganda Police                                 111
        Uganda Prisons Service                        114

3.1.3   Statutory Bodies                              117
        Capital Markets Authority                     117
        Cotton Development Organisation               120
        Diary Development Authority                   123
        Electricity Regulatory Authority              126
        National Environment Management Authority     129
        National Forest Authority                     132
        National Planning Authority                   135
        Uganda Coffee Development Authority           138
        Uganda Investment Authority                   141
        Uganda Revenue Authority                      145

3.1.4 State Enterprises                               148
      Micro Finance Support Centre Ltd                148
      National Housing and Construction Company Ltd   152
      National Water and Sewerage Corporation Ltd     156
      Post Bank (U) Ltd                               159
      Posta Uganda Ltd                                162
      Uganda Development Bank                         165
      Uganda Electricity Distribution Company         169
      Uganda Electricity Generation Company           172
      Uganda Electricity Transmission Company         175
      Uganda Printing and Publishing Corporation      178
      Uganda Property Holdings Ltd                    181

 3.1.5 Commissions                                    185
       Education Service Commission                   185
       Health Service Commission                      188
       Local Government Finance Commission            191
       Public Service Commission                      194
       Uganda AIDS Commission                         198
       Uganda Communications Commission               201


                                                            3
      Uganda Human Rights Commission                204
      Uganda Insurance Commission                   207

3.1.6 Regional Referral Hospitals                   210
      Arua Hospital                                 210
      Gulu Hospital                                 213
      Masaka Hospital                               216
      Mbale Hospital                                220
      Mulago Hospital                               224
      Soroti Hospital                               227

3.1.7 Training Institutions                         231
      Gulu University                               231
      Kyambogo University                           234
      Law Development Centre                        237
      Makerere University Business School           241
      Management Training and Advisory Centre       244
      Uganda Management Institute                   247

3.1.8 Councils                                      251
      National Council for Children                 251
      National Council for Higher Education         254
      National Council for Science and Technology   258

3.1.9 Boards                                        261
      Uganda Export Promotion Board                 261
      Uganda National Examination Board             265

3.2   Local Government Entities                     268

3.2.1 Districts                                     268
      Adjumani District                             268
      Apac District                                 271
      Budaka District                               275
      Bundibugyo District                           279
      Bushenyi District                             282
      Busia District                                286
      Gulu District                                 289
      Hoima District                                292
      Iganga District                               296
      Isingiro District                             300
      Kabale District                               304
      Kalangala District                            307
      Kamwenge District                             310
      Kanungu District                              313
      Kapchorwa District                            317
      Kasese District                               321
      Kayunga District                              325


                                                          4
       Kibaale District                     328
       Kiboga District                      332
       Kiruhura District                    336
       Kisoro District                      339
       Luwero District                      342
       Masaka District                      345
       Mbale District                       349
       Moyo District                        353
       Mpigi District                       356
       Mubende District                     359
       Mukono District                      363
       Nakasongola District                 366
       Namutamba District                   370
       Nebbi District                       374
       Oyam District                        378
       Pader District                       381
       Pallisa District                     384
       Rukungiri District                   388
       Sembabule District                   392
       Wakiso District                      395

3.2.2 Municipalities                        399
      Arua Municipality                     399
      Entebbe Municipality                  402
      Fort Portal Municipality              406
      Gulu Municipality                     409
      Jinja Municipality                    413
      Kabale Municipality                   417
      Kampala City Council                  420
      Lira Municipality                     424
      Mbarara Municipality                  427
      Soroti Municipality                   431
      Tororo Municipality                   434


4.0   RECOMMENDATIONS AND WAY FORWARD       438

4.1   Procurement Structures                438
4.2   Procurement and Disposal Planning     438
4.3   Solicitation and Bidding Procedures   439
4.4   Evaluation Procedures                 440
4.5   Contract Award and Management
4.6   Reporting
4.7   Performance of Contracts Committees
4.8   Record Keeping
4.9   Way Forward                           440




                                                  5
ANNEXES                                                                      442

Annex I - Compliance Assessment Tool                                         442
Annex II – Overall Performance of the 120 PDEs                               449
Annex III – Performance of PDEs by category                                  459
Annex IV- Number of Contracts Committee and PDU members in each PDE          469
Annex V – Overall Ranking of LG and CG PDEs

FIGURES                                                                      13

Fig. I – Performance of CG PDEs under Procurement Structures                 13
Fig. II - Performance of LG PDEs under Procurement Structures                13
Fig. III- Performance of CG PDEs under Procurement / Disposal Planning       15
Fig. IV - Performance of LG PDEs under Procurement / Disposal Planning       16
Fig. V - Performance of CG PDEs under Solicitation and Bidding Procedures    17
Fig. VI - Performance of LG PDEs under Solicitation and Bidding Procedures   17
Fig. VII - Performance of CG PDEs under Evaluation Procedures                18
Fig. VIII- Performance of LG PDEs under Evaluation Procedures                19
Fig. IX- Performance of CG PDEs under Contract Award and Management          20
Fig. X- Performance of LG PDEs under Contract Award and Management           21
Fig. XI - Performance of CG PDEs under Reporting                             23
Fig. XII - Performance of LG PDEs under Reporting                            23
Fig XIII - Performance of CG Contracts Committees                            24
Fig XIV - Performance of LG Contracts Committees                             25
Fig. XV- Performance of CG PDEs under Record Keeping                         26
Fig. XVI- Performance of LG PDEs under Record Keeping                        27
Fig. XVII-Performance of CG PDEs under all Compliance Areas                  28
Fig. XVIII-Performance of LG PDEs under all Compliance Areas                 29
Fig. XIX – Compliance Rating of CG PDEs                                      30
Fig. XX - Compliance Rating of LG PDEs                                       31




                                                                                   6
                         LIST OF ACRONYMS


AG          Attorney General
AO          Accounting Officer
CAO         Chief Administrative Officer
CC          Contracts Committee
CG          Central Government
EC          Evaluation Committee
IGG         Inspector General Government
GoU         Government of Uganda
LG          Local Government
LGA         Local Government Act Cap 243
LGPDR       Local Government Procurement and Disposal RegulationsNo.39/ 2006
LPO         Local Purchase Order
MOFPED      Ministry of Finance, Planning & Economic Development
MOJCA       Ministry of Justice and Constitutional Affairs
MOLG        Ministry of Local Government
OAG         Office of Auditor General
PDE         Procurement and Disposal Entity
PDU         Procurement and Disposal Unit
PPDA        Public Procurement and Disposal of Public Assets Authority
PPDA Act    Public Procurement and Disposal of Public Assets Act No. 1/2003
PPDA Reg.   Public Procurement and Disposal of Public Assets Regulation, No.70/2003
PRSC        Poverty
PS/ST       Permanent Secretary/Secretary to the Treasury
SBD         Standard Bidding Document
SG          Solicitor General
TC          Town Clerk
UD          User Departments
WB          World Bank




                                                                                      7
                                EXECUTIVE SUMMARY


This report presents the key findings and recommendations of a Compliance Check exercise undertaken
by the Public Procurement and Disposal of Public Assets Authority (PPDA) between May and August
2008. The main objective of the exercise was to assess the compliance levels of 120 PDEs (72 Central
Government Entities and 48 Local Government Entities) as a national representative sample of all the
procuring and disposing entities that are currently slightly over 200 in number.

Main Findings
The exercise was undertaken on the basis of a Compliance Rating Tool that covered 8 Compliance
Areas. The following is a summary of the main findings under each of the eight compliance areas:

Procurement Structures
      Out of the 120 PDEs assessed 48 PDEs (40%) were not compliant to the legal requirement of
      having the full membership of the 5 Contracts Committee members approved by the Secretary
      to the Treasury.
      A number of Donor funded projects were not using procurement structures of the PDE.
      Some of the LG PDEs had not yet filled the positions for the Procurement and Disposal Unit
      staff with procurement professionals.

Procurement Planning
      Out of the 120 PDEs assessed, 69 PDEs (57.5%) had a procurement plan that was being
      followed by the PDE.
      LG PDEs faced challenges in preparation of procurement plans since their User Departments
      include Town Councils and sub-counties which are geographically distant from the PDU.
      Few PDEs had in place framework contracts for procurement of repetitively procured or
      common user items.

Solicitation and Bidding Procedures
        Most CG PDEs were using the standard solicitation documents in the standard format issued by
        PPDA
        LG PDEs not applying standard formats since the LG (Procurement and Disposal) Guidelines
        had only recently been issued to them.
        A number of procurements sampled did not adhere to the thresholds in the determination of
        procurement methods and direct procurements were common especially for Regional Referral
        Hospitals.

Evaluation Procedures
      Some PDEs had no record at all of the evaluation process for any of the procurement cases
      reviewed and others flouted the evaluation procedures and criteria.
      LG PDEs need more training in this area since some Contracts Committees had appointed one
      evaluation team for all procurements.
      Few of the procurement files reviewed had a signed record of the acceptance of code of ethical
      conduct by the Evaluation Committee members.

Contract Award and Management
      Many irregularities noted under this area and very few PDEs had records on contract
      management on the files reviewed.



                                                                                                  8
       Most of the LG PDEs were not compliant to the legal requirement to seek the Attorney
       General’s clearance for contracts above Ug Shs. 50m was hardly adhered to by the Local
       Government PDEs.
       Few LG PDEs had copies of the signed contracts on the files making it difficult for the PDU to
       monitor the implementation of the approved contract.
       For most contracts, there was no appointment of contract managers and no contract monitoring
       or supplier appraisal reports prepared.

Reporting Requirements
      There was poor compliance by LG PDEs to this requirement and some CG PDEs with sub
      divisions had incomplete and infrequent submissions to PPDA.
      Some Entities were not including all the procurements and disposals undertaken in the reports
      sent to PPDA
      PDEs that had sub-delegated Contracts Committees were not submitting reports to PPDA
      through the main Contracts Committee.

Performance of Contracts Committee
      Some of the Entities had no consistent records for the Contracts Committee meetings and
      decisions.
      A number of the CCs had granted retrospective approvals for procurements undertaken by user
      departments as emergencies.
      For both CG and LG PDEs the record of Acceptance of Code of Ethical Conduct for Contracts
      Committee members was not signed by the members at each meeting

Record Keeping
      For both CG and LG PDEs the record keeping culture in the PDEs was very poor with key
      documents scattered in several files or in different departments within the PDE.
      Many of the individual transactions lacked procurement or disposal reference numbers.
      The PDU lacked adequate storage facilities to store the bulky bidding documents and files

The overall performance under the compliance areas revealed that the compliance area where both CG
and LG PDEs scored highest was under Procurement Structures and the compliance areas under which
they scored lowest were the following:
       Record keeping; and
        Contract Award and Contract Management.

Out of the 72 CG PDEs, the performance of 48 PDEs (40%) was rated as satisfactory and above while
for the 48 LG PDEs, 13 PDEs (27%) scored satisfactory and above.

Key Recommendations

The main recommendations of this report arising from the findings are the following:

   1. The need to strengthening the Institutional Framework by ensuring the full composition of all
      Contracts Committees and establishment of the Procurement and Disposal Unit manned by
      procurement professionals in all PDEs.

   2. Enforcement of Procurement and Disposal Planning. Accounting Officers should be required to
      support their budget estimate submissions with procurement plans as a pre-condition of
      approval by MOFPED and Parliament. PPDA should publish the list of PDEs that are not


                                                                                                   9
   compliant to this requirement in the press and refer them to the PS/ST with a recommendation
   to withhold funding for these PDEs.

3. The need to reduce the overall procurement lead time by having maximum statutory time
   frames for key stages in the procurement cycle.

4. The need to promote the achievement of value for money by preventing PDEs from eliminating
   fairly priced bids on their failure to meet eligibility criteria and thus the need for PPDA to
   provide guidance to PDEs on which criteria should be evaluated under the Preliminary
   evaluation process and which should fall under post qualification.

5. The need to enforce the requirement for submission of complete monthly and quarterly of
   reports to PPDA in a timely manner by publication of the list of non compliant PDEs and
   referring them to the PS/ST for disciplinary action.

6. The PPDA Act should be revised to clearly provide for what amounts to a conflict of interest in
   procurement and disposal process and the procedures applicable where such conflict exists.

7. Follow up compliance checks should be undertaken on all the PDEs assessed. For the PDEs that
   are found to be persistent offenders as regards proper record keeping they should be referred to
   PS/ST and Head of Public Service for stringent disciplinary measures.

8. The need to conduct tailored training programmes for the Entities on the compliance areas
   where they rated less than satisfactory.

The results of the compliance rating of the 120 PDEs are to be circulated to all the key stakeholders
in particular the competent authorities for their further action on the above recommendations. The
specific PDE recommendations in this report will be given action time frames for implementation
by each of the PDEs and are to be followed up by PPDA in future compliance checks.




                                                                                                  10
1.0    INTRODUCTION

1.1    Background

       The Public Procurement and Disposal of Public Assets Authority is the regulatory and oversight agency
       that advises Government on matters relating to public procurement and disposal. Under Section 6 (d)
       and 7 (r) of the Public Procurement and Disposal of Public Assets Act and Regulation 6 (e) (iii) of the
       Public Procurement and Disposal of Public Assets Regulations, the Authority is mandated to monitor
       compliance of procuring and disposing entities, administer and enforce compliance with all the
       provisions of the Act, Regulations, Guidelines, solicitation documents and specification standards
       issued by the Authority. To this end, the Authority instituted compliance checks on 120 procuring and
       disposing entities (PDEs) as a representative sample of all the PDEs.

1.2    Scope of the Compliance Checks

       In order to have a uniform assessment of all PDEs, the Authority adopted a Compliance Rating Tool
       with 8 Compliance Areas. Each Compliance area had 3-5 compliance indicators that were scored under
       a Graphic Rating Scale ranging from a minimum score of 0 to a maximum score of 2. Each compliance
       indicator was based on a legal requirement under the PPDA Act, LG Act and Regulations / Guidelines
       made there under. In addition the rating system indicated the source of information and the means of
       verification for each compliance indicator to improve the quality and ease the verification of the results.

       The following were the 8 Compliance Areas under the Compliance Rating Tool:
          (a) Procurement Structures.
          (b) Procurement Planning
          (c) Solicitation and Bidding procedures
          (d) Evaluation procedures
          (e) Contract award and management
          (f) Reporting Requirements
          (g) Performance of Contracts Committee
          (h) Record Keeping

       The scores of the 120 Entities have been rated ranging from Highly Satisfactory to Highly
       Unsatisfactory at two levels, namely-
          (a) Assessment of a Compliance Area within a PDE; and
          (b) Assessment of the Overall Compliance of a PDE.

       Under the above compliance rating system, each PDE was rated basing on actual compliance with the
       indicators under each compliance area. The system of rating system was able to clearly highlight the
       differences in the overall performance of the different PDEs as well as under the specific compliance
       indicators. The Compliance Assessment Tool on which the 120 Compliance checks were conducted is
       in Annex I of this report.

1.3    Methodology for Compliance Checks

1.3.1 Selection of the PDEs
      The Authority identified the 120 PDEs on which the compliance checks were to be undertaken based
      on the following criteria:
      (a) Reference to the planned audits of the Procurement Audit and Investigations department to ensure
      that there were no overlaps by the Authority in the same PDEs.


                                                                                                               11
       (b) Reviewing monthly/quarterly reports and risk ratings from previous procurement audits, frequency
       of administrative review complaints and waiver requests.
       (c) Assessment of PDEs’ annual budgets, value and complexity of the procurements handled.
       (d) The size of the PDE in terms of staffing and geographical spread as well as their classification into
       categories of large, medium and small PDEs by the Ministries of Public Service and Local
       Government.
       (e) The profiles of the PDEs. This includes their mandates and types e.g. for CG PDEs whether
       Ministry, Government department, Statutory body, Commission, Referral Hospital, Training
       Institution, State Enterprise, Council, Board etc. For LG PDEs what was considered was the regional
       representation of the District or Municipality.
       (f) Based on the above criteria, the 120 PDEs were further subdivided into CG and LG PDEs using a
       ratio of 3:2 resulting in 72 CG PDEs and 48 LG PDEs. The list of the 120 PDEs is under Annex III.


1.3.2 Planning
      Once the selected PDEs for which compliance checks are to be undertaken were approved by
      Management, a standard letter was sent out to the Accounting Officers of the PDE. The letter contained
      the following information-
      (a) The date the compliance check is commencing at the premises of the PDE and the period it is
      envisaged to take (not more than two working days).
      (b) The conducting of an introductory meeting on the date of commencement of the compliance check
      with the AO, Chairperson and other members of the Contracts Committee and the head of the PDU.
      (c) The procurement/disposal documents and records of the PDE during the preceding six months that
      are to be availed to the compliance team.
      (d) That management of the PDE will be given an opportunity to respond in writing to the draft report
      of the compliance team within seven working days of dispatch of the draft report to Accounting
      Officer. In case of failure/refusal to respond in this time frame, the compliance check report will be
      deemed final and will be published.


1.3.3 Compliance Check Teams
      In order to achieve the benchmark of 120 Compliance checks by 30th September 2008, the Authority
      outsourced 80 of the Compliance Checks to Individual Consultants while 40 were done in house. The
      heads of the compliance teams were responsible for ensuring that-
      (a) The team has orients itself to the key compliance problems of the PDE.
      (b) The team members are familiar with the analysis/assessment of the compliance check criteria.
      (c) The necessary support facilities are requisitioned for in time.
      (d) The cases sampled are representative of the procurements/disposals conducted by the PDE during
      the preceding six months.
      (e) All the documents reviewed by the team are handed back to the PDE on completion of the review.
      (f) The compliance check report and compliance rating is accurate and timely.


1.4    Time Frame

       The compliance checks exercise on the 120 PDEs took a total of four months i.e. May to August 2008.
       The maximum time frame for each compliance check within a PDE was two working days from the
       date of the introductory meeting at the PDEs premises. Thereafter a Compliance Check Report was
       prepared by the Compliance team within five working days and dispatched to the PDE for their written
       comments to be received within seven working days.


                                                                                                             12
1.5   Limitations

      The findings of the Compliance Checks were limited by the following factors:
      • Lack of records especially for the Local Governments visited such as Kalangala, Nakasongola,
         Pader and Isingiro. There were also some Central Government PDEs that did not avail the
         assessment team with all the requisite records to make an informed opinion such as Management
         Training and Advisory Centre and Dairy Development Authority.
      • The compliance ratings were based on a small sample of records of around 10-15 files prepared in
         advance by the Entity and this limited sample may have biased the overall performance of some of
         the Entities.
      • A number of PDEs postponed the scheduled compliance checks for various reasons. The
         postponement affected the progress of the planned coverage of the compliance check exercise.

      The above limitations posed potential risks to the compliance assessment exercise in regard to access to
      information, the reliability, validity and consistency of the results. However, in order to overcome these
      risks, the results submitted by the teams and consultants were subjected to a verification process by
      having different teams to cross check the documented evidence quoted to support the submitted results.
      This validation exercise ensured that the quality of assessment had minimal deviation between the
      actual and measured performance.




                                                                                                             13
2.0    MAIN FINDINGS

2.1    Performance of PDEs under the 8 Compliance Areas

       The results of the compliance check revealed varying levels of compliance among the 120
       PDEs. There is also marked variances in performance between Central and Local Government
       Entities. Due to this observation, this presentation of the findings has been split between Central
       and Local Government PDEs.

2.1.1 Procurement Structures
      This compliance area was measuring the role and effectiveness of the procurement structures. It
      focused on the establishment and performance of the key procurement structures in the PDEs
      including the Accounting Officer, Contracts Committee, Procurement and Disposal Unit and the
      User Departments which are required to act independently in relation to their functions and
      powers in order to promote transparency and accountability in the procurement process. The
      performance of the Evaluation Committee and Negotiation team which are appointed on a case
      by case basis was also looked at during the compliance checks under other compliance areas.

       In particular the compliance indicators covered the following aspects:
       • Whether the Accounting Officer had a clear understanding of his/her role for the overall
           responsibility for the procurement and disposal process;
       • Whether the 5 Contracts Committee members were approved by Secretary to the Treasury;
       • Whether the Entity had an established Procurement and Disposal Unit;
       • Whether the User Department initiates all procurements on standard PP Forms; and
       • Whether the Internal Auditors conduct audits the procurement and disposal process,
           payments and deliveries.

       From the results of the compliance checks exercise it was evident that the principle of
       segregation and independence of functions and powers among the procurement structures in a
       number of Entities was not adhered to. While some PDEs were not totally sure of the roles of
       each of these structures other PDEs deliberately usurped the roles of other structures in
       particular the User Departments in a number of instances took over role of the Procurement and
       Disposal Unit of inviting receiving and opening of bids.

       Some of the PDEs assessed had a number of subsidiary bodies/projects which carried out their
       own procurements independently while others used the procurement structures of the
       supervising PDE. It was noted that some Accounting Officers had delegated functions of the
       contracts committee or the procurement and disposal unit to these bodies. However in most of
       these cases, this delegation was not in writing as required under the law.

       It was further observed that for the PDEs that had a larger percentage of donor funding, the
       User departments often ignored or undermined the roles of the Contracts Committee by only
       seeking approvals of the procurement processes from the donors. A case in point was that of the
       Office of the Prime Minister that had a number of projects that were not using the procurement
       structures of the Contracts Committee and PDU. These projects included NUSAF – World
       Bank, NUREP – EU, NIMES - World Bank, EU, DFID and ADB, PRDP – World Bank and
       PSM – Danida.

       Out of the 120 PDEs assessed, 48 PDEs (40%) did not have the full membership of the
       Contracts Committee members approved by the Secretary to the Treasury as illustrated in

                                                                                                       14
Annex IV. For the Central Government PDEs only 51 PDEs (71%) had the full membership of
5 members of the Contracts Committee while for the Local Governments it was 21 PDEs
(44%). In addition some of the Local Government PDEs complained of unnecessary delays in
having the membership to the Contracts approved as well as the rejection of nominees by the
Accounting Officer without any reasons provided. The limited numbers of approved contracts
committee members affected the efficiency of the PDEs in terms of raising quorum for
meetings and Contracts Committee decisions made without the requisite quorum could raise
potential legal challenges for the PDEs in future.

The CG PDEs that did not have the full membership of the Contracts Committee were the
following:

    •   Arua Hospital                                •   Office of the Auditor General
    •   Courts of Judicature                         •   Posta Uganda Ltd
    •   Diary Development Authority                  •   Privatization Unit
    •   Gulu Hospital                                •   Public Service Commission
    •   Makerere University Business School          •   Soroti Hospital
    •   National Council for Children                •   State House
    •   National Council for Higher Education        •   Uganda Aids Commission
    •   National Curriculum Development              •   Uganda Electricity Distribution
        Centre                                           Company
    •   National Environment Management              •   Uganda Printing and Publishing
        Authority                                        Company
    •   National     Water    and     Sewerage       •   Uganda Property Holdings Ltd
        Corporation                                  •   Uganda Revenue Authority


The LG PDEs that did not have the full membership of the Contracts Committee were the
following:

    •   Apac District                                •   Lira Municipality
    •   Budaka District                              •   Luwero District
    •   Bundibugyo District                          •   Mbarara Municipality
    •   Bushenyi District                            •   Mpigi District
    •   Busia District                               •   Mukono District
    •   Gulu District                                •   Nakasongola District
    •   Hoima District                               •   Namutamba District
    •   Isingiro District                            •   Nebbi District
    •   Kabale Municipality                          •   Oyam District
    •   Kalangala District                           •   Pader District
    •   Kamwenge District                            •   Sembabule District
    •   Kapchorwa District                           •   Soroti Municipality
    •   Kasese District                              •   Wakiso District
    •   Kiruhura District


Nearly all of the Central Government PDEs that were assessed had established Procurement and
Disposal Units apart from 6 PDEs namely; Management Training and Advisory Centre,
National Council for Higher Education, National Planning Authority, Soroti Referral Hospital,

                                                                                          15
Uganda Export Promotion Board and Uganda Investment Authority. In these PDEs, other staff
had been assigned to handle this function in addition to their other substantive work schedules.
With regard to the establishment of PDUs in the Local Government PDEs assessed, most of
them had recruited procurement personnel in accordance with the Public Service job
requirements. However, a few PDEs had not recruited the required staff due a number of
reasons that included not having a District Service Commission in place to conduct the
interviews while others were still awaiting technical assistance from the Ministry of Local
Government to send officials to form part of the interview panel.

In the case of some LGs such as Adjumani, Bundibugyo, Gulu and Moyo Districts the efforts to
fill the positions in the PDU by advertising the positions were not successful because all the
applications received were not responsive. It was further noted that there were some LG PDEs
such as Entebbe Municipality and Pader District where the acting Heads of the PDU (former
Secretaries of the Tender Boards) were reluctant to hand over the office and records to the
newly appointed procurement personnel. This also affected the availability of records to the
Compliance Check Teams.

At Central Government level, most User Departments initiated their procurement requirements
on PP Form 20 which were certified by the heads of Finance and the Accounting Officer.
However, for the Local Government PDEs this was not the case mainly because they had only
received the Local Government Guidelines that contained the standard forms. Therefore most
user departments in Local Government PDEs initiated the procurement process using internal
memos or letters to the Accounting Officer.

During the compliance checks the important role of Internal Auditors in public procurement
was noted especially for the Local Governments since it is a legal requirement under Section 90
of the Local Government Act and Regulation 28 of the LGPD Regulations for Local
Government Internal Auditors to play an active role as part of the internal controls to ensure
that the proper procurement procedures were being complied with by the Entities.

The Entities that were rated highly satisfactory under this compliance area had the full
membership of the Contracts Committee and PDU as prescribed under the law and had active
involvement of other structures in the procurement and disposal process such as the user
departments and the Internal auditors.


Figure I shows the performance of the Central Government Entities assessed under the
compliance area of procurement structures. Out of the 72 CG PDEs, 14 PDEs (19%) were rated
as highly satisfactory, 33 PDEs (47%) were satisfactory, 18 PDEs (25%) were moderately
satisfactory, 6 PDEs (8%) were unsatisfactory and 1 PDE (1%) was highly unsatisfactory.




                                                                                             16
       Figure 1: Performance of CG PDEs under Procurement Structures

                                                     Proc Structure s -CG
                                           HU
                                    U
                                            1
                                    6                          HS
                                           1%
                                   8%                          14
                                                              19%




                     MS                                                            HS
                     18                                                            S
                    25%
                                                                                   MS
                                                                                   U
                                                                                   HU




                                                             S
                                                             33
                                                            47%


       Figure II shows the performance of the Local Government Entities assessed under the
       compliance area of procurement structures. Out of the 48 Local Government Entities assessed, 5
       PDEs (10%) were rated as highly satisfactory, 18 PDEs (38%) were satisfactory, 19 PDEs
       (40%) were moderately satisfactory, 5 PDEs (10%) were unsatisfactory and 1 PDE (2%) was
       rated highly unsatisfactory.
       Figure II: Performance of LG PDEs under Procurement Structures

                                                HU
                                                                    Proc Structures-LG
                                                              HS
                                   U             1
                                                               5
                                   5            2%
                                                             10%
                                  10%




                                                                                         HS
                                                                                         S

                                                                                         MS
                                                                                         U
                                                                              S
                                                                             18          HU

                           MS                                               38%
                           19
                          40%




2.1.2 Procurement Planning
      Procurement and disposal planning is central to proper procurement management. However,
      while the PPDA Act and Regulations stipulate the requirements to be included in a procurement
      plan, for most of the PDEs assessed the procurement plan was prepared annually it was rarely


                                                                                                  17
adhered to by the PDEs. The observance of the requirement to prepare procurement plans by
Central Government PDEs has been largely promoted by the Budget Call Circulars issued by
the Secretary to the Treasury in accordance with the annual budget preparation procedures. In
the case of the Local Government PDEs the fulfilment of this requirement is part of the national
annual assessment by the Ministry of Local Government and thus affects the grants to be
availed by the centre.

This compliance area was measuring the level of compliance to the requirement of preparation
of an annual procurement plan, implementing the procurement plan and prequalification. The
following compliance indicators were looked at:
• Existence and implementation of an approved Pre-qualification List for 3 yrs;
• Existence and implementation of departmental procurement plans;
• Existence of and implementation of an approved consolidated Procurement Plan;
• Existence of Assets Register with provision for asset disposal planning; and
• Use of framework contracts for repetitively procured items.

It was observed that while the format used by the CG PDEs of the procurement plan was the
standard format issued by PPDA, for the LG PDEs there were varied formats used and some
were applying the World Bank project formats. It was further noted that while the requirements
of the user departments were relatively easily identified by Central Government PDEs there
were challenges faced by the Local Government PDEs since their user departments include
Town Councils and sub-counties under the Districts and Divisions under the Municipalities
which are geographically distant from the procurement and disposal unit. Therefore most user
departments in the LG PDEs did not have any departmental procurement plans and the
procurement and disposal unit were left to make provisions for the user departments based on
the past year. This was observed to result in unplanned and emergency procurement requests to
the Contracts Committee by the various user departments when the funds were made available.

It was also observed that both CG and LG PDEs only initiated the procurement process only
when the funding was released to the PDE. This resulted in PDEs attempting to shorten the
procurement process either through repeated requests for deviations to PPDA or flouting the
law by using wrong procurement methods or shorter bidding periods.

It was observed that most of the PDUs were not taking advantage of having framework
contracts in place for repetitively procured items to shorten the procurement lead time and thus
ensure timely delivery of requirements to user departments. It was observed that the use of
Framework contracts was mainly practiced by CG PDEs for supplies like stationery and for
services such as Motor Vehicle servicing and repairs.

With regard to the requirement for having a pre-qualified list of providers every three years for
CG PDEs and annually for LG PDEs, this was largely adhered to however the management of
the list was found wanting in respect of lack of rotation of providers and the non-transparent
updating of the list of providers. In the case of LG PDEs the annual pre-qualification exercise
which is also referred to as registration was being misused by some PDUs and Contracts
Committees to award contracts directly to providers.

Disposal planning was found to be a common problem for both CG and LG PDEs. It is
observed that not enough attention was paid by the Entities to have Assets Registers in place
and for those that had them, they were deficient in content. A number of LG PDEs as well as
Regional Referral Hospitals were facing challenges of wanting to dispose of obsolete equipment

                                                                                              18
that had been donated to them by Central Government PDEs who had retained the log books or
certificates evidencing ownership. This made it difficult for the LG PDEs to offer them to
interested bidders since they had no proof of ownership of these items.

The Entities rated as unsatisfactory or highly unsatisfactory under this compliance area, did not
have any consolidated procurement plans based on their budgets and in some of these Entities
the procurement plans were incomplete and did not have the required information to guide the
initiation of the procurement process. In addition these Entities were did not adhere to their lists
of pre-qualified providers when using restricted or selective bidding and invited providers that
were not on these lists to submit bids.

The CG PDES that were rated highly unsatisfactory under procurement planning were the
following:

     •   Ministry of Justice and Constitutional Affairs
     •   Uganda Development Bank
     •   Uganda Investment Authority
     •   Management Training and Advisory Centre
     •   National Council for Higher Education
     •   Parliament of Uganda

The LG PDES that were rated unsatisfactory or highly unsatisfactory under procurement
planning were the following

     •   Sembabule District
     •   Budaka District
     •   Isingiro District
     •   Kabale District
     •   Kampala City Council
     •   Mukono District
     •   Mbarara Municipality
     •   Pader District
     •   Jinja Municipality


Figure III shows the performance of the Central Government Entities assessed under the
compliance area of Procurement Planning. Out of the 72 CG PDEs, 15 PDEs (21%) were rated
as highly satisfactory, 17 PDEs (24%) were satisfactory, 22 PDEs (30%) were moderately
satisfactory, 12 PDEs (17%) were unsatisfactory and 6 PDEs (8%) were rated highly
unsatisfactory.




                                                                                                 19
           Figure III: Performance by CG PDEs under Procurement Planning

                             Proc and Disp Planning-CG
                              HU
                               6
                                                       HS
                              8%
                                                       15
                                                      21%
                U
                12
               17%


                                                                                HS
                                                                                S
                                                                                MS
                                                                                U
                                                                                HU

                                                               S
                                                              17
                                                             24%


                       MS
                       22
                      30%




Figure IV shows the performance of the Local Government Entities assessed under the compliance
area of Procurement Planning. Out of the 48 Local Government Entities assessed, 4 PDEs (8%)
were rated as highly satisfactory, 17 PDEs (35%) were satisfactory, 19 PDEs (40%) were
moderately satisfactory, 7 PDEs (15%) were unsatisfactory and 1 PDE (2%) was rated highly
unsatisfactory.
Figure IV: Performance of LG PDEs under Procurement and Disposal Planning

                                            Proc and Disposal Planning- LG
                                   HU        HS
                                    1         4
                      U
                                   2%        8%
                      7
                     15%




                                                                            HS
                                                                            S
                                                                  S         MS
                                                                 17
                                                                            U
                                                                35%
                                                                            HU




               MS
               19
              40%




                                                                                           20
2.1.3 Solicitation and Bidding Procedures
      This compliance area was measuring the compliance of the PDEs to the procedural
      requirements under invitation and receipt of bids. In particular the compliance indicators
      covered the following aspects:
      • Record of issue of solicitation document;
      • Solicitation document uses standard format issued by PPDA;
      • Method used is appropriate to threshold and circumstances;
      • Minimum bidding period observed; and
      • Record of Bid Submission and Opening.

   The findings from Central Government PDEs were that there is good compliance with keeping of
   records in this area particularly, record of issue of solicitation documents, bid submission and
   opening. The CG PDEs were also on the whole using the standard solicitation documents in the
   format issued by PPDA. The exceptions to the good performance by CG PDEs under this area were
   four PDEs that were rated highly unsatisfactory as follows:
        • Uganda Development Bank
        • Diary Development Authority
        • Arua Hospital
        • National Council for Higher Education
        • Management Training and Advisory Centre

   With regard to use of appropriate procurement methods, it was observed that some of procurements
   sampled did not adhere to the thresholds in the determination of procurement methods and a
   number of direct procurements were noted. In particular, this was observed in the Regional Referral
   Hospitals which were using the direct procurement method frequently citing emergency situations.

   Figure V shows the performance of the 72 Central Government Entities assessed under the
   compliance area of Solicitation and Bidding Procedures. Of the 72 CG PDEs, 30 PDEs (41%) were
   rated as highly satisfactory, 16 PDEs (22%) were satisfactory, 12 PDEs (17%) were moderately
   satisfactory, 10 PDEs (14%) were unsatisfactory and 4 PDEs (6%) were rated highly unsatisfactory.




                                                                                                   21
Figure V: Performance of CG PDEs under Solicitation and Bidding Procedures

                       Solicitation and Bidding Proc-CG
                             HU
                              4
                             6%
                U
               10
              14%




                                                             HS
                                                             30
                                                                         HS
                                                            41%
                                                                         S
                                                                         MS
         MS                                                              U
         12                                                              HU
        17%




                              S
                             16
                            22%

A number of the LG PDEs were rated as unsatisfactory under this compliance area, because the
standard formats in the Local Government (Procurement and Disposal) Guidelines had only
recently been issued to them. However, a few of the LG PDUs had improvised by keeping the
records of issue of invitation, bid submission and opening in counter books.

The LG PDEs that were rated highly unsatisfactory under Solicitation and Biding procedures
this area were the following:
      • Entebbe Municipality
      • Kasese District
      • Pader District
      • Soroti Municipality
      • Luwero District
      • Kalangala District
      • Mubende District

Figure VI shows the performance of the Local Government Entities assessed under the
compliance area of Solicitation and Bidding Procedures. Out of the 48 Local Government
Entities assessed, 8 PDEs (17%) were rated as highly satisfactory, 9 PDEs (19%) were
satisfactory, 20 PDEs (41%) were moderately satisfactory, 5 PDEs (10%) were unsatisfactory
and 6 PDEs (13%) were rated highly unsatisfactory.




                                                                                         22
       Figure VI: Performance of LG PDEs under Solicitation and Bidding Procedures

                              Solicitation and Bidding Proc-LG
                                   HU
                                                            HS
                                    6
                                                             8
                                  13%
                                                           17%


                        U
                        5
                       10%
                                                                                     HS
                                                                                     S
                                                                       S             MS
                                                                       9
                                                                                     U
                                                                      19%
                                                                                     HU




                                   MS
                                   20
                                  41%



2.1.4 Evaluation Procedures
      This compliance area was measuring the conduct of the evaluation process in PDEs in regard to
      the procedures and transparency of the process. The compliance indicators were the following:
      • Approval of Members of Evaluation Committee by Contracts Committee;
      • Use of appropriate Evaluation Methodology;
      • Record of Acceptance of Code of Ethical Conduct for EC members and Evaluation minutes;
      • Record of Evaluation Report; and
      • Approval of Evaluation Report by Contracts Committee.

   The findings for the Central Government PDEs revealed that the Contracts Committee was
   approving the evaluation criteria in the Solicitation documents as well as the membership of the
   Evaluation Committee. However, in some few PDEs such as Ministry of Justice and Constitutional
   Affairs, there was no record at all of the evaluation process for any of the procurement cases
   reviewed while in Arua Referral Hospital the evaluation procedures were always flouted.

   A number of Local Government PDEs were rated unsatisfactory or highly unsatisfactory under this
   compliance area since some Contracts Committees had appointed one evaluation team for all the
   procurements reviewed. For some Entities, the evaluation reports were not on filed and the
   evaluation methodology was at times not in accordance with the Local Governments (PPDA)
   Regulations 2006 and the Local Governments (PPDA) Guidelines, 2008. One common finding for
   both Central and Local Government PDEs was that few of the procurement files reviewed had a
   signed record of the acceptance of code of ethical conduct by the Evaluation Committee members.

   For the Entities that were rated as highly satisfactory under this compliance area, it was note that
   for the cases sampled the Contracts Committee had approved all the Evaluation Committee
   members, the Evaluation Committee used appropriate evaluation methodologies and had the
   Evaluation committee minutes and evaluation reports on the respective procurement files.

   Figure VII shows the performance of the Central Government Entities assessed under the
   compliance area of Evaluation Procedures. Out of the 72 CG PDEs, 24 PDEs (34%) were rated as

                                                                                                    23
  highly satisfactory, 24 PDEs (33%) were satisfactory, 13 PDEs (18%) were moderately satisfactory,
  6 PDEs (8%) were unsatisfactory and 5 PDEs (7%) were rated highly unsatisfactory.
     Figure VII: Performance of CG PDEs under Evaluation Procedures

                                             Evaluation Procedures-CG
                                     HU
                                      5
                            U        7%
                            6
                           8%
                                                                HS
                                                                24
                                                               34%
                                                                             HS
                  MS                                                         S
                   13                                                        MS
                  18%                                                        U
                                                                             HU




                                             S
                                             24
                                            33%

     Figure VIII shows the performance of the Local Government Entities assessed under the
     compliance area of Evaluation Procedures as follows:

     Out of the 48 Local Government Entities assessed, 8 PDEs 17%) were rated as highly
     satisfactory, 12 PDEs (25%) were satisfactory, 18 PDEs (37%) were moderately satisfactory, 7
     PDEs (15%) were unsatisfactory and 3 PDEs (6%) were rated highly unsatisfactory.

     Figure VIII: Performance of LG PDEs under Evaluation Procedures

                                          Evaluation Procedures-LG
                                HU
                                 3                      HS
                                6%                       8
                   U                                   17%
                   7
                  15%




                                                                        HS
                                                                        S
                                                                        MS
                                                                        U
                                                                  S
                                                                        HU
                                                                  12
                                                                 25%




                      MS
                      18
                     37%



2.1.5 Contract Award and Management


                                                                                                24
This compliance area was assessing whether the Entities were following the prescribed
procedures prior to the award of contracts and the arrangements in place for contract
management and monitoring. In particular the compliance indicators covered the following
aspects:
• Notice of Best Evaluated Bidder and Notice of Contract Award posted on PDE Notice board
   and PPDA website for statutory display period;
• Notification of the award to unsuccessful bidders in writing;
• Approval of Contract Document by Contracts Committee/Solicitor General/ Donor
   whichever is applicable and Copy of signed Contract; and
• Evidence of Execution /Performance of contract within the contractual completion date.

The findings for both Central and Local Government PDEs revealed that there were many
irregularities under this area since very few PDEs had records on contract management on the
files reviewed. In addition, there were no copies of notices of best evaluated bidder on file and
hence no evidence of them having been posted on their notice boards or on the website of the
Authority. It was also noted that unsuccessful bidders were never formally notified as required
under the law.

The legal requirement to seek the Solicitor General’s clearance for contracts above Ug Shs. 50m
was hardly adhered to by the Local Government PDEs which stated that this was due to the
extra costs of transportation of the contracts to the centre and sending officers to follow up on
them. For most of the Local Government PDEs, there were no copies of the signed contracts on
the file making it difficult for the PDU to monitor the implementation of the approved contract.
It was also observed that few of the contracts sampled were executed within the contractual
period and there were many cases of delays in payment of the providers.

For both Central and Local Government PDEs, the responsibility of the User Department
certifying invoices for payment to providers as provided under Section 35 (e) was fairly
complied with especially when the payment was by LPO that had to be countersigned by the
Accounting Officer, Head of Finance and the Head of the User Department.

The Entities that were rated as unsatisfactory or highly unsatisfactory under this compliance
area had not appointed contract managers as required by the procurement regulations;
furthermore, there was no contract monitoring or supplier appraisal reports prepared.

Figure IX shows the performance of the Central Government Entities assessed under the
compliance area of Contract Award and Management. Out of the 72 CG PDEs, 4 PDEs (6%)
were rated as highly satisfactory, 12 PDEs (17%) were satisfactory, 21 PDEs (29%) were
moderately satisfactory, 25 PDEs (34%) were unsatisfactory and 10 PDEs (14%) were rated
highly unsatisfactory.




                                                                                              25
Figure IX: Performance of CG PDEs under Contract Award and Management

                       Contract Award & Management-CG
                                         HS
                       HU                 4
                       10                6%
                      14%
                                                         S
                                                         12
                                                        17%




                                                                        HS
                                                                        S
                                                                        MS
                                                                        U
                                                                        HU

            U
            25
           34%

                                                         MS
                                                         21
                                                        29%




Figure X shows the performance of the Local Government Entities assessed under the
compliance area of Contract Award and Management as follows:

Out of the 48 Local Government Entities assessed, 1 PDE (2%) were rated as highly
satisfactory, 4 PDEs (8%) were satisfactory, 9 PDEs (19%) were moderately satisfactory, 18
PDEs (38%) were unsatisfactory and 16 (33%) were rated highly unsatisfactory.




                                                                                       26
      Figure X: Performance of LG PDEs under Contract Award and Management

          Contract Award and Management-LG

                                             HS
                                              1      S
                                             2%      4
                                                    8%



                   HU
                   16
                  33%                                            MS
                                                                  9
                                                                19%
                                                                             HS
                                                                             S
                                                                             MS
                                                                             U
                                                                             HU




                                                U
                                               18
                                              38%



2.1.6 Reporting
      This compliance area was measuring the compliance of Entities to the requirement of monthly
      and quarterly reporting for CG and LG PDEs respectively. In particular the compliance
      indicators covered the following aspects:
      • All Monthly or Quarterly Reports Submitted up to date of review and submitted on time.
      • Reports use Standard Formats and Contracts Committee Minutes attached; and
      • Any queries by PPDA on reports have been satisfactorily resolved.

      Under this compliance area, Central Government PDEs performed better than the Local
      Government PDEs. The Central Government PDEs that were highly satisfactory (most
      compliant) in this compliance area included the following:
         • Local Government Finance Commission;
         • National Council for Science and Technology;
         • National Forestry Authority;
         • Parliament of Uganda;
         • Privatisation Unit;
         • Uganda Electricity Transmission Company; and
         • Uganda National Examination Board.

      The Central Government PDEs which were noted as highly unsatisfactory (most non compliant)
      to the requirement of submitting monthly reports included the following:
          • Dairy Development Authority;
          • Gulu University;
          • Inspectorate of Government;
          • Internal Security Organisation;
          • Management Training and Advisory Centre;
          • Ministry of Information and Communications Technology;

                                                                                              27
       •   Ministry of Water and Environment;
       •   Post Bank Uganda Ltd;
       •   Posta Uganda;
       •   Uganda AIDS Commission Secretariat; and
       •   Uganda Property Holdings Ltd.

For the case of Local Government PDEs, the PDEs that were highly satisfactory (most compliant)
to the requirement of submitting quarterly reports were the following:
         • Lira Municipal Council
         • Apac District
         • Kamwenge District
         • Kanungu District
         • Pallisa District.

The Local Government PDEs that were highly unsatisfactory (most non compliant) in respect of the
requirement of submitting quarterly reports were the following:
     • Adjumani District                             • Nakasongola District
     • Iganga District                               • Namutamba District
     • Isingiro District                             • Oyam District
     • Kalangala District                            • Pader District
     • Kapchorwa District                            • Rukungiri District
     • Kayunga District                              • Wakiso District
     • Kibaale District                              • Entebbe Municipality
     • Kiboga District                               • Fort Portal Municipality
     • Kiruhura District                             • Jinja Municipality
     • Luwero District                               • Kabale Municipality
     • Moyo District                                 • Soroti Municipality
     • Mpigi District                                • Tororo Municipality
     • Mukono District

Apart from the frequency of submitting reports, it was observed that there were a number of
procurements and disposals that were not being included in the reports sent to the Authority and
that the Contracts Committees were not presented with these reports for their endorsement before
they were formally dispatched.

Another challenge noted in this area was the infrequent micro-procurement report submission from
sub divisions of the larger PDEs which often delayed the submission of the PDE. It was also note
that PDEs with sub delegated Contracts Committees were not submitting reports through the main
Contracts Committee such as the case for the Internal Security Organisation under the     Office
of the President and the Financial Management and Accountability Programme (FINMAP) under
the Ministry of Finance, Planning and Economic Development.

Figure XI shows the performance of the Central Government Entities assessed under the
compliance area of Reporting. Out of the 72 CG PDEs, 32 PDEs (44%) were rated as highly
satisfactory, 11 PDEs (15%) were satisfactory, 9 PDEs (13%) were moderately satisfactory, 5 PDEs
(7%) were unsatisfactory and 15 PDEs (21%) were rated highly unsatisfactory.




                                                                                             28
Figure XI: Performance of CG PDEs under Reporting

                                 Re porting-CG


                       HU
                       15
                      21%




                                                            HS
                                                            32         HS
            U                                                          S
                                                           44%
            5                                                          MS
           7%                                                          U
                                                                       HU



                 MS
                  9
                13%


                                  S
                                  11
                                 15%



Figure XII shows the performance of the Local Government Entities assessed under the
compliance area of Reporting. Out of the 48 Local Government Entities assessed, 10 PDEs
(21%) were rated as highly satisfactory, 9 PDEs (19%) were satisfactory, 6 PDEs (13%) were
moderately satisfactory, 6 PDEs (13%) were unsatisfactory and 17 PDEs (34%) were rated
highly unsatisfactory.
Figure XII: Performance of LG PDEs under Reporting
                                   Reporting LG



                                                      HS
                                                      10
                                                     21%


             HU
             17
            34%

                                                                        HS
                                                                        S
                                                                        MS
                                                                        U
                                                                        HU
                                                            S
                                                            9
                                                           19%




                         U
                         6                     MS
                        13%                     6
                                              13%




                                                                                       29
2.1.7 Performance of Contracts Committee
       This compliance area was measuring the compliance with the prescribed procedures and
       effectiveness of the Contracts Committee. In particular the compliance indicators covered the
       following aspects:
      • Record of Acceptance of Code of Ethical Conduct in Business by Contracts Committee
          members;
      • Record of Contracts Committee decision on a submission on PP/DPA Form;
      • Record of Contracts Committee meeting; and
      • Contracts Committee has not granted retrospective approvals.

      A number of Central Government PDEs were rated as satisfactory under this compliance area
      since most of the Contracts Committee decisions were documented in minutes under the relevant
      PP or DPA Forms.

      However, for the Local Government PDEs there were many PDEs that were rated as
      unsatisfactory because of the lack or inconsistent records for the Contracts Committee meetings
      and decisions. It was further noted from the sampled procurement files for the Local
      Government PDEs, that some of the Contracts Committees had granted retrospective approvals
      for procurements undertaken by Sub counties as emergencies. A common observation at both
      Central and Local Government level was that the record of Acceptance of Code of Ethical
      Conduct for Contracts Committee members was not signed by the members at each meeting.

      Figure XIII shows the performance of the Central Government Entities assessed under the
      compliance area of Performance of Contracts Committee. Out of the 72 CG PDEs, 28 PDEs
      (39%) were rated as highly satisfactory, 25 PDEs (35%) were satisfactory, 11 PDEs (15%) were
      moderately satisfactory, 7 PDEs (10%) were unsatisfactory and 1 PDEs (1%) was rated highly
      unsatisfactory.
              Figure XIII: Performance of CG Contracts Committees

                                  Performance of CC-CG
                                       HU
                             U          1
                             7         1%
                            10%



                 MS
                                                                 HS
                 11
                                                                 28
                15%
                                                                39%         HS
                                                                            S
                                                                            MS
                                                                            U
                                                                            HU




                             S
                             25
                            35%




                                                                                                  30
       Figure XIV shows the performance of the Local Government Entities assessed under the
       compliance area of Performance of Contracts Committee as follows:

       Out of the 48 Local Government Entities assessed, 1 PDE (2%) were rated as highly
       satisfactory, 18 PDEs (38%) were satisfactory, 15 PDEs (31%) were moderately satisfactory, 13
       PDEs (27%) were unsatisfactory and 1 PDE (2%) was rated highly unsatisfactory.

       Figure XIV: Performance of LG Contracts Committees
                                    Perform ance of CC-LG
                                      HU   HS
                                       1    1
                                      2%   2%




               U
               13
              27%


                                                                      S
                                                                      18
                                                                     38%
                                                                            HS
                                                                            S
                                                                            MS
                                                                            U
                                                                            HU




                             MS
                             15
                            31%



2.1.8 Record Keeping
      This compliance area was measuring the compliance of the Entities to the requirement of
      maintaining procurement and disposal records. In particular the compliance indicators covered
      the following aspects:
      • Existence of Record/filing system in PDU;
      • Records filed contain all the requirements of the law;
      • Individual cases have the standard procurement reference numbering; and
      • Records of supplier appraisal

       Under Section 56 of the PPDA Act, PPDA Regulations 90–91, Regulation 46 of the Local
       Government (PPDA) Regulations and Guidelines 8-10 of the Local Government (PPDA)
       Guidelines, all documentation relating to the procurement and disposal activities is required to
       be kept in an orderly manner using standard formats. However, a number of Entities were rated
       as unsatisfactory or highly unsatisfactory under this compliance area because of the limited or
       non existent procurement and disposal records.

       The sample of procurement files reviewed in the PDEs revealed that there were no complete
       procurement or disposal files and most of the key documents were scattered in several files or in

                                                                                                     31
different departments within the PDE. In addition many of the individual transactions lacked
procurement or disposal reference numbers making it very difficult to track a process from the
commencement to its logical conclusion.

While some Central Government PDE had some of the key records, most of the Local
Government PDEs did not have any filing system. For instance the Adverts, Contracts
Committee minutes, Records of issue and receipt of bids, Evaluation Reports, Notices,
Contracts were kept in separate files making it very difficult to track the procurement or
disposal process.

However, a common challenge noted was that the PDU lacked adequate storage facilities to
store the bulky bidding documents and files. This resulted in them being kept in the common
Registry over which they had no control.

Figure XV shows the performance of the Central Government Entities assessed under the
compliance area of Record Keeping as follows:

Out of the 72 CG PDEs, 7 PDEs (10%) were rated as highly satisfactory, 36 PDEs (50%) were
satisfactory, 11 PDEs (15%) were moderately satisfactory, 15 PDEs (21%) were unsatisfactory
and 3 PDEs (4%) were rated highly unsatisfactory.



Figure XV: Performance of CG PDEs under Record Keeping

                                 Re cord Keeping-CG
                                   HU              HS
                                    3               7
                                   4%             10%

                  U
                  15
                 21%


                                                                                   HS
                                                                                   S
                                                                                   MS
                                                                                   U
                                                                                   HU

                MS
                11                                            S
               15%                                            36
                                                             50%




                                                                                           32
Figure XVI shows the performance of the Local Government Entities assessed under the
compliance area of Record Keeping. Out of the 48 Local Government Entities assessed, 0 PDEs
(0%) were rated as highly satisfactory, 8 PDEs (17%) were satisfactory, 5 PDEs (10%) were
moderately satisfactory, 27 PDEs (56%) were unsatisfactory and 8 PDEs (17%) were rated highly
unsatisfactory.

   Figure XVI: Performance of LG PDEs under Record Keeping

                                    Record Keeping- LG

                                         HS
                                          0
                         HU                               S
                                         0%
                          8                               8
                        17%                              17%




                                                                MS            HS
                                                                 5
                                                               10%            S

                                                                              MS

                                                                              U

                                                                              HU




                               U
                               27
                              56%




                                                                                          33
2.2 Overall Performance of the Entities

2.2.1 Performance of Central Government PDEs
      An analysis of the average performance of PDEs under the 8 Compliance areas revealed that the
      compliance areas where the Central Government PDEs scored highest were:
       • Solicitation and Bidding procedures;
       • Procurement Structures; and
       • Performance of the Contracts Committee

         The compliance areas where the Central Government PDEs scored lowest were:
            • Contract Placement, Award and Contract Management
            • Record keeping


         Figure XVII: Performance of CG PDEs under all Compliance Areas

                                                                        Compliance Areas -Central Govt

             100.00%

              90.00%

              80.00%                    71.57%                                                      70.97%                           70.97%          73.33%

              70.00%                                                                                                61.39%
                                                            60.63%
                       57.51%
              60.00%                                                                                                                                                 Values
                                                                                 47.50%
              50.00%

              40.00%

              30.00%

              20.00%

              10.00%

               0.00%
                                        Performance of CC
                       Record keeping




                                                            Reporting




                                                                            Contract Award and




                                                                                                               Disposal Planning
                                                                                                 Procurement




                                                                                                                                   Procudures




                                                                                                                                                Bidding Procedures
                                                                                                                                   Evaluation
                                                                                                               Procurement and
                                                                                                  Structures




                                                                                                                                                  Solicitation and
                                                                               Management




 2.2.2    Performance of Local Government PDEs
          An analysis of the average performance of the Local Government PDEs under the 8
          Compliance areas revealed that the compliance area where they scored highest was that of
          Procurement Structures.

           The compliance areas where the Local Government PDEs scored lowest were:
            • Record Keeping
            • Contract Placement, Award and Contract Management




                                                                                                                                                                              34
             Figure XVIII: Performance of LG PDEs under all Compliance Areas


                                                                       Compliance Areas- Local Govt

                 100.00%

                 90.00%

                 80.00%

                 70.00%
                                                                                                             64.17%           61.67%                 60.63%                     57.92%
                 60.00%
                                               52.54%
                 50.00%                                                45.17%                                                                                                                             Values
                 40.00%    37.02%                                                    36.46%
                 30.00%

                 20.00%

                 10.00%

                   0.00%




                                                                                                             Proc urem ent




                                                                                                                              D is pos al Planning
                                                Perform anc e of C C




                                                                                                                                                      Ev aluation Proc edures
                            R ec ord Keeping




                                                                        R eporting




                                                                                                                              Proc urement and




                                                                                                                                                                                Bidding Proc edures
                                                                                     C ontrac t Aw ard and




                                                                                                              Struc tures




                                                                                                                                                                                  Solic itation and
                                                                                         M anagem ent
                                                                                                  % Values




2.2.3 Comparison of Performance of CG PDEs and LG PDEs under Compliance Areas

      A comparison of the performance of Central and Local Government PDEs under the 8
      compliance areas revealed that CG PDEs performed better than the LG PDEs in 7 of the
      compliance Areas. However, the LG PDEs performed marginally better than the CG PDEs
      under the compliance area of Procurement and Disposal Planning.

            No      Compliance Area                                                                                          CG PDEs                                                                  LG PDEs
            1.      Record Keeping                                                                                            57.51%                                                                   37.02%
            2.      Performance of CC                                                                                         71.57%                                                                   52.54%
            3.      Reporting                                                                                                 60.63%                                                                   45.17%
            4.      Contract Award and Management                                                                             47.50%                                                                   36.46%
            5.      Procurement Structures                                                                                    70.97%                                                                   64.17%
            6.      Procurement and Disposal Planning                                                                         61.39%                                                                   61.67%
            7.      Evaluation Procedures                                                                                     70.97%                                                                   60.63%
            8.      Solicitation and Bidding Procedures                                                                       73.33%                                                                   57.92%


2.2.4 Entity Performance by Compliance Rating

      (a) Central Government PDEs
      An analysis of the average compliance rating of the 72 Central Government PDEs revealed that
      49 PDEs (68%) were rated Satisfactory and Highly Satisfactory. While this is a good
      achievement it should be noted that 8 PDEs (11%) were rated Unsatisfactory and Highly
      Unsatisfactory. Therefore there still remains a lot of room for improvement especially when



                                                                                                                                                                                                                   35
compared to the performance of the Local Government PDEs which have only recently started
to apply the national standards under the PPDA Act.

   Compliance Rating       No. of PDEs Percentage
   Highly Satisfactory               7         10
   Satisfactory                     41         57
   Moderately Satisfactory          16         22
   Unsatisfactory                    7         10
   Highly Unsatisfactory             1          1
   Total                            72        100

      Figure XIX: Compliance Rating of CG PDEs

                    Overall R atin g o f C G P DE s
       100


        90


        80


        70

                         41 P DE s
        60                 57%

        50


        40


        30
                                     16 P DE s
                                       22%
        20
              7 P DE s                           7 P DE s
        10      10%                                10%
                                                            1P DE
                                                             1%
         0
               HS         S          MS          U          HU




(b) Local Government PDEs
An analysis of the average compliance rating of the 48 Local Government PDEs revealed that
15 PDEs (31%) had been rated Satisfactory and Highly Satisfactory. This performance was
therefore below average especially when it is further noted that 7 PDEs (15%) were rated
Unsatisfactory.
    Compliance Rating        No. of PDEs Percentage
    Highly Satisfactory                 1             2
    Satisfactory                      12             25
    Moderately Satisfactory           28             58
    Unsatisfactory                      7            15
    Highly Unsatisfactory               0             0
    Total                             48           100



                                                                                       36
             Figure XX: Compliance Rating of LG PDEs


                                       Overall Rating of LG PDEs

       100

        90

        80

        70
                                                   28 PDEs
        60
                                                     58%
        50

        40                         12 PDEs
                                     25%
        30
                                                                  7 PDEs
        20                                                          15%
        10         1 PDE
                                                                                  0 PDE
                     2%
                                                                                    0%
         0
                  HS               S               MS             U              HU




2.2.5 Comparison of Compliance Rating of CG PDEs and LG PDEs

      A comparison of the compliance ratings for CG PDEs and LG PDEs revealed that CG PDEs
      had more Entities that were rated satisfactory and above (67%) as compared to LG PDEs (27%)

         Compliance Rating                CG PDEs            LG PDEs
         Highly Satisfactory
         (81% - 100%)                             10%                  2%
         Satisfactory
         (61% - 80%)                              57%                 25%
         Moderately Satisfactory
         (41% - 60%)                              22%                 58%
         Unsatisfactory
         (21% - 40%)                              10%                 15%
         Highly Unsatisfactory
         (0% - 20%)                                1%                  0%




                                                                                              37
3.0   COMPLIANCE RATING OF ENTITIES

3.1   Central Government Entities


3.1.1 Ministries

      NAME OF PDE: Ministry of Defence


      DATE OF ASSESSMENT: 15th – 16th May 2008


      MANDATE: To defend the sovereignty and territorial integrity of Uganda against aggression.


      LEGAL/INSTITUTIONAL STATUS: Central Government Ministry


      BUDGET (GOU/DONORS): GOU and DONOR funding for soldiers in Somalia


      SIZE OF PDE: Information not availed


      ACCOUNTING OFFICER (Acting): Ms. Rosette Byengoma


      CONTRACTS COMMITTEE MEMBERS (Names):

                                            1.      Maj. Gen. Fred Okecho -        Chairperson
                                            2.      Mr. Kazibwe Mbazira -          Secretary
                                            3.      Brig. Silver Kayemba -         Member
                                            4.      Lt. Col. David Kyomukama -     Member
                                            5.      Capt. Thomas Kyebanza -        Member


      PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                            1.      Mr. John Kateregga   -       Head PDU
                                            2.      Ms. Rehema Nakirunda -        PO

                                                  On temporary basis
                                            1.     Mr. Geoffrey Tumuhairwe         -      PO
                                            2.     Pamela Ankunda                  -      PO




                                                                                                   38
      COMPLIANCE AREA    SCORE / RATING                      FINDINGS


Procurement Structures        7/10        •   There is a full structure in the entity, headed by an
                              70%             Accounting Officer who              undertakes her
                                              responsibility for all the procurements and disposal
                                              process.
                                          •   She has an established a Contracts Committee in 5
                                              members approved by PS/ST. The Committee
                                              meets twice in a month.
                                          •   PDU is in place with 2 permanent staff and two
                                              temporary staff.
                                          •   In some instances, evidence of initiation of the
                                              procurements using PP Form 20 was not seen.

Procurement Planning          5/10        •   Entity in the process of coming up with an
                              50%             aggregated procurement and disposal plan.
                                          •   Entity has an asset register in place though does not
                                              have provision for asset disposal planning.
                                          •   There were no departmental procurement plans.
                                          •   Procurements for fuel and lubricants for the
                                              aviation department are being procured using the
                                              frame work contract.




                                                                                                39
Solicitation and bidding procedures     6/10     •   Records of issue of the solicitation documents on
                                        60%          file.
                                                 •   Some of the solicitation documents seen use the
                                                     standard format issued by the Authority. Some of
                                                     the solicitation documents were missing on the
                                                     individual procurement files.
                                                 •   In some few instances, the minimum bidding
                                                     periods were not observed. In others, the
                                                     requirement could not be ascertained as the records
                                                     of bid submission and opening were not on file.
Evaluation procedures                   8/10     •   Evaluation committees in place, approved by CC
                                        80%      •   Evaluation reports are signed by members of the
                                                     EC and approved by CC
                                                 •   Some of the contracts reviewed did not have
                                                     evaluation reports.
                                                 •   The appropriate Evaluation methodology was being
                                                     used for the contracts reviewed.
                                                 •   Record of acceptance of Code of Ethical Conduct
                                                     for the Evaluation members and Evaluation minutes
                                                     seen on files.
Contract placement,      award    and   3/10     •   Most of the procurements did not have records for
management                              30%          contract placement.
                                                 •   For some of the procurements sampled, there was
                                                     no evidence of award by letter of bid acceptance
                                                     from PDE or contract documents like LPOs.
                                                 •   There were no notices for best evaluated bidder.
                                                 •   There is non submission of letters to unsuccessful
                                                     bibbers
                                                 •   There was no evidence of user department
                                                     involvement in contract management.
                                                 •   The Entity has several framework contracts with
                                                     providers for drugs, fuel and foodstuffs.
Reporting                                3/6     •   Report for contracts in excess of USD 200,000 was
                                        50%          prepared but had not yet been submitted to the
                                                     Authority by the time of the review.
                                                 •   Reports on procurement are omnibus and not
                                                     prepared monthly.
                                                 •   Contract values are not included for some of the
                                                     procurements.
                                                 •   There is no reporting on micro procurements
                                                 •   Improper use of procurement methods

Performance of Contracts Committee       4/8     •   CC members meet twice in a month and consider
                                        50%          all submissions of procurements made. Minutes of
                                                     some of the CC meetings were not available for
                                                     review.
                                                 •   There was no evidence of use of the standard forms
                                                     for approval by CC for some of the procurements.
                                                 •   Some of the files perused had copies of signed
                                                     minutes.
Record Keeping                           5/8     •   Record keeping is still lacking as some of the
                                        63%          procurements reviewed lacked documents on
                                                     contract placement and award.
Aggregate Score and
Compliance                                57 %             MODERATELY SATISFACTORY




                                                                                                     40
RECOMMENDATIONS

  1. The Entity should submit PP Forms 229 and 221 on membership of the Contracts Committee and
      Procurement and Disposal Unit to PPDA.
  2. Procurement plans should be prepared each financial year based on the approved budget and a copy of it
      submitted to the Authority.
  3. The different departments in the Entity should submit departmental procurement plans to the PDU to
      help in compilation of the Entity’s procurement plan as provided for in section 60 of the PPDA Act.
  4. All the necessary records for a specific procurement should be properly filed.
  5. Evaluation reports should be prepared and filed for each evaluation and submitted to CC for approval in
      accordance with Reg. 195(3).
  6. All the necessary records for a specific procurement should be properly filed.
  7. The unsuccessful bidders should always be notified in writing as provided for in Regulation 225(4) of
      the PPDA Regulations.
  8. The user departments should be involved in certifying contractual sums.
  9. The Entity is required to submit to the Authority reports on procurements on micro procurements on a
      monthly basis.
  10. All approvals by Contracts Committee should be made using the standard PP forms.




                                                                                                         41
NAME OF PDE: Ministry of Energy and Mineral Development


DATE OF ASSESSMENT: 13th - 16th June 2008


MANDATE: To establish, promote the development, strategically manage and safeguard the rational and
        sustainable exploitation and utilization of energy and mineral resources for social and economic
        development".


LEGAL/INSTITUTIONAL STATUS: Ministry


BUDGET (GOU/DONORS): GOU &Donor Funds


SIZE OF PDE: Approximately 221 members of staff


ACCOUNTING OFFICER (Name): Mr. Kabagambe Kaliisa


CONTRACTS COMMITTEE MEMBERS (Names):

                                                  1. Mr. Rubondo Ernest      Chairperson
                                                  2. Ms. Aheebwa Peninah      Secretary
                                                  3. Mr. Odida John          Member
                                                  4. Mr. Beena Benon         Member
                                                  5. Ms. Nakungu Elizabeth   Principal State Attorney



PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                                  1. Mr. Ahebwa Stanley Head PDU
                                                  2. Mr. Mugabira Micheal SPO
                                                  3. Mr. Gulale Fred -     PO
                                                  4. Ms. Namalele Margaret Sec




                                                                                                        42
       COMPLIANCE AREA                SCORE / RATING                    FINDINGS

Procurement Structures                     9/10        CC members approved by PSST though PP Form 220
                                                       not filed by the entity
                                           90%         PP Form 221 which shows the composition of the
                                                       established PDU is not filed with PPDA
Procurement                                8/10        There’s evidence of an approved list of pre-qualified
Planning                                               providers but no evidence of departmental procurement
                                           80%         plans.
                                                       The Ministry has a list of prequalified providers and an
                                                       Assets Register.
Solicitation and bidding procedures        6/10        Entity complies with the standard format issued by
                                                       PPDA for the documents and the Law for the
                                           60%         procedures.
                                                       There was evidence of Records of Bid submissions and
                                                       Opening on the PDU files.
                                                       The minimum bidding period is some times observed.
Evaluation procedures                      8/10        Approval of Evaluation Committee members is done by
                                                       the CC and the appropriate evaluation methodology
                                           80%         used though there’s no record of Code of Ethical
                                                       Conduct for the EC members and no evaluation
                                                       minutes.




                                                                                                             43
Contract placement,      award    and         4/10                No evidence of approval o Contract Documents by the
management                                                        CC and Solicitor General but there is some evidence of
                                             40%                  notices given to the Best Evaluated bidders.
                                                                  The contract award notices are not posted at the PPDA
                                                                  website.
Reporting                                     5/6                 Monthly reports are not submitted on time.
                                                                  However, the Entity recently forwarded Macro
                                             83.3%                procurements conducted for the period January to May
                                                                  2008.

Performance of Contracts Committee            7/8                There was some evidence of record of acceptance of
                                                              Code of Ethical Conduct in Business by CC members.
                                             87.5%               Minutes are in place though not recorded on the
                                                                 appropriate forms.
                                                                 For most of the procurements, there were Records of
                                                                 Contracts
                                                              Committee decisions on submissions on PP/DPA Forms.
Record Keeping                                4/8                There exists a Record/filing system in the PDU.
                                                                 There were no records of the supplier appraisal
                                             50%                 performance.


Aggregate Score and Compliance
Rating                                       71%                               SATISFACTORY




   RECOMMENDATIONS

       1.    PP Form 220 should filed by the entity.
       2.    Entity should file PP Form 221 with the Authority
       3.    The departments in the Ministry should endeavor to compile departmental procurement plans.
       4.    The members of the EC should always sign the Record of Acceptance of Code of Ethical Conduct and
             there should always be signed minutes on file to evidence what transpired during the meetings.
       5.    The Entity should always ensure that the best evaluated bidders and the unsuccessful bidders are notified
             after the evaluation of bids.
       6.    The notice of contract award should also be posted on the PPDA website for the statutory display period.
       7.    The Entity should ensure that monthly reports are submitted by the 15th day of each month for the
             preceding month and that all PP Forms are filled and CC minutes attached to reports as this aids the
             Authority as it reviews the reports.
       8.    The CC members should always sign the acceptance of code of Ethical conduct in Business.
       9.    The Contracts Committee minutes should be recorded on the appropriate forms.
       10.   The Entity should appraise the performance of their suppliers to ensure quality services and supplies.




                                                                                                                       44
NAME OF PDE: Ministry of Finance, Planning and Economic Development


DATE OF ASSESSMENT: 23rd May 2008


MANDATE: Public financial management and policy.


LEGAL/INSTITUTIONAL STATUS: Ministry


BUDGET (GOU/DONORS): GOU and donor funds


SIZE OF PDE: Large with 25 development projects, approximately 542 members of staff with an estimated
             budget of 9 Billion 80% of which is transferred to other Entities like National Planning
             Authority, Uganda Bureau of Statistics, Presidential Initiative for Banana Industrial
             Development among others.


ACCOUNTING OFFICER (Name): Ms. Betty Kasimbazi


CONTRACTS COMMITTEE MEMBERS (Names):

             1.   Mr. David KabateraineAg AC/TAS (Procurement) Chairman
             2.   Mr. Moses Ogwapus     Principal Finance Officer representing components 1&2
             3.   Mr. Wilson Nabongo   Principal Accountant/ STD representing Component 3
             4.   Mr. Francis Okori    Principal Inspector, Ministry of Local Government
                                       representing Component 5
             5. A representative from Ministry of Justice& Constitutional Affairs

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

             1. Ms. Yerusa Nyagoma Head Procurement Officer
             2. Mr. Oyet Tom       Procurement Officer.


DELEGATED CONTRACTS COMMITTEE MEMBERS (FINMAP) (Names):

        1. Mr. David Kabateraine – Ag AC/TAS (Procurement) Chairman
        2. Mr. Moses Ogwapus – Principal Finance Officer representing components 1&2
        3. Mr. Wilson Nabongo- Principal Accountant/ STD representing Component 3
        4. Mr. Francis Okori -Principal Inspector, Ministry of Local Government representing
                               Component 5
        5. Mr. J.B R Ssuza      Avocate, Member


DELEGATED PROCUREMENT AND DISPOSAL UNIT MEMBERS (FINMAP) (Names):

   1.   Ms. Elizabeth Mutesi              Head Procurement Officer
   2.   Mr. Stephen Ariko                 Assistant Procurement Officer
   3.   Mr. Patrick Banura                Assistant Procurement Officer
   4.   Mr. Robert Musana                 Procurement Assistant.

                                                                                                  45
 COMPLIANCE AREA         SCORE / RATING       FINDINGS


Procurement Structures        8/10            •    The PDE CC members compose the delegated Sub-
                                                   contracts Committee for FINMAP- there is a conflict of
                              80%                  interest since the FINMAP Sub Committee was
                                                   recommended by the PDE CC.
                                              • Based on the sampled FINMAP files, procurements are
                                                   initiated by the user departments on PP Form 20.
                                              • Internal Auditor carries out post audits.
Procurement Planning          6/10        Entity has 25 projects of which the Compliance Team only
                                          sampled FINMAP files.
                              60%           • An approved pre-qualified list of providers, however some
                                              of the sampled cases were awarded to non pre-qualified
                                              providers.
                                            • A departmental procurement plan.
                                            • A procurement plan for FY 2007/08 based on the approved
                                              budget, however PDE conducted non planned procurements.
                                            • An assets register with provisions for assets disposal plan.
                                            • PDE uses framework contracts for commonly procured
                                              items like,
                                                   o Ms Computer Point Ltd –For maintenance of IFMS
                                                        software/Lan/ Wan and site equipment
                                                   o Ms. Computer Point Ltd – for maintenance of
                                                        servers, storages, ups and other equipment at data
                                                        centre and disaster recovery centre.
                                                   o Ms. Sarecen Uganda Ltd for security services.
                                                   o Ms. Sekanyola systems Ltd for maintenance of


                                                                                                       46
  COMPLIANCE AREA              SCORE / RATING       FINDINGS


                                                             security facility at data recovery centre- Jinja and
                                                             Kampala.
Solicitation   and   Bidding        10/10         • Sub PDU has records of issue of Solicitation documents.
procedures                                        • Uses SBDs issued by the Authority.
                                   100%           • Minimum bidding periods were observed for all the sampled
                                                    cases.
                                                  • Has record of bid submission and opening
Evaluation procedures               8/10          • The CC approves the members of the Evaluations
                                                    Committee (EC) and the Evaluation Report.
                                    80%           • Appropriate evaluation methodologies are used.
                                                  • However, there are no records of acceptance of Code of
                                                  Ethical Conduct for Evaluation Committee

Contract placement, award           5/10          • Notice of contract award is posted on PDE Notice board and
and management                                      not posted on PPDA website
                                    50%           • Unsuccessful bidders are never notified in writing.
                                                  • CC approves all contracts and copies of signed contracts
                                                    were on file.
                                                  • The sub PDU seeks SG clearance for procurements above
                                                    50m.
Reporting                            4/6            • Sub PDE had last submitted monthly reports for July
                                                         07- April 08 on 28th May 2009 (on standard formats on
                                    67%                  PP Forms 200, 201 and 202 with CC minutes attached.
Performance of Contracts             6/8            • Record of acceptance of Code of Ethical Conduct in
Committee                                                business by CC members (PP Form 211)
                                    75%             • Record of Contracts Committee decision on PP Form.
                                                    • In the CC minutes sampled the CC had not granted any
                                                         retrospective approvals.
Record Keeping                       6/8            • PDU has a record/filling system.
                                                    • Most of the sampled cases had the standard
                                    75%                  procurement reference numbers.
                                                    • No record of supplier appraisal performance.

Total Score and                     74%                               SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS
  1. Entity should submit procurement plans and delegated CC members (if any) for the other 24 projects.
  2. EC should record the acceptance of Code of Ethical Conduct at all evaluations to avoid conflict on
     interest.
  3. PDE should avoid omnibus submission of monthly reports. They should be submitted by the 15th day of
     the following month with all the relevant PP Forms and CC.
  4. PDE should have a record of supplier appraisal/performance system.




                                                                                                              47
NAME OF PDE: Ministry of Gender, Labour & Social Development


DATE OF ASSESSMENT: 11th July 2008


MANDATE: To create an enabling environment for social protection and social transformation of communities.


LEGAL/INSTITUTIONAL STATUS: Central Government Ministry


BUDGET (GOU/DONORS): The funds for the MGLSD consist of money appropriated by Parliament to
                     enable the ministry perform its functions. Every year the ministry is allocated a
                     share on the National Budget and finances are from the consolidated fund of
                     the Treasury. Donor funds are also obtained from UNFPA, UNDP and
                     UNICEF, and constitute about 9% of the Ministry's total budget.

                              Other sources are like funds from the sale of Bids and Inspection and issuing
                              certificates for Occupation Safety and Health.

SIZE OF PDE: The Ministry of Gender, Labour and Social Development is headed by a cabinet minister and
              four other ministers of state appointed by the President. The The management of MGLSD
              comprises of two Directorates; The Directorate of Gender and Community Development and
              The Directorate of Labour.


