Procurement Capacity Strengthening Initiatives in Uganda: an Anti-Corruption approach

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Procurement Capacity Strengthening Initiatives
in Uganda an Anti-Corruption approach

• Presented at the 3rd OECD-DAC Joint Venture on
  Procurement held in Arusha, Tanzania
• 5th - 7th May 2008

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Theme of the Presentation

• Overview of the procurement reforms in Uganda
• PPDA Capacity Building interventions
• Other Anti- Corruption Initiatives
• Monitoring and Enforcement mechanisms
• National Public Procurement Integrity Survey
• Challenges
• Way Forward

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Uganda

• Population 27 million
• Area 241,000 square kilometres

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Objectives of the Procurement Reforms

• Reforms started in 1999 with a Task Force aimed
  at
• Transparency and Accountability - to fight waste
  and corruption
• Fairness/ Equal opportunity for all in the
  bidding process
• Integration of the public procurement system with
  public financial management framework
• Providing a more attractive investment climate by
  lowering risk
• Maximising competition to satisfy customer needs
  and ensure value for money
• A streamlined procurement process through the
  gradual adoption of electronic commerce

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Establishment of Decentralized Public Procurement
System in Uganda

• Key features of the procurement legal reforms
• PPDA Act of 2003 abolished the Central Tender
  Board and established PPDA as the national
  regulatory body for public procurement
• PDEs mandated to undertake unlimited procurement
  and disposal subject to standard practices and
  procedures prescribed by law
• Publication of detailed procedural regulations
  and standard formats, guidelines and standard
  bidding documentation.
• Harmonization of local government procurement
  with national standards achieved in 2006

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Capacity Building Interventions

• The 5th strategic objective of PPDA under the
  Corporate Plan is to Build procurement and
  disposal capacity.
• PPDA is implementing a 5 year Capacity Building
  Strategy that is aimed at promoting awareness of
  the PPDA Act through training programs for PDEs,
  Providers and CSOs involved in anti-corruption.
• PPDA has conducted capacity needs assessments for
  central and local government PDEs and for
  providers to identify the capacity gaps that
  hinder the effective implementation of the law.

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Capacity Building Interventions

• Promoted a Bill for the formation of a National
  professional institute for procurement
  professionals (IPPU) and raise professional
  ethics through an accreditation and certification
  mechanism to ensure that entry into the
  profession is restricted to suitably qualified
  professionals.
• Participated in the setting of minimum education
  standards and curricula for tertiary institutions
  that offer procurement courses to the public.
  (Diploma, Degree Masters level)
• Recognition of the importance of the roles of
  related professional bodies by developing
  linkages with them and participating in their
  training programmes.

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Capacity Building Interventions

• Implementation of a Publicity Strategy that
  targets CSOs and general public through print and
  electronic media.
• Establishment of the Public Procurement Policy
  Unit in Ministry of Finance charged with
• Policy guidance and technical support to PS/ST on
  procurement policy matters
• Deployment of the procurement professionals to
  PDEs and Professional development of the
  procurement cadre.
• Development of amendment proposals to the PPDA
  Act and Regulations.

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Other Anti-Corruption Initiatives

• PPDA is a member of the Accountability Sector
  Working Group and is also a member of the Inter
  -Agency Forum that implements the National Anti-
  Corruption Strategy.
• PPDA is one of the beneficiary institutions under
  the MCC Anti-Corruption Threshold Country Plan
  Project under which IFMS is to get procurement
  module.
• Key principle of decentralised system is the
  Segregation of roles and independence of the
  powers of the Procurement structures i.e.
  Governing bodies, AO, CC, PDU, EC.

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Other Anti-Corruption Initiatives

• Establishment of the Register of Providers to
  ensure that data on providers is more transparent
  and available to all actors in the procurement
  process, serves as a basis for monitoring their
  performance and compliance with the law.
• Issuing of Standard solicitation documents to
  PDEs that provide standard terms and conditions.
• Legal requirement for Bid notices to be published
  in at least one newspaper of wide circulation and
  displayed on the PDEs notice board and on the
  PPDA website on www.ppda.go.ug
• Statutory periods for procurement processes e.g.
  advertising, bidding, display of notices and
  handling of complaints

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Other Anti-Corruption Initiatives

• Mandatory requirements for PDEs to hold Pre-bid
  meetings for high-value and complex tenders with
  have the Bids read out and recorded at public bid
  openings.
• Enforcement of Procurement Planning on an annual
  basis based on approved budgets
• Issued Ethical Codes of Conduct for public
  officers and Bidders - Mandatory declarations
• Legal definition of corrupt and fraudulent
  practices in procurement.

