The audit noted that while a few procurements were fairly executed, others had some gaps as highlighted in the audit report.
For instance, there were numerous instances of non-compliance, there was non-compliance with the public procurement and Asset Disposal Act, 2015 and Regulations 2006.
Specifically, anomalies relating to the use of wrong procurement methods and delayed deliveries were rampant.
The commission should take appropriate corrective action(s) and enforce compliance with all statutory provisions. Going forward, the commission should adhere to Public Procurement Regulatory Authority
Circular No. 01/2016 of 16th
December 2016 on reporting requirements by procuring entities.
In at least ten cases of tenders worth Sh 4,599,864,754 representing 74 percent, we could not provide assurance on whether there was value for money on goods or services procured.
This was largely due to acquisition of goods and services at exaggerated prices and lack of Market Survey Reports, among other factors.
Looking ahead, the commission should consider the use of framework contracts so as to shorten the procurement process and stabilize purchase prices.
Overall, there is the need for the commission to procure goods and services in a manner that is lawful, authorized, effective, efficient, economical and transparent in line with provisions of the public finance management act (2012)
Cases were noted where the commission did not obtain valid performance guarantees. In case of non-performance by a vendor, the mechanisms for compensation become limited.
There is a need for the commission to always obtain valid performance in the future.
There were gaps relating to contracts between the commission and vendors. For example, lack of itemization of deliverables and costing of the same provided grey areas.
In one case, a contract was time-based rather than deliverable-based.
Going forward, the commission should institute proper controls in the area of contracting to prevent third-party risks and financial losses.
Specifically, the commission should develop a contracting policy and procedures for adoption and future guidance.
There were several cases on non-compliance with regards to operations by appointed committees, for example, there were cases where inspection and acceptance committee reports were signed by a single member or specification were not itemized.
Going forward, the commission should sensitize individuals appointed to the tender opening, tender evaluation and inspection and acceptance committees on their roles and implications for non-performance.
Extracted from the IEBC internal report