ACCOUNTING OFFICER: Ms. Christine Guwatudde Kintu

CONTRACTS COMMITTEE MEMBERS (Names):

                                1.    Mr. Beekunda George       - Chairperson
                                2.    Mr. Alphonse Ojja Andira - Member
                                3.    Ms. Sherina Tibenkana - Member
                                4.    Ms. Idah Kigonya        - Member
                                5.    Ms. Joan Muruumu         - Secretary


PROCUREMENT AND DISPOSAL UNIT MEMBER:

                                1.    Ms. Catherine Ainesaasi   Head PDU
                                2.    Mr. Sam Yiga              PO




                                                                                                         48
  COMPLIANCE AREA              SCORE /                             FINDINGS
                               RATING

Procurement Structures          7/10     •   The Accounting Officer was not certifying funds availability for
                                             procurements raised.
                                70%      •   User Departments duly filled procurement forms but funds
                                             availability was not being validated by the AO
Procurement Planning            7/10     •   Emergency procurements were being handled by the entity in the
                                             same way micro procurements are - on ad hoc basis. The commonest
                                70%          of these was in the procurement of tyres and car batteries.
                                         •   Entity has no assets register. There was no record of Disposal of
                                             asset filed in the last six months.
Solicitation   and   Bidding    8/10     •   The entity use standard bidding documents and there is a record of
procedures                                   bid opening; bid closing and bid evaluation documents.
                                80%      •   Thresholds are followed in selection of most procurement methods
                                             to use, with a few exceptions e.g. Direct procurement was used for
                                             the tenancy of Simbamanyo house for the MGLSD offices at cost of
                                             120million per month
                                         •   However a few procurements reviewed did not use the appropriate
                                             procurement methods-
Evaluation procedures           8/10     •   No record of signing the Ethical Code of Conduct by the Evaluation
                                             committee.
                                80%
Contract placement, award       4/10     •   The entity has a procurement notice board but does not post
and management                               procurement notices like Bid notices, Contract award notices and
                                40%          Notice of Best evaluated bidder
                                         •   Notification to unsuccessful bidders not done
                                         •   A number of procurements do not have all the related documents.



                                                                                                            49
  COMPLIANCE AREA            SCORE /                                   FINDINGS
                             RATING

                                            •   No contract implementation plan seen or evidence of post contracting
                                                performance seen.
                                            •    PP Form 60 not filed
Reporting                       5/6         •   At the time of the compliance check the entity had submitted
                                                monthly reports up to April 2008.
                              83.3%         •   Some procurements e.g. procurements of fuel using credit cards,
                                                payment for news papers and staff welfare items were not being
                                                reported.
                                            •   Micro procurements being reported did not have invoice numbers
                                                filed.
Performance of Contracts        6/8         •   Some contracts committee minutes were not signed
Committee                                   •   The user departments do not take responsibility after contracts have
                               75%              been placed for contract management.
                                            •   CC approvals on retrospectives seen.
Record Keeping                  4/8         •   Record keeping is still a challenge for the entity with a number of
                                                records missing from procurement files. PDU claimed these are kept
                               50%              in accounts.

Total Score and                68%                                  SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS
  1. The Accounting officer should ensure that all procurement requisitions are certified for availability of
      funds in accordance with the PPDA Act 1, 2003, sec 26(f) and Regulation 105(3) to avoid committing
      the entity without confirmation of funding.
  2. The Accounting Officer should nominate another member for appointment by the Secretary to the
      Treasury to replace the Secretary to the CC Ms. Joan Muruumu.
  3. Contracts Committee minutes should always be signed by the Chairperson and Secretary of the
      Contracts Committee.
  4. Procurements, especially from the transport unit should always go through the PDU to ensure proper
      management of procurements.
  5. Spares and Motor Vehicle servicing and maintenance should be procured in accordance with the PPDA
      Regulations
  6. The entity should report all purchases whether using credit cards or not including all micro
      procurements.
  7. The PDU should ensure that invoice numbers are filed in the record of micro procurement transactions.
  8. The entity should allocate procurement Reference numbers at the time of initiation of procurement
      requirements.
  9. Procurement planning should be in line with the PPDA Act Sec. 58, to avoid emergency procurement
      wherever possible.
  10. Procurement and disposal notices should be posted in accordance with Regulation 38 of the PPDA
      Regulations.
  11. Evaluation Committee members should sign the Ethical Code of conduct at each meeting in accordance
      with Act 1 Section 37 (6) of the PPDA Act, 2003.
  12. Contract management records should be in accordance with Regulations 258(3) and 260 of the PPDA
      Regulations 2003.




                                                                                                                 50
NAME OF PDE: Ministry of Information and Communication Technology


DATE OF ASSESSMENT:           28th – 29th May 2008


MANDATE: To provide strategic and technical leadership, overall coordination, support and advocacy on all
         maters of ICT in Uganda.

LEGAL/INSTITUTIONAL STATUS: Central Government Department


BUDGET (GOU/DONORS): The budget is approximately Ug. Shs 9 billion; with about 60% going towards
                     procurement. The source of funding is Central Government.


SIZE OF PDE: The Entity has 62 staff;


ACCOUNTING OFFICER (Name): Dr. Jimmy Pat Saamanya


CONTRACTS COMMITTEE MEMBERS (Names):

           1.   Dr. Eng. David Turahi Chairman
           2.   Ms P. Kabiije - Member (State Attorney)
           3.   Mr. Eliab Talisuna - Member
           4.   Mr. Ambrose Ruyooka - Secretary
           5.   Mr. Wafula Wanyama - Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

           1. Mr. Frank Mugisha                      Head PDU
           2. Mr. Omar Turyamureba Okeny             PO




                                                                                                      51
    COMPLIANCE AREA                SCORE /                            FINDINGS
                                   RATING

Procurement Structures              7/10     •   Procurement structures in place but PP Forms 220, 221 and
                                                 222 not filed with PPDA.
                                    70%
Procurement Planning                4/10     •   No department or procurement plan available.
                                             •   No framework contracts used for repetitively procured items
                                    40%
Solicitation   and       bidding    10/10    •   All records required were on file.
procedures                          100%

Evaluation procedures               9/10     •   No minutes of Evaluation committee on file but all other
                                                 requirement were on file.
                                    90%
Contract placement, award and       9/10     •   Entity does not post the notices on the PPDA Website for the
management                                       statutory display period. But other than that, all the other
                                    90%          requirements were on file.
Reporting                            2/6     •   The Entity has not been submitting monthly procurement and
                                                 disposal reports.
                                    33%
Performance      of   Contracts      8/8     •   All records were on file.
Committee
                                    100%
Record Keeping                       8/8     •   All records were on file.
                                    100%

Total Score of PDE          and     78%                           SATISFACTORY
Compliance Rating



                                                                                                                52
RECOMMENDATIONS:

  1.   The Accounting Officer should urgently file PP Form 220 with PPDA.
  2.   User departments should prepare departmental plans and submit them to the PDU for consolidation.
  3.   The Entity should use framework contracts for commonly procured items
  4.   Minutes of evaluation committee meeting should be prepared and attached to the evaluation report.
  5.   The entity needs training on posting of bid notices on PPDA website
  6.   The Accounting Officer should prepare and submit monthly procurement and disposal reports to the
       Authority.




                                                                                                           53
NAME OF PDE: Ministry of Internal Affairs


DATE OF ASSESSMENT: August 2008


MANDATE: To implement Government policies in respect of internal security, keeping law and order and
         immigration regulations in the country.


LEGAL/INSTITUTIONAL STATUS: Government Ministry


BUDGET (GOU/DONORS): Releases from Central Government and donor funds.


SIZE OF PDE: 200 Staff


ACCOUNTING OFFICER: Dr. P.S Kagoda


CONTRACTS COMMITTEE MEMBERS (Names):

                   1. Mr. Komunda S. Sabiiti Principal Assistant Secretary   Chairperson
                   2. Mr. Eramu Pascal       Senior Assistant Secretary      Secretary
                   3. Mrs. Robinah Kirinyi Government Analyst                Member
                   4. Ms. Betty Nassenja     Immigration Officer/Lawyer      Member
                   5. Mr. Barigye William Principal Immigration Officer      Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                   1. Mr. Higenyi Kamya Edward    Ag. Head/ PDU
                   2. Ms. Komugisha Hilda Secretary




                                                                                                 54
   COMPLIANCE AREA             SCORE /                                 FINDINGS
                               RATING

Procurement Structures          7/10     • The Accounting Officer is in place and has established the Procurement
                                           and Disposal Unit
                                70%      • Contracts Committee in place and approved by PS/ST.
                                         • The user departments initiate procurements but make no use of PP Form
                                           20.
                                         • Information as to whether the Internal Auditor has audited the
                                           procurement and disposal processes was not availed.
                                         • No internal audit reports on the procurement and disposal processes
                                           seen.

Procurement Planning            6/10     • Procurement plan for FY 07/08 is in place but not prepared in
                                           accordance with the PPDA Format.
                                60%      • The procurement plan did not include the department for national
                                           community service.
                                         • The Entity has a pre-qualified list of providers in place though there are
                                           inadequate providers on some categories for works, supplies and
                                           services.
                                         • No evidence of use of framework contracts seen.

Solicitation   and   Bidding    6/10     • Records of issue of solicitation documents and solicitation documents
procedures                                 are kept on the files
                                60%      • Records of bid submission and opening seen on files.


                                                                                                                  55
  COMPLIANCE AREA              SCORE /                                FINDINGS
                               RATING

                                         • Minimum bidding periods observed in the cases sampled
                                         • Some of the methods used are not appropriate to the threshold and
                                           circumstances as provided for under the PPDA Guidelines. There is
                                           frequent use of direct procurement.
                                         • Some of the copies of the solicitation documents issued and bids
                                           received availed.

Evaluation procedures           6/10     • Evaluation reports seen on the procurements samples and use the
                                           evaluation methodology in the solicitation documents.
                                60%      • Records of Acceptance of Code of Ethical Conduct for EC members
                                           seen on the files.
                                         • Evidence of nomination by the PDU and approval of the members of the
                                           Evaluations Committee by the Contracts Committee seen.
                                         • Evaluation reports are signed approved by CC.

Contract placement, award       3/10     • Entity does not post the notices of the best evaluated bidder and the
and management                             notice of contract award on the PPDA website.
                                30%      • Contract documents were not on the individual procurement files.
                                         • There are no records of supplier appraisal and performance.
                                         • No evidence that the unsuccessful bidders are notified in writing
                                         • There was no evidence that the User Department is involved in
                                           certifying payment.

Reporting                        3/6     • Entity is not up to date in the monthly procurement and disposal
                                           reporting.
                                50%      • Entity uses the standard format in the monthly reporting
                                         • Entity responds to queries raised by the Authority on the monthly
                                           reports.
                                         • Invoice numbers and dates for some procurement transactions are not
                                           indicated in the reports and contracts Committee minutes are not
                                           submitted with the reports.
                                         • Reports are submitted by the Senior Procurement Officer instead of the
                                           Accounting Officer as required by the PPDA Act.
Performance   of   Contracts     5/8     • Contracts Committee meets regularly.
Committee                                • Most of the Contracts Committee minutes were available on the file.
                                63%      • Record of Acceptance of Code of Ethical Conduct for CC members not
                                           signed by the members at each meeting.

Record Keeping                   5/8     •   The record/filling system is being started in the PDU and needs a lot
                                             of strengthening.
                                75%      •   Individual procurements have procurement reference numbers
                                             assigned to them

Total Score and                 58%                      MODERATELY SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS

   1. The Entity should ensure that the departmental plans are approved by the Heads of Departments and
      aggregated within the procurement and disposal plan
   2. Entity is advised to ensure that each procurement file contains all the requirements of the law.
   3. The Procurement plan should be prepared in accordance with the PPDA format.


                                                                                                               56
4. The Ministry should use framework contracts for commonly procured items as under section 58(c) of the
    PPDA Act.
5. The unsuccessful bidder should be notified in writing as provided for under Regulation 225(4) of the
    PPDA Regulations.
6. Copies of the contract documents should be put on the individual files.
7. The Ministry should appraise the performance of its suppliers.
8. The user departments should be involved in certifying the payments of the contractual sums.
9. Entity should adhere to the timely monthly procurement and disposal reporting in accordance with the
    PPDA Act and Regulations.
10. Records of Acceptance of Code of Ethical Conduct for Contracts Committee members should be signed
    at each meeting and kept by the Secretary.
11. The Entity should display notices of the best evaluated bidder and contract award on the PPDA Website.




                                                                                                       57
NAME OF PDE: Ministry of Justice and Constitutional Affairs


Date of Assessment: 13th – 14th August 2008


MANDATE: To provide legal services to the government and over see the entire justice system in the country.


LEGAL/INSTITUTIONAL STATUS: Government Ministry


BUDGET (GOU/DONORS): Mainly GOU with some donor support


SIZE OF PDE: Medium


ACCOUNTING OFFICER (Name): Mr. Bafaki Ernest


CONTRACTS COMMITTEE MEMBERS (Names)

                                           1.   Mr. Billy Kainamura     Chairman
                                           2.   Ms. Mauda Kakuru        Secretary
                                           3.   Ms. Christine Kasajja   Member
                                           4.   Mr. Bisobye Byakusaga   Member
                                           5.   Mr. Wagubi Andrew       Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names)

                                           1. Mohammed Ssegonga Head PDU
                                           2. Jackie Namirimu   APO




                                                                                                          58
  COMPLIANCE AREA              SCORE/RATING                    FINDINGS

Procurement Structures             8/10       •   The PDE has proper procurement structures in
                                                  place.
                                   80%        •   The User departments do not use PP Form 20 as
                                                  required. There is evidence of user departments
                                                  sourcing suppliers and then simply informing
                                                  the PDU.

Procurement Planning               2/10       •   The PDE did not have any procurement plans in
                                                  place. This was attributed to the fact that the
                                   20%            user departments were not keen on preparing
                                                  their procurement plans.
                                              •   The PDE did not use framework contracts for
                                                  any of its regular procurements.
Solicitation   and   Bidding       4/10       •   There was no record of issue of solicitation
Procedures                                        documents and submission of bids.
                                   40%        •   Standard solicitation documents were not being
                                                  used.
Evaluation Procedures              0/10       •   There was no record at all of the evaluation
                                                  process for any of the procurement cases
                                   0%             reviewed
Contract Placement, Award          1/10       •   Contract management records were not included
and Management                                    on the files reviewed.
                                   10%
Reporting                           1/6       •   Monthly reports have not been submitted since
                                                  August 2007 and are only arranging to submit a
                                   17%            report covering August 2007-June 2008.
                                              •   The reports sampled show that the standard

                                                                                                    59
  COMPLIANCE AREA           SCORE/RATING                            FINDINGS

                                                       format is used and all PP Forms are filled.
Performance of Contracts           0/10            •   There was no record at all of the proceedings of
Committee                                              the CC meetings on any of the files reviewed.
                                   0%
Record Keeping                     2/8             •   The entity did not have proper filing with some
                                                       of the cases reviewed involving loose
                                  25%                  documents.
                                                   •   In general records were not easy to find. Files
                                                       were all incomplete and often times comprised
                                                       only two documents.
                                                   •   The files appeared to have been arranged for the
                                                       purposes of the compliance check, but were
                                                       otherwise none-existent.

Aggregate Compliance              25%                         UN-SATISFACTORY
Score and Compliance
Rating


RECOMMENDATIONS;
  1. PDE should ensure that its departmental heads understand the procurement process through training to
      stop the practice of departments sourcing suppliers directly.
  2. Training on the use of framework contracts is required.
  3. The user departments should initiate procurements using PP Form 20 as under Regulation 104 of the
      PPDA Regulations.
  4. The Ministry should prepare a procurement plan and send a copy of it to PPDA.
  5. PDE advised to record issue of solicitation documents and bid submission using the standard forms
      issued by the PPDA.
  6. The Ministry should use the standard bidding documents issued by PPDA for their different contracts.
  7. When bids are received and opened, there should be a record to that effect and such records filed.
  8. PDU advised to complete its files to include contract management records and other
      information/documentation related to a procurement.
  9. The Composition of the Evaluation Committee should always be approved by the Contracts Committee.
  10. The Evaluation Committee should use the appropriate methodology by law when evaluating bids as
      under Regulation 168(2), 172 and 197 of the PPDA Regulations.
  11. Such Evaluation Committee should always sign the code of ethical conduct before going about their
      business.
  12. An evaluation report should be prepared by the secretary and approved by the Contracts Committee.
  13. The unsuccessful bidders should be given notice in writing as required under Regulation 225(4) of the
      PPDA Regulations.
  14. The best evaluated bidder should also be given notice and the notice of the contract award should be
      posted onto the PPDA website.
  15. The user department should be involved in certifying payments of the contractual sum as provided for
      under Regulation 260(2) (iii) of the PPDA Regulations.
  16. There should be evidence of execution of the contract within the contractual completion date on file.
  17. The Ministry should ensure that monthly reports are submitted in time in accordance with Regulation 40
      of the PPDA Regulations.
  18. The Contracts Committee should always sign the code of ethical conduct in business.
  19. Contracts committee decisions on submissions should be recorded on PP/DPA Forms in accordance with
      Regulation 51(8), 53(2) (c).
  20. The Ministry should ensure that all records contain all the requirements of the law.
  21. The Ministry should improve its filing system.
  22. The Ministry should appraise the performance of its suppliers.



                                                                                                          60
NAME OF PDE: Ministry of Lands, Housing and Urban Development


DATE OF ASSESSMENT: 28th May 2008


MANDATE: Policy making, standard setting, regulation, coordination, inspection monitoring, back-up and
         technical support relating to lands, housing and urban development and to promote and foster
         sustainable human settlement and manage works on government building.


LEGAL/INSTITUTIONAL STATUS: Ministry


BUDGET (GOU/DONORS): Both Government of Uganda and Donors


ACCOUNTING OFFICER (Name): Mr. Gabindadde Musoke


CONTRACTS COMMITTEE MEMBERS (Names):

                                  1.   Mr. Richard Oput              Chairperson
                                  2.   Mr. William Walaga            Member
                                  3.   Mr. Roy Luke Paraka           Member
                                  4.   Mr. Christopher Gashibarake   Member
                                  5.   Mr. Eric Byenkya              Secretary.

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                  1.   Ms. Dorothy Birabwa      Head PDU/PPO
                                  2.   Mr. Balaam Nabuyaka      Senior Procurement Officer.
                                  3.   Mr. Charles Oluk         Procurement Officer
                                  4.   Ms. Rebecca Asio         Secretary
                                  5.   Mr. Kassim Kalungu       Support




                                                                                                         61
 COMPLIANCE          SCORE /                                 FINDINGS
    AREA             RATING

Procurement          4/10          •   Although the Entity was under transformation process, from
Structures                             Ministry of lands, water and Environment, the Accounting Officer
                     40%               has clear understanding of his roles.
                                   • Contracts committee members were all approved by the PS/ST
                                       but PP Form 220 not filed with PPDA.
                                   • The PDE is in place but PP Form 221 not filed with PPDA.
                                   • User departments initiated some of the sampled procurements.
                                   • Internal Auditor carries out post audits.
Procurement          9/10          • Entity had a prequalified suppliers list for June 2005-June 2008.
Planning                           • Entity had not submitted a procurement plan for the FY 2006/07.
                     90%               It was found that the plan had been prepared but had not been
                                       signed.
                                   • Entity was in the process of setting up an electronic assets
                                       register.
                                   • Use frame work contracts for some of the commonly procured
                                       items.
Solicitation   and   10/10     •   PDU has records of issue of Solicitation documents.
bidding procedures             •   Uses SBDs issued by the Authority.
                     100%      •   Minimum bidding periods were observed for all the sampled cases.
                               •   Has record of bid submission and opening.
                               •   Use appropriate solicitation and bidding documents, appropriate
                                   methods and observe biding periods.
Evaluation           8/10          • The CC approves the members of the Evaluations Committee
procedures                             (EC) and the Evaluation Report.
                     80            • Appropriate evaluation methodologies are used.



                                                                                                          62
                                       •   No records of acceptance of Code of Ethical Conduct for
                                           Evaluation Committee

Contract                 6/10        • Notice of contract award not placed on PDE Notice board and not
placement, award                       posted on PPDA website
and management           60%         • Unsuccessful bidders never notified especially under RFQ method.
                                     • CC approves all contracts and copies of signed contracts were on file.
                                     • PDE seeks SG clearance for procurements above 50m.
                                     • No evidence/ performance of contract within the contractual
                                       completion date.
Reporting                4/6           • Entity had not submitted monthly reports from January to
                                            December 2007.
                         67%
Performance      of      5/8         • All the sampled CC decisions were signed and submitted on PP Forms
Contracts                              210.
Committee                63%         • In the CC minutes sampled the CC had not granted any retrospective
                                       approvals
                                     • No record of acceptance of Code of Ethical Conduct in business by CC
                                       members (PP Form 211)
Record Keeping            6/8        • PDU has a record/filling system.
                                     • Most of the sampled cases had the standard procurement reference
                         75%           numbers.
                                     • No record of supplier appraisal/ performance.
Total Score and
Overall Rating of        72 %.                                SATISFACTORY
PDE


 RECOMMENDATIONS

     1. Accounting Officer should be trained on his role in public procurement cycle.
     2. Entity should pre-qualify other providers for June 2008- June 2011.
     3. In the management of the pre-qualified list of providers, a fair and equal opportunity should be accorded
         to all providers through rotation of providers on successive shortlists and there should be no barrier
         created to deter competition
     4. Entity should ensure that procurement plans are signed on time and submitted to the Authority in
         accordance with Regulation 96of the PPDA Regulations 2003.
     5. PDE should avoid omnibus submission of monthly reports. They should be submitted by the 15th day of
         the following month with all the relevant PP Forms and CC.
     6. Procurement and disposal notices should be posted in accordance with Regulation 38 of the PPDA
         Regulations
     7. Contracts Committee members should sign the Ethical Code of conduct at each meeting.
     8. PDU should post BEB Notices and Notices of Contracts award on PPDA website with PPD training.
     9. All unsuccessful bidders should be notified in writing.
     10. The Procurement and Disposal Unit should get involved in contract management, should keep copies of
         all the relevant documents.
     11. Entity should have a supplier appraisal/performance system.




                                                                                                                63
NAME OF PDE: Ministry of Public Service.


DATE OF ASSESSMENT: 22nd -23rd July 2008


MANDATE: The Ministry of Public Service, as the overall Ministry responsible for the management of the
          Public Service sector.

LEGAL/INSTITUTIONAL STATUS: Central Government Ministry.


BUDGET (GOU/DONORS): Basket funding – DFID/World Bank/DANIDA and Irish Aid.


SIZE OF PDE: Medium


ACCOUNTING OFFICER: Mr. Jimmy K. Lwamafa


CONTRACTS COMMITTEE MEMBERS (Names):

                                    1.   Adah K. Muwanga - Chairperson
                                    2.   Salome Nyamungu - Member
                                    3.   Jane K. Mwesigwa - Member
                                    4.   Mary Nankabirwa - Member
                                    5.   Benon Kigenyi – Member

PROCUREMENT AND DISPOSAL UNIT MEMBER (Names):

                                    1. Robert Kiwanuka      SPO
                                    2. Specioza Mukazi      PO




                                                                                                   64
   COMPLIANCE AREA             SCORE /                                FINDINGS
                               RATING

Procurement Structures          8/10     • The Accounting Officer has a clear understanding of his role for the
                                           overall responsibility of the procurement and disposal process.
                                80%      • The 5 CC members are approved by PS/ST and PPDA PP Form 220 is
                                           filed with the Authority.
                                         • PDU is established and PP Form 221 is filled with the Authority.
                                         • Internal Auditor is only involved in negotiation and verification of
                                           contract.
Procurement Planning            5/10     • Has a pre-qualified list of providers.
                                         • Entity has procurement plans for some departments.
                                50%      • Has procurement plan for FY 2007/08 but in World Bank format.
                                         • Have an assets register with provision of an assets disposal plan.
                                         • No use of framework contracts for the use common items.
Solicitation   and   Bidding    8/10     • There are records of issue of Solicitation documents and receipt of bids
procedures                                 on PP Forms.
                                80%      • Use of Standard Bidding Documents issued by the Authority for all the
                                           sampled cases.
                                         • Appropriate procurement methods used.
                                         • Minimum bidding periods were observed for the sampled cases.
Evaluation procedures           8/10     • The CC approves the members of the Evaluations Committee and the
                                           Evaluation Report.
                                80%      • All the Evaluation Committee minutes and Evaluation Reports were
                                           signed for all the sampled cases.
                                         • There was record of Acceptance of Code of Ethical Conduct for EC


                                                                                                                65
  COMPLIANCE AREA              SCORE /                                  FINDINGS
                               RATING

                                             members.
Contract placement, award        710       • PDU displays BEB notices on the Entity’s notice board for statutory
and management                               display period, however, does not post them on the PPDA web site.
                                70%        • The unsuccessful bidders are some times issued a notification ward in
                                             writing.
                                           • Entity gets all the relevant approvals i.e. CC, SG and Donors where
                                             applicable.
                                           • All the sampled cases were completed within the contractual period.
                                           • User Departments certify payments in most cases.
Reporting                        4/6       • Entity had last submitted monthly reports in March 2008, other reports
                                             were pending CC approvals, however, those submitted were in standard
                                67%          formats.
Performance   of   Contracts     6/8         • Record of Acceptance of Code of Ethical Conduct for CC members
Committee                                         present was available.
                                75%          • All the sampled CC decisions were signed and submitted on PP
                                                  Forms 210.
                                             • In the CC minutes sampled the CC had not granted any
                                                  retrospective approvals.
Record Keeping                   6/8       • Entity has a record/filling system exists in the PDU.
                                           • Not all sampled cases had all the requirements of the law.
                                75 %       • Key documents on contract management are not included on the files
                                           • Entity lacks contract management and supplier appraisal systems.
Total Score and
Overall Rating of PDE           72%                                 SATISFACTORY


RECOMMENDATIONS

       1. The Internal Auditor should audit the entire procurement and disposal processes, payments and
          deliveries.
       2. All User Departments should prepare individual procurement plans.
       3. The Entity’s procurement plan should be prepared with reference to Reg. 97 of the PPDA
          Regulation 70 of 2003.
       4. Entity should use framework contracts for repetitively the procured items with reference to Reg. 237
          of the PPDA Regulations 70 of 2003.
       5. User departments should submit contract management and monitoring reports to the PDU.
       6. All unsuccessful bidders should be notified in writing for all procurements/ disposals.
       7. The Entity should submit monthly reports on time in accordance with 5th Schedule of the PPDA
          Regulations 70 of 2003
       8. PDU records should have all the requirements of the law including copies of all contract payment
          records.
       9. PDU records should have all requirements of the PPDA law including contract management reports
          and copies of all Contract payment records.




                                                                                                                66
NAME OF PDE: Ministry of Trade Tourism and Industry.


DATE OF ASSESSMENT: 22nd May 2008


MANDATE: To Coordinate and Monitor Activities Relating to Trade, Tourism and Industry


LEGAL/INSTITUTIONAL STATUS: Government Ministry


BUDGET (GOU/DONORS): Government Funded


SIZE OF PDE: 170 staff


ACCOUNTING OFFICER (Name): Mr. P. W. Atipo


CONTRACTS COMMITTEE MEMBERS (Names):

                                          1.   Mr. James Tukahirwa Secretary
                                          2.   Mr. Samuel Sekungu  Chairperson
                                          3.   Ms. Ruth Nankabirwa Member
                                          4.   Mr. Silver Ojakol   Member
                                          5.   Mr. Joseph Kitandwe Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                          1. Mr. J.B. Odongo Head PDU
                                          2. Mr. Alex Muhairwe APO




                                                                                        67
   COMPLIANCE AREA                SCORE / RATING            FINDINGS


Procurement Structures                 8/10        Accounting officer was the PS who
                                                   resigned, the Under Secretary is acting.
                                       80%         The Ministry has an approved CC and
                                                   a PDU with 2 staff.
                                                   PP Forms 220 and 221 not files with
                                                   PPDA.
                                                   The Internal Auditor audits deliveries.
Procurement                            5/10        The Ministry has no procurement plan
Planning                                           but has departmental procurement
                                       50%         plans.
                                                   It has a list of prequalified providers.
                                                   It has an Asset Register but no disposal
                                                   plan
Solicitation   and      bidding        6/10        Not all methods used are appropriate to
procedures                                         thresholds.
                                       60%         No record of issue of solicitation
                                                   document on most files.
                                                   The Minimum bidding period is some
                                                   times observed for some procurements.
Evaluation procedures                  4/10        There were a few evaluation reports
                                                   that were filed.
                                       40%         The Evaluation reports are not
                                                   approved by the Contracts Committee.
                                                   The Evaluation Committee members


                                                                                              68
                                                                do not sign the Code of Ethical
                                                                Conduct in Business.
                                                                The        appropriate       evaluation
                                                                methodology is only used in a few
                                                                instances.
Contract placement,      award           6/10                   The notice of contract award is not
and management                                                  posted to the PPDA website for the
                                         60%                    statutory display period.
                                                                The unsuccessful bidders are notified
                                                                on phone and not in writing as required
                                                                by law.
                                                                There        was       evidence      of
                                                                execution/performance of contract with
                                                                in the contractual completion date.
                                                                There was no evidence of involvement
                                                                of user department in certifying
                                                                payment of contractual sum.

Reporting                                 0/6                   The Ministry does not submit monthly
                                                                procurement reports to PPDA.
                                          0%
Performance     of    Contracts           7/8                   There were a few files that had
Committee                                                       contracts committee decisions on a
                                         88%                    submission on PP/DPA Form.
                                                                The Contracts Committee had not
                                                                granted any retrospective approvals.
                                                                The Contracts Committee sign the code
                                                                of ethical conduct in business.
Record Keeping                            1/8                   Record keeping is poor. The
                                                                information is scattered.
                                         13%                    Records filed do not contain all the
                                                                requirements of the law.
                                                                The individual cases do not have
                                                                procurement reference numbers.
                                                                There were no records of supplier
                                                                appraisal/performance.


Aggregate Score and
Compliance Rating                       51 %                    MODERATELY SATISFACTORY



 RECOMMENDATIONS

     1.    The Ministry should file PP Forms 220 and 221 with PPDA.
     2.    The Internal Auditor should audit the procurement processes and deliveries.
     3.    The Ministry should make provision for Asset disposal plan in the Assets Register.
     4.    The Ministry should also draft a procurement plan and submit a copy of it to the Authority.
     5.    The methods of procurement used should always be appropriate to the thresholds.
     6.    The minimum bidding period should always be observed depending on the method of procurement used.
     7.    There should always be evaluation reports after the evaluation of bids which should be approved by the
           Contracts Committee.
     8.    The members of the Evaluation Committee should always sign the Code of Ethical Conduct in Business.
     9.    Notice of the contract award should be posted to the PPDA website for the statutory display period.
     10.   Notification of contract award to the unsuccessful bidders should be in writing as required.
     11.   The user departments should be involved in certifying payment of contractual sums.



                                                                                                              69
12. The Ministry should submit monthly procurement reports accompanied by the Contracts Committee
    minutes as it is a requirement of the law.
13. The Ministry’s PDU should use procurement reference numbers for individual procurements.
14. All records filed should contain all the requirements of the law.
15. The Ministry should also appraise its suppliers’ performance.




                                                                                              70
NAME OF PDE: Ministry of Water and Environment


DATE OF ASSESSMENT: 28th – 29th May 2008


MANDATE:     Provision of water, sanitation and protecting the environment


LEGAL/INSTITUTIONAL STATUS: Ministry


BUDGET (GOU/DONORS): GOU App 250 Billion, Donor funding 5Billion


SIZE OF PDE: 6 Directorates


ACCOUNTING OFFICER (Name): Mr .O. Obong


CONTRACTS COMMITTEE MEMBERS (Names):

                                           1.   Tindimugaya Callist          Chairman
                                           2.   Gashirabake Christopher      Member
                                           3.   Mafabi Paul                  Member
                                           4.   Epitu Joseph                 Secretary
                                           5.   Twinomujuni John             Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                           1.   Alfred Lapyem         PPO
                                           2.   Arinaitwe Christine   Procurement Officer
                                           3.   Opolot Herbert        Procurement Officer
                                           4.   Maria Akidi -         Intern
                                           5.   Arinaitwe Tom         Intern
                                           6.   Acayo Christine       Secretary




                                                                                            71
     COMPLIANCE AREA                SCORE / RATING                FINDINGS


Procurement Structures                   9/10        •   Accounting Officer does not interfere
                                                         in the processes.
                                         90%         •   Vacancy of Senior Procurement
                                                         Officer not filled
Procurement                              10/10       •   The PDE has a procurement plan and
Planning                                                 all other requirements hereunder.
                                         100%
Solicitation     and     bidding          9/10       •   There is partial evidence on issue of
procedures                                               solicitation documents but all other
                                         90%             requirements hereunder were on file.
Evaluation procedures                    9/10        •   CC Members do not always sign code
                                                         of ethical conduct but other than that,
                                         90%             all requirements here under were on
                                                         file.
Contract placement, award and            6/10        •   Notices are not placed on PPDA
management                                               website
                                         60%         •   Unsuccessful bidders are not notified
Reporting                                0/06        •   No monthly procurement reports have
                                                         been submitted for the whole year.
                                         0%
Performance      of     Contracts        8/08        •   Satisfactory for all 10 cases
Committee
                                         100%
Record Keeping                            5/08       •   No supplier appraisal
                                                     •   Some records not on file e.g. bids



                                                                                                   72
                                         63%


Total Score and Compliance
Rating of PDE                            78%                         SATISFACTORY




 RECOMMENDATIONS:

     1. The AO is strongly advised to ensure that all outstanding monthly reports are submitted to PPDA in time
        in accordance with the Fifth Schedule of the PPDA Regulations 2003.
     2. The Ministry should appraise the performance of its suppliers.
     3. All records on the file should contain all the requirements of the law.
     4. Notices of contract award should be posted onto the PPDA website for the statutory display period.
     5. The unsuccessful bidder should be notified in writing as provided for by the Law.
     6. The Contracts Committee members should always sign the code of ethical conduct in business.




                                                                                                            73
NAME OF PDE: Ministry of Works, Transport and Communication


DATE OF ASSESSMENT: 5th – 6th June 2008


MANDATE:
             • Plan, develop and maintain an economic, efficient and effective transport infrastructure;
             • Plan, develop and maintain an economic, efficient and affective transport services by road, rail
               and air;
             • Manage public works
             • Promote standards in the construction industry.


LEGAL/INSTITUTIONAL STATUS: Central Government Ministry


BUDGET (GOU/DONORS): GOU - 266 billion.
                     Donors - 336 billion.


SIZE OF PDE: Total number of staff about 1,400.


ACCOUNTING OFFICER (Name): Mr. Charles Muganzi


CONTRACTS COMMITTEE MEMBERS (Names):

                                1.   Engineer Ssebbuga Kimeze          Chairperson
                                2.   Engineer Kavuma Kagyina           Assistant Chairperson
                                3.   Engineer Justine Ongom            Member
                                4.   Engineer Robert Rwanga            Secretary
                                5.   Ms. Patience Kabiije              Member

                                    Co-opted members
                                1. Mrs. Ethel Kamba             PAS
                                2. Mrs. Jennifer Lutimba        Principal Economist, Planning.


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                1. Mr. Denis Ayo         SPO- Ag. HPDU
                                2. Jackline Bagaya       PO
                                3. Kamana Geofrey PO (Soroti Flying School)




                                                                                                            74
COMPLIANCE AREA            SCORE /                               FINDINGS
                           RATING

Procurement Structures      6/10         •      There is an AO who is responsible for all the procurements
                                                and disposals
                            60%          •      CC in place and made up of 5 members approved by PS/ST
                                                and 2 co-opted members authorized by the Authority.
                                                However, from our discussion with CC.
                                         •      Entity has an established Procurement and Disposal Unit
                                                and PP Form 221 filed with PPDA.
                                         •      The User Departments initiate procurements on PP Form 20.
                                         •      No evidence that the Internal Auditor has audited the
                                                procurement and disposal process, payments and deliveries.
Procurement Planning        5/10     •       Departmental procurement plans are not submitted to the PDU
                                             and so there is no approved procurement plan for the entity.
                            50%      •       The Entity has an approved list of pre-qualified provider.
                                     •       The Entity has an Assets Register that is kept with the finance
                                             department.
Solicitation and bidding    8/10     •       Solicitation documents are in the standard format issued by
procedures                                   PPDA.
                            80%      •       For some procurements the solicitation documents were not on
                                             file
                                     •       Procurement methods used are in some cases not within the
                                             required threshold.
                                     •       Record of Bid Submission and Opening
Evaluation procedures       9/10     •       Evaluation committees in place,
                                              approved by CC


                                                                                                               75
                                              •   Evaluation reports are approved by CC
                              90%             •   In a few cases evaluation reports were not in the procurement
                                                  files and no notice of best evaluated bidder.
Contract    placement,         3/10           •   Lack of solicitor general approval for some of the contracts.
award and management                          •   No notification of award made to the unsuccessful bidder
                              30%             •   User department is not involved in certifying payment of
                                                  contractual sum.
                                              •   Direct procurements are many
Reporting                      4/6            •   CC has been preparing the monthly reports and not the PDU.
                                              •   Reporting is not in the standard format. Subject matter is not
                              67%                 clear, date of award and contract value not filled for some
                                                  procurements
                                              •   For some of the monthly reports the sections on contract
                                                  amendments and variations, contracts completed are not filled.
                                              •   Some procurements such as fuel are not reflected in the
                                                  monthly reports.
Performance         of         7/8            •   CC members meet once every week and consider all
Contracts Committee                               procurements from the PDU to ensure compliance.
                              88%             •   Minutes of CC meetings are well kept, however copies of the
                                                  minutes are in some cases not filed in the procurement files.
Record Keeping                 6/8            •   For a sample of procurements, solicitation documents, bids
                                                  submitted by the bidders and evaluation reports were not filed.
                              75%             •   Contract management records not on file
                                              •   Pre bid minutes and CC minutes not on file
                                              •   Approval of solicitor general not on file.

Aggregate Score and           67 %
Compliance Rating                                                  SATISFACTORY



 RECOMMENDATIONS

     1. Procurement plans should be prepared in the appropriate format.
     2. User departments should prepare work plans and submit to the PDU for preparation of an annual plan in
        accordance with section 60 of the PPDA Act..
     3. All the necessary records for a specific procurement should be properly filed.
     4. Evaluation reports should be prepared and filed for each evaluation and submitted to CC for approval.
     5. Regulation 225 (4) on contract award should be adhered to. Unsuccessful bidders should be notified of
        the award to successful bidder.
     6. User departments should be involved in certifying payments.
     7. Use of direct procurement method should be limited to only exceptional circumstances where
        competition is impossible to achieve.
     8. All the records on procurement should be filed and these include; solicitation documents, bids received
        evaluation reports, contract management records, CC minutes and solicitor general approval.




                                                                                                                    76
3.1.2   Government Departments / Agencies


        NAME OF PDE: Office of the Auditor General


        DATE OF ASSESSMENT: June 2008


        MANDATE: To ensure that public funds are spent in accordance with the Public Finance and
                 Accountability Act with due regard to economy, efficiency and value for money.


        LEGAL/INSTITUTIONAL STATUS: Constitutional Body


        BUDGET (GOU/DONORS): 2,313,189,898=.


        SIZE OF PDE: medium entity


        ACCOUNTING OFFICER: Ms. Kecho Kayemba Nyapendi


        CONTRACTS COMMITTEE MEMBERS (Names):

               1. Ms. Beatrice Wambethe
               2. Ms. Sherina Behakanira
               3. Mr. Samuel Kavubu
               4. Mr. Joseph Ewama

        PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

               1. Mr. Edward Barigye




                                                                                                   77
     COMPLIANCE AREA               SCORE / RATING                FINDINGS


Procurement Structures                  8/10        •   5 CC had been approved by the PS/ST
                                        80%             however one member of the contracts
                                                        committee (Dr. Dixon) had left the
                                                        Office of the Auditor General to the
                                                        Accountant General’s office.
                                                    •   The PDU is understaffed in that there
                                                        is only one procurement officer.
Procurement                             7/10        •   The procurement plan is in place but
Planning                                70%             the entity does not follow it in many
                                                        procurements.
                                                    •    The entity has a list of pre-qualified
                                                        providers but there is no evidence of
                                                        the rotation of providers on this list
                                                    •   The entity does not use framework
                                                        contracts for repetitive procurements.
Solicitation   and       bidding        6/10        •   The entity does not always use
procedures                              60%             standard forms as per regulations eg
                                                        the minutes of the CC meetings are are
                                                        not on the PP Forms but in the
                                                        traditional Public Service system of
                                                        minuting and as a result the Secretary
                                                        signs the minutes but the Chairman and
                                                        other members usually do not sign the
                                                        minutes and the Ethical Code of
                                                        Conduct.
                                                    •    The reviewed cases were a mixture of


                                                                                                  78
                                                              the different methods of procurement
                                                              but the most common was the selective
                                                              bidding and direct procurement. The
                                                              entity did not seek any deviations from
                                                              PPDA on the procurement cases
                                                              assessed.
Evaluation procedures                   5/10              •   Some of the procurements are not
                                        50%                   evaluated as management sometimes
                                                              approves a contract first and later sends
                                                              it down for ratification.
Contract placement, award and           3/10              •   There was no evidence of documents
management                              30%                   pertaining to contract management
                                                              within the entity

Reporting                                2/6              •   The Entity does not submit timely
                                        33%                   monthly reports as required and is
                                                              therefore not compliant in this critical
                                                              area
Performance      of     Contracts        4/8              •   Retrospective approval of some
Committee                               50%                   procurements because decision has
                                                              already been taken by management e.g.
                                                              case of Crusader House partitioning.
                                                          •   Members do not have the PPDA
                                                              Regulations
                                                          •   Contracts Committee not represented
                                                              during bid opening contrary to the law.
                                                          •   Records of meetings available on files
                                                              but not in the stipulated PP forms.
                                                          •   There was no evidence that members
                                                              of the contracts committee and
                                                              evaluation committee were signing an
                                                              ethical code of conduct.
Record Keeping                           3/8              •   The entity keeps scattered documents
                                        38%                   but those which are available are kept
                                                              well
Total Score and Overall Rating
of PDE                                  53%               MODERATELY SATISFACTORY




 RECOMMENDATIONS:

              1. The Accounting Officer should nominate a replacement for the Contracts Committee member
                 who left the Entity and forward the name to PS/ST for approval.
              2. The Entity needs to improve its records management system.
              3. The Entity should make and submit monthly reports to PPDA in accordance with the
                 regulations.
              4. In future, Management and the Contracts Committee should desist from making retrospective
                 approvals of procurement contracts.
              5. The Entity should embark on using reference numbers and improve on the reporting of
                 procurements as per the regulations,
              6. The Entity should use standard PP and DPA Forms for all procurement and disposal
                 transactions.
              7. The Entity should submit procurement plan to the Authority and also adhere to it in its
                 procurements.



                                                                                                          79
8. All the members of the Contracts Committee should be availed copies of the PPDA Act and
    Regulations for their ease of reference.
9. The Entity should encourage the use of framework contracts for repetitive procurements.
10. The PDU generally lacks office facilities and the current staffing is low compared to the work.
    Since this could be one of the factors leading to the Entity’s non compliance with regard to
    submission of monthly reports, it should be urgently addressed by the Entity.
11. The Entity should ensure that a member of the Contracts Committee attends the opening of bids
    as required by the law.




                                                                                                80
NAME OF PDE: Courts of Judicature


DATE OF ASSESSMENT: 10th – 11th June 2008


MANDATE: To exercise judicial powers in the name of the people and in conformity with the law and with
         the value, norms and aspiration of the people.

LEGAL/INSTITUTIONAL STATUS: Government Department


BUDGET (GOU/DONORS): GOU and Donors (DANIDA)


SIZE OF PDE: 250 staff headquarters, 1,000 staff the whole PDE.


ACCOUNTING OFFICER: Mr. Tusingwire Elisha


CONTRACTS COMMITTEE MEMBERS (Names):

                                  1. Ms Harriet Akello Secretary
                                  2. Mr. Semwogerere M. Robert, Assistant Secretary High Court - member
                                  3. Mr. Musene ,Registrar - member
                                  4. Mr.James Ecret, Senior Economist - Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                  1. Mr. Aribaruho Andrew SPO
                                  2. Watera Susan PO
                                  3. Adroa Herbert APO




                                                                                                     81
    COMPLIANCE AREA               SCORE /                         FINDINGS
                                  RATING

Procurement Structures             5/10     • The Accounting Officer needs training on some of the
                                              PPDA modules especially the regulations.
                                   50%      • 4 CC Members, entity is in the process of getting a name
                                              approved and sent for approval to PS/ST.
                                            • PP Form 220 is not filed and PP Form 221 has not been
                                              submitted to PPDA
Procurement Planning               4/10     • The user Departments initiates all user plans using PPDA
                                              format but Interviews with the heads of departments are
                                   40%        done verbally and not recorded anywhere.
Solicitation   and      Bidding    10/10    • All the procedures of solicitation and Bidding are
procedures                                    followed respectively using the standard format issued by
                                  100%        the PPDA
Evaluation procedures              9/10     • All the Evaluation carried out but have no minutes
                                  90%         attached.
Contract placement, award and      6/10     • There is no evidence of involvement of user dept in
management                                    certifying payment of Contractual Sum and the final
                                   60%        payments
                                            • Payments are not processed within the payment schedule
                                              specified in the contracts. Unsuccessful bidders are
                                              notified on phone and not in writing.
Reporting                           3/6     • Monthly reports have not been submitted on time because
                                              the Head of the PDU has not been having an officer since
                                   50%        August 2007 and the work load was too much for him.
Performance    of    Contracts      4/8     • The Contracts Committee is doing a good job and has not
Committee                                        granted any retrospective approval. However, they are
                                   50%           fours members instead of five because one member was
                                                 made a judge.


                                                                                                          82
Record Keeping                     5/8        •   This area needs a lot of improvement because all
                                                  records filed do not contain all the requirements of the
                                  63%             law


Total Score and                   64%                           SATISFACTORY
Overall Rating of PDE



RECOMMENDATIONS

   1. The Accounting Officer and District Technical Planning Committee need more training.
   2. The Accounting officer needs training on some of the modules of PPDA especially regulations.
   3. The PDU should be in charge of travel arrangements, fuel, meals, Workshops and training and all this
      related nature of procurements because they are not handled by the PDU
   4. Establish good working relationship between the PDU and other user department.
   5. The PDU must submitted monthly reports by the 15th day of each month for the preceding month.
   6. The filing system should be improved to enable trailing of the procurement process.
   7. The Contracts Committee members should be increased to the required number of five members.
   8. Notices of Best Evaluated Bidder should also be seen to PPDA website and to the unsuccessful Bidders.




                                                                                                             83
NAME: Directorate of Public Prosecutions


DATE OF ASSESSMENT: 14th – 15th April 2008


LEGAL/INSTITUTIONAL STATUS: Government Departments/Agencies


MANDATE: To handle and prosecute criminal cases in the Country, as prescribed by the
      Constitution


SOURCE OF FUNDING: Central Government and Donor funds (under basket funding of the Justice, Law and
Order Sector)


SIZE OF PDE: DPP is composed of the Headquarters, located on Workers House, and 7 up
          country stations; altogether, the Entity has 330 staff.


ACCOUNTING OFFICER: Mr. Amos Ngolobe


CONTRACTS COMMITTEE MEMBERS (Names):

                                      1.   Mrs. Damalie Lwanga – Chairperson
                                      2.   Mr. Samuel Kyambadde – Member
                                      3.   Mr. David Kirya - Secretary (Left the Entity)
                                      4.   Mr. David Odongkara - Member
                                      5.   Mr. Simon Seremba – Member (Left the Entity)


PROCUREMENT & DISPOSAL UNIT MEMBERS (Names):

                                      1. Mr. Baker Ainebyona - Head PDU




                                                                                                 84
     COMPLIANCE AREA               SCORE /                       FINDINGS
                                   RATING

Procurement Structures              7/10     •   PP form 20 is not filed by the Entity.
                                             •   The Contracts Committee has two unfilled positions
                                    70%          following the departure of Mr. Simon Seremba and
                                                 David Kirya.
                                             •   PP Form 221 not filed with the Authority.
Procurement                         7/10     •   Departmental plans not seen
Planning                                     •   Entity has commenced on use of framework
                                    70%          contracts.
Solicitation   and       bidding    10/10    •   Entity is fully compliant.
procedures
                                    100%
Evaluation procedures                9/10    •   Some of the records of acceptance of the code of
                                                 Ethical Conduct for the Evaluation Committee
                                    90%          members not seen but other than that, all records
                                                 were on file.
Contract placement, award and       5/10     •   The Entity does not post notices of the best evaluated
management                                       bidder and contract award on the PPDA Website.
                                    50%      •   No evidence/record of notification of the award to
                                                 the unsuccessful bidders in writing seen on the files
                                                 sampled.
Reporting                            4/6     •   Monthly reports are submitted late. At the time of the
                                                 compliance check, the Entity's May 2007 -
                                    67%          November 2007 were outstanding.
                                             •   Reports submitted are not on PPDA standard forms.




                                                                                                          85
Performance      of   Contracts     5/8         •   Records of Contracts Committee decision not seen
Committee                                           on file.
                                   63%          •   PP form 210 not used.
Record Keeping                      5/8         •   Filing system is still being developed.
                                   63%


Total Score of PDE and             72%                         SATISFACTORY
Compliance Rating


 RECOMMENDATIONS:

     1. Accounting Officer should ensure that the two vacant positions in the Contracts Committee are filled.
     2. PP Form 221 should be filed with the Authority.
     3. The Accounting Officer should ensure that all user departments prepare department plans and submit
        them to the PDU.
     4. Entity should post bid notices on the PPDA website
     5. Unsuccessful bidders should be notified in writing as it is a requirement in the law.
     6. Entity should ensure timely submission of monthly procurement reports which is by the 15th day of each
        month for the preceding month.




                                                                                                            86
NAME OF PDE: Inspectorate of Government


DATE OF ASSESSMENT: 11th – 12th June 2008


MANDATE: Promotion of the rule of law and natural justice in public administration


LEGAL/INSTITUTIONAL STATUS: Government Department


BUDGET (GOU/DONORS): GOU, DANIDA, ADB and Irish Aid


SIZE OF PDE: 272 Employees


ACCOUNTING OFFICER (Name): Mr. Waiswa Bageya


CONTRACTS COMMITTEE MEMBERS (Names):

                                        1.    Mrs. Annet Twine Kyakunda - Chairperson
                                        2.    Gloria Anajun - member
                                        3.    Mugisha Elinah - Member
                                        4.    Makumbi David - Member
                                        5.    Amos Baguma - Secretary

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                        1.    Mr.Kivumbi Abdul         PO
                                        2.    Mr. Atwijukire Alex      PO
                                        3.    Ms. Kigongo Anna.        Secretary




                                                                                        87
COMPLIANCE AREA             SCORE/    •   FINDINGS
                            RATING
Procurement Structures        8/10    •   All CC members were approved by the ST to
                                          Treasury as required by PPDA Reg 45 (3).
                              80%
                                      •   The internal auditor audits the procurement and
                                          disposal process
                                      •   There was no evidence of PP form 221 filled
                                          with PPDA on file.
Procurement Planning          3/10    •   The Entity had a procurement plan (in soft copy)
                                          that had been not been submitted to PPDA.
                              30%
                                      •   There were no departmental procurement plans.
                                      •   An assets register exists.
                                      •   There is no usage of framework contracts of
                                          repetitively procured items.
Solicitation and bidding      10/10   •   There was record of issue of solicitation
procedures                                documents, bid submission and opening
                              100%
                                      •   The entity uses solicitation documents in the
                                          format issued by PPDA
                                      •   Thresholds were adhered to in the determination
                                          of procurement methods
Evaluation procedures         8/10    •   All files reviewed, save for those under direct
                                          procurement, had evaluation reports on file.
                              80%     •   However in a few cases a record of acceptance
                                          of code of ethical conduct for evaluation
                                          committee members were missing of file
Contract placement, award     3/10    •   Copies of signed contracts exists

                                                                                             88
and management                                   •   There were no copies of notices of best
                                   30%               evaluated bidder on file and hence no evidence
                                                     of their posting on the authority web site
                                                 •   Unsuccessful bidders were equally never notified
                                                 •   No evidence of user involvement in certification
                                                     of payments
Reporting                          0/6           •   The entity was not update in terms of Monthly
                                                     reports to the Authority
                                   0%
Performance of Contracts           8/8           •   There was use of forms for meetings (PP Form
Committee                                            210) and record of contracts committee decision.
                                  100%           •   The records of acceptance of code of ethical
                                                     conduct exist.
                                                 •   There was no evidence of a retrospective
                                                     approval by the contracts committee
Record Keeping                     4/8           •   A procurement reference book exists
                                                 •   Individual cases have standard procurement
                                   50%
                                                     reference numbers
                                                 •   Some confusion between services and supplies
                                                     was noted in referencing
                                                 •   Copies of correspondences between the PDE and
                                                     bidder were not on file
                                                 •   There were no record of supplier
                                                     Appraisal/performance
                                                 •
Total Score and                    61%                         •   SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS

    1.    The Accounting officer should file PP form 221 with the PPDA
    2.    The entity should prepare and submit the approved procurement and disposal plan to the Authority
    3.    All departments should prepare their departmental work plans for procurements
    4.    Framework contracts for repetitively procured items should be adopted in the entity
    5.    A record of acceptance of code of ethical conduct for evaluation committee members should be signed
          by all members as required under Reg. 169(9) and 171(5)
    6.    Copies of notices of best evaluated bidder should be put on file
    7.    Unsuccessful bidders should be notified
    8.    Users should certify payments as required by Reg. 260(2)
    9.    The entity should compile and submit all pending procurement monthly reports as required under Reg.
          118(9)
    10.   All records pertaining to a given procurement should be put on the respective files
    11.   The entity should initiate supplier appraisal /performance




                                                                                                          89
NAME OF PDE: Internal Security Organization (ISO)


DATE OF ASSESSMENT: 24th -25th July 2008


MANDATE: To provide accurate, reliable and timely intelligence on national security threats in
         order to support policy making and implementation, law enforcement and general
         stability.

LEGAL/INSTITUTIONAL STATUS: Government Department/ Agency


BUDGET: GOU funding – consolidated fund.


SIZE OF PDE: Confidential


ACCOUNTING OFFICER: Dr. Amos Makumbi – Director General


CONTRACTS COMMITTEE MEMBERS (Names):

                                   1.   Capt. Charles Oluka – Chairman
                                   2.   Capt. Charles Aine
                                   3.   Lt. Fred Kyakulaga – Secretary
                                   4.   Lt. Churchill Tutayombo
                                   5.   Mr. George Baguma


PROCUREMENT AND DISPOSAL UNIT MEMBER (Names):

                                   1. Ms. Hellen Nayiga – Head PDU Office of the President
                                   2. Mr. Ofamba Peter – Head PDU ISO
                                   3. Mr. Mugisha Derrick – Procurement Officer ISO




                                                                                                 90
   COMPLIANCE AREA             SCORE / RATING                        FINDINGS


Procurement Structures              8/10            •    The delegated Accounting Officer has a clear
                                                         understanding of his role for the over all
                                    80%                  responsibility for the procurement and disposal
                                                         process.
                                                    • The 5 CC members are approved by PS/ST but
                                                         PP Form 220 is not filed with PPDA.
                                                    • Has a fully fledged PDU with two staff who
                                                         are in turn supervised by the PDU in the
                                                         president’s office.
                                                    • The user departments initiate procurements on
                                                         PP Form 20.
                                                    • The Internal Auditor carries out post audits
                                                         before payment of contractual sums.
Procurement Planning                7/10        Entity has;
                                                    • An approved pre-qualified list of providers.
                                    70%             • A departmental procurement plan.
                                                    • A procurement plan for FY 2007/08 based on
                                                         the approved budget.
                                                    • An assets register with provisions for assets
                                                         disposal plan.
                                                    • Uses framework contracts for commonly used
                                                         items.
Solicitation   and   Bidding        10/10       Based on the CHOGM related sampled cases;
procedures                                       • PDU had records of issue of Solicitation
                                   100%             documents.
                                                 • Used SBDs issued by the Authority.


                                                                                                           91
  COMPLIANCE AREA              SCORE / RATING                           FINDINGS


                                                     • Minimum bidding periods were observed for all the
                                                       sampled cases.
                                                     • Had record of bid submission and opening
Evaluation procedures                9/10            • The CC approved the members of the Evaluations
                                                       Committee (EC) and the Evaluation Report.
                                    90%              • Appropriate evaluation methodologies were used.
                                                     • The Evaluation Committee minutes and
                                                       Acceptance of Code of Ethical Conduct for EC
                                                       members are signed.
Contract placement, award            7/10              • Notice of contract award not placed on PDE
and management                                             Notice board and not posted on PPDA website
                                    70%                • While contract management was observed, it
                                                           was noted that providers do not have access to
                                                           the PDU’s notice board because of security
                                                           issues and have to rely on letters from the
                                                           PDU on the BEB
                                                       • Unsuccessful bidders are never notified in
                                                           writing.
                                                       • CC approves all contracts and copies of signed
                                                           contracts were on file
Reporting                            0/6               • Entity has never submitted monthly reports,
                                                           pending submission of micro procurements
                                     0%                    from the regional offices.
Performance   of   Contracts         7/8               • Record of Acceptance of Code of Ethical
Committee                                                  Conduct for CC members present was
                                    88%                    available.
                                                       • All the sampled CC decisions were signed and
                                                           submitted on PP Forms 210.
                                                       • In the CC minutes sampled the CC had not
                                                           granted any retrospective approvals.
Record Keeping                       7/8               • Each individual procurement had its own file
                                                           with the respective records including contract
                                    88%                    management records
                                                       • Due to security reasons, it was hard for the tam
                                                           to verify if the PDU had a record/filling
                                                           system.
                                                       • Most of the sampled cases had the standard
                                                           procurement reference numbers.
                                                       • PDE has no supplier appraisal/performance
                                                           system.

Total Score and                     76%                             SATISFACTORY
Overall Rating of PDE

RECOMMENDATIONS

   1. The Entity should urgently implement Section 42 of the PPDA Act that requires national defence and
      security organizations to manage their procurements and disposals on the basis of a dual list.
   2. Since the PDE notice board is not accesses by the public, it should post both the BEB Notices and
      notices for Contract award on the notice board of the Office of the President and PPDA website.
   3. Entity should submit partial report to the PPDA on the macro procurements.
   4. AO should consider the delegation of some procurements (especially micros) to the divisions to fasten
      the procurement and reporting systems.
   5. Entity should have a supplier appraisal system.

                                                                                                            92
NAME OF PDE: National Curriculum Development Centre


DATE OF ASSESSMENT: 16th –17th July 2008


MANDATE: To develop and continually improve on study syllabuses for various levels of
         education.


LEGAL/INSTITUTIONAL STATUS: Government Institution under the Ministry of Education
                            and Sports.

BUDGET (GOU/DONORS): GOU with some support from the African Development Bank.


SIZE OF PDE: Medium


ACCOUNTING OFFICER (Name): Ms. Connie Kateeba


CONTRACTS COMMITTEE MEMBERS (Names):

                                           1. E. Twinomugisha              Chairman
                                           2. Myers Mumanyire              Member
                                           3. Thembo K. Nathan             Member
                                           4. Baguma K. Grace              Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                           1. Livingstone Rugasira - Head PDU




                                                                                        93
 COMPLIANCE AREA           SCORE/RATING                      FINDINGS

Procurement Structures         10/10      •   The PDE has proper procurement structures in
                                              place.
                               100%       •   However PDU is understaffed as there is only one
                                              staff there. In addition a fifth member of the CC is
                                              awaiting approval from PSST.

Procurement Planning           8/10       •   Procurement Plans are in place both for
                                              departments and for the entire PDE.
                               80%        •   The PDE did not use framework contracts for any
                                              of its regular procurements.
Solicitation and Bidding       4/10       •   There was no record of issue of solicitation
Procedures                                    documents and submission of bids.
                               40%        •   Standard solicitation documents were not being
                                              used.
Evaluation Procedures          3/10       •   Evaluation Committee did not sign the ethical
                                              code of conduct.
                               30%        •   No CC approval of evaluation reports.
                                          •   Evaluation Committees not approved by CC.
Contract    Placement,         3/10       •   Contract management records were not included
Award and Management                          on the files reviewed
                               30%
Reporting                       3/6       •   Monthly reports were up to date. However they
                                              were not being made on the standard forms. In
                               50%            addition queries from the PPDA have not been
                                              responded to.
Performance of Contracts       2/10       •   CC did not sign ethical code of conduct.


                                                                                                     94
Committee                                      •   CC minutes were not signed and they did not use
                               25%                 the approved forms for their records and
                                                   approvals.

Record Keeping                 4/8             •   The entity did not have proper filing with some of
                                                   the cases reviewed involving loose documents. In
                               50%                 general records were not easy to find and follow.
Aggregate Compliance
Score and Compliance           51%                   MODERATELY SATISFACTORY
Rating



RECOMMENDATIONS:

   1. Accounting Officer should ensure that the PDU is appropriately staffed with the required number of
      PDU members.
   2. Entity should use framework contracts for routine procured items.
   3. PDU should ensure that the appropriate forms are used for bid submission and bid opening.
   4. Entity should use PPDA Standard Bidding Documents and Forms
   5. Contracts Committee should ensure approval of evaluation committees and evaluation reports.
   6. Contracts committee should sign ethical code of conduct in business prior to a Contracts Committee
      meeting.
   7. All Contracts Committee minutes should be signed and recorded on the appropriate forms.
   8. Entity should ensure proper filing of all procurement records.




                                                                                                        95
NAME OF PDE:        Office of the Prime Minister


DATE OF ASSESSMENT: 5th – 6th June 2008


MANDATE: Leader of Government Business


LEGAL/INSTITUTIONAL STATUS: Government Ministry


BUDGET (GOU/DONORS): (1) 24.8 Billion GOU (2) 4 Billion Donors


SIZE OF PDE: Medium


ACCOUNTING OFFICER: Mr. Odwedo Martin


CONTRACTS COMMITTEE MEMBERS:

                                     1.   Twesigomwe Carlos        Chairman
                                     2.   Okuja James              Secretray
                                     3.   Gashirabake Chrisopher    Member
                                     4.   Emaru Mackay             Member
                                     5.   Sali J.M                 Member (proposed)


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                                     1.    Meke Jane Francis       PPO
                                     2.    Okware Christopher      Procurement Officer
                                     3.    Sarah Bbalangulo        Secretary
                                     4.    Betty Nyangoma          Office Attendant
                                     5.    Rose Akello             Intern




                                                                                         96
     COMPLIANCE AREA               SCORE / RATING                FINDINGS


Procurement Structures                  6/10        •   Donor projects are not managed in the
                                                        OPM procurement structures.
                                        60%         •   Position of the Senior Procurement
                                                        Officer not filled.
                                                    •   All the members of the CC are
                                                        approved by PS/ST.
                                                    •   User departments initiate some of the
                                                        procurements        but     other     are
                                                        retrospective.
Procurement                             8/10        •   The Entity has a shortlist of providers.
Planning                                            •   Departments        have     departmental
                                        80%             procurement plans but are recurrent
                                                        only.
                                                    •   The Entity also has an approved
                                                        procurement plan.
                                                    •   The Entity also makes use of
                                                        framework contracts for items like
                                                        food stuffs, motor vehicle repairs,
                                                        stationery and others.
Solicitation   and       bidding        8/10        •   Partial evidence on issue of solicitation
procedures                                              documents
                                        80%         •   There is evidence of use of
                                                        inappropriate procurement method




                                                                                                    97
Evaluation procedures                    10/10               •   The Entity complies with Evaluation
                                                                 procedures as per the law.

Contract placement, award and             6/10               •   No best evaluated bidder notices
management                                                   •   No notices to unsuccessful bidders as
                                         60%                     required by the law.
                                                             •   Contract documents are approved by
                                                                 the CC/Solicitor General/ Donor,
                                                                 whichever is applicable.
Reporting                                 6/6                •   The Entity’s reporting status is up to
                                                                 date and samples of reports reviewed
                                         100%                    indicate that the standard formats are
                                                                 used and all PP Forms filled.
Performance      of     Contracts         7/8                •   The CC members sign the code of
Committee                                                        ethical conduct in business.
                                                             •   There was some evidence to show that
                                                                 the CC decisions on submissions are
                                                                 recorded on PP/DPA forms.
                                                             •   There were minutes on file and
                                                                 recorded on the appropriate forms.
                                                             •   The Contracts Committee has not
                                                                 granted any retrospective approval.
Record Keeping                            6/8                •   The Entity has a filing system.
                                                             •   Most of the records filed contain all the
                                                                 requirements of the law.
                                                             •   Individual cases have the standard
                                                                 procurement reference numbers.
                                                             •   There was no record of supplier
                                                                 appraisal on file.
Aggregate Score and
Compliance Rating of PDE                 81%                     HIGHLY SATISFACTORY


 RECOMMENDATIONS:

     1. The following projects are not managed under the OPM procurement structures:
                • NUSAF – World Bank
                • NUREP - EU
                • NIMES - World Bank, EU, DFID, ADB,
                • PRDP – World Bank
                • PSM - Danida
        It is recommended that the Accounting Officer ensure that the procurement functions of these projects
        are delegated in writing to the respective project heads in accordance with the PPDA Regulations.
     2. The user departments should always initiate procurements using PP Forms 20.
     3. The unsuccessful bidder should always be notified in writing as under Regulation 225(4) of the PPDA
        Regulations.
     4. The Entity should appraise its suppliers’ performance.




                                                                                                                98
NAME OF PDE: Parliament of Uganda


DATE OF ASSESSMENT: 19th – 20th May 2008


MANDATE: Formulation of laws


LEGAL/INSTITUTIONAL STATUS: Constitutional body


BUDGET (GOU/DONORS): Government of Uganda (Consolidated Fund)


SIZE OF PDE: 278 staff members


ACCOUNTING OFFICER : Mr. Anaeas.M. Tandekwire


CONTRACTS COMMITTEE MEMBERS : (Names)

                         1. Mr. Aloysious Makata - Chairperson
                         2. Mr. Waiswa Henry - Member
                         3. Mrs. Nadwula Margaret - Member
                         4. Mr, Wanyaka Samuel - Member
                         5. Mr. Walubiri Andrew - Secretary


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                         1. Ms. Julianne Kaganzi - Senior Procurement Officer Head PDU
                         2. Mr. James Kabanda - Procurement Officer
                         3. Mr. Patrick Lasu       - Procurement Officer
                         4. Mr, Okot Dicks - Assistant Procurement Officer




                                                                                         99
  COMPLIANCE AREA              SCORE /                          FINDINGS
                               RATING

Procurement Structures          10/10    •   Procurement structures in place.
                                         •   The Accounting Officer has appointed the Contracts
                                100%         Committee approved by PS/ST.
                                         •   The Procurement and Disposal Unit is in place and has
                                             designated offices.
                                         •   Adhoc committees such as Evaluation and Negotiation
                                             committees in place

Procurement                     0/10     •   Entity does not have an approved procurement plan in place.
Planning                                 •   The Entity does not have an approved pre-qualification
                                 0%          /shortlist of providers.
                                         •   The departments in the Entity do not prepare departmental
                                             procurement plans.
                                         •   There was no Assets Register availed for review.

Solicitation   and   bidding    8/10     •   Copies of the approved solicitation documents on files
procedures                                   adhered to the standard PPDA SBDs.
                                80%      •   In some isolated instances, the bidding procedures were not
                                             adhered to BUT as a whole, the Entity adheres to the bidding
                                             procedures.
                                         •   There were records of bid submission and opening on files
                                             perused.
                                         •   The minimum bidding period was observed in most cases.



                                                                                                        100
Evaluation procedures            10/10           •   The evaluation reports seen on files follow the evaluation
                                                     criteria in the solicitation documents and are done in
                                 100%                accordance with the PPDA Regulations.
                                                 •   Evaluation Committee minutes were seen on files.
                                                 •   Evaluation Committee members sign the code of ethical
                                                     conduct.
                                                 •   The members of the Contracts Committee approve the
                                                     composition of the Evaluation Committee.
                                                 •   The Evaluation reports are approved by the Contracts
                                                     Committee.
                                                 •   The Evaluation Committee uses the appropriate Evaluation
                                                     criteria.
Contract placement, award         3/10           •   Few of the contract documents were seen on file.
and management                                   •   No contract management records were on the files.
                                 30%             •   No evidence of clearance of contracts above 50 m/- by the
                                                     Solicitor General.
                                                 •   There was no evidence of execution/performance of contract
                                                     within contractual completion date.

Reporting                         4/6            •   Entity adheres to the reporting requirement under the Fifth
                                                     Schedule.
                                 67%             •   Entity had not filed contracts above US$ 200,000 for the
                                                     period under review.

Performance of Contracts          7/8            •   Contracts Committee meets regularly.
Committee                                        •   Members sign the code of ethical conduct.
                                 88%             •   Minutes were detailed and properly recorded.
                                                 •   The Committee has awarded direct procurement for
                                                     procurements not in accordance with the PPDA Regulations
                                                     for the use of the method.


Record Keeping                    6/8            •   Filing system is in place though some few documents were
                                                     not on the files.
                                 75%             •   The Entity does use individual reference numbers.
                                                 •   There were no records of supplier appraisal in the Entity’s
                                                     records.


Aggregate Score and              67 %                               SATISFACTORY
Compliance Rating




 RECOMMENDATIONS

     1. There is need for the Entity to put in place measures to ensure that there is a procurement and disposal
        plan for the next financial year and that it is approved and a copy thereof submitted to the Authority.
     2. There should be departmental procurement plans submitted to the PDU by departments and signed by
        the Heads of departments.
     3. The procurement files should contain the contract documents and contract management records.
     4. The Entity should seek Solicitor General’s approval for contracts above Ushs. 50m and such records
        should be on the procurement file for a complete record.
     5. Entity is advised to ensure that all the procurements are reflected in the monthly reporting such as
        electricity, water, telephone among others for a complete record.


                                                                                                               101
6. The Entity should submit reports for contracts above US$ 200,000 to the Authority.
7. The Contracts Committee should only use direct procurement in accordance with the law.
8. The Entity should appraise its suppliers’ performance as per Reg. 260 of the PPDA Regulations.




                                                                                                    102
NAME OF PDE: Population Secretariat


DATE OF ASSESSMENT: 25th -26th June 2008


MANDATE: To improve the quality of life of the people of Uganda by influencing government policies
        and programmes to address population trends and patterns


LEGAL/INSTITUTIONAL STATUS: Government Body/ Agency


BUDGET (GOU/DONORS): GOU and Donors through Budget Support


SIZE OF PDE: The entity has 51 members of staff; its annual budget is 1.7bn/= of which approximately 1
             billion Uganda Shillings (58.8%) is spent on procurement.


ACCOUNTING OFFICER:          Mr. Jotham Musinguzi


CONTRACTS COMMITTEE MEMBERS (Names):

                               1.   Mr. Tiondi Andrew       Head, MED, Chairperson CC
                               2.   Mr. Musinguzi Hassan    Head, FAD, Member
                               3.   Mr. Byarugaba Raymond   Accountant, Member
                               4.   Ms. Kigozi Stella       SNPO – ICD, Member
                               5.   Ms. Nzeire Hope         NPO – FHD, Member

PROCUREMENT AND DISPOSAL UNIT MEMBER (Names):

                               1.    Mr. Male Lawrence      Procurement Officer




                                                                                                  103
   COMPLIANCE AREA             SCORE /                                  FINDINGS
                               RATING

Procurement Structures          7/10     • The Accounting Officer has a clear understanding of his role for the
                                           overall responsibility of the procurement and disposal process.
                                70%      • The 5 CC members are approved by PS/ST but PPDA PP Form 220 is
                                           not filed with the Authority.
                                         • All requisitions are initiated by the Finance and Administration (F&A)
                                           department because the entity has small procurements but on PP Form
                                           20
                                         • The PDU is manned by an Officer.
                                         • The entity has no Internal Auditor.
Procurement Planning            5/10     • Entity has a pre-qualified list of providers and usually refers to the list
                                           of providers of Uganda Bureau of Statistics.
                                50%      • No user department procurement plans.
                                         • Has an approved procurement plan for FY 2007/08 prepared by the F &
                                           A department but not in the PPDA format
                                         • Have an assets register with provision of an assets disposal plan.
                                         • No use of framework contracts for the use common items.

Solicitation   and   Bidding    10/10    • There are records of issue of Solicitation documents and receipt of bids
procedures                                 on PP Forms.
                                100%     • Use of Standard Bidding Documents issued by the Authority for all the
                                           sampled cases.
                                         • Appropriate procurement methods used.
                                         • Minimum bidding periods were observed for the sampled cases.


                                                                                                                 104
  COMPLIANCE AREA               SCORE /                                   FINDINGS
                                RATING

Evaluation procedures            10/10       • The CC approves the members of the Evaluations Committee and the
                                               Evaluation Report.
                                 100%        • All the Evaluation Committee minutes and Evaluation Reports were
                                               signed for all the sampled cases.
                                             • There was record of Acceptance of Code of Ethical Conduct for EC
                                               members.
Contract placement, award         4/10       • PDU displays BEB notices on the Entity’s notice board for statutory
and management                                 display period, however, does not post them on the PPDA web site.
                                  40%        • No evidence that the unsuccessful bidders are notified.
                                             • Bid documents are not approved by CC
                                             • No evidence that the contracts sampled were executed within the
                                               contractual period although there were some delays in payment.
                                             • There was no evidence that the User Department is involved in
                                               certifying payment except a few supplies.
Reporting                         6/6        • Entity had submitted all monthly reports using standard formats with all
                                               PP Forms 200,201 and 202 filled and CC minutes attached.
                                 100%        • Had satisfactorily resolved all the queries by the Authority on the
                                               reports submitted.
Performance    of   Contracts     8/8          • Record of Acceptance of Code of Ethical Conduct for CC members
Committee                                           present was available.
                                 100%          • All the sampled CC decisions were signed and submitted on PP
                                                    Forms 210.
                                               • In the CC minutes sampled the CC had not granted any
                                                    retrospective approvals.
Record Keeping                    4/8        • Entity has a record/filling system exists in the PDU.
                                             • The sampled cases did not have the standard procurement reference
                                  50%            numbering, for example, the use of “POPSEC” as the Entity code
                                                 instead of “PS” as provided for in the Central Guide Guidelines
                                             • Key documents on contract management are not included on the files
                                             • Entity lacks contract management and supplier appraisal systems.


Total Score and                  75 %                                  SATISFACTORY
Overall Rating of PDE



RECOMMENDATIONS

   1.    The Entity should recruit more PDU staff.
   2.    PP Forms 220 and 221 on membership of the Contracts Committee and establishment of PDU.
   3.    All procurements should be initiated by users on PP Form 20.
   4.    The Entity should improvise an internal control system on the procurement and disposal processes,
         payments and deliveries.
   5.    User departments should prepare individual procurement plans as an input to the Entity’s approved
         procurement plan.
   6.    The Entity’s procurement plan should be prepared with reference to Reg. 97 of the PPDA Regulation 70
         of 2003.
   7.    Entity should use framework contracts for repetitively the procured items with reference to Reg. 237 of
         the PPDA Regulations 70 of 2003.
   8.    All the bid documents should be approved by CC.
   9.    All unsuccessful bidders should be notified in writing.
   10.   All contracts should be executed within the completion dates.


                                                                                                                  105
11. The User departments should be involved in certifying payments for example by counter signing the
    LPOs.
12. The Entity needs training on the use of procurement reference numbers as stipulated in the PPDA Guide
    line 2 of 2003.
13. The Entity should have a supplier appraisal/ performance system.
14. The User departments should submit contract management and monitoring reports to the PDU.
15. The PDU records should have all requirements of the PPDA law including contract management reports
    and copies of all Contract payment records.




                                                                                                     106
NAME OF PDE: Privatization Unit


DATE OF ASSESSMENT: 26th May 2008


MANDATE: Reform and Divestiture of Public Enterprises


LEGAL/INSTITUTIONAL STATUS: Statutory Body under Ministry of Finance


BUDGET (GOU/DONORS): Government and Donor funds


SIZE OF PDE: Medium


ACCOUNTING OFFICER (Name): Mr. Ssebabi David


CONTRACTS COMMITTEE MEMBERS (Names):

                                      1.    Mr. Byagagire Cilia Turahi
                                      2.    Mr. Oyena James
                                      3.    Mr. Kainamura Billy
                                      4.    Mr. Kajura Khilome


PROCUREMENT DISPOSAL UNIT STAFF (Names):

                                           1. Ms. Violet Kabajaguzi   PO
                                           2. Mwesigye Racheal        SPO




                                                                            107
   COMPLIANCE AREA             SCORE / RATING                  FINDINGS


Procurement Structures              6/10        •   Accounting Officer understands his
                                                    roles.
                                    60%         •   There are only 4 approved CC
                                                    members and an established PDU.
                                                •   PP Form 220 and 221 not filed with
                                                    PPDA.
                                                •   The User department initiates all
                                                    procurements.
                                                •   The Internal Auditor audits deliveries.
Procurement                         7/10        •   Has a procurement plan but uses a list
Planning                                            of pre-qualified providers for the
                                    70%             Ministry of Finance.
                                                •   There were no records to show that the
                                                    Entity has an Assets Register with a
                                                    disposal plan.
                                                •   The Entity makes use of framework
                                                    contracts for frequently procured items.
Solicitation   and   bidding        9/10        •   Standard bidding documents are used
procedures                                          and bids are properly received and
                                    90%             opened.
                                                •   Solicitation documents use the
                                                    standard format given by PPDA.
                                                •   Methods used usually comply with the
                                                    threshold and the minimum bidding
                                                    period observed.


