PROCUREMENT PROCEDURES

Treasury moves to streamline procurement documentation in ministries

Public procuring entities still hold inaccurate and incomplete documents , propagating loss of public funds

In Summary

•This is likely to mean that most entities are still using the manual systems and not utilising the Public Procurement Information Portal hosting awarded contracts and suppliers and improve transparency.

•The total registered suppliers are 10,357 as a total number of contracts for the financial year 2019-2020 were 128 worth Sh95.69 million.

Treasury buildings.
UNPAID BILLS: Treasury buildings.
Image: MONICAH MWANGI

The National Treasury plans to streamline and consolidate procurement and asset disposal documents in government.

A draft policy is now being formulated to deal with the poor filing and documentation of public finance records

According to acting National Treasury cabinet secretary Ukur Yatani, poor record management in public procurement entities has led to inaccurate and incomplete documents.

This he said has posed a challenge to audit public procurement and asset disposal creating room for corruption and loss of government funds gained from budget allocations and loans.

The entities will now be required to prepare prior annual disposal plans for assets which have become obsolete.

 
 
 

“The poor planning disrupts programs that may result in budget distortions and pending bills. A lot of wastage and increased cost are incurred due to unnecessary high stocks, poor storage and poor record-keeping which is largely manual,” Yatani said.

Most entities are still using the manual systems and not utilising the Public Procurement Information Portal hosting awarded contracts and suppliers to improve transparency.

While it is a requirement that all ministries, state agencies and departments list on the portal only 410 entities have been registered.

In the draft, procuring entities will be required to maintain complete and accessible records for all contracts and transactions made.

According to the draft, the Kenya Institute of Supplies Management will be mandated to register procurement professionals and take disciplinary actions for those who lack to adhere to the standards.

“Public entities shall design systems and procedures for controlling, receiving, maintaining, securing and tracking movements of procurement and asset disposal records and documents,” says the draft. 

For goods and services that are sourced outside the country, Public Procurement and Asset Disposal system sets that counties that have signed trade treaties and interests with Kenya will be given priority.

 
 

Development of the policy framework is part of the ongoing Public Finance Management reforms.

It has also been drawn from challenges faced in the management of public procurement processes among them mis-procurement, delayed payments, inflated costs and cost overruns and project delays denying benefits to taxpayers.

Recently, the Head of Public Service directed all counties and departments to pay pending bills that had caused agony to contractors and suppliers majority MSMEs. They had upto November 30 to clear the pending  bills.

Last week, Treasury announced that it would hold disbursement of funds to counties that had not paid the bills despite receiving funds