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Monitoring and Enforcement Mechanisms

• PPDA Monitors through
• Review of the monthly/quarterly reports submitted
  by PDEs.
• Compliance assessments on agreed compliance
  indicators. (Among pilot countries for OECD-DAC
  assessment methodology)
• Procurement audits that contain agreed action
  plan for corrective actions and follow up of
  their implementation.
• Civil Society and the general public.

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Monitoring and Enforcement Mechanisms

• PPDA Enforces by
• Investigation of procurement cases where
  malpractice is suspected and recommending
  disciplinary action against the officers
  responsible for implementation by AO, PS/ST, Head
  of Public Service, IGG, etc.
• Submission of findings and recommendations from
  audits and investigations to the Auditor General
  for Parliamentary oversight.
• Hearing of administrative review appeals (2 Tier
  Complaints System)
• Suspension of Providers who breach the Ethical
  Code of Bidders
• Liaison with law enforcement agencies on
  investigation and prosecution of Offences under
  the Act.

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National Public Procurement Integrity Baseline
Survey, 2006

• Integrity Survey was conducted in 33 LGs and 13
  CG PDEs by PPDA and Office of the Inspector
  General of Government and was funded by USAID
• Main objectives of the Survey were to
• Assess the extent to which corruption is
  perceived as influencing the outcome of public
  procurement and disposal in Uganda
• Identify deterrent and other measures which are
  perceived as being effective in reducing the
  incidence of corruption and in changing attitudes
  to corruption.
• Identify the vulnerable points in the procurement
  and disposal system.

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National Integrity Survey 2006

• Findings of the Survey
• Losses due to Procurement Related Corruption -
  7.19 9.4 of total contract values were
  identified as being paid by way of corrupt
  payments in procurements at both CG and LG
  levels.
• CG Perception about Corruption -73 - 79 of the
  CG interviewees said corruption was non-existent
  or very limited in CG procurement while LGs
  perceived procurement corruption at the CG level
  to be most prevalent in the higher levels of
  management
• Identified causes of Corruption- Cultural
  reasons, Lack of independent and effective
  judiciary, Lack of effective incentive mechanism
  for public officials, such as lack of promotion
  on merit, Economic policies, Lack of effective
  reporting system, Lack of transparent and
  accountable procurement processes.
• Effective anti-corruption measures- Permanent
  prohibition of a person convicted of corruption
  from holding any public office, restitution order
  to seize assets, Payment of informers/whistleblowe
  rs on conviction of offender, Increase salaries,
  Change legal burden of proof and Taxation
  penalties.
• Level of Tolerance to Corruption - 95 of the
  interviewees perceived corruption as a serious
  offence. This contradicted other assertions that
  Uganda is tolerant to corruption
• Identified causes of corruption
• - Effective anti-corruption measures

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National Integrity Survey 2006(Statistical
Implications)
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Challenges

• Procurement capacity strengthening is closely
  linked to the broader issues of good governance
  and political and social transformation therefore
  capacity building and the development of
  professionalism is a long-term process
• The poor record keeping culture has resulted in
  lack of comprehensive statistics on the value of
  goods, services and works procured and on the key
  indicators under procurement process. This is
  exacerbated by the limited use of electronic
  commerce.
• There are still problems of political
  interference with procurement process,
  particularly at local government level.
• The limited enforcement powers of PPDA and
  overlap of mandates with other bodies requires
  close collaboration in the implementation of
  capacity development strategies.

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Way Forward

• Need to establish an effective monitoring and
  evaluation of the public procurement systems to
  determine capacity gaps at individual,
  organisational and country levels.
• Need to determine the risks and vulnerable points
  at each stage of the procurement/disposal process
  and put in place strategies to mitigate them.
• Emphasise the importance of consistent political
  commitment and support from the highest levels of
  government .
• Build Partnerships and establish linkages with
  civic organisations, oversight agencies and donor
  partners to accelerate the fight against
  corruption.

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Thank You for Your Attention