                                                                                               108
      Evaluation procedures                  8/10               •   Each procurement transaction has an
                                                                    evaluation report.
                                             80%                •   Such evaluation reports are approved
                                                                    by the Contracts Committee.
                                                                •   The        appropriate      Evaluation
                                                                    methodology is used when evaluating
                                                                    bids.
      Contract placement,     award          7/10               •   The Best evaluated bidders are always
      and management                                                notified and so are the unsuccessful
                                             70%                    bidders in writing.
                                                                •   There was no evidence of involvement
                                                                    of user departments in certifying
                                                                    payment of contractual sum.

      Reporting                               5/6               •   Monthly reports are submitted in time.
                                                                •   Reports use standard format and all PP
                                             83%                    Forms are filled.

      Performance   of   Contracts            6/8               •   There were a few records of contracts
      Committee                                                     committee decisions on submissions on
                                             75%                    PP/DPA forms.
                                                                •   The Contracts Committee has not
                                                                    granted ant retrospective approvals.
                                                                •   There were minutes on files recorded
                                                                    on the appropriate forms.

      Record Keeping                         5/8               •    The PDE has a proper filing system in
                                                                    the PDU.
                                             63%               •    Most of the records filed contain all the
                                                                    requirements of the law with individual
                                                                    reference numbers.


      Aggregate Score and
      Compliance Rating of PDE               74%                         SATISFACTORY



RECOMMENDATIONS

1. PP Forms 220 and 221 should be filed with PPDA.
2. The Internal Auditor should audit the procurement process and payments in accordance with Regulations 27 – 28 of
   the PPDA Regulations.
3. The Entity should conduct the exercise of pre-qualifying providers.
4. The Entity should get an Assets Register with a disposal plan.
5. The user departments should always get involved in certifying payments of contractual sums.




                                                                                                                109
NAME OF PDE: Rural Electrification Agency


DATE OF ASSESSMENT: 26th -27th May 2008


MANDATE: REA was set up to manage the Rural Electrification Fund



LEGAL/INSTITUTIONAL STATUS: The Entity is a statutory body established by The Electricity
                             (Establishment and Management of Rural Electrification Fund)
                             instrument No. 75/2001 under the Electricity Act CAP 45 of the
                             Laws of Uganda


BUDGET (GOU/DONORS): REA total budget [2007-08 FY] was approximately Ug. Shs 71,531,247,600,
                     sources of these funds being Government of Uganda and Donors (SIDA, World
                     Bank/IDA and JICA). The Procurement slice is about 70%.


SIZE OF PDE:                 The Entity has 27 staff


ACCOUNTING OFFICER (Name): Mr. Kalisa Kabagambe - Permanent Secretary Ministry of Energy and
                           Mineral Development


CONTRACTS COMMITTEE MEMBERS (Names):

                             1.   Mr. Moses Murengezi              Chairperson,
                             2.   Ms Elizabeth Nakkungu            Member,
                             3.   Mr. Geoffrey Kasozi              Member/Secretary,
                             4.   Mr. Richard Muhangi              Member,
                             5.   Ms Barbara Asiimwe               Member,

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                            1.       Ms Annette T Katuramu         Procurement Officer




                                                                                          110
                                   SCORE /
    COMPLIANCE AREA                RATING                      FINDINGS

Procurement Structures              8/10     •   The Accounting has a clear understanding of his
                                                 role.
                                    80%      •   The CC is fully constituted.
                                             •   The user departments initiate all procurements.
                                             •   PP Form 220, 221 and 222 not filed with PPDA.

Procurement Planning                4/10     •   No department and overall approved procurement
                                                 plan
                                    40%      •   No framework contract in use
Solicitation   and       bidding    10/10    •   All Records on file
procedures
                                    100%
Evaluation procedures                9/10    •   No minutes of the evaluation committee meeting
                                                 on file or as part of the evaluation report.
                                    90%      •   Other than that, all other records were on file.
Contract placement, award and       9/10     •   The Entity does not post the notice on the PPDA
management                                       Website but complies with all the other
                                    90%          requirements in this area.
Reporting                            6/6     •   The Entity’s reporting status is up to date.
                                   100%
Performance      of   Contracts     8/8       The Contracts Committee’s performance is satisfactory as
Committee                                     all requirements are complied with.
                                   100%
Record Keeping                      8/8           •   The Entity has a filing system and complies with
                                                      all other requirements in the area.
                                   100%

    Total Score of PDE and         86%                     HIGHLY SATISFACTORY
      Compliance Rating




RECOMMENDATIONS:

1. The Accounting Officer should notify PPDA of the membership of Contracts Committee and
   Procurement Unit using PP Forms 220 and 221.
2. The Accounting Officer should ensure that user departments prepare departmental procurement plans
   and submit them to the PDU for consolidation.
3. The entity should use framework contracts for commonly procured items in accordance with
   Regulation 237.
4. The Evaluation committees should record minutes of their meetings which form the basis of the
   evaluation report.
5. The entity is advised to post notices on the PPDA website.




                                                                                                    112
NAME OF PDE: State House


DATE OF ASSESSEMT: 6th July 2008


MANDATE: To provide at all times, support to the Presidency, to effectively and efficiently perform its
         constitutional obligations, deliver NRM Manifesto pledges and cater for the welfare and
         security of H.E. the President, H.E. the Vice President and their immediate families.


LEGAL/INSTITUTIONAL STATUS: Government Department.


BUDGET (GOU/DONORS): GOU


SIZE OF PDE: Big with 7 departments with decentralized units.– 2500 staff (2300 permanent and 200
              relief), geographically spread on about 65acres of land. Approximately 51% of the total
              budget is spent on procurements.


ACCOUNTING OFFICER (Name): Richard Muhinda


CONTRACTS COMMITTEE MEMBERS (Names):

   1. Mr. Muyingo C.K Steven Senior Private Secretary,      Chairperson
   2. Mr. Mawanda Fadhil - State Attorney                        Member
   3. Mr. Norman Isingoma -     SAS/Finance and Administration Member
   4. Mr. Patrick Muhereza -    PRO/Finance and Administration Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                 1.    Mr. Balinda Edison   -Senior Procurement Officer
                 2.    Mr. Kagugube Micheal – Procurement Officer




                                                                                                  113
 COMPLIANCE   SCORE /                        FINDINGS
    AREA      RATING

Procurement    7/10     •   Only 4 members, the fifth position not filled. The 5th
Structures                  member had been promoted to the post of Under
               70%          Secretary.
                        •   The PDE is in place but PP Form 221 not filed with
                            PPDA.
                        •   The user departments initiate procurements on PP
                            Form 20.
                        •   The Internal Auditor is involved in the procurement
                            process, he always refers to the Contracts Committee
                            minutes.

Procurement    5/10     Entity has
Planning                • An approved pre-qualified list of providers.
               50%      • A departmental procurement plan.
                        • A procurement plan for FY 2007/08 based on the
                            approved budget, however, it is never realized- a lot of
                            money is re-allocated to other activities
                        • A non up dated assets register for example; Entity
                            contracted Ms. Crane Crafts & Engravers Ltd to
                            engrave all its assets in Kampala, Entebbe and up
                            country state lodges with a non defined scope.


                                                                                       114
                                    •    Uses framework contracts for commonly used items
                                         like, dry food supplies and stationery.

Solicitation  and        9/10     • PDU has records of issue of Solicitation documents.
bidding procedures                • Uses SBDs issued by the Authority.
                         90%      • Minimum bidding periods were observed for all the
                                    sampled cases.
                                  • Has record of bid submission and opening

                                However, due to H.E the President’s uncertain programmes,
                                most procurement are urgent usually needed on weekends or
                                public holidays. This is a challenge of which limits the
                                utilization of the bidding procedures, for example the
                                procurement of repair of vehicle is always direct due to security
                                concern.
Evaluation               8/10        • The CC approves the members of the Evaluations
procedures                                Committee (EC) and the Evaluation Report.
                         80%         • Appropriate evaluation methodologies are used.
                                     • No records of acceptance of Code of Ethical Conduct
                                          for Evaluation Committee
                                     • The lengthy vetting process is a big challenge for the
                                          completion of contracts within the contractual
                                          completion dates.
                                     • Users were involved in the certification of payment of
                                          contractual sums by counter signing LPOs in all the
                                          sampled cases.
Contract                 5/10        • BEB Notice posted on the PDE notice board, however
placement, award                          it’s not easily accessible by the public.
and management           50%         • Contract award Notice not placed on PDE Notice
                                          board and not posted on PPDA website.
                                     • Unsuccessful bidders are never notified in writing.
                                     • CC approves all contracts and copies of signed
                                          contracts were on file
Reporting                3/6         • Entity had last submitted monthly reports in February
                                          2008.
                         50%         • Those submitted were all in the standard formats and
                                          all PP Forms 200, 201 & 202 were filed and CC
                                          minutes attached.
Performance         of   5/8         • Record of Acceptance of Code of Ethical Conduct for
Contracts                                 CC members present was available.
Committee                63%         • All the sampled CC decisions were signed and
                                          submitted on PP Forms 210.
                                     • Records of CC decisions not on PP/DPA Forms.
                                     • CC grants retrospective approvals under emergencies.
Record Keeping           5/8         • Entity has a centralized filling system at the registry.
                                     • Most of the sampled cases had the standard
                         63%              procurement reference numbers.
                                     • Entity had no supplier appraisal records on cases
                                          sampled.
Total Score and
Overall Rating of        65%                          SATISFACTORY
PDE
 RECOMMENDATIONS


                                                                                                    115
1. PDE needs training on the delegation powers especially to the CC in cases of emergencies
    procurements.
2. Accounting Officer should forward a name for the 5th member for PS/ST approval.
3. The PDE should file PP Form 221with PPDA.
4. Internal Auditor should audit the entire procurement and disposal processes, payments and
    deliveries.
5. Entity should have an up to date assets register wit ha disposal plan.
6. EC should have records on the acceptance of Code of Ethical Conduct for all Evaluations.
7. Since the PDE notice board is not accesses by the public, it should consider posting both the BEB
    Notices and notices for Contract award on the notice board of the Office of the President and
    PPDA website
8. All unsuccessful bidders should be informed in writing.
9. PDE should make timely submit of all relevant monthly reports by the 15th day of the following
    month.
10. PDU should use PP/DPA Forms at all stages of the procurement and disposal cycle for example,
    CC decisions among others.
11. Entity should establish a supplier appraisal/performance system.




                                                                                               116
NAME OF PDE: Uganda Police


DATE OF ASSESSMENT: 22nd - 23rd May 2008.


MANDATE: PUBLIC : To keep Law and Order in the Country


LEGAL/INSTITUTIONAL STATUS: Government Department


BUDGET (GOU/DONORS): GOU & Donor Funds


SIZE OF PDE: Approximately 221 members of Staff


ACCOUNTING OFFICER (Name): Ms. Kabogoza Musoke Winnie


CONTRACTS COMMITTEE MEMBERS (Names):

                                   1.    Mr. Okoth Ochola - Chairperson
                                   2.    Mr. A.R Arumadri - Secretary
                                   3.    Mr.Tuhaise Dick - Member
                                   4.    Mr. Kiyaga Fred - Member
                                   5.    Mr. Isabirye Patrick -Member



PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                   1.    Mr. Magezi Alfred - SPO
                                   2.    Mr. Ojambo Nakumolo Francis - PPO
                                   3.    Mr. Okou Patrick - PO
                                   4.    Ms. Nabukenya Zam – PO
                                   5.    Mr. Opiko Charles – Support Staff
                                   6.    Mr. Ariko Sam – Support Staff
                                   7.    Ms. Nabakooza Robinah - Secretary
                                   8.    Ms. Kansiime Constance – Special Police Constable
                                   9.    Ms. Nansubuga Betty – Office Attendant
                                   10.   Mr. Kamugisha Chris




                                                                                             117
     COMPLIANCE AREA               SCORE / RATING                           FINDING


Procurement Structures                  6/10        •   CC members approved by PSST though PP Form 220 not
                                                        filed by the entity
                                        60%         •   PDU is fully established although Form 221 which shows
                                                        the composition of the established PDU is not filed with
                                                        PPDA
Procurement                             7/10        •   There’s evidence of an approved list of pre-qualified
Planning                                                providers but no evidence of departmental procurement
                                        70%             plans.
                                                    •   The Entity has an approved procurement plan.
Solicitation   and       bidding        10/10       •   Entity complies with the standard format issued by PPDA
procedures                                              for the documents and the Law for the procedures.
                                        100%        •   The files perused had copies of solicitation document.
                                                    •   The methods used are appropriate to the threshold.
                                                    •   The minimum bidding period was observed for the files
                                                        perused.
                                                    •   The files perused had records of bi submission and
                                                        opening.
Evaluation procedures                   8/10        •   Approval of Evaluation Committee members is done by
                                                        the CC and the appropriate evaluation methodology used.
                                        80%         •   There were Evaluation reports seen on files perused and
                                                        some of such reports were approved by the CC.




                                                                                                        118
Contract placement, award and         2/10            •   No evidence of approval of Contract Documents by the
management                                                CC and Solicitor General for Contracts above 50 million.
                                      20%             •   Notice of Best Evaluated Bidder and Notice of Contract
                                                          award posted on PDE Notice board.
                                                      •   Entity has not posted any notices of contract award on the
                                                          PPDA website.
                                                      •   There was no evidence of execution/performance of
                                                          contract within the contractual completion date.
Reporting                              5/6            •   Monthly reports are not submitted on time and the
                                                          Entity’s reporting is not up to date. The Entity has not
                                      83%                 reported for the period September 2007 to date.

                                                      •   A sample of the reports reviewed indicate that there is use
                                                          Standard Formats
                                                      •   and all PP Forms 200, 201 & 202 are filled and CC
                                                          Minutes attached
Performance      of   Contracts        7/8            •   Evidence of record of acceptance of Code of Ethical
Committee                                                 Conduct in Business by CC members present on PP Form
                                      88%                 211 seen though such form was not present on all files
                                                          perused.
                                                      •   The Entity properly keeps records of the Contracts
                                                          meeting on PP Form 210 and record of signed minutes.
                                                      •   Records of contracts committee decisions on submissions
                                                          on PP/DPA were seen on files perused.

Record Keeping                         5/8            •   There exists a Record/filing system in PDU. There were
                                                          no records of the supplier appraisal performance.
                                      63%             •   The PDU uses standard reference numbers for individual
                                                          cases.
Aggregate Score and                                   •
Compliance Rating                    69%                                 •   SATISFACTORY


   RECOMMENDATIONS

       1. PP Form 220 should filed by the entity.
       2. Entity should file PP Form 221 with the Authority.
       3. The departments in the Entity should endeavor to compile departmental procurement plans and
           submit them to the PDU.
       4. Evaluation reports by the Evaluation committees should always be approved by the Contracts
           Committee.
       5. The unsuccessful bidders should always be notified in writing as required by law.
       6. The CC or solicitor General should always approve the contract documents whenever either is
           required to do so.
       7. The Entity is encouraged to post notices of contract award on the PPDA website for the statutory
           display period.
       8. Documents evidencing execution/performance of contract within the contractual completion date
           should always be put on the respective procurement files.
       9. The Entity should ensure that monthly reports are submitted by the 15th day of the next month and
           that all PP Forms are filled and CC minutes attached to reports as this aids the Authority as it
           reviews the reports.
       10. The Entity should appraise suppliers’ performance to ensure quality services and supplies.


                                                                                                            119
NAME OF PDE: Uganda Prisons Service


DATE OF ASSESSMENT: 12th - 13th July 2008


MANDATE: Overseeing prison services in Uganda


LEGAL/INSTITUTIONAL STATUS: Entity under Ministry of Internal Affairs


BUDGET (GOU/DONORS): GOU                  -


SIZE OF PDE: Medium


ACCOUNTING OFFICER (Name): Mr. Kimono Simon


CONTRACTS COMMITTEE MEMBERS (Names):

                                          1.    Mr. Katungye Moses    Chairperson
                                          2.    Mr. Nyakuni Felix     Member
                                          3.    Mr. Ochen Tommy       Member
                                          4.    Ms. Namuddu Annet     Member
                                          5.    Mr. Elly Muhumuza-    Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                          1. Mr. Lutimba Kyeyune Fred     PPO- HPDU
                                          2. Ms. Gillian Okello Amongin   PO
                                          3. Ms. Kaitesi Jane             OA




                                                                                      120
    COMPLIANCE AREA               SCORE /                           FINDINGS
                                  RATING

Procurement Structures             9/10     •   There is a full structure in the entity, headed by an AO who
                                                undertakes his responsibility for all the procurements and
                                   90%          disposal process. He has an established CC in place made up
                                                of 5 members approved by PS/ST. CC meets at least once in
                                                two weeks.
                                            •   PDU is in place and has three members.
                                            •   PP Forms 220 and 221 not filed with PPDA.
Procurement Planning               10/10    •   An up to date procurement plan was submitted to the
                                                Authority in October 2007 and includes departmental plans.
                                   100%     •   The Entity has an asset Register with a disposal plan.
                                            •   The Entity makes use of framework contracts.
Solicitation   and      bidding    8/10     •   Solicitation documents are in the standard format issued by
procedures                                      PPDA.
                                   80%      •   For some procurements, bids submitted by bidders were not
                                                availed.
                                            •   The Minimum bidding period is in most cases observed.
                                            •   The method used is appropriate to the thresholds for a number
                                                of contracts reviewed.
Evaluation procedures              8/10     •   Evaluation committees in place, approved by CC



                                                                                                   121
                                                  •   Evaluation reports are signed by members of the EC and
                                   80%                approved by CC
                                                  •   There is evidence of non rotation of providers especially for
                                                      vehicle servicing.

Contract placement,      award     3/10           •   Records for contract placement are filed
and management                                    •   For some of the procurements sampled, there was no evidence
                                   30%                of award by letter of bid acceptance from PDE or contract
                                                      documents like LPOs.
                                                  •   There is non submission of letters to unsuccessful bidders
                                                  •   There was no evidence of user department involvement in
                                                      contract management; however CC said that this role is
                                                      delegated to the user departments.
Reporting                           4/6           •   Procurement reference numbers are not written in accordance
                                                      with PPDA guidelines 2002/2003. Numbers are written as
                                   67%                UPN/SUP/07-08/56752/…….
                                                  •   For some of the monthly reports the section on contracts
                                                      completed was not filled yet there were contracts placed.
                                                  •   There are no CC minutes attached
                                                  •   There is evidence of splitting of procurements especially
                                                      stationery.
Performance      of   Contracts     6/8           •   CC members meet at least once in two weeks and consider all
Committee                                             submissions of procurements made.
                                   75%            •   Minutes of some of the CC meetings were not available for
                                                      review.
                                                  •   CC approvals are made using the standard forms for the
                                                      different approval requirements.
Record Keeping                      2/8           •   For a sample of procurements, bids submitted by the bidders
                                                      were available.
                                   25%            •   Contract management records not on file
                                                  •   Approval of solicitor general not on file.
                                                  •   There were no records of supplier appraisal on file.
Aggregate Score and
Compliance Rating                     69%                             SATISFACTORY




  RECOMMENDATIONS

     1.  The Entity should file PP Forms 220 and 221 with the Authority.
     2.  The Entity should compile an Assets Register with a disposal plan in accordance with Reg. 295.
     3.  All the necessary records for a specific procurement should be properly filed.
     4.  There should be rotation of providers.
     5.  User departments should be involved in contract management and certifying payments.
     6.  The unsuccessful bidders should be given notice in writing as required by Regulation 225(4)
     7.  Referencing of procurements should be as per the PPDA guidelines.
     8.  The entity is required to submit to the Authority reports on procurements, disposals and those on
         micro procurements on a monthly basis.
     9. The entity should avoid splitting of procurements.
     10. All minutes of contracts committee meetings held should be properly filed for ease of reference
         on decisions on a particular procurement and recorded on the appropriate forms.
     11. The Entity should appraise its supplier’s performance in accordance Regulation 260.


                                                                                                         122
3.1.3 Statutory Bodies


      NAME OF PDE: Capital Markets Authority


      DATE OF ASSESSMENT: 16th – 17th July 2008


      MANDATE: Monitoring and regulating capital markets


      LEGAL/INSTITUTIONAL STATUS: Statutory Body


      BUDGET (GOU/DONORS): 25% GOU funded and the rest from Donors


      SIZE OF PDE: 22 permanent staff and 2 temporary.


      ACCOUNTING OFFICER: DR. Japheth Katto.


      CONTRACTS COMMITTEE MEMBERS (Names):

                         1.   Ms Anne Mpendo, Manager Research and mkts devt, chairperson
                         2.   Mr. Suuza , Senior State Attorney, member
                         3.   Ms Phoebe Kiconco, Compliance Officer, member
                         4.   Mrs. Ann Kyohairwe Muhangi Public Education Officer, member
                         5.   Mr. L’okolong, Compliance Officer, Secretary


      PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                       1.     Mrs. Bernadette N. Kibuule - Administrator in charge of the Procurement
                                                           Department




                                                                                                        123
     COMPLIANCE AREA               SCORE / RATING                FINDINGS


Procurement Structures                  8/10        •   The Accounting Officer                has
                                                        knowledge of his main roles but
                                        80%             complains that the paper work involved
                                                        is too much,
                                                    •   5CC members are all approved, user
                                                        initiates all procurements on PP Form
                                                        20 but PP Form 221 has not been
                                                        submitted to PPDA and the head of
                                                        PDU is just learning on the job because
                                                        she has no qualifications for
                                                        procurement
Procurement                             10/10       •   The per-qualification/short list of
Planning                                                providers, departmental procurement
                                       100%             plans, an approved procurement plan
                                                        and an Assets Register are all in place.
Solicitation   and       bidding        10/10       •   All the procedures of solicitation and
procedures                                              Bidding are followed respectively
                                       100%             using the standard format issued by the
                                                        PPDA
Evaluation procedures                   8/10        •   All the Evaluation procedures are
                                                        followed but have no minutes attached.
                                        80%



                                                                                                    124
Contract placement, award and            8/10               •   There is evidence of involvement of
management                                                      user dept in certifying payment of
                                         80%                    Contractual Sum and the final
                                                                payments are processed within the
                                                                payment schedule specified in the
                                                                contracts. Unsuccessful bidders are
                                                                notified in writing but are not
                                                                displayed on the PPDA website
                                                                because the Head of PDU has never
                                                                been given a pass word for posting.
Reporting                                 5/6               •   Monthly reports are submitted on time
                                                                using the Standard Formats and PP
                                         83%                    Forms 200,201,202 are filled CC
                                                                Minutes attached

Performance      of   Contracts           7/8               •   The Contracts Committee is doing a
Committee                                                       good job and has not granted any
                                         88%                    retrospective approval.
Record Keeping                            6/8               •   The records are very organized and
                                                                accurate only that there is no supplier
                                         75%                    appraisal / performance records only.

Total Score and Overall Rating           86%                     HIGHLY SATISFACTORY
of PDE




 RECOMMENDATIONS:

     1. Direct Method of procurement should not be used where competition can be obtained and incase
        of an emergency a waiver should be got from the PPDA.
     2. The PDE needs Hands on Training because they have no background on Procurement though
        they are really doing their best.
     3. The IT department of the PPDA should give rights to PDE to assess the Authority’s website in
        order to be able post Notices of best Evaluated Bidder because the Head of the PDU has tried to
        get in touch with IT staff but her efforts are fruitless.
     4. The Head of PDU should be given a procurement Officer to help in the running of the unit
        because she is currently the only member in PDU with a substantial work load.




                                                                                                          125
NAME OF PDE: Cotton Development Organisation


DATE OF ASSESSMENT: 7th July 2008


MANDATE: Regulation, Promotion, and Monitoring of the cotton sector



LEGAL/INSTITUTIONAL STATUS: A Parastatal under Ministry of Agriculture, Animal Industry and
                            Fisheries


BUDGET (GOU/DONORS): Releases from Central Government


SIZE OF PDE: Small


ACCOUNTING OFFICER: Ms Jolly K. Sabune


CONTRACTS COMMITTEE MEMBERS (Names):

                                   1.   Mr. William Owachi        Chairman
                                   2.   Ms Margaret Ngabo         Secretary
                                   3.   Mr. Hillary Magunda       Member
                                   4.   Mr. Edward Katarikawe     Member
                                   5.   Ms Patricia Asimwe (Lawyer) Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                                   1.    Ms Margaret Ngabo        Head PDU
                                   2.    Ms Judith Kabali Assistant Head PDU




                                                                                       126
    COMPLIANCE AREA               SCORE /                            FINDINGS
                                  RATING

Procurement Structures             8/10     • The Accounting Officer has established the Contracts Committee
                                              and PDU in place.
                                   80%      • The CC members are five and approved by PS/ST and
                                              submission was made to PPDA on PP Form 220.
                                            • The user departments initiate procurements on PP Form 20.
                                            • Internal Auditor audits the procurement and disposal processes

Procurement Planning               8/10     • User departments and procurement plans in place
                                            • Entity has a pre-qualified list of providers
                                   80%      • There is use of frame work contracts for commonly procured
                                              supplies such as stationery.

Solicitation   and      Bidding    8/10     • Records of issue of solicitation documents and solicitation
procedures                                    documents kept on the files,
                                   80%      • Record of bid submission and opening seen
                                            • Minimum bidding periods observed by the Entity
                                            • Method used are appropriate to the threshold provided for under
                                              the PPDA Guidelines
Evaluation procedures              9/10     • The CC approves the members of the Evaluations Committee



                                                                                                    127
     COMPLIANCE AREA              SCORE /                               FINDINGS
                                  RATING

                                                and the Evaluation Report.
                                   90%        • The Evaluation Committee minutes and Evaluation Report are
                                                signed.
                                              • Record of Acceptance of Code of Ethical Conduct for EC
                                                members seen on the files.

Contract placement, award and      6/10       • Notice of Best Evaluated bidder seen although the Entity does
management                                      not post them and the notice of contract award on the PPDA
                                   60%          website.
                                              • Contract documents were on files.
                                              • No evidence that the contracts sampled were executed within the
                                                contractual period although there were some delays in payment.
                                              • No evidence that the unsuccessful bidders are notified in writing
                                              • There was evidence that the User Department is involved in
                                                certifying payment.

Reporting                           6/6       • Entity is up to date in it procurement reporting.
                                              • Entity uses the standard PP form in the monthly reporting
                                   100%       • Entity responds to queries raised by the Authority on the monthly
                                                reports.

Performance      of   Contracts     5/8       • CC minutes in place and detailed.
Committee                                     • Sampled the CC had not granted any retrospective approvals.
                                   63%        • Record of Acceptance of Code of Ethical Conduct for CC
                                                  members seen on files.
                                              • No records of supplier appraisal and performance availed.

Record Keeping                      6/8       •   Record/filing system exists in the PDU.
                                              •   The sampled cases did have the standard procurement
                                   75%            reference numbering.


Total Score and                    78%                              SATISFACTORY
Overall Rating of PDE



RECOMMENDATIONS:

1.     The Entity should ensure that the departmental plans are approved by the Heads of Departments
2.     Evidence of notification of the unsuccessful bidders in writing should be put on the individual
       files.
3.     The Entity should post notices of the best evaluated bidder and notices of contract award on the
       PPDA Website.
4.     Contract management records including supplier appraisals should be put on the individual
       procurement files.




                                                                                                        128
NAME OF PDE: Dairy Development Authority


DATE OF ASSESSMENT: 24th – 25th June 2008


MANDATE: To promote, develop and regulate the national dairy industry


LEGAL/INSTITUTIONAL STATUS: Statutory Body


BUDGET (GOU/DONORS): Release from central government and donors


SIZE OF PDE: Small


ACCOUNTING OFFICER:          Dr. Twinamasiko


CONTRACTS COMMITTEE MEMBERS: (Names):

                                      1.   Mr. Masimilo James Chairperson
                                      2.   Mr. Muzira Issa    Member
                                      3.   Mr. J.B Ssuza       Member
                                      4.   Mr. Ekyari Vincent  Secretary

All members have not been approved by PS/ST.


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                      1. Moses Okello      PO




                                                                            129
    COMPLIANCE AREA        SCORE / RATING                  FINDINGS


Procurement Structures          3/10        •   The entity has the procurement structures
                                                but the CC is not fully constituted and has
                                30%             not been approved by PS/ST. The PDU is
                                                headed by an officer who at the same time
                                                performs finance/accounting functions
                                                which brings conflict in the performance of
                                                the two functions.
Procurement                     3/10        •   The procurement plan is not in place and
Planning                                        the issue was brought to the attention of the
                                30%             accounting officer.
                                            •   There is a list of pre-qualified providers but
                                                there is no rotation.
Solicitation and bidding        2/10        •   The entity does not use standard forms as
procedures                                      per regulations and the minute of the
                                20%             Contracts Committee meetings are not on
                                                the standard PP Forms.
Evaluation procedures           3/10        •   There were no specific cases reviewed as
                                                the files were not availed with the argument
                                30%             that the entity only does micro-
                                                procurements of items like tea and sugar.
                                            •   It was therefore not possible to establish the



                                                                                       130
                                                               evaluation procedures being used if at all
                                                               there was indeed any evaluation process
                                                               taking place.
                                                           •   The entity sought for a deviation from
                                                               PPDA in respect of procurement for a milk
                                                               processing plant on behalf of NAADS but
                                                               only one company responded.
                                                           •   The Israeli company which responded was
                                                               not even compliant, complaining that they
                                                               were not used to biddings with very
                                                               voluminous paper work.
Contract placement, award and            1/10              •   The entity did not avail any documents to
management                                                     verify this.
                                                           •   In the case of the Dairy Mini Plant, the
                                         1%                    Accounting Officer communicated by
                                                               email to one of the companies indicating
                                                               that the cooler was needed in five days.
                                                           •   No procurement notices are posted on the
                                                               notice board.
Reporting                                0/6               •   The entity is not compliant generally as far
                                                               as reporting is concerned.
                                         0%                •   The entity does not make and submit
                                                               monthly reports.
Performance of Contracts                 3/8               •   The chairman and secretary left. The
Committee                                                      secretary has not been replaced although
                                        38%                    there is an acting chairman.
Record Keeping                           2/8               •   The entity keeps scattered documents and
                                                               there were no single procurement files
                                        25%                    availed and no cases were reviewed
Total Score and overall Rating
of PDE                                  24 %                           UNSATISFACTORY



   RECOMMENDATIONS:

   1. The entity must start making and submitted the monthly reports.
   2. The entity should start using reference numbers for procurements as provided in the Regulations
      and Guidelines issued by PPDA.
   3. The entity should submit monthly reports for all procurements and disposal activities.
   4. The entity should prepare annual procurement plan in accordance with the law and submit a copy
      to PPDA as per regulations in addition to the required reports
   5. The entity must strictly adhere to micro-procurement threshold and other thresholds.
   6. The Chairman and secretary of the Contracts Committee who left the entity must be replaced
      immediately to have a fully constituted and functioning Contracts Committee.
   7. Minutes of the contracts committee for the months of January –June 2008 should be prepared and
      submitted with the monthly reports.
   8. The Entity claims that it only does micro-procurements like buying tea and sugar, but
       even if this is the case, these procurements must be included in the monthly reports
       submitted to PPDA.




                                                                                                    131
NAME OF PDE: Electricity Regulatory Authority (ERA)


DATE OF ASSESSMENT: 18th – 19th June 2008


MANDATE: To regulate the generation, transmission, distribution, import and sale of electricity
         in Uganda.


LEGAL/INSTITUTIONAL STATUS: ERA is Statutory Body established under the Electricity
                            Act 1999 Cap 145


BUDGET (GOU/DONORS): 3.6 billions


SIZE OF PDE: 30 Employees


ACCOUNTING OFFICER (Name): Eng. Dr. F.B Sebbowa



CONTRACTS COMMITTEE MEMBERS (Names):

                                       1.   Mr. Johnson Kwesigabo              Chairperson
                                       2.   Jack Mukumbya                      Secretary
                                       3.   Eng. James Omara Ogwang            Member
                                       4.   Mr. Benon Mutambi                  Member
                                       5.   Mrs. Sarah Banage                  Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                       1. Mrs. Doreen T. Akatuhwera       Head PDU




                                                                                                  132
COMPLIANCE AREA            SCORE/                        FINDINGS
                           RATING
Procurement Structures       9/10    •   All CC members were approved by the ST to
                                         treasury as required by PPDA Reg 45 (3).
                             90%
                                     •   Though the internal audit function is outsourced,
                                         all payments were first passed by them
                                     •   There was no evidence of PP form 221 filled
                                         with PPDA
Procurement Planning         10/10   •   The Entity had an approved procurement plan
                                     •   An assets register exists
                             100%
                                     •   Framework contracts for repetitively procured
                                         items.
Solicitation and bidding     10/10   •   There was a record of issue of solicitation
procedures                               documents, bid submission and opening.
                             100%
                                     •   The entity uses solicitation documents in the
                                         format issued by PPDA.
                                     •   Thresholds were adhered to in the determination
                                         of procurement methods
Evaluation procedures        10/10   •   All files reviewed had evaluation reports on file.
                                     •   Members of evaluation committee were



                                                                                              133
                                100%                approved by CC
                                                •   In the cases reviewed, evaluation followed
                                                    evaluation criteria
                                                •   Records of acceptance of code of ethical conduct
                                                    for evaluation committee members were on file.
                                                •   CC approved all evaluation reports.
Contract placement, award        6/10           •   Copies of signed contracts exist.
and management                                  •   Copies of notices of best evaluated bidder were
                                 60%                on file though no evidence to indicate their
                                                    posting on the authority web site were on files.
                                                •   There was no evidence of notification made to
                                                    unsuccessful bidders.
                                                •   Users were involvement in certification of
                                                    payments.
Reporting                         6/6           •   The entity was update in terms of Monthly
                                 60%                reports to the Authority in the formats prescribed
                                                    by PPDA
Performance of Contracts          7/8           •   There was lack of consistent use of forms for
Committee                                           meetings (PP Form 210) and record of contracts
                                 88%                committee decision as the CC preferred a
                                                    simplified in house developed versions.
                                                •   Acceptance of code of ethical conduct exist on
                                                    files.
                                                •   There was no evidence of a retrospective
                                                    approval by the contracts committee
Record Keeping                    5/8           •   A record/filing systems exists
                                                •   A procurement reference book exists
                                 63%
                                                •   Individual cases have standard procurement
                                                    reference numbers.
                                                •   Most files reviewed had no acceptance letters
                                                    from successful bidders.
                                                •   There were no record of supplier
                                                    appraisal/performance

Total Score and                  86%                       HIGHLY SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS:

   1. The Accounting officer should file PP form 221 with the PPDA as required by reg. 57.
   2. Unsuccessful bidders should be notified in writing as required under Reg. 225(4)
   3. The entity should post on the PPDA web site the Best evaluated bidder and notice of contract
      award as required under reg. 224(3)
   4. The entity should maintain such performance in this compliance area.
   5. The contracts committee should desist from using house developed versions and stick to PP/DPA
      form as provided for under Reg. 51(8), 53(2)(c)
   6. All records pertaining to a given procurement should be put on the respective files as per reg. 90
      and 91.
   7. The entity should initiate supplier appraisal /performance as required under reg. 260




                                                                                                         134
NAME OF PDE: National Environment Management Authority (NEMA)


DATE OF ASSESSMENT: 9th-10th July 2008


MANDATE: To coordinate, monitor and supervise sustainable management of the environment in
          Uganda.


LEGAL/INSTITUTIONAL STATUS: The Entity is a statutory body established by The National
                                 Environment Act, CAP. 153 of the Laws of Uganda.


BUDGET (GOU/DONORS): GOU and Donors


SIZE OF PDE: 57 staff


ACCOUNTING OFFICER: Mr. Henry Aramanya-Mugisha


CONTRACTS COMMITTEE MEMBERS (Names):

                                  1.   Mr. Ronald Kagwa          Chairperson
                                  2.   Ms. Beatrice Adimola      Member
                                  3.   Ms. Goretti Kituntu       Member
                                  4.   Ms. Christine Akello      Secretary

                                  There is a possibility that the tenure of some of the Contracts
                                  Committee members expired.


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                  1. Mr. Allen Asasira   Procurement Officer




                                                                                             135
      COMPLIANCE AREA                 SCORE / RATING                      FINDINGS


Procurement Structures                     6/10        •   There is a possibility that the tenure of some of the
                                                           Contracts Committee members expired; meeting
                                           60%             with them revealed. Some of the Contracts
                                                           Committee could not remember when they were
                                                           appointed, but remember that it is over three years
                                                           ago. No record was on file
                                                       •   PP Form 220, 221 and 222 not filed with PPDA
Procurement Planning                       6/10        •   No departmental procurement plans
                                                       •   PDE does not use framework contracts for
                                           60%             commonly procured items
Solicitation and bidding procedures        7/10        •   PDE does not usually record issue of bidding
                                                           document, receipt of bid and conduct public opening
                                           70%             of bids
Evaluation procedures                      8/10        •   No record on file of signed Code of Ethical Conduct
                                                           for EC members and no Evaluation minutes on file
                                           80%             but the other requirements hereunder were on file.




                                                                                                    136
Contract placement, award and          4/10           •   No record of Notice of Best Evaluated Bidder;
management                                                Notification of the award to unsuccessful bidders
                                      40%
Reporting                              4/6            •   Submission of monthly reports on procurement and
                                                          disposal not on time.
                                      67%             •   The reports should include reporting of items such
                                                          as fuel, utilities (water, electricity, telephone) and
                                                          staff welfare items (sugar, milk)
Performance       of     Contracts     7/8            •   There were some cases of retrospective approvals.
Committee                                             •   There were copies of signed codes of ethical conduct
                                      88%                 by the contracts committee.
                                                      •   There were minutes on file but not recorded on the
                                                          appropriate forms
Record Keeping                         5/8            •   Most records on the procurement files lack all the
                                                          requirements of the law.
                                      63%             •   The Entity does not appraise the performance of its
                                                          suppliers.

Total Score of PDE and Compliance     65 %                            SATISFACTORY
Rating



 RECOMMENDATIONS:

     1. Accounting Officer should ascertain status of tenure of Contracts Committee.
     2. Accounting Officer should ensure preparation of departmental procurement plans.
     3. PDE should use framework contracts for items such as stationary and fuel.
     4. The PDE should record issue of bidding documents, receipt of bids using the relevant
        PPDA Standard forms.
     5. The EC members should ensure that they sign the Ethical Code of Conduct and Evaluation
          minutes are kept.
     6. PDE should post notices of best evaluated bidder to the PPDA website.
     7. Notification of award should be sent to unsuccessful bidders.
     8. Contracts Committee should avoid granting retrospective approvals.
     9. The PDE should improve on record keeping.




                                                                                                    137
NAME OF PDE: National Forestry Authority


DATE OF ASSESSMENT: 4th – 5th June 2008


MANDATE: To regulate the use and management of all both natural and plantation Public
         Forests


LEGAL/INSTITUTIONAL STATUS: Statutory body created by an act of Parliament.

BUDGET (GOU/DONORS): Receives only 30% of its budget from GOU, the rest is donor funded.
                     More than 50% of the PDE’s budget is spent on procurement. In
                     addition, the PDE generates it own revenue mostly through the sale of
                     timber and the leasing to private developers of Eco Tourism Sites.


SIZE OF PDE: 380 Members of Staff operating in 8 ranges and at the Head Office.


ACCOUNTING OFFICER (Name): Mr. Damian Akankwasa


CONTRACTS COMMITTEE MEMBERS (Names):

                                                 1.   John Diisi            Chairman
                                                 2.   Susan Akahinga        Secretary
                                                 3.   Godfrey Jao Acaye     Member
                                                 4.   Silver Mwesigwa       Member
                                                 5.   Loy Kyarimpa          Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                                 1. Allan Katusiime Head PDU




                                                                                        138
  COMPLIANCE AREA              SCORE/RATING                     FINDINGS

Procurement Structures             10/10      •   The CC requires training in order to execute its
                                                  duties better.
                                   100%
Procurement Planning                8/10      •   Procurement Plan is in place but user
                                                  departments do not appear to know how to use it
                                   80%            resulting in urgent procurements all the time.
Solicitation   and   Bidding       6/10       •   The PDE was not using standard PPDA
Procedures                                        documents especially with RFQ procurements
                                   60%
Evaluation Procedures              6/10

                                   60%
Contract     Placement,            4/10       •   No evidence at all of contract management
Award and Management                              records on all PDU files reviewed.
                                   40%
Reporting                           6/6       •   The Entity’s reporting status is up to date

                                   100%
Performance of Contracts            6/8       •   Contracts Committee was not using standard
Committee                                         forms and in one case, an approval of a contract
                                   75%            was done without the CC meeting but with each



                                                                                                 139
                                                    individual member signing the approval.
                                                •   CC did not sign ethical code of conduct.
Record Keeping                   4/8            •   All files reviewed were incomplete and had a
                                                    number of unsigned documents

                                50%
Total Score and
Compliance Rating               69%                          SATISFACTORY


RECOMMENDATIONS:

   1. PPDA should use the Standard Bidding Documents particularly when using the Request for
      Quotation (RFQ) method.
   2. Entity should keep contract management records.
   3. Contracts Committee decisions should be documented using the relevant standard PP Forms.
   4. Contracts Committee members should sign the ethical code of conduct prior to each Contracts
      Committee meeting.
   5. All procurement files should contain all procurement records in accordance with the law.




                                                                                               140
NAME OF PDE: National Planning Authority


DATE OF ASSESSMENT: 29th- 30th May 2008


MANDATE: To put in place, operationalise, oversee, supervise, monitor, evaluate, and coordinate, the
          national framework, systems and strategies for cost effective and participatory national
          development planning in Uganda.


LEGAL/INSTITUTIONAL STATUS: Statutory body -Established by Act No. 15 of 2002 in
                            compliance with Article 125 of the Constitution of the
                            Republic of Uganda (1995)


BUDGET (GOU/DONORS): GOU and Donors- NEPAD (New Partnership for African Development)
                       and ACBF (African Capacity Building Foundation).


SIZE OF PDE: Staffing capacity of 68 but currently has 29 members of staff; Total annual budget is
             UGX 2.7bn/= of which UGX 1.6bn/= is for procurements (60%).


ACCOUNTING OFFICER (Name): Mr. Saul B. Kaye


CONTRACTS COMMITTEE MEMBERS (Names):

                     1.   Mr Kavuma John Bosco Economic Analyst, Research, M& E Chairperson
                     2.   Ms Judith Mutabazi, Research Assistant, Member
                     3.   Mr David Katungi, RC/DDP, Member
                     4.   Mr. Francis Mazinga, Research Assistant, Member
                     5.   Ms Catherine Muganga, State Attorney, Legal Officer

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                     1. Mr. Lwanga Michael




                                                                                                141
    COMPLIANCE AREA                SCORE / RATING                        FINDINGS


Procurement Structures                  5/10         • The Accounting Officer has a clear understanding of
                                                       his role for the overall responsibility of the
                                        50%            procurement and disposal process.
                                                     • The 5 CC members are approved by PS/ST but
                                                       PPDA PP Form 220 is not filed with the Authority.
                                                     • No established PDU.
                                                     • Internal Audits conducts post audits.
Procurement Planning                    5/10         • Procurement plan in place but only for micro
                                                       procurements and not approved by CC
                                        50%          • Procurement plan is for only the last quarter of the
                                                       current FY.
                                                     • No departmental procurement plans
Solicitation   and       bidding        10/10        • An appropriate SBD and procedures were used for
procedures                                           the sampled case.
                                       100%
Evaluation procedures                   8/10         • On the sampled case, the financial evaluation was
                                                     conducted before the technical evaluation contrary to
                                        80%          Reg. 197 of the PPDA Regulations 70 of 2003.
Contract placement, award and           3/10        • BEB notice and Notice of contract award are noted
management                                             posted the PDE Notice board only on the PPDA
                                        30%            website



                                                                                                         142
                                                   •     The unsuccessful bidders are never notifies in
                                                         writing.

Reporting                              4/6         • Entity had last filed Monthly reports in March 2008.

                                      67%
Performance      of   Contracts        6/8         •     CC members do not use PP Form 211.
Committee
                                      75%
Record Keeping                         7/8             • Not all sampled cases had all the requirements of the
                                                           law.
                                      87.5             • Key documents on contract management are not
                                                           included on the files
                                                       • Entity lacks contract management and supplier
                                                           appraisal systems
Total Score and                     67%
Overall Rating of PDE                                                  SATISFACTORY


 RECOMMENDATIONS:

     1. PP Form 220 should be filed with the Authority.
     2. The Entity should recruit PDU staff and file PP Form 220 with PPDA.
     3. The Internal Auditor should audit the entire procurement and disposal processes, payments and
         deliveries.
     4. The User Departments should initiate all procurements.
     5. The User departments should prepare departmental plans for consolidation into overall plan.
     6. The entity should always prepare a procurement plan for the whole FY
     7. The CC should approve the Entity’s procurement plan.
     8. The Evaluation Methodology used for the case sampled was not appropriate. Appropriate and
         approved evaluation methodology and procedures should be used.
     9. BEB Notices and Notices of Contract award should be placed on a special public procurement
         notice board.
     10. All unsuccessful bidders should be always informed in writing.
     11. The entity should submit all monthly reports to PPDA on time as stipulated in the 5th Schedule of
         the PPDA Regulations 70 of 2003.
     12. PDU records should have all requirements of the PPDA law including contract management
         reports and copies of all Contract payment records.




                                                                                                            143
NAME OF PDE: Uganda Coffee Development Authority


DATE OF ASSESSMENT: 11th – 12th August 2008


MANDATE : To regulate the growing, processing, selling and exporting of coffee.


LEGAL/INSTITUTIONAL STATUS: Statutory body created by an act of Parliament.


BUDGET (GOU/DONORS): GOU and the entity also has rental income and income from the sale of
                              coffee export licenses


SIZE OF PDE: Small


ACCOUNTING OFFICER (Name): Mr. Henry Ngabirano


CONTRACTS COMMITTEE MEMBERS (Names)
                                                  1.   John Luzinda Mukasa Chairman
                                                  2.   Susan Akahinga      Secretary
                                                  3.   Godfrey Jao Acaye   Member
                                                  4.   Silver Mwesigwa     Member
                                                  5.   Loy Kyarimpa         Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names)
                                                  1. Gladys Kobusingye       Head PDU




                                                                                        144
  COMPLIANCE AREA           SCORE/RATING                 FINDINGS

Procurement Structures          10/10      •   The CC’s term expires in June 2010.

                                100%
Procurement Planning            6/10       •   Departments did not present their
                                               procurement plans so it was not possible
                                60%            for the Entity to prepare a procurement
                                               plan.
Solicitation and Bidding        10/10      •   All the requirements hereunder were met.
Procedures
                                100%
Evaluation Procedures           10/10      •   All the requirements hereunder were met.

                                100%
Contract Placement, Award       7/10       •   Some contract management records were
and Management                                 not on file.
                                70%        •   PPDA website was not being used
                                           •   The Entity was not using any framework
                                               contracts because they are not fully
                                               understood.

Reporting                        6/6       •   The Entity’s reporting status was up to
                                               date



                                                                                          145
                                     100%

Performance of Contracts               7/8               •   CC minutes were not on individual files
Committee                                                    but were available in a separate file.


Record Keeping                         5/8               •   Contract management records were
                                                             lacking on some of the files. Otherwise
                                                             all other documents were available on
                                                             file.
                                                         •   There was no record of supplier
                                                             appraisals on any of the files reviewed.

Total Score and rating of             85%                          SATISFACTORY
PDE

RECOMMENDATIONS:

    1. The Accounting Officer should ensure that all user departments prepare their departmental plans.
    2. There is need to get an assistant for the Head PDU to reduce on the work load on one person and
       consequently improve the efficiency of the PDU.
    3. Entity should post bid notices to the PPDA website
    4. Entity should use framework contracts for commonly procured items.
    5. Entity should keep contract management and supplier performance records.




                                                                                                        146
NAME OF PDE: Uganda Investment Authority


DATE OF ASSESSMENT: 11th- 12th June 2008


MANDATE: To market Uganda's investment opportunities and to ensure that Uganda becomes the best
         investment destination through provision of quick and quality facilitation services to all
         prospective investors to the country.


LEGAL/INSTITUTIONAL STATUS: Statutory body created by an act of Parliament.


BUDGET (GOU/DONORS): GOU and Donor funded
                     Budget is UShs. 6.4b of which 3b was used to acquire industrial parks.
                     The annual procurement budget is approximately 300m


SIZE OF PDE: 5 Departments with about 35 staff.


ACCOUNTING OFFICER (Name): Prof. Maggie Kigozi


CONTRACTS COMMITTEE MEMBERS (Names):
1. Issa Mukasa         Director Investment Promotion           Chairperson
2. Barnabas Tumwesigye Director Land Department                Member
3. Koratungye A.K      Director Strategic Planning             Member
4. Catherine Nabirye   Legal Officer                           Member
5. Joyce Sserubombwe                                           Secretary
6. Itaza Muhirwa       Advisor                                 Procurement specialist



PROCUREMENT AND DISPOSAL UNIT MEMBERS:

The Entity does not have an established Procurement and Disposal Unit.




                                                                                               147
  COMPLIANCE AREA              SCORE/RATING                       FINDINGS

Procurement Structures             3/10       • The Accounting Officer is in place and has been
                                                trained by the Authority.
                                   30%        • Contracts Committee in place and approved by
                                                PS/ST.
                                              • There is no established the Procurement and Disposal
                                                Unit
                                              • The user departments initiate procurements using
                                                internal memos instead of PP form 20.
                                              • Information as to whether the Internal Auditor has
                                                audited the procurement and disposal processes was
                                                not availed.
                                              • No internal audit reports on the procurement and
                                                disposal processes seem.
Procurement Planning               2/10       • Entity has no procurement plan in place.
                                              • The Entity has a pre-qualified list of providers in
                                   20%          place though there are inadequate providers on some
                                                categories for works, supplies and services.
                                              • No evidence of use of framework contracts seen.

Solicitation   and   Bidding       4/10       • Records of issue of solicitation documents and



                                                                                                   148
Procedures                          solicitation documents are not kept on the files
                           40%    • Few records of bid submission and opening seen on
                                    files.
                                  • Minimum bidding periods observed in the cases
                                    sampled
                                  • Some of the methods used are not appropriate to the
                                    threshold and circumstances as provided for under the
                                    PPDA Guidelines. There is frequent use of direct
                                    procurement.
                                  • In most of the cases sampled, copies of the solicitation
                                    documents issued and bids received were not availed.

Evaluation Procedures      8/10   • Evaluation reports seen on the procurements samples
                                    and use the evaluation methodology in the solicitation
                           80%      documents.
                                  • Records of Acceptance of Code of Ethical Conduct
                                    for EC members seen on the files.
                                  • Evidence of approval of the members of the
                                    Evaluations Committee by the Contracts Committee
                                    seen.
                                  • Evaluation reports are signed approved by CC.

Contract     Placement,    2/10   • Entity does not post the notices of the best evaluated
Award and Management                bidder and the notice of contract award on the PPDA
                           20%      website.
                                  • Contract documents were not on the individual
                                    procurement files.
                                  • There are no records of supplier appraisal and
                                    performance.
                                  • No evidence that the unsuccessful bidders are notified
                                    in writing
                                  • User departments issue goods received notes and
                                    certify deliveries
Reporting                  0/6    • Entity is not up to date in the monthly procurement
                                    and disposal reporting. At the time of the
                           0%       compliance, the Entity had last reported in September
                                    2007.
                                  • Entity has responds to queries raised by the Authority
                                    on the monthly reports.
                                  • Invoice numbers and dates for some procurement
                                    transactions are not indicated in the reports and
                                    contracts Committee minutes are not submitted with
                                    the reports.

Performance of Contracts   4/8    • Contracts Committee meets regularly.
Committee                         • Most of the Contracts Committee minutes were
                           50%      available on the file.
                                  • Record of Acceptance of Code of Ethical Conduct for
                                    CC members not signed by the members at each
                                    meeting.
                                  • Contracts Committee has granted retrospective
                                    approvals to some procurements.

Record Keeping             1/8    • The record/filling system is not in place partly because



                                                                                           149
                                                 of the un established PDU.
                                 13%           • Individual procurements do not have procurement
                                                 reference numbers assigned to them. The Entity uses
                                                 contract numbers instead.
                                               • The records sampled were kept by Finance and
                                                 Administration Section.

Total Score and
Compliance Rating                33%                         UN-SATISFACTORY


RECOMMENDATIONS:

   1. The Accounting Officer should establish the Procurement and Disposal Unit at the appropriate
      levels.
   2. The CC should ensure that evaluation procedures (approval of EC and EC reports) are followed.
   3. Frame work contracts should be used for repetitively procured items.
   4. All Solicitation documents for procurements should be made using the standard format issued by
      the PPDA.
   5. There should be a record of Acceptance of Code of Ethical Conduct for EC and Contracts
      Committee members. This should be signed every time the Contracts Committee meets and when
      the EC carries out an evaluation.
   6. All outstanding month procurement and disposal reports should be submitted to PPDA promptly.
   7. Standard procurement reference numbering should be used on each individual case procured.
   8. Performance appraisal should be carried out on all providers and records kept by the PDU.
   9. Notice of BEB should be posted on PDU notice board and unsuccessful bidders informed in
      writing.




                                                                                                   150
NAME OF PDE: Uganda Revenue Authority


DATE OF ASSESSMENT: 7th – 8th July 2008


MANDATE: Collection of taxes on behalf of government


LEGAL/INSTITUTIONAL STATUS: Statutory Body


BUDGET (GOU/DONORS): GOU, World Bank


SIZE OF PDE: 7 Departments with 1780 staff members.


ACCOUNTING OFFICER (Name): Ms. Kagina Allen


CONTRACTS COMMITTEE MEMBERS (Names):

                               1.    Doris Akol              Chairperson
                               2.    Sarah Nalwebe           Secretary
                               3.    Sam Nakabale            Member
                               4.    Mike Chibita            Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                               1.    Mr. Kariisa Richard            Manager PDU- HPDU
                               2.    Mr. Mwesigye Stephen           Supervisor PDU
                               3.    Ms. Esther Namuyomba           Officer PDU
                               4.    Ann Namuli Lwanga              Sup. corporate services
                               5.    Terence Kavuma                 Sup. corporate services
                               6.    Carol Sekandi Tugume           Officer corporate services
                               7.    Hope Kaberinde Doreen          Officer corporate services
                               8.    Patrick Mujuni                 Officer corporate services
                               9.    Ruth Chebet                    Officer corporate services
                               10.   Kanda Christine                Officer corporate services




                                                                                                 151
COMPLIANCE AREA                SCORE /                          FINDINGS
                               RATING

Procurement Structures          9/10     •   There is an AO who is responsible for all the procurements
                                             and disposals
                                90%      •   CC in place and has 4 members approved by PS/ST.
                                         •   There is a well established PDU in place and is well staffed
                                             with 9 members.
                                         •   Pp Forms 220 and 221 were not filed with PPDA.
                                         •   User departments initiate all procurements using PP Form
                                             20.

Procurement Planning            9/10     •   Procurement and disposal plan exists although it is not
                                             prepared in the approved PPDA format.
                                90%      •   The Entity has an approved list of pre-qualified providers.
                                         •   The Contracts Committee is fully established.
Solicitation   and   bidding    10/10    •   Solicitation documents use the standard format issued by
procedures                                   PPDA.
                                100%     •   Bidding periods are observed.
                                         •   The methods used are appropriate to the thresholds and
                                             circumstances.
Evaluation procedures           6/10     •   Evaluation committees in place, however no evidence of
                                             approval of EC by CC



                                                                                                  152
                                60%            •     Evaluation reports are approved by CC
                                               •     In a few cases there were no copies of the evaluation report
                                                     on file.

Contract placement, award        3/10         •     Notices of Best Evaluated Bidder and the unsuccessful
and management                                      bidders were not on file.
                                30%           •     Notices to the best evaluated bidders should be on file.
                                              •     There is no evidence of involvement of the user department
                                                    in certifying payment of contractual sum.
Reporting                        6/6           •    Monthly reports are prepared and submitted to the
                                                    Authority.
                                100%           •    Procurement referencing is not in accordance with the
                                                    guidelines and is not consistent.
Performance   of   Contracts     8/8           •    CC members meet at least once every month and consider
Committee                                           all procurements from the PDU to ensure compliance.
                                100%           •    Minutes of CC meetings are well kept, although too brief.
                                               •    Contracts Committee decisions on a submission are not
                                                    recorded on PP/DPA Forms.
Record Keeping                   5/8               • For some procurements, the following records were found
                                                       to be missing; Best Evaluated Bidder notices, approval of
                                63%                    EC by CC, notification of award to unsuccessful bidders.
                                                   • There is supplier performance appraisal.

Aggregate Score and
Compliance Rating               78%                                 SATISFACTORY




 RECOMMENDATIONS

     1. The Accounting Officer should nominate the fifth member of the Contracts Committee.
     2. Copies of evaluation report and Best Evaluated Bidder notices should be on each procurement
        file.
     3. The unsuccessful bidders should always be notified in writing as provided for in Reg. 225(4).
     4. The user department should always be involved in certifying payment of contractual sum.
     5. Regulation 225 (4) on contract award should be adhered to.
     6. The notices to the best evaluated bidder should be on file.
     7. The Contracts Committee minutes should be recorded on the appropriate forms, detailed and
        filed.
     8. Contracts committee decisions on submissions should be recorded on PP/DPA Forms.
     9. There is need to review the referencing as per the requirements of the guidelines




                                                                                                          153
3.1.4 State Enterprises


     NAME OF PDE: Microfinance Support Centre Ltd


     MANDATE: To provide sustainable financial services to the economically active and productive
             Ugandans through viable Partner organizations and build their capacity.

     LEGAL/INSTITUTIONAL STATUS: State Enterprise - Government company limited by guarantee.


     BUDGET (GOU/DONORS): 60,869,869,000 /=


     SIZE OF PDE: 94 Employees


     ACCOUNTING OFFICER (Name): Mr. Charles Kulibanza Byanyima


     CONTRACTS COMMITTEE MEMBERS (Names):

                             1.   Jackson Sabila, Ag. Finance manager    Chairperson
                             2.   Willy Kayondo, HRM                     Member
                             3.   David Nambale, Company secretary       Member
                             4.   Wilson Wamatsembe, ICBM                Member
                             5.   Prossy T.Bahiigwa, R&D Officer         Secretary


     PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                             1. Mr. Moses Madaya Masagwayi




                                                                                             154
                           SCORE/
COMPLIANCE AREA            RATING                   FINDINGS
Procurement Structures      7/10    •   All CC members were approved by the ST
                                        to Treasury as required by PPDA Reg 45
                            70%         (3).
                                    •   The Administrative officer is also the Head
                                        PDU
                                    •   The internal auditor audits the procurement
                                        and disposal process
                                    •   No evidence of PP form 220 and 221 filed
                                        with PPDA on file
                                    •   User departments did not initiate all
                                        procurement requirements on PP form 20
Procurement Planning        4/10    •   The Entity had a procurement plan(in soft
                                        copy) with no evidence of either approval
                            40%         or submission to PPDA
                                    •   There were no departmental procurement
                                        plans
                                    •   An assets register exists
                                    •   There is no usage of framework contracts of
                                        repetitively procured items.
Solicitation and bidding    7/10    •   In many cases reviewed, there were no
procedures                              records of issue, bid submission and
                            70%         opening



                                                                                  155
                                                         •   The entity uses solicitation documents in
                                                             the format issued by PPDA
                                                         •   Thresholds were adhered to in the
                                                             determination of procurement methods
Evaluation procedures                 8/10               •   There were no record of acceptance of code
                                                             of ethical conduct for evaluation committee
                                      80%                    members on majority of the cases reviewed
Contract placement, award             5/10               •   Copies of signed contracts exists
and management                                           •   There were no copies of notices of best
                                      50%                    evaluated bidder on file and no evidence of
                                                             their posting on the authority web site
                                                         •   Unsuccessful bidders were never notified
                                                         •   No evidence of user involvement in
                                                             certification of payments
Reporting                              1/6               •   The entity was not update in terms of
                                      15%                    Monthly reports to the Authority
Performance of Contracts               4/8               •   There wasn’t any use of forms for
Committee                             50%                    meetings(PP Form 210) and record of
                                                             contracts committee decision
                                                         •   Some cases reviewed lacked records of
                                                             acceptance of code of ethical conduct
                                                         •   There was no evidence of a retrospective
                                                             approval by the contracts committee
Record Keeping                         2/8               •   A record/filing system exists
                                      20%                •   Files nonetheless do not contain all the
                                                             requirements of the law
                                                         •   There was no procurement reference book
                                                         •   Majority of the cases reviewed had no
                                                             standard procurement reference numbers
                                                         •   There were no record of supplier
                                                             appraisal/performance

Total Score and                       53%
Overall Rating of PDE                                        MODERATELY SATISFACTORY


RECOMMENDATIONS:
1. The Accounting officer should file PP form 220 as per S.21 and PP form 221 in line with Reg.57
2. The Accounting Officer should establish the PDU and have it staffed appropriately as per Reg.57
3. All procurement requirements should be initiated by users on a PP form 20
4. The entity should prepare and submit an approved procurement and disposal plan to the Authority
5. All departments should prepare their departmental work plans for procurements
6. Framework contracts for repetitively procured items should be adopted in the entity as required under
    S.58(c).
7. The entity should take record of issue of solicitation documents as required under reg. 146(3)
8. A record of bid submission and opening should too, be taken as required under reg. 158(3) and 164
9. A record of acceptance of code of ethical conduct for evaluation committee members should be
    signed by all members as required under Reg. 169(9) and 171(5)
10. Copies of notices of best evaluated bidder should be put on file and award notices posted to PPDA
    web site
11. Unsuccessful bidders should be notified in writing
12. Users should certify payments as required by Reg. 260(2)



                                                                                                       156
13. The entity should compile and submit all pending procurement monthly reports as required under
    Reg. 40
14. The entity should make use of PP forms for meetings (PP Form 210) and record of contracts
    committee decision
15. All members of CC should sign records of acceptance of code of ethical conduct
16. All records pertaining to a given procurement should be put on the respective files
17. The entity should use the standard procurement reference numbers on all procurements
18. The entity should initiate supplier appraisal /performance




                                                                                              157
NAME OF PDE: National Housing and Construction Company Ltd.


DATE OF ASSESSMENT: 23rd July 2008


MANDATE: To create the reality of home ownership in well-planned and permanent built environments.


LEGAL/INSTITUTIONAL STATUS: State Enterprise (Limited Liability Company under the
                          Company’s Act Cap 110 with the Government of Uganda and
                          Libyan Government share holding of 51% and 49% respectively.
                          Entity was accredited under Reg. 342 of the PPDA Regulations
                          70 of 2003 on the 12th December 2007.


BUDGET (GOU/DONORS): Self generated income (since the debt swap the Libyan Government has
                       not injected any funds)


SIZE OF PDE: Large- 110 permanent staff. Total budget of 79.13 Billion of which 90% is spent on
             procurement.


ACCOUNTING OFFICER (Name): Mr. Joseph Kitamirike.


CONTRACTS COMMITTEE MEMBERS (Names):

           1.   Mohamed Ali Elabani Chief Finance Officer         Chairman
           2.   Mohamed A. Benomran Chief Operations Officer      Member
           3.   Caleb Kakuyo          Chief Commercial Officer    Member
           4.   Margaret Sakwa          Legal Manager             Secretary
           5.   Robert Twesigye        Financial Planning Manager Member
           6.   Verna Mbabazi Contracts and Admn. Manager Member.


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):
       1. Caleb Kakuyo Chief Commercial Officer (Head of Department (Commercial)
       2. Patrick Onyango Wafula Procurement Manager (Head of Section (Procurement)
       3. Agnes Nakijoba         Procurement Officer
       4. Dennis Kakube          Procurement Officer
       5. Suzan Twijukyemukama Procurement Officer
       6. Goddieus T. Byaruhanga Procurement Assistant
       7. Joel Odokola           Procurement Assistant




                                                                                              158
   COMPLIANCE AREA       SCORE / RATING                      FINDINGS


Procurement Structures        7/10            •     The Accounting Officer has a clear
                                                   understanding of the procurement and
                              70%                  disposal procedures, however, needs
                                                   training by PPDA on his role and
                                                   responsibility.
                                              • There are 6 Tender Committee members
                                                   appointed by the AO in early 2006 however
                                                   not yet approved by both the Board and
                                                   PS/ST.
                                              • Established PDU with but pp Form 221 not
                                                   filed with PPDA.
                                              • The user departments initiate procurements
                                                   on PP Form 20.
                                              • The Internal Auditor carries out post audits.
Procurement Planning          6/10        Entity has;
                                              • An approved pre-qualified list of providers.
                              60%             • No departmental procurement plans.
                                              • No approved procurement plan.
                                              • An assets register with provisions for assets
                                                   disposal plan in the custody of Finance
                                                   department.



                                                                                                159
                                               •     Has the following framework contracts for
                                                     commonly used items;
                                                         o Ms Tororo Cement for the supply
                                                             of cement,
                                                         o National Forest Authority and Ms.
                                                             Western Patrotic – for supply of
                                                             timber,
                                                         o Ms Caltex for supply of fuel and
                                                             lubricants– installed pump at the
                                                             Entity premises.
                                                         o Yet to enter one for supply of
                                                             concrete blocks.
Solicitation   and      bidding   10/10      For all sampled cases there were
procedures                                   • Records of issue of Solicitation documents.
                                  100%       • Uses SBDs issued by the Authority.
                                             • Minimum bidding periods were observed for all
                                               the sampled cases.
                                             • Has record of bid submission and opening.
                                             per the accreditation.

Evaluation procedures             8/10       • The CC approves the members of the
                                                Evaluations Committee (EC) and the Evaluation
                                  80%           Report.
                                             • Appropriate evaluation methodologies were
                                                used for the sampled cases.
                                             • Signed Evaluation Committee minutes were on
                                                file.
                                             • No record of Acceptance of Code of Ethical
                                                Conduct for EC members.
Contract placement, award and     4.5/10     • BEB Notices are placed on PDE Notice board,
management                                      however, never posted on PPDA website
                                  45%        • Unsuccessful bidders are never notified in
                                                writing.
                                             • CC approves all contracts and copies of signed
                                                contracts were on file.
                                             • Entity does not seek SG approval for contracts
                                                above 50m. Due to the urgency of the projects, it
                                                realize on the internal legal department.
                                             • There was evidence of execution/performance of
                                                contracts within the contractual completion date.
                                             • The User Departments especially Operations
                                                and stores manager only acknowledge receipt of
                                                deliveries on the goods received note which is
                                                verified by the Project Account.
                                           (Micro procurements (below 10 million) are signed
                                           by the Procurement Officer and Chief Commercial
                                           officer. Micros- (above 20m)–signed by Accounting
                                           Officer and Legal Officer.)
Reporting                          0/6       • Entity had not submitted all monthly reports by
                                                the time of the compliance check.
                                   0%        • Entity       had      never       submitted    the
                                                amended/approved Manual as was requested at
                                                the accreditation.- it was penning Board
                                                approval by the time of the compliance check.



                                                                                                    160
Performance      of   Contracts        6/8           • There was no record of Acceptance of Code of
Committee                                              Ethical Conduct for CC members on all cases
                                      75%              sampled.
                                                     • All the sampled CC decisions were signed and
                                                       submitted on PP Forms 210.
                                                     • In the Tender Committee (CC) minutes sampled
                                                       the CC had not granted any retrospective
                                                       approvals. PDU usually calls for extra ordinary
                                                       meetings or the Committee members agree on
                                                       issues by circulation.
Record Keeping                         6/8           • PDU has a record/filling system.
                                                     • Most of the sampled cases had the standard
                                      75%              procurement reference numbers.
                                                     • There were Contract management records on
                                                       cases sampled. Every project has an Engineer
                                                       who acts as Contract Manager to supervise the
                                                       works and checks the quality of the materials.
                                                     • Had no supplier appraisal records. Entity was in
                                                       the process of establishing the system.
Total Score and                       63%
Overall Rating of PDE                                              SATISFACTORY


 RECOMMENDATIONS

     1. AO needs training on his roles like seeking approvals from relevant government organs among
        others.
     2. Tender Committee members should be cleared by the Board and seek PS/ST approval.
     3. Internal Auditor should audit the procurement and disposal processes too.
     4. The respective user departments specially the Project Department should develop project
        procurement plans to be compiled by the PDU into the PDE procurement plan.
     5. EC should record the acceptance of Code of Ethical Conduct at all evaluations.
     6. PDU should post BEB Notices and Notices of Contracts award on PPDA website with PPD
        training.
     7. All unsuccessful bidders should be notified in writing.
     8. Tender Committee (CC) should record the acceptance of Code of Ethical Conduct at all meetings.
     9. Entity should have a supplier appraisal/performance system.




                                                                                                          161
NAME OF PDE: National Water and Sewerage Corporation


DATE OF ASSESSMENT: 16th – 17th July 2008


MANDATE: Supply of Water


LEGAL/INSTITUTIONAL STATUS: Parastatal


BUDGET (GOU/DONORS): GOU, Internally Generated Funds, GTZ, KFW & World Bank


ACCOUNTING OFFICER (Name): Dr. Muhairwe William


NUMBER OF STAFF: APPROXIMATELY 12,000 Members of Staff


CONTRACTS COMMITTEE MEMBERS (Names):

                                   1. Eng. Alex Gisagara -      Chairperson
                                   2. Mr. David Kakuba Mpango - Member
                                   3. Mr. Jackson Opwonya -     Member
                                   4. Mr. Okol George-          Secretary



PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                 1. Mr. Ssekabembe Robert -     Manager Procurement
                                 2. Mr. Mr. Byaruhanga Nable - SPO
                                 3. Mr. Busulwa Martin -        P.O Services
                                 4. Mr. Mandela Nelson –        P.O Supplies (Imports)
                                  5. Mr. Kirungi Moses –        P.O (Imports Process/KW)
                                 6. Mr. Akera Morris -          Proc. Support Assistant
                                 7. Mr. Tayebwa Micheal Proc. Support Assistants Services
                                 8. Ms. Mbabazi Irene                    “
                                  9. Ms. Anena Doreen    Proc. Support assistant – Supplies
                                 10. Ms. Alinda Sarah                   “
                                 11. Mr. Mpata Peter                   “
                                 12. Mr. Byaruhanga Alex                “
                                 13. Ms. Aliba Betty      Proc. Support Assistant




                                                                                          162
     COMPLIANCE AREA               SCORE / RATING                         FINDINGS


Procurement Structures                  8/10        •   4 CC members were approved by PSST. The other is
                                                        yet to be nominated and sent for approval to the
                                        80%             PS/ST.
                                                    •   PP Form 220 not filed by the Entity.
Procurement                             9/10        •   The Entity has an approved list of pre-qualified
Planning                                                providers and Departmental Procurement plans.
                                        90%         •   The Entity also uses Frame work contracts for
                                                        supplies such as stationery.
                                                    •   The Entity has not submitted the procurement plan
                                                        for the current FY 2007/08 though it was on its file.

Solicitation   and       Bidding        9/10        •   The solicitation documents for most procurements
procedures                                              were on file and the methods used were appropriate
                                        90%             to the threshold.
                                                    •   The Solicitation document uses the standard format
                                                        by PPDA.
Evaluation procedures                   7/10        •   The members of the Evaluation Committee were
                                                        approved by the CC for most of the procurements
                                        70%             and there was a record of Acceptance of Code of



                                                                                                    163
                                                              Ethical Conduct for the EC members.
                                                          •   However, the evaluation reports were in most cases
                                                              not approved by the CC.
Contract placement, award and            4/10             •   There were no notices to the best evaluated bidder on
management                                                    most files but some are put on the notice board.
                                         40%              •   The unsuccessful bidders are not notified in writing
                                                              as required by law.
Reporting                                5/6              •   Monthly reports are not submitted on time.
                                                          •   The Entity last reported in September 2007.
                                         83%              •   A sample of the reports reviewed indicate that there
                                                              is use Standard Formats and all PP Forms 200, 201
                                                              & 202 are filled and CC Minutes attached
Performance      of   Contracts          4/8              •   Minutes are in place though not recorded on the
Committee                                                     appropriate forms.
                                         50%              •   There was no record of acceptance of Code of
                                                              Ethical Conduct in Business by the CC on most files
Record Keeping                           5/8              •   There exists a Record/filing system in the PDU
                                                              although the files do not contain all the requirements
                                         63%                  of the law.
                                                          •   Individual cases have standard procurement reference
                                                              numbering; however, there is no record of supplier
                                                              appraisal.
Aggregate Score and
Compliance Rating                        71%                                SATISFACTORY




 RECOMMENDATIONS:

     1.   The Entity should nominate the fifth member and send his name to PS/ST for approval.
     2.   Entity should also file PP Form 220 with the Authority.
     3.   The Entity should submit the procurement plan for the current FY 2007/8 to the Authority.
     4.   The Entity should endeavor to have each solicitation document for each procurement filed in the
          respective file as in accordance with Reg. 146(3) of the PPDA Regulations.
     5.   The Contracts Committee should always approve the Evaluation reports by the Evaluation
          Committee and the composition of the Evaluation Committee.
     6.   The Entity should always notify the best evaluated bidder and the unsuccessful bidders in writing
          and also put notices on the procurement notice boards.
     7.   The Entity should ensure that monthly reports are submitted by the 15th day of each month for the
          preceding month and that all PP Forms are filled and CC minutes attached to reports as this aids
          the Authority as it reviews the reports.
     8.   The CC should always sign the record of acceptance of Code of Ethical Conduct in Business.
     9.   There should always be a record of Contracts Committee Meeting on PP Form 210 and record of
          signed minutes.
     10. The Entity should appraise suppliers’ performance to ensure quality services and
         supplies.




                                                                                                           164
NAME OF PDE: Post Bank Uganda Limited.


DATE OF ASSESSMENT: 5th June 2008


MANDATE: Commercial Banking


LEGAL/INSTITUTIONAL STATUS: Limited Company


BUDGET (GOU/DONORS): Government Funded and Internally Generated Fund


SIZE OF PDE: Small


ACCOUNTING OFFICER (Name): Mr. Stephen Mukweli – Managing Director


CONTRACTS COMMITTEE MEMBERS (Names):

                  1. Mr. Stephen Mukoba – Manager Operations – Chairman
                  2. Ms. Lillian Ikiriki – Legal Manager – Member
                  3. Ms. Caroline Basemera – Senior Human Resource Manager- Member
                  4. Mr. Albert Balekye – Ag. Chief Manager Credit- Member
                  5. Mr. Emmanuel Mwaka – Ag. Head Finance - Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                  1. Ms. Rebecca Nansubuga Kakooza PO
                  2. Ms. Emily Nabatanzi APO




                                                                                     165
   COMPLIANCE AREA             SCORE / RATING                       FINDINGS


Procurement Structures              4/10        •   The team did not meet the Accounting officer and
                                                    members of the CC but it was informed that they
                                    40%             have not been trained by PPDA.
                                                •   The user departments initiate the procurements but
                                                    the use of PP Form 20 is recent.
Procurement                         4/10        •   The Entity has no procurement plan.
Planning                                        •   The user departments do not submit departmental
                                    40%             procurement plans.
                                                •   The Entity uses its budget to make procurements.
Solicitation   and   Bidding        4/10        •   The Entity uses the Standard Bidding Documents
procedures                                          provided by PPDA.
                                    40%         •   The Entity does not have a procurement notice
                                                    Board for posting procurement notices.
                                                •   The Entity does not always comply with the
                                                    thresholds for particular procurement methods and
                                                    the minimum bidding period is not always
                                                    observed.




                                                                                             166
Evaluation procedures                 1/10               •   There was no evidence to show that evaluation
                                                             reports are approved by the Contracts Committee
                                      10%                    members.
                                                         •   Only a few files had records of bid submission and
                                                             bid opening.
Contract placement,     award         8/10               •   Standard contract documents are used and there is
and management                                               evidence of contract performance monitoring.
                                      80%                •   There were no records of the user department
                                                             certifying delivery or completion of the services
                                                             before payment was effected by the finance
                                                             department.
                                                         •   The user department confirms performance so that
                                                             the finance department pays.
Reporting                              5/6               •   Reports are submitted to the Authority but not
                                                             always in time.
                                      83%                •   The samples perused showed that the standard
                                                             formats given by PPDA are used.
Performance   of   Contracts           6/8               •   The Contracts Committee sits twice a month
Committee                                                    except when there is need.
                                      75%                •   The members of the Contracts Committee do not
                                                             sign the code of Ethical Conduct in business.
                                                         •   The Entity has not awarded any retrospective
                                                             approvals.
                                                         •   There were contracts committee minutes on files
                                                             but not recorded on the appropriate forms.
Record Keeping                         3/8               •   Record keeping is poor, documents are scattered.
                                                         •   The Entity does not appraise its suppliers’
                                      38%                    performance.



Aggregate Score and                    53 %                      MODERATELY SATISFACTORY
Compliance Rating of PDE



 RECOMMENDATIONS

     1. The Accounting Officer and members of the Contracts Committee need training from PPDA.
     2. The Entity should endeavor to submit monthly procurement reports to PPDA on time, which is by
         the 15th day of each month for the preceding month.
     3. The Entity’s departments should always submit their departmental procurement plans to the PDU.
     4. The PDU should make a procurement plan and submit a copy of it to the Authority.
     5. The members of the Contracts Committee and the Evaluation Committee should always sign the
         Code of Ethical Conduct in Business.
     6. The Entity should put up a procurement notice board for posting procurement notices.
     7. The Entity should observe the minimum bidding period for the various procurement methods and
         also comply with the thresholds.
     8. The Contracts Committee should always approve the evaluation reports.
     9. The Entity should improve its record keeping and filing system.
     10. The Entity should appraise its suppliers’ performance.




                                                                                                      167
NAME OF PDE: Posta Uganda


DATE OF ASSESSMENT: 29th July 2008


LEGAL/INSTITUTIONAL STATUS: State Enterprise – Central Government (Ministry of ICT
                            Communication Act Cap 207 under a statutory instrument)


BUDGET (GOU/DONORS): Internally generated and from World Bank RCDF


SIZE OF PDE: About 400 staff spread throughout the regional offices in most districts of the country


ACCOUNTING OFFICER: Mr. Arinaitwe James


CONTRACTS COMMITTEE MEMBERS:(Names)

                                       1. Mr. Kitonga David   Chairperson
                                       2. Mr. Wadamba Innocent member
                                       3. Ms. Musonge Monica member


PROCUREMENT AND DISPOSAL UNIT MEMBER: (Names)

                                       1. Mr. Muhanguzi Caleb Head PDU
                                       2. Mr. Mayanja William PO




                                                                                                   168
    COMPLIANCE AREA               SCORE /                             FINDINGS
                                  RATING

Procurement Structures             6/10     •   Only 3 CC members are approved by PS/ST
                                            •   2 members have been nominated and forwarded to the A.O to
                                   60%          send to the PS/ST for approval.
Procurement Planning               5/10     •   No departmental procurement plans on records
                                            •   Pre-qualification list seen but incomplete in terms of categories
                                   50%      •   No assets register and assets disposal plan seen
Solicitation   and      Bidding    5/10     •   Records on solicitation documents were incomplete
procedures                                  •   There was insufficient information on methods used in the
                                   50%          procurements reviewed.
Evaluation procedures              6/10     •   Record of acceptance of code of ethical conduct for EC not seen.
                                            •   No sufficient information on approval of EC seen
                                   60%
Contract placement, award and      4/10     •   No SG approval seen on file
management                                  •   No evidence of execution/ performance of contracts seen
                                   40%      •   No record of user department’s involvement in certifying
                                                payments seen.



                                                                                                           169
   COMPLIANCE AREA                SCORE /                                  FINDINGS
                                  RATING

Reporting                           0/6          •   No monthly reports submitted
                                                 •   Reports do not use standard formats as required under PPDA
                                    0%               Reg. 118 (9)
Performance      of   Contracts     6/8          •   Some CC minutes were unsigned
Committee
                                    75%
Record Keeping                       3/8         •   Filing system is not uniform for all procurements
                                                 •   No record of supplier appraisal / performance
                                    38%

Total Score and                     49%                       MODERATELY SATISFACTORY
Overall Rating of PDE



       RECOMMENDATIONS

            1. The Accounting officer needs to follow up on the 2 missing members of the CC to ensure that the
                membership is complete
            2. PDE needs to urgently come up with an assets register and a disposal plan
            3. PDE needs to revise the short list of pre-qualified providers to ensure that the list is
                comprehensive enough.
            4. Thresholds for procurement methods should be strictly adhered to
            5. EC members should adhere to the code of ethical conduct whenever an evaluation is done.
            6. Solicitor General’s approval should be sought for any contract above 50 million Uganda shillings
            7. User departments should certify payment in accordance with PPDA Reg. 260 (2) (iii)
            8. PDE needs to strictly adhere to the monthly reporting requirement in accordance with PPDA Reg.
                40.
            9. All CC minutes should be signed by the chairman and secretary CC
            10. PDU needs to improve on the filing system to ensure that all procurements have their individual
                procurement action files
            11. PDU should ensure that providers are appraised on their performance and a record of their
                performance kept.




                                                                                                           170
NAME OF PDE: Uganda Development Bank Limited


DATE OF ASSESSMENT: 11-12th June 2008


MANDATE: To take over, under the Public enterprises Reform and Divesture Statute (1993), the
         undertaking of Uganda Development Bank.


LEGAL/INSTITUTIONAL STATUS: State Enterprise - Public Limited Liability Company registered
                            under the Companies Act (CAP 85); is wholly own by the
                            Government of Uganda.


BUDGET (GOU/DONORS): UDBL total budget is approximately Ug. Shs 6 billions. From the budget
                     figure seen by the review team; procurement takes up about 30% of the
                     budget.


SIZE OF PDE: UDBL has 33 staff; 17 No. are at officer level and above.


ACCOUNTING OFFICER (Name): Dr. A. K. Appiah


CONTRACTS COMMITTEE MEMBERS (Names):

                               1.   Mr. Godfrey Nsubuga       Chairman
                               2.   Ms Priscilla Mugisha      Secretary (legal)
                               3.   Mr. Gabriel Etou          Member
                               4.   Mr. Wilbur Naigambi       Member
                               5.   Mr. Moses Kayimbe         Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                              1. Ms Jessica Kyeyune

She is the In-charge of Procurement and at the same time a Principal Officer Administration and Public
Relations




                                                                                                  171
    COMPLIANCE AREA                SCORE /                        FINDINGS
                                   RATING

Procurement Structures              5/10     •   PP Form 220, 221 and 222; details of the Contracts
                                                 Committee Members and PDU staff not filed with PPDA.
                                    50%      •   User departments do not initiate procurement using PP
                                                 Form 20
                                             •   The Internal Auditor involvement in procurement is
                                                 limited; more involved in the vetting of the payment
                                                 paperwork, during processing of payment to providers.
Procurement Planning                2/10     •   The Entity does not have an approved Pre-Qualification
                                                 /Short List of Providers
                                    20%      •   No department or overall plan available.
                                             •   No framework contracts for repetitively procured items
Solicitation   and       bidding    3/10     •   The entity does not have record of issue of solicitation
procedures                                       documents
                                    30%      •   The entity does not use PPDA standard Solicitation
                                                 document formats.
                                             •   Due to lack of records it was not possible to ascertain
                                                 whether the minimum bidding period observed in most
                                                 cases.



                                                                                                     172
                                                   •   The entity does not have record of Bid Submission and
                                                       Opening
Evaluation procedures                6/10          •   Approval of Mr. Wilbur Naigambi a member on the
                                                       Contracts Committee to participate in the evaluation.
                                    60%            •   Appropriate evaluation methodology not used.
                                                   •   No record of signed Code of Ethical Conduct minutes of
                                                       the evaluation committees seen.
Contract placement, award and        9/10          •   The Entity does not have a dedicated notice board for
management                                             procurement notices and does not post the notices on the
                                    90%                PPDA Website.
                                                   •   No record on file that unsuccessful bidders are notified.
Reporting                            0/6           •   The Entity has not been submitting monthly procurement
                                                       and disposal reports
                                     0%            •   The PDE was queried by PPDA for none submission of
                                                       monthly reports and none was submitted.
Performance      of   Contracts      5/8           •   PP Form 210 and PP Form 209 not used
Committee                                          •   PP Form 210 and PP Form 209 not used; however the
                                    63%                detailed minutes are signed
Record Keeping                       2/8           •   Records of the necessary PPDA Procurement Forms
                                    25%            •   Procurement reference numbers not used
Total Score of PDE and
Compliance Rating:                  44 %                           UNSATISFACTORY


 RECOMMENDATIONS

              1. Accounting Officer should ensure that user departments initiate procurements using LG
                 PP Form 1
              2. The Internal Auditor should be involved in auditing the procurement process so as to
                 monitor the effectiveness of the controls in place.
              3. The Entity should pre-qualify providers annually
              4. The PDE should prepare a consolidated procurement plan for every financial year and
                 submit a copy to the Authority.
              5. The Entity should use framework contracts for commonly procured items
              6. The entity should record issue of solicitation documents using the appropriate
                 PPDA Forms
              7. The entity should use PPDA standard Solicitation document formats.
              8. After improving record keeping, the entity should observe the minimum bidding period;
                  Regulation 145.
              9. The entity should record Bid Submission and Opening
              10. Participation of a member on the Contracts Committee in evaluation is irregular;
                  according to Regulation 169(7).
              11. Appropriate evaluation methodology not used, except for micro procurement.
              12. Code of Ethical Conduct should be signed and minutes of the evaluation committee
                  meetings recorded.
              13. The entity needs training of how [and codes] to use the PPDA website.
              14. Unsuccessful bidders should be notified and record receipt of such notice be kept on file.
              15. The Accounting Officer should ensure that monthly procurement and disposal
                  reports are prepared and submitted to the Authority.



                                                                                                            173
16. The Accounting Officer should ensure that all PPDA queries are responded to in
    time.
17. Each procurement should be assigned a unique procurement reference number in
   accordance with Guideline 3/2008.




                                                                                   174
NAME OF PDE: Uganda Electricity Distribution Company Limited.


DATE OF ASSESSMENT: 16th -17th June 2008


MANDATE: Ownership and asset management of electricity distribution network at 33 kV and below
          within Uganda and associated assets; operating and maintaining the electricity off – grid
          stations in Moyo, Moroto and Adjumani till their divesture; monitoring compliance of the
          lease under the signed agreement.


LEGAL/INSTITUTIONAL STATUS: State Enterprise - Limited Liability Company incorporated in
                             Uganda under the Company Act and commenced operation on
                             1st April 2001.


BUDGET (GOU/DONORS): Own resources


SIZE OF PDE: 48 staff; Kampala headquarter; Adjumani, Moroto and Moyo sub stations


ACCOUNTING OFFICER (Name): Ms Irene Muloni


CONTRACTS COMMITTEE MEMBERS (Names):

                                  1. Ms. Dorothy Mubiru             Chairperson, CC
                                  2. Mr. Protaze Tibyakinura        MPP & S, Member, CC
                                  3. Mr. Winston Manzi              Member CC


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                  1. Mr. Moses Mwine        Procurement Officer




                                                                                               175
    COMPLIANCE AREA      SCORE / RATING                         FINDINGS


Procurement Structures        6/10            •     The Accounting Officer has a clear
                                                   understanding of her role for the over all
                              60%                  responsibility for the procurement and disposal
                                                   process.
                                              • The 3 CC members are approved by PS/ST but
                                                   PP Form 220 is not filed with PPDA.
                                              • There is an established PDU manned a
                                                   procurement officer.
                                              • The user departments initiate procurements on
                                                   PP Form 20.
                                              • The Internal Auditor does not audit the
                                                   Procurement      processes,    payments    and
                                                   deliveries.
Procurement Planning          8/10        Entity has;
                                              • An approved pre-qualified list of providers.
                              80%             • A departmental procurement plan.
                                              • A procurement plan for FY 2007/08 based on
                                                   the approved budget.
                                              • An assets register with provisions for assets
                                                   disposal plan.
                                              • Uses framework contracts for commonly used
                                                   items.


                                                                                              176
Solicitation     and     bidding       8/10           • PDU has records of issue of Solicitation documents.
procedures                                            • Uses SBDs issued by the Authority.
                                       80%            • Minimum bidding periods were observed for all the
                                                        sampled cases.
                                                      • Has record of bid submission and opening.

Evaluation procedures                  8/10           • The CC approves the members of the Evaluations
                                                        Committee (EC) and the Evaluation Report.
                                       80%            • Appropriate evaluation methodologies are used.
                                                      • The Evaluation Committee minutes and Acceptance
                                                        of Code of Ethical Conduct for EC members are
                                                        signed.
Contract placement, award and          6/10           • Notice of contract award not placed on PDE Notice
management                                              board and not posted on PPDA website
                                       60%            • Unsuccessful bidders are never notified in writing.
                                                      • CC approves all contracts and copies of signed
                                                        contracts were on file.
Reporting                              6/6            • Entity had submitted all monthly reports on the
                                                        standard formats on PP Forms 200, 201 and 202 with
                                      100%              CC minutes attached.
Performance      of     Contracts      6/8            • Record of Acceptance of Code of Ethical Conduct
Committee                                               for CC members present was available.
                                       75%            • All the sampled CC decisions were signed and
                                                        submitted on PP Forms 210.
                                                      • In the CC minutes sampled the CC had not granted
                                                        any retrospective approvals.
Record Keeping                         6/8            • PDU has a record/filling system.
                                                      • Most of the sampled cases had the standard
                                       75%              procurement reference numbers.
                                                      • There were Contract management and supplier
                                                        appraisal records on cases sampled.
Total Score and
Overall Rating of PDE                  75%                            SATISFACTORY


 RECOMMENDATIONS:

      1. The Contracts Committee should be fully constituted in accordance with the PPDA Act.
      2. There should be a mechanism of auditing the procurement and disposal processes, payments and
         deliveries.
      3. Entity should post BEB Notices and Notices of Contracts award on PPDA website.
      4. All unsuccessful bidders should be notified in writing.




                                                                                                       177
NAME OF PDE: Uganda Electricity Generation Company


DATE OF ASSESSMENT: 11th – 12th March 2008


MANDATE: Generation of power and to supervise the concessionaire agreement of M/s Eskom (U) Ltd


LEGAL/INSTITUTIONAL STATUS: State Enterprise


BUDGET (GOU/DONORS): Internally generated funds.          Budget for the financial year 2008 was
                     approx.16bn/=.

SIZE OF PDE: 12 staff members


ACCOUNTING OFFICER: Managing Director: Mr. John Mugyenzi


CONTRACTS COMMITTEE MEMBERS:

              1.   Emmanuel Lubandi Manager Finance and Administration    Chairperson
              2.   Moses K. Kaizzi        Civil Engineer                  Secretary
              3.   Dan Mayanja            Technical manager               Member
              4.   A. Kasagga             Senior Accountant               Member
              5.   Mooli Albert Sibuta    Resident State Attorney         Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

              1. Ahimbisibwe Jackline       Head PDU
              2. Kasagga Allan              Member
              3. Kabgonza Daphine           Member
              4. Musa Mukulu                Member




                                                                                            178
 COMPLIANCE AREA           SCORE /                             FINDINGS
                           RATING

Procurement Structures      8/10     •   Procurement structures in place.
                                     •   The Accounting Officer has appointed the Contracts Committee
                            80%          and these were approved by PS/ST. This approval is not filed
                                         with the Authority.
                                     •   Procurement Unit has dedicated office.
                                     •   PDU is comprised of acting members.
                                     •   Information as to whether the Internal auditor has audited the
                                         procurement process was not availed.
Procurement Planning        10/10    •   Entity has an approved procurement plan in the PPDA format.
                                     •   There are departmental plans seen on record.
                            100%     •   A copy of the assets register with the provision of asset disposal
                                         planning was availed.
                                     •   The Entity makes use of framework contracts for compound
                                         maintenance and legal services.
Solicitation and bidding    6/10     •   Records of issue of solicitation documents, id submission and
procedures                               opening seen on file
                            60%      •   Copies of the solicitation documents issued to the bidders seen
                                     •   For most of the files perused, the minimum bidding period was
                                         observed.
Evaluation procedures       9/10     •   Many of the sampled procurement files had the following
                                         documents:



                                                                                                    179
                             90%              - Approval of members of the Evaluation
                                                Committee;
                                              -Record of acceptance of Code of Ethical Conduct for the
                                                 Evaluation members
                                               - Evaluation reports.
                                          •   Evaluation minutes were not seen on the files.
Contract     placement,      6/10         •   All the sampled procurement files had contract documents.
award and management                      •   No contract management records were on the files.
                             60%          •   Notices of Best Evaluated Bidder were on file
                                          •   The Entity does not post the notice of best evaluated bidder and
                                              notice of contract award on the PPDA website
                                          •   No record of notification of the award to the unsuccessful
                                              bidders on the sampled procurement files.
                                          •   Records for approval of the contract documents by the Contract
                                              Committee were found on the sampled files.
                                          •   There was evidence the involvement of the user departments in
                                              certifying payment of the contractual sums.
Reporting                    6/6          •   The Entity is up to date in its monthly procurement and disposal
                                              reporting.
                            100%          •   The Entity responds to queries by the Authority on the monthly
                                              reports.
Performance of Contracts     7/8          •   Contracts Committee meets regularly
Committee                                 •   Many of the sampled procurement files had the following
                             88%              documents:
                                              - Record of acceptance of code of ethical conduct in business by
                                              the Contracts Committee members
                                               - Records of Contracts Committee decisions on submissions
Record Keeping               5/8          •   There is a record/filing system in place.
                                          •   Records filed contain most of l the requirements of the law
                             63%          •   Many of the cases sampled had have standard procurement
                                              reference numbers
                                          •   There were no records of supplier appraisal or performance.

Aggregate Score and
Compliance Rating            79 %                              SATISFACTORY




 RECOMMENDATIONS

     1. The members of the Evaluation Committee should always sign the code of ethical conduct in
         Business.
     2. The appropriate evaluation methodology should always be used in accordance with Reg. 79(1).
     3. Contract management records should be put on the individual procurement files.
     4. For contracts above Ug. Shs. 50m, the Entity should seek Solicitor General’s approval
     5. The procurement files of the Entity should contain all the records required under the law.
     6. The Entity should put in place mechanisms of supplier appraisal/performance.




                                                                                                       180
NAME OF PDE: Uganda Electricity Transmission Company Limited


DATE OF ASSESSMENT: 18th -19th June 2008


MANDATE: Transmission of Electricity and Maintenance of the Transmission Mains around the
          Country


LEGAL/INSTITUTIONAL STATUS: State Enterprise


BUDGET (GOU/DONORS): Self financed from own generated funds, Donor and GOU funds as well.


SIZE OF PDE: Medium


ACCOUNTING OFFICER (Name): Mr. Eriasi Kiyemba


CONTRACTS COMMITTEE MEMBERS (Names):

                                   1.     Mr. Muganga                     Chairman
                                   2.     Ms. Solome Nasejje              Secretary
                                   3.     Mr. Valentine Ketabira          Member
                                   4.     Ms. Margeret Mutesi             Member
                                   5.     Ms. Patience Kabijje Kampiire   State Attorney

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                   1.     Godfrey Mugerwa Bisaaso                PPO
                                   2.     Adipo Florence                         SPO
                                   3.     Wambalya Marianne                      SPO




                                                                                           181
   COMPLIANCE         SCORE/RATING                      FINDINGS
       AREA
Procurement               8/10       •   The CC requires training in order to execute its
Structures                               duties better.
                          80%        •   Internal Audit is not done before payments are
                                         made but rather afterwards.
Procurement               10/10      •   Framework contracts have recently been
Planning                                 introduced for services such as Motor Vehicle
                          100%           servicing and repair.
Solicitation and           6/10      •   No record of issue of solicitation document in any
Bidding Procedures                       file reviewed.
                          60%        •   No record of bid submission and opening on any
                                         of the files reviewed.
Evaluation                9/10       •   Members of the evaluation committees did not
Procedures                               sign the acceptance of the ethical code of conduct.
                          90%
Contract Placement,       6/10
Award and
Management                60%
Reporting                  6/6       •   The Entity’s reporting status were up to date

                          100%
Performance of              7/8
Contracts Committee        88%
Record Keeping              5/8      •   No record of supplier performance appraisal.

                          63%


                                                                                               182
Aggregate                                                   SATISFACTORY
                             79%
Compliance Score of
PDE

RECOMMENDATIONS

   1. PDU should record issue of solicitation documents and bid submission using the standard PP
      Form.
   2. Evaluation Committee should sign the code of ethical code of conduct prior to commencing on an
      evaluation.
   3. Entity should keep supplier performance and contract management records.




                                                                                                183
NAME OF PDE: Uganda Printing and Publishing Corporation


DATE OF ASSESSMENT: 17th – 18th June


MANDATE: To Provide Printing and Publishing Facilities.


LEGAL/INSTITUTIONAL STATUS: State Enterprise


BUDGET (GOU/DONORS): Budget for FY 2007/2008 was UShs. 2.3b. The Entity generates its own
                      resources from sales of its products. Procurement accounts for 48%.


SIZE OF PDE: 75 Staff


ACCOUNTING OFFICER: Mrs. Elizabeth Bakaawa Sekabembe

CONTRACTS COMMITTEE MEMBERS

           1.   Mr. Joseph Mubuya           Assistant Production Manager   Chairperson
           2.   Mr. Francis Bongonyinge     Production Manager             Secretary
           3.   Mr. Ferdinard Lukyamuzi     Assistant Accountant           Member
           4.   Mr. Leopold Iyamulemye      Assistant Accountant           Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

           1. Mrs. Jackie Luutu      Assistant Manager     Head/PDU




                                                                                         184
    COMPLIANCE AREA              SCORE /                              FINDINGS
                                 RATING

Procurement Structures            6/10     • The Accounting Officer is in place and has established the
                                             Procurement and Disposal Unit
                                  60%      • 4 Contracts Committee members are approved by PS/ST.
                                           • The user departments initiate procurements and make use of PP
                                             Form 20.
                                           • Internal audit reports on the procurement and disposal processes
                                             seem.
Procurement Planning              9/10     • Entity has a procurement and disposal plan in place.
                                           • The Entity has a pre-qualified list of providers in place
                                  90%      • There was evidence of use of framework contracts seen.
Solicitation   and     Bidding    7/10     • Records of issue of solicitation documents and solicitation
procedures                                   documents are kept on the files
                                  70%      • Records of bid submission and opening seen on files.
                                           • Minimum bidding periods observed in the cases sampled
                                           • Methods used are appropriate to the threshold and circumstances as
                                             provided for under the PPDA Guidelines.
                                           • Some of the copies of the solicitation documents issued and bids
                                             received availed.



                                                                                                   185
   COMPLIANCE AREA                SCORE /                                 FINDINGS
                                  RATING

Evaluation procedures              6/10       • Evaluation reports seen on the procurements samples and use the
                                   60%          evaluation methodology in the solicitation documents.
                                              • Records of Acceptance of Code of Ethical Conduct for EC members
                                                seen on the files.
                                              • Evidence of nomination by the PDU and approval of the members
                                                of the Evaluations Committee by the Contracts Committee seen.
                                              • Evaluation reports are signed approved by CC.
Contract placement, award and      2/10       • Entity does not post the notices of the best evaluated bidder and the
management                                      notice of contract award on the PPDA website.
                                   20%        • Contract documents were not on the individual procurement files.
                                              • There are no records of supplier appraisal and performance.
                                              • No evidence that the unsuccessful bidders are notified in writing
                                              • There was no evidence that the User Department is involved in
                                                certifying payment.
Reporting                           3/6       • Entity is not up to date in the monthly procurement and disposal
                                                reporting. Reports for March and April 2008 have not been
                                   50%          submitted.
                                              • Entity uses the standard format in the monthly reporting
                                              • Contracts Committee minutes are at times not attached to the
                                                reports.
                                              • Entity responds to queries raised by the Authority on the monthly
                                                reports.
Performance      of   Contracts     6/8       • Contracts Committee meets regularly.
Committee                                     • Most of the Contracts Committee minutes were available on the
                                   75%          file.
                                              • Record of Acceptance of Code of Ethical Conduct for CC members
                                                not signed by the members at each meeting.
Record Keeping                      4/8       • The record/filling system is being started in the PDU and needs a
                                                   lot of strengthening.
                                   50%        • Individual procurements have procurement reference numbers
                                                   assigned to them

Total Score and                    60%                       MODERATELY SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS:

   1. The Accounting Officer should nominate a fifth Contracts Committee member to fully constitute
      the Committee. This person should have legal background as required by the PPDA Act and
      Regulations.
   2. Entity should adhere to the timely monthly procurement and disposal reporting in accordance
      with the PPDA Act and Regulations.
   3. Records of Acceptance of Code of Ethical Conduct for Contracts Committee members should be
      signed at each meeting and kept by the Secretary.
   4. The Entity should display notices of the best evaluated bidder and contract award on the PPDA
      Website.
   5. Unsuccessful bidders should be notified in writing and evidence of the notification be put on the
      procurement file.


                                                                                                         186
NAME OF PDE: Uganda Property Holdings Limited (UPHL)


DATE OF ASSESSMENT: 12th – 13th June 2008


MANDATE:      Manage Government Properties in Bugolobi, Nalukolongo, Tororo, Mombasa and
              London


LEGAL/INSTITUTIONAL STATUS: State Enterprise


BUDGET (GOU/DONORS): Rental income from government properties


SIZE OF PDE: 10 staff


ACCOUNTING OFFICER (Name): Mr. A. B Abaliwano


CONTRACTS COMMITTEE MEMBERS (Names):

                                  1.   Mr. Kihembo Martin    Chairman
                                  2.   Ms. Bwanika Damali    Member
                                  3.   Mr. Bemanya Twebaze   Member (Legal)
                                  4.   Ms. Keeba Rosette     Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                                  1.      Andrew Muhimbise PO




                                                                                    187
     COMPLIANCE AREA               SCORE / RATING                  FINDINGS


Procurement Structures                  4/10        •   CC details not sent to PPDA
                                                    •   No record of confirmation of funding.
                                        40%         •   The Internal Auditor does not audit the
                                                        procurement       process,     payments and
                                                        deliveries.
Procurement                             6/10        •   There is no procurement plan
Planning                                            •   Entity has a shortlist of providers.
                                        60%         •   User departments do not prepare department’s
                                                        procurement plans.
                                                    •   No approved procurement plan.
                                                    •   Entity has an Assets Register.
                                                    •   Entity does not make use of framework
                                                        contracts.
Solicitation   and       bidding        4/10        •   No record of issue of bid documents
procedures                                          •   Some times the method of procurement used
                                        40%             is appropriate to the thresholds.
                                                    •   No records of bid submission and opening



                                                                                              188
                                                               seen on file.
                                                           •   The minimum bidding period is not observed.

Evaluation procedures                    5/10              •   Evaluation methodology not followed
                                                           •   Some times the composition of the Evaluation
                                         50%                   Committee is approved by the Contracts
                                                               Committee.
                                                           •   The EC does nit sign the code of ethical
                                                               conduct.
                                                           •   There were a few evaluation reports seen on
                                                               file.
                                                           •   The minutes indicate approval of the
                                                               evaluation reports.
Contract placement, award and            0/10              •   Delay in award
management                                                 •   There were no notices to the best evaluated
                                         0%                    bidder or the unsuccessful bidders.
                                                           •   There was no evidence of execution of
                                                               contracts within the contractual completion
                                                               date.
                                                           •   There was no evidence of the involvement of
                                                               the user departments in certifying payments
                                                               of the contractual sum.
Reporting                                2/06              •   Monthly reports for the period Jan-May 08
                                                               not submitted
                                         33%               •   The samples of reports reviewed indicate that
                                                               the standard format is used.
Performance      of     Contracts        3/08              •   Retrospective approvals.
Committee                                                  •   No record of acceptance of code of ethics.
                                         38%               •   There were detailed minutes on file but not
                                                               recorded on the appropriate forms.
Record Keeping                           2/08              •   Not all records pertaining to the procurement
                                                               are on file
                                         25%               •   No evidence on supplier appraisal.
                                                           •   Only one procurement had a procurement
                                                               reference number.
Total Score of PDE and
Compliance Rating                       36%                           UNSATISFACTORY




 RECOMMENDATIONS:

 1. Entity requires urgent hands-on training in the following areas:
     a) PDU and Contracts Committee
           i.     Use of PPDA Standard Forms
          ii.     Segragation of duties particularly between CC and PDU
     b) PDU and User Department
              i.  Preparation of a Procurement Plan
             ii.  Record Keeping
 2. Accounting Officer should ensure preparation of departmental plans and consolidated procurement
     plan and submit a copy to the Authority.
 3. Accounting Officer should ensure timely submission of monthly reports.


                                                                                                      189
4. The User departments should always initiate procurements on PP Form 20 as required under
    Regulation 104 of the PPDA Regulations.
5. The Internal Auditor should audit the procurement process, payment and deliveries.
6. The user departments should prepare departmental procurement plans and submit them to the
    PDU.
7. The Entity should prepare a procurement plan and submit a copy of it to the Authority.
8. The entity should also make use of the framework contracts for commonly procured items.
9. The Entity should use standard bidding documents issued by PPDA for their contracts.
10. The minimum bidding period should always be observed.
11. When bids are received and opened, there should be a record to that effect and such record should
    be filed.
12. The Evaluation committee should use the appropriate evaluation methodology when evaluating
    bids.
13. They should also sign a code of ethical conduct before going about their business.
14. Notice should always be given to the best evaluated bidder as provided for under Regulation
    224(3) of the PPDA Regulations.
15. The unsuccessful bidders should also be given notice in writing as provided for under Regulation
    225(4) of the PPDA Regulations.
16. The notices of contract award should be posted to the PPDA website for the statutory display
    period.
17. The user departments should be involved in contract management by certifying payments of
    contractual sums.
18. The contracts committee should always sign the code of ethical conduct before going about their
    business.
19. The contracts committee decisions on submissions should always be recorded on PP/DPA Forms
    and the minutes recorded on the appropriate forms.
20. Individual cases should be given procurement reference numbers.
21. Entity should ensure that all procurement records are kept on their respective files.
22. The Entity should appraise the performance of its suppliers.




                                                                                                 190
3.1.5 Commissions

    NAME OF PDE: Education Service Commission


    DATE OF ASSESSMENT: 24th – 25th July 2008


    MANDATE: To provide an Efficient, Professional, Accountable, Transparent and Motivated Education
             Service.


    LEGAL/INSTITUTIONAL STATUS: Commission


    BUDGET (GOU/DONORS): Government of Uganda (Consolidated Fund)


    SIZE OF PDE: Medium


    ACCOUNTING OFFICER: Eng. Bezalel K. Kabanda


    CONTRACTS COMMITTEE MEMBERS: (Names):

                        1.   Mr. Okunny Vincent de Paul: Principal Assistant Secretary   - Chairperson
                        2.   Ms. Harriet Tukamushaba :    Solicitor General’s Office     - Member
                        3.   Mr. Bamweyana Ahmed :            Accountant                 - Member
                        4.   Mr. Stephen Ddungu : Assistant Commissioner/Personnel       - Member
                        5.   Mr. Patrick J. Siduda :      Senior Office Supervisor        - Secretary


    PROCUREMENT AND DISPOSAL UNIT MEMBER: (Names):

                        1. Ms Kyasimire Arlene - Assistant Procurement Officer




                                                                                                     191
 COMPLIANCE          SCORE /                                FINDINGS
    AREA             RATING

Procurement           8/10     •   The Accounting Officer has appointed the Contracts Committee and
Structures                         these were approved by PS/ST and PP220 is filed with the Authority.
                      80%      •   The PDU has not been established and PP Form 221 has never been
                                   filed with PPDA yet there is a dedicated APO who sits in the officer of
                                   the Information officer.
                               •   The user depts. initiate all the procurements on PP form 20
                               •   Information as to whether the internal auditor has audited the
                                   procurement process was availed.

Procurement           10/10    •   Entity has an approved procurement plan in the PPDA format.
Planning                       •   There are departmental plans seen on record.
                      100%     •   A copy of the assets register with the provision of asset disposal
                                   planning was availed.
                               •   There is use of Framework contracts for repetitively procured items
                                   like Internet, Catering and cleaning Services

Solicitation   and    5/10     •   There are Records of issue of solicitation documents, and bid
bidding                            submission and opening
procedures            50%      •   There are Copies of the solicitation documents issued to the bidders and
                                   use the format issued by the PPDA




                                                                                                      192
                                  •   In some of procurements, the method used was not appropriate to the
                                      threshold.

Evaluation              5/10      •   Two out of the ten sampled procurement files in form of e lacked the
procedures                            following documents:
                        50%                o Approval of members of the Evaluation Committee;
                                           o Record of acceptance of Code of Ethical Conduct for the
                                               Evaluation members; and
                                           o Evaluation minutes.
                                           o Evaluation reports.
Contract                6/10      •   The Entity does not post the notice of best evaluated bidder and notice
placement, award                      of contract award on the PPDA website
and management          60%       •   No record of notification of the award to the unsuccessful bidders in
                                      writing on the sampled procurement files.
                                  •   Though there is some evidence of Execution of the contracts within the
                                      contractual completion date, the providers are never paid on time.
                                  •   There are records of the involvement of the user departments in
                                      certifying payment of the contractual sums.
Reporting               5/6       •   All monthly reports have been submitted on time for the period under
                                      review apart from the Month of April because the APO had left for
                        83%           Maternity leave.
                                  •   All the reports use the Standard formats and all PP forms are filled and
                                      CC minutes attached.
                                  •   There are no Queries by the Authority on reports submitted
Performance        of   8/8       •   There are records of Acceptance of the Code of Ethical Conduct in
Contracts                             Business by the CC members present on PP Form 211.
Committee               100%      •   There are records of CC decisions on the submission on PP form.
                                  •   The CC has not granted any retrospective approval.
Record Keeping          5/8       •   There is a record/filing system in place but some of the records filed do
                                      not contain all the requirements of the law
                        63%       •   There are no records of supplier appraisal or performance.
Total Overall
Rating of Entity        72%                                   SATISFACTORY



RECOMMENDATIONS:

   1. There is need for the PDE to establish a PDU, file PP Form 221 with PPDA and recruit a senior
       procurement to help the APO.
   2. Much as the PDE procurement planning complies, there are procurements in form of emergencies
       that come as directives from the MOES that comprise the Law and should be stopped.
   3. The Entity should adhere to the (PPDA) Guidelines for the thresholds.
   4. The entity should ensure that all procurement files should contain all the evaluation procedures.
   5. Notices of the best evaluated Bidder and Contract Award should be posted on the PPDA website
       for a statutory display period.
   6. Unsuccessful bidders should be notified in writing.
   7. Providers should be paid on time to motivate their performance further.
   8. Procurement report for the month of April should be submitted by the acting APO.
   9. Performance of the CC complies with the law.
   10. All the procurement files should contain all the requirements of the law.
   11. .Entity should put in place mechanisms of supplier appraisal/performance.



                                                                                                          193
NAME OF PDE: Health Service Commission


MANDATE: Recruits health workers for Ministry of Health and Referral hospitals


LEGAL/INSTITUTIONAL STATUS: Statutory Corporation


BUDGET (GOU/DONORS): Government funded


SIZE OF PDE: 50 workers including support staff


ACCOUNTING OFFICER: Ms. Dorothy Nassolo


CONTRACTS COMMITTEE MEMBERS: (Names):

                                               1.    Wasike Mary
                                               2.    Wamala David
                                               3.    Souza J B
                                               4.    Byoleko Florence
                                               5.    Barente


PROCUREMENT AND DISPOSAL UNIT STAFF: (Names):

                                               1.    Munyole Moses




                                                                                 194
   COMPLIANCE          SCORE/ RATING                FINDINGS
        AREA
Procurement                 5/10       The Commission has an acting Accounting
Structures                             officer
                            50%        The CC members are approved and the PDU is
                                       established.
                                       The Internal Auditor does not audit the
                                       Procurement processes, payment and deliveries.
                                       PP Forms 220 and 221 were not filed with
                                       PPDA.
                                       User departments initiate all procurements.
Procurement Planning        5/10       The Entity has a procurement plan but no
                                       departmental procurement plans.
                            50%        The Commission has a list of prequalified
                                       providers.
                                       It has an Assets Register but no Disposal Plan.
                                       The Commission does not make use of
                                       framework contracts.
Solicitation and            8/10       The Commission uses standard bidding
bidding procedures                     document with the standard format issued by
                            80%        PPDA.
                                       The methods used are usually appropriate to the
                                       threshold and the minimum bidding period



                                                                                         195
                                                          observed.
                                                          There were a few records of bid submission and
                                                          opening on a few files perused.
  Evaluation procedures              8/10                 Evaluation is done on an approved criteria but
                                                          no evidence of signing ethical code by members
                                     80%                  of the evaluation committee.
                                                          The Contracts Committee approves the members
                                                          of the Evaluation Committee.
                                                          There were also Evaluation reports on files and
                                                          such reports were approved by the Contracts
                                                          Committee.
  Contract placement,                3/10                 Unsuccessful bidders are not notified in writing.
  award and                                               The notice of contract award is not posted on the
  management                         30%                  PPDA website.
                                                          There was no evidence of involvement of user
                                                          departments in certifying payments of
                                                          contractual sums
  Reporting                          6/6                  Monthly reports are submitted in time and the
                                                          Commission’s reporting is up to date.
                                  100%                    The reports samples used the standard format by
                                                          PPDA.
  Performance of                     3/8                  The CC sits only when there are issues to
  Contracts Committee                                     discuss however members do not sign the ethical
                                     37                   code.
                                                          There were no records of contracts committee
                                                          decisions on submissions on PP/DPA forms on
                                                          files.
                                                          There contracts committee minutes on file
                                                          recorded on the appropriate forms.
  Record Keeping                     5/8                  The Commission has a filing system in the PDU.
                                                          The Commission also uses procurement
                                     63%                  reference numbers for individual cases.
                                                          There was no record of supplier appraisal.

 Aggregate Score        and   63 %                                      SATISFACTORY
 Compliance
 Rating of PDE

RECOMMENDATIONS:

  1. The Accounting Officer should be trained.
  2. The Internal Auditor should audit the procurement processes, payments and deliveries.
  3. The Commission should submit PP Forms 220 and 221 with PPDA.
  4. The different departments should submit departmental procurement plans with the PDU.
  5. The Commission should make a provision for Asset disposal planning.
  6. The Commission should make use of framework contracts for frequently procured items.
  7. Members of the evaluation committee should be sensitized about the use of the ethical code of
      conduct.
  8. Unsuccessful bidders should be notified in writing
  9. The notice of contract award should be posted on the PPDA website for the statutory display period.
  10. The user department should be involved in certifying payments of contractual sums.
  11. Members should be sensitized to sign the ethical code
  12. There should be records of contracts committee decisions on submissions on PP/DPA forms on file.
  13. The Commission should appraise its suppliers’ performance.


                                                                                                          196
NAME OF PDE: Local Government Finance Commission


DATE OF ASSESSMENT: 12th August 2008


MANDATE: To advise the President on all matters concerning allocation of resources to Local
         Governments from the Consolidated Fund and other sources.


LEGAL/INSTITUTIONAL STATUS: Statutory body established by an Act of Parliament 9 of
                            2003.


BUDGET (GOU/DONORS): Has a total budget of approximately 1.7 billion Uganda shillings
                     got from G0U and Donors – Local Government Sector
                     Investment Plan (LGSIP), with 24% spent on procurement.


SIZE OF PDE: Entity is divided in sections, Grants, Local revenue and Administration. The
            entity has a total of 36 members of staff.



ACCOUNTING OFFICER: Mr. Lawrence Banyoya



CONTRACTS COMMITTEE MEMBERS: (Names)
                        1. Mr. Dick Asiimwe - Chairperson
                        2. Mrs. Ketrah Katunguka - Member
                        3. Mr. Richard Kwizera - Member
                        4. Mr. A. Kasule          - Member
                        5. Ms. Priscilla Asiimire - Secretary


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                                      1. Mr. Ellis Biryahwaho -Head Procurement Unit.




                                                                                              197
 COMPLIANCE   SCORE /                                   FINDINGS
    AREA      RATING

Procurement    6/10     •   The Accounting Officer knows his role in the procurement cycle.
Structures              •   Handled an administrative review in respect of procurement Ref No.
               60%          LGFC/SUPP/06-07/00001/02 by Kampala Nissan Ltd.
                        •   The CC members are five (5) and were approved by the PS/ST, on 13th
                            June 2005.
                        •   The senior and middle level staff were trained by the Authority in January
                            2008.
                        •   PDU is under staffed.
                        •   Initiation of common user items like stationery is centralized. It is initiated
                            by the stores assistant through DFA on PP Form 20.
                        •   Entity does not have an internal Auditor. An external auditor from the
                            Auditor General’s office carries out post audits of the procurement.
                        •   External auditor counter signs vouchers for procurements above 1m
Procurement    6/10     •   The Entity has an approved pre-qualification list for FY 2006-09 and an
Planning                    updated supplier’s list with consultancy services 2007- 2009.
               60%      •   Entity has an approved procurement plan but                no departmental
                            procurement plans since it has no departments)
                        •   Entity has an up dated assets register.
                        •   Entity does not use framework contracts due to the challenge of unstable
                            prices.



                                                                                              198
  COMPLIANCE           SCORE /                                      FINDINGS
     AREA              RATING

Solicitation   and       8/10         •   Entity uses SBDs issued by PPDA.
Bidding procedures                    •   Most of the sampled cases were procurement under LGSIP. Entity used a
                         80%              wrong method; put the following procurement processes in lots i.e
                                              o Desktop Computers, Ext DVD writer CD’s & Flash disks LOT 1
                                              o Assorted Furniture, Desktop, Laptop computers Soft ware and
                                                   Assorted office equipment- Lot 2
                                              o Procurement of database server, soft ware, net work HUB and
                                                   installation services of network software –Lot 3
                                              o Supply of computers equipment, software consultancy and
                                                   installation configuration- Lot 4
                                              o Assorted stationery Lot 5
                                              o Purchase of furniture -Lot 6
                                      •   Records of bid submission and opening on all sampled cases.
Evaluation              10/10         •   Necessary records on the evaluation procedures were on all sampled files.
procedures              100%
Contract placement,      7/10         •   Entity informs both the successful and unsuccessful bidders.
award          and                    •   Notices are posted on PDE notice board for the statutory display period.
management               70%          •   Entity does not post notices on PPDA website.
                                      •   Entity seeks SG approval, although faces a challenge of delays. The
                                          clearance takes a minimum of 3 weeks.
                                      •   Some of the sampled cases were not completed within the contractual
                                          completion date due to delayed internal approvals
                                      •   The user departments are fully involved in the payment process. Payments
                                          are based on satisfactory reports by the users that the works/services are
                                          done or supplies delivered.
Reporting                5/6          •   Up to date on submission of monthly reports. Latest submission was on 5th
                                          August 2008.
                         83%          •   Entity had not satisfactorily resolved the Authority’s query on the posting
                                          of notices on the PPDA website as advised on 6/3/07
Performance       of     7/8          •   CC members record acceptance of code of ethical conduct in business at
Contracts                                 every meeting.
Committee                88%          •   All records of Contracts Committee decision are on PP Forms.
                                      •   Contracts Committee has no regular meetings due to the members’ busy
                                          schedule, it grants omnibus approvals.
Record Keeping           6/8          •   Entity has record/filling systems in PDU.
                                      •   All the sampled cases had all records required by law.
                         75%          •   All the sampled cases had standard reference numbers.
                                      •   Entity has no record of supplier performance.

Total Score and          79%                                     SATISFACTORY
Overall Rating    of
PDE

RECOMMENDATIONS:
  1. Entity should appreciate the law on division of procurements into lots, Reg. 101.
  2. The Entity should file PP Forms 220 and 221 with the Authority.
  3. The Entity should post notices on the PPDA website for the statutory display period.
  4. Entity should put in place a suppliers’ performance system.




                                                                                                         199
NAME OF PDE: Public Service Commission


DATE OF ASSESSMENT: 24th- 25th July 2008


MANDATE: To determine the rights, responsibilities, terms and conditions, motivation,
            recruitment, confirmation, career development and assessment of the
            performance of public officers.


LEGAL/INSTITUTIONAL STATUS: Constitutional Body established under Article 165
                                     (1) of the Constitution- Commission.


BUDGET (GOU/DONORS): GOU


SIZE OF PDE: 83 members of staff.


ACCOUNTING OFFICER (Name): Mr. Dancun Bigirwa - Secretary/PSC


CONTRACTS COMMITTEE MEMBERS (Names):

                         1.   Mr. Okello Okot        ACP/IG & M, Chairperson, CC
                         2.   Mrs Margaret Kyetune   PAS, Member, CC
                         3.   Mr. Remmy Tabaro       SA, Member, CC
                         4.   Mr. Badru Buyondo      SPO, Member, CC

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                         1. Mr. Geoffrey Etiang   Procurement Officer




                                                                                        200
  COMPLIANCE AREA        SCORE / RATING                       FINDINGS


Procurement Structures        8/10        •   The AO has a clear understanding of his role for the
                              80%             overall responsibility for the procurement and
                                              disposal process.
                                          •   4 CC members are in place but PP Form 220 is not
                                              filed with the Authority.
                                          •   The PDU is established with an Acting Principle
                                              Officer.
                                          •   User departments initiate all procurements on PP
                                              Form 20
                                          •   Internal Auditor does not audit the procurement
                                              processes only deliveries.
Procurement Planning          5/10        •   Entity has a pre-qualified list of providers, however
                                              some providers for the sampled cases were not on the
                              50%             pre – qualified list.
                                          •   Has no departmental procurement plans
                                          •   The Assets Register is in place without an assets
                                              disposal plan.
                                          •   Has an approved procurement plan though not in the
                                              PPDA format.
                                          •   The entity does not use framework contracts for



                                                                                            201
                                                          repetitively procured items
Solicitation   and   bidding        4/10              •   There were no records for issue of solicitation
procedures                                                documents.
                                    40%               •   Entity does not use SBD formats issued by PPDA.
                                                      •   Methods used were appropriate to the thresholds for
                                                          the sampled cases.
                                                      •   Bidding periods were observed in the sampled cases.
                                                      •   Records on bid submission and opening were
                                                          available on same of the sampled cases.
Evaluation procedures               2/10              •   No records on evaluation procedures for all cases
                                    20%                   sampled except approval of evaluation reports by CC
Contract placement, award           4/10              •   Notices for the BEB and Contract award are posted
and management                                            on the PDE Notice Board but not on the PPDA
                                    40%                   website.
                                                      •   Unsuccessful bidders are sometimes notified in
                                                          writing.
                                                      •   Draft contracts, agreements and LPOs on all the cases
                                                          sampled were not approved by CC except for
                                                          procurement of vehicles, because most procurements
                                                          are by RFQ method.
                                                      •   There was no evidence on the execution of contracts
                                                          with in the contractual completion period.
                                                      •   User departments are not involved in verifying
                                                          payments of Contractual sum, they are involved at the
                                                          verification of deliveries.

Reporting                            6/6              •   The entity had submitted all monthly reports to PPDA
                                                          in the required format on PP Forms 200, 201 and 202.
                                   100%
Performance of Contracts            8/8           On all the sampled cases there were;
Committee                                             • Records of Acceptance of Code of Ethical Conduct
                                   100%                    in Business present on PP Form 211
                                                      • Records of CC decisions on a submission present on
                                                           PP/DPA Form
                                                      • Record of CC meetings on PP Form 210.
                                                      • CC had never approved any contract retrospectively.
Record Keeping                       3/8              • Individual cases have standard procurement reference
                                                           numbers
                                    34%               • PDU lacks a record/filing system.
                                                      • Some records lacked some requirements of the law.
                                                      • Entity does not have supplier appraisal/performance
                                                           system.
Total Score and
Overall Rating of PDE               58%                      MODERATELY SATISFACTORY


 RECOMMENDATIONS:

      1. Entity should fully constitute the Contracts Committee and adequately staff the PDU.
      2. The Internal Auditor should audit the procurement and disposal processes and payments.
      3. User departments should prepare multi- annual rolling procurement plans with reference to Reg.
         96 of the PPDA Regulations 70 of 2003.



                                                                                                        202
4. The assets register should have provisions for an asset disposal plan.
5. The entity should pre qualified providers for supplies, services (Consultancy and non
    consultancy) and works.
6. The procurement plan for the entity should be prepared in the PPDA format with reference to
    Reg. 97 of the PPDA
7. The entity should consider using framework contracts for repetitively procured items
8. The CC should approve all the contracts/agreements/LPOs
9. PDU should use SBD formats as issued by the Authority
10. Award notices should be posted on the PPDA website and unsuccessful bidders always notified.
11. Records on contract performance should always be filed
12. User departments should be involved in certifying payments
13. The entity should have a filing system in place
14. PDU should have copies of all relevant records on procurements and disposals.
15. The entity should put in place a supplier appraisal system.




                                                                                            203
NAME OF PDE: Uganda Aids Commission


Date of Assessment: 12th - 13th June 2008


MANDATE: To control on behalf of the GOU, all efforts towards reducing/controlling the
         spread of HIV/AIDS.


LEGAL/INSTITUTIONAL STATUS: Government organization under the Office of the
                            President.


BUDGET (GOU/DONORS): Receives only 10% of its budget from GOU, the rest is donor
                     funded.


SIZE OF PDE: 63 Members of Staff.


ACCOUNTING OFFICER (Name): Dr. Kihumuro Apuuli


CONTRACTS COMMITTEE MEMBERS (Names)
                             1. Ms. Nalwadda R
                             2. Mr. C Gashirabake
                             3. Mr. J Kigozi
                             4. Mrs. R Mwesigwa
                             5. Mrs. R Kabugo


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names)
                              1. Mr. Bernard Rwakihembo -    Head PDU
                              2. Mr. Simon Wairugala - Asst. Head PDU




                                                                                         204
  COMPLIANCE AREA           SCORE/RATING                 FINDINGS

Procurement Structures          10/10      •   The CC’s term expires in June 2008.
                                           •   It was noted that the CC did not undergo
                                               any form of training throughout its tenure.
                                           •   There was evidence that the function of
                                               the PDU and CC in the Procurement
                                               Process was grossly undermined by the
                                               requirements of the donors who are the
                                               main financiers (up to 90%) of the PDE’s
                                               budget.


Procurement Planning            8/10       •   Procurement Plan is in place but it is not
                                               followed.
                                80%        •   Entity has several procurements of an
                                               emergency nature.
Solicitation and Bidding        10/10      •   Solicitation and bidding procedures are
Procedures                                     followed.
                                100%
Evaluation Procedures           10/10      •   The appropriate Evaluation methodology
                                                is followed and necessary reports filed.
                                100%
Contract Placement, Award        3/10      •   The unsuccessful bidders are not notified



                                                                                             205
and Management                                                              in writing.
                                    30%                  •   Notices of contract award are not posted
                                                                      on the PPDA website.

Reporting                            2/6                •    The Entities monthly reports were last
                                                             submitted in February 2008!
                                    33%
Performance of Contracts                                •    Based on one procurement of 4WD
Committee                            8/8                     vehicles considering that the PDE did not
                                                             have any other procurement apart from
                                    100%                     micro procurements over the period under
                                                             review.
Record Keeping                       6/8                •    Record of Supplier appraisal and contract
                                                             management were not being included on
                                    75%                      the PDU files.

Aggregate Score of PDE                                             SATISFACTORY
                                    79%



RECOMMENDATIONS:

   1. Contracts Committee requires urgent training
   2. The Entity should file PP Form 220 and 221 with the Authority.
   3. Entity should adhere to the procurement plan.
   4. Entity should ensure timely submission of monthly reports in accordance with the law.
   5. The Entity should post contract award notices to the PPDA website for the statutory display
      period.
   6. Entity should keep records on supplier performance and contract management records.




                                                                                                         206
NAME OF PDE: Uganda Communications Commission


DATE OF ASSESSMENT: 17th – 18th July 2008


MANDATE: To facilitate sustainable development of communication services that is universally
         accessible through effective regulation.


LEGAL/INSTITUTIONAL STATUS: Parastatal


BUDGET (GOU/DONORS): GOU, World Bank


SIZE OF PDE: 6 user departments with 63 staff members.


ACCOUNTING OFFICER (Name): Mr. Patrick Masambu


CONTRACTS COMMITTEE MEMBERS (Names):

                                 1.   Mr. Patrick Mwesigwa – Chairperson,
                                 2.   Ms Joanita Nampewo - Secretary- Manager Legal
                                 3.   Mr. David Ogong       - Member- Finance Manager
                                 4.   Ms. Ann Rita Sembooga - Member
                                 5.   Mr. Fred Otunnu         - Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                 1.   Mr. Elly Ruharo        - Procurement Manager- HPDU
                                 2.   Mr. David Kizito       - Procurement specialist- PDU




                                                                                               207
COMPLIANCE AREA            SCORE /                               FINDINGS
                           RATING

Procurement Structures      9/10     •    There is an AO who is responsible for all the procurements and
                                          disposals
                            90%      •    CC in place and made up of 5 members approved by PS/ST.
                                     •    There is a well established PDU.
                                     •    PP Forms 220 and 221 were not submitted to the Authority.

Procurement Planning        7/10     •    Procurement exists and is prepared in the standard PPDA format.
                                     •    User department plans are not approved by heads of departments.
                            70%
Solicitation and bidding    10/10    •    Solicitation documents are the standard format issued by PPDA.
procedures                           •    Bidding periods are observed.
                            100%     •    No evidence of records for approval of method and bidding
                                          documents for procurements under RFQ method.

Evaluation procedures       9/10      •   Evaluation committee members are approved by CC.
                                      •   Appropriate evaluation methodology used.
                            90%      •    Code of ethical conduct signed by members of the evaluation
                                          committee.




                                                                                                    208
Contract    placement,         5/10        •   Some of the procurements did not have contract management
award and management                           records.
                              50%          •   There was no evidence of involvement of the user department in
                                               certifying payment of contractual sum.
                                           •   The notice of contract award is not posted on the PPDA website.


Reporting                      6/6         •   Monthly reports are prepared and submitted to the Authority.
                                           •   Some CC minutes are not attached to the monthly reports.
                              100%
Performance         of         5/8         •   CC members meet at least twice every month and consider all
Contracts Committee                            procurements from the PDU to ensure compliance.
                              63%          •   Minutes of CC meetings are well prepared and signed.
                                           •   There’s no record of the Contracts Committee decisions on
                                               submissions on PP/DPA Forms.

Record Keeping                 6/8         •   Overall, there is a good record and filing system in the PDU with
                                               only a few cases of some missing documents.
                              75%



Aggregate Score and
Compliance Rating               81%                                SATISFACTORY




 RECOMMENDATIONS:

     1.     There’s need to recruit another member in the PDU.
     2.     The Entity should file PP Forms 220 and 221 with the Authority.
     3.     All departments should approve the department plans before they are submitted to the PDU.
     4.     For procurements under RFQ, there is need for CC to delegate approval of method and bidding
            documents to the PDU.
     5.     All contract management records where required, should be filed in the procurement files.
     6.     The user department should be involved in certifying the payment of the contractual sum.
     7.     Notices of contract award should be posted to the PPDA website for wide circulation.
     8.     All CC minutes on procurements handled during the month should be attached to the monthly
            reports.
     9.     The Contracts Committee decisions on submissions should be recorded on PP/DPA Forms.
     10.    All the records on procurement should be filed.




                                                                                                          209
NAME OF PDE: Uganda Human Rights Commission


MANDATE: Monitoring the Observance of Human Rights in Uganda.


LEGAL/INSTITUTIONAL STATUS: Constitutional Body


BUDGET (GOU/DONORS): GOU & Donor Funds


SIZE OF PDE: 122 persons employed in 8 different regional offices.


ACCOUNTING OFFICER: Mr. Gordon Mwesigye


CONTRACTS COMMITTEE MEMBERS: (Names):

                                          1. Ms. Dora Kabuye - Chairperson
                                          2. Ms. Kemigisha Rosemary - Member
                                          3. Ms. Mumyirwa Florence - Member
                                          4. Ms. Nantumbwe Harriet - Member
                                          5. Ms. Karugonjo Roselyn - Member

PROCUREMENT DISPOSAL UNIT STAFF: (Names):

                                         1. Ms. Nakirya Prossy
                                         2. Ms. Nabukenya Brenda




                                                                               210
                           SCORE/
  COMPLIANCE AREA          RATING                      FINDINGS

Procurement Structures      8/10    •   The Commission has an acting Accounting officer
                                    •   The CC members are approved and the PDU is
                            80%         established.
                                    •   The Internal Auditor does not audit the Procurement
                                        processes, payment and deliveries.
                                    •   PP Forms 220 and 221 were not filed with PPDA.
                                    •   U ser departments initiate all procurements.

Procurement Planning        9/10    •   The Entity has a procurement plan and departmental
                                        procurement plans.
                            90%     •   The Commission has a list of prequalified providers.
                                    •   It has an Assets Register but no Disposal Plan.
                                    •   The Commission does make use of framework
                                        contracts.

Solicitation and bidding    8/10    •   The Commission uses standard bidding document
procedures                              with the standard format issued by PPDA.
                            90%     •   The methods used are usually appropriate to the
                                        threshold and the minimum bidding period
                                        observed.
                                    •   There were records of bid submission and opening
                                        on a few files perused.



                                                                                           211
   Evaluation procedures              8/10            •   There was evidence of signing ethical code by
                                                          members of the evaluation committee.
                                      80%             •   The Contracts Committee approves the members of
                                                          the Evaluation Committee.
                                                      •   There were also Evaluation reports on files and such
                                                          reports were approved by the Contracts Committee.
                                                      •   The Evaluation Criteria followed is not very clear
                                                          and is not the one given by PPDA.
                                                      •
   Contract placement, award          6/10            •   The notice of contract award is not posted on the
   and management                                         PPDA website.
                                      60%             •   There was no evidence of involvement of user
                                                          departments in certifying payments of contractual
                                                          sums.
                                                      •   There was no evidence of involvement of user
                                                          departments in certifying payments.

   Reporting                          5/6             •   Monthly reports are submitted in time and the
                                                          Commission’s reporting is up to date.
                                      83%             •   The reports samples used the standard format by
                                                          PPDA.

   Performance of Contracts           8/8             •   The CC sits only when there are issues to discuss
   Committee                                              and members do sign the ethical code.
                                     100%             •   There were records of contracts committee
                                                          decisions on submissions on PP/DPA forms on files.
                                                      •   There contracts committee minutes on file recorded
                                                          on the appropriate forms.
   Record Keeping                     6/8             •   The Commission has a filing system in the PDU.
                                                      •   The Commission also uses procurement reference
                                      75%                 numbers for individual cases.
                                                      •   There was no record of supplier appraisal.


   Aggregate     Score        and
   Compliance                         82 %                      HIGHLY SATISFACTORY
   Rating of PDE


RECOMMENDATIONS:

   1. The Accounting Officer should be trained.
   2. The Commission should submit PP Forms 220 and 221 with PPDA.
   3. The Commission should make a provision for Asset disposal planning.
   4. Members of the evaluation committee should be sensitized about the use of the ethical code of conduct.
   5. The notice of contract award should be posted on the PPDA website for the statutory display period.
   6. The user department should be involved in certifying payments of contractual sums.
   7. The Entity should provide more space to the PDU to keep its records.
   8. The Commission should appraise its suppliers’ performance.




                                                                                                              212
NAME OF PDE: Uganda Insurance Commission (UIC)


DATE OF ASSESSMENT: 23rd – 24th July 2008


MANDATE: To ensure effective administration, supervision, regulation and control of the business of
         insurance in Uganda.


LEGAL/INSTITUTIONAL STATUS: The Entity is a statutory body established by The Insurance
                            Statute, 1996 [now the Insurance Act (Cap 213) of the Laws of
                            Uganda, 2000] Act.


BUDGET (GOU/DONORS): Shs 2,044,156,697; of which about 40% goes towards procurement.
                      The sources of the funds are: - Government of Uganda, Internally
                     Generated Funds and Donors


SIZE OF PDE: 24 staff, with the following two departments:-
                                                 • Insurance,
                                                 • Administration and Finance,


ACCOUNTING OFFICER:           Ms Evelyn Nkalubo - Muwemba


CONTRACTS COMMITTEE MEMBERS:

                                     1.       Mr. George Okotha              -       Chairperson
                                     2.       Mr. Bernard Obel               -       Member
                                     3.       Mr. Edward Kangave Kasato      -       Member
                                     4.       Ms. Rachel Kabale              -       Secretary
                                     5.       Mr. Chris Kananura             -       Member
                                     The first four members were appointed in April 2006 and the fifth
                                     member was appointed in April 2007.


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                     1.       Ms. Audrine Kakuru     –       Procurement Officer




                                                                                                 213
  COMPLIANCE AREA        SCORE / RATING                   FINDINGS


Procurement Structures        8/10        •   The 5 members of the contracts committee were
                                              approved by the PS/ST.
                              80%         •   PP Forms 220 and 221 were submitted to the
                                              Authority.
                                          •   The Entity’s PDU is fully established
                                          •   PDE does not have an Internal Auditor.
                                          •   The user departments initiate procurements on
                                              PP Form 20.
Procurement Planning          9/10        •   The     Entity      has    an    approved pre-
                                              qualification/shortlist of providers.
                              90%         •   The different user departments prepare
                                              departmental procurement plan.
                                          •   The Entity has an approved procurement plan
                                              and an Assets register with a provision for
                                              assets disposal.
                                          •   The Entity uses framework contracts for
                                              servicing computers and fax machines but not
                                              for things like stationery and fuel.




                                                                                     214
Solicitation   and    bidding       10/10             •   The files perused had copies of solicitation
procedures                                                documents issued by PPDA.
                                    100%              •   The methods used were appropriate to the
                                                          threshold and circumstances.
                                                      •   There were records of bid submission and
                                                          opening on files perused.

Evaluation procedures               10/10             •   The contracts committee approves the
                                                          composition of the Evaluation Committee.
                                    100%              •   The appropriate Evaluation methodology was
                                                          being used by the Evaluation committee.
                                                      •   The EC signs the Code of Ethical conduct and
                                                          there were evaluation minutes on files.
                                                      •   The contracts committee approves the
                                                          evaluation report.
Contract placement, award           9/10              •   Does not post Notice of Best Evaluated Bidder
and management                                            and Contract Award on PPDA website
                                    100%              •   The unsuccessful bidders are notified in writing.
                                                      •   There was evidence of execution of the contract
                                                          within the contractual completion date.
Reporting                            6/6              •   The Entity’s reporting status is up to date.

                                    100%
Performance    of    Contracts       8/8              •   The Entity’s CC minutes are recorded on the
Committee                                                 appropriate forms and filed.
                                    100%              •   Contracts committee decisions on submissions
                                                          are recorded on PP/DPA Forms and filed.
                                                      •   Contracts committee has not granted any
                                                          retrospective approvals.
Record Keeping                       6/8              •   The Entity has a filing system and individual
                                                          cases have procurement reference numbers.
                                    75%               •   No supplier appraisal report on the performance
                                                          of suppliers
Aggregate    Score     and
Compliance Rating of PDE            90 %                      HIGHLY SATISFACTORY


RECOMMENDATIONS:

   1. The Accounting Officer should ensure that an Internal Auditor is recruited.
   2. The PDE should use framework contracts for commonly procured items such as stationary and
      fuel
   3. PDE should post Notices of Best Evaluated Bidder and Contract Award on the PPDA website for
      the statutory display period.
   4. The user departments should conduct appraisals on suppliers’ performance.




                                                                                                    215
3.1.6 Regional Referral Hospitals

     NAME OF PDE: Arua Referral Hospital


     DATE OF ASSESSMENT: 16th June 2008


     MANDATE:       To provide specialized tertiary health care, train health workers and conduct research in
                    line with the requirements of the Ministry of     Health.


     LEGAL/INSTITUTIONAL STATUS:               Regional Referral Hospital under Ministry of Health (Semi
                                              autonomous).


     BUDGET (GOU/DONORS): The entity's has a total budget of approximately 781 million Uganda
                          shillings (Consolidated Fund – GOU & part donor funding.)


     SIZE OF PDE:     Arua Referral Hospital has got about 315 staff, both medical and support staff all
                      working in the key departments of the hospital.


     ACCOUNTING OFFICER:            Dr. Charles Olaro: Hospital Medical Superintendent.


     CONTRACTS COMMITTEE MEMBERS (Names):

                                    1.    Sr Obiru Sally    Ag. Chairperson
                                    2.    Sr. Amaguru Grace   Member
                                    3.    Mr. Adroa G Oyo     Secretary
                                    4.    Mr. Okoth Leonard   Member

     PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                    1.    Mr. Dombo Robert     Head PDU




                                                                                                        216
  COMPLIANCE AREA              SCORE /                               FINDINGS
                               RATING

Procurement Structures          7/10         •   CC committee is short by one member
                                             •   PP Form 221 was not seen on record.
                                70%          •   Requisitions forms are stamped by the Internal Auditor
Procurement Planning            3/10         •   No indication of User departmental plans seen on file.
                                             •   No Assets register in place.
                                30%          •   No framework contracts seen on file
Solicitation   and   Bidding    1/10         •   No record of issue of solicitation documents, Bid submission
procedures                                       and opening.
                                10%          • Solicitation documents do not use the PPDA format
                                             • Minimum bidding periods not observed
                                             • No record of bid submission seen
                                             • Thresholds for procurement methods are not followed for all
                                                 procurements
Evaluation procedures           0/10     Evaluation procedures completely flouted:
                                             • No record of approval of Evaluation Committee
                                 0%          • No evaluation reports generated for procurements carried.
                                             • No evidence of acceptance of code of ethics by EC
                                             • No clearance of EC reports by the CC



                                                                                                        217
  COMPLIANCE AREA           SCORE /                              FINDINGS
                            RATING

Contract placement, award     0/10    Contract management is very poor.
and management                           • No evidence/documentation of contract placement, award and
                              0%             management.
Reporting                     3/6        • Monthly reports are not submitted on time.

                             50%
Performance of Contracts      5/8         •   Contracts committee signs code of ethical code of conduct.
Committee                                 •   CC has never granted any retrospective approvals
                             63%          •   There is record of meetings and Minutes are prepared however
                                              there are no records of CC decisions
Record Keeping                3/8         •   No record of Supplier Appraisal/Performance.
                                          •   No Proper filing system in place.
                             38%          •   Reference numbering is not standardized


Total Score and              31%                            UNSATISFACTORY
Overall Rating of PDE



RECOMMENDATIONS

   1. The Accounting Officer and Contracts Committee need more training on the PPDA law.
   2. Accounting Officer needs to fill PP Form 221 on PDU and submit to the PPDA.
   3. CC should ensure that evaluation procedures (approval of EC, EC reports etc) are strictly adhered
       to.
   4. Membership of the Contracts Committee and membership of the PDU should be filled
   5. Frame work contracts should be used for repetitively procured items.
   6. All Solicitation documents for procurements should be made using the standard format issued by
       the PPDA.
   7. There should be a record of Acceptance of Code of Ethical Conduct for EC members. This should
       be signed every time they carry out an evaluation.
   8. All outstanding quarterly Reports should be submitted to PPDA promptly.
   9. Standard procurement reference numbering should be used on each individual case procured.
   10. Performance appraisal should be carried out on all providers and records kept by the PDU
   11. Notice of BEB should be posted on PDU notice board and unsuccessful bidders informed in
       writing.




                                                                                                     218
NAME OF PDE: Gulu Hospital



DATE OF ASSESSMENT: 8th – 9th July 2008


MANDATE: To provide medical referral cases


LEGAL/INSTITUTIONAL STATUS: Regional referral hospital


BUDGET (GOU/DONORS): Government of Uganda releases and Donors


SIZE OF PDE: 236 Employees


ACCOUNTING OFFICER (Name): Dr. Otim


CONTRACTS COMMITTEE MEMBERS (Names):

            1.   Dr. Charles Engenye   Chairperson
            2.   Mr. Tom Ogwal         Secretary
            3.   Mr. Acellam Collin    Member (Then RSA Gulu but now transferred to Soroti)
            4.   Sr. Ocitti Florence   Member
            5.   Mr. Odongmon Lalim     Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

            1. Mr. Bithum Michael    APO




                                                                                              219
COMPLIANCE AREA                  SCORE/      FINDINGS
                                 RATING
Procurement Structures                6/10       All CC members were approved by the ST
                                                 to treasury as required by PPDA Reg 45 (3).
                                     60%         The CC members did not sign the Code of
                                                 Ethical conduct as and when they met.
                                                 The contracts committee meetings were
                                                 irregular(with the latest notice of meeting
                                                 being April 8,2008-though minutes of the
                                                 same could not be traced)
                                                 There were no CC meeting attendance
                                                 forms signed
Procurement Planning                  3/10       The Entity had not submitted the
                                                 Procurement Plan to the Authority. The one
                                     30%         that the entity purported to use was neither
                                                 approved nor comprehensive enough!
                                                 There is no usage of framework contracts of
                                                 repetitively procured items.
Solicitation   and     bidding        6/10   The entity did not use SBDs in its solicitations
procedures                                   as required by PPDA. In most cases details of
                                     60%



                                                                                                220
                                                     the required items/services were communicated
                                                     only through the LPO
Evaluation procedures                 5/10           Most files reviewed lacked evaluation reports.
                                                     Where they existed, such reports were found
                                      50%            lying in unrelated procurement files though
                                                     evaluation procedures would have been
                                                     followed.
Contract placement,      award        6/10           Copies of LPOs were found on files while others
and management                                       were still in the LPO books. No records on
                                      60%            contract management on files reviewed were
                                                     evident.
Reporting                              1/6           The entity was not update in terms of Monthly
                                                     reports to the Authority
                                      17%

Performance      of   Contracts        3/8           There is no use of forms for meetings(PP Form
Committee                             38%            210) and record of contracts committee decision

Record Keeping                         2/8           Procurement files exist but with incomplete
                                                     records. Nonetheless, a file for contracts
                                      25%            committee meetings exists


Total Score and                       44%            MODERATELY SATISFACTORY
Overall Rating of PDE




RECOMMENDATIONS

   1. The Accounting officer should ensure the membership of the CC is full following the transfer of
       Mr. Acellam Collin-RSA /Member to Soroti.
   2. Members should sign the Code of Ethical conduct as and when they met and the record of
       attendance.
   3. The Entity should prepare and submit the procurement and disposal plan to the Authority
   4. Framework contracts for repetitively procured items should be adopted in the entity
   5. The Entity should contact the Authority for the SBDs and intensify their usage as required by
       PPDA
   6. An evaluation report should be an integral part of the procurement file
   7. Copies of signed contracts should be kept on the procurement file
   8. The Entity should keep all correspondences with providers.
   9. The Entity should compile and submit all pending procurement monthly reports
   10. Members should always sign the code of ethical conduct
   11. CC should consistently use forms provided by PPDA for conduct of meetings and record of
       contracts committee decision
   12. All records pertaining to a given procurement should be put on the respective files




                                                                                                       221
NAME OF PDE: Masaka Referral Hospital


DATE OF ASSESSMENT: 25th – 26th June 2008


MANDATE: Offer health services to the population.


LEGAL/INSTITUTIONAL STATUS: Referral Hospital


BUDGET (GOU/DONORS): Releases from Central Government. Estimated budget for FY 2007/2008
                     was 2.264b/=.


SIZE OF PDE: 200 Staff


ACCOUNTING OFFICER: Dr. Lule Joseph


CONTRACTS COMMITTEE MEMBERS (Names):

           1.   Dr. Banura Patrick           Head/Community Medicine    Chairperson
           2.   Dr. Musitwa J Herman         Head/Surgery               Member
           3.   Ms. Kavuma Barbara           Resident state Attorney    Member
           4.   Sr. Mulindwa Sarah           Senior Nursing Officer     Member
           5.   Mr. Duhirwe Boniventure      Medical Social Worker      Secretary

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

           1. Mr. Musinguzi Godfrey                 APO and Head/ PDU




                                                                                      222
  COMPLIANCE AREA        SCORE /                             FINDINGS
                         RATING

Procurement Structures    8/10     • The Accounting Officer is in place and has established the
                                     Procurement and Disposal Unit
                          80%      • Contracts Committee was nominated in April 2008 and approved
                                     by PS/ST on 10th April 2008.
                                   • The Head PDU assumed duty in January 2008. Prior to this, there
                                     was no Contracts Committee in place and the Accounting Officer
                                     was responsible for supervision of the procurements. The Head of
                                     PDU has attended most procurement trainings and he is a holder of
                                     CIPS.
                                   • Members of the Contracts Committee have attended procurement
                                     trainings conducted by PPDA.
                                   • The user departments initiate procurements but make no use of PP
                                     Form 20.
                                   • Information as to whether the Internal Auditor has audited the
                                     procurement and disposal processes was not availed.

Procurement Planning      6/10     • Procurement plan for FY 07/08 is in place but not prepared in
                                     accordance with the PPDA Format.
                          60%      • Commencement on the preparation of the assets register had been
                                     started but was still incomplete.
                                   • There are no departmental procurement or disposal plans.
                                   • The Authority queried the procurement plan but to date the Entity



                                                                                                 223
  COMPLIANCE AREA              SCORE /                               FINDINGS
                               RATING

                                           had not responded to the queries raised.
                                         • The Entity has a pre-qualified list of providers in place though
                                           there are inadequate providers on some categories for works,
                                           supplies and services.
                                         • The Entity is faced with challenges of quantifying items of medical
                                           drugs in the plan.
                                         • Framework          contracts    are      used      for     cleaning
                                           compound/wards/laundry services, supply of raw food stuff and
                                           firewood.

Solicitation   and   Bidding    8/10     • Records of issue of solicitation documents and solicitation
procedures                                 documents are kept on the files
                                80%      • Records of bid submission and opening seen on files
                                         • Minimum bidding periods observed in the cases sampled
                                         • Most of the methods used are appropriate to the threshold provided
                                           for under the PPDA Guidelines.
                                         • Some of the copies of the solicitation documents issued and bids
                                           received availed.

Evaluation procedures           0/10     • Most of the cases sampled were in the period when there was no
                                           Contracts Committee in place and hence there was no evaluation
                                 0%        committee minutes and evaluation reports seen.
                                         • Records of Acceptance of Code of Ethical Conduct for EC
                                           members not seen on the files.
                                         • Evidence of approval of the members of the Evaluations
                                           Committee by the Contracts Committee not availed,
                                         • Appropriate evaluation methodology could not be ascertained as
                                           there were no records of evaluation reports.

Contract placement, award       4/10     • Entity does not post the notices of the best evaluated bidder and the
and management                             notice of contract award on the PPDA website.
                                40%      • Contract documents were not on the individual procurement files.
                                         • There are records of supplier appraisal and performance availed by
                                           the District Engineer as a contract manager for repair works carried
                                           out in November and December 2007.
                                         • Some Goods Received notes were seen on file.
                                         • No evidence that the unsuccessful bidders are notified in writing
                                         • There was little evidence that the User Department is involved in
                                           certifying payment.

Reporting                        3/6     • Entity is not up to date in the monthly procurement and disposal
                                           reporting. From May 2007, the entity stopped submitting monthly
                                50%        returns to date. There are outstanding reports for the period August
                                           to 2007 June 2008.
                                         • Entity uses the standard format in the monthly reporting
                                         • Entity responds to queries raised by the Authority on the monthly
                                           reports.




                                                                                                           224
  COMPLIANCE AREA          SCORE /                               FINDINGS
                           RATING

Performance of Contracts      3/8      • Most of the Contracts Committee minutes were not available on the
Committee                                file since there was no Committee in place. Some records were
                             38%         seen after the approval of the current Contracts Committee.
                                       • Record of Acceptance of Code of Ethical Conduct for CC members
                                         not seen on files.
Record Keeping                3/8      • Record/filling system needs a lot of improvement.
                                       • Individual procurements lack procurement reference numbers
                             38%            assigned to them
                                       • The Entity does not adhere to the format of assigning
                                            procurement reference numbers as provided under the PPDA
                                            Guidelines.


Total Score and              49%                     MODERATELY SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS

   1. The Entity should always respond to queries from the Authority.
   2. The Entity should ensure that the departmental plans are approved by the Heads of Departments
      and aggregated within the procurement and disposal plan
   3. Entity is advised to ensure that each procurement file contains all the requirements of the law.
   4. Entity should adhere to the timely monthly procurement and disposal reporting in accordance
      with the PPDA Act and Regulations.
   5. Records of Acceptance of Code of Ethical Conduct for Contracts Committee members should be
      signed at each meeting and kept by the Secretary.
   6. Entity should put improve the record keeping system by ensuring that individual procurements
      have separate procurement files




                                                                                                     225
NAME OF PDE: Mbale Referral Hospital


DATE OF ASSESSMENT: 1st -2nd July 2008


MANDATE: To provide quality health service for Eastern Region


LEGAL/INSTITUTIONAL STATUS: Referral Hospital


BUDGET (GOU/DONORS): Releases from Central Government


SIZE OF PDE: 305 staff


ACCOUNTING OFFICER: Mr. Stephen Ouma


CONTRACTS COMMITTEE MEMBERS (Names):

                1.   Dr.Masaba J.P.M ,Senior Const Physican chairman
                2.   Dr.Wakamuke E , Medical Officer Special Grade Member
                3.   Sr. Oolah P, Senior Nursing Officer Member
                4.   Mr. Arinaitwe Lawyer Member
                5.   Mr. Watenyeri Julius , Principal Clinical Officer Secretary CC


PROCUREMENT AND DISPOSAL UNIT MEMBER (Names):

                1. Mr. Watenyeri Julius – Ag. Head PDU/ Secretary CC




                                                                                      226
   COMPLIANCE AREA                SCORE /                        FINDINGS
                                  RATING
Procurement Structures              6/10    •   The CC members are four because one was made the
                                                acting HPU and he is still on the CC as the secretary.
                                   60%      •    Pp form 2o is not filled with the PPDA
                                            •   The user dept doesn’t initiate their procurements on
                                                PP Form 20.
Procurement Planning               7/10     •   There are no departmental procurement plans and the
                                                approved Procurement plan is not followed that has
                                   70%          led to all of emergency
                                            •   Lack of planning
                                            •   Procedures for procurements are not always followed
                                                because the PDE has a lot of emergencies due to poor
                                                planning
Solicitation   and      bidding    2/10     •   No record of issue of Solicitation document
procedures                                  •   Solicitation documents don’t use the standard format
                                   20%          issued by the PPDA
                                            •   No record of bid submission and opening
                                            •   Minimum bidding period is not observed.
Evaluation procedures              5/10     •   Approval of Members of the evaluations committee
                                                was done once in 2006 so it is now constant.
                                   50%      •   Evaluation Methodology used in most cases is not
                                                appropriate because the EC just looks at price.



                                                                                                         227
                                              •   There is no record of Acceptance of Code of Ethical
                                                  Conduct for EC members.
Contract placement, award          3/10       •   There is no record of Notice of Best Evaluated bidder
and management                                    any where.
                                   30%        •   There is no evidence of involvement of user dept in
                                                  certifying payment of Contractual Sum and the final
                                                  payments are not processed within the payment
                                                  schedule specified in the contracts.
                                              •   Unsuccessful bidders are not notified
Reporting                           0/6       •   Monthly reports have never been submitted on time
                                                  and they are not even written down because the the
                                   0%             PDU has no computer.
                                              •   The only one that is available was not formatted as
                                                  required by the law.
Performance     of   Contracts      3/8       •   The CC has not granted any retrospective approval.
Committee                          38%            But they are fours members instead of five because
                                                  one member is the acting HPU and he has not
                                                  resigned from the CC.
                                              •   There is no record of Acceptance of Code of Ethical
                                                  Conduct for CC members present..
                                              •   There is no record of CC decision on a submission on
                                                  PP/DPA Form.
Record Keeping                      6/8       •   Record/filling system exists in the PDU though
                                                  records filed don’t contain all the requirements of the
                                   75%            law.
                                              •   Individual cases have the standard procurement
                                                  reference numbering but they are recorded in a book
                                                  and not on the cases themselves
                                              •   There      is    some      evidence      of   supplier
                                                  appraisal/Performance
Total Score and
Overall Rating of PDE            43%                      MODERATELY SATISFACTORY



   RECOMMENDATIONS

   1.    The HPU should resign being a member of the CC because he is acting as HPU.
   2.    PP Form 221 be filled and filed with PPDA.
   3.    The user depts should start initiating all the procurements on PP form 20
   4.    All user depts. should submitted their departmental plans so as to avoid emergency procurements
         that are costly to the PDE
   5.    Emergency procurements should be minimized
   6.    Aggregation of procurement requirements into procurement plans.
   7.    Solicitation documents should be made using the standard format issued by the PPDA.
   8.    The minimum bidding period should be observed.
   9.    Records of issue of solicitation documents, bid submission and opening should be recorded on PP
         forms.
   10.   Approval of Members of the evaluations committee was done be done every time they are
         carrying out an evaluation for a new procurement.
   11.   Members of the EC should use the appropriate Evaluation Methodology as required by the law.
   12.   The record of Acceptance of Code of Ethical Conduct for EC members should be written down
         and signed as a sign of acceptance.


                                                                                                            228
13. Notice of Best Evaluated bidder and Notice of award should be posted on the PDE notice board
    and PPDA website.
14. The user dept be involved in certifying payment of Contractual Sums and the final payments are
    processed within the payment schedule specified in the contracts.
15. Unsuccessful bidders should be notified in writing
16. The PDE should provide a Computer for the PDU to enable HPU to start writing monthly reports.
17. The acting HPU should hand delegate his memberships CC to some one else.
18. Record of Acceptance of Code of Ethical Conduct for CC members present be made available.
19. All CC decision on a submission on should be made on PP/DPA Form
20. All records filed should contain all the requirements of the law.
21. Standard procurement reference numbering should be recorded on the Individual cases and not
    in a book
22. Evidence of supplier appraisal/Performance should be made strong by disqualifying the suppliers
    that don’t perform.




                                                                                              229
NAME OF PDE: Mulago Referral Hospital


MANDATE: To provide specialized tertiary care, train health workers and conducts research in line with
         the requirements of the Ministry of Health.


LEGAL/INSTITUTIONAL STATUS: Referral Hospital


BUDGET (GOU/DONORS): GOU


SIZE OF PDE: The Hospital has 7 departments with decentralized units– 2500 staff (2300 permanent
             and 200 relief), geographically spread on about 65acres of land.


ACCOUNTING OFFICER (Name): Dr. Edward Ddumba.


CONTRACTS COMMITTEE MEMBERS (Names):

           1.   Dr. Gideon Kikampikaho Senior Consultant, Obst/Gyn, Chairperson
           2.   Dr. W.B.Nganwa, Senior Consultant, dental Surgeon, Member
           3.   Dr. Rita Musoke, Senior Medical Officer, Member
           4.   Ms. Elizabeth Nakkungu, State Attorney, Member
           5.   Mrs. Olivia Kakooza M. Principal Hospital Administrator, Secretary


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

           1. Mr. Crescent Muhumuza Principal Procurement Officer
           2. Ms Rose Lwanga        Senior procurement officer.




                                                                                                  230
  COMPLIANCE           SCORE /                                   FINDINGS
     AREA              RATING

Procurement             7/10     •    Accounting Officer has clear understanding of his roles but the Entity size
Structures                            is overwhelming.
                        70%      •    The PDE is in place but PP Form 221 not filed with PPDA.
                                 •    User departments initiated some of the sampled procurements however,
                                      they are not fully engaged on the initiations of common user items like
                                      drugs and sundries, procurements.
                                 •     Contracts committee members were all approved by the PS/ST.
Procurement             4/10     •    Approved pre-qualification but with one provider for common user items
Planning                              like ICT equipment, Engraving, staff welfare services, medical gases and
                        40%           accessories among others.
                                 •    No departmental procurement plans
                                 •    No approved procurement plan
                                 •    Decentralized assets registries in the different departments/ wards managed
                                      by the supplies department.
Solicitation     and    10/10    •     Poor statement of requirements with most procurement. (Since the Entity
bidding procedures                     is the National referral hospital, it does not consult with other Entities.)
                        100%      •    Use of SBD with standard formats.
                                  •    Appropriate methods used based on thresholds.
                                  •    Minimum bidding periods observed.
                                  •    Record of bidding submission and opening.
Evaluation              10/10    •    Relevant evaluation approvals. i.e committees, methodologies, and reports.
procedures              100%     •    Members accept code of ethical conduct on PP Form 211.




                                                                                                          231
Contract placement,        6/10          •   Entity has notice board but inside the PDU.
award          and                       •   Relevant files have approval from the Solicitor General.
management                 60%           •   Notices not posted on PPDA website.
                                         •   Non successful bidders are never notified.
                                         •   No evidence for execution of contract.
                                         •   Some procurements do not stipulate contractual completion dates.
Reporting                  0/6           •   January- June 2008 Monthly on file but not filled with PPDA –pending
                                             correct reference numbers.
                           0%            •   PP Forms 200,201 and 202 among others not used.
Performance       of       5/8           •   Contracts committee uses internal format of minutes and filed in separate
Contracts Committee                          file.
                          63%            •   There were no records of contracts committee decisions on submissions on
                                             PP/DPA forms in any of the files perused.
                                         •   The Contracts Committee has not granted any retrospective approvals.
Record Keeping             5/8           •   PDU has enough room for the filling cabinets.
                                         •   Records filed do not contain all the requirements of the law.
                          63%            •   Individual files have reference files but not in accordance with the PPDA
                                             guideline.
                                         •   Entity has a supplier appraisal/performance system manned by the supplies
                                             department; however there is no record on file in the PDU.
Aggregate Score and
Compliance Rating         65%                                      SATISFACTORY


     RECOMMENDATIONS

     1. Entity should be trained on the following areas;
       • Powers that may be Delegated within the procurement cycle
       • Role of the user departments in the procurement cycle.
     2. PP Forms 220 and 221 should be filed with the Authority in accordance with sections 27 of the PPDA
         Act and Reg. 57 of the PPDA Regulations.
     3. Entity should enter into frame work contracts for the user items like drugs, sundries, food stuffs and
         equipment.
     4. The departments should prepare procurement plans and submit them to the PDU.
     5. The Entity should prepare a procurement plan and submit a copy of it to the Authority.
     6. The Entity should be trained on development of specifications/ Terms of Reference/Bills of
         quantities.
     7. Entity should consult the Authority or other related Entities at the initial stages of procurement
         especially, the development of specifications.
     8. The notice board should be relocated to the assessment centre.
     9. Entity should be trained on posting notices on the PPDA website.
     10. Entity should seek guidance on contract drafting.
     11. Entity should be trained on contractual management.
     12. Entity should refer to the PPDA Guideline on the use of procurement reference numbers.
     13. The Contracts committee should be trained be trained on the use of relevant forms.
     14. Entity should extract minutes on PP form 210 which should be filed on relevant procurement files.
     15. The Entity should record contracts committee decisions on submissions on PP/DPA forms and file
         them.
     16. The PDU should guide the Entity on the requirements of the PPDA law.
     17. Entity should be trained on the use of procurement reference numbers.
     18. The role of the PDU and the supplies department should be well coordinated.


                                                                                                             232
NAME OF PDE: Soroti Referral Hospital


DATE OF ASSESSMENT: 9th – 10th June 2008


MANDATE: Offer health services to the population.



LEGAL/INSTITUTIONAL STATUS: Regional referral Hospital


BUDGET (GOU/DONORS): Releases from Central Government


SIZE OF PDE: Medium


ACCOUNTING OFFICER: Dr. Bernard Odu


CONTRACTS COMMITTEE MEMBERS (Names):

                                 1. Dr. Namwoyo           Chairperson
                                 2. Mr. David Obol        Secretary

N.B    The other 3 members of the Contracts retired from Public Service

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                 1. Mr. Silas Oluka       Procurement Assistant (intern)




                                                                                           233
  COMPLIANCE AREA              SCORE /                             FINDINGS
                               RATING

Procurement Structures          4/10     • The Accounting Officer is in place but has not established the
                                           Procurement and Disposal Unit
                                40%      • There are currently two members comprising the Contracts
                                           Committee and are approved by PS/ST. The Committee lacks the
                                           three members to be constituted.
                                         • The user departments initiate procurements but make no use of PP
                                           Form 20.
                                         • The PDU is not established and is manned by a procurement intern.
                                         • Information as to whether the Internal Auditor has audited the
                                           procurement and disposal processes was not availed.
Procurement Planning            4/10     • Entity has no approved procurement and disposal plan
                                         • Entity has a pre-qualified list of providers
                                40%      • There are no departmental plans approved by the Heads of
                                           Departments
                                         • Assets Register record not availed at the time of the compliance
                                         • Records for the use of framework contracts not seen
Solicitation   and   Bidding    3/10     • Records of issue of solicitation documents and solicitation
procedures                                 documents not kept on the files,
                                30%      • Records of bid submission and opening not available
                                         • Minimum bidding periods not observed in the cases sampled
                                         • Most of the methods used are not appropriate to the threshold



                                                                                                       234
  COMPLIANCE AREA           SCORE /                                 FINDINGS
                            RATING

                                          provided for under the PPDA Guidelines. The Entity uses a lot of
                                          emergency procurements.
                                      •   Some of the copies of the solicitation documents issued and bids
                                          received not availed.
Evaluation procedures        3/10     •   Some evaluation committee minutes and evaluation report availed.
                                      •   Records of Acceptance of Code of Ethical Conduct for EC
                             30%          members not seen on the files.
                                      •   Evidence of approval of the members of the Evaluations
                                          Committee by the Contracts Committee not availed,
                                      •   Appropriate evaluation methodology could not be ascertained as
                                          there were no records of evaluation reports.
Contract placement, award    3/10     •   Entity does not post the notices of the best evaluated bidder and the
and management                            notice of contract award on the PPDA website.
                             30%      •   Contract documents were not on the individual procurement files.
                                      •   No evidence that the contracts sampled were executed within the
                                          contractual period although there were some delays in payment.
                                      •   No evidence that the unsuccessful bidders are notified in writing
                                      •   There was little evidence that the User Department is involved in
                                          certifying payment.
Reporting                     3/6     •   Entity is not up to date in the monthly procurement and disposal
                                          reporting.
                             50%      •   Entity uses the standard format in the monthly reporting
                                      •   Entity responds to queries raised by the Authority on the monthly
                                          reports.
Performance of Contracts      4/8     •   Some of the Contracts Committee minutes were not available on
Committee                                 the file.
                             50%      •   From the sampled procurement files, the Contracts Committee had
                                          granted any retrospective approvals.
                                      •   Record of Acceptance of Code of Ethical Conduct for CC members
                                          not seen on files.
                                      •   No records of supplier appraisal and performance availed.
Record Keeping                2/8     •     Record/filling system needs a lot of improvement.
                                      •     PDU lacks adequate storage facilities
                             25%      •     Individual procurements lack procurement reference numbers
                                            assigned to them
                                      •     The Entity does not adhere to the format of assigning
                                            procurement reference numbers as provided under the PPDA
                                            Guidelines.

Total Score and              36%                                UNSATISFACTORY
Overall Rating of PDE

RECOMMENDATIONS

   1. The Accounting office should follow up the approval of the nominated Contracts Committee
      members by the PS/ST
   2. The Entity should establish an adequately staffed PDU
   3. Entity should prepare a procurement and disposal plan and submit it to the Authority.




                                                                                                          235
4. The Entity should ensure that the departmental plans are approved by the Heads of Departments
   and aggregated within the procurement and disposal plan
5. Entity is advised to ensure that each procurement file contains all the requirements of the law.
6. Entity should adhere to the timely monthly procurement and disposal reporting in accordance
   with the PPDA Act and Regulations.
7. Records of Acceptance of Code of Ethical Conduct for Contracts Committee members should be
   signed at each meeting and kept by the Secretary.
8. Entity should put improve the record keeping system by ensuring adequate storage facilities and
   that individual procurements have separate procurement files




                                                                                               236
3.1.7   Training Institutions


        NAME OF PDE: Gulu University


        DATE OF ASSESSMENT: 23rd – 24th June 2008


        MANDATE: Provide quality tertiary level education


        LEGAL/INSTITUTIONAL STATUS: A statutory body established under the University and Other
                                    Tertiary Institutions Act No. 7 of 2001


        BUDGET (GOU/DONORS): Government of Uganda, Internally Generated and Donors


        SIZE OF PDE: 287 Staff


        ACCOUNTING OFFICER (Name): Mr. V. M. Okoth-Ogola


        CONTRACTS COMMITTEE MEMBERS (Names):

                                                1.   Prof. Jesper Ogwal-Okeng   Chairman
                                                2.   M/S Christine Oryema       Member
                                                3.   Mr. Stephen Odama          Secretary
                                                4.   Mr. Gilbert Uwonda         Member
                                                5.   Ms. Judith Oroma           Member


        PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                                1. Mr. Adam Ojera Ogora         Head PDU
                                                2. Mr. Francis Nyeko            Assistant PO




                                                                                               237
     COMPLIANCE AREA               SCORE / RATING                FINDINGS


Procurement Structures                  6/10        •   No record of PS/ST approval.
                                                    •   Current CC nominated in September
                                        60%             2004.
Procurement                             10/10       •   All Records on file
Planning
                                       100%
Solicitation   and       bidding        8/10        •   No record of issue and receipt of most
procedures                                              bids but other requirements here were on
                                        80%             file.
Evaluation procedures                   9/10        •   No record of evaluation minutes on file
                                                        but all other requirements were on file.
                                        90%
Contract placement, award and           4/10        •   No record of SG approval of contract
management                                              above 50 Million
                                        40%         •   Minimum bidding period of some
                                                        contracts ignored
Reporting                                5/6        •   Procurements out of imprest not reported
                                                    •   Some reports not submitted on time
                                        83%         •   No record that reports are received by
                                                        PPDA


                                                                                                   238
Performance      of   Contracts          4/8              •   No record of signed PP Form 211
Committee                                                 •   CC has been granting retrospective
                                        505                   approvals for some procurements.
Record Keeping                          8/8               •   Record available, but scattered.
                                                          •   The Entity does not appraise its suppliers.
                                       100%
Aggregate Score and
Compliance Rating of PDE                75%                         SATISFACTORY




 RECOMMENDATIONS:

     1. The Accounting Officer should ensure that a Contracts Committee is established in accordance
         with the PPDA Act and Regulations. expedite the CC membership should urgently be put in order
     2. The Accounting Officer should write to the Authority requesting for training for the procurement
         structures of the Entity.
     3. The files should have records of bid opening and bid submission.
     4. The secretary to the evaluation committee should always prepare evaluation minutes to evidence
         what transpired during the meetings and have them filed.
     5. There should always be evidence on file showing the Contracts Committee/Solicitor General/
         Donors approval on contracts wherever necessary.
     6. The minimum bidding period should always be observed for the different procurements in
         accordance with the law.
     7. The Entity should ensure that monthly procurement reports are submitted to PPDA on time which
         is by the 15th day of each month for the preceding month.
     8. All records filed should contain all the requirements of the law.
     9. The Entity’s filing system should be improved.
     10. The Entity should appraise its suppliers’ performance.




                                                                                                            239
NAME OF PDE: Kyambogo University


DATE OF ASSESSMENT: 18th – 19th June 2008


MANDATE:     Offering Higher Education


LEGAL/INSTITUTIONAL STATUS: Training Institution


BUDGET (GOU/DONORS): GOU 12 Billion, Income generation 5.5 Billion


SIZE OF PDE: 1000 Staff. 1 Campus


ACCOUNTING OFFICER (Name): Mr Edward Kasolo Kimuli


CONTRACTS COMMITTEE MEMBERS (Names):

                                         1.   Wanyama Aaron          Chairman
                                         2.   Zakumumpa Ronald       Secretary
                                         3.   Kato Habib             Member
                                         4.   Musisa David           Member
                                         5.   Okeny Gabriel          Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                         1.      Mr. Mugisha Steven PO




                                                                                 240
     COMPLIANCE AREA               SCORE / RATING                FINDINGS


Procurement Structures                  8/10        •   2 positions in the PDU are vacant
                                                    •   The contracts committee is fully
                                        80%             established.
Procurement                             8/10        •   No asset register and disposal plan was
Planning                                                availed but other requirements here
                                        80%             under were on file.
Solicitation   and       bidding        8/10        •   Partial evidence on use of solicitation
procedures                                              documents but other than that, all other
                                        80%             requirements hereunder were all on
                                                        file.
Evaluation procedures                   10/10       •   Satisfactory

                                        100%
Contract placement, award and            7/10       •   No evidence of notice to unsuccessful
management                                              bidders
                                        70%         •   Notices not on PPDA website
Reporting                               5/06        •   Monthly reports submitted to April
                                                        2008. May is outstanding.
                                        83%         •   Samples of reports reviewed indicate



                                                                                                   241
                                                                   that the standard formats are used.


Performance      of   Contracts            8/08                •   Satisfactory
Committee
                                           100%
Record Keeping                              8/08               •   Satisfactory

                                           100%
Total Score of PDE and
Compliance Rating                          86%                     HIGHLY SATISFACTORY



 RECOMMENDATIONS:

 1. There is urgent need to fill the 2 vacant positions of SPO and PO considering that the entity has 40
    user departments
 2. All the entity activities are centralized in the PDU. There is need for delegation of some functions e.g.
    micro procurements to the 40 user departments.
 3. The unsuccessful bidders should be notified in writing as required by the law.
 4. Notices of contract award should be posted on to the PPDA website for the statutory display period.




                                                                                                         242
NAME OF PDE: Law Development Centre


DATE OF ASSESSMENT: 31st March – 1st April 2008


MANDATE: To provide legal education to Lawyers and non-lawyers, undertake research in topical legal
         issues, contribute to legal reforms, produce legal publications, teaching material and law
         reports and also provide community legal services


LEGAL/INSTITUTIONAL STATUS: LDC is a statutory body established by the Law Development
                             Centre Act, Cap 132. The entity is self-accounting

BUDGET (GOU/DONORS): 23% Government of Uganda and 77% internally generated with 30% of
                     the total budget spent on procurement. The internally generated funds
                     include: - student fees, applications, certificate and verifications fees,
                     hire of the Binaisa Gardens, Bookshop, canteen, among others.


SIZE OF PDE: 180 members of staff with 10 user departments.


ACCOUNTING OFFICER (Name): Mr. Elijah Wante


CONTRACTS COMMITTEE MEMBERS (Names):

                                1.   Mr. James Nangwala       Chairman, Contracts Committee
                                2.   Mrs. Joyce Werikhe       Member, Contracts Committee
                                3.   Mrs. Florence Nakachwa   Secretary, Contracts Committee
                                4.   Mrs. Joy Badebye         Member, Contracts Committee
                                5.   Mr. Peter Nkuruziza      Member, Contracts Committee


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                1.    Mr. Daniel Onyango             Head PDU
                                2.    Mr. Geofry Nyanzi              Procurement Assistant
                                3.    Mr. Walter Keuber              Procurement Assistant




                                                                                               243
 COMPLIANCE AREA SCORE / RATING                                FINDINGS


Procurement Structures   8/10     •   The Accounting Officer has a clear understanding of his role in the
                                      procurement cycle.
                         80%      •   The CC members are five (5) approved by the PS/ST.
                                  •   Has an established PDU, however PP Form 221 is not filed with PPDA.
                                  •   User departments initiate some procurements. The stores initiate
                                      common user items like stationery on behalf of the printery, Continue
                                      Legal Education and Bar Course departments.
                                  •   The Internal Auditor carries out post audits of the procurement process,
                                      usually verifies deliveries and signs on LPOs. She also verifies car
                                      repairs.
Procurement              5/10     •   The Entity has pre-qualified list of providers for the period 2006/7 –
Planning                              2008/09 for most of the services the Entity may require, save for fuel.
                         50%          The list was approved by the Contracts Committee on July 13th 2007.
                                  •   There are no departmental procurement plans.
                                  •   Entity does not have an approved procurement plan.
                                  •   Entity has an up to date assets register
                                  •   Entity has formal framework contracts for the supply the supply of fuel
                                      with Shell Old Kampala and sanitary services.




                                                                                                   244
Solicitation and bidding       8/10           •   Uses SBDs issued by PPDA.
procedures                                    •   Uses methods appropriate to thresholds and circumstances.
                               80%            •    Minimum bidding periods are observed.
                                              •   Entity has combined records of issue of solicitation document and bid
                                                  submission in an account book.
Evaluation procedures          8/10           •   The Contracts Committee approves the evaluation committees and
                                                  reports.
                               80%            •   There was record of acceptance of Code of Ethical Conduct on all the
                                                  sampled cases.
                                              •   Some sampled cases had no evaluation records like venues for
                                                  professional and farewell diners.
Contract    placement,         5/10           •   Notices are posted on PDE notice board for the statutory display period
award and management                              but never on the PPDA website.
                               50%            •   With the exception of micro procurement, the unsuccessful bidders are
                                                  never notified in writing of the award and rejection of their bids.
                                              •   Since the Entity is under the Ministry of Justice and Constitutional
                                                  Affairs, and members of Contracts Committee are of the legal fraternity,
                                                  the Entity does not seek Solicitor General’s approval for contracts above
                                                  50m.
                                              •   The user departments are involved in the payment process, they always
                                                  sign on verify on the invoices but not LPOs.

Reporting                       6/6           •   Entity was up to date on submission of monthly report on procurement
                                                  and disposal on time save for fuel and lubricants all procurements are
                              100%                included in the monthly reports.
Performance              of    4/8            •   No record of Contracts Committee decision on a submission on PP/DPA
Contracts Committee                               form.
                               50%            •   Detailed record of minutes on all sampled cases but not on PP Form 210.

Record Keeping                  5/8           •   The Entity keeps records in separate files and lacks record/filling
                                                  systems in PDU.
                               63%            •   Some sampled cases did not have records required by law.
                                              •   All the sampled cases had standard reference numbers.
                                              •   Entity has no record of supplier performance.

Total Score of PDE and
Compliance Rating              68%.                                       SATISFACTORY



       RECOMMENDATIONS:

            1. Departments should initiate all procurements on PP Form 20 in accordance with Regulation 104
               of the PPDA Regulations.
            2. The Entity should prepare procurement plan and submit a copy of it to the Authority in
               accordance with section 58 of the PPDA Act.
            3. Departments should prepare departmental procurement plans as under section 60 of the PPDA
               Act.
            4. The Entity should use PPDA Standard Forms issued by PPDA.
            5. The Contracts Committee should sign the ethical code of conduct prior to each Contracts
               Committee meeting.




                                                                                                                245
6. The PDU should ensure that notices are posted on the PPDA website for the statutory display
    period.
7. The unsuccessful bidders should always be notified in writing as provided for under Regulation
    225(4) of the PPDA Regulations.
8. The user departments should be involved in contract management by certifying the payments of
    the contractual sums.
9. The Entity’s contracts committee decisions on submissions should be recorded on PP/DPA Forms
    as required by Regulation 51(8), and 53(2) (c) of the PPDA Regulations.
10. The contracts committee minutes should be recorded on the appropriate forms.
11. All the records filed should always have all the requirements of the law.
12. The Entity should appraise the performance of its suppliers.




                                                                                             246
NAME OF PDE: Makerere Business School


DATE OF ASSESSMENT: 10th & 11th July 2008


MANDATE: Education & Training


LEGAL/INSTITUTIONAL STATUS: Public Institution


BUDGET (GOU/DONORS): GOU & Internally Generated Funds


ACCOUNTING OFFICER (Name): Mr. Wasswa Balunyo


CONTRACTS COMMITTEE MEMBERS (Names):

                                  1.    Mr. Semukono Freddie    Chairperson
                                  2.    Mr. Akampumuza James    Member
                                  3.    Ms. Kateega Juliet      Member
                                  4.    Dr. Bakunda Geofrey     Member



PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                  1.    Ms. Senoga K. Cindy     Head PDU
                                  2.    Mr. Mwesigwa John       Admn. Assistant
                                  3.    Ms.. Namaganda Shammy   Admn. Assistant
                                  4.    Mr. Dungu Kassim        Supervisor
                                  5.    Ms. Aguti Shelly        Office Assistant




                                                                                   247
    COMPLIANCE AREA                SCORE / RATING
                                                                           FINDINGS

Procurement Structures                  9/10        •   4 CC members were approved by PSST. The other is
                                                        yet to be nominated and sent for approval to the PS/ST.
                                        90%         •   PP Forms 220 and 221not filed by the Authority.
Procurement                             9/10        •   The Entity has an approved list of pre-qualified
Planning                                                providers and Departmental Procurement plans.
                                        90%         •   The Entity also uses Frame work contracts for supplies
                                                        such as stationery.
Solicitation   and       bidding        4/10        •   Entity did not have solicitation documents for RFQ on
procedures                                              most of the files.
                                        40%         •   The Entity also frequently uses RFQ for most
                                                        procurements and as such, there’s evidence of splitting
                                                        of requirements.
Evaluation procedures                   5/10        •   On some files, there was evidence to the effect that the
                                                        Evaluation Committee members are approved by the
                                        50%             CC though there was no evidence that the EC members
                                                        sign the Code of Ethical Conduct on most files.




                                                                                                       248
Contract placement, award and          7/10            •   There were no notices to the best evaluated bidder on
management                                                 file but they are put on the notice board and the
                                      70%                  unsuccessful bidder notified but not in writing..
Reporting                              5/6             •   Monthly reports are not submitted on time.
                                                       •   However, the Entity has reported till May 2008.
                                      83%              •   A sample of the reports reviewed indicate that there is
                                                           use Standard Formats and all PP Forms 200, 201 & 202
                                                           are filled and CC Minutes attached
Performance      of   Contracts        3/8             •   Minutes are in place though not recorded on the
Committee                                                  appropriate forms.
                                      38%              •   There were no records of acceptance of Code of Ethical
                                                           Conduct in Business by the CC on most files.
Record Keeping                         4/8             •   There exists a Record/filing system in the PDU
                                                           although the filing system is not standard.
                                      50%              •   Various procurements are kept in a single file and most
                                                           of the documentation is not complete. There were no
                                                           records of the supplier appraisal performance.
Aggregate Score and
Compliance Rating                     65%                                 SATISFACTORY




 RECOMMENDATIONS

     1. The Entity was advised to immediately nominate a name of the fifth member and send it to PS/ST
         for approval.
     2. The Entity should file PPF Forms 220 and 221 with the Authority.
     3. The Entity should keep a copy of the solicitation document used for the procurement process on
         file.
     4. The EC members should always sign the code of Ethical Conduct in business and the CC should
         always approve the composition of the Evaluation Committee.
     5. The best evaluated bidder and the unsuccessful bidder should always be notified in writing.
     6. The Entity should ensure that monthly reports are submitted by the 15th day of each month for the
         preceding month and that all PP Forms are filled and CC minutes attached to reports as this aids
         the Authority as it reviews the reports.
     7. The CC Minutes should always be recorded on the appropriate forms .
     8. And the Entity should keep records of CC decisions on a submission on PP/DPA forms on file.
     9. The CC should always sign the acceptance of Code of Ethical Conduct in Business.
     10. The Entity should ensure that each procurement process has its own file and that the
         documentation is complete.
     11. The Entity should also appraise the performance of its suppliers to ensure quality services and
         supplies.




                                                                                                         249
NAME OF PDE: Management Training and Advisory Centre


DATE OF ASSEMENT: 8th – 9thJuly 2008


MANDATE: To train and advise in management skills


LEGAL/INSTITUTIONAL STATUS: Training Institution


BUDGET (GOU/DONORS): GOU AND Donors



SIZE OF PDE: Small


ACCOUNTING OFFICER Dr. N. Tumwesigye


CONTRACTS COMMITTEE MEMBERS (Names):

                                               1.   Mr. Francis Mukala
                                               2.   Mr. J.O. Okiru
                                               3.   Mr. Richard Kagwa
                                               4.   Ms. Nakato Aisha
                                               5.   Ms. Mugarura Dorris

PROCUREMENT AND DISPOSAL UNIT MEMBERS:
There is no functional PDU and the work is ‘done’ by the Administration Officer




                                                                                  250
     COMPLIANCE AREA               SCORE / RATING                FINDINGS


Procurement Structures                  4/10        •   There is no procurement and disposal
                                                        Unit and the Administration officer
                                        40%             who by the time of my check had
                                                        resigned his job does the procurement
                                                        work.
                                                    •   The contract committee is in place but
                                                        is generally not knowledgeable in
                                                        procurement rules and procedures
Procurement                             0/10        •   There was no procurement plan in
Planning                                                place
                                        0%

Solicitation   and       bidding        0/10        •   The     solicitation    and     bidding
procedures                                              procedures for the little procurement
                                        0%              done are not followed. Even companies
                                                        which are not pre-qualified do supply
                                                        goods to the entity
Evaluation procedures                   3/10        •   There is no trace of evaluation as
                                                        evidence from the few available
                                        30%             records suggests that evaluation is done
                                                        by the contracts committee




                                                                                                   251
Contract placement, award and            3/10               •   There is no evidence on files to suggest
management                                                      its procedural application
                                        30%
Reporting                                0/6                •   The monthly reports had never been
                                                                submitted and the immediate answer to
                                         0%                     this question was that they do procure
                                                                only small items

Performance      of   Contracts          2/8                •   The performance of the committee is
Committee                                                       below the mark. However, the time I
                                        25%                     spend with them explaining the new
                                                                procurement procedures, all had an
                                                                attitude to learn
Record Keeping                           2/8                •   There are no procurement files and the
                                                                available documents are scattered in
                                        25%                     different files which makes it uneasy to
                                                                trace them
Total Score and Overall Rating
of PDE                                  19%                     HIGHLY UNSATISFACTORY




 RECOMMENDATIONS:

     1. Procurement and disposal unit needs to be established and a professional person appointed to be
        in charge.
     2. The entity should submit monthly reports for all procurements and disposal activities.
     3. The entity should prepare annual procurement plan in accordance with the law and submit a copy
        to PPDA as per regulations in addition to the required reports
     4. The entity needs to prepare a procurement plan and submit it to PPDA
     5. The records systems in the PDU needs to be put in place.
     6. There is a need for training all stakeholders abut the procurement procedures

  NB. Because of the unprofessional manner in which procurement is managed, there was no individual
 procurement file availed for review.




                                                                                                           252
NAME OF PDE: Uganda Management Institute


DATE OF ASSESSMENT: 12th – 13th June 2008


MANDATE: To Provide Higher Education in Management Disciplines


LEGAL/INSTITUTIONAL STATUS: Government Institution of Higher Learning.


BUDGET (GOU/DONORS): Receives only 3% of its budget from GOU, the rest is generated by the
                     PDE through Tuition Fees paid by students.


SIZE OF PDE: 136 Members of Staff both academic and administrative.


ACCOUNTING OFFICER (Name): Dr. John Kiyaga Nsubuga


CONTRACTS COMMITTEE MEMBERS (Names)

                                      1.   Dr. Mary Muhenga             Chairman
                                      2.   Mr. Patrick Madaya           Secretary
                                      3.   Mr. Sylvester Kugonza        Member
                                      4.   Mr. Benon Baheka             Member
                                      5.   Ms. Mary Nankabirwa          State Attorney


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                      1.    Cissy Birungi          Head PDU
                                      2.    Irene Nakiwala         APO
                                      3.    Sylvia Nangoti         Data Clerk




                                                                                         253
 COMPLIANCE AREA           SCORE/RATING                   FINDINGS

Procurement Structures                    •   The Contracts Committee is well qualified in
                                              matters of procurement.
                                          •   The PDU is fully established with 3 staff.
                               10/10
                                          •   User      departments     initiate  all    the
                                              procurements in the Entity.
                               100%
                                          •   The Internal Auditor audits the procurement
                                              process and disposal, payments and
                                              deliveries.
Procurement Planning           8/10       •   Procurement Plan is in place but following it
                                              is usually made difficult by the scarcity of
                               80%            funds.
                                          •   User Departments do not understand the
                                              procurement process and often require
                                              emergency procurements on items that were
                                              on the procurement plan.
                                          •   The PDE did not use framework contracts for
                                              any of its regular procurements.
                                          •   Payment to suppliers to the PDE is often
                                              delayed and this has resulted in a reluctance
                                              of suppliers to provide good, services and
                                              supplies to the PDE.
Solicitation and Bidding       10/10      •   All requirements hereunder were on file.



                                                                                               254
Procedures
                           100%
Evaluation Procedures             •   The composition of the Evaluation
                                      Committee is approved by the Contracts
                                      committee and so are the reports.
                           8/10
                                  •   The appropriate Evaluation Methodology id
                                      used by the EC but they do not always sign
                           80%
                                      the code of ethical conduct.
                                  •   There were Evaluation reports on files
                                      perused.
Contract Placement,               •   The Best Evaluated bidder is given notice but
Award and Management                  such notice of contract award is not posted on
                                      the PPDA website.
                                  •   The unsuccessful bidder is not given notice
                           4/10       as required by the Law.
                                  •   There was no evidence of execution of
                           40%        contract within the contractual completion
                                      date.
                                  •   The was also no evidence of the involvement
                                      of the user department in certifying payments
                                      of contractual sums.
Reporting                         •   Entity has two outstanding monthly
                           4/6
                                      procurement reports.
                                  •   Reports sampled indicate that the standard
                           67%
                                      format is used.
Performance of Contracts          •   The Contracts Committee sign the code of
Committee                             ethical conduct in business.
                                  •   There were minutes of the CC on file and
                           7/10       where recorded on the appropriate forms.
                                  •   Some of the CC decisions on submissions
                           70%        were on file recorded on the appropriate
                                      forms.
                                  •   The CC has not granted any retrospective
                                      approvals.
Record Keeping                    •   The Entity has a filing system but not all
                                      records filed contain all the requirements of
                           7/8        the law.
                                  •   Individual cases have procurement reference
                           88%        numbers.
                                  •   There were records of supplier appraisals on
                                      files.
Aggregate Compliance
Score and Compliance       79%                SATISFACTORY
Rating




                                                                                       255
RECOMMENDATIONS:

  1. Accounting Officer should ensure adherence to the procurement plan.
  2. Entity should confirm availability of funds prior to commencement of a procurement to avoid
     delayed payments to suppliers.
  3. All records filed should contain all the requirements of the law.
  4. The Entity should urgently submit the outstanding monthly procurement reports.
  5. The PDE should make use of framework contract for commonly procured items.
  6. The unsuccessful bidders should always be notified in writing as required under Regulation
     225(4) of the PPDA Regulations.
  7. The files should have evidence of execution of the contract within the contractual completion
     date. As under Regulation 91(c) and (e),
  8. The user departments should also be involved in contract management like certifying payments of
     the contractual sum.
  9. The Evaluation Committee members are advised to always sign the code of ethical conduct in
     business before going about their business.




                                                                                                256
3.1.8 Councils

     NAME OF PDE: National Council for Children


     DATE OF ASSESSMENT: 22nd May 2008


     MANDATE: To provide a structure and mechanism which would ensure proper coordination, monitoring
              and evaluation of policies and programes relation to the survival and protection of the child
              and other connected matters.


     LEGAL/INSTITUTIONAL STATUS: Statutory Body.


     BUDGET (GOU/DONORS): Central Government (staff salaries and operations) and Donor funds
                          (projects and programmes).


     SIZE OF PDE: 15 Staff composed of the Headquarters with a total budget of approximately Ug. Shs 784
                   million, of which34% is spent on procurement.


     ACCOUNTING OFFICER (Name): Mrs. Joyce Otim


     ACTING CONTRACTS COMMITTEE MEMBERS: (Names)

                                  1. Mr. Martin Kiiza - Programme Officer, Communication and Advocacy
                                  2. Mr. Joseph Kusiimwa Isoke - Accountant


     PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                  1. Ms. Miliam Musoke Mugwanya – Procurement Officer
                                  2. Ms. Grace Vivian Nabisere - Procurement Officer




                                                                                                       257
  COMPLIANCE AREA        SCORE / FINDINGS
                         RATING

Procurement Structures    5/10     •   CC not in place- Its term expired in September 2007. Its
                                       renewal is pending the inauguration of the Council whose term
                          50%
                                       expired in March 2007 too.
                                   •   PDU is in established, however, PP Form 221 not filed with
                                       PPDA
                                   • The internal Auditor does not audit the procurement and
                                       disposal processes.
Procurement Planning      6/10     Entity has;
                                   • An approved pre-qualified list of providers.
                          60%      • Departmental procurement plans for the operational
                                       procurements.
                                   • No approved procurement plan for the PDE
                                   • An assets register with provisions of assets disposal planning.
                                   • No frame work contracts for the common user items.




                                                                                               258
  COMPLIANCE AREA              SCORE / FINDINGS
                               RATING

Solicitation   and   bidding    4/10      •   No records on issue of solicitation documents.
procedures                                •   Standard Bidding Documents issued by the Authority are not
                                40%           used.
                                          •   Appropriate methods were used for the sampled case.
                                          •   Minimum bidding periods were observed for the sampled case.
                                          •   No records on bid submission and opening.
Evaluation procedures           9/10      •   CC approved the EC.
                                          •   Financial evaluation was conducted before the technical
                                90%           evaluation contrary to Reg. 197 of the PPDA Regulations 70
                                              of 2003.
                                          •   Record of evaluation report was on file.
Contract placement, award       2/10      •   Entity does not post BEB notices neither on PDE Notice board
and management                                nor on PPDA website.
                                20%       •   Unsuccessful bidders are never notified in writing.
                                          •   There was no CC approval of the sampled case.
Reporting                        6/6      •   Entity had submitted all the monthly reports.

                                100%
Performance of Contracts         5/8      •   Entity does not use PP Form 210 and 211.
Committee
                                63%
Record Keeping                   5/8      •   Entity has no record/ filing system in the PDU.
                                          •   Not all records were filed for the sampled case.
                                63%       •   Entity has no supplier appraisal/performance systems.
Total Score and
Overall Rating of PDE           58 %                    MODERATELY SATISFACTORY




RECOMMENDATIONS

  1. The Entity should solicit for its own shortlist of providers instead of depending on that of the
      Mother Ministry for purposes of attracting suitable service providers.
  2. All the User departments should make and file copies of their departmental procurement and
      disposal plans with the PDU.
  3. The Entity needs training on the modalities of use of framework contracts.
  4. The Entity should make use the SBD issued by the Authority.
  5. The Entity should undertake and document bid submission and opening in the case of macro
      procurements.
  6. Evaluation Committee should be approved by the CC and the approval recorded in its minutes.
  7. Evaluations should use the appropriate methodology as specified in Reg. 168 (2), 172 and 197.
  8. BEB notices should be posted on the PDE procurement notice board and the PPDA website.
  9. Unsuccessful bidders should be informed in writing for all procurements and disposals.
  10. CC should use the relevant PP Forms.
  11. The Entity should establish a filing system to ensure proper record keeping for all
      procurements/disposals conducted.
  12. Entity should establish a supplier appraisal/ performance system.



                                                                                                      259
NAME OF PDE: National Council for Higher Education


DATE OF ASSESSMENT: 17th June 2007


MANDATE: Regulate Tertiary Institutions and Set Standards


LEGAL/INSTITUTIONAL STATUS: Statutory Body / Corporation


BUDGET (GOU/DONORS): Donor Funds and Government funds


SIZE OF PDE: 23 members of staff


ACCOUNTING OFFICER (Name): Prof. Kasozi


CONTRACTS COMMITTEE MEMBERS (Names):

                                            1.   Ms. Penny Birungi      Chairperson
                                            2.   Mr. Arthur Babu Muguzi Secretary
                                            3.   Mr. Bogere Richard      Member
                                            4.   Mr. Osikei Martin       Member
                                            5.   Mr. Okae Patrick        Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):
                               1.   Mike Wanyama PO




                                                                                      260
   COMPLIANCE AREA             SCORE / RATING                   FINDINGS


Procurement Structures              2/10        The Contracts Committee is fully constituted with 5
                                                members.
                                    20%         The Accounting Officer, members of the Contracts
                                                Committee and the PDU staff have not been trained by
                                                PPDA.
                                                PP Form 220 and 221 were not filed with PPDA.
                                                The user department does not initiate procurements.
                                                The Internal Auditor does not audit the procurement
                                                process, payment and deliveries.
Procurement                         0/10        Has no procurement plan.
Planning                                        Departments do not submit departmental procurement
                                    0%          plans.
                                                 No list of pre-qualified providers
                                                It uses it budget to make procurements.
                                                Entity has no Assets Register with a disposal plan.
                                                The Entity does not make use of framework contracts.
Solicitation   and   bidding        1/10        The Entity does not use the Standard Bidding
procedures                                      Documents provided by PPDA.
                                    10%         The Entity has no procurement notice board for posting



                                                                                                261
                                                        procurement notices.
                                                        The Entity does not always comply with the thresholds
                                                        for the various procurement methods.

Evaluation procedures               1/10                There were no evaluation reports on file.
                                                        There were no records of bid submission and bid
                                    10%                 opening on file.
                                                        The Evaluation Committee members do not sign the
                                                        Code of Ethical Conduct.

Contract placement, award           2/10                No evidence of contract management/monitoring
and management                                          mechanism for the procurements reviewed.
                                    20%                 No records of the user department certifying delivery or
                                                        completion of the services before payment is effected.
                                                        The unsuccessful bidders are not notified in any way.
                                                        There were no records of file evidencing notification of
                                                        contract award to the best evaluated bidder.

Reporting                           2/6                 The Entity does not submit reports on time and its
                                                        reporting is not up to date.
                                    33%
Performance   of   Contracts         7/8                The Contracts Committee members do not always sign
Committee                                               the Code of Ethical Conduct in Business.
                                    88%                 There were records of contracts committee decisions on
                                                        submissions on file.
                                                        The Contracts Committee has not granted any
                                                        retrospective approvals.

Record Keeping                      0/8                 There is poor record keeping.
                                                        Records filed do not contain all requirements of the
                                    0%                  law.
                                                        Individual cases do not have standard procurement
                                                        reference numbers.
                                                        There was no record of supplier appraisal/performance.


Aggregate Score and
Compliance Rating of PDE          21 %                                UNSATISFACTORY




 RECOMMENDATIONS

     1. The Accounting Officer, Contracts Committee and PDU staff should all be trained regarding their
        respective roles in the procurement process.
     2. PP Forms 221and 220 should be filed with PPDA.
     3. The Entity should prequalify providers for their supplies and services.
     4. Departments should submit departmental procurement plans.
     5. The PDU should draft a procurement plan for the Entity and submit a copy of it to the Authority.
     6. The Entity should have an Assets Register with a disposal plan.
     7. The Entity should also use framework contracts for frequently procured items.




                                                                                                         262
8. The Entity should endeavor to submit monthly procurement reports to PPDA on time, which is by
    the 15th day of each month for the preceding month.
9. The Entity’s departments should always submit their departmental procurement plans to the PDU.
10. The user department should initiate all procurements.
11. The Entity’s Internal Auditor should audit the procurement processes in the Entity, payments and
    deliveries.
12. The PDU should make a procurement plan and submit a copy of it to the Authority.
13. The Entity should use the Standard Bidding Documents provided by PPDA in order to ensure
    maximum competition.
14. The Entity should put up a procurement notice board for purposes of posting procurement notices
    of the Entity.
15. The Entity should observe the minimum bidding period for the various procurement methods and
    also comply with the thresholds.
16. The Evaluation Committee should always ensure that there are evaluation reports sent to the
    Contracts Committee for approval.
17. The Evaluation Committee should ensure that they sign the Code of Ethical Conduct in Business.
18. The procurement files should have records of bid opening and bid submission.
19. The unsuccessful bidders should always be given notice of the best evaluated bidder.
20. The best evaluated bidder should always be notified and such notice of contract award posted to
    the PPDA website.
21. The Entity should improve its record keeping.




                                                                                               263
NAME OF PDE: National Council for Science &Technology (NCST)


DATE OF ASSESSMENT: 24th June 2008


MANDATE:      To develop and implement strategies for integration of science and technology in the
              national development process.


LEGAL/INSTITUTIONAL STATUS: Council under the Ministry of Finance, Planning and Economic
                             Development.


BUDGET (GOU/DONORS): NCST has a total budget of approximately 19 Billion Uganda Shillings
                     made of funds from the consolidated fund –GOU & IDA funds (World
                     Bank)


SIZE OF PDE: According to annual volume of expenditure on procurements: Procurement budget is
             estimated at 13 Billion Uganda Shillings.


ACCOUNTING OFFICER: Dr. Peter Ndemere


CONTRACTS COMMITTEE MEMBERS: (Names)

                           1. Mr. Ismail Barugahara   - Chairperson
                           2. Ms. Catherine Munabi    - Member
                           3. Mr. Dickson Avutia      - Secretary
                           4. Ms. Wanyama Naomi       - Member
                           5. Ms. Maria Nyagoma       - Member (Nominated)


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                           1. Mr. Anthony Okimat Opolot - Head Procurement Officer.
                           2. Mr. Senyonjo Tom - Assistant Procurement Officer.




                                                                                              264
  COMPLIANCE AREA              SCORE /                           FINDINGS
                               RATING

Procurement Structures          7/10     •   There are procurement structures in place.
                                         •   Contracts committee is approved by the Secretary to the
                                70%          Treasury.
                                         •   No audit reports were seen
Procurement Planning            7/10     •   Existence of approved pre-qualification of providers, however
                                             the list needs updating.
                                70%      •   No evidence of departmental procurement plans was seen
                                             although it was implied with the existence of the consolidated
                                             procurement plan.
                                         •   Record of framework contracts were seen for only newspapers
Solicitation   and   Bidding    9/10     •   Bidding periods for procurements were observed.
procedures                               •   Bidding periods were observed. However a few procurements
                                90%          did not follow the threshold and set procurement methods.
                                         •   Entity uses the right solicitation documents and Record of bid
                                             submission.



                                                                                                      265
  COMPLIANCE AREA           SCORE /                              FINDINGS
                            RATING

Evaluation procedures        10/10       •   The entity has a record of evaluation reports.
                                         •   CC approves the evaluation reports and there is use of
                             100%            appropriate evaluation methodology.
                                         •   EC members are approved by CC.
Contract placement, award    6/10        •   No evidence of involvement of User dept in certifying
and management                               payment of Contractual sum.
                             60%         •   Notice of BEB not seen in all procurements.
Reporting                     6/6        •   Monthly reports are up to date with a few errors in recording.
                                             Standard formats are used.
                             100%
Performance of Contracts      7/8        •   Contracts committee minutes are well prepared.
Committee                                •   PP Form 210 & PP Form 211 were seen.
                             88%         •   There was a record of CC decision on a submission.
                                         •   CC has granted some retrospective approvals.
Record Keeping                4/8        •   No record of Supplier Appraisal/Performance.
                                         •   Procurement Reference numbers are not standardized.
                             50%
                             56/72
Total Score and                                              SATISFACTORY
Overall Rating of PDE        78%


RECOMMENDATIONS

   1. The PDE should ensure monthly reports are accurately prepared with all the necessary
      information. Reference numbers should also be standardized.
   2. The Internal auditor should be incorporated into the procurement process – to certify payments
      and delivery of goods
   3. User departments ought to be involved in contract management to ensure effective execution of
      contracts.
   4. User departments should keep a record of their procurement plans and a copy given to the PDU
      for effective monitoring of the plans
   5. PDE needs to update the ministries pre-qualification list on a regular basis.
   6. Unsuccessful bidders should be notified by the PDE in writing.
   7. Procurement reference numbers for all procurements should follow a standard format in
      accordance with Reg. 104 of the PPDA Regulations.
   8. Supplier appraisal ought to form part and parcel of the procurement process and records kept.




                                                                                                      266
3.1.9   Boards

        NAME OF PDE: Uganda Export Promotion Board


        DATE OF ASSESSMENT: 2nd – 3rd July 2008


        MANDATE: To promote exports from the country.


        LEGAL/INSTITUTIONAL STATUS: Statutory Body


        BUDGET (GOU/DONORS): Releases from Central Government and donor funds.


        SIZE OF PDE: 20 staff spread out within 4 Divisions


        ACCOUNTING OFFICER: Ms. Florence Kata

        CONTRACTS COMMITTEE MEMBERS: (Names)

                     1. Mr. William Babigumira      Director/Management I.S Ag., Chairperson and
                                                    Secretary
                     2. Mr. Birungi George          Trade Promotion Officer/Accountant, Member
                     3. Ms. Harriet Tukamushaba     State Attorney, Member
                     4. Mr. Baguma Mutoro           Trade Promotion Officer, Member
                     5. Mr. Bosco Okelo             Trade Promotion Officer, Member


        PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                     1. Mr. Birungi George   Trade Promotion Officer      Head PDU
                     2. Mr. John Aryon       Administrative Assistant     Member
                     3. Mr. Damiano Bihire   Officer Assistant            Member




                                                                                                   267
  COMPLIANCE AREA              SCORE /                              FINDINGS
                               RATING
Procurement Structures           5/10    • The Accounting Officer is in place and has established the
                                           Procurement and Disposal Unit
                                50%      • Contracts Committee in place and approved by PS/ST.
                                         • The user departments initiate procurements but make no use of PP
                                           Form 20.
                                         • Information as to whether the Internal Auditor has audited the
                                           procurement and disposal processes was not availed.
                                         • No internal audit reports on the procurement and disposal processes
                                           seen.
Procurement Planning            6/10     • Entity has no procurement plan in place.
                                         • The Entity has a pre-qualified list of providers in place though
                                60%        there are inadequate providers on some categories for works,
                                           supplies and services.
                                         • No evidence of use of framework contracts seen.
Solicitation   and   Bidding    10/10    • Records of issue of solicitation documents and solicitation
procedures                                 documents are kept on the files
                                100%     • Records of bid submission and opening seen on files.
                                         • Minimum bidding periods observed in the cases sampled
                                         • Some of the methods used are not appropriate to the threshold and
                                           circumstances as provided for under the PPDA Guidelines. There is
                                           frequent use of direct procurement.
                                         • Some of the copies of the solicitation documents issued and bids
                                           received availed.



                                                                                                         268
  COMPLIANCE AREA           SCORE /                                 FINDINGS
                            RATING
Evaluation procedures         6/10      • Evaluation reports seen on the procurements samples and use the
                                          evaluation methodology in the solicitation documents.
                             60%        • Records of Acceptance of Code of Ethical Conduct for EC
                                          members seen on the files.
                                        • Evidence of nomination by the PDU and approval of the members
                                          of the Evaluations Committee by the Contracts Committee seen.
                                        • Evaluation reports are signed approved by CC.
Contract placement, award     7/10      • Entity does not post the notices of the best evaluated bidder and the
and management                            notice of contract award on the PPDA website.
                             70%        • Contract documents were not on the individual procurement files.
                                        • There are no records of supplier appraisal and performance.
                                        • No evidence that the unsuccessful bidders are notified in writing
                                        • There was no evidence that the User Department is involved in
                                          certifying payment.
Reporting                     4/6       • Entity is not up to date in the monthly procurement and disposal
                                          reporting.
                             67%        • Entity uses the standard format in the monthly reporting
                                        • Entity responds to queries raised by the Authority on the monthly
                                          reports.
                                        • Invoice numbers and dates for some procurement transactions are
                                          not indicated in the reports and contracts Committee minutes are
                                          not submitted with the reports.
                                        • Reports are submitted by the Senior Procurement Officer instead of
                                          the Accounting Officer as required by the PPDA Act.
Performance of Contracts      5/8       • Contracts Committee meets regularly.
Committee                               • Most of the Contracts Committee minutes were available on the
                             63%          file.
                                        • Record of Acceptance of Code of Ethical Conduct for CC members
                                          not signed by the members at each meeting.
Record Keeping                4/8       • The record/filling system is being started in the PDU and needs a
                                             lot of strengthening.
                             50%        • Individual procurements have procurement reference numbers
                                             assigned to them

Total Score and              65%                                SATISFACTORY
Overall Rating of PDE

RECOMMENDATIONS

   1. The Entity should prepare and submit the procurement and disposal plan to the Authority.
   2. Entity should adhere to the timely monthly procurement and disposal reporting in accordance with
   the PPDA Act and Regulations.
   3. Records of Acceptance of Code of Ethical Conduct for Contracts Committee members should be
   signed at each meeting and kept by the Secretary.
   4. The Entity should display notices of the best evaluated bidder and contract award on the PPDA
   Website.
   5. Unsuccessful bidders should be notified in writing and evidence of the notification be put on the
   procurement file.




                                                                                                          269
NAME OF PDE: Uganda National Examinations Board (UNEB)


DATE OF ASSESSMENT: 15th – 16th July 2008


MANDATE:     To conduct national examinations (PLE, UACE, UAC, and UAJT)


LEGAL/INSTITUTIONAL STATUS: Established under the Act of parliament No. 2 of 1983


BUDGET (GOU/DONORS): 28 billion Shs


SIZE OF PDE: 220 Employees


ACCOUNTING OFFICER (Name): Mr. Mathew Bukenya


CONTRACTS COMMITTEE MEMBERS (Names):

                                      1.   Mr. Chrysostom Kibeti -     Chairperson
                                      2.   Mr. S. Kisasa         -     Member
                                      3.   Mr. William Kabanza -       Secretary
                                      4.   Mrs. J. Kiberu        -     Member
                                      5.   Ms. Harriet Tukamushaba -   Lawyer


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                      1. Mr. Naboth Katongole - Head PDU




                                                                                     270
COMPLIANCE AREA            SCORE/     FINDINGS
                           RATING
Procurement Structures        7/10    •   All CC members were approved by the ST to
                                          Treasury as required by PPDA Reg 45 (3).
                              70%
                                      •   The internal auditor audits the procurement and
                                          disposal process
                                      •   There was no evidence of PP form 221 filled
                                          with PPDA on file
Procurement Planning          2/10    •   The Entity had no proposed procurement plan
                                      •   There were no departmental procurement plans
                              20%
                                      •   An assets register exists
                                      •   There is no usage of framework contracts of
                                          repetitively procured items.
Solicitation and bidding      10/10   •   There was records of issue of solicitation
procedures                                documents, bid submission and opening
                              100%
                                      •   The entity uses solicitation documents in the
                                          format issued by PPDA
                                      •   Thresholds were adhered to in the determination
                                          of procurement methods
Evaluation procedures         9/10    •   All files reviewed had evaluation reports on file.


                                                                                               271
                                                 •     However in a few cases a record of acceptance
                                     90%               of code of ethical conduct for evaluation
                                                       committee members were missing of file
Contract placement, award and        6/10        •     Copies of signed contracts exist
management                                       •     Copies of notices of best evaluated bidder were
                                     60%               on file though no evidence to indicate their
                                                       posting on the authority web site
                                                 •     Unsuccessful bidders were notified through the
                                                       fax
                                                 •     No evidence of user involvement in certification
                                                       of payments
Reporting                            6/6         •   The entity was update in terms of Monthly reports
                                                     to the Authority in the formats prescribed by
                                    100%             PPDA
Performance of Contracts             7/8         •     There was use of forms for meetings(PP Form
Committee                                              210) and record of contracts committee decision
                                     88%         •     The records of acceptance of code of ethical
                                                       conduct exist, save for some not found on file
                                                 •     There was no evidence of a retrospective
                                                       approval by the contracts committee
Record Keeping                       5/8         •     A procurement reference book exists
                                                 •     Individual cases have standard procurement
                                     72%
                                                       reference numbers
                                                 •     Most files reviewed had no acceptance letters
                                                       from successful bidders
                                                 •     There were no record of supplier
                                                       appraisal/performance

Total Score and                      76%                          SATISFACTORY
Overall Rating of PDE



RECOMMENDATIONS

   1. The Accounting officer should file PP form 221 with the PPDA
   2. The entity should prepare and submit and approved procurement and disposal plan to the
       Authority
   3. All departments should prepare their departmental work plans for procurements
   4. Framework contracts for repetitively procured items should be adopted in the entity
   5. A record of acceptance of code of ethical conduct for evaluation committee members should be
       signed by all members as required under Reg. 169(9) and 171(5)
   6. Unsuccessful bidders should be notified in writing as required under Reg. 225(4)
   7. Users should certify payments as required by Reg. 260(2)
   8. All members of the CC should consistently sign acceptance of code of ethical conduct and have
       then filed on the procurement files they relate
   9. All records pertaining to a given procurement should be put on the respective files
   10. The entity should initiate supplier appraisal /performance




                                                                                                          272
3.2     Local Government Entities

3.2.1   Districts

        NAME OF PDE: Adjumani District Local Government


        Date of Assessment: 23rd – 24th July 2008


        MANDATE: Manage To provide quality service, a health and clean environment and uphold
                 Democratic governance thereby promoting social, economic development in the
                 District.


        LEGAL/INSTITUTIONAL STATUS: District Local Government


        BUDGET (GOU/DONORS): Mainly GOU and Local Revenue.


        SIZE OF PDE: Large


        ACCOUNTING OFFICER (Name): Mr. Abdul Isoobe


        CONTRACTS COMMITTEE MEMBERS (Names)

                                                      1.   Julius Okuga           Chairman
                                                      2.   Eng. Otema Francis     Member
                                                      3.   Giyaya Charles         Member
                                                      4.   Eng. Kendrick Anyama   Member
                                                      5.   Dr. Dragbe             Member

        PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names)

        The PDE does not have a functional PDU in place.




                                                                                                273
 COMPLIANCE        SCORE/RATING                          FINDINGS
      AREA
Procurement            6/10       •   The PDE does not have a fully functional PDU in place.
Structures                            Attempts have been made by advertising positions for the
                       60%            PDU but all applications received were not responsive.
                                  •   User departments do not use PP Form 20.

Procurement                       •   Procurement Plans are in place both for departments and for
Planning               6/10           the entire PDE.
                                  •   The PDE did not use framework contracts for any of its
                       60%            regular procurements.
                                  •   There is no comprehensive asset register at the PDE.
Solicitation and       5/10       •   Use of non-standard documents.
Bidding                           •   No record of issue of solicitation documents.
Procedures             50%
Evaluation                        •   Evaluation Committee does not sign the ethical code of
                       4/10
Procedures                            conduct.
                                  •   No Contracts Committee approval of evaluation reports or
                       40%
                                      evaluation committee members.



                                                                                              274
Contract                   3/10             •   Contract management records were not included on the files
Placement, Award                                reviewed.
and Management            30%               •   Unsuccessful bidders are not notified.
Reporting                  2/6              •   Quarterly reports are prepared but are never submitted to
                                                the Authority.
                          33%
Performance of                              •   CC does not sign ethical code of conduct.
                           2/10
Contracts                                   •   CC minutes were not signed and they did not use the
Committee                                       approved forms for their records and approvals.
                          20%
Record Keeping                              •   The entity did not have proper filing with some of the cases
                                                reviewed involving loose documents.
                                            •   In addition, procurement reference numbers that were used
                           2/8
                                                were not standard.
                                            •   There were no individual files for each of the cases
                          25%
                                                reviewed. Everything was mixed up and it was therefore
                                                difficult to follow a case through from initiation to award
                                                and completion

Total score for the       42%               MODERATELY SATISFACTORY
PDE and rating


RECOMMENDATIONS

    1. Training required by the Entity.
    2. PDE advised to re-advertise the posts in order to establish the PDU.
    3. The District should file PP Forms 220 and 221 with the Authority after recruitment of the PDU
       staff.
    4. PDE advised to put in place a comprehensive asset register with a provision for assets disposal.
    5. PDE advised to use standard documents with the format issued by PPDA.
    6. PDE advised to keep an issue of the solicitation documents on file for each contract.
    7. PDU advised to complete its files to include contract management records and other
       information/documentation related to procurement.
    8. The District should also submit quarterly procurement reports to the Authority in accordance with
       the law.




                                                                                                         275
NAME OF PDE: Apac District


DATE OF ASSESSMENT: 17th July 2008


MANDATE: Manage To provide quality service, a health and clean environment and uphold
         Democratic governance thereby promoting social, economic development in the
         Municipaliy



LEGAL/INSTITUTIONAL STATUS: Local Government


BUDGET (GOU/DONORS): Releases from Central Government, Donors (DANIDA for road
                    development) and internally generated funds from revenue collection
                    centres.
                    Entity benefits from NUSAF and NAADS funds, however, procurements
                    under these funds are conducted at the community level.


SIZE OF PDE: 876 staff under 8 departments (408 approved positions (less teachers) with only 266
             filled positions i.e. 65%), approximately 30% of the total budget is spent on
             procurements. It is categorized in Module II by Ministry of Local Government.


ACCOUNTING OFFICER: Mr. Paul Walakira


CONTRACTS COMMITTEE MEMBERS: (Names)

                    1. Mr. Ateng Francis -Senior Assistant Secretary           Chairman.
                    2. Dr. Emer Mathew -District Director of Health services    Member
                    3. Mr. Ogwang Yovan -District Agricultural Officer          Member
                    4. Mr. Enon Pele Alfred -District Planner                  Member


PROCUREMENT AND DISPOSAL UNIT MEMBER (Names):


                    1. Mr. David Opeto     Ag. Procurement Officer




                                                                                            276
  COMPLIANCE AREA        SCORE /   FINDINGS
                         RATING

Procurement Structures    6/10         •    The Accounting Officer is newly appointed to the
                                            district and has never been training on the Procurement
                          60%               laws.
                                       • The 4 CC members are approved by PS/ST but PP Form
                                            220 is not filed with PPDA.
                                       • There is no established PDU. The unit is manned by an
                                            unqualified acting procurement officer.
                                       • The user departments initiate procurements on an
                                            internal form equivalent to LG PP Form 1.
                                       • The Internal Auditor carries out post audits in quarterly
                                            basis.
Procurement               9/10     Entity has;
Planning                            • An approved pre-qualified list of providers.
                          90%       • A departmental procurement plan.
                                    • A procurement plan for FY 2007/08 based on the approved
                                       budget.
                                    • An assets register with provisions for assets disposal plan.
                                    • There is use of non regulated framework contracts.




                                                                                              277
Solicitation   and   bidding   10/10   • There are records of issue of Solicitation documents and
procedures                               receipt of bids although all bids received for different
                               100%      procurements are recorded together where the deadline for
                                         bid submission is the same.
                                       • The SBD for procurement of revenue collection centres does
                                         not use the standard PPDA document but has good
                                         innovations such requiring bidders to submit LC I Letters
                                         and photographs which helps to trace defaulters.
                                       • Entity prefers use of the Request for Quotation method for
                                         most procurements to ensure competition.
                                       • Minimum bidding periods were observed for all the sampled
                                         cases.
Evaluation procedures          10/10   • The CC approves the members of the Evaluations
                                         Committee (EC) and the Evaluation Report.
                               100%    • Appropriate evaluation methodologies are used.
                                       • The Evaluation Committee minutes and Acceptance of Code
                                         of Ethical Conduct for EC members are signed.
Contract placement, award      6/10    • BEB Notice and contract award are posted on the Entity’s
and management                           notice board.
                               60%     • Entity does not post notices on the PPDA web site.
                                       • The unsuccessful bidders are only informed at pre-
                                         qualification.
                                       • CC approves all contracts and copies of signed contracts
                                         were on file, however, they were ignorant of the requirement
                                         in law on the Solicitor General's approval of contracts above
                                         50 million.
                                       • No evidence that some contracts sampled were executed
                                         within the contractual period, however, copies of the signed
                                         contracts stipulated the completion periods.
                                       • All sampled cases were on-going, however, PDU stated that
                                         the user departments usually counter sign the LPOs.
Reporting                       4/6      • Entity had an up to date reporting record.
                                         • PDU had improvised internal forms with guidance of
                               67%            the CG Forms.
                                         • The Authority query on the procurement process of
                                              Cadastral survey of the primary school's land in Aber
                                              sub county that was over quoted by 1000% was deferred
                                              to the newly designated Oyam DLG since this Sub
                                              county falls there in.
Performance of Contracts        4/8      • Since Entity had just received the LG PP/DPA Forms,
Committee                                     there was no record of Acceptance of Code of Ethical
                               50%            Conduct for CC members.
                                         • In the CC minutes sampled the CC had not granted any
                                              retrospective approvals.
Record Keeping                  5/8        • PDU has a record/filling system.
                                           • Most of the sampled cases had the standard
                               63%              procurement reference numbers.
                                           • Contract management and supplier appraisal records
                                                were submitted by the engineering department
                                                although the water department had not submitted any.

Total Score and                75 %                         SATISFACTORY
Overall Rating of PDE



                                                                                                 278
RECOMMENDATIONS

  1. The Accounting Officer should be trained on his role in public procurement cycle.
  2. PP Form 220 on membership of the Contracts Committee and membership of the PDU should be
  filled and filed with PPDA.
  3. The acting procurement officer needs training on the procedures of the PPDA law.
  4. The Entity should recruit more PDU staff and file PP Form 221 with the Authority.
  5. The Entity should initiate all procurements on LG PP Form 1.
  6. The Entity should formalize the frame work contracts for all repetitively procured items, like
  stationery, fuel, human drugs and sundries.
  7. The Entity should use Standard Bidding Documents (SBD) issued by the Authority.
  8. The Entity should record the issue of SBDs, bid submission and opening on the LG PP Forms.
  9. The PDU staff need training on the posting of notices on the PPDA website.
  10. All unsuccessful bidders should be notified in writing for the individual procurements.
  11. The Entity should seek Solicitor General’s approval for all procurements above 50 Million
  Uganda Shillings.
  12. At every meeting the CC members must sign the acceptance of Code of Conduct in Business.
  13. All CC decisions on a submission should be made on LG PP Form 20.
  14. Standard procurement reference numbering should be used on each individual case procured
  with reference to Guideline 3 of 2008.
  15. All User departments should submit contract management and monitoring reports to the PDU.
  16. The PDU should get copies of contract payment records that are issued by the Finance dept.




                                                                                               279
NAME OF PDE: Budaka District Local Government


DATE OF ASSESSMENT: 9th – 10th July 2008


MANDATE: Manage To provide quality service, a health and clean environment and uphold
         Democratic governance thereby promoting social, economic development in the
         District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Releases from Central Government and internally generated
                     resources.


SIZE OF PDE: 18 User Departments with about 1000 staff


ACCOUNTING OFFICER: Mr. Busingye S.T Amoti


CONTRACTS COMMITTEE MEMBERS (Names):

                           1.   Dr. Pande Stephen - District Health Officer Chairperson
                           2.   Mr. Nabucha Aloysius - Water Engineer      Member
                           3.   Mr. Dambya Ambrose - Entomologist          Member
                           4.   Mr. Tembeiza Owen - Education Officer      Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                           1. Mr. Kutta Noah       - Senior Procurement Officer Head/ PDU
                           2. Mr. Bwire Geoffrey   - Procurement Officer
                           3. Mr. Dan Waki         - Assistant Procurement Officer




                                                                                            280
  COMPLIANCE AREA              SCORE /                               FINDINGS
                               RATING

Procurement Structures          7/10     • The Accounting Officer has established the Contracts Committee
                                           and PDU in place.
                                70%      • The 4 CC members are approved by PS/ST.
                                         • The user departments initiate procurements but make no use of LG
                                           Form 1.
                                         • The Internal Auditor regularly audits the procurement and disposal
                                           processes

Procurement Planning            4/10     • Entity has a pre-qualified list of providers for FY 07/08 but one for
                                           FY 08/09 is being prepared.
                                40%      • Assets register does not exist.
                                         • Framework contracts are used.

Solicitation   and   Bidding    9/10     • Records of issue of solicitation documents and solicitation
procedures                                 documents kept on the files,
                                90%      • Records of bid submission and opening seen
                                         • Minimum bidding periods observed in the cases sampled
                                         • Methods used are appropriate to the threshold provided for under
                                           the PPDA Guidelines
                                         • Copies of the solicitation documents issued and bids received kept


                                                                                                           281
                                      properly


Evaluation procedures       10/10   • The Evaluation Committee minutes and Evaluation Report are
                                      signed.
                            100%    • Records of Acceptance of Code of Ethical Conduct for EC
                                      members seen on the files.
                                    • Evidence of approval of the members of the Evaluations
                                      Committee by the Contracts Committee seen
                                    • Evaluation reports seen

Contract placement, award   8/10    • Notices of Best Evaluated bidder seen but not posted on the PPDA
and management                        Website.
                            80%     • Entity does not post the notices of contract award on the PPDA
                                      website.
                                    • Contract documents were found on the individual procurement
                                      files.
                                    • Some evidence that the contracts sampled were executed within the
                                      contractual period was seen although there were some delays in
                                      payment.
                                    • The unsuccessful bidders are displayed on the procurement notice
                                      board.
                                    • There was evidence that the User Department is involved in
                                      certifying payment.
Reporting                    4/6    • The 3rd Quarter procurement and disposal for the period January
                                      2008 to March 2008 was submitted on 14th April 2008 and the
                            67%       fourth quarter report fro April - June 2008 was being prepared for
                                      submission. Minutes are attached to and signed. PPDA has not
                                      raised any query.
                                    • Entity adheres to the format of the reporting as provided under the
                                      Local Governments (PPDA) Guidelines 2008.
                                    • Contracts Committee minutes are attached to the quarterly
                                      procurement and disposal reports.

Performance of Contracts     6/8    • Contracts Committee minutes were available on the file. In Some
Committee                             cases, Contracts decisions and attendance are written on entity’s
                            75%       letter heads and not on LG form 9 and 10.
                                    • From the sampled procurement files, the Contracts Committee had
                                      not granted any retrospective approvals.
                                    • Some of the records of acceptance of code of ethical conduct for
                                      Contracts Committee seen on files.
                                    • No records of supplier appraisal and performance availed.

Record Keeping               5/8    • Separate files have been opened for Contracts Committee’s
                                      minutes, list of providers, monthly returns, and procurement plan
                            75%       for 08/09
                                    • Some of the Individual procurements lack procurement reference
                                      numbers assigned to them
                                    • The Entity has not instated a system of supplier
                                      appraisal/performance.

Total Score and             75%                            SATISFACTORY
Overall Rating of PDE




                                                                                                    282
RECOMMENDATIONS

  1. Entity should send one more name to PS/ST to ensure the Contracts Committee is fully
     constituted.
  2. Entity should prepare a procurement and disposal plan and submit it to the Authority.
  3. The Entity should ensure that the departmental plans are approved by the Heads of Departments
     and aggregated within the District procurement and disposal plan
  4. Entity is advised to ensure that each procurement is initiated using LG Form 1 and also to use the
     standard notices and formats as prescribed by the Local Governments (PPDA) Guidelines 2008
  5. Entity should adhere to the timely quarterly reporting in accordance with the Local Governments
     (PPDA) Guidelines 2008




                                                                                                  283
NAME OF PDE: Bundibugyo District Local Government


DATE OF ASSESMENT: 26th May 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
         governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government.


BUDGET (GOU/DONORS): Releases from Central Government, Donors (Belgian Technical
                    Cooperation, UNICEF, UPHOLD, Save the Children, GOAL and WV)
                    and internally generated funds from revenue collection centres.

SIZE OF PDE: 1,500 staff, District covers 3 Sub Counties and 1 Town Council.



ACCOUNTING OFFICER (Name): Mr. Byamungu Elias


CONTRACTS COMMITTEE MEMBERS (Names):

   1. Mr. Nshabiirwe Esau - Chairperson; District Education Officer
   2. Ms. Mugera Rose - Member; Physical Planner
   3. Ms. Masika Josephine – Member, Personnel Officer


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                          1. Mr. Nsubuga Hood - Ag. Head PDU


NB: Functional PDU is not yet in place since PDE had not yet recruited




                                                                                            284
   COMPLIANCE AREA               SCORE /   FINDINGS
                                 RATING

Procurement Structures            6/10     •   The Accounting Officer has a clear understanding of his role for the
                                               overall responsibility of the procurement and disposal process.
                                  60%      •   The 4 CC members are approved by PS/ST but PPDA PP Form 220 is
                                               not filed with the Authority.
                                           •   The fifth member was moved to kyenjojo district and the CAO is yet
                                               to nominate a name to send to PS/ST for approval.
                                           •   PDU is not fully established.
                                           •   Internal Auditor does not audit the procurement and disposal process.
Procurement Planning              8/10     •   Entity has;
                                           •   An approved pre-qualified list of providers.
                                  80%      •   Departmental procurement plans.
                                           •   A procurement plan for FY 2007/08 based on the approved budget,
                                               however, it’s not in the PPDA format.
                                           •   An assets register with provisions for assets disposal plan.
                                           •   It does not use framework contracts for the common user items.

Solicitation   and     bidding    6/10     •   No records on issuing of SBD.
procedures                                 •   Entity had improvised bidding documents since PPDA hadn’t just
                                  60%          issued the standard formats at the time of the review.




                                                                                                              285
Evaluation procedures             4/10         •   No records on file on the CC approval of the Evaluation Committee
                                                   (EC)
                                  40%          •   No record of Acceptance of Code of Ethical Conduct for EC
                                                   members, since Entity had just received the PPDA Formats
                                               •   There were evaluation reports and their respective CC approvals on
                                                   all the sampled cases.
Contract placement, award         1/10         •   BEB notices are placed on the PDE Notice board but not on the
and management                                     PPDA web site.
                                  10%          •   Unsuccessful bidders are never informed in writing.
                                               •   No record on relevant approvals like SG for contracts above 50
                                                   million
                                               •   No records on the performance of contracts within the contractual
                                                   completion date.
                                               •   No records on whether user departments are involved in payment of
                                                   contractual sums.
Reporting                          6/6         •   Entity had last submitted quarterly reports for the period of Jan – June
                                                   2008
                                 100%
Performance    of   Contracts     2/8          •   No record of Acceptance of Code of Ethical Conduct for CC
Committee                                          members, since Entity had just received the PPDA Formats.
                                  25%          •   There was one case with a retrospective CC approval.
Record Keeping                     1/8         •   No filing system in PDU.
                                  13%          •   PDU does not use standard procurements reference numbers
                                               •   PDE does not have a supplier appraisal/performance system.
Total Score and
Overall Rating of PDE             47 %         MODERATELY SATISFACTORY


         RECOMMENDATIONS

              1. Accounting Officer should forward two more names to the PS/ST to have a fully functioning
                  Contracts Committee.
              2. Entity should recruit PDU Staff.
              3. The Internal Auditor should audit the entire procurement and process, payment and deliveries.
              4. Entity should use framework contracts for repetitively procured items.
              5. PDU should record the issue of solicitation documents, bid submission and opening separately on
                  the LG PP Forms for the different procurements.
              6. CC should always approve the Evaluation Committee members in accordance with Reg. 27 of the
                  LG (PPDA) Regulations 2006.
              7. Appropriate evaluation methodologies should be used in accordance with Reg. 97 of the LG
                  (PPDA) Regulations 2006.
              8. All the unsuccessful bidders should be informed in writing to ensure transparency.
              9. All procurements should have relevant approvals i.e. Contracts Committee, Solicitor General (all
                  procurements above 50 million Uganda Shillings) and Donors where applicable.
              10. All signed Contracts should clearly state the completion date for monitoring and evaluation
                  purposes.
              11. All User Departments should be involved in certifying payments of Contractual sum.
              12. The Contracts Committee should not grant retrospective approvals i.e. procurement/disposal
                  method, SBD, Evaluation team, Evaluation reports among others.
              13. PDU should have a record/filling system with all the relevant documents as stated in Reg. 46 of
                  the LG (PPDA) Regulation 2006.



                                                                                                                     286
NAME OF PDE: Bushenyi District Local Government


DATE OF ASSESSMENT: 22nd – 23rd May 2008


MANDATE: Manage To provide quality service, a health and clean environment and uphold
         Democratic governance thereby promoting social, economic development in the
         District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Government of Uganda (Consolidated Fund) and internally
                     generated revenue. Budget for the financial year was UShs.
                     33,750,541,276.


SIZE OF PDE: 7,000 staff


ACCOUNTING OFFICER : Mr. Charles Nsubuga Kiberu


CONTRACTS COMMITTEE MEMBERS: (Names)

                    1.   Mr. Nyakisa Stanley Principal Health Inspector - Ag. Chairperson
                    2.   Mr. Turibarungi Augustus    Town Engineer - Member
                    3.   Ms. Tusiime Beatrice        Senior Inspector of Schools - Member
                    4.   Mr, Butegeine Godfrey       Water Officer - Member


The fifth member Ms. Alice Asiimwe was appointed Deputy CAO and therefore left the Contracts
Committee. The CAO was advised to appoint another person.


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                    1. Robert Byaruhanga    Principal Procurement Officer - Head PDU
                    2. Edgar Atwiine        Procurement Officer




                                                                                            287
     COMPLIANCE AREA               SCORE / RATING               FINDINGS


Procurement Structures                  8 /10       •   Procurement structures in place.
                                                    •   The Accounting Officer has appointed
                                        80%             the Contracts Committee save for one
                                                        member who left the Contracts
                                                        Committee and these were approved by
                                                        PS/ST.
                                                    •   The user departments initiate all
                                                        procurements.
Procurement                             5 /10       •   Entity has an approved procurement
Planning                                                plan though not in the PPDA format.
                                        50%         •   Some of the user departments have
                                                        departmental plans.
Solicitation   and       bidding        5 /10       •   Copies of the approved solicitation
procedures                                              documents were not on file in many
                                        50%             instances.
                                                    •   Some of the copies of the solicitation
                                                        documents seen on file were in
                                                        accordance with the PPDA SBDs.
                                                    •   The Entity adheres to the bidding
                                                        procedures.


                                                                                                 288
Evaluation procedures                     5 /10              •   The few evaluation reports seen on file
                                                                 follow the evaluation criteria in the
                                          50%                    solicitation document.
                                                             •   Some of the files lacked evaluation
                                                                 reports.
Contract placement, award and             2 /10              •   Few of the contract .documents were
management                                                       seen on file.
                                          20%                •   No contract management records were
                                                                 on the files.
                                                             •   There was neither a notice to the best
                                                                 evaluated Bidder nor the unsuccessful
                                                                 bidders.
                                                             •   No notices of contract award are
                                                                 posted to the PPDA website.
Reporting                                 0 /6               •   The Entity has not filed any quarterly
                                                                 reports for the period under review
                                          0%                     (November 2007 – April 2008).
Performance      of     Contracts         4 /8               •   Contracts Committee meets on average
Committee                                                        once a month.
                                          50%                •   Members sign the code of ethical
                                                                 conduct
                                                             •   Some of the minutes were not on file.
                                                             •   The Contracts Committee has not
                                                                 granted any retrospective approvals.
                                                             •   There were no contracts committee
                                                                 decisions on submissions on PP/DPA
                                                                 forms on file.
Record Keeping                            3 /8               •   Filing system being developed.
                                                             •   The District does not follow the PPDA
                                          38%                    Guideline      issued   on    reference
                                                                 numbering.
                                                             •   Not all records filed contained all the
                                                                 requirements of the law.
Aggregate Score and
Compliance Rating                         44 %                MODERATELY SATISFACTORY




 RECOMMENDATIONS

     1. The Accounting Officer should nominate a fifth member to the Contracts Committee and send the
        name to PP/ST for approval.
     2. The District should draft a procurement plan in the PPDA format and send a copy of It to the
        Authority.
     3. All user departments should draft their departmental procurement plans and submit them to the
        PDU.
     4. Copies of solicitation documents should be put on files in accordance with Reg. 66(4) of the LG
        (PPDA) Regs.
     5. There should be copies of evaluation reports on files after such reports have been approved by the
        District’s CC in accordance with Reg. 84(4).
     6. Copies of contract documents should be kept on the respective files after they have been approved
        in accordance with Reg. 46(2), 84 & 86(2)(f).


                                                                                                           289
7. The District should ensure that quarterly reports are submitted by the 15th day of each quarter for
    the preceding quarter and that all PP Forms are filled and CC minutes attached to reports as this
    aids the Authority as it reviews the reports.
8. The District should keep copies of signed minutes on the appropriate forms on file in accordance
    with Reg. 19(3).
9. The best evaluated bidder and the unsuccessful bidders should be given notice in writing as per
    Reg. 86(5) of the Local Government Regulations.
10. The notice of contract award should be posted to the PPDA website for the statutory display
    period.
11. The Entity needs to adhere to the guideline on referencing under the PPDA (Local Governments)
    Guidelines.




                                                                                                 290
NAME OF PDE: Busia District


DATE OF ASSESSMENT: 6th June 2008


MANDATE: Busia District Local Government is a district established and mandated under Local
        Government Act CAP 49, revised in 2006.

LEGAL/INSTITUTIONAL STATUS: District Local Government

BUDGET (GOU/DONORS): 11 Billion Uganda Shillings    (GOU- 99%, Own funds – o.5
                     & Donors- 0.5%), approximately 1 billion of the overall budget is
                     spent on procurement.

SIZE OF PDE: Busia District has 2 constituencies, 9 Sub Counties, 1Town council, 58 Parishes,
             and 474 local councils.


ACCOUNTING OFFICER: Mr. Aggrey Ngobi Fredie- District Administrative Officer


CONTRACTS COMMITTEE MEMBERS (Names):

                               1. Mr. Charles Wadenya     District Education Officer- Chairperson
                               2. Dr. Oundo G.B            District Health Officer- Member
                               3. Mr. Wabwire Fredrick     Senior Economic Planner- Member
                               4. Mr. Wabwire Patrick      Economist/Planner (TC) - Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                               1. Mr. Joel Wanjala -Senior Procurement Officer.

The entity has finalized staff recruitment for the PDU to be appointed.




                                                                                                    291
  COMPLIANCE AREA              SCORE /                            FINDINGS
                               RATING

Procurement Structures          6/10     •   There are procurement structures in place.
                                         •   Contracts committee is incomplete by one member.
                                60%      •   PP form 221 not found in the PDEs records.
                                         •   User departments do not initiate procurements using the PP
                                             form 20
Procurement Planning            5/10     •   Existence of approved pre-qualification of providers and
                                             consolidated procurement plan.
                                50%      •   No Assets register and Disposal planning.
                                         •   No framework contracts seen
Solicitation   and   Bidding    8/10     •   Methods used are appropriate to the thresholds
procedures                               •   Minimum bidding periods are observed in most procurements
                                80%          but not in all
Evaluation procedures           8/10     •   The entity has a record of evaluation reports and CC approves
                                             the evaluation reports.
                                80%
Contract placement, award       5/10     •   No evidence of notification of the award to unsuccessful
and management                               bidders.
                                50%
Reporting                        2/6     •   Monthly reports are not up to date.
                                         •   Standard formats are not used.



                                                                                                     292
                             33%
Performance of Contracts     3/8         •   Contract's committee minutes are prepared.
Committee                                •   PP Form 210 & PP Form 211 not seen.
                             38%         •   No signed CC minutes seen.
Record Keeping               3/8         •   No record of Supplier Appraisal/Performance.
                                         •   Separate files are kept for the procurements.
                             38%

Total Score and              56%                    MODERATELY SATISFACTORY
Overall Rating of PDE




RECOMMENDATIONS

   1. The Accounting Officer needs to follow up on the missing member from the CC
   2. The AO needs to follow up on the PP form 221for the establishment of the PDU to ensure that it
       is submitted to the PPDA
   3. All procurements should be initiated using the LG PP Form 1.
   4. PDE should set up an assets register and disposal plan.
   5. Frame work contracts should be used for repetitively procured items.
   6. PDU should ensure that procurements are executed within a set timeframe.
   7. There should be a record of Acceptance of Code of Ethical Conduct for EC members should be
       signed every time they are going to carry out an evaluation.
   8. All unsuccessful bidders should be notified in writing.
   9. All outstanding quarterly Reports should be submitted to PPDA promptly.
   10. All CC decisions on a submission should be made on LG PP Form 20 and should be signed by
       the C/man CC and the Secretary CC.
   11. Standard procurement reference numbering should be used on each individual case procured.
   12. PDU needs to improve on the filing system.
   13. All User departments should submit contract management and monitoring reports to the PDU.
   14. Supplier performance appraisal should form part and parcel of contract management and records
       to this effect should be kept by the PDU.




                                                                                                293
NAME OF PDE: Gulu District Local Government.


DATE OF ASSESSMENT: 4th -5th June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Central Government Grants (Conditional and Equalisation), Donor/NGO
                             funding and Local Revenue

SIZE OF PDE: 1419 staff; 11 Sub Counties; 1 Municipality


ACCOUNTING OFFICER (Name): Mr. Mwayita Bruno (Acting)


CONTRACTS COMMITTEE MEMBERS (Names):

                                   1. Mr. Olal A. Obong        Ag. District Engineer
                                   2. Mr. Bongomin Charles     Senior Engineer, Civil
                                   3. Ms. Akello Jane Lakony   Ag. Head of Finance
                                   4. Ms. Odwar Santa          Ag. Head, PDU, ACAO

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                   1. Ms. Odwar Santa          Ag. Head, PDU, ACAO

.:Click Here to Print




                                                                                        294
  COMPLIANCE AREA              SCORE / RATING   FINDINGS


Procurement Structures              5/10        •   The Accounting Officer has a clear understanding of his
                                                    role for the overall responsibility of the procurement and
                                    50%             disposal process.
                                                •   Contracts Committee operational with out PS/ST approval.
                                                •   No established PDU.

Procurement Planning                7/10        •   Entity has a pre-qualified list of providers which is
                                                    reviewed annually.
                                    70%         •   Has departmental procurement plans.
                                                •   Has a PDE approved procurement plan, however, not in
                                                    the approved PPDA format.
                                                •   Has an assets register but without provisions of asset
                                                    disposal planning.
Solicitation   and   bidding        5/10        •   No records for issue of solicitation documents, bid
procedures                                          submission and opening.
                                    50%
Evaluation procedures               9/10        •   Appropriate evaluation procedures were used for the
                                                    sampled cases.
                                    90%



                                                                                                    295
  COMPLIANCE AREA           SCORE / RATING        FINDINGS


Contract placement, award         4/10            •   BEB Notices posted on PDE notice Board but on the
and management                                        PPDA website.
                                  40%             •   Unsuccessful bidders are never notified in writing.
                                                  •   CC approvals for some most of the sampled cases for
                                                      works.
                                                  •   No SG approvals.
                                                  •   User departments are involved especially the District
                                                      Engineers certify payments of contractual sum for works.
Reporting                         6/6             •   Entity had submitted all the relevant quarterly reports and
                                                      had responded to queries raised on the procurement plan
                                 100%                 2007/08.
Performance of Contracts          5/8             •   PP Form 209 and 210 not used
Committee                                         •   PP/DPA Form not used
                                  63
Record Keeping                    4/8             •   Filing system in place
                                                  •   PDU does not use standard procurements reference
                                  50%                 numbers.
                                                  •   PDE has no supplier appraisal/performance system.
Total Score and
Overall Rating of PDE            68 %
                                                                       SATISFACTORY


RECOMMENDATIONS

   1. Entity should recruit PDU Staff and file PP Form 221 with the Authority.
   2. The District should send the contracts committee nominated names to PS/ST for approval.
   3. Entity should include a disposal plan in the assets register.
   4. PDU should have records on the issue of solicitation documents, bid submission and opening.
   5. All Unsuccessful bidders should be notified in writing.
   6. PDU should utilize the SBDs and Forms issued by the Authority.
   7. PDU should use the standard procurement reference numbers with reference to PPDA (LG)
      Guideline No. 3/2008.
   8. PDU should have a record/filling system with all the relevant documents as stated in Reg. 46 of
      the LG (PPDA) Regulation 2006.
   9. Entity should establish a mechanism for the assessment of the supplier’s performance.




                                                                                                       296
NAME OF PDE: Hoima District Local Government


DATE OF ASSESSMENT: 29th – 30th May 2008


MANDATE: Manage To provide quality service, a health and clean environment and uphold
         Democratic governance thereby promoting social, economic development in the
         District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Government of Uganda (Consolidated Fund)


SIZE OF PDE: 2200 staff members.


ACCOUNTING OFFICER: Mr. Iriama Walter


CONTRACTS COMMITTEE MEMBERS: (Names)

                           1. Mr. Byakagaba John Williams - Ag. Chairperson
                           2. Dr. Kajura Charles          - Member
                           3. Mr. Isingoma Ephraim        - Member

N.B     Eng. Obala Geoffrey who was the Chairperson and the Town Council representative resigned
from the service of the District.


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):
                   1. Mr. Christopher Byaruhanga - Procurement Officer - Head PDU
                   2. Ms. Judith Atugonza        - Assistant Procurement Officer




                                                                                            297
  COMPLIANCE           SCORE /                         FINDINGS
     AREA              RATING

Procurement             6/10     •   Procurement structures in place.
Structures                       •   The Accounting Officer has appointed the Contracts
                        60%          Committee and these were approved by PS/ST. There are
                                     two positions in the Contracts Committee that need to be
                                     filled.
                                 •   The Procurement and Disposal Unit is staffed but has no
                                     dedicated office.
                                 •   The District has not filed PP Forms 221 and 220 with the
                                     Authority.

Procurement             5/10     •   Entity does not have an approved procurement plan.
Planning                         •   Some of departmental plans seen were not in accordance
                        50%          with the PPDA format. These were in form of letter
                                     addressed to the Head PDU.
                                 •   It was said that the District had an Asset Register but it
                                     was not availed for confirmation.


Solicitation     and    4/10     •   Copies of the approved solicitation documents were not
bidding procedures                   on file in many instances.
                        40%      •   Some of the copies of the solicitation documents seen on
                                     file were in accordance with the PPDA SBDs.



                                                                                                  298
                                        •   The Entity has serious challenges in adhere to the PPDA
                                            formats.
                                        •   There are no records for bid closing and receipt on file.
                                        •   No letters of acceptance by best evaluated bidders on file.
                                        •   The minimum bidding period was not observed in a
                                            number of instances.
Evaluation                5/10          •   The few evaluation reports seen on file do not follow the
procedures                                  evaluation criteria in the solicitation document.
                          50%           •   Some of the files lacked evaluation reports.
                                        •   The few reports available were not approved by the
                                            Contracts Committee.
                                        •   The members of the Evaluation Committee are not
                                            approved by the Contracts Committee.

Contract placement,       2/10          •   Few of the contract documents were seen on file.
award          and                      •   No contract management records were on the files.
management                20%           •   Unsuccessful bidders are not given notice in writing as
                                            required by law.
                                        •   There was no evidence that user departments are involved
                                            in certifying payment of contractual sum.

Reporting                  4/6          •   The Entity had filed quarterly reports for the period under
                                            review according to PPDA records but these were not
                          67%               availed to the team during the visit.

Performance       of       4/8          •   Contracts Committee meets on average once a month.
Contracts Committee                     •   Members sign the code of ethical conduct
                          50%           •   Some of the minutes were not on file.
                                        •   Some contracts committee minutes not signed.

Record Keeping             3/8          •   There is no filing system in place.
                                        •   There is lack of proper storage facilities by the PDU and
                          38%               lacks a dedicated office for procurement.
                                        •   Not all records filed contain all the requirements of the
                                            law.
                                        •   There were no records of supplier appraisal in the
                                            District.

Aggregate Score and
Compliance Rating          46 %                    MODERATELY SATISFACTORY
                                                            .




 RECOMMENDATIONS

     1. The Entity should provide a dedicated office for the procurement and Disposal unit.
     2. The Accounting Officer should nominate two persons to fill the vacant positions in the Contracts
        Committee for PS/ST’s approval.
     3. The Entity is advised to ensure that an approved procurement plan is put in place and should
        submit a copy to the Authority.
     4. The user department procurement plan should be in the format provided by the Authority.


                                                                                                          299
5. The Entity requires training on procurement planning.
6. The procurement file should contain copies of the solicitation documents, letters of acceptance by
    the bidders, records of bid closing and receipt.
7. The Entity should adhere to the Authority’s standard format for notices.
8. The minimum bidding period should be observed in accordance with Reg. 55(3).
9. The Evaluation Committee should adhere to the evaluation methodology in the solicitation
    documents.
10. The procurement files should contain the evaluation reports.
11. Such Evaluation Reports should be approved by the Contracts Committee.
12. The Contracts Committee should always approve the composition of the Evaluation Committee in
    accordance with Reg. 72(2).
13. Contract documents and contract management records should be on the procurement files.
14. The Entity should always assign a contract manager for the procurements carried out.
15. Unsuccessful bidders should always be given notice in writing as required by Reg. 68(5) of the
    Local Government (PPDA) Regulations.
16. The user department should be involved in certifying payment of contractual sum.
17. The Entity should adhere to the reporting format under the Local Governments (PPDA)
    Guidelines 2008.
18. There is need to ensure that all the minutes of the Contracts Committee are properly filed, signed
    by the respective persons and recorded on the appropriate forms.
19. The Entity needs to establish a proper filing system for procurements.
20. The Entity should appraise its suppliers’ performance.




                                                                                                 300
NAME OF PDE: Iganga District Local Government


DATE OF ASSESSMENT: 16th – 17th June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Releases from Central Government and internally generated
                     resources.


SIZE OF PDE: Large


ACCOUNTING OFFICER: Mr. Danson Iga Mukasa


CONTRACTS COMMITTEE MEMBERS (Names):

                   1.   Mr. Samuel Batuuka Community Based Services - Chairman
                   2.   Mr. Kaziba Moses           District Planner - Member
                   3.   Mr. Ekodoi Opio Pauline    Senior Assistant Secretary - Member
                   4.   Dr. Muwanguzi David     Director of Health Services - Member
                   5.   Ms Mary Goretti Nyangweso Supervisor of Works (TC) - Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                   1.    Mr. Kafute Lyaliya -      Senior Procurement Officer
                   2.    Mr. Namukuve Brenda       -       Procurement Officer




                                                                                         301
  COMPLIANCE AREA        SCORE /                                FINDINGS
                         RATING

Procurement Structures    7/10     • The Accounting Officer has established the Contracts Committee
                                     and PDU in place.
                          70%      • The CC members are five and approved by PS/ST. However the
                                     submission has not been to PPDA on PP Form 220.
                                   • The user departments initiate procurements.
                                   • The District Engineer performs some of the functions of the PDU
                                     contrary to the provisions of the law
                                   • Internal Auditor audits the procurement and disposal processes

Procurement Planning      6/10     •   Entity has a procurement plan in place
                                   •   Entity has a pre-qualified list of providers
                          60%      •   Departmental plans not integrated into Procurement Plan
                                   •   Assets Register with cashier without provision for disposal plans




                                                                                                      302
Solicitation   and   Bidding   8/10   • Records of issue of solicitation documents and solicitation
procedures                              documents kept on the files,
                               80%    • Record of bid submission and opening seen
                                      • Minimum bidding periods observed by the Entity
                                      • Method used are appropriate to the threshold provided for under the
                                        PPDA Guidelines
                                      • Some of the copies of the solicitation documents issued and bids
                                        received not availed.

Evaluation procedures          9/10   • The Evaluation Committee minutes and Evaluation Report are
                                        signed.
                               90%    • Record of Acceptance of Code of Ethical Conduct for EC members
                                        seen on the files.
                                      • Evidence of approval of the members of the Evaluations
                                        Committee by the Contracts Committee not availed,
                                      • Evaluation reports seen

Contract placement, award      5/10   • Notice of Best Evaluated bidder seen although the Entity does not
and management                          post them and the notice of contract award on the PPDA website.
                               50%    • Some of the Contract documents were not on the individual
                                        procurement files.
                                      • No evidence that the contracts sampled were executed within the
                                        contractual period although there were some delays in payment.
                                      • No evidence that the unsuccessful bidders are notified in writing
                                      • There was evidence that the User Department is involved in
                                        certifying payment.

Reporting                      4/6    • Entity is not up to date in its quarterly procurement and disposal
                                        reporting.
                               67%    • Entity has not adhered to the format of the reporting as provided
                                        under the Local Governments (PPDA) Guidelines 2008.
                                      • Entity responds to queries raised by the Authority on the monthly
                                        reports.

Performance of Contracts        5/8   • CC minutes in place and detailed.
Committee                      63%    • Sampled the CC had not granted any retrospective approvals.
                                      • Record of Acceptance of Code of Ethical Conduct for CC
                                          members not seen on files.
                                      • No records of supplier appraisal and performance availed.

Record Keeping                  6/8   •   Fair record/filling system exists in the PDU.
                               50%    •   PDU lacks adequate storage facilities
                                      •   Some of the individual procurements lack procurement reference
                                          numbers assigned to them
                                      •   The Entity does not adhere to the format of assigning
                                          procurement reference numbers as provided under the Local
                                          Governments (PPDA) Regulations.


Total Score and                67%                           SATISFACTORY
Overall Rating of PDE




                                                                                                      303
RECOMMENDATIONS

  1. The Entity should ensure that the departmental plans are approved by the Heads of Departments
     and aggregated within the District procurement and disposal plan
  2. The District Engineer’s department should not perform the functions of the PDU such as keeping
     of the records
  3. The PDU should keep a copy of the Assets Register
  4. Entity should have a disposal plan in place
  5. Entity is advised to ensure that each procurement file has a copy of the approved solicitation
     document, evidence of notification of the unsuccessful bidder, and contract management records.
  6. Entity should adhere to the timely quarterly reporting in accordance with the Local Governments
     (PPDA) Guidelines 2008
  7. Records of Acceptance of Code of Ethical Conduct for Contracts Committee members should be
     signed at each meeting and kept by the Secretary.
  8. Entity should put in place a system of supplier appraisal and performance.
  9. PDU should endeavor to file procurements in individual procurement files with proper reference
     numbers.




                                                                                                304
NAME OF PDE: Isingiro District Local Government


DATE OF ASSESSMENT: 2nd – 3rd June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Releases from Central Government and Internally generated
                     resources.


SIZE OF PDE: Large


ACCOUNTING OFFICER: Mr. Byaruhanga Joseph


CONTRACTS COMMITTEE MEMBERS

                        1.   Dr. Nyahangane William    Member
                        2.   Mr. Byakatonda Tom       Chairrperson
                        3.   Mr. Besiga Stephen       Member
                        4.   Mr. Tumusime             Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                        1. Mr. Tumusine JB        –       SPO
                        2. Mr. Kamwine Frank      –       PO
                        3. Ms. Nareba Sylvia      –       APO.




                                                                                     305
  COMPLIANCE AREA              SCORE /                             FINDINGS
                               RATING

Procurement Structures          7/10     • The Accounting Officer has established the Contracts Committee
                                           and PDU in place.
                                70%      • The CC members are four, approved by PS/ST. However the
                                           submission has not been made to PPDA. One of the CC members
                                           has not been approved by the PS/ST
                                         • The user departments initiate procurements but make no use of PP
                                           Form 1.
                                         • Information as to whether the Internal Auditor has audited the
                                           procurement and disposal processes was not availed.

Procurement Planning            4/10     • Entity has no approved procurement and disposal plan
                                         • Entity has a pre-qualified list of providers
                                40%      • There are no departmental plans approved by the Heads of
                                           Departments
                                         • Assets Register with cashier without provision for disposal plans

Solicitation   and   Bidding    6/10     • Records of issue of solicitation documents and solicitation
procedures                                 documents not kept on the files,
                                60%      • Some record of bid submission and opening not seen


                                                                                                       306
                                   • Most of the minimum bidding periods observed in the cases
                                     sampled
                                   • Method used are appropriate to the threshold provided for under the
                                     PPDA Guidelines
                                   • Some of the copies of the solicitation documents issued and bids
                                     received not availed.

Evaluation procedures       5/10   • The Evaluation Committee minutes and Evaluation Report are
                                     signed.
                            50%    • Record of Acceptance of Code of Ethical Conduct for EC members
                                     not seen on the files.
                                   • Evidence of approval of the members of the Evaluations
                                     Committee by the Contracts Committee not availed,
                                   • Evaluation reports seen

Contract placement, award   5/10   • Notice of Best Evaluated bidder not seen.
and management                     • Entity does not post notices of best evaluated bidder and contract
                            50%      award on the PPDA website.
                                   • Some of the Contract documents were not on the individual
                                     procurement files.
                                   • No evidence that the contracts sampled were executed within the
                                     contractual period although there were some delays in payment.
                                   • No evidence that the unsuccessful bidders are notified in writting
                                   • There was evidence that the User Department is involved in
                                     certifying payment.

Reporting                   3/6    • Entity is not up to date in its quarterly procurement and disposal
                                     reporting.
                            50%    • Entity has not adhered to the format of the reporting as provided
                                     under the Local Governments (PPDA) Guidelines 2008.
                                   • Entity responds to queries raised by the Authority on the monthly
                                     reports.

Performance of Contracts    5/8    • Some of the Contracts Committee minutes were not available on
Committee                            the file.
                            63%    • From the sampled procurement files, the Contracts Committee had
                                     not granted any retrospective approvals.
                                   • Record of Acceptance of Code of Ethical Conduct for CC members
                                     not seen on files.
                                   • No records of supplier appraisal and performance availed.

Record Keeping              3/8    •   Record/filing system needs a lot of improvement.
                                   •   PDU lacks adequate storage facilities
                            38%    •   Some of the individual procurements lack procurement reference
                                       numbers assigned to them
                                   •   The Entity does not adhere to the format of assigning
                                       procurement reference numbers as provided under the Local
                                       Governments (PPDA) Regulations.


Total Score and             53%                  MODERATELY SATISFACTORY
Overall Rating of PDE




                                                                                                   307
RECOMMENDATIONS

  1. Entity should prepare a procurement and disposal plan and submit it to the Authority.
  2. The Entity should ensure that the departmental plans are approved by the Heads of Departments
     and aggregated within the District procurement and disposal plan
  3. The PDU should keep a copy of the Assets Register
  4. Entity is advised to ensure that each procurement file has a copy of the approved solicitation
     document, evidence of notification of the unsuccessful bidder, and contract management records.
  5. Entity should adhere to the timely quarterly reporting in accordance with the Local Governments
     (PPDA) Guidelines 2008
  6. Records of Acceptance of Code of Ethical Conduct for Contracts Committee members should be
     signed at each meeting and kept by the Secretary.
  7. Entity should provide adequate storage facilities to the PDU for record keeping purposes and
     ensure that there are separate procurement files for the different procurements carried on.




                                                                                                308
NAME OF PDE: Kabale District Local Government


DATE OF ASSESSMENT: 14th – 15th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
         governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Shs 23,345,487,960; coming from three sources: -
                            •       District Generated,
                            •       Central Government Transfer, and
                            •       Donors
                            Approximately 30% is used in procurement

SIZE OF PDE: 4,0671 staff


ACCOUNTING OFFICER:            Mr. Joseph Maira Mukasa


CONTRACTS COMMITTEE MEMBERS (Names):

                                              1. Mr. Sunday Mutabazi                    Chairperson
                                              2. Mr. James Mugisha                       Member
                                              3. Mrs.Winfred Mbabazi Busingye           Member
                                              4. Ms. Lillian Nkwanzi Rutembarika         Member
                                              5. Mr. Johnes Tumwesigye Kanyeihamba Member
                         The Contract Committee were approved by PS/ST and their tenure runs to 2009.


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                               1.      Mr. Joseph Bruce Twongyeirwe – Procurement Officer
                               2.      Ms Mercy Atuheire            -       APO




1
    3,462 are Teachers


                                                                                                 309
    COMPLIANCE AREA                SCORE / RATING                     FINDINGS


Procurement Structures                  6/10        •   Details of the new PDU staff not filed with PPDA
                                                    •   No record on file of using PP Form 20 to initiate l
                                        60%             procurements.
                                                    •   The procurement is departmentalised and some
                                                        decentralised to Sub-County level and the Internal
                                                        Auditor is not involved in verification.
Procurement Planning                    4/10        •   Departmental procurement plans are too sketchy
                                                        do not contain all requirements which support their
                                        40%             activities.
                                                    •   Consolidated procurement and disposal plan not
                                                        available.
                                                    •   PDE not using framework contracts [for
                                                        commonly procured items]
Solicitation   and       bidding        4/10        •   In some cases the solicitation documents [market
procedures                                              revenue collection] used are not appropriate.
                                        40%         •   PDE does not record issue of bidding document
                                                        and receipt of bids
Evaluation procedures                   7/10        •   Use of wrong selection method during evaluation,



                                                                                                  310
                                                            for example QCBS method for evaluation of
                                      70%                   works procurements.
                                                        •   New criteria introduced during evaluation stage
Contract placement, award and          1/10             •   No record of Notice of Best Evaluated Bidder;
management                                                  notification of the award to unsuccessful bidders;
                                      10%                   approval of contract document by Contracts
                                                            Committee / Solicitor General; contract execution;
                                                        •   No record of signed contract on file.
Reporting                              4/6              •   The Quarterly Reports for FY 2007/08 were given
                                                            to the Compliance Team to pass them on to PPDA.
                                      67%               •   No record on file of the outcome of the complaints
                                                            [for example regarding revenue collection of
                                                            parking fees at Katuna Trading Centre] which
                                                            reached IGG offices.
Performance      of   Contracts        6/8              •   Standard LG PP / DPA not used for recording CC
Committee                                                   meetings or decisions.
                                      75%
Record Keeping                         2/8              •   Most records on the procurement process are
                                                            lacking.
                                      25%               •   The District does not appraise its suppliers’
                                                            performances thus there were no records on file.
Total Score of PDE         and
Compliance Rating                      47%                    MODERATELY SATISFACTORY

RECOMMENDATIONS

   1. The Accounting Officer should ensure that details of the new PDU staff and the contracts
       committee are filed with PPDA
   2. User Department should initiate all procurements using LG PP Form 1
   3. The Internal Auditor should verify all procurements including those conducted at Sub-County
       level.
   4. Departmental procurement plans should contain all requirements of the department in a particular
       financial year.
   5. The District should use framework contracts for routine items such as stationary, fuel.
   6. The District should customise bidding documents to suit the procurement.
   7. The District should record issue of bidding documents and receipt of bid
   8. The appropriate evaluation method should be used and no criteria should be introduced during the
       evaluation
   9. The District should post notices of best evaluated bidder on the PPDA website
   10. The Entity should notify unsuccessful bidders of the award
   11. The Procurement and Disposal Unit and Contracts Committee should ensure approval of contract
       document by Contracts Committee and Solicitor General where applicable.
   12. All procurements conducted should be reported on. These include items such as fuel, utilities
       (water, electricity, telephone) and staff welfare items (sugar, milk)
   13. Contracts Committee should used the standard PPDA Forms in the Guidelines 2008 for recording
       minutes and decisions
   14. The District should improve on record keeping; assign procurement reference numbers and
       ensure that records relating to a single procurement are kept on the same file.
   15. The district should also appraise the performance of its suppliers.




                                                                                                     311
NAME OF PDE: Kalangala District Local Government


DATE OF ASSESSMENT: 26th - 27th May 2008


MANDATE: To provide quality service, a health and clean environment and uphold Democratic
         governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): GOU & Donor Funds


SIZE OF PDE: Approximately 221 members of Staff


ACCOUNTING OFFICER (Name): Ms. O.H Nakyanzi


CONTRACTS COMMITTEE MEMBERS (Names):
                               1. Mr. Balironda Mukasa David
                               2. Mrs. Bbosa Florence
                               3. Mr. Ssemakula Jeremiah



PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):
                                1. Mr. Owundo Samson - PPO
                                2. Mr. Kawalya Julius - Asst. PO




                                                                                            312
   COMPLIANCE AREA             SCORE /                             FINDINGS
                               RATING

Procurement Structures          8/10     •   Three of the Five nominated Contracts Committee members were
                                             approved by the PS/ST. The Entity nominated two other People
                                80%          and sent the names PS/ST for approval.
                                         •   The PDU is not fully established as it does not have a
                                             procurement officer.

Procurement                     7/10     •   There is a procurement plan for the entire District but no
Planning                                     departmental procurement plans.
                                70%      •   They have a list of providers which however does not cover all
                                             categories of providers. This was attributed to bidders not
                                             responding to the adverts that were put in the newspapers as they
                                             are not in wide circulation on all the islands encompassing
                                             Kalangala Islands and Kalangala itself.
                                         •   They were of the view that advertising through radios e.g. CBS,
                                             would be more efficient than the newspapers.
Solicitation   and   bidding    0/10     •   No samples of solicitation documents were seen in the records,
procedures                                   neither any evidence to show that bidding procedures were being
                                 0%          followed.
                                         •   This was attributed to the fact that the PDU was not established
                                             until February 2008 and between now and then, the current PDU
                                             staff have only handled one big procurement that is not yet
                                             complete but the documentation is available.



                                                                                                      313
                                              •   When the file was perused, it was found that all the necessary
                                                  documentation until the current stages were on file.
Evaluation procedures             3/10        •   There was evidence that evaluation reports were approved by the
                                                  then CC though there was no evidence of approval of the
                                  30%             members of the Evaluation Committee, neither evidence to show
                                                  that the right evaluation methodology was being used.
Contract placement,      award    4/10        •   Evidence of contract award notices but no documents evidencing
and management                                    approval of the contract document by the CC.
                                  40%         •   There were also no documents to prove the performance of the
                                                  contracts.
                                              •   There were no documents evidencing notice to the best evaluated
                                                  bidder or the unsuccessful bidder.
Reporting                          4/6        •   Entity has not submitted Quarterly reports.
                                              •   A sample of reports reviewed showed that there is use of standard
                                  67%             format and all PP Forms are filed.
Performance   of      Contracts    4/8        •   The District keeps a single file for the records of the Contracts
Committee                                         Meeting minutes though they are not recorded on PP Form 210.
                                  50%         •   The CC members do not sign the Code of Ethical Conduct.

Record Keeping                     2/8        •   Some of the records are in place but the record keeping is poor.
                                              •   There is no separation of files for the different procurements.
                                  25%         •   None of the procurements have the standard procurement
                                                  reference numbers
Aggregate Score and
Compliance Rating                 44%                      MODERATELY SATISFACTORY



 RECOMMENDATIONS

     1. The AO should request DSC to recruit a Procurement Officer and send two more names to PS/ST
         to have a fully constituted Contracts Committee.
     2. Entity should also file PP Form 221 and 220 with the Authority after the full recruitment process.
     3. The different departments should submit departmental procurement plans.
     4. The Entity should also write to PPDA formally and inform them of the challenges they are facing
         with advertising tenders.
     5. All procurements conducted by the district should be in accordance with the law and the
         necessary records kept on file.
     6. The CC should always approve the composition of the Evaluation Committee and such committee
         should always use the evaluation methodology provided by the law.
     7. The CC should always approve the contract document in accordance with the law.
     8. The best evaluated bidder and the unsuccessful bidders should always be given notice in writing
         as required by law.
     9. The District should ensure that quarterly reports are submitted by the 15th day of each quarter for
         the preceding quarter and that all PP Forms are filled and CC minutes attached to reports as this
         aids the Authority as it reviews the reports.
     10. The CC Minutes should always be recorded on the appropriate forms and Record of Contracts
         Committee decision on a submission on PP/DPA Form
     11. The CC Members should always sign the Code of Ethical Conduct in business.
     12. The Entity should ensure that each procurement has its own individual file and a standard
         procurement reference number.
     13. The District should also improve the filing system in the PDU.


                                                                                                           314
NAME OF PDE: Kamwenge District Local Government


DATE OF ASSESSMENT: 30th July 2008.


MANDATE: To provide coordinated delivery of services on the national and local priorities for the
          development of the people of the District.


LEGAL/INSTITUTIONAL STATUS: Local Government District


BUDGET (GOU/DONORS): Government funding, Donor funds (UNICEF, IFAD, LADBIMO,
                     DLSP) and self generated funds from the revenue centres.


SIZE OF PDE: 1910 staff (181 traditional civil servants, 190 health workers, 92 secondary and t
              tertiary teachers, 1447 primary teachers) 7 Departments. Total budget is
               approximately 13.31 Billion with at least 35 Million spent on procurement.


ACCOUNTING OFFICER: Mr. Ntaho Frank


CONTRACTS COMMITTEE MEMBERS (Names):

                     1. Dr. Kamanyire Alfred   Senior Veterinary Officer, Chairman
                     2. Dr Kasewa Sarah        District Director of Health Services
                                               Member
                     3. Mwijikyo Balaam Asiimwe District Planner Member
                     4. Mugume Ronald            Senior enforcement Officer (Town
                                                  Council) Member.

PROCUREMENT AND DISPOSAL UNIT MEMBER:

                     1. Fedinard Tumusiime -         Procurement Officer
                     2. Andrew Sebalu     -           Ass. Procurement Officer.




                                                                                                  315
  COMPLIANCE AREA              SCORE / RATING                     FINDINGS


Procurement Structures              9/10          •   The Accounting Officer has a clear
                                                      understanding of most of his role for the over
                                    90%               all responsibility for the procurement and
                                                      disposal process.
                                                  • Heads of Departments conduct micro
                                                      procurements without delegated powers.
                                                  • Contracts Committee has only 4 members
                                                      approved by PS/ST- Entity was to follow up
                                                      with PS/ST’s office on the approval of the 5th
                                                      member –Ms. Nissima.
                                                  • PDU lacks a Senior procurement officer.
                                                  • The Internal Auditor verifies deliveries with
                                                      reference to copies of records in PDU and
                                                      CC approvals.
Procurement Planning                8/10          • Entity has assets register kept in the stores
                                                      department.
                                    80%           • Entity operates on implied framework
                                                      contracts.
Solicitation   and   Bidding        10/10       • PDU has records of issue of Solicitation
procedures                                        documents.
                                   100%         • Uses SBDs issued by the Authority.


                                                                                               316
                                                    • Minimum bidding periods were observed for all
                                                      the sampled cases.
                                                    • Has record of bid submission and opening
Evaluation procedures               8/10            • The CC approves the members of the Evaluations
                                                      Committee (EC) and the Evaluation Report.
                                    80%             • Appropriate evaluation methodologies are used.
                                                      • The Evaluation Committee minutes,
                                                           however, PDU was ignorant of the
                                                           requirement in the law for the record of
                                                           acceptance of Code of Ethical Conduct for
                                                           EC members.
Contract placement, award           8/10              • Notice of contract award not placed on PDE
and management                                             Notice board and not posted on PPDA
                                    80%                    website
                                                      • Notifies all unsuccessful bidders in writing.
                                                      • CC approves all contracts and copies of
                                                           signed contracts were on file.
Reporting                           5/6               • Entity had submitted quarterly reports on
                                                           22nd July 2008.
                                    83%               •
Performance of Contracts             6/8              • PDU was ignorant of the record of
Committee                                                  acceptance of Code of Ethical Conduct in
                                    75%                    Business by CC members present on PP
                                                           Form 211.
Record Keeping                      5/8               • PDU has a record/filling system.
                                                      • Most of the sampled cases had the standard
                                    63%                    procurement reference numbers.
                                                      • There were no Contract management and
                                                           supplier appraisal records on cases sampled.

Total Score and                     82%                      HIGHLY SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS
  1. CAO should follow up on the approval of the 5th member.
  2. Entity should formalize framework work contracts for the common user items.
  3. PP Form 220 on membership of the Contracts Committee should be filled with PPDA.
  4. The user departments should start initiating all the procurements on LG PP Form 1.
  5. The Sub county chiefs (user departments) need training on the PPDA law.
  6. Frame work contracts should be used for repetitively procured items..
  7. There should be a record of Acceptance of Code of Ethical Conduct for EC members should be
      signed every time they are going to carry out an evaluation.
  8. All contracts should be executed within the completion dates.
  9. All CC decisions on a submission should be made on LG PP Form 20
  10. PDU should have records of Acceptance of Code of Ethical Conduct in business for EC and CC
      members signed at every meeting.
  11. Standard procurement reference numbering should be used on each individual case procured
      with reference to Guideline 3 of 2008.
  12. All User departments should submit contract management and monitoring reports to the PDU




                                                                                                  317
NAME OF PDE: Kanungu District Local Government


DATE OF ASSESSMENT: 23rd – 24th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Local revenue, LGDP LGMSD


SIZE OF PDE: 2338 Staff


ACCOUNTING OFFICER (Name): Mr. Kanyarutokye Moses


CONTRACTS COMMITTEE MEMBERS (Names):

                                        1.   Nizeyimana Kaguliro        - Chairman
                                        2.   Sebudde Steven             - Member
                                        3.   Wamukoya Ouma              - Member
                                        4.   Kagirehi Lazarus           - Member
                                        5.   Atuhire Innocent           - Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                        1. Murekyezi Gordon - Sen. Procurement Officer
                                        2. Aturinda Brian   - Procurement Officer

Assistant Procurement Officer position is vacant following resignation of Mercy Atuhire.




                                                                                           318
     COMPLIANCE AREA               SCORE / RATING                FINDINGS


Procurement Structures                  8/10        •    User department does not initiate
                                                         procurements using PP Form 20.
                                        80%              Loose minute is written by a head of
                                                         department to the Chairman Contracts
                                                         Committee
Procurement                             6/10        •   Entity claimed to have Assets Register
Planning                                                but did not avail it
                                        60%         •   Entity has no disposal plan
                                                    •   Entity does not use framework
                                                        contracts. The RFQ method is used to
                                                        procure repetitively procured items and
                                                        LPOs are issued as opposed to call-off
                                                        orders
Solicitation    and      bidding        5/10        •   Entity claimed to have a record of issue
procedures                                              of solicitation documents but this was
                                        50%             not provided to the team.
                                                    •   Entity uses RFQ which is not a
                                                        procurement method under the LG
                                                        Regulations 2006.
                                                    •   Minimum bidding period was adhered
                                                        to in few cases where the RFQ method


                                                                                                   319
                                                is used.
                                            •   There was no record of bid submission
                                                and bid opening.
Evaluation procedures                6/10   •   Entity uses only the Technical
                                                Compliance Selection methodology
                                     60%        even in cases of works procurements
                                                where methodologies such as Quality
                                                and Cost Based or Fixed Budget
                                                should have been applied.
                                            •   Evaluation Reports are not detailed and
                                                make reference only to financial
                                                evaluation of bids. It is therefore not
                                                clear whether criteria relating to
                                                technical evaluation are considered in
                                                detail.
Contract placement, award and        2/10   •   Notice of Best Evaluated bidder is not
management                                      posted on the PPDA website.
                                     20%    •   Unsuccessful bidders are not notified
                                                in writing
                                            •   Contract Documents are not approved
                                                by Contracts Committee, Solicitor
                                                General approval for the two contracts
                                                above Ushs 50m was not sought.
                                            •   There are delays in execution of
                                                contracts
                                            •   There is no involvement of the User
                                                Department in certifying payments.
Reporting                            5/6    •   Quarterly Reports lack procurement
                                                reference numbers in accordance with
                                     83%        PPDA Guidleine
Performance      of      Contracts    5/8   •   Contracts Committee decision on a
Committee                                       submission is not recorded using the
                                     63#        appropriate PP Form. Contracts
                                                Committee minutes indicate that the
                                                decisions taken by CC only relate to
                                                contract award and issues relating to
                                                approval of procurement method and
                                                solicitation document appear not to be
                                                considered.
Record Keeping                       5/8    •   Record which were availed to the team
                                                contain the requirements of the law.
                                     63%        However, records are kept in various
                                                offices such as user departments,
                                                finance.
                                            •   In general the PDU lacks a proper
                                                record filing system where each
                                                procurement contains all records
                                                relating to a particular procurement and
                                                are kept in individual files.
                                            •   There is no record of supplier
                                                performance.
Total Score of PDE and
Compliance Rating                    60 %   MODERATELY SATISFACTORY



                                                                                           320
RECOMMENDATIONS

      1. User departments should initiate procurements using LG PP Form 1
      2. Entity should avoid using RFQ which is not a procurement method under the LG
         Regulations 2006.
      3. User Departments should carry out supplier appraisals
      4. Entity should prepare a disposal plan and maintain an Asset Register
      2. Entity should use framework contracts for commonly procured items.
      3. Notice of Best Evaluated bidder should be posted on the PPDA website.
      4. Unsuccessful bidders should be notified in writing
      5. Entity should ensure a proper record filing system where each procurement file contains
         all records relating to the procurement.
      6. The PPDA checklist should be used as a guide by the PDU to maintain records on each
         file.




                                                                                            321
NAME OF PDE: Kapchorwa District Local Government


DATE OF ASSESSMENT: 3rd – 4th July 2008


MANDATE To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): GOU AND DONORS


SIZE OF PDE: 1,695 staff


ACCOUNTING OFFICER: Mr. Langoya Patrick Otto


CONTRACTS COMMITTEE MEMBERS (Names):

                                1. Mr.Otulu Daniel.N                             Ag. c/person
                                2. Mr.Teko Andrew       District Planner         Member
                                3. Sabila Isaac,        District Water Officer   Member
                                4. Mr. Cheptack Michael Acting Town Engineer     Member


PROCUREMENT AND DISPOSAL UNIT MEMBER:

                               1. Mr. Kitiyo George   Asst.Procurement Officer




                                                                                            322
 COMPLIANCE AREA         SCORE /                     FINDINGS
                         RATING

Procurement Structures    6/10     •   The CC members are four because one left the
                                       district.
                          60%      •    Pp form 20 is filed with the PPDA.
                                   •   The user dept doesn’t initiate their procurements
                                       on pp form 20.
                                   •   The Internal Auditor audits the procurement and
                                       disposal processes
                                   •   The whole PDU has just one Asst. Procurement
                                       Officer yet the workload is a lot.
                                   •   One of the CC members is the head of the water
                                       dept and he is also in charge of preparation of all
                                       water bidding documents. This slows down the
                                       work of the CC,
Procurement Planning      7/10     •   There are departmental procurement plans but
                                       written locally
                          70%      •   Lack of early planning has led to many
                                       procurements to be executed towards the end of
                                       the financial year which makes supervision for all
                                       the procurement made in that period poor and
                                       therefore shoddy.
                                   •   There is no use of frame work contracts for



                                                                                             323
                                                 repetitively procured items.
Solicitation and bidding      7/10           •   There are records of issue of Solicitation
procedures                                       documents though not on pp forms.
                              70%            •   Among the ten Solicitation documents, only two
                                                 were written using the standard format issued by
                                                 the PPDA.
                                             •   There are records of bid submission and opening
                                                 though not formatted to the standard of the law.
Evaluation procedures         7/10           •   Approval of Members of the evaluations
                                                 committee was last done once in 2006.
                              70%            •   Evaluation Methodology used in most cases is not
                                                 appropriate because there is no evidence of
                                                 Business address for some of the providers.
                                             •   There is some evidence of Acceptance of Code of
                                                 Ethical Conduct for EC members.
Contract     placement,       4/10           •   There is no record of Notice of Best Evaluated
award and management                             bidder anywhere.
                              40%            •   There is some evidence of execution of the
                                                 contract within the contractual period.
                                             •   Unsuccessful bidders are not notified
Reporting                      0/6           •   There are no records of Monthly reports.

                              0%
Performance of Contracts      4/8            •   The CC has not granted any retrospective
Committee                                        approval. But they are only four members instead
                              50%                of five because one member left the job.
                                             •   Record of Acceptance of Code of Ethical Conduct
                                                 for CC members present is available though not
                                                 on PP Form 211.
                                             •   There are no records of CC decision on a
                                                 submission on PP/DPA Form.
Record Keeping                 4/8           •   Record/filling system exists in the PDU though
                                                 records filed don’t contain all the requirements of
                              50%                the law.
                                             •   Individual cases don’t have the standard
                                                 procurement reference numbering.
                                             •   There      is   no     evidence       of   supplier
                                                 appraisal/Performance

Total Score and Overall       54%                  MODERATELY SATISFACTORY
Rating of PDE




RECOMMENDATIONS

   1. The Head of water Department should leave the work of preparation Water bidding documents to
      the PDU.
   2. PP form 221 be filled and filed with PPDA.
   3. The user departments should start initiating all the procurements on PP form 1
   4. The PDE should request the public service commission to recruit a senior procurement officer.




                                                                                                       324
5. All user departments. should submit their departmental plans so as to avoid running up and down
    towards end of the financial year in order to execute as many procurement as possible
6. Aggregation of procurement requirements into procurement plans.
7. Frame work contracts should be used for repetitively procured items.
8. All Solicitation documents should be made using the standard format issued by the PPDA.
9. Records of issue of solicitation documents, bid submission and opening should be recorded on PP
    forms.
10. Approval of Members of the evaluations committee should be done every time they are carrying
    out an evaluation for a new procurement.
11. Members of the EC should use the appropriate Evaluation Methodology as required by the law.
12. The record of Acceptance of Code of Ethical Conduct for EC members should be signed every
    time they are going to carry out an evaluation.
13. Notice of Best Evaluated bidder and Notice of award should be posted on the PDE notice board
    and PPDA webs.
14. Unsuccessful bidders should be notified in writing.
15. All contracts should be executed within the completion dates.
16. All Quarterly Reports should be written using the standard formats and submitted on time.
17. The PDU should be helped by PPDA to get internet connection in order for him to get access to
    the Authority’s website easily.
18. All Records Contracts meeting should be on PP Form 210 and signed minutes attached.
19. Record of Acceptance of Code of Ethical Conduct for CC members present should be made on
    PP/DPA Form.
20. All CC decisions on a submission should be made on PP/DPA Form
21. All records filed should contain all the requirements of the law.
22. Standard procurement reference numbering should be used on each individual case procured.
23. Supplier appraisal/Performance should be conducted regularly to faze out on Briefcase Providers
    who are among the per-qualified providers of the PDE




                                                                                               325
NAME OF PDE: Kasese District Local Government


DATE OF ASSESSMENT: 2nd – 3rd July 2008

MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.

LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Central Government, Internally Generated and Donors


SIZE OF PDE: 5,070 Staff


ACCOUNTING OFFICER (Name): Mr. Willy Bataringaya


CONTRACTS COMMITTEE MEMBERS (Names):

                                       1.     Mr. Police Mugisha        -      Chairman
                                       2.     Mr. Douglas C. Kateemba   -      Member
                                       3.     Mr. John Thawithe         -      Member
                                       4.     Eng. Oleny Lamu           -      Member
                                            (5th Member/Position)       -      Vacant


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                       1. Mr. Paddy Karuusu    -        Head PDU
                                       2. Mr. Masereka Katkono -        Procurement Officer
                                       3. Mr. Edward Kisembo -          APO




                                                                                          326
    COMPLIANCE AREA      SCORE /                       FINDINGS
                         RATING

Procurement Structures    7/10     •   The Accounting Officer has a clear understanding of
                                       his role for the overall responsibility for the
                          70%          procurement and disposal process.
                                   •   The 4 members of the CC were approved by the
                                       PS/ST except for the vacant position where a name
                                       has been sent for approval.
                                   •   PPDA not yet notified of PDU staff particulars since
                                       their appointment in March.
                                   •   There was no evidence to show that the user
                                       departments initiate procurements.
                                   •   It was averred that the Internal Auditor is involved in
                                       verifying the process of payment and receipt of
                                       goods.
Procurement               5/10     •   The District has a shortlist of providers.
Planning                           •   The Entity has no District Procurement Plan though
                          50%          there were some departmental procurement plans.
                                   •   The District does not make use of framework
                                       contracts




                                                                                                 327
Solicitation     and     bidding    2/10       •   No record of use of standard bidding documents;
procedures                                         issue or receipt of bids.
                                    20%        •   For a few contracts, the methods used were
                                                   appropriate to the threshold and circumstances.

Evaluation procedures               7/10       •   The members of the Evaluation Committee are
                                                   approved by the Contracts Committee.
                                    70%        •   The appropriate methodology for evaluation is not
                                                   used by the committee. Standard format are not used
                                                   for the Evaluation Report but such reports are
                                                   approved by the CC.
Contract placement, award and       2/10       •   The District does not have a procurement notice
management                                         board.
                                    20%        •   The unsuccessful bidders are not notified in writing
                                                   as required by the law.
                                               •   There was no evidence on file of execution of the
                                                   contract within the contractual completion date.
                                               •   There was also no evidence of the involvement of the
                                                   user department in certifying payments of the
                                                   contractual sum except for works contracts only.
Reporting                           0/6        •   No record of ever submitting quarterly reports to the
                                                   Authority.

Performance      of     Contracts   2/8        •   The CC do not sign the code of ethical conduct in
Committee                                          business.
                                    25%        •   The minutes are in place but not recorded on the
                                                   appropriate forms.

Record Keeping                      2/8        •   Not all files contain all the requirements of the law.
                                                   Most records were missing on files.
                                    25%        •   The District does not use standard procurement
                                                   reference numbers.
                                               •   The District does not appraise its suppliers’
                                                   performance.
Total Score of PDE and
Compliance Rating                   38%                      UNSATISFACTORY




 RECOMMENDATIONS

      1. The user departments should initiate procurements using PP Form 20.
      2. The District is encouraged to use framework contracts for commonly procured items.
      3. The District should also prepare a procurement plan and send a copy of it to PPDA.
      4. The District should use the standard bidding documents issued by PPDA.
      5. When bids are submitted and opened, there should be a record to that effect and such record
         should be filed in accordance with Regulation 70(5) and 71(11-13) of the LG (PPDA)
         Regulations..
      6. The appropriate evaluation methodology should be used by the Evaluation Committee in
         accordance with Regulation 79(1) of the LG (PPDA) Regulations.
      7. The evaluation reports should take on the standard format as guided by PPDA.




                                                                                                            328
8.     The unsuccessful bidders should be notified in writing as required by the law under Regulation
      86(5) of the LG (PPDA) Regulations.
9.    The District should also procure a procurement notice board on which to post procurement
      notices.
10.   Notices of contract award should be posted onto the PPDA website for the statutory display
      period.
11.   The user departments should be involved in certifying all payments of the contractual sum as
      under Regulation 119 thereof.
12.   The District should submit quarterly reports to PPDA accompanied by the CC minutes in
      accordance with section 94D of the PPDA Act.
13.   The contracts committee minutes should be recorded on the appropriate forms as required under
      Regulations 18(3) and 19(3) of the LG )PPDA) Regulations.
14.   The District should have individual procurement reference numbers for each contract or item
      procured as under Regulation 65(3) thereof.
15.   The filing system in the District needs to be improved.
16.   The District should appraise the performance of its suppliers.




                                                                                                 329
NAME OF PDE: Kayunga District Local Government


DATE OF ASSESSMENT: 25th – 26th June 2008


MANDATE: Manage To provide quality service, a health and clean environment and uphold
         Democratic governance thereby promoting social, economic development in the
         District.

LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): 12 Billion


SIZE OF PDE: Large


ACCOUNTING OFFICER (Name): Mr. Katehangwa Samuel


CONTRACTS COMMITTEE MEMBERS (Names):

          1.   Musisi Edirisa – Chairman
          2.   Kabanda Peter – Secretary
          3.   Arinaitwe Overson – Member
          4.   Mwanja Doreen – Member
          5.   Dr Mugabi - Member (proposed)


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                             1. Mr. Magala Jacob -        Senior Procurement Officer
                             2. Ms. Barbra       -        Procurement Officer
                             3. Mr. Norman Sebidde -      Asst. Procurement Officer




                                                                                        330
   COMPLIANCE AREA             SCORE / RATING              FINDINGS


Procurement Structures              6/10        •   Some procurements are not
                                                    initiated by users
                                    60%         •   PP forms are not signed by user
                                                    departments, authorizing Officer
                                                    and AO
                                                •   Internal Audit has never conducted
                                                    a review on the procurement
                                                    function
Procurement                         4/10        •   Entity does not have a procurement
Planning                                            plan
                                    40%         •   There is no asset register and
                                                    disposal plan
                                                •   PDU does not use framework
                                                    contracts for common user items
                                                    like fuel and lubricants. It issues
                                                    LPOs using the RFQ method
Solicitation   and   bidding        6/10        •   Record of issue of solicitation
procedures                                          document not on file.
                                    60%         •   Use of wrong procurement method



                                                                                          331
                                                             i.e. RFQ in several procurements
                                                             and yet this is not a procurement
                                                             method under the LG Regulations
                                                             2003.
                                                         •   Minimum bidding period not
                                                             adhered to in some cases
Evaluation procedures                  6/10              •   Partially fulfilled. Some evaluation
                                                             reports could not be found on file
                                       60%               •   Entity uses Least Cost Selection
                                                             evaluation methodology for most
                                                             procurements
Contract placement, award              5/10              •   Some cases lack evidence of
and management                                               notices
                                       50%               •   Approvals by Contracts Committee
                                                             are not signed (Form 13 and 20)
                                                         •   Few cases were notices are sent to
                                                             unsuccessful bidders
Reporting                              3/6               •   Submitted only one Quarterly
                                                             Report for the period Jan-March 08
                                       50%
Performance   of   Contracts            4/8              •   Record of Contracts meeting not on
Committee                                                    PP Form 210
                                       50%               •   Record of Contracts Committee
                                                             decision on PP Form 1 appears to
                                                             have been generated for purposes
                                                             of the compliance check.
Record Keeping                         3/8               •   Records relating to procurement are
                                                             not kept in individual files.
                                       38%               •   No evidence on supplier appraisal
Total Score of PDE and
Compliance Rating                      57%              MODERATELY SATISFACTORY



 RECOMMENDATIONS

    1. Entity was advised to ensure proper record keeping by using the PPDA checklist for a
       procurement file.
    2. Entity is strongly advised to adhere to minimum bidding periods provided in the LG Guidelines
       2008.
    3. PP Forms relating to Contracts Committee decisions should be signed by the Chairperson and
       Secretary.
    4. Evaluation Reports should be kept on a procurement file.
    5. User Department should conduct supplier appraisals.




                                                                                                    332
NAME OF PDE: Kibaale District Local Government


DATE OF ASSESSMENT: 16th – 17th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Releases from Central Government, donor funds and internally
                     generated resources.


SIZE OF PDE: 1000 staff members and 18 User Departments


ACCOUNTING OFFICER: Mr. Dunstan Balaba


CONTRACTS COMMITTEE MEMBERS

                     1. Dr. Kyamanywa Dan    -    District Health Officer, Chairperson
                     2. Mr. Kyaboona John    -    Ag. DEO, Member
                     3. Mr. Sentayi Peter    -    Production Officer, Member
                     4. Mr. Mukasa Jimmy     -    Community Development Officer,
                                                  Member
                     5. Mr. Sanyu Christopher -   Sub County Chief – Muhoro, Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                     1.      Mr. Irumba Amos - Procurement Officer       Head PDU
                     2.      Mr. Tibasima Annet - Assistant Procurement Officer Member




                                                                                         333
  COMPLIANCE AREA              SCORE /                              FINDINGS
                               RATING

Procurement Structures          9/10     • The Accounting Officer has established the Contracts Committee
                                           and PDU in place.
                                90%      • The CC members are approved by PS/ST.
                                         • The user departments initiate procurements and started making
                                           requisitions using LG Form 1.
                                         • The Internal Auditor regularly audits the procurement and disposal
                                           processes

Procurement Planning            8/10     • Procurement plan including departments and sub counties have
                                           been prepared.
                                80%      • -List of approved pre-qualified providers for 07/08 and assets
                                           register are in place.
                                         • There is limited use of framework contracts

Solicitation   and   Bidding    7/10     • Records of issue of solicitation documents and solicitation
procedures                                 documents kept on the files,
                                70%      • Records of bid submission and opening seen
                                         • Minimum bidding periods observed in the cases sampled
                                         • Methods used are appropriate to the threshold provided for under
                                           the PPDA Guidelines
                                         • Copies of the solicitation documents issued and bids received kept



                                                                                                        334
                                     properly
                                   • The entity has been using LF forms until May 08 when it started
                                     using LG forms as per Local Governments (PPDA) Guidelines
                                     2008.

Evaluation procedures       8/10   • The Evaluation Committee minutes and Evaluation Report are
                                     signed.
                            80%    • Records of Acceptance of Code of Ethical Conduct for EC
                                     members seen on the files.
                                   • Evidence of approval of the members of the Evaluations
                                     Committee by the Contracts Committee seen
                                   • Evaluation methodology used at times is not in accordance with the
                                     Local Governments (PPDA) Regulations 2006 and the Local
                                     Governments (PPDA) Guidelines, 2008

Contract placement, award   9/10   • Notices of Best Evaluated bidder seen but not posted on the PPDA
and management                       Website.
                            90%    • Contract documents were found on the individual procurement
                                     files.
                                   • Some evidence that the contracts sampled were executed within the
                                     contractual period was seen although there were some delays in
                                     payment.
                                   • The unsuccessful bidders are written to and letters also displayed
                                     on the procurement notice board. Copies given to the auditor and
                                     the storekeeper.
                                   • There was evidence that the User Department is involved in
                                     certifying payment.

Reporting                   5/6    • The 3rd and 4th Quarterly procurement and disposal reports
                                     submitted on 15th July 2008 to the Authority.
                            83%    • Entity adheres to the format of the reporting as provided under the
                                     Local Governments (PPDA) Guidelines 2008.
                                   • Contracts Committee minutes are attached to the quarterly
                                     procurement and disposal reports and the reports are forwarded by
                                     the Accounting officer in accordance with the law.

Performance of Contracts    5/8    • Contracts Committee minutes were available on the file. In Some
Committee                            cases, Contracts decisions and attendance are written on entity’s
                            56%      letter heads and not on LG form 9 and 10.
                                   • From the sampled procurement files, the Contracts Committee had
                                     granted retrospective approvals for procurements undertaken by
                                     Sub counties as emergencies.
                                   • Records of acceptance of code of ethical conduct for Contracts
                                     Committee seen on files.
                                   • No records of supplier appraisal and performance availed.

Record Keeping              6/8    • Separate files have been opened for Contracts Committee’s
                                     minutes, list of providers, quarterly returns, and procurement plan
                            75%      for 08/09
                                   • The District Engineer and the PDU have initiated a system of
                                     supplier appraisal/performance.
                                   • The Entity uses one sequence number for all contracts awarded in
                                     one meeting instead of adhering to the format of assigning
                                     procurement reference numbers in accordance with the Local


                                                                                                   335
                                          Governments (PPDA) Guidelines, 2008.


Total Score and               79%                             SATISFACTORY
Overall Rating of PDE




RECOMMENDATIONS

   1. Entity should prepare a procurement and disposal plan and submit it to the Authority.
   2. The Entity should ensure that the departmental plans are approved by the Heads of Departments
      and aggregated within the District procurement and disposal plan.
   3. The Entity’s Contracts Committee should refrain from approving procurements retrospectively.
   4. Entity is advised to ensure that each procurement is initiated using LG Form 1 and also to use the
      standard notices and formats as prescribed by the Local Governments (PPDA) Guidelines 2008.
   5. Entity should adhere to the timely quarterly reporting in accordance with the Local Governments
      (PPDA) Guidelines 2008.
   6. Entity is advised to use framework contracts for repetitively procured supplies.
   7. Procurement reference numbers should be assigned in accordance with the Local Governments
      (PPDA) Guideline No. 3/2008




                                                                                                   336
NAME OF PDE: Kiboga District


DATE OF ASSESSMENT: 27th – 28th May 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): 11,218,722,000/=


SIZE OF PDE: 2038 Employees


ACCOUNTING OFFICER (Name): Mr. Robert Mulondo


CONTRACTS COMMITTEE MEMBERS (Names):

                         1. Byabagambi Simon       DAO,                      Chairperson
                         2. Mukiibi Ismail    District Engineer,               Member
                         3. Rwebuga Kizito District Population Officer,        Member
                         4. Kabuye Martin      Senior Health Inspector,         Member
                         5. Dr. Muluta Allan Niyonzima District Health Officer, member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                         1. Ms. Nabagala Dorothy   PO
                         2. Ssengendo Byron        APO




                                                                                           337
COMPLIANCE AREA                       SCORE/     FINDINGS
                                      RATING
Procurement Structures                    5/10     All CC members were approved by the
                                                   ST to Treasury as required by PPDA
                                          50%      Reg 45 (3).
                                                   The District engineer is on the contracts
                                                   committee
Procurement Planning                      5/10     The Entity had a Procurement Plan
                                                   though, it had not been submitted to the
                                          50%      authority
                                                   Works had a procurement plan that had
                                                   not been integrated in the entity
                                                   procurement plan
                                                   The entity lacked an assets register with
                                                   provisions for asset disposal planning
                                                   There is no usage of framework
                                                   contracts of repetitively procured items.
Solicitation and bidding procedures       4/10     The entity did not use SBDs in its
                                                   solicitations as required by PPDA.
                                          40%


                                                                                               338
                                                            There were no records for bid
                                                            submissions and opening
                                                            Lack of consistent use of appropriate
                                                            procurement methods as in the case of
                                                            the periodic maintenance of Ntwetwe-
                                                            Sirimuka road, the contract Value was
                                                            100,883,400/=but       was     procured
                                                            through RFQ
Evaluation procedures                       9/10            The entity adhered to evaluation
                                                            procedures.
                                           90%              All minutes of the evaluation
                                                            committee meetings were signed
                                                            Some members of the evaluation had
                                                            not signed a record of acceptance of
                                                            ethical conduct for EC members

Contract placement,     award   and         5/10             Copies of signed contracts existed
management                                                   though some were kept at different
                                           50%               sites with no copy on file.
                                                             There were no copies of notices of
                                                             best evaluated bidder on file and hence
                                                             no evidence of their posting on the
                                                             authority web site
                                                             Unsuccessful bidders were equally
                                                             never notified
                                                             No evidence of user involvement in
                                                             certification of payments

Reporting                                   0/6              The entity was not update in terms of
                                                                Monthly reports to the Authority
                                            0%
Performance of Contracts Committee          3/8              There is no use of forms for meetings
                                                             and record of contracts committee
                                           38%               decision
Record Keeping                              1/8              Procurement files exist but littered
                                                             across the entity and with incomplete
                                           13%               records.
                                                             Nonetheless, a file for contracts
                                                             committee meetings exists

Total Score and                            47%           MODERATELY SATISFACTORY
Overall Rating of PDE




RECOMMENDATIONS

   1. The Accounting Officer should nominate another person to replace the District engineer on the
      contracts committee.
   2. The Accounting officer should expedite the recruitment and appointment of the Head and officers
      in the PDU as required by LGPPDA Reg. 14(2).
   3. The entity should prepare and submit the procurement and disposal plan to the Authority.


                                                                                                       339
4.    Such a procurement plan should be a consolidation of all departmental plans in the entity.
5.    Framework contracts for repetitively procured items should be adopted in the entity.
6.    The entity should provide for asset disposal planning in the assets register.
7.    The entity should contact the Authority for the SBDs and intensify their usage as required by
      PPDA.
8.    Records of bid submission and opening should be put in place as required under Reg.(70(5) and
      reg.71(11-13).
9.    The entity should always adhere to thresholds provided in the LG PPDA guidelines.
10.   All evaluation committee members should sign a record of acceptance of ethical conduct for EC
      members.
11.   Copies of signed contracts should be kept on the procurement file.
12.   Copies of notices of best evaluated bidder should be put on file.
13.   Unsuccessful bidders should be notified.
14.   Users should certify payments as required by Reg. 119.
15.   The Entity should submit the outstanding quarterly procurement and disposal reports to the
      authority as required under PPDA Reg. 14(m).
16.   CC should consistently use forms provided by PPDA for conduct of meetings and record of
      contracts committee decision.
17.   All procurement files should kept in the PDU.
18.   All records pertaining to a given procurement should be put on the respective files




                                                                                               340
NAME OF PDE: Kiruhura District Local Government


DATE OF ASSESSMENT: 30th June - 1st July 2008


MANDATE: To provide quality service, a health and clean environment and uphold Democratic
         governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): GOU & Donor Funds


SIZE OF PDE: Approximately 67 members of staff


ACCOUNTING OFFICER (Name): Mr. Kanyesigye William


CONTRACTS COMMITTEE MEMBERS (Names):

                                         1.   Mr. Turyamureeba Emmanuel - Chairperson
                                         2.   Ms. Nyabare Rosbel -    Secretary
                                         3.   Mr. Tumwebaze Francis - Member
                                         4.   Mr. Muhwezi Godwin - Member



PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                         1. Mr. Kukiriza Milly -   APO




                                                                                            341
 COMPLIANCE AREA           SCORE /                          FINDINGS
                           RATING

Procurement Structures      7/10     Both the CC and the PDU is not fully established. The CC has 4
                                     members but a fifth member has been nominated and sent to CAO.
                            70%      The process of recruiting an SPO is also still going on.
                                     The user department does not initiate procurements and there is no
                                     use of PP Form 20.
Procurement                 6/10     The District has a list of pre-qualified providers but no
Planning                             Departmental Procurement plans. It also does not use any
                            60%      framework contracts.
                                     The Entity has a procurement plan for the current FY 2007/08
                                     though it was not submitted to the Authority.
Solicitation and bidding    9/10     Entity complies with the standard format issued by PPDA for the
procedures                           documents and the Law for the procedures.
                            90%      Most of the District’s procurements are made directly. This was
                                     discussed with the team that the officers met and it was agreed that
                                     other methods of procurements would be used to encourage
                                     competition
Evaluation procedures       7/10     Approval of Evaluation Committee members is done by the CC
                                     and the appropriate evaluation methodology used though there’s
                            70%      no record of Code of Ethical Conduct for the EC members.
                                     There were evaluation minutes seen on files.




                                                                                                  342
Contract     placement,       4/10              The best evaluated Bidder is given notice but no notice is given to
award and management                            the unsuccessful bidders. There was no evidence of
                              40%               execution/performance of contract within the contractual
                                                completion date.
                                                The District does not post notices of the contract award to the
                                                PPDA website.
                                                There were no documents seen evidencing the involvement of user
                                                departments in the certification of payments.
Reporting                      4/6              The District has not been submitting procurement quarterly reports
                                                to the Authority and its reporting is not up to date.
                              67%               A sample of the reports reviewed indicates that there is use
                                                Standard Formats.
Performance of Contracts       5/8              Minutes are in place though not recorded on the appropriate forms.
Committee                                       There’s no record of the Acceptance of Code of Ethical Conduct
                              63%               in Business by CC members present of PP Form 211.
                                                Contracts committee had not awarded any retrospective approvals.
Record Keeping                 4/8              There exists a Record/filing system in the PDU.
                                                There were no records of the supplier appraisal performance.
                              50%               All procurements have the standard procurement reference
                                                numbers.
Aggregate Score and
Compliance Rating             64%                                  SATISFACTORY



 RECOMMENDATIONS

     1.  The District should file PP Forms 220 and 221 with the Authority after the recruitment process.
     2.  The different departments in the district should submit departmental procurement plans.
     3.  The user department should always initiate procurements using LG PP Form 1.
     4.  The Entity should submit a copy of the procurement plan to PPDA.
     5.  The District should use framework contracts for commonly procured items.
     6.  Entity should use methods of procurements that are appropriate to the threshold and
         circumstances.
     7. The CC should always sign the record of acceptance of the code of Ethical Conduct in Business.
     8. There should also always be a record of the evaluation minutes on file for a particular
         procurement showing what transpired in the meeting of the evaluation committee.
     9. Entity should always give notification of award to unsuccessful bidders in writing as it’s a law
         requirement.
     10. The District should post notices of contract award to the PPDA website for the statutory display
         period.
     11. The user Department should be involved in certifying payments of the contractual sum.
     12. The District should ensure that quarterly reports are submitted by the 15th day of each quarter for
         the preceding quarter and that all PP Forms are filled and CC minutes attached to reports as this
         aids the Authority as it reviews the reports.
     13. The CC minutes should be recorded on PP Form 210.
     14. The CC members must always sign the record of Acceptance of Code of Ethical Conduct in
         Business during the CC Meetings.
     15. The District should keep a record of supplier Appraisal/Performance.




                                                                                                            343
NAME OF PDE: Kisoro District Local Government


DATE OF ASSESSMENT: 2nd - 3rd July 2008


MANDATE: To provide quality service, a health and clean environment and uphold Democratic
          governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): GOU, Donor Funds & Local revenue


SIZE OF PDE: Approximately 903 members of staff


ACCOUNTING OFFICER (Name): Mr. Rubuuka David


CONTRACTS COMMITTEE MEMBERS (Names):

                                         1.   Dr. Ndizihiwe Assay    Chairperson
                                         2.   Eng. Tulimaaso Wilbrod Secretary
                                         3.   Eng. Areeno Nelson     Member
                                         4.   Dr. Kesande Teopista   Member
                                         5.   Mr. Deinamo Francis     Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                         1. Mr. Muhanguzi Richard – SPO
                                         2. Mr. Kwizera Benon – APO




                                                                                            344
      COMPLIANCE AREA              SCORE /                            FINDINGS
                                   RATING

Procurement Structures              10/10    •   Both the CC and the PDU are fully established. The CC has 5
                                                 members and have been approved by PS/ST.
                                    100%     •   PP Forms 220 and 221 not filed with the Authority.
Procurement                         8/10     •    The District has a list of pre-qualified providers and the user
Planning                                          departments initiate their procurements. There’s no use of
                                    80%           framework contracts though.
                                             •    The District has an Assets Register with provision for asset
                                                  disposal planning.
                                             •    It was with the Finance department.
                                             •    The Entity has a procurement plan for the current FY
                                                  2007/08 and it was submitted to the Authority.
Solicitation    and      bidding    6/10     •   Entity complies with the standard format issued by PPDA for
procedures                                       the documents and the Law for the procedures.
                                    60%      •   There was evidence of Records of Bid submissions and
                                                 Opening on the PDU file.
                                             •   The minimum periods was not observed for all procurements.
Evaluation procedures               5/10     •   Approval of Evaluation Committee members is done by the
                                                 CC and the appropriate evaluation methodology used.
                                    50%      •   Records of



                                                                                                        345
                                                     •    Evaluation Reports were seen on some file.


Contract placement, award and          4/10          •    The best evaluated Bidder is sometimes given notice and the
management                                                notice to the unsuccessful bidders is put onto the District’s
                                       40%                notice board.
                                                     • There was some evidence of execution/performance of
                                                          contract within the contractual completion date but not in all
                                                          cases.
                                                     • There was no evidence of involvement of user departments in
                                                          certifying the contractual sums.
Reporting                               5/6           • The District has been submitting reports to the Authority but
                                                     is not up to date.
                                       83%

Performance      of    Contracts        5/8          •    Minutes are in place and recorded on the appropriate forms.
Committee                                            •    There’s a record of the Acceptance of Code of Ethical
                                       63%                Conduct in Business by CC members present of PP Form 211
                                                          but not in all cases.
Record Keeping                          4/8          •    There exists a Record/filing system in the PDU.
                                                     •    There were no records of the supplier appraisal performance.
                                       50%
Aggregate Score and
Compliance Rating
                                       65%                                SATISFACTORY



     RECOMMENDATIONS

         1. The District should file PP Forms 220 and 221 with the Authority.
         2. The District is encouraged to make use of framework contracts for repeatedly procured items.
         3. The minimum bidding period should always be observed in all instances for the procurements
             conducted.
         4. The District should keep the records of evaluation reports on the files of the various
             procurements.
         5. The Contracts Committee should always approve the Evaluation reports in accordance with
             Regulation 84(4).
         6. Notice of the best evaluated bidder is a mandatory requirement under the law and as such the
             Entity should always give.
         7. The unsuccessful bidder should always be given notice in writing as provided for under
             Regulation 86(5).
         8. The user departments should always be involved in the management of the contracts.
         9. The District should ensure that quarterly reports are submitted by the 15th day of each quarter for
             the preceding quarter and that all PP Forms are filled and CC minutes attached to reports as this
             aids the Authority as it reviews the reports.
         10. The District should keep a record of supplier Appraisal/Performance.




                                                                                                               346
NAME OF PDE: Luwero District Local Government


DATE: 21st – 23rd April 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Central Government Grants, District Livelihood Support
                     Programme (DLSP), UPHOLD (support to orphans), Local
                     Revenue (ground rent, markets, taxi parks)


SIZE OF PDE: Has a total of 322 staff, 3 Town Councils and 10 Sub Counties; Total annual
             budget for Financial Year 2007/8 is 18bn/=.


ACCOUNTING OFFICER (Name): Mr Daniel Kirenda


CONTRACTS COMMITTEE MEMBERS (Names):

                                      1. Dr. B. Agaba              Ag. Chairperson
                                      2. Engineer Ssebidde Vincent Member
                                      3. Ms Madina Nabukera        Member.


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                      1. Mr. Kiddu Sirajje Nsubuga SPO
                                      2. Mr. Sempagama Godfrey PO
                                      3. Mr. Sserubiri Edrisa      APO




                                                                                           347
  COMPLIANCE AREA              SCORE / RATING                    FINDINGS


Procurement Structures              8/10        •   PP Form 20 were not used for initiating
                                                    procurements;
                                    80%         •   Not all initiations are reported/channeled to
                                                    PDU;
                                                •   Procurement processes are not audited

Procurement Planning                7/10        •   Assets Register was not seen though reported to
                                                    be in place;
                                    70%         •   Entity does not use Framework contracts.
Solicitation   and   bidding        1/10        •   Records on issue of solicitation documents, and
procedures                                          bid submissions and opening not seen
                                    10%
Evaluation procedures               2/10        •   EC members were approved once by CC for all
                                                    contracts;
                                    20%         •   Records on evaluation reports and minutes not
                                                    seen
Contract placement, award           2/10        •   Records on approval of contract documents and
and management                                      contract management not seen
                                    20%
Reporting                            2/6        •   Quarterly reports have not been submitted to
                                                    PPDA up to date



                                                                                              348
  COMPLIANCE AREA              SCORE / RATING                         FINDINGS


                                    33%
Performance   of   Contracts        3/8               •   CC proceedings are not reported on PP Form
Committee                                                 210 and 211
                                    38%
Record Keeping                       3/8              •   There is no filing system in place but have
                                                          started to keep records for individual cases.
                                    38%               •   There were no records of supplier appraisals.
Total Score and
Overall Rating of PDE                                              UNSATISFACTORY
                                    39 %

RECOMMENDATIONS

   1. PPDA should orient the newly recruited PDU staff on record keeping.
   2. The District should file PP Forms 220 and 221 with the Authority in accordance with Regulation
       15(1) and 23(1) & (2) of the Procurement Regulations.
   3. Use departments should use PP Form 20 to initiate procurements and forwards them to the PDU.
   4. The District’s internal Auditor should the procurement and Disposal processes, payments and
       deliveries to the district.
   5. The District is encouraged to use framework contracts for frequently procured items in
       accordance with Regulation 62(5)(g) of the Local Government (PPDA) Regulations.
   6. The entity should prepare and submit quarterly reports to PPDA in accordance with section 94D
       of the PPDA Act 1/2003.
   7. The proceedings of the CC should be recorded on PP Forms 210 and 211 and such forms filed.
   8. The entity should have a filing system in place and continue to maintain files for all the
       outstanding individual cases.
   9. Entity should seek Solicitor General’s approval for all procurements above 50 Million Uganda
       Shillings.
   10. All CC decisions on a submission should be made on LG PP Form 20.
   11. Standard procurement reference numbering should be used on each individual case procured with
       reference to Guideline 3 of 2008.
   12. All User departments should submit contract management and monitoring reports to the PDU.
   13. The Evaluation Committee should always have the Evaluation reports prepared after carrying out
       the exercise and such reports should be approved the Contracts Committee.
   14. The District should make an effort to appraise the performance of its suppliers.




                                                                                                   349
NAME OF PDE: Masaka District Local Government


DATE OF ASSESSMENT: 9th – 10th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Releases from Central Government and Donors


SIZE OF PDE: Large


ACCOUNTING OFFICER: Mr.George Tulume


CONTRACTS COMMITTEE MEMBERS (Names):

                                     1.   Dr. Kanoonya Paul           Ag. chairperson
                                     2.   Eng.Jjuko Elias             Member
                                     3.   Ms. Musisi Lillian          Member
                                     4.   Mr. Mr.Muggaga David        Member
                                     5.   Mrs. Juliet N Mayanja       Member


PROCUREMENT AND DISPOSAL UNIT MEMBER (Names):

                                     1. Ms Hadija Nankya          Procurement Officer




                                                                                        350
    COMPLIANCE AREA              SCORE /                    FINDINGS
                                 RATING

Procurement Structures            4/10     •   The PDU has never been established and there is
                                               only one Procurement Officer who shares an
                                  40%          office with two other Finance Officers due to
                                               lack of office space
                                           •   The user dept doesn’t initiate their procurements
                                               on pp form 20.
                                           •   The Internal Auditor has not audited the
                                               procurement and disposal processes for the
                                               period under review.
                                           •   One of the CC members is the Secretary to the
                                               CC which does not comply with the law.
Procurement Planning              6/10     •   The approved Pre-Qualification/Short list of
                                               Providers, departmental and a consolidated
                                  60%          procurement plans exist.
                                           •   There is no use of frame work contracts for
                                               repetitively procured items.
Solicitation   and     bidding    5/10     •   There are no records of issue of Solicitation
procedures                                     documents.
                                  50%      •   All Solicitation documents use the standard
                                               format issued by the PPDA.
                                           •   There are records of bid submission and opening



                                                                                                   351
                                                         though not formatted to the standard of the law.
                                                 •       The minimum bidding is not always observed.
Evaluation procedures             10/10          •       Approval of Members of the evaluations
                                                         committee is done every time they are carrying
                                  100%                   out an evaluation.
                                                 •       Evaluation Methodology used is appropriate
                                                 •       There is some evidence of Acceptance of Code
                                                         of Ethical Conduct for EC members.
Contract placement,     award      6/10          •       The Notice of Best Evaluated bidder and Award
and management                                           are only posted on the PDE Notice Board but are
                                  60%                    not sent on the PPDA website.
                                                 •       Contract documents are approved by the CC.
                                                 •       There is some evidence of execution of some f
                                                         the contracts within the contractual period.
                                                 •       Unsuccessful bidders are not notified.
                                                 •       There is evidence of involvement the User
                                                         Depts. in the Certifying payments of the
                                                         Contractual Sum.
Reporting                          1/6           •       Only quarterly reports have been submitted but
                                                         the standard formats are not used, PP Forms
                                  17%                    200,201,202are not filed and the CC minutes are
                                                         not attached.

Performance   of   Contracts       4/8           •       There are no records of Acceptance of Code of
Committee                                                Ethical Conduct in Business by CC present on
                                  50%                    PP Form 211 in all the CC minutes.
                                                 •       There are no records of CC decision on a
                                                         submission on PP/DPA Form.
                                                 •       The CC has not granted any retrospective
                                                         approval.

Record Keeping                     3/8           •       Record/filling system exists though records filed
                                                         don’t contain all the requirements of the law and
                                  38%                    procurement files are kept in departments
                                                         because the PDE has no PDU.
                                                 •       Individual cases don’t have the standard
                                                         procurement reference numbering.
                                                 •       There       is      evidence     of       supplier
                                                         appraisal/Performance

Aggregate Score and Overall       54%                    MODERATELY SATISFACTORY
Rating of PDE

                                                     .
 RECOMMENDATIONS

     1. The Accounting Officer and District Technical Planning Committee need more training on the
        PPDA law. There is need to urgently establish a PDU because all procurement files are scatted in
        several departments.
     2. Pp form 221 be filled and filed with PPDA.
     3. The Internal Auditor must Audit all the procurement and disposal process, payments and
        deliveries.


                                                                                                              352
4. The user depts. must start initiating all the procurements on PP form 20 before commencement.
5. The process of recruiting a senior procurement officer and assistant procurement officer should be
    expedited.
6. Frame work contracts should be used for repetitively procured items.
7. Records of issue of solicitation documents, bid submission and opening should be recorded on PP
    forms and filed in their respective files.
8. The minimum bidding period must be observed always.
9. All the Evaluation procedures are compliant.
10. Notice of Best Evaluated bidder and Notice of award should be posted on the PDE notice board
    and PPDA webs for statutory display period.
11. Unsuccessful bidders should be notified in writing.
12. All contracts should be executed within the completion dates.
13. All monthly Reports should be written using the standard formats and submitted on time.
14. The CC members present should accept and sign the Code of Ethical Conduct in business on PP
    Form 211 when approving or rejecting procurements proceedings.
15. All CC decisions on a submission should be made on PP/DPA Form and filed by the CC
    secretary.
16. All records filed must contain all the requirements of the law and all the procurement files are
    supposed to be kept in the PDU.
17. Standard procurement reference numbering should be used on each individual case procured.




                                                                                                353
NAME OF PDE: Mbale District Local government


DATE OF ASSESSMENT: 13th - 14th August 2008


MANDATE: Manage To provide quality service, a health and clean environment and uphold
         Democratic governance thereby promoting social, economic development in the
         District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Government of Uganda (Consolidated Fund)


SIZE OF PDE: Large


ACCOUNTING OFFICER: Mr. Owuma Steven


CONTRACTS COMMITTEE MEMBERS: (Names)

           1.   Mrs. Mwambu Magdalen        Production Coordinator            Chairperson
           2.   Dr. Abwaino Francis         District Medical Officer          Member
           3.   Ms. Mwesigwa Harriet        Education Officer /Inspectorate   Member
           4.   Mr. Were Musa               Senior Assistant Secretary        Member
           5.   Mr. Dderme    Fred                                            Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

           1. Mr. Bwayo Patrick             Senior Procurement Officer
           2. Ms. Nagudi Regina             Procurement Officer
           3. Mr. Nikki Allan               Assistant Procurement Officer




                                                                                            354
  COMPLIANCE           SCORE /                           FINDINGS
     AREA              RATING

Procurement             6/10     •   The Accounting Officer has appointed the Contracts
Structures                           Committee and these were approved by PS/ST.
                        60%      •   There is a fully established PDU which is appropriately
                                     staffed.
                                 •   The internal audit department audits the procurement
                                     processes but the audit reports were not availed to the
                                     Authority.
                                 •   PP form 1 is used in the initiation of procurements in some
                                     instances.
Procurement             5/10     •   Entity has no approved procurement plan but is in the
Planning                             process of compiling the procurement plan in the PPDA
                        50%          format.
                                 •   Some Departmental plans were seen on record.
                                 •   A copy of the assets register with the provision of asset
                                     disposal planning was not availed.
                                 •   Frame work contracts are only used for fuel and lubricants.
Solicitation     and    10/10    •   Most of the sampled procurement files had records of issue
bidding procedures                   of solicitation documents; record of bid submission and
                        100%         opening and copies of the solicitation documents issued to



                                                                                                   355
                                  the bidders.
                              •   The methods used were not appropriate to the threshold
                                  provided for under the Local Governments (PPDA)
                                  Guidelines.
                              •   Minimum bidding periods observed
Evaluation             7/10   •   Many of the sampled procurement files lacked the approval
procedures                        of members of the Evaluation Committee and record of
                       70%        acceptance of Code of Ethical Conduct for the Evaluation
                                  members
                              •   Some of the evaluation minutes an reports were not on the
                                  procurement files.
                              •   Some of the evaluation reports are not in the standard
                                  formats prescribed under the Local Governments (PPDA)
                                  Guideline 7/2008.
                              •   Approval of Evaluation Reports is done by the Contracts
                                  Committee.
Contract placement,    3/10   •   Most of the sampled procurement files lacked contract
award          and                documents.
management             30%    •   No contract management records were on the files.
                              •   Notices of Best Evaluated Bidder were not on file
                              •   The Entity does not post the notice of best evaluated bidder
                                  and notice of contract award on the PPDA website
                              •   No record of notification of the award to the unsuccessful
                                  bidders on the sampled procurement files.
                              •   No record for approval of the contract document by the
                                  Contract Committee found on the sampled files.
                              •   No record of seeking approval from the Solicitor General for
                                  contracts above UShs. 50m seen on some procurement files.
                              •   Some records were seen to evidence the involvement of the
                                  user departments in certifying payment of the contractual
                                  sums.
Reporting              2/6    •   Entity is not up to date in the monthly procurement and
                                  disposal reporting. At the time of the compliance, the Entity
                       33%        had last reported in September 2007.
                              •   Entity does not adhere to the standard format in the
                                  quarterly reports as prescribed by the Local Governments
                                  (PPDA) Guideline 6/2008monthly reporting
Performance       of   6/8    •   Contracts Committee meets regularly
Contracts Committee           •   The Committee members do not sign the record of
                       75%        acceptance of code of ethical conduct in business at each
                                  meeting
                              •   Contracts Committee decisions on submissions were
                                  contained in the minutes
                              •   No evidence seen that the Contracts Committee has granted
                                  retrospective approvals.
Record Keeping         3/8    •   The record/filling system is in place but needs strengthening
                                  by availing adequate storage facilities to the PDU.
                       38%    •   The procurement files do not contain all the requirements of
                                  the law.
                              •   Procurements reference numbers do not adhere to the format
                                  as prescribed by the Guideline.
                              •   The records sampled were kept by Finance and
                                  Administration Section.



                                                                                                  356
                                         •   No record of supplier appraisal/performance seen on record.


Aggregate Score and
Compliance Rating            58 %                     MODERATELY SATISFACTORY




 RECOMMENDATIONS

     1.    Framework Contracts should be used for repetitive contracts.
     2.    The entity must adhere to PPDA formats when using solicitation documents.
     3.    The evaluation reports on file should follow the evaluation criteria in the solicitation document.
     4.    All of the files should have evaluation reports.
     5.    Contract Document should be on file and contracts management records should also be on file
     6.    Proper filing must be done so that each procurement has its on complete file with all documents
           pertaining to it.
     7.    All unsuccessful bidders should be notified in writing for the individual procurements.
     8.    The Entity should seek Solicitor General’s approval for all procurements above 50 Million
           Uganda Shillings.
     9.    At every meeting the CC members must sign the acceptance of Code of Conduct in Business.
     10.   All CC decisions on a submission should be made on LG PP Form 20.
     11.   Standard procurement reference numbering should be used on each individual case procured with
           reference to Guideline 3 of 2008.
     12.   All User departments should submit contract management and monitoring reports to the PDU.
     13.   PDU should get copies of contract payment records that are issued by the Finance dept.




                                                                                                           357
NAME OF PDE: Moyo District Local Government


Date of Assessment: 22nd-23rd July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.



LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): GOU and Local Revenue.


SIZE OF PDE: Large


ACCOUNTING OFFICER (Name): Mr. Nandala Michael


CONTRACTS COMMITTEE MEMBERS (Names):
                                          1.   Tabu Job                Chairman
                                          2.   Lemerika George         Member
                                          3.   Maali Michael           Member
                                          4.   Drichi Henry            Member
                                          5.   Jumanywal Opoka James   Secretary



PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):
                                                1. Mr. Madra           APO




                                                                                     358
COMPLIANCE AREA            SCORE/RATING                     FINDINGS

Procurement Structures         6/10       •   All 5 members of the contracts committee were
                                              approved by PS/ST.
                               60%        •   The District has just recruited an APO and it is in
                                              the process of recruiting a PO.
                                          •   User departments do not use PP Form 20.
                                          •   The Internal auditor audits the procurement and
                                              disposal process, payments and deliveries.
Procurement Planning           7/10       •   Procurement Plans are in place both for
                                              departments and for the entire PDE.
                               70%        •   The PDE did not use framework contracts for any
                                              of its regular procurements.
                                          •   There is no comprehensive asset register at the
                                              PDE.
Solicitation and Bidding       6/10       •   The District does not use standard bidding
Procedures                                    documents issued by the PPDA.
                               60%        •   The minimum bidding period is some times
                                              observed.
                                          •   There a few copies of bid submission an opening
                                              for a few contracts.
Evaluation Procedures          6/10       •   Evaluation Committee did not sign the ethical
                                              code of conduct.


                                                                                                359
COMPLIANCE AREA            SCORE/RATING                               FINDINGS

                                 60%              •    No CC approval of evaluation reports or
                                                       evaluation committee members.
Contract    Placement,           1/10             •    Contract management records were not included
Award and Management                                   on the files reviewed.
                                                  •    Unsuccessful bidders are not notified.
Reporting                         5/6             •    2 quarterly reports were outstanding at the time of
                                                       the visit
                                 83%
Performance of Contracts         2/10             •    CC did not sign ethical code of conduct.
Committee                                         •    CC minutes were not signed and they did not use
                                                       the approved forms for their records and
                                 25%                   approvals.
Record Keeping                    1/8             •    The entity did not have proper filing with some of
                                                       the cases
                                 13%              •    Procurement reference numbers that were used
                                                       were not standard
                                                  •    There were no individual files for each of the cases
                                                       reviewed
Total    Score      and
Compliance Rating                47%                    MODERATELY SATISFACTORY


RECOMMENDATIONS

   1. Accounting Officer should ensure that the PDU is fully established with all members and file PP
      Form 221 with the Authority.
   2. Entity should use framework contracts for routine items or commonly procured items.
   3. Entity should maintain an Asset Register and a Disposal Plan
   4. Use of PPDA Standard Bidding Documents.
   5. Evaluation Committee should sign ethical code of conduct
   6. Contracts Committee should ensure approval of all Evaluation Committee members and
      Evaluation reports
   7. Contracts Committee should sign ethical code of conduct
   8. All Procurements should be filed on separate files with prescribed Procurement Reference
      Numbers.
   9. The District should ensure timely submission of quarterly reports which is by the 15th day of each
      month for the preceding quarter.




                                                                                                          360
NAME OF PDE: Mpigi District Local Government


DATE OF ASSESSMENT: 30th June – 4th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): GOU and Donors


SIZE OF PDE: 3,200 staff


ACCOUNTING OFFICER: Mr. Henry Harrison Makumbi


CONTRACTS COMMITTEE MEMBERS (Names):

                                     1.   Mr.Mwanje Anthony       chairperson
                                     2.   Ms. Namutebi Veronica   Member
                                     3.   Mrs.Lunyirika Martha    Member
                                     4.   Mr. Katumwa Simon       Member

PROCUREMENT AND DISPOSAL UNIT MEMBER (Names):

                                     1.   Mr. Kaggwa Habib         SPO
                                     2.   Mr. Ssenyomo Isaac       PO
                                     3.   Miss. Nakiwala Josephine APO




                                                                                     361
     COMPLIANCE AREA               SCORE /                         FINDINGS
                                   RATING
Procurement Structures               7/10    •   The CC members are four because one left the district.
                                             •    Pp form 220 is filed with the PPDA.
                                    70%      •   The user dept doesn’t initiate their procurements on pp
                                                 form 20.
                                             •   The Internal Auditor audits the procurement and
                                                 disposal processes
                                             •   The whole PDU has just one asst.Procurement officer
                                                 yet the workload is a lot.
                                             •   There is an established PDU and PP form 221is filed
                                                 with PPDA.
Procurement Planning                7/10     •   There are some departmental procurement plans.
                                             •   There is lack of planning in some departments.
                                    70%      •   There is no use of frame work contracts for repetitively
                                                 procured items.
Solicitation   and       bidding    9/10     •   There are records of issue of Solicitation documents
procedures                                       though not on pp forms.
                                    90%      •   Among the ten Solicitation documents, only a few were
                                                 written using the standard format issued by the PPDA.
                                             •   There are records of bid submission and opening
                                                 though not formatted to the standard of the law.
Evaluation procedures               10/10    •   There are records of Approval of Members of the
                                                 evaluations committee by the CC every time they are
                                    100%         carrying out an evaluation.
                                             •   Evaluation Methodology used in most cases is



                                                                                                            362
                                                 appropriate.
                                             •   There is evidence of Acceptance of Code of Ethical
                                                 Conduct for EC members.
Contract placement, award and      6/10      •    Notices of Best Evaluated bidder and contracts award
management                                       are posted on the PDE notice Board but they are not
                                   60%           posted on the PPDA website.
                                             •   There is some evidence of execution of some contracts
                                                 within the contractual period.
                                             •   Unsuccessful bidders are not notified
Reporting                          0/6       •   There are no records of Quarterly reports.
                                   0%
Performance      of   Contracts    8/8       •   The CC has not granted any retrospective approval. But
Committee                                        they are only four members instead of five because one
                                  100%           member left the job.
                                             •   Record of Acceptance of Code of Ethical Conduct for
                                                 CC members present is available and on PP Form 211.
                                             •   There are records of CC decision on a submission on
                                                 PP/DPA Form.
Record Keeping                      5/8      •   Record/filling system exists in the PDU though records
                                                 filed don’t contain all the requirements of the law.
                                   63%       •   Some cases have the standard procurement reference
                                                 numbering and others don’t.
                                             •   There is evidence of supplier appraisal/Performance for
                                                 Local Revenue collection Providers
Total Score and Overall
Rating of PDE                      72%                           SATISFACTORY


     RECOMMENDATIONS

     1. There is need for the AO to nominate one person to replace the CC member who left the district.
     2. The user departments should start initiating all the procurements on PP form 20
     3. All user depts. should submit their departmental plans on time to enable the PDU aggregate
         procurement requirements into procurement plans.
     4. Frame work contracts should be used for repetitively procured items.
     5. All Solicitation documents should be made using the standard format issued by the PPDA.
     6. Records of issue of solicitation documents, bid submission and opening should be recorded on PP
         forms.
     7. Much as the EC is fully constituted, they need to train more members because it’s only two
         members who have been trained on how to carry out evaluations and only one Civil Engineer
         who is r responsible for bills of quantities and issuing of completion certificates.
     8. Notice of Best Evaluated bidder and Notice of award should be posted on the PDE notice board
         and PPDA webs for statutory display period.
     9. Unsuccessful bidders should be notified in writing.
     10. All contracts should be executed within the completion dates.
     11. All Quarterly Reports should be written using the standard formats and submitted on time.
     12. The performance of CC members’ good job.
     13. The filing system needs a lot of improvement and all records filed should contain all the
         requirements of the law.
     14. Standard procurement reference numbering should be used on each individual case procured.




                                                                                                           363
NAME OF PDE: Mubende District Local Government


DATE OF ASSESSMENT: 30th June – 1st July 2008

MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Central Government, Internally Generated and Donors


SIZE OF PDE: 2,592 Staff of which are 1,771 are teachers


ACCOUNTING OFFICER (Name): Mr. Nicholas Muron Ocakara


CONTRACTS COMMITTEE MEMBERS (Names):

                                         1.   Eng Charles Mubiru           Chairman
                                         2.   Mrs. Benny Bugembe           Member
                                         3.   Mr. James Ssebudde           Secretary
                                         4.   Dr. Wilson Mubiru            Member
                                         5.   Ms. Norah Kizza              Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                         1. Mr. Issa Ssemwogerere   Head PDU
                                         2. Mr. David Kambere       PO
                                         3. Ms. Milly Nandawula     APO




                                                                                       364
     COMPLIANCE AREA               SCORE /                      FINDINGS
                                   RATING

Procurement Structures              4/10     •   The letters seen by compliance team show that: -
                                             •   Mr. James Ssebudde was appointed on 13th July 2008
                                    40%          for three years.
                                             •   The rest of the CC members were appointed on 26th
                                                 June
                                             •   2006 for the 2006/07 Financial Year.
                                             •   No record of PS/ST approval on file.
                                             •   PP Forms 220 and 221 not filed with PPDA.
Procurement                         6/10     •   District has a procurement Plan available, but lacks
Planning                                         input of Health, Education and Mubende Hospital.
                                    60%      •   The District has a shortlist of providers.
                                             •   There were no records of departmental procurement
                                                 plans.
                                             •   The District has an Assets Register with a provision
                                                 for asset disposal.
                                             •   The District does not make use of framework
                                                 contracts for commonly procured items.
Solicitation   and       bidding    0/10     •   No record of use of standard bidding documents.
procedures                                   •   Methods used are not appropriate to threshold and
                                     0%          circumstances.
                                             •   The District does not observe the minimum bidding


                                                                                                        365
                                                   period.
                                               •   There were no records of bid submission and
                                                   opening.
Evaluation procedures               5/10       • Evaluation report not in accordance with the standard
                                                   formats;
                                    50%        • No record of evaluation minutes on file.
                                               • The contracts committee does not approve the
                                                   composition of the Evaluation Reports.
                                               • The contracts committee approves the Evaluation
                                                   reports.
Contract placement, award and       0/10       • No record of SG approval of contract above 50
management                                         Million.
                                    0%         • The unsuccessful bidders are not notified in writing
                                                   as required by law.
                                               • There was no evidence of involvement of user
                                                   department in certifying payment of contractual sum.
                                               • There was no evidence of execution of contract
                                                   within the contractual date.
Reporting                           4/6        • The District’s reporting status is not up to date.
                                               • Samples of reports reviewed use standard formats
                                    67%            and PP Forms.
                                               • The query regarding Mubende Taxi Park seen to
                                                   have amicably settled, though the administrative
                                                   review findings was not copied to PPDA.
Performance      of     Contracts   1/8    CC has been granting retrospective approvals for some
Committee                                  procurement
                                    13%
Record Keeping                       2/8   Complete record not available and the little is not together for
                                           each procurement
                                    25%
Total Score and rating of PDE
                                    31%                        UNSATISFACTORY




 RECOMMENDATIONS

     1. Entity should submit a record of PS/ST approval of the Contracts Committee to the Authority
     2. The PDU should ensure proper record keeping.
     3. The user departments should initiate procurements using PP Forms 20 in accordance with
         Regulation 65(1).
     4. The District should use framework contracts for commonly procured items.
     5. The District should use standard bidding documents issued by the Authority for the given
         contracts.
     6. The methods of procurements used should be appropriate to the thresholds and circumstances and
         the minimum bidding period should be observed.
     7. Copies of bid submission and opening should be put on file.
     8. The composition of the Evaluation Committee should always be approved by the contracts
         committee.
     9. The Evaluation committee should use the appropriate Evaluation methodology.
     10. The unsuccessful bidders should always be notified in writing as required by Reg. 86(5).



                                                                                                              366
11. The best Evaluated Bidder should be given notice and the contract award should be posted to the
    PPDA website.
12. The user department should be involved in certifying payment of the contractual sum.
13. The decisions of the contracts committee on a submission should be on PP/DPA.
14. There were contracts committee minutes on file but not recorded on the appropriate forms.
15. All procurements should be given individual procurement reference numbers.
16. The District should appraise the performance of its suppliers.




                                                                                               367
NAME OF PDE: Mukono District Local Government


DATE OF ASSESSMENT: 19th June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): GOU Funds and locally collected revenue from licenses, taxes and other
                     levies. There have also been some donor funds such as the STABEX
                     Fund for road construction from the EU.


SIZE OF PDE: Large


ACCOUNTING OFFICER (Name): Mr. George Eustace Gakwandi


CONTRACTS COMMITTEE MEMBERS (Names)

                                        1. Eng. Ssesanga Fred              Chairman
                                        2. Eng. Daniel Kamya               Secretary
                                        3. Mrs. Gertrude Kakungulu       Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names)

                                        1. Gilbert Lenald Walugembe   PPO
                                        2. Begayala Ibrahim           SPO
                                        3. Olga Nabirungi        PO




                                                                                       368
    COMPLIANCE AREA        SCORE/RATING                    FINDINGS

Procurement Structures                    •   This PDE does not have a fully functional CC.
                                              There are only 3 members.
                                          •   In addition, the CC needs training.
                                          •   The CAO indicated that there is a lot of
                               6/10
                                              political influence in the procurement process
                                              at the PDE and this is significantly hampering
                                              the smooth running of the PDU. PDU and CC
                               60%
                                              are intimidated by politicians to change
                                              decisions on contract award. The LCV
                                              Chairman was particularly singled out.
                                          •   The PDE does not use LG PP Forms.
Procurement Planning                      •   User Departments have not been involved in
                               4/10
                                              the preparation of the procurement plans to the
                                              extent that there was no one initiating some
                               40%
                                              items that appeared on the plan.
Solicitation and Bidding                  •   The use of non standard documents
Procedures                     6/10       •   Lack of observance of the minimum bidding
                                              period were a big problem in this area.
                               60%        •   There were no records of bid submission and
                                              bid opening on the files perused.
Evaluation Procedures          4/10       •   Members of the evaluation committees did not



                                                                                       369
                                      40%                   sign the acceptance of the ethical code of
                                                            conduct.
                                                        •   No record of the approval of the evaluation
                                                            report by the CC and in some instances the
                                                            evaluation report itself was not on file.

Contract Placement, Award                               •   Records pertaining to this compliance area
                                      2/10
and Management                                              were generally lacking in all the 5 files that
                                                            were available for review.
                                      20%
Reporting                              0/6              •   The PDE has not submitted quarterly
                                                            procurement reports for at least a year.
                                      0%
Performance of Contracts                                •   The Contracts Committee’s failure starts
                                       3/8
Committee                                                   mainly with not using standard forms for
                                                            recording decisions and its proceedings.
                                      38%
Record Keeping                                          •   There were some files present but these were
                                       1/8                  largely incomplete.
                                                        •   The District does not appraise its suppliers’
                                      13%                   performance.


Total Score of PDE and
compliance rating                     36%                           UN-SATISFACTORY


RECOMMENDATIONS:

   1. The Contracts Committee requires training and 2 more members should nominated and the names
       sent to PS/ST for approval.
   2. The PDU should be fully staffed and PP Form 221 filed with the Authority.
   3. The LC V should avoid interfering with the procurement process.
   4. PDU should ensure use of PPDA Standard Forms issued by the Authority in accordance with
       Regulation 66(4) of the Local Government (PPDA) Regulations.
   5. User Departments should prepare and submit departmental plans in accordance with Regulation
       62(1) of the LG (PPDA) Regulations.
   6. User Departments should initiate procurements as provided for in Regulation 65(1) of the Local
       Government Procurement Regulations.
   7. The District should always ensure that the minimum bidding period is observed for all contracts
       as provided for under Regulation 55(3).
   8. There should be records of bid submission and bid opening and such records should be filed as
       under Regulation 70(5), 71(11-13).
   9. The Contracts Committee should always approve the Evaluation Reports by the Evaluation
       committee and also approve the composition of such committee as under Regulation 84(4) and
       72(2) respectively.
   10. The Evaluation Committee should always sign the Code of Ethical conduct in business as
       provided for under Regulation 27(9) & (10).
   11. Accounting Officer should ensure submission of all outstanding quarterly reports and timely
       submission in future which is by the 15th day of the month for the preceding quarter.
   12. The District should appraise its suppliers’ performance in accordance with Regulation 119 and
       records filed.



                                                                                                    370
NAME OF PDE: Nakasongola District Local Government


DATE OF ASSESMENT: 10th -11th June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Releases from Central Government, Donors/ NGOs and internally
                     generated funds from revenue collection centers.


SIZE OF PDE: 369 staff; 1 Town Council and 8 Sub Counties; total annual budget for FY 2007/8 of
              9,034,623,140/= of which 1,876,178,122/= (21%) is spent on procurements.


ACCOUNTING OFFICER (Name): Mr. Paul Mubiru


CONTRACTS COMMITTEE MEMBERS (Names):

                                         1. Dr. Eswahu Sam               Member
                                         2. Ms. Nakamya Sarah            Member
                                         3. Mr. Arinaitwe Joseph         Member
                                         4. Mr. Ssengendo Michael        Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                         1. Mr. Kagwa Robert             SPO
                                         2. Mr. Kyeyune Stephen          PO
                                         3. Mr. Baleke Moses             APO




                                                                                           371
  COMPLIANCE AREA        SCORE /                           FINDINGS
                         RATING

Procurement Structures    7/10     •   The Accounting Officer has a clear understanding of his role
                                       for the overall responsibility of the procurement and disposal
                          70%          process.
                                   • There 4 CC members approved by PS/ST and PPDA PP Form
                                       220 was filed with the Authority
                                   • PDU is established, however, PP Form 221 has not been filed
                                       with PPDA
                                   • The User departments initiate procurements, however not on
                                       the PP Forms.
                                   • Internal Auditor does not audit the procurement and disposal
                                       process.
Procurement Planning      6/10     Entity has;
                                   • An approved pre-qualified list of providers.
                          60%      • A procurement plan for FY 2007/08 based on the approved
                                       budget.
                                   • A non up to date assets register.
                                   • There are no departmental procurement plans except for the
                                       Town Council.
                                   • Entity does not use framework contracts for the common user
                                       items.




                                                                                                372
  COMPLIANCE AREA              SCORE /                            FINDINGS
                               RATING

Solicitation   and   bidding    7/10      •   There are records of issue of Solicitation documents and
procedures                                    receipt of bids although all bids received for different
                                70%           procurements are recorded together where the deadline for bid
                                              submission is the same.
                                          •   Solicitation documents used were not in the PPDA formats;
                                              Since PPDA had not issued them.
                                          •   Appropriate procurement methods were used for all the
                                              sampled cases.
                                          •   Minimum bidding periods were observed.
Evaluation procedures           5/10      •   There were Evaluation reports on the few sampled cases,
                                              however without detailed methodology.
                                50%       •   No records on approval of EC by CC, detailed evaluation
                                              reports and Code of Ethical Conduct for EC members
Contract placement, award       7/10      •   BEB notice is always posted on the PDE notice board but
and management                                never on the PPDA website.
                                70%       •   Contracts Committee had approved some of the sampled cases.
                                          •   User Departments get involved in the certification of payment
                                              of Contractual sums by verify certificates.
                                          •   Unsuccessful bidders are never notified in writing.
                                          •   Entity does not seek SG approval.
Reporting                        4/6      •   PDU had compiled Quarterly reports, however had never
                                              submitted any to the Authority.
                                67%
Performance of Contracts         5/8      •   No record of Acceptance of Code of Ethical Conduct for CC
Committee                                     members, since Entity had just received the PPDA Formats.
                                63%       •   CC had never granted any retrospective approvals.
Record Keeping                   3/8      •   PDU just commenced to establish a filing system;
                                          •   Not all the relevant records are filed;
                                38%       •   Standard reference numbering is not used ;
                                          •   Entity has no supplier/performance appraisal system.
Total Score and
Overall Rating of PDE           61 %                            SATISFACTORY



RECOMMENDATIONS

    1. User departments should initiate all procurements on LG PP Form 1
    2. The Internal Auditor should audit the entire procurement and process, payment and deliveries in
       accordance with Regulation 28 of the LG (PPDA) Regulations 2006.
    3. User departments should prepare and submit procurement plans to the PDU in accordance with
       LG (PPDA) Regulations.
    4. Entity should use framework contracts for repetitively procured items
    5. PDU should record the issue of solicitation documents, bid submission and opening separately on
       the LG PP Forms for the different procurements.
    6. CC should always approve the Evaluation Committee members in accordance with Reg. 27 of the
       LG (PPDA) Regulations 2006.
    7. Appropriate evaluation methodologies should be used in accordance with Reg. 97 of the LG
       (PPDA) Regulations 2006.


                                                                                                      373
8. All the unsuccessful bidders should be informed in writing to ensure transparency.
9. All procurements should have relevant approvals i.e. Contracts Committee, Solicitor General (all
    procurements above 50 million Uganda Shillings) and Donors where applicable.
10. All signed Contracts should clearly state the completion date for monitoring and evaluation
    purposes.
11. PDU should have a record/filling system with all the relevant documents as stated in Reg. 46 of
    the LG (PPDA) Regulation 2006.




                                                                                               374
NAME OF PDE: Namutumba District Local Government


DATE OF ASSESSMENT: 4th – 5th June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Ug. Shs. 6.9 billion


SIZE OF PDE: 1,205 Employees


ACCOUNTING OFFICER (Name): Ms. Wanyenze Gimogoi Margaret


CONTRACTS COMMITTEE MEMBERS (Names):

                                            1. Dr. Mukama Silver        Chairperson
                                            2. Namasoko Daniel          Member
                                            3. Kyakulaga Francis        Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

1. Mr. Yusuf Kisanifu, who is by substantial appointment, a Sub county chief.




                                                                                      375
COMPLIANCE AREA                  SCORE/    FINDINGS
                                 RATING
Procurement Structures              3/10       The Contracts Committee has only 3 members
                                               instead of 5
                                    30%        The 3 members were approved by the ST to Treasury
                                               as required by PPDA Reg 45 (3).
                                               The PP form 221 was not filed with PPDA
                                               The Entity has not established a PDU with the
                                               requisite staffing level
                                               User departments did not initiate requirements on PP
                                               form 1
Procurement Planning                7/10       The Entity had a Procurement Plan though, it had not
                                               been submitted to the authority
                                    70%        There is no usage of framework contracts of
                                               repetitively procured items.
                                               The Entity lacked an assets register with provisions
                                               for asset disposal planning
Solicitation   and     bidding      6/10   •   The Entity did not use SBDs in its solicitations as
procedures                                     required by PPDA.
                                    60%
                                           •   There were no records for bid submissions and
                                               opening in some cases reviewed
                                           •   Lack of consistent use of appropriate procurement



                                                                                                     376
                                                   methods as in the case of (Procurement of garbage
                                                   collection contract in Namutumba town council
                                                   worth 36, 960,000/=though sourced through RFP,
                                                   was being referred to as open bidding!)
Evaluation procedures              8/10        • The Entity adhered to evaluation procedures.
                                               • All minutes of the evaluation committee meetings
                                   80%            were signed
                                               • Some members of the evaluation had not signed a
                                                record of acceptance of ethical conduct for EC members

Contract placement, award          3/10       • Copies of signed contracts existed though some were
and management                                    kept at different sites with no copies on file
                                   30%        • Some cases reviewed lacked copies of notices of best
                                                  evaluated bidders
                                              • There was no evidence of posting of notice of award on
                                                  the PPDA web site
                                              • Unsuccessful bidders were equally never notified
                                              • No evidence of user involvement in certification of
                                                  payments
Reporting                           0/6        • The entity was not up to date in terms of Monthly
                                                 reports to the Authority at the time of assessment.
                                    0%
Performance      of   Contracts     4/8        • There is no use of forms for meetings and record of
Committee                                         contracts committee decision
                                   50%         • There was no evidence of a retrospective approval
                                                • There is no consistent use of acceptance of code of
                                                  ethical conduct in business by CC members
Record Keeping                      1/8       • Procurement files exist but with incomplete records.
                                              • All cases reviewed did not have standard procurement
                                   13%            reference numbers
                                              • No records of supplier appraisal/performance exists in
                                                  the entity



Total Score and                    46%                  MODERATELY SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS

   1. The Accounting officer should fully constitute the CC as per Reg. 14
   2. The Accounting officer should expedite the recruitment and appointment of the Head and officers
      in the PDU as required by LGPPDA Reg. 14(2)
   3. User departments should initiate requirements on PP form 1
   4. The entity should prepare and submit the procurement and disposal plan to the Authority
   5. Such a procurement plan should be a consolidation of all departmental plans in the entity
   6. The entity should provide for asset disposal planning in the assets register
   7. Framework contracts for repetitively procured items should be adopted in the entity
   8. The entity should contact the Authority for the SBDs and intensify their usage as required by
      PPDA



                                                                                                       377
9. Records of bid submission and opening should be put in place as required under Reg.(70(5) and
    reg.71(11-13)
10. The entity should always seek clarifications from the Authority /or consult LG PPDA guidelines
    for appropriate procurement methods
11. All evaluation committee members should sign a record of acceptance of ethical conduct for EC
    members
12. Such signed copies should be put on the procurement action files they relate
13. Copies of signed contracts should be kept on the procurement file
14. Copies of notices of best evaluated bidder should be put on file
15. Notices of award should be posted to the PPDA web site as per Reg.44, 85(1)
16. Unsuccessful bidders should be notified.
17. Users should certify payments as required by Reg. 119.
18. The entity should submit all the outstanding quarterly procurement and disposal reports to the
    Authority as required under PPDA Reg. 14(m).
19. CC should consistently use forms provided by PPDA for conduct of meetings and record of
    contracts committee decision
20. CC members should sign acceptance of code of ethical conduct in business at all times of conduct
    of business as required under Reg. 20(1)
21. All records pertinent to a procurement should be put on a procurement file it relates
22. The entity should use standard procurement reference numbers as required under Reg. 65(3)
23. The entity should conduct a supplier appraisal/performance as required under Reg 119




                                                                                               378
NAME OF PDE: Nebbi District Local Government


DATE OF ASSESSMENT: 2nd July 2008


MANDATE:      To provide quality service, a health and clean environment and uphold democratic
              governance thereby promoting social, economic development in the District


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Government Funded and some projects are Donor Funded, also
                     locally Generated Revenue


SIZE OF PDE: 3140 members of staff including teachers.


ACCOUNTING OFFICER (Name): Mr. Joseph Balisanyuka


CONTRACTS COMMITTEE MEMBERS (Names):

                                         1.   Dr. Anthony Androionzi    Chairperson
                                         2.   Eng. Mavenjina Jimmy      Member
                                         3.   Ms. Fauling Doreen        Member
                                         4.   Mr. Andrinzi Anthony      Member
                                         5.   Mr. Ojobbi John Baptist   Member (Proposed)


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                         1. Kasamba Alex Oyofuru        SPO
                                         2. Omwer Patrick               PO




                                                                                            379
                                          •
      COMPLIANCEAREA       SCORE/RATING                    •   FINDINGS

Procurement Structures         5/10       •   Accounting officer seems not to know all his
                                              roles, the CC approved members are only four
                               50%            and the PDU is established. with 2 staff.
                                          •   The fifth member’s name has been sent to
                                              PS/ST for approval.
                                          •   PP Form 220 and 221 not filed with PPDA.
                                          •   The User department initiates all
                                              procurements.
                                          •   The Internal Auditor audits the deliveries.
Procurement Planning           5/10       •   Has no procurement plan but has departmental
                                              procurement plans.
                               50%        •   The District has a prequalification list of
                                              providers.
                                          •   The District has an Assets Register that is kept
                                              with the Finance Department.
                                          •   The District makes no use of framework
                                              contracts.
Solicitation and bidding       8/10       •   Uses standard bidding documents but in some
procedures                                    cases methods don’t match with thresholds
                               80%        •   The District some times observes the



                                                                                         380
                                                           minimum bidding periods depending on the
                                                           method of procurement used.
                                                       •   There were records of bid submission and
                                                           opening on files.
Evaluation procedures                   6/10           •   Evaluation procedures are followed but no
                                                           evidence of signing ethical code by members
                                       60%                 of the evaluation committee.
                                                       •   The Contracts Committee approves the
                                                           composition of the Evaluation Committee but
                                                           does not approve the Evaluation reports.
                                                       •   There were records on Evaluation reports on
                                                           files perused.

Contract placement, award and           3/10           •   Unsuccessful bidders are not notified in
management                                                 writing
                                       30%             •   Notices to the best evaluated bidder are posted
                                                           on the notice board but not on the PPDA
                                                           website.
                                                       •   There was no evidence of involvement of user
                                                           department in certifying payment of the
                                                           contractual sum.

Reporting                               1/6            •   Quarterly reports are not submitted and there
                                                           is no use of procurement reference numbers
                                       17%
Performance of Contracts                4/8            •   The CC sits only when there are issues to
Committee                                                  discuss
                                       50%             •   The files perused did not have any records of
                                                           the Contracts Committee decisions on a
                                                           submission on PP/DPA.
                                                       •   The Contracts Committee has not granted any
                                                           retrospective approvals.
Record Keeping                          2/8            •
                                                       •   There is poor record keeping, documents are
                                       25%                 scattered.
                                                       •   The District does not use Procurement
                                                           reference numbers.
                                                       •   The District does not appraise its suppliers’
                                                           performance.

Total Score and                        49%
Overall Rating of PDE                                      MODERATELY SATISFACTORILY



 RECOMMENDATIONS

     1. The Accounting Officer and District Technical Planning Committee need more training on the
     PPDA law.
     2. PP Form 220 and 221should be filed with PPDA.
     3. The Internal Auditor should the procurement processes and payments.
     4. The PDU should always make a procurement plan out of the departmental procurement plans
     submitted by the different departments and submit a copy of it to PPDA.
     5. The District should use framework contracts for repetitively procured items.


                                                                                                     381
6. The procurement methods used should always match the thresholds in accordance with the law.
7. The Evaluation committee should always sign the Code of Ethical Code in Business.
8. The Unsuccessful bidders should always be notified in writing as required by law.
9. The District should submit quarterly procurement reports accompanied by the Contracts
    Committee minutes as required by law.
10. Procurement reference numbers should also be used for the different procurements conducted.
11. The PDU should improve the record keeping and the filing system for the District.
12. The user departments should start initiating all the procurements on LG PP Form 1.
13. The Sub county chiefs need training on the PPDA law.
14. The user department should always participate in certifying the contractual sum.
15. The Contracts Committee should always approve the Evaluation reports by the Evaluation
    Committee.
16. The District should appraise its suppliers’ performance.




                                                                                           382
NAME OF PDE: Oyam District Local Government


DATE OF ASSESSMENT: 18th June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
         governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (Gou/Donors & Local Revenue): 18 Billion Uganda Shillings. Procurement budget is
                                  estimated at 2.9 Billion Ug. Shillings.


SIZE OF PDE: Oyam District has 2 constituencies, 7 Sub Counties, 1 Town Council, 41 Parishes, 2
              Wards and 897 Villages.


ACCOUNTING OFFICER: Ms. Catherine Amal


CONTRACTS COMMITTEE MEMBERS (Names):

                           1.   Dr. Ogwal Tom- District Veterinary Officer - Chairperson
                           2.   Mr. Ochare Denis – District Planner - Member
                           3.   Mr. Ogwal S Peter – District Inspector of Schools - Member
                           4.   Ms.Margaret Acan Ogomarach – Nursing Officer- Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                           1. Mr. Malinga Geofrey Maxwell - Head PDU




                                                                                             383
  COMPLIANCE AREA              SCORE /                          FINDINGS
                               RATING

Procurement Structures          6/10     •   The Accounting Officer is knowledgeable of her roles in
                                             procurement.
                               60%       •   There are procurement structures in place; however user
                                             departments are less active.
                                         •   CC has four members
                                         •   Internal audits reports were not seen
Procurement Planning            5/10     •   Departmental Procurement plans are done.
                                         •   No Assets register and Disposal planning seen.
                                50%      •   PDE does not use framework contracts
Solicitation   and   Bidding    5/10     •   Fairly complied with use of standard solicitation
procedures                                   documentation and bidding procedures
                                50%      •   Record of issue of solicitation documents are incomplete
Evaluation procedures           6/10     •   Contracts Committee approves members of Evaluation
                                             committee. Evaluation reports need to improve.
                                60%
Contract placement, award       4/10     •   No evidence of notification of the award to unsuccessful
and management                               bidders.
                                40%      •   User departments are less involved in certifying payments

Reporting                        1/6     •   Monthly reports are not up to date. 3rd Quarterly Report not
                                             yet submitted. Standard formats are not used.



                                                                                                    384
  COMPLIANCE AREA          SCORE /                              FINDINGS
                           RATING

                             17%
Performance of Contracts      4/8        •   Contract's committee minutes are prepared. PP Form 210 & PP
Committee                                    Form 211 not seen.
                             50%         •   Evidence of retrospective approvals seen
Record Keeping                3/8        •   No record of Supplier Appraisal/Performance.
                                         •   No Proper filing system in place.
                             38%

Total Score and              47%                    MODERATELY SATISFACTORY
Overall Rating of PDE



RECOMMENDATIONS

   1. The PDU should ensure timely submission of quarterly reports in accordance with Regulation 40
       of the PPDA, 2003.
   2. The District should nominate a fifth member to the contracts committee have the name sent to
       PS/ST for approval and have PP Form 220 filed with PPDA.
   3. The PDU should also recruit more PDU staff and have PP Form 221 filed with PPDA.
   4. Records of particular procurements should have all the related documents put together using
       standard forms.
   5. PDU needs to improve on the filing system to ensure that each procurement has a procurement
       action file.
   6. Supplier appraisal/ performance should form part and parcel of the procurement process
   7. User departments should be involved in certifying payments in accordance with contractual sums.
   8. PDU should ensure that notice of best evaluated bidder is communicated to all unsuccessful
       bidders in writing.
   9. Framework contracts should be adopted especially for common user items.
   10. PDU should urgently set up an assets register and a disposal plan
   11. Internal auditor function should certify all payments and deliveries.




                                                                                                   385
NAME OF PDE: Pader District Local Government


DATE OF ASSESSMENT: 22nd – 23rd July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District local government


BUDGET (GOU/DONORS): Release from central government and donors


SIZE OF PDE: Large


ACCOUNTING OFFICER: Mr. Charles Otai


CONTRACTS COMMITTEE MEMBERS (Names):

                     1.   Mr. Richard Odoch Poromoi – Senior Assistant CAO, Chairperson
                     2.   Mr. Obali O. Charles – Senior Asistant Engineering Officer, Member
                     3.   Mr. Otto J. Baptist – Town Planner, Member
                     4.   Mr. Amone Charles Ben Akaka – District Education Officer, Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                     1.     Mr. Okello Anthony         Senior Procurement Officer
                     2.     Mr. Obwolo Samuel Komakech Assistant Procurement officer




                                                                                               386
    COMPLIANCE AREA             SCORE / RATING               FINDINGS


Procurement Structures               8/10        •   The PS/ST had approved 5 CC
                                                     members but one of them (Mr. Rajab
                                     80%             Epila, the former District Forestry
                                                     Officer) had left leaving only four
                                                     members of the CC.
                                                 •   The PDU is understaffed as revealed
                                                     by the SPO
Procurement                          3/10        •   The procurement plan is not in place
Planning                                             and the issue was brought to the
                                     30%             attention of the accounting officer
Solicitation and bidding             2/10        •   The entity does not use standard forms
procedures                                           as per regulations and the
                                     20%
Evaluation procedures                4/10        •   There is lack of technical knowledge
                                                     for people making the evaluations
                                     40%
Contract placement, award and        3/10        •   The entity did not avail any documents
management                                           to verify this
                                     30%




                                                                                              387
Reporting                                 1/6                •   The entity is not compliant generally as
                                                                 far as reporting is concerned and there
                                         17%                     is no evidence that monthly reports
                                                                 have ever been submitted to the
                                                                 Authority.
Performance of Contracts                  3/8                •   There is one member who left and each
Committee                                                        of the embers seems to be busy for
                                         38%                     most procurement work
Record Keeping                            2/8                •   The entity keeps scattered documents
                                                                 and there were no single procurement
                                         25%                     files availed and no cases were
                                                                 reviewed.
                                                             •   The person who was initially acting as
                                                                 Head PDU had not handed over and
                                                                 the new officer did not know where
                                                                 most of the records were.
Total Score and Overall Rating
of PDE                                   36%                       UN--SATISFACTORY



 RECOMMENDATIONS

     1. The Accounting Officer should replace the member of the Contracts Committee and have the
         person approved by the PS/ST.
     2. The entity needs to address its records management systems and the former acting head of
         procurement should handover to the new staffs to enable them take charge of the system.
         Referencing needs to be addressed
     3. The entity should prepare annual procurement plan in accordance with the law and submit a copy
         to PPDA as per regulations in addition to the required reports
     4. The PDU generally lacks facilities office space and the PDE should therefore find space for the
         PDU
     5. The entity should prepare a procurement plan.
     6. The contracts committee lacks one member to make it complete and this should be done
     7. Minutes of the contracts committee for the months of January –June are not available and the
         procurement officer argued that they were being typed and they should therefore be processed
         and adequately kept
     8. The entity should start using the various procurement and disposal forms in the various stages of
         the procurement cycle
     9. The contract committee minutes and records of proceedings are not done on standard forms
     10. Quarterly reports are not available and they have not been submitted to PPDA and this should be
         rectified




                                                                                                            388
NAME OF PDE: Pallisa District Local Government


DATE OF ASSESSMENT: 23rd June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
          governance thereby promoting social, economic development in the District


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Government Funded and some projects are Donor Funded


SIZE OF PDE: 3000 workers including teachers


ACCOUNTING OFFICER (Name): Mr. Abdullah Nsobya Kiganda


CONTRACTS COMMITTEE MEMBERS (Names):

                     1.   Mr. Patrick Muhooka – District Production Officer - Chairman
                     2.   Mr. Buyinza Patrick – District Water Officer -       Member
                     3.   Ms Iceduna Christine – District Agricultural Officer- Member
                     4.   Mr. Wamile Dawson - Community Development Officer - Member
                     5.   Mr. Keleba Emmanuel- Inspector of Schools - Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                     1. Mr. Hibombo – Senior Procurement Officer
                     2. Ms. Akello Rose – Procurement Officer




                                                                                         389
   COMPLIANCE AREA             SCORE / RATING            FINDINGS


Procurement Structures              9/10        Accounting officer knows his roles.
                                                The CC is approved and the PDU is
                                    90%         established.
                                                PP Form 220 and 221 not filed with
                                                PPDA.
                                                The User department initiates all
                                                procurements.
Procurement                         8/10        The District has a procurement plan
Planning                                        and departmental procurement plans.
                                    80%         It has a list of prequalified providers.
                                                The District has recently started using
                                                framework contracts.
Solicitation   and   bidding        8/10        The District uses standard bidding
procedures                                      documents but in some cases methods
                                    80%         don’t match with thresholds.
                                                The minimum bidding periods were
                                                observed for the files perused.
                                                There were records of bid submission
                                                and bid opening on files perused.



                                                                                           390
Evaluation procedures                   6/10                  Evaluation procedures followed but no
                                        60%                   evidence of signing ethical code by
                                                              members of the evaluation committee.
                                                              The Contracts Committee approves the
                                                              Evaluation committee but not the
                                                              Evaluation reports.
                                                              The Evaluation Committee uses the
                                                              appropriate Evaluation methodology.
                                                              There were Evaluation reports on files
                                                              perused.
Contract placement,     award           4/10                  Unsuccessful bidders are not notified
and management                                                in writing
                                        40%                   The notice of contract award is not
                                                              posted on the PPDA website for the
                                                              statutory display period.
                                                              There was no evidence of involvement
                                                              of user department in certifying
                                                              payment of contractual sums.
Reporting                               3/6                   The     District    submits   quarterly
                                                              procurement reports to the Authority
                                        50%                   though there’s no use of standard
                                                              reference numbers.
Performance    of   Contracts           4/8                   The Contracts Committee does not sign
Committee                                                     the Code of Ethical Conduct in
                                        50%                   Business.
                                                              There were no records of contracts
                                                              Committee decisions on PP/DPA
                                                              forms on file.
                                                              There were contracts committee
                                                              minutes on file recorded on the
                                                              appropriate forms.
                                                              There were no records on file to show
                                                              the contracts committee granted any
                                                              retrospective approvals.
Record Keeping                          3/8                   There is poor record keeping,
                                                              documents are scattered.
                                        38%                   There are no procurement reference
                                                              numbers for individual cases.
                                                              The District does not appraise its
                                                              suppliers’ performance.

Aggregate Score and                     63 %                       SATISFACTORY
Compliance Rating of PDE

RECOMMENDATIONS

     1.   The District should file PP Forms 220 and 221 with PPDA.
     2.   The Evaluation Committee members should always sign the Code of Ethical Conduct.
     3.   The Contracts Committee should always approve the Evaluation Reports.
     4.   The unsuccessful bidders should be notified of the best evaluated bidder in writing.
     5.   The user department should be involved in certifying payments of contractual sums.
     6.   The District’s Contracts Committee should always sign the Code of Ethical Conduct in Business.
     7.   There should be records of Contracts Committee decisions on submissions on PP DPA Forms on
          files.


                                                                                                        391
8. The District should improve it filing system in the PDU.
9. The PDU should also use procurement reference numbers for the various procurements.
10. The District should also appraise its suppliers’ performance.




                                                                                         392
NAME OF PDE: Rukungiri District


DATE OF ASSESSMENT: 15th - 16th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): 14,720,812,000=.


SIZE OF PDE: Large


ACCOUNTING OFFICER: Mr. Muhenda Rujumba


CONTRACTS COMMITTEE MEMBERS (Names):

                             1.   Mr.Tiwaitu Cleophas – District Community Officer
                             2.   Mr.Tiwangye Freddie – District Commercial Officer
                             3.   Mr. Kasigazi Leonas - District Agricultural Officer
                             4.   Dr. Karyabakabo Zepher – District Health Officer
                             5.   Mr. Muheirwe Laban – Senior Community Officer

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                   1.    Mr Karuma David




                                                                                        393
     COMPLIANCE AREA               SCORE / RATING                FINDINGS


Procurement Structures                  8/10        •   The entity has the procurement
                                                        structures but the PDU is understaffed
                                        80%         •   The entity had been characterized by
                                                        ‘unstable ‘PDU’ as no procurement
                                                        officer hardly spent a year in the entity.
Procurement                             7/10        •   The procurement plan is in place but
Planning                                                the entity has not submitted it to
                                        70%             PPDA.
                                                    •   The entity had a list of pre-qualified
                                                        providers but there is no evidence of
                                                        the rotation of providers on this list

Solicitation   and       bidding        5/10        •   The entity does not use standard forms
procedures                                              as per regulations
                                        50%
Evaluation procedures                   5/10        •   The evaluation committees lack the
                                                        knowledge as perceived from the
                                        50%             opinions of the members of the
                                                        contracts committee.
                                                    •   There was no evidence that members
                                                        of the evaluation committee were



                                                                                                     394
                                                               signing an ethical code of conduct.


Contract placement, award and           3/10               •   There was no evidence of documents
management                                                     pertaining to contract management
                                        30%                    within the entity
Reporting                                1/6               •   The entity has not submitted reports as
                                                               required and is therefore not compliant
                                        17%                    in this critical area
Performance      of   Contracts          4/8               •   It is relatively new but appeared to
Committee                                                      have committed members.
                                        50%                •    Minutes of the contracts committee
                                                               were not written on the standard forms
                                                               although they had one big folder file
                                                               for minutes of the committee.
                                                           •   There was no evidence that members
                                                               of the contracts committee were
                                                               signing an ethical code of conduct.
Record Keeping                           3/8               •   The entity keeps scattered documents
                                                           •   The entity runs a records system where
                                        38%                    all evaluation reports are kept in one
                                                               file, contracts committee minutes are
                                                               kept in their own file, award letters are
                                                               kept in their own file etc. This makes
                                                               tracking of procurement records
                                                               tiresome and complicated.
                                                           •   The entity does not use reference
                                                               numbers for the various procurements
                                                               as per the 2008 guidelines.
                                                           •   There was no record of supplier
                                                               performance appraisal on file.

Total Score and Overall Rating
of PDE                                  50%                MODERATELY SATISFACTORY


      RECOMMENDATIONS:

   1. The Entity needs to address its records management systems.
   2. The District needs to recruit more PDU staff and file PP Form 221 with PPDA.
   3. The District is encouraged to rotate the providers on its shortlist of providers to encourage
   competition and transparency.
   4. The user departments should be involved in contract management especially in certifying the
   payment of the contractual sum in accordance with Regulation 119 of the LG (PPDA) Regulations.
    5. The members of the contracts committee and the Evaluation Committee should always sign the code
   of ethical conduct in business.
   6. The Entity should embark on using reference numbers and improve on the reporting of procurements
   as per the regulations.
   7. The Entity should prepare and submit procurement plans as per Regulation 62 – 63 of the LG
   (PPDA) Regulations.
   8. The District should use standard forms issued by the Authority.
   9. The minutes of the contracts committee should be recorded on the appropriate forms and filed.



                                                                                                           395
10. The decisions of the contracts committee on a submission should be recorded on PP/DPA forms and
filed.
11. The PDU generally lacks facilities and the current staffing is low compared to the work and this was
responsible for non compliance in report submission and the Entity should address it.
12. The budget for the PDU is too small compared to the work they do and should therefore be
     improved.
13. The District should have individual procurement reference numbers for the different procurements
     in accordance with Regulation 65(3) of the LG (PPDA) Regulations.
14. The District should appraise its suppliers’ performance for quality services and supplies.




                                                                                                   396
NAME OF PDE: Sembabule District Local Government


DATE OF ASSESSMENT: 11th June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
         governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): 12 Billion Uganda Shillings

SIZE OF PDE: Sembabule District has 6 sub-counties, one town council i.e. Sembabule town, 35
              parishes and about 441 local councils.


ACCOUNTING OFFICER: Mr. Karenkiza Patrick - Ag. CAO


CONTRACTS COMMITTEE MEMBERS (Names):

                        1.   Ms. Gertrude Lubega - District Education Officer- Chairperson
                        2.   Mr. Karenkiza Patrick – Asst CAO – Member
                        3.   Mr. Katongole Arthur – Administrative Officer – Member
                        4.   Mr. Mulungi Hillary – Physical Planner - Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                        1.    Ms. Stella Karungi- Ag Head Procurement Officer.




                                                                                               397
  COMPLIANCE AREA              SCORE /                           FINDINGS
                               RATING

Procurement Structures          4/10     •   There are procurement structures in place; however PDU staff
                                             are yet to be appointed.
                                40%      •   The PDU is manned by one person in acting position.
                                         •   The acting Accounting Officer is also a member of the
                                             contracts committee contrary to the PPDA Regulation
                                         •   Internal auditor is not involved in the procurement process.
Procurement Planning            5/10     •   Existence of approved pre-qualification of providers.
                                         •   Consolidated procurement plan lacks details like method of
                                50%          procurement.
                                         •   No evidence of framework contracts seen.
Solicitation   and   Bidding    5/10     •   No use of solicitation documents seen.
procedures                               •   Record of bid submission is partially done.
                                50%      •   Solicitation documents do not use the PPDA format
Evaluation procedures           8/10     •   The entity has a record of evaluation reports and CC approves
                                             the evaluation reports.
                                80%      •   No record of signing of code of ethical code of conduct by EC
                                             members.




                                                                                                     398
  COMPLIANCE AREA           SCORE /                              FINDINGS
                            RATING

Contract placement, award    3/10        •   No evidence of notification of the award to unsuccessful
and management                               bidders.
                             30%         •   No records of contract management.
                                         •   Notice of BEB not posted on the PDE’s notice board or PPDA
                                             website
Reporting                     2/6        •   Monthly reports are not up to date - 3rd Quarterly Report not
                                             yet submitted. Standard formats are not used in the reports.
                             33%
Performance of Contracts      4/8        •   Contract's committee minutes are prepared.
Committee                                •   No record of acceptance of the ethical code of conduct by the
                             50%             contracts committee.
Record Keeping                2/8        •   No record of Supplier Appraisal/Performance.
                                         •   No use of standard procurement reference numbers.
                             25%

Total Score and              46%                    MODERATELY SATISFACTORY
Overall Rating of PDE



RECOMMENDATIONS

   1. The PDE should ensure timely submission of quarterly reports in accordance with Regulation 40
       of the PPDA, 2003.
   2. Records of particular procurements should have all the related documents put together. Entity
       should use standard procurement reference numbers and standard reporting formats provided by
       the PPDA.
   3. Accounting Officer should follow up with Ministry of Public service on the staffing of the PDU.
   4. Function of the Internal Auditor should be strengthened to ensure that all procurements are
       verified by the internal auditor during payments and delivery.
   5. Procurement plan should indicate the planned procurement methods to be used
   6. Framework contracts should be instituted for common user items
   7. Solicitation documents should use the standard formats issues by the PPDA in accordance with
       LG PPDA Reg. 48 (1)
   8. EC members should adhere to the code of ethical conduct in accordance with LG PPDA Reg. 27
       (9) & (10).
   9. PDU should ensure that notice of BEB is posted on the procurement notice board and PPDA
       website and unsuccessful bides notified in writing.
   10. CC members should adhere to the code of ethical conduct business in accordance with LG PPDA
       Reg. 20 (1).
   11. Supplier appraisal should form part and parcel of the PDE’s contract management.




                                                                                                     399
NAME OF PDE: Wakiso District Local Government


DATE OF ASSESSMENT: 23rd – 24th June 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
        governance thereby promoting social, economic development in the District.


LEGAL/INSTITUTIONAL STATUS: District Local Government


BUDGET (GOU/DONORS): Releases from Central Government and Internally generated resources.


SIZE OF PDE: Large


ACCOUNTING OFFICER: Mr. Joseph Mukwaya


CONTRACTS COMMITTEE MEMBERS (Names):

            1. Dr. Patrick Oine        District Veterinary Officer - Chairman
            2. Mr. Ssempija Lwanga Henry Senior Education Officer - Member
            3. Ms Annette Namugga        Senior Production Officer - Member

N.B    The other two members to the Contracts Committee resigned from the service of the Entity.

PROCUREMENT AND DISPOSAL UNIT MEMBERS:

            1. Mr. Sam Akankwatsa,            Senior Procurement Officer
            2. Mr. Charles Lukwago            Procurement Officer




                                                                                                   400
  COMPLIANCE AREA        SCORE /                             FINDINGS
                         RATING

Procurement Structures    7/10     • The Accounting Officer has established the Contracts Committee
                                     and PDU in place. The PDU comprises of newly recruited
                          70%        personnel.
                                   • There are currently three Contracts Committee members approved
                                     by PS/ST. However the submission has not been made to PPDA.
                                     One of the Committee members retires whereas the other resigned
                                     from the service of the Entity.
                                   • The user departments initiate procurements but make no use of PP
                                     Form 1.
                                   • The PDU does not keep copies of the LPOs and contracts.
                                   • Information as to whether the Internal Auditor has audited the
                                     procurement and disposal processes was not availed.

Procurement Planning      7/10     • Entity has no approved procurement and disposal plan
                                   • There are no departmental plans approved by the Heads of
                          70%        Departments
                                   • Record of the Assets Register not availed.




                                                                                                401
  COMPLIANCE AREA              SCORE /                              FINDINGS
                               RATING

Solicitation   and   Bidding    7/10     • Records of issue of solicitation documents and solicitation
procedures                                 documents kept on the files,
                                70%      • Record of bid submission and opening seen
                                         • Minimum bidding periods observed
                                         • Entity mostly procures works, services and supplies through the
                                           open national bidding method.
                                         • Some of the copies of the solicitation documents issued and bids
                                           received not availed.

Evaluation procedures           5/10     • The Evaluation Committee minutes and Evaluation Report are
                                           signed.
                                50%      • Record of Acceptance of Code of Ethical Conduct for EC members
                                           not seen on the files.
                                         • Evidence of approval of the members of the Evaluations
                                           Committee and evaluation report by the Contracts Committee not
                                           availed
                                         • The District Engineer and the Chief Finance Officers are used in
                                           the evaluation of most of the procurements as permanent members
                                           of the evaluation committee.

Contract placement, award       5/10     • Notices of Best Evaluated bidder not seen.
and management                           • Entity does not post the notice of the best evaluated bidder and
                                50%        notice of contract award on the PPDA website.
                                         • Some of the Contract documents were not on the individual
                                           procurement files.
                                         • No evidence that the contracts sampled were executed within the
                                           contractual period although there were some delays in payment.
                                         • No evidence that the unsuccessful bidders are notified in writing
                                         • There was evidence that the User Department is involved in
                                           certifying payment.

Reporting                        4/6     • Entity is not up to date in its quarterly procurement and disposal
                                           reporting.
                                 67%     • Entity has not adhered to the format of the reporting as provided
                                           under the Local Governments (PPDA) Guidelines 2008.
                                         • Entity responds to queries raised by the Authority on the monthly
                                           reports.


Performance of Contracts         5/8     • Some of the Contracts Committee minutes were not available on
Committee                                  the file.
                                63%      • From the sampled procurement files, the Contracts Committee had
                                           not granted any retrospective approvals.
                                         • Record of Acceptance of Code of Ethical Conduct for CC members
                                           not seen on files.
                                         • No records of supplier appraisal and performance availed.

Record Keeping                   3/8     •   Proper record/filling system not in place. Few procurements have
                                             separate individual procurement files.
                                38%      •   PDU lacks adequate storage facilities



                                                                                                        402
  COMPLIANCE AREA          SCORE /                               FINDINGS
                           RATING

                                       •   Some of the individual procurements lack procurement reference
                                           numbers assigned to them
                                       •   The Entity does not adhere to the format of assigning
                                           procurement reference numbers as provided under the Local
                                           Governments (PPDA) Regulations.


Total Score and              60%                    MODERATELY SATISFACTORY
Overall Rating of PDE



RECOMMENDATIONS

   1. Entity should prepare a procurement and disposal plan and submit it to the Authority.
   2. The Entity should ensure that the departmental plans are approved by the Heads of Departments
      and aggregated within the District procurement and disposal plan
   3. The PDU should keep a copy of the Assets Register
   4. Entity is advised to ensure that each procurement file has a copy of the approved solicitation
      document, evidence of notification of the unsuccessful bidder, and contract management records.
   5. Entity should adhere to the timely quarterly reporting in accordance with the Local Governments
      (PPDA) Guidelines 2008
   6. Records of Acceptance of Code of Ethical Conduct for Contracts Committee members should be
      signed at each meeting and kept by the Secretary.
   7. Entity should put in place a system of supplier appraisal and performance.
   8. Entity should provide adequate storage facilities to the PDU for record keeping purposes and
      ensure that there are separate procurement files for the different procurements carried on.




                                                                                                    403
3.2.2   Municipalities

        NAME OF PDE: Arua Municipal Council


        DATE OF ASSESSMENT: 24th – 25th July 2008


        MANDATE: To provide quality service, a health and clean environment and uphold democratic
                 governance thereby promoting social, economic development in the Municipality.



        LEGAL/INSTITUTIONAL STATUS: Local Government


        BUDGET (GOU/DONORS): 4.7 billion


        SIZE OF PDE: 111 Employees as per establishment


        ACCOUNTING OFFICER (Name): Mr Andua Martin


        CONTRACTS COMMITTEE MEMBERS (Names):

                                                 1.   Mr. Bada Fred       Chairperson
                                                 2.   Mr. Asdedri Fred    Member
                                                 3.   Mr. Ongom Robert     Member
                                                 4.   Mr. Anguzo Lino      Member
                                                 5.   Ms. Stella Acayi     Member

        PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                                 1. Mr. Omale Jimmy       Senior Procurement Officer
                                                 2. Ms. Munduru Jacqueline     Procurement Officer




                                                                                                       404
   COMPLIANCE AREA                 SCORE / RATING                      FINDINGS


Procurement Structures                  8/10        All members of CC in place and two officers in
                                                    PDU, (SPO and PO). The Accounting Officer has
                                        80%         appointed the Contracts Committee and these were
                                                    approved by PS/ST
Procurement Planning                    9/10        Up to date. 2008/09 plan in progress The entity is
                                                    not using framework contracts for repetitively
                                        90%         procured items.
Solicitation   and       bidding        5/10        Copies of the approved solicitation documents were
procedures                                          not on file in many instances although copies seen
                                        50%         were in accordance with PPDA SBDs
Evaluation procedures                   5/10        One evaluation team approved by CC for all
                                                    procurements reviewed. The few evaluation reports
                                                    on file do not follow the evaluation criteria in the
                                        50%         solicitation document. Some of the files lacked
                                                    evaluation reports.
                                                    No record of acceptance of code of ethical conduct
                                                    by EC members.
Contract placement, award and           2/10        Few of the contract documents seen on file. No
management                                          records on contract management on files reviewed
                                        20%
Reporting                                6/6        Quarterly report up to date. Report to June 2008 is
                                                    due



                                                                                                           405
  COMPLIANCE AREA                 SCORE / RATING                        FINDINGS


                                       100%
Performance      of   Contracts         6/8          There is no supervision of the PDU by CC. Notable
Committee                                            in exceptions in the cases reviewed. Members are
                                       75%           not signing ethical code of conduct.
Record Keeping                          5/8          No complete procurement file. Documents are
                                                     scattered in several files. All Contracts Committee
                                       63%           minutes kept in one file, Adverts in a separate file
                                                     etc

Total Score and                        64%                           SATISFACTORY
Overall Rating of PDE


 RECOMMENDATIONS

     1. Framework Contracts should be used for repetitive contracts.
     2. The entity must adhere to PPDA formats when using solicitation documents.
     3. The evaluation reports on file should follow the evaluation criteria in the solicitation document.
     4. All of the files should have evaluation reports.
     5. Contract Document should be on file and contracts management records should also be on file
     6. Members of the Contracts Committee should sign the code of ethical conduct
     7. Proper filing must be done so that each procurement has its on complete file with all documents
        pertaining to it.
     8. Enough office space to be availed to the Procurement Officer/Head PDU.




                                                                                                            406
NAME OF PDE: Entebbe Municipality


DATE OF ASSESSMENT: 10-11th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold Democratic
         governance thereby promoting social, economic development in the District


LEGAL/INSTITUTIONAL STATUS: Municipality.


BUDGET (GOU/DONORS): Government of Uganda.


SIZE OF PDE: Approved structure of 150 staff, with only 90 positions filled. Has nine (10)
             departments with two (2) lower local governments.


ACCOUNTING OFFICER (Name): Mr. Kimbowa Joseph.


CONTRACTS COMMITTEE MEMBERS (Names):

                             1. Mr. Kyambadde MD - Chairperson
                             2. Mr. Mpalanyi Charles – Accountant -Secretary
                             3. Kalyesubula John     Medical Officer- Member
                             4. Namubiru Betty      Senior planner - Member
                             5. Mr. Mukiibi Joseph District Engineer – Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                             1. Mr. Kyobe Daniel Kyeyune - Senior Procurement Officer
                             2. Mr. Ssejjoba Japheth - Assistant Procurement Officer.




                                                                                             407
  COMPLIANCE AREA              SCORE / RATING                       FINDINGS


Procurement Structures              5/10        •   The CC members are five (5) approved by the PS/ST,
                                                    they carry out the roles of the PDU.
                                    50%         •   The Internal Auditor carries out post audits of the
                                                    procurement and disposal processes with reference to
                                                    CC minutes.
Procurement                         5/10        •   The Entity has an approved pre-qualification list.
Planning                                            However, its not categorized according to type of
                                    50%             procurements and its kept by the accountant not the
                                                    PDU.
                                                •   The user departments forward procurement requests
                                                    directly to the Contracts Committee.
                                                •   Entity has an approved procurement plan – was filled
                                                    with PPDA on 8/11/07.
                                                •   Entity has an assets register but was last updated in
                                                    2005.
                                                •   Entity uses un formalized framework contracts for the
                                                    supply of stationery.

Solicitation   and   bidding        3/10        •   Entity has combined records of issue of solicitation
procedures                                          document for different procurements with similar
                                    30%             deadlines. Record is in an account book not on the LG
                                                    PP Form 6.
                                                •   Entity does not use SBDs issued by PPDA.


                                                                                                    408
                                                •   There was no record of bid submission and opening.
                                                •   The minimum bidding period is not observed in most
                                                    cases.
                                                •   The method of procurement used was not appropriate
                                                    to the threshold and circumstances on most of the files
                                                    perused.
Evaluation procedures           0/10            •   On the contracts sampled, there were no records on
                                0%                  evaluation procedures.

Contract placement, award       2/10            •   Entity only informs the unsuccessful bidders at pre-
and management                                      qualification stage.
                                20%             •   Notices are posted on PDE notice board for the
                                                    statutory display period.
                                                •   Entity does not post notices on PPDA website.
                                                •   The user departments are not fully involved in the
                                                    payment process. On receiving the items, the stores
                                                    manager prepares the LPO and dispatches items to
                                                    respective user department.
                                                •   There was no evidence of execution/performance of
                                                    contract within the contractual completion date.

Reporting                        0/8            •   The Entity has never submitted quarterly reports to the
                                 0%                 Authority.

Performance of Contracts         2/6            •   Entity has records of contracts committee minutes but
Committee                                           are not filled by the PDU.
                               33.3%            •   Entity grants retrospective approvals.
Record Keeping                   1/8            •   Entity lacks record/filling systems in PDU.
                                                •   All the sampled cases did not have records required by
                               12.5%                law.
                                                •   Some of the sampled cases did not have the standard
                                                    reference numbers.
                                                •   Entity has no record of supplier performance.


   Aggregate Score and         21 %.                           UNSATISFACTORY
   Compliance Rating


RECOMMENDATIONS

 1. The Accounting Officer should ensure the functionality of the PDU.
 2. The PDU should be established fully and PP Forms 221 and 220 filed with PPDA.
 3. Copies of approved prequalification/ short list of providers, approved plan, framework contracts
    should be kept on the PDU files.
 4. The PDU should compile a pre-qualified list according to the type of procurements.
 5. There should be rotation of providers on the pr-equalified list.
 6. Framework contracts should be formalized for only common user items.
 7. The Municipality should up date its Assets Register.
 8. Entity should use PPDA Standard Bidding Documents and LG PP and PP/DPA forms.
 9. The Municipality should keep records of bid submissions and opening.




                                                                                                      409
10. The minimum bidding period should always be observed in accordance with the method of
    procurement used.
11. The method of procurement used should always be appropriate to the threshold and circumstances.
12. The Contracts Committee should approve the members of the Evaluation Committee in accordance
    with Reg 72(2) of the Local Government (PPDA) Regulations.
13. The Evaluation Committee should use the appropriate Evaluation methodology when evaluating
    bids in accordance with Reg. 79(1).
14. The Evaluation Committee should always sign the Code of Ethical Conduct in Business in
    accordance with Reg. 27(9) &(10).
15. The Municipality should ensure that an Evaluation Report is prepared and approved by the
    Contracts Committee.
16. All unsuccessful bidders should be notified in writing on the respective procurements.
17. Entity should be trained on the use of PPDA website.
18. The user department should be fully involved in certifying payment of contractual sums.
19. The files should have some form of evidence of execution of contract with in the contractual
    completion date
20. The Municipality should ensure that quarterly reports are submitted by the 15th day of each quarter
    for the preceding quarter and that all PP Forms are filled and CC minutes attached to reports as this
    aids the Authority as it reviews the reports.
21. CC members should record acceptance of code of ethical conduct in business at every meeting in
    accordance with Reg. 20(1).
22. All records of Contracts Committee decision should be on LG PP Form 20.
23. The User departments should be trained on the procurement circle to avoid requests for
    retrospective approvals.
24. Standard reference numbering should be used for each procurement with reference to Local
    Governments (PPDA) Guideline No. 3/2008.
25. All records filed should contain all the requirements of the Law in accordance with Guideline 9 of
    the Local Government Guidelines.
26. The Municipality should have a record of supplier appraisal/performance in accordance with Reg.
    119 of the Local Government (PPDA) Regulations




                                                                                                    410
NAME OF PDE: Fort Portal Municipality


DATE OF ASSESSMENT: 30th July 2008


MANDATE: To provide quality services which focus on local and national priorities for the residents so
          as to improve their welfare.

LEGAL/INSTITUTIONAL STATUS: Municipal Local Government


BUDGET (GOU/DONORS): 50% from Government of Uganda (for salaries of Municipality staff,
                     teachers and health workers), Conditional and non conditional Grants
                     and self generated income.


SIZE OF PDE: 236 (approved structure but with only 131 filled positions), 7 Departments, 3 Divisions,
              11 Parishes, 92 Cells at acreage of 27.82 square metres.


ACCOUNTING OFFICER: Francis Barubanawe


CONTRACTS COMMITTEE MEMBERS (Names):

                                   1.   Balema Jimmy          Ag Chairman
                                   2.   Stella Kaganda         Member
                                   3.   Mbeme Gilbert         Member
                                   4.   Richard K. Monday      Member
                                   5.   Tracy C. Kajumba      Member

PROCUREMENT AND DISPOSAL UNIT MEMBER (Names):

   1.Natugonza Gladys          Ag Secretary ( No substantive PDU in place)




                                                                                                  411
  COMPLIANCE AREA              SCORE /                                 FINDINGS
                               RATING

Procurement Structures          7/10          •    The Accounting Officer has a clear understanding of her role
                                                   for the over all responsibility for the procurement and disposal
                                70%                process.
                                              • The 5 CC members are approved by PS/ST but PP Form 220
                                                   is not filed with PPDA.
                                              • No established PDU- there is an adhoc committee composed
                                                   of heads of user department with minimum procurement
                                                   knowledge.
                                              • The user departments initiate procurements on an internal
                                                   form equivalent to LG PP Form 1.
                                              • The Internal Auditor carries out post audits and verifies
                                                   deliveries.
Procurement Planning            9/10     Entity has;
                                             • An approved pre-qualified list of providers.
                                90%          • A departmental procurement plan.
                                             • A procurement plan for FY 2007/08 based on the approved
                                                  budget.
                                             • An assets register with provisions for assets disposal plan.
                                             • There is use of non regulated framework contracts.
Solicitation   and   Bidding    9/10      • There are records of issue of Solicitation documents and receipt of
procedures                                   bids although all bids received for different procurements are
                                90%          recorded together where the deadline for bid submission is the
                                             same.
                                          • Entity prefers use of the Request for Quotation method for most


                                                                                                              412
  COMPLIANCE AREA           SCORE /                                FINDINGS
                            RATING

                                           procurements to ensure competition.
                                         • Minimum bidding periods were observed for all the sampled cases.
Evaluation procedures         10/10     • The CC approves the members of the Evaluations Committee (EC)
                                          and the Evaluation Report.
                              100%      • Appropriate evaluation methodologies are used.
                                        • The Evaluation Committee minutes and Acceptance of Code of
                                          Ethical Conduct for EC members are signed.
Contract placement, award      7/10       • BEB notices are posted on the PDE notice Board- has no
and management                                 special procurement notice board.
                              70%         • Unsuccessful bidders are not specifically notified in writing,
                                               they are informed by the BEB Notice.
                                          • Copies of signed contracts were on respective sampled files.
Reporting                      0/6        • Entity only submits reports to the Auditor General, had never
                                               submitted any reports to PPDA, they are ignorant of the
                               0%              requirement in the law.
Performance of Contracts       6/8        • There were records of acceptance of Code of Ethical Conduct
Committee                                      in business by CC members.
                              75%         • Contracts Committee grants retrospective approvals for
                                               emergencies
Record Keeping                 4/8        • Entity has centralized registration system.
                                          • PDU has relevant records but not filed on respective files.
                              50%         • Some of the sampled cases did not have reference numbers.
                                          • Entity has no supplier appraisal system
                              72%
Total Score and                                                 SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS

   1.    PP Forms 220 on membership of the Contracts Committee should be filled with PPDA.
   2.    The acting PDU needs training on the procedures of the PPDA law.
   3.    Entity should recruit more PDU staff and file PP Form 221 with the Authority.
   4.    Entity should initiate all procurements on LG PP Form 1.
   5.    Entity should formalize the frame work contracts for all repetitively procured items, like
         stationery, fuel, human drugs and sundries.
   6.    Entity should use Standard Bidding Documents (SBD) issued by the Authority.
   7.    Entity should record the issue of SDBs, bid submission and opening on the LG PP Forms.
   8.    PDU staff need training on the posting of notices on the PPDA website.
   9.    All unsuccessful bidders should be notified in writing for the individual procurements.
   10.   Entity should seek Solicitor General’s approval for all procurements above 50 Million Uganda
         Shillings.
   11.   All CC decisions on a submission should be made on LG PP Form 20.
   12.   Standard procurement reference numbering should be used on each individual case procured
         with reference to Guideline 3 of 2008.
   13.   All User departments should submit contract management and monitoring reports to the PDU.




                                                                                                       413
NAME OF PDE: Gulu Municipal Council


MANDATE: Manage To provide quality service, a health and clean environment and uphold
         Democratic governance thereby promoting social, economic development in the
         District.


LEGAL/INSTITUTIONAL STATUS: Municipality


BUDGET (GOU/DONORS): Government of Uganda (Consolidated Fund) and internally generated
                     funds. Budget for the financial year was approx.6.6 bn/=.


SIZE OF PDE: 101 staff members


ACCOUNTING OFFICER : Town Clerk: Mr. Opolot Odele Mackay


CONTRACTS COMMITTEE MEMBERS (Names):

                        1.   Mr. Ochan John Ezira Principal Health Inspector - Chairperson
                        2.   Mr. Oyoo Samson Ayonic       Municipal Planner - Member
                        3.   Mr. Asiire Jose Jola         Municipal Education Officer - Member
                        4.   Mrs, Nyeko Hellen            Inspector of Schools - Member
                        5.   Mr. Odonga Terence           Engineering Assistant - Member
                        6.   Mr. Kidega Nicholas          Pece Division Treasurer - Ag. Head
                                 PDU


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                        1. Mr.Kidega Nicholas Pece Division Treasurer - Ag. Head PDU




                                                                                          414
COMPLIANCE AREA            SCORE /                            FINDINGS
                           RATING

Procurement Structures      7/10     •   Procurement structures in place.
                                     •   The Accounting Officer has appointed the Contracts Committee
                            70%          and these were approved by PS/ST. This approval is not filed
                                         with the Authority.
                                     •   Procurement Unit has no dedicated office and officer. Interviews
                                         were conducted for the procurement officer and the recruitments
                                         is to be done in the financial year.

Procurement Planning        8/10     •   Entity has an approved procurement plan though not in the
                                         PPDA format.
                            80%      •   There are departmental plans seen on record but some of them
                                         were not signed by the Heads of Departments.
                                     •   The Municipality has an Assets register that is kept with the
                                         finance department.
Solicitation and bidding    4/10     •   Copies of the approved solicitation documents were not on file
procedures                               in many of the cases seen.
                            40%      •   Some of the copies of the solicitation documents seen on file
                                         were not in accordance with the PPDA SBDs.
                                     •   The Entity has serious challenges in adhere to the PPDA
                                         formats.



                                                                                                  415
Evaluation procedures         2/10          •   The few evaluation reports seen on file do not follow the
                                                evaluation criteria in the solicitation document.
                              20%           •   Some of the files lacked evaluation reports.
                                            •   Some of the evaluation reports are not in the standard format
                                                issued by PPDA.
                                            •   There were no records showing that the Evaluation Committee
                                                signs the Code of Ethical Conduct in Business.

Contract    placement,        3/10          •   Few of the contract documents were seen on file.
award and management                        •   No contract management records were on the files.
                              30%           •   Some of the contracts seen do not adhere to the standard
                                                contracts issued by the Authority.
                                            •   There were no records showing the best evaluated bidder or the
                                                unsuccessful bidders in writing.
                                            •   The notice of contract award is not posted to the PPDA website
                                                for the statutory display period.

Reporting                     3/6           •   The Entity had filed quarterly reports for the period under review
                                                according to PPDA records but these were not availed to the
                              50%               team during the visit.

Performance         of        2/8           •   Contracts Committee meets on average once a month.
Contracts Committee                         •   Members sign the code of ethical conduct
                              25%           •   Some of the minutes were not on file.
                                            •   There were no records of contracts committee submissions on
                                                decisions on PP/DPA forms on files perused.

Record Keeping                3/8           •   Filing system is very poor.
                                            •   There is lack of proper storage facilities by the PDU and lacks a
                              38%               dedicated office for procurement.
                                            •   Not all records filed do not contain all the requirements of the
                                                law.
                                            •   There were no records of supplier appraisal/performance.

Aggregate Score and          49%
Compliance Rating                                       MODERATELY SATISFACTORY.

            .

  RECOMMENDATIONS

     1. All the positions in the PDU should be filled.
     2. Entity should adhere to the PPDA format in preparation of procurement plans..
     3. The Heads of departments should always sign the departmental procurement plans before
        submission to the PDU.
     4. All the necessary records for a specific procurement should be properly filed.
     5. Solicitation documents used should be in accordance with the SBDs issued by the Authority.
     6. Evaluation reports should be prepared and filed for each evaluation and submitted to CC for
        approval.
     7. The evaluation teams need to follow the criteria in the solicitation documents while carrying out
        evaluation.
     8. The Evaluation committee should always sign the Code of Ethical Conduct in Business.


                                                                                                           416
9. User departments should be involved in contract management and certifying payments.
10. The Municipality should always notify the unsuccessful bidders in writing as provided for under
    Reg 86(5).
11. The Entity is required to submit to the Authority reports on procurements, disposals and those on
    micro procurements on a quarterly basis.
12. All minutes of contracts committee meetings held should be properly filed for ease of reference
    on decisions on a particular procurement
13. There is need for the Entity to have a dedicated office with adequate storage facilities.
14. Entity needs to have a proper filing system in place so that each procurement has a separate
    procurement file.
15. The Municipality should appraise its suppliers.




                                                                                                  417
NAME OF PDE: Jinja Municipal Council


DATE OF ASSESSMENT: 14th -15th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
          governance thereby promoting social, economic development in the Municipality


LEGAL/INSTITUTIONAL STATUS: Municipal Local Government


BUDGET (GOU/DONORS): Releases from Central Government and Internally generated funds from
                     revenue collection centres


SIZE OF PDE: 359 staff under 12 departments. Municipality covers 3 divisions 14 Sub counties and 1
            Town Council. It is categorized in Module II by Ministry of Local Government.


ACCOUNTING OFFICER: Mr. David Kachontori Bashakara


CONTRACTS COMMITTEE MEMBERS (Names):

                             1.   Mr. Peter Mawerere – Senior Assistant Town Clerk, Chairman
                             2.   Mr. Milton Byale - Senior Supplies Officer, Member
                             3.   Dr. Stephen Banonya - Medical Officer of Health, Member
                             4.   Mr. Balyejjusa Clint – Principal Personnel Officer, Member
                             5.   Mr. Muhammed Saeed – Senior Assistant Engineering Officer,
                                                            Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS:

                  1. Mr. Rajab Kitto Ag. Procurement Officer


Newly appointed PDU members who are yet to report for duty:

                  1. Mr. Charles Mpagi – Procurement Officer
                  2. Ms. Nabwonso Janet – Assistant Procurement Officer




                                                                                               418
COMPLIANCE AREA SCORE /                                      FINDINGS
                RATING

Procurement              4/10   • The Accounting Officer is newly appointed to the district but had
Structures                        training on the Procurement law in his last station
                         40%    • The CC members are five and approved by PS/ST but no submission
                                  was made to PPDA on PP Form 220.
                                • The user dept does not initiate their procurements on LG PP Form 1.
                                • The PDU has one member of staff who is an Acting Procurement
                                  Officer. The Accounting Officer had just signed appointment letters for
                                  two procurement staff but they had not yet reported for duty.
                                • No evidence that the Internal Auditor audits the procurement and
                                  disposal processes
Procurement Planning     1/10   • There were no user department procurement plans.
                                • There was no pre-qualified list of providers
                         10%    • There was no procurement plan for FY 2007/08
                                • There is use of frame work contracts for procurement of human drugs
                                  and sundries.
Solicitation       and   6/10   • There are records of issue of Solicitation documents and receipt of bids
Bidding procedures                although all bids received for different procurements are recorded
                         60%      together where the deadline for bid submission is the same.
                                • The SBD for procurement of revenue collection centres does not use the
                                  standard PPDA document but has good innovations such requiring
                                  bidders to submit LC I Letters and photographs which helps to trace
                                  defaulters.



                                                                                                     419
COMPLIANCE AREA SCORE /                                        FINDINGS
                RATING

Evaluation procedures    5/10      • The CC approves the members of the Evaluations Committee and the
                                     Evaluation Report.
                         50%       • The Evaluation Committee minutes and Evaluation Report are signed.
                                   • There was no record of Acceptance of Code of Ethical Conduct for EC
                                     members
Contract   placement,    2/10      • There are no records of the Notice of Best Evaluated bidder.
award            and               • There is a Notice Board but not dedicated to procurement matters.
management               20%       • No evidence that the contracts sampled were executed within the
                                     contractual period although there were some delays in payment.
                                   • No evidence that the unsuccessful bidders are notified.
                                   • There was no evidence that the User Department is involved in
                                     certifying payment.
Reporting                 0/6      • There was no evidence that the Entity had submitted any quarterly
                                     reports.
                         0%
Performance         of   3/8       • In the CC minutes sampled the CC had not granted any retrospective
Contracts Committee                    approvals.
                         38%       • Record of Acceptance of Code of Ethical Conduct for CC members
                                       present is available.
Record Keeping            2/8      • Record/filling system exists in the PDU but needs to be improved.
                                   • The sampled cases did not have the standard procurement reference
                         25%           numbering.
                                   • Contract management and supplier appraisal records were submitted
                                       by the engineering department although the water department had not
                                       submitted any.

Total Score and          32%                              UN-SATISFACTORY
Overall Rating of PDE


RECOMMENDATIONS

   1. The Accounting Officer and District Technical Planning Committee need more training on the
   PPDA law.
   2. PP Form 220 on membership of the Contracts Committee and membership of the PDU should be
   filled and filed with PPDA.
   3. The user depts should start initiating all the procurements on LG PP Form 1.
   4. The Sub county chiefs need training on the PPDA law.
   5. There should be a procurement plan based on the approved budget
   6. A pre-qualified list of providers should be put in place following an open advert.
   7. Frame work contracts should be used for repetitively procured items.
   8. All Solicitation documents for procurement of services for revenue collection centres should be
   made using the standard format issued by the PPDA.
   9. Records of issue of solicitation documents, bid submission and opening should be recorded
   separately for the different procurements even if they have the same deadline for bid submission.
   10. There should be a record of Acceptance of Code of Ethical Conduct for EC members should be
   signed every time they are going to carry out an evaluation.
   11. The Evaluation Methodology used for the cases sampled was not appropriate and a criterion of
   Mayor’s charity was being applied arbitrarily for revenue collection centres. This should stop.


                                                                                                     420
12. All unsuccessful bidders should be notified in writing.
13. All contracts should be executed within the completion dates.
14. All outstanding quarterly Reports should be submitted to PPDA promptly.
15. All CC decisions on a submission should be made on LG PP Form 20.
16. Standard procurement reference numbering should be used on each individual case procured.
17. All User departments should submit contract management and monitoring reports to the PDU.
18. PDU should get copies of contract payment records that are issued by the Finance dept.




                                                                                                421
NAME OF PDE: Kabale Municipal Council


DATE OF ASSESSMENT: 8th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold Democratic
         governance thereby promoting social, economic development in the Municipality.


LEGAL/INSTITUTIONAL STATUS: Local Government Body


BUDGET (GOU/DONORS): Government Funded and some projects are Donor Funded, also
                     locally generated revenue.


SIZE OF PDE: 87 staff including teachers.


ACCOUNTING OFFICER: Johnson Balyantuma


CONTRACTS COMMITTEE MEMBERS (Names):

             1. Mr. Twesigye Francis – Principal Commercial Officer – Member
             2. Ms. Kananura Lydia – Municipal Inspector of Schools - Member
             3. Mr. Ahimbisibwe Christopher - Senior Assistant Town Clerk - Member



PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

             1. Katushabe Pamela    PO
             2. Ssekalema Hasib     APO




                                                                                            422
COMPLIANCE AREA            SCORE/RATING                      FINDINGS

Procurement Structures         6/10       •   Accounting officer knows all his roles, the CC
                                              members are approved by PS/ST.
                               60%        •   The PDU is not established. Have just
                                              recruited 2 staff.
                                          •   PP Form 220 and 221 not filed with PPDA.
                                          •   The User departments do not initiate
                                              procurements.
                                          •   The Internal Auditor audits deliveries.

Procurement Planning           7/10       •   The Municipality has a procurement plan and
                                              departmental procurement plans.
                               70%        •   It also a list of pr-equalified providers.
                                          •   It has an Assets Register but no Disposal plan.

Solicitation and bidding       9/10       •   Uses standard bidding documents as issued by
procedures                                    PPDA and methods match with thresholds.
                               90%        •   There were records of bid submission and
                                              opening on files perused.
Evaluation procedures          4/10       •   Evaluation is done but the appropriate
                                              methodology is not followed.
                               40%        •   There’s no evidence of signing ethical code by


                                                                                      423
                                                                  members of the evaluation committee.
                                                              •   There were Evaluation reports on files perused
                                                                  however, there was no evidence of approval of
                                                                  the such reports by the Contracts Committee.
Contract placement, award and              4/10               •   Unsuccessful bidders are not notified in
management                                                        writing.
                                           40%                •   Notices to the best evaluated bidders are
                                                                  posted to the notice board but not posted to the
                                                                  website.
Reporting                                  2/6                •   Quarterly reports are not submitted to PPDA.

                                           33%
Performance of Contracts                    4/8               •   The CC sits only when there are issues to
Committee                                                         discuss.
                                           50%                •   There were CC minutes present but not on the
                                                                  appropriate forms.
                                                              •   The Contracts Committee members do not sign
                                                                  the Code of Ethical Conduct.
Record Keeping                             1/8                •   There is poor record keeping, documents are
                                                                  scattered.
                                           13%                •   Not all records filed contain all the
                                                                  requirements of the law.
                                                              •   There was        no record       of supplier
                                                                  appraisal/performance.

Total Score and                           51 %                    MODERATELY SATISFACTORY
Overall Rating of PDE



 RECOMMENDATIONS

     1. Accounting Officer should nominate more members for approval by PS/ST and PP Form 220 and
     221 on membership of the Contracts Committee and membership of the PDU should be filled and
     filed with PPDA.
     2. The user departments should start initiating all the procurements on LG PP Form 1.
     3. A pre-qualified list of providers should be put in place following an open advert.
     4. The members of the Contracts Committee and the Evaluation Committee should always sign the
     Code of Ethical Conduct in Business whenever necessary.
     5. The Evaluation Committee should also use the appropriate evaluation methodology/criteria as
     provided by PPDA when evaluating bids.
     6. The Municipality should endeavour to always notify the unsuccessful bidders in writing as required
     by law.
     7. The District should submit quarterly procurement reports accompanied by the Contracts Committee
     minutes as required by law.
     8. Procurement reference numbers should also be used for the different procurements conducted.
     9. The PDU should improve the record keeping and the filing system for the District.
     10. The Municipality should appraise its suppliers’ performance.




                                                                                                          424
NAME OF PDE: Kampala City Council


DATE OF ASSESSMENT: 21st – 22nd July 2008


MANDATE: Manage To provide quality service, a health and clean environment and uphold
         Democratic governance thereby promoting social, economic development in the
         District.


LEGAL/INSTITUTIONAL STATUS: City Council


BUDGET (GOU/DONORS): Government of Uganda (Consolidated Fund) and internally generated
funds. Budget for the financial year was approx.63 bn/=.

SIZE OF PDE: 3520 staff members


ACCOUNTING OFFICER: Ag. Town Clerk: Mrs. Ruth Kijjambu


CONTRACTS COMMITTEE MEMBERS (Names):

   1. Mr. David Tamale Kiggundu    Chairperson
   2. Eng. Bonny Nsambu             Member
   3. Mrs. Josephine Karugonjo      Member
   4. Ms. Margaret Banna            Member
   5. Mr. Moses Sengendo            Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                      1. Mr. Wilberforce Turyamubona - Principal Procurement Officer/Head PDU
                      2. Mr. Robert Musinguzi -    Senior Procurement Officer




                                                                                                425
 COMPLIANCE AREA           SCORE /                             FINDINGS
                           RATING

Procurement Structures      6/10     •   Procurement structures in place.
                                     •   The Accounting Officer has appointed the Contracts Committee and
                            60%          these were approved by PS/ST. This approval is not filed with the
                                         Authority.
                                     • Procurement Unit has dedicated office and officers.
                                     • Records where the users initiate all the procurements were not
                                         available in most of the cases sampled.
                                     • Information as to whether the Internal auditor has audited the
                                         procurement process was not availed.
Procurement Planning        4/10     • Entity has an approved procurement plan in the PPDA format.
                                     • There are no departmental plans seen on record.
                            40%      • A copy of the assets register with the provision of asset disposal
                                         planning was not availed.
                                     • The Entity does not make use of framework contracts.
Solicitation and bidding    6/10     • Many of the sampled procurement files lacked the following
procedures                               documents:
                            60%      - Records of issue of solicitation documents
                                     - Record of bid submission and opening
                                     - Copies of the solicitation documents issued to the bidders
                                     • In some of procurements, the method used was not appropriate to the
                                         threshold provided for under the Local Governments (PPDA)



                                                                                               426
                                      Guidelines.
                                  •   For most of the files perused, the minimum bidding period was not
                                      observed.
Evaluation procedures      5/10   •   Many of the sampled procurement files lacked the following
                                      documents:
                           50%         -Approval of members of the Evaluation
                                        Committee;
                                      -Record of acceptance of Code of Ethical
                                        Conduct for the Evaluation members;
                                        and Evaluation minutes.
                                       -Evaluation reports.
                                  •   Some of the evaluation reports are not in the standard formats
                                      prescribed under the Local Governments (PPDA) Guideline 7/2008.

Contract     placement,    4/10   •   Almost all the sampled procurement files lacked contract documents.
award and management              •   No contract management records were on the files.
                           40%    •   Notices of Best Evaluated Bidder were not on file
                                  •   The Entity does not post the notice of best evaluated bidder and
                                      notice of contract award on the PPDA website
                                  •   No record of notification of the award to the unsuccessful bidders on
                                      the sampled procurement files.
                                  •   No record for approval of the contract document by the Contract
                                      Committee found on the sampled files.
                                  •   No record of seeking approval from the Solicitor General for
                                      contracts above UShs. 50m seen on some procurement files.
                                  •   No records were seen to evidence the involvement of the user
                                      departments in certifying payment of the contractual sums.
Reporting                  3/6    •   The Entity had filed some quarterly reports for the period under
                                      review according to PPDA records.
                           50%    •   The reports did not have reports on micro procurements conducted.
                                  •   The Entity did not submit Contracts Committee reports with the
                                      quarterly reports.
Performance of Contracts   3/8    •   Contracts Committee meets on average three to four times a month.
Committee                         •   Many of the sampled procurement files lacked the following
                           38%        documents:
                                  •   Record of acceptance of code of ethical conduct in business by the
                                      Contracts Committee members
                                  •   Records of Contracts Committee decisions on submissions
Record Keeping             3/8    •   There is no record/filing system in place.
                                  •   Records filed do not contain all the requirements of the law
                           38%    •   Many of the cases sampled did not have standard procurement
                                      reference numbers
                                  •   There were no records of supplier appraisal or performance.


Aggregate Score and
Compliance Rating          47 %                         UNSATISFACTORY




                                                                                                427
RECOMMENDATIONS

      6. The approval by PS/ST for the Contracts Committee and the composition of the
          Procurement and Disposal Unit should be filed with the Authority.
      7. User departments should initiate all the procurements using LG PP form 1.
      8. All the necessary records for a specific procurement should be properly filed.
      9. The Entity should adhere to the Local Governments (PPDA) Guidelines for the
          thresholds.
      10. The Entity should ensure that user departments prepare procurement plans.
      11. An asset register should be put in place.
      12. The Entity should make use of framework contracts for frequently procured items.
      13. Copies of solicitation documents should be kept of file for each respective procurement.
      14. Records of bid opening and submission should also be kept of file.
      15. The methods of procurements used should be appropriate to the respective thresholds in
          accordance with the PPDA Local Government Guidelines.
      16. The minimum bidding period should always be observed in accordance with Reg 55(3) of
          the Local Government Regulations.
      17. The composition of the Evaluation Committee should always be approved by the
          Contracts Committee.
      18. The members of the Evaluation Committee should always sign the code of ethical
          conduct in Business.
      19. The appropriate evaluation methodology should always be used in accordance with Reg.
          79(1).
      20. After the evaluation of bids has been conducted, the secretary of the evaluation
          committee should always produce a copy of the report for approval by the CC and the
          minutes for filing. Entity should ensure that the evaluation reports adhere to the format in
          the Local Governments (PPDA) Guideline 7/2008.
      21. The Entity should ensure that each procurement file contains the following Contract
          management records, Notices of Best Evaluated Bidder, Signed Contract document and
          Record of notification of award to the unsuccessful bidders.
      22. For contracts above UShs. 50m, the Entity should seek Solicitor General’s approval.
      23. User departments should be involved in contract management and certifying payments.
      24. The entity is required to submit to the Authority reports on procurements, disposals and
          those on micro procurements on quarterly basis. Quarterly reports should be submitted
          with the Contracts Committee minutes.
      25. All minutes of contracts committee meetings held should be properly filed for ease of
          reference on decisions on a particular procurement.
      26. Contracts Committee members should sign the record of acceptance of the code of ethical
          code of conduct in business.
      27. The Entity should file the record of Contracts Committee decision on submission on the
          respective procurement files.
      28. There is need for the entity to put in place a proper record/filing system and for the
          procurement files should contain all the requirements of the law.
      29. The Entity should put in place mechanisms of supplier appraisal/performance.




                                                                                                 428
NAME OF PDE: Lira Municipal Council


DATE OF ASSESSMENT: 9th -10th July 2008


MANDATE: To provide quality service, a health and clean environment and uphold democratic
         governance thereby promoting social, economic development in the Municipality.


LEGAL/INSTITUTIONAL STATUS: Local Government


BUDGET (GOU/DONORS): 5 billion


SIZE OF PDE: 187 Employees as per establishment


ACCOUNTING OFFICER (Name): Mr Jimmy Ambrose Atwoko


CONTRACTS COMMITTEE MEMBERS (Names):

                               1. Mrs. Akara Esther,Senior Officer Supplies   Chairperson
                               2. Mr. Obong John, Sports Officer              Member
                               3. Mr. Okello Sam, Assistant Treasurer         Member


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                                       1.    Mr. Martin Ocen         Secretary




                                                                                            429
    COMPLIANCE AREA                SCORE / RATING                    FINDINGS


Procurement Structures                  2/10        •   2 Vacancies on CC and 3 Vacancies in PDU

                                        20%
Procurement Planning                    10/10       •   Procurement Plan for 07/08 was seen. 2008/09
                                                        plan in progress
                                       100%
Solicitation   and       bidding        4/10        •   Copies of the approved solicitation documents
procedures                                              were not on file in many instances although
                                        40%             copies seen were in accordance with PPDA
                                                        SBDs
Evaluation procedures                   5/10        •   One evaluation team approved by CC for all
                                                        procurements reviewed. The few evaluation
                                        50%             reports on file do not follow the evaluation
                                                        criteria in the solicitation document. Some of
                                                        the files lacked evaluation reports
Contract placement, award and           1/10        •   No records on contract management on files
management                                              reviewed
                                        10%
Reporting                                6/6        •   Quarterly report up to date.



                                                                                               430
   COMPLIANCE AREA                SCORE / RATING                            FINDINGS



                                       100%
Performance      of   Contracts         3/8                •   There is no supervision of the PDU by CC.
Committee                                                      Notable in exceptions in the cases reviewed
                                        38%
Record Keeping                           0/8               •   No procurement file. Documents are scattered

                                         0%

Total Score of PDE and                  43 %                    MODERATELY SATISFACTORY
Compliance Rating




 RECOMMENDATIONS:

     1. There are 2 vacancies on CC and 3 vacancies in PDU. The vacancies should be filled as soon as
        possible
     2. Filing of solicitation documents should be done.
     3. The evaluation reports should follow the evaluation criteria in the solicitation document and all
        files should contain evaluation reports
     4. Contract Documents and contracts management records should be kept on file.
     5. Contracts Committee members should sign the code of ethical conduct




                                                                                                       431
NAME OF PDE: Mbarara Municipal Council


DATE OF ASSESSMENT: 12th July 2008


MANDATE: Delivery of services to municipality


LEGAL/INSTITUTIONAL STATUS: Local Government


BUDGET (GOU/DONORS): 5.2 Billion


SIZE OF PDE: 130 staff including the lower local governments which comprise of 3 Divisions;
             Kamukuzi, Nyamitanga and Kakoba


ACCOUNTING OFFICER (Name): Mr. David Naluwayira (Not reported yet); Dr. John Tinkasimire
                           (Outgoing)


CONTRACTS COMMITTEE MEMBERS (Names):

                   1.   Magara Silver -Ag.Principal Education Officer,      Chairman
                   2.   Kanamugira Patrick    - Senior Planner,             Member
                   3.   Tumwine Fred          - Surveyor                    Member
                   4.   Baitwababo Geraldine - Sen.Asst. TC (Kamukuzi)      Member


The Accounting Officer has written to PS/ST through Ministry of Local Government for the approval of
the Chairman CC.

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                   1. Musinguzi Johnson              Senior Procurement Officer/ Sec. CC
                   2. Vacant                         Procurement Officer
                   3. Byamugisha Emmanuel -          Assistant Procurement Officer




                                                                                                432
    COMPLIANCE AREA                SCORE /                             FINDINGS
                                   RATING

Procurement Structures              5/10     •   Contracts Committee has four (4) members approved by PS/ST.
                                                 However, Chairman of CC not approved by PS/ST.
                                    50%      •   PDU comprises of two (2) members. Establishment is for three
                                                 (3).One vacancy for PO not filled. PDE says not necessary at the
                                                 moment taking into account the PDUs workload.
                                             •   Internal Auditor verifies deliveries
Procurement Planning                3/10     •   There was no procurement Plan for 2007/2008. 2008/09 budget in
                                                 place but no procurement plan has been made prepared for both the
                                    30%          departmental and consolidated work plans.
                                             •   Pre-qualified list for 07/08 available
                                             •   There is no asset register and disposal plan
Solicitation   and       bidding    6/10     •   To a large extent Entity does not use PPDA SBDs
procedures                                   •   Entity records issue of solicitation documents in a counter book
                                    60%      •   Entity uses Request for Quotation method which is not a
                                                 procurement method in the LG Regulations 2006.
                                             •   Minimum bidding period to a large extent is observed save for
                                                 procurements where RFQ is used.
                                             •   Record of bid submission and opening does not use the relevant LG
                                                 PP Form.



                                                                                                       433
   COMPLIANCE AREA                SCORE /                               FINDINGS
                                  RATING

                                            •   Entity has been applying PPDA Regulations 2003 and not Local
                                                Government Regulations 2006 and Guidelines 2008.
Evaluation procedures              5/10     •   Entity used inappropriate criteria for prequalification in 2007/08 i.e.
                                                not pass/fail basis
                                   50%      •   Entity appears to have a permanent evaluation committee
                                                particularly for non-works procurements Membership of the
                                                evaluation committees is not based on expertise and representation.
                                                A single committees can be appointed to handle several
                                                procurements of diverse nature
                                            •   Entity uses TCS Evaluation methodology for all procurements.
                                            •   No record of acceptance of ethical code of conduct for evaluation
                                                committee members.
                                            •   Evaluation Reports are available however these are maintained on a
                                                separate file.
                                            •   Record of Contracts Committee approval of the Evaluation Report
                                                was available on file.
Contract placement, award and      2/10     •   Notices of BEB not kept on file
management                                  •   Notices of award are copied to the Mayor and Contracts signing is
                                   20%          witnessed by the Mayor. This can potentially incite interference in
                                                the process by organs not required to participate in the procurement
                                                cycle.
                                            •   Notices are not posted on the PPDA website during the statutory
                                                display period.
                                            •   Unsuccessful bidders are not notified of the award.
                                            •   Contract documents are approved by the Contracts Committee and
                                                those above Ushs. 50m are not approved by Solicitor General.
                                            •   Entity reported delays in contract execution/completion.
                                            •   User Department is involved in certifying payment.
Reporting                           4/6     •   Quarterly report for the period April-June 2008 is outstanding.

Performance      of   Contracts     3/8     •   There is no record of Acceptance of Code of Ethical Code of
Committee                                       Conduct.
                                   38%      •   Record of Contracts Committee on a decision was on file, however it
                                                mainly relates to approval of Evaluation Report and Contract award
                                                and not approval of procurement method and solicitation document.
                                            •   No proof of user departments being involved on certifying payments
                                            •   Contracts Committee is involved in retrospective approvals as in the
                                                case of major road works
Record Keeping                      3/8     •   There is no record of supplier performance.
                                            •   Incomplete procurement Reference Numbers for certain
                                   38%          procurements.
                                            •   Although there were procurements files for cases reviewed, some
                                                documents are scattered in other files.

Total Score of PDE         and     43%                     MODERATELY SATISFACTORY
Compliance Rating




                                                                                                           434
RECOMMENDATIONS:

  1. The Entity is advised to expedite the appointment of the Contracts Committee members through
          Ministry of Local Government.
  2. The Entity is advised not to copy award notices to the Mayor since he has no role play at this
          point
  3. The Entity advised that preparation of the procurement plan should be undertaken during the
          preparation of the entity’s budget.
  4. The Entity advised to use the PPDA SBDs.
  5. RFQ is not a method under the LG Regulations 2006.Entity should only apply procurement
          methods prescribed in the LG Regulations 2006.
  6. The Entity should ensure that LG PP Forms are used.
  7. The Entity is advised that evaluation under prequalification is conducted on PASS/FAIL basis.
  8. The Entity is advised that the Evaluation Committee is an ad hoc committee appointed for
          evaluation of each procurement requirement.
  9. The Entity urgently requires hands on training particularly on record keeping.
  10. The Entity is advised to ensure timely submission of reports in accordance with LG Guideline
          7/2008.
  11. The Entity is advised that the Notice of BEB should be kept of the procurement file.
  12. The Contracts Committee should ensure that code of ethical conduct is signed by all members
          prior to commencement of the meeting.
  13. All Contracts Committee decisions should be recorded using LG PP Form 20.
  14. The Contracts Committee advised to refrain from retrospective approvals.
  15. Proper record keeping should be maintained by the PDU on all procurement files using the
          checklist availed by the Authority.




                                                                                               435
NAME OF PDE: Soroti Municipal Council


DATE OF ASSESSMENT: 16th -17th July 2008


MANDATE:       To manage the Municipal’s Resources and provide Social Services to its
               Population


LEGAL/INSTITUTIONAL STATUS: Municipal Council


BUDGET (GOU/DONORS): GOU releases & Local revenue


TOWN CLERK (Name): Mr. Omoko Paul


CONTRACTS COMMITTEE MEMBERS (Names):

                             1.    Mr. Oyata Sam     Chairperson
                             2.    Dr. Odeke Francis Member
                             3.    Mr. Opolot Grace Secretary


PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                             1.    Mr. Opolot Grace Ag. Head PDU




                                                                                        436
    COMPLIANCE AREA                SCORE /                     FINDINGS
                                   RATING

Procurement Structures               7/10    •   The CC has 3 members, the other 2 are yet to
                                                 be nominated and sent to PS/ST for approval.
                                    70%      •   The recruitment of the PDU staff is still on
                                                 going as interviews were conducted and three
                                                 PDU staff are expected on 1st August 2008.
Procurement                          8/10    •   The Municipality has a shortlist of providers
Planning                                         and an approved procurement plan. The Assets
                                    80%          register is kept with the Chief Finance Officer;
                                                 However, the Municipality does not make use
                                                 of frame work contracts.
Solicitation    and      bidding     2/10    •   There was no record of solicitation documents
procedures                                       on all files. Though there was some evidence
                                    20%          of Bid submission, such was not recorded on
                                                 the appropriate forms.
Evaluation procedures                4/10    •   Approval of Evaluation Committee members is
                                                 done by the CC. There’s a record of evaluation
                                    40%          reports even though the appropriate evaluation
                                                 methodology was not used.
Contract placement, award and        4/10    •   The best evaluated Bidder is given notice but
management                                       no notice is given to the unsuccessful bidders.
                                    40%          The Contract documents are not approved by
                                                 the CC. The Contracts are signed in the



                                                                                                    437
                                                         Divisions


Reporting                              5/6           •   The District has been submitting procurement
                                                         quarterly reports to the Authority though its
                                      83%                reporting is not up to date.
Performance      of     Contracts      5/8           •   Minutes are in place though not recorded on
Committee                                                the appropriate forms. There’s a record of CC
                                      63%                decisions but also not recorded on appropriate
                                                         forms.
Record Keeping                         3/8           •   There exists a Record/filing system in the PDU
                                                         even though it is not standard and most files
                                      38%                don’t contain all requirements of the law.

Total Score and                       53%                  MODERATELY SATISFACTORY
Overall Rating of PDE


 RECOMMENDATIONS

      1. The full Contracts Committee should be appointed by the Accounting Officer and their names
          sent for approval to PS/ST Min of Finance. The recruitment of the Procurement Officers must
          be expedited.
      2. The PDU when recruited should take charge of all procurement documentation and register.
      3. The Entity should start using framework contracts for repetitively procured items.
      4. The entity should strictly adhere to PPDA formats and the records should be kept in the PP
          Forms wherever applicable.
      5. The proper evaluation method agreed upon by the Evaluation Committee and approved must be
          adhered to and reflected in the report in the proper format.
      6. The Contracts Committee should approve all contract documents. All the members should be in
          place and the Engineer who was transferred to Oyam District should be replaced as soon as
          possible.
      7. All contracts must be signed by the Town Clerk (Accounting Officer).
      8. The quarterly reports must be sent by the 15th day of the following month of the quarter as per
          the law.
      9. The records must all be in the PP forms.
      10. Each procurement must have its own complete file with all the documents relating to that
          particular procurement.




                                                                                                          438
NAME OF PDE: Tororo Municipal Council


DATE OF ASSESSMENT: 4th July 2008


MANDATE: To provide services to Tororo Municipality Community that are responsive to the National
         and local priorities for improved quality of life


LEGAL/INSTITUTIONAL STATUS: Local Government


BUDGET (GOU/DONORS): Estimated budget of 4.535 billion


SIZE OF PDE: 101 Staff


ACCOUNTING OFFICER: Mr. Kenneth Ofwono –Acting Town clerk


CONTRACTS COMMITTEE MEMBERS (Names):

                             1.    Mr. Mannington Katumba   Chairperson
                             2.    Mr. Jimmy Ochwo          Member
                             3.    MrJohn Choli             Member
                             4.    Mr. Isaac Karan          Member
                             5.    Dr Obonyo                Member

PROCUREMENT AND DISPOSAL UNIT MEMBERS (Names):

                             1.    Mr. Joseph Ochieng Ag Head of PDU




                                                                                             439
COMPLIANCE AREA SCORE /                                        FINDINGS
                RATING

Procurement Structures     5/10   •   The AO is in an acting position.
                                  •   There is no established PDU. There is only one person in the PDU
                           50%        who is acting. An advertisement was recently made for only one
                                      position and not 3 in the PDU but no recruitment done yet.
                                  •   There is an established CC in place made up of 5 members
                                      approved by PS/ST. CC meets at least once in a month.
                                  •   User departments initiate all procurements on PP form 20
                                  •   The internal Auditor Audits the procurement and disposal process,
                                      payments and deliveries but no Audit reports were available

Procurement Planning       6/10   •   Procurement plans are in place, including departmental plans.
                                  •   There is an approved Pre-Qualification /Short List of Providers.
                           60%    •   There are no framework contracts for repetitively procured items.
Solicitation and bidding   7/10   •   The record of issue of solicitation document are available but some
procedures                            are not on PPDA formats
                           70%    •   Solicitation documents used follow standard format issued by
                                      PPDA
                                  •   Method used is appropriate to threshold and circumstances
                                  •   However records of Bid Submission and Opening are not available
                                  •   It was not possible to determine whether the bidding period is
                                      observed because of missing records as stated above.




                                                                                                    440
Evaluation procedures    7/10   •   Evaluation reports are prepared although not on PPDA report
                                    formats. Evaluation criteria used does not distinguish between
                         70%        preliminary, technical and financial evaluations.
                                •   Members of Evaluation are approved by Committee by CC
                                •   Records of Acceptance of Code of Ethical Conduct for EC
                                    members are available
Contract   placement,    0/10   •   For most of the procurements sampled, there was no evidence of
award and management                award by letter of bid acceptance from PDE or contract documents
                         0%         like LPOs. There were no notices for best evaluated bidder.
                                •   There is non submission of letters to unsuccessful bibbers.
                                •   There was no evidence of user department involvement in
                                    certifying payments and contract management.
                                •   Notice of Best Evaluated Bidder and Notice of Contract Award are
                                    not posted on PDE Notice board and PPDA website for statutory
                                    display period.
                                •   NO Solicitor General approval has yet been obtained for the
                                    contracts recently signed.
                                •   There was no Evidence of Execution/Performance of contract
                                    within the contractual completion dates as all contracts sampled
                                    were recently signed
Reporting                0/6    •   Procurement reference numbers are not written in accordance with
                                    PPDA LG guidelines. Procurements are referenced as e.g.
                         0%         04/08/03-05.
                                •   No quarterly reports on procurements have been submitted to the
                                    Authority.
Performance         of   5/8    •   CC minutes on procurements are available with their decision
Contracts Committee                 however there is no record of CC decision on submissions on PP
                         63%        form.
                                •   Notice of Best Evaluated Bidder and Notice of Contract Award are
                                    not posted on PDE Notice board and PPDA website for statutory
                                    display period.
                                •   Unsuccessful bidders are not notified in writing.
                                •   Contract Document is not approved by Contracts Committee/
                                    Solicitor General/ Donor but a Copy of signed Contract is available.
                                •   There was no Evidence of Execution/Performance of contract
                                    within the contractual completion date.
                                •   There was no evidence of involvement of user department in
                                    certifying payments

Record Keeping           2/8    •   Record keeping is still lacking as most of the procurements
                                    reviewed lacked the required documentation as follows:
                         25%    •   Records for specific procurements are filed in separate files.
                                •   Not all the records filed contain all the requirements of the law
                                •   Standard procurement reference numbering is not used.
                                •   There is no record of supplier appraisal performance.


Total Score of PDE and   44 %                   MODERATELY SATISFACTORY
Compliance Rating




RECOMMENDATIONS:


                                                                                                   441
      1. There is need to recruit and fill the 3 vacant positions in the PDU
      2. In planning its procurements, the entity needs to consider the use of framework contracts where
          appropriate.
      3. The entity should use the recommended records of Bid Submission and Opening
      4. There is need for entity to prepare evaluation reports using the PPDA formats
      5. Evaluation reports should be approved by the CC on PPDA formats
      6. Unsuccessful bidders should be informed in writing.
      7. Users should be involved in certifying payments and contracts management
      8. Notice of Best Evaluated Bidder and Notice of Contract Award should be posted on PDE Notice
          board and PPDA website in accordance with the law.
      9. The entity should timely submit reports to PPDA in accordance with the law
      10. CC decision submissions should be prepared on the recommended PP forms.
      11. Notices of Best Evaluated Bidder and Notice of Contract Award should be posted on PDE Notice
          board.
      12. Unsuccessful bidders should be notified in writing.
      13. Proper procurement references should be used
      14. All the necessary records for a specific procurement should be properly filed.
      15. There is need for the entity to use standard procurement reference numbering
      16. There is need for the entity to prepare and file supplier performance reports




4.0      RECOMMENDATIONS AND WAY FORWARD


                                                                                                    442
Following the findings and observations from the compliance checks on the 120 PDEs, the
following recommendations are proposed under each compliance area to address the compliance
weaknesses identified and to be implemented by the responsible actor identified.

4.1    PROCUREMENT STRUCTURES
The existence and functionality of the procurement structures is the vital to the achievement of
high levels of compliance in PDEs. The following recommendations are made to strengthen this
compliance area.

No                       Recommendation                              Actor           Time frame
                                                                                   (from approval
                                                                                      of Report)
1.   To ensure the full composition of all Contracts                              One Month
     Committees
     Letters should be written to all the Accounting Officers PPDA
     of the identified 48 PDEs (21 CG and 27 LG PDEs) in
     Annex IV that did not have the full membership of the 5
     members of the Contracts Committee to nominate
     members to the PS/ST for approval as provided for in
     S.27 of the Act and Regulation 15(1) of the Local
     Government Regulations.

     Follow up should be made with the PS/ST to ensure that
     a decision on the nominated members forwarded by the PS/ST
     Accounting Officers is communicated promptly. For the
     members who are not approved by PS/ST, reasons for
     their rejection should also be communicated promptly so
     that they can nominate alternative suitable members to
     the Contracts Committee.

     Accounting Officers will also be required to put in place
     a mechanism of informing the relevant authority
     immediately these posts become vacant.

2.   To ensure the establishment of the Procurement and                           Three Months
     Disposal Unit manned by procurement professionals
     A letter should be written to the PS/ST and the
     Accountant General identifying the CG PDEs in Annex PPDA
     IV that have PDUs that are not adequately staffed at an AGO
     appropriate level to handle the volume of
     procurement/disposal requirements for such entities or
     are manned by staff who are not procurement
     professionals. The action to be requested in the letter is
     for procurement professionals to be deployed to the
     identified PDEs.



                                                                                            443
     For the CG PDEs that are statutory bodies or state
     enterprises the letter should be addressed to their
     governing bodies requesting them to recruit professional PPDA
     staff to handle this function.

     For the LG PDEs, the letter should be addressed to the
     Chairman of the District Service Commission, the CAO MOLG
     and the Ministry of Local Government.                  DSCs
                                                            CAOs

3    To enforce the role of the User Department in                         Continuous
     initiation of requirements and verification of
     performance before payment to a provider

     Training should be undertaken for User Departments in PPDA
     PDEs to ensure they initiate all procurements on PP Form
     20 and LG PP Form 1 in accordance with PPDA
     Regulation 104 and Local Government Regulation 65(1).

4.   To strengthen the role of Internal Auditors as part of                One month
     the control mechanisms in PDEs

     A Training module should be developed for Internal PPDA
     Auditors to sensitise them on their key role in auditing all MOFPED
     the procurement and disposal process including payments
     and deliveries.
5.   To implement a comprehensive Training and                             Continuous
     Capacity Building Programme

     In light of the irregularities within the PDEs that were
     observed during the compliance checks, there is need for
     PPDA to implement a training programme that is targeted
     to address the individual weaknesses in the PDEs. The
     stakeholders to be trained should include the following:
       •     Members of the Procurement Structures
       •     Heads and members of User Departments
             including Sub county chiefs and Town councils in
             the case of Local Government PDEs.
       •     Members of Governing bodies
       •     Providers on the pre-qualified lists of PDEs
       •     Civil Society.

     The areas for training should focus on the areas where
     PDEs scored least and these include:
     •      Contract Placement, Award and Contract


                                                                                   444
             Management
      •      Record keeping
      •      Solicitation and Bidding Procedures
      •      Use of appropriate Evaluation methodology and
             Evaluation Criteria.



4.2       PROCUREMENT AND DISPOSAL PLANNING

No                       Recommendation                            Actor      Time frame
                                                                            (from approval
                                                                               of Report)
1.    Revision of the Standard Procurement Plan Format                        Three months

      PPDA should form a working team with the Accountant
      General’s Office and some of the heads of the                PPDA
      procurement and Disposal Units to revise the                 AGO
      procurement plan format and make it more practical. The
      revised format should be detailed enough to capture the
      time the procurement process should be initiated, the
      method of procurement for each requirement, the time
      required for each stage in the procurement cycle as well
      as provide for aggregation of requirements. Thereafter the
      revised standard format of the procurement plan should
      be issued to all PDEs.

2.    Introduce a requirement for Accounting Officers to
      confirm that any procurement/disposal requirement
      to be undertaken is part of the approved procurement
      plan of the PDE.

      Guidelines should be issued to Accounting Officers
      requiring them to confirm that procurement and disposal      PPDA
      activities undertaken in their Entities are part of the
      approved procurement plan except for requirements that
      arise out of emergency situations.
3.    To enforce the requirement of preparation of
      procurement plans
                                                                   PS/ST     Annually at the
      A Circular should be issued to all Accounting Officers               time of the Budget
      requiring them to support their budget estimate                         Call Circular
      submissions with procurement plans as a pre-condition of
      approval by MOFPED and Parliament.

      PDEs should be required to submit to PPDA a copy of          PPDA


                                                                                    445
     their procurement plans based on the approved budget
     before the end of the 1st quarter of each Financial Year.
     The list of PDEs that are not compliant to this
     requirement should be published in press and referred to
     the PS/ST with a recommendation to withhold funding
     for these PDEs.

4.   To require PDEs to publish their procurement plans                 Three months

     A Guideline containing an abridged format of the
     standard procurement plan should be developed and           PPDA
     circulated to all PDEs requiring them to publish on their
     procurement notice boards and in the press the main
     procurements to be undertaken each financial year. PDEs
     should also make a provision for annual asset disposal
     planning

5.   To require PDEs to regularly update their                          Three months
     procurement plans

     PDEs should be required on a quarterly basis and in any     PPDA
     other case, where necessary, review and update their
     procurement plans and submit the updated and approved
     plan to the Authority.

6.   To enforce the requirement of departmental                         Continuous
     procurement plans

     A circular should be issued to all Accounting Officers      PPDA
     requiring them to put mechanisms in place to ensure that
     all departments in their PDES prepare and submit
     departmental procurement plans to their respective PDUs
     in order to facilitate orderly execution of annual
     procurement activities.
7.   To promote the use of framework contracts                          Three months

     A training module and hands on exercises specifically on    PPDA
     the use of framework contracts for the procurement of
     repetitive or commonly used items should be developed
     and implemented to target members of the Contracts
     Committees and PDUs.




                                                                              446
4.3    SOLICITATION AND BIDDING PROCEDURES

No                       Recommendation                            Actor          Time frame
                                                                                (from approval
                                                                                   of Report)
1.    Enforcement of the use of Standard Bidding                   PPDA            Continuous
      documents and Forms

      Compliance checks should be done regularly to ensure
      the correct application of the standard documents and
      forms.

      Hands on exercises should be undertaken targeted at the
      PDEs that scored below the satisfactory compliance
      rating.

2.    Development of sector specific SBDs                                         Six months

      Sector specific SBDs should be developed for key sectors    PPDA in
      such as:                                                   consultation
         • Health – Drugs                                          with the
         • Education - Textbooks                                   sectors
         • Roads –Labour based maintenance works
         • Revenue Collection – management services
         • In formation Technology – supply, installation
             and training.

3.    Guidance on statutory time frames in the                                    Six months
      procurement process

      A study should be commissioned to establish the factors      PPDA
      that create delays in the procurement cycle and propose
      ways of minimizing the overall procurement lead time.

4.    Training of Providers

      A training module should be developed to target              PPDA          Four months
      providers under their different sectors or regulatory
      bodies to build their capacity on how to prepare and
      submit responsive bids




                                                                                       447
4.4    EVALUATION PROCEDURES

No                       Recommendation                             Actor     Time frame
                                                                            (from approval
                                                                               of Report)
1.    To provide guidance to PDEs on the evaluation                             3 months
      criteria at preliminary evaluation and Post
      qualification stages.

      In order to prevent good bids from being eliminated           PPDA
      purely on failure to meet eligibility criteria, guidance
      should be provided to PDEs on which criteria should be
      under the Preliminary evaluation process and which
      should fall under post qualification.

2.    To ensure more transparency in the evaluation                            5 months
      process

      In order to reduce subjectivity and fraudulent practices in   PPDA
      the evaluation process, a Guideline should be circulated
      to all PDEs informing them that Bids that contain a wide
      margin of arithmetic errors (e.g over 10%), or are
      technically not responsive, should be rejected. Where
      such bids are deemed not to be responsive, the reasons
      for their non responsiveness should be recorded by the
      Evaluation Committee and disclosed in the submission by
      the PDU to the Contracts Committee when forwarding
      the Evaluation Report for their approval.

3.    To prevent leakage of confidential information during                    5 months
      the Evaluation process

      The Code of Business Ethics for Providers should be           PPDA
      revised to include the provision that where a Bidder is
      discovered to have insider knowledge of the details of the
      evaluation process before the PDE displays the BEB, the
      Bid of that bidder should be disqualified from further
      consideration by the PDE

4.    To introduce statutory time frames for the evaluation                    6 months
      process

      In order to prevent prolonged delays by PDEs during the       PPDA
      evaluation process, a guideline should be issued to PDEs
      specifying the maximum evaluation time frames


                                                                                   448
      applicable under to each procurement and disposal
      method.

5.    To strengthen provisions against conflict of interest                   8 months

      The PPDA Act should be revised to make it an offence
      where members of Contracts Committees and Evaluation         PPDA
      Committees do not sign the Code of Ethical Conduct in
      Business before each meeting.                               MOFPED

      The Code of Ethical Conduct in Business in the Fifth
      Schedule to the Act should be revised to clearly provide
      for what amounts to a conflict of interest in procurement
      and disposal process.



4.5    CONTRACT AWARD AND MANAGEMENT

No                       Recommendation                            Actor     Time frame
                                                                           (from approval
                                                                              of Report)
1.    The Accounting Officer should put in place mechanisms         AO        Continuous
      to ensure that the user departments are involved in           UD
      certification of payments of the Contractual sum.
2.    For contracts entered into after the use of the open and      CC       Continuous
      restricted bidding methods, the Contracts Committee
      should require the head of the user departments to
      develop contract monitoring performance indicators and
      submit regular reports to the PDU.
3.    The Accounting Officer should ensure that all                 AO       Continuous
      unsuccessful bidders are informed in writing as required
      under Reg. 225 (4) of the PPDA Regulations and Reg.
      86(5) of the LG (PPDA) Regulations.
4.    In order to have a strong deterrent for PDEs from                      10 months
      entering into irregular contracts, the PPDA Act should be    PPDA
      amended to provide that Accounting Officer who enters
      into a contract without following the prescribed            MOFPED
      procedures and approvals prior to contract award will be
      personally responsible for any loss that the PDE may
      incur as a result of the omission.




                                                                                  449
4.6    REPORTING

No                       Recommendation                             Actor     Time frame
                                                                            (from approval
                                                                               of Report)
1.    PPDA should form a working team with the Accountant           PPDA        2 months
      General’s Office and some of the heads of the
      procurement and Disposal Units to revise the monthly          AGO
      and quarterly reporting format so that it provides more
      information on a number of key compliance indicators
      such as whether the procurement was part of the
      procurement plan..
2.    In order to enforce the requirement for submission            PPDA      Quarterly
      monthly and quarterly of reports to PPDA in a timely
      manner, the list of non compliant PDEs should be              PS/ST
      published and referred to the PS/ST for disciplinary
      action.
3.    PPDA should pursue avenues of enabling PDEs to submit         PPDA       6 months
      required reports and notices electronically using standard
      formats and for PPDA to electronically capture this data
      for purposes of having statistics on the procurement and
      disposal system readily availed to key stakeholders.

      PPDA should also operationalise its website to receive
      and display this information instantly through a dedicated
      link with the PDEs.

4.7    PERFORMANCE OF CONTRACTS COMMITTEES

No                       Recommendation                             Actor     Time frame
                                                                            (from approval
                                                                               of Report)
1.    Regular compliance checks should be undertaken to             PPDA        Quarterly
      ensure that the Contracts Committees are taking decisions
      on submissions in accordance with the law and that their
      decisions are properly recorded.

      Contracts Committees that remain non compliant will be
      referred to the PS/ST with a recommendation for their
      suspension or removal from the committee.
2.    The PPDA Act should be amended to specifically                PPDA      10 months
      prohibit the Contracts Committees from granting
      retrospective approval for any procurement or disposal       MOFPED
      activities in their Entities.



                                                                                   450
4.8    RECORD KEEPING

No                       Recommendation                            Actor     Time frame
                                                                           (from approval
                                                                              of Report)
1.    Hands on training exercises should be undertaken for all     PPDA       Continuous
      the PDEs that scored less than satisfactory compliance
      rating. All PDUs in these PDEs should be trained on
      proper filing so that each transaction has its on complete
      file with all relevant records and has the prescribed
      Procurement / Disposal Reference numbers.

      Follow up compliance checks should be undertaken and
      for the PDEs that are persistent offenders as regards
      proper record keeping they should be referred to PS/ST
      and Head of Public Service for stringent disciplinary
      measures.
2.    A circular should be issued to all Accounting Officers to    PPDA      One month
      ensure that a proper filing system is kept by the PDU that
      records the trail of each procurement / disposal process
      from planning to contract implementation and fulfils the
      legal requirement for safe keeping of public records.
3.    The Contracts Committees should ensure that the PDU           CC       Continuous
      liaises with the User to put in place systems for provider   PDU
      appraisal performance.




                                                                                  451
     4.9    WAY FORWARD

       The results of the compliance rating of the 120 PDEs are to be communicated to all the key
       stakeholders in particular the competent authorities for their further action. The specific
       recommendations will be given agreed action time frames for implementation by each of the
       PDEs and are to be followed up in future compliance checks.

       The Central and Local Government PDEs that have been rated as Highly Satisfactory are in a
       strong compliance (good to excellent) position. Their Management is committed to ensuring
       compliance with the law. All procurement structures are in place and functioning effectively.
       The violations noted relate to relatively minor deficiencies in forms or practices that are easily
       corrected. As a result, the PDE gives no cause for regular compliance monitoring but random
       compliance checks may be conducted to ensure it remains in this strong compliance position.

       The Highly Satisfactory PDEs were the following:

                           CG PDES                               LG PDES
           Capital Markets Authority                     Kamwenge District
           Electricity Regulatory Authority
           Kyambogo University
           Rural Electrification Agency
           Uganda Coffee Development Authority
           Uganda Human Rights Commission
           Uganda Insurance Commission


       The Central and Local Government PDEs that have been rated as Satisfactory are fairly strong
       compliance (above average) position. Management is capable of compliance. The violations
       noted involve technical aspects of the law or result from oversight on the part of the
       procurement personnel. On line support, legal advice and training may eliminate many of the
       violations. The Satisfactory PDEs were the following:

                                         CG PDES                                                        LG PDES
Cotton Development Organisation               National Environment Management
Courts of Judicature                          Authority                                            Kamwenge District
Directorate of Public Prosecutions            National Forest Authority                            Kibaale District
Education Service Commission                  National Housing and Construction                    Apac District
Gulu University                               Company Ltd                                          Budaka District
Inspectorate of Government                    National Planning Authority                          Fort Portal
Internal Security Organisation                National Water and Sewerage                          Municipality
Law Development Centre                        Corporation Ltd                                      Mpigi District
Local Government Finance Commission           Parliament of Uganda                                 Gulu District
Makerere University Business School           Privatization Unit                                   Iganga District
Ministry of Energy and Mineral                State House                                          Kisoro District
Development                                   Uganda AIDS Commission                               Arua Municipality
Ministry of Finance, Planning &               Uganda Electricity Distribution                      Kiruhura District



                                                                                                     452
                                        CG PDES                                                    LG PDES
Economic Development                         Company                                          Pallisa District
Ministry of Gender, Labour and Social        Uganda Electricity Generation Company            Nakasongola
Development                                  Uganda Electricity Transmission                  District
Ministry of Information and                  Company Ltd.
Communications Technology                    Uganda Export Promotion Board
Ministry of Lands, Housing and Urban         Uganda Management Institute
Development                                  Uganda National Examination Board
Ministry of Public Service                   Uganda Police
Ministry of Water and Environment            Uganda Population Secretariat
Ministry of Works and Transport              Uganda Prisons Service
Mulago Hospital                              Uganda Revenue Authority
National Council for Science and             Office of the Prime Minister
Technology                                   Uganda Communications Commission


       The Central and Local Government PDEs that have been rated as Moderately Satisfactory are
       in a weak (less than average) compliance position. Although management may have the ability
       to ensure compliance, increased efforts are necessary. It is a cause for concern and requires
       more than normal compliance monitoring to remedy deficiencies since violations may be
       numerous. In addition, previously identified violations from compliance checks or audits may
       remain uncorrected. The numerous violations discovered are an indication that management
       has not devoted sufficient time and attention to compliance with the law. The procurement
       structures may have not proven effective and require strengthening. This may be accomplished
       by, among other things, on line support, legal advice and training and regular compliance
       checks. By identifying a PDE with marginal compliance early, additional monitoring measures
       may be employed to eliminate violations and prevent further deterioration in the PDE's less-
       than-satisfactory compliance position.

       The Moderately Satisfactory PDEs were the following:

                       CG PDES                                     LG PDES
       Auditor General                             Adjumani District
       Gulu Hospital                               Bundibugyo District
       Health Service Commission                   Bushenyi District
       Masaka Hospital                             Busia District
       Mbale Hospital                              Gulu Municipality
       Micro Finance Support Centre Ltd            Hoima District
       Ministry of Defence                         Isingiro District
       Ministry of Internal Affairs                Kabale District
       Ministry of Trade, Tourism and Industry     Kabale Municipality
       National Council for Children               Kalangala District
       National Curriculum Development             Kampala City Council
       Centre                                      Kanungu District
       Post Bank (U) Ltd                           Kapchorwa District
       Posta Uganda Ltd                            Kayunga District



                                                                                                453
               CG PDES                                     LG PDES
Public Service Commission                   Kiboga District
Uganda Communications Commission            Lira Municipality
Uganda Development Bank                     Masaka District
Uganda Printing and Publishing              Mbale District
Corporation                                 Mbarara Municipality
                                            Moyo District
                                            Nakasongola District
                                            Namutamba District
                                            Nebbi District
                                            Oyam District
                                            Rukungiri District
                                            Sembabule District
                                            Soroti Municipality
                                            Tororo Municipality
                                            Wakiso District

The Central and Local Government PDEs that have been rated as Unsatisfactory are in an
extremely weak compliance position and require constant compliance monitoring to promptly
correct the serious compliance problems disclosed. Numerous violations are present and there
may be numerous complaints from bidders. Clearly, management of the Entity has not exerted
sufficient effort to ensure compliance and this attitude may indicate a lack of interest in
ensuring compliance which may have contributed to the seriousness of the PDE's compliance
problems. The procurement structures have not proven effective and procedures and records
are seriously deficient. Prompt action on the part of the Authority may enable the PDE to
correct its deficiencies and improve its compliance position.

The Unsatisfactory PDEs were the following:

                CG PDES                                     LG PDES
Uganda Printing and Publishing              Adjumani District
Corporation                                 Luwero District
Arua Hospital                               Kasese District
Diary Development Authority                 Mukono District
Ministry of Justice and Constitutional      Pader District
Affairs                                     Jinja Municipality
National Council for Higher Education       Mubende District
Soroti Hospital                             Entebbe
Uganda Investment Authority                 Municipality
Uganda Property Holdings Ltd

The Central and Local Government PDEs that have been rated as Highly Unsatisfactory do
not have any compliance position since they are substantially noncompliant with the law.
Management of the Entity have demonstrated their unwillingness or inability to operate within
the law. Previous efforts on the part of the Authority and other government oversight agencies
to obtain voluntary compliance may have been unsuccessful. Lack of transparent procedures or



                                                                                          454
serious repeat violations may be present. Improvement of the PDEs compliance position will
require the Authority to appeal to other competent authorities for their specific intervention.

The Highly Unsatisfactory PDEs was the following:

            CG PDES                                          LG PDES
Management Training and Advisory                              None
Centre


Once the report is approved the Authority will publicise the ratings in the media and on the
PPDA website. In addition to publicising the PDEs that are rated as Unsatisfactory and Highly
Unsatisfactory, the Authority will also publicise the PDEs that are rated as Satisfactory and
Highly Satisfactory to provide an incentive for other PDEs that to improve their compliance
position. The compliance rating report will also be circulated to stakeholders and included in
the Annual Report of the Authority.

The results will also be used by PPDA in planning future Compliance Checks, Procurement
Audits and Training Programmes by focusing its limited manpower and resources on the PDEs
that are rated lowest and therefore present the highest risk.

It is further planned to undertake Compliance Checks on the remaining 80 Central and Local
PDEs so that a Base line can be established for all PDEs to measure their future progress in the
implementation of the PPDA Act.




                                                                                            455
                                                                                                                ANNEX I
                                                 TOOL FOR COMPLIANCE CHECKS


    Background Information2

Name of Procuring and Disposing Entity

Legal / Institutional Status
Mandate
(Public Function)
Size of PDE
(In respect of number of staff/geographically spread sub units &
Estimated Volume of Procurements as % of total annual budget of
PDE)

Source of funding – Whether GOU or Donor funded and whether
PDE generates its own funds

Previous Compliance Ratings of PDE and dates of these ratings
Name of Assessor (s)
Date of Assessment

    2
     The Background Information on an individual PDE will not change much over the years and may be obtained directly from the PDE
    or the PDE files at PPDA.
    2. The compliance rating MUST be based on a sample of completed procurements in each PDE i.e. a minimum of 10 cases and the
    scores should be based on actual deviations noted from the cases sampled.
    3. The sampled cases should have a mix of the different procurement methods and should also have a representative mix from the 3
    categories of Works, Services and Supplies.




                                                                                                                                 456
  Compliance             Compliance Indicators               Legal Requirement     Source of Information and           Score3 Comments /
    Area                                                                             Means of Verification              (0-2) Recommendations
                                                               CG          LG
1. Procurement     1. The Accounting Officer has a          Sect. 26   Reg.14    Interview with AO to assess
Structures         clear understanding of his/her role                           his/her knowledge of main roles i.e
                   for the overall responsibility for the                        establishment of functional CC &
                   procurement and disposal process.                             PDU, seeking approvals from
                                                                                 relevant govt organs, commitment
                                                                                 of funding, signing of contracts,
                                                                                 delegation and handling of
                                                                                 administrative review complaints

                   2.The 5 Contracts Committee          Sect. 27 Reg. 15 (1)     PPDA PDE file or records of
                   Members are approved by ST and                                Secretary of CC
                   PP Form 220 filed with PPDA
                   3. Established Procurement and       Reg. 57 Reg. 23 (1)      PPDA PDE file
                   Disposal Unit and PP Form 221 filed
                   with PPDA.
                   4. The User Department initiates all Reg. 104 Reg. 65 (1)     PDU file records and interviews
                   procurements on PP Form 20.                                   with Heads of departments
                   5. The Internal Auditor audits the       PFAA       Reg. 28   Internal Audit Reports to
                   procurement and disposal process,        Reg.                 Management contain findings
                   payments and deliveries.                 27-28                from the audit of the procurement
                                                                                 and disposal process
                                                                                                                       --- out
                         Total Score and Rating of Compliance Area                                                     of 10 =
                                                                                                                       --- %


     3
         The Score Rating for each Compliance Indicator is as follows: No Evidence = 0; Some Evidence = 1; Strong Evidence = 2.




                                                                                                                                        457
  Compliance          Compliance Indicators              Legal Requirement         Source of Information and        Score3 Comments /
    Area                                                                             Means of Verification           (0-2) Recommendations
                                                           CG           LG
2. Procurement    1.Existence of approved Pre-           Reg.       Reg. 35
and Disposal      Qualification /Short List of           142                      PPDA PDE file or Contracts
Planning          Providers.                                                      Committee minutes
                  2. Existence of departmental           Sect. 60   Reg. 62 (1)
                  procurement plans                                               PDU file records and interviews
                                                                                  with heads of departments
                   3. Existence of approved              Sect. 58   Reg. 62-63    PDU file records or PPDA PDE
                   Procurement Plan.                                              file
                  4. Existence of Assets Register with   Reg. 295 Reg. 122
                  provision for asset disposal                                    PDU file records or PDE
                  planning                                                        financial records
                  5. Use of framework contracts for      Sect. 58   Reg. 62 (5)   PDU file records or Contracts
                  repetitively procured items            (c)        (g)           Committee minutes
                                                                                                                    --- out
                  Total Score and Rating of Compliance Area                                                         of 10 =
                                                                                                                    --- %
                  1. Record of issue of solicitation     Reg. 146 Reg. 66 (4)     PDU file records
3. Solicitation   document                               (3)
and Bidding       2. Solicitation document uses          Reg. 128 Reg. 48(1)      PDU file records
Procedures        standard format issued by PPDA
                   3. Method used is appropriate to      Sect. 79   Reg. 73 (3)   PDU file records and CC minutes
                   threshold and circumstances
                   4. Minimum bidding period        Reg.            Reg. 55(3)    PDU file records and copy of
                   observed                         145                           advert or solicitation doc
                   5. Record of Bid Submission and  Reg.            Reg. 70 (5)   PDU file records
                   Opening                          158 (3)         71 (11-13)
                                                    & 164
                  Total Score and Rating of Compliance Area                                                          -- out
                                                                                                                     of 10
                                                                                                                     = --%




                                                                                                                                     458
  Compliance           Compliance Indicators          Legal Requirement         Source of Information and          Score3 Comments /
    Area                                                                          Means of Verification             (0-2) Recommendations
                                                        CG          LG
                   1. Approval of Members of          Reg. 169 Reg. 72 (2)     CC minutes and PDU file records
4. Evaluation      Evaluation Committee by CC.        (2)
Procedures
                   2.Use of appropriate               Reg. 168 Reg. 79 (1)     PDU file records and solicitation
                   Evaluation Methodology.            (2),172                  doc
                                                      & 197
                   3.Record of                        Reg. 169 Reg. 27 (9)     PDU file records
                   Acceptance of Code of Ethical      (9) &    & (10)
                   Conduct for EC members and         171 (5)
                   Evaluation minutes.
                   4.Record of                        Reg.      Reg. 81        PDU file records
                   Evaluation Report.                 168(1),
                                                      171(10)
                                                      & 195
                   5.Approval of                      Reg. 195 Reg. 84 (4)     CC Minutes
                   Evaluation Report by CC.           (3) & (4)
                                                                                                                   --- out
                   Total Score and Rating of Compliance Area                                                       of 10 =
                                                                                                                    --- %
                                                      Reg. 224 Reg. 44, 85
5. Contract        1.Notice of Best Evaluated         (3)      (1)             PDU file records and PPDA
Placement, Award   Bidder and Notice of Contract                               website
and Management     Award posted on PDE Notice
                   board and PPDA website for
                   statutory display period.
                                                      Reg. 225 Reg. 86 (5)
                   2.Notification of the award to     (4)                      PDU file records
                   Unsuccessful bidders in writing.
                                                      Reg. 48   Reg. 46 (2),
                   3.Approval of Contract             (e), 90   84 & 86 (2)    CC Minutes and PDU file records




                                                                                                                                    459
  Compliance       Compliance Indicators             Legal Requirement          Source of Information and         Score3 Comments /
    Area                                                                          Means of Verification            (0-2) Recommendations
                                                       CG              LG
               Document by Contracts                 (j) &       (f)           containing letters of approval
               Committee/ Solicitor General/         225 (2)
               Donor whichever is applicable and     (f)
               Copy of signed Contract.
                                                     Reg. 91     Reg. 46 930
               4.Evidence of Execution               (c) & (e)   (e) & 104     PDU file records and CC Minutes
               /Performance of contract within the
               contractual completion date.
                                                     Reg. 260 Reg. 119
               5.Evidence of involvement of User     (2) (iii)                 PDU file records
               dept in certifying Payment of
               Contractual sum.
                                                                                                                 --- out
               Total Score and Rating of Compliance Area                                                         of 10 =
                                                                                                                    --- %

               1.All Monthly Reports                 Reg. 40     Sect. 94D
6. Reporting   Submitted on time and up to date at                             PPDA PDE file and PDU file
               the time of the compliance check                                records
                                                     Reg. 118 Reg. 7 (1)
               2.Reports use Standard Formats        (9)                       PPDA PDE file and PDU file
               and all PP Forms 200, 201 & 202                                 records
               are filled and CC Minutes attached.
                                                     Reg. 41     Reg. 7 (2)
               3. Any Queries by PPDA on             (c)                       PPDA PDE file
               reports submitted have been
               satisfactorily resolved.
                                                                                                                 --- out
                      Total Score and Rating of Compliance Area                                                  of 6 =
                                                                                                                  --- %




                                                                                                                                   460
  Compliance            Compliance Indicators             Legal Requirement           Source of Information and    Score3 Comments /
    Area                                                                                Means of Verification       (0-2) Recommendations
                                                            CG             LG
                    1.Record of Acceptance of             Reg. 53      Reg. 20 (1)   CC Minutes
7. Performance of   Code of Ethical Conduct in            (2) (b)
Contracts           Business by CC members present
Committee           on PP Form 211.
                    2.Record of Contracts                 Reg. 51      Reg. 18 (3)   Records of CC Secretary
                    Committee decision on a               (8), 53
                    submission on PP/DPA Form.            (2) (c)
                    3.Record of Contracts                 Reg. 53      Reg. 19 (3)   Records of CC Secretary and
                    Meeting on PP Form 210 and            (2) (c),                   PPDA PDE file
                    record of signed minutes.             56 (c)
                    4.Contracts Committee has not         Reg. 55      Reg. 19 (4)   CC Minutes
                    granted any retrospective approval.   (2) (c)(i)   (b)
                                                                                                                   --- out
                           Total Score and Rating of Compliance Area                                               of 8 =
                                                                                                                    --- %
                     1.Existence of                       Reg. 90      Reg. 46 (2)   PDU file records
8. Record Keeping   Record/filing system in PDU.
                    2.Records filed contain all the       Reg. 90 Guideline          PDU file records
                    requirements of the law               & 91     No.9
                    3. Individual cases have the          Reg. 104 Reg. 65 (3)       PDU file records
                    standard procurement reference        (3)
                    numbering

                    4.Record of Supplier                  Reg. 260 Reg. 119          PDU file records
                    Appraisal/Performance
                                                                                                                   --- out
                         Total Score and Rating of Compliance Area                                                 of 8 =
                                                                                                                    --- %




                                                                                                                                    461
                Aggregate Score and Compliance Rating of PDE =          --- %




                                       KEY:

% Total Score for Compliance   % Aggregate Score for PDE              Rating
Area
             81-100                      81-100            HS   Highly Satisfactory
              61-80                       61-80            S    Satisfactory
              41-60                       41-60            MS   Moderately Satisfactory
              21-40                       21-40            U    Unsatisfactory
              0 - 20                      0 - 20           HU   Highly Unsatisfactory




                                                                                          462
                                                                                                                             ANNEX II
                                               OVERALL PERFORMANCE OF THE 120 PDES

                                                           Rating Results For Central Government PDEs
                                                               CA:
                                                  CA:                                  CA: Contract                   CA:
                               CA:                         Solicitation   CA:                                                      CA:
                                             Procurement                                Placement,       CA:      Performance               Aggregat
                               Procurement                 and Bidding    Evaluation                                             Record                 Overall
          Name of PDE                          Disposal                                 Award and     Reporting   of Contracts              e Score.
                               Structures                  Procedures     Procedures                                             Keeping                Rating
                                               Planning                                Mana