Professional Documents
Culture Documents
March 2013
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA i
THE UNITED REPUBLIC OF TANZANIA
Vision
To be a centre of excellence in public sector auditing
Mission
To provide efficient audit services in order to enhance accountability,
transparency and value for money in the collection and use of public
resources
Objectivity
Excellence
Integrity
Peoples Focus
Innovation
ii A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Table of Contents
List of abbreviations.............................................................v
List of Tables ................................................................... vi
List of Figures .................................................................. vii
Definition of terms............................................................viii
PREFACE ........................................................................ ix
EXECUTIVE SUMMARY .........................................................xi
CHAPTER ONE ................................................................... 1
INTRODUCTION ................................................................. 1
1.1 Background Information ..............................................1
1.2 Indication of the problem.............................................1
1.3 Objective of the Audit.................................................2
1.4 Scope of the audit......................................................2
1.5 Audit design.............................................................3
1.6 Assessment Criteria....................................................3
1.7 Methods of Data Collection...........................................6
1.8 Data validation Process................................................7
1.9 Structure of the Audit Report........................................8
CHAPTER TWO...................................................................9
SYSTEM DESCRIPTION...........................................................9
2.1 Introduction.............................................................9
2.2 Common risks of procurement system.............................10
2.3 Policy, Acts, and regulations related to procurement of
goods....................................................................10
2.4 Different Actors and their roles and responsibilities in
procurement Management...........................................10
2.5 Process Description...................................................17
CHAPTER THREE................................................................22
ASSESMENT OF NEEDS, COST CONTROL AND QUALITY CONTROL.....22
3.1 Introduction............................................................22
3.2 Need Assessment users...............................................22
3.3 Setting of Specifications for ICT equipment......................22
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA iii
3.4 Under-utilization of ICT equipment by the PEs..................26
3.5 Cost control for the goods supplied................................27
3.6 Quality control of the supplied ICT equipment..................29
CHAPTER FOUR.................................................................33
MONITORING AND EVALUATION OF PEs PERFORMANCE BY ACCOUNTING
OFFICERS........................................................................33
4.1 Mechanisms for Regular Monitoring of PEs Performance........33
4.2 Monitoring of the distribution of supplied ICT equipment.....34
4.3 Conducting the monitoring of suppliers performance..........35
CHAPTER FIVE..................................................................37
MONITORING AND EVALUATION OF PEFRORMANCE OF PROCUREMENT
SYSTEM BY CENTRALAUTHORITIES...........................................37
5.1 Monitoring the Performance of Procurement System by the
Ministry of Finance....................................................37
5.2 Coordination between MoF and other stakeholders.............40
CHAPTER SIX....................................................................41
CONCLUSIONS...................................................................41
6.1 Establishment of needs and setting of specifications...........41
6.2 Control of costs of ICT equipment among PEs....................41
6.3 Quality control of supplied ICT equipments......................42
6.4 Monitoring and evaluation of PEs performance by Accounting
Officers.................................................................42
6.5 Monitoring and evaluation by the PPD............................43
6.6 Harmonization of roles for various actors.........................43
CHAPTER SEVEN................................................................44
RECOMMENDATIONS............................................................44
7.1 Establishment of needs and specifications........................44
7.2 Control of cost variations over ICT equipments..................45
7.3 Controlling the quality of the items being procured............45
7.4 Monitoring and evaluation of the suppliers performance.....45
7.5 Monitoring and evaluation by PPD.................................46
REFERENCE.......................................................................47
APPENDICES......................................................................49
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List of abbreviations
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA v
List of Tables
Page
3.1 Requests for Technical Specifications submitted to the
MCST from PEs .................................................... 23
vi A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
List of Figures
Page
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA vii
Definition of Terms
viii A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
PREFACE
The Public Audit Act No. 11 of 2008, Section 28 authorizes the Controller
and Auditor General to carry out Performance Audit (Value-for-Money
Audit) for the purposes of establishing the economy, efficiency and
effectiveness of any expenditure or use of resources in the MDAs,
LGAs and Public Authorities and other Bodies which involves enquiring,
examining, investigating and reporting, as deemed necessary under the
circumstances.
These ministries have been given the opportunity to scrutinize the factual
contents and comment on the draft report. I wish to acknowledge that
the discussions with the auditees have been very useful and constructive.
This report has been prepared by Ms. Esnath Nicodem, Ms. Levina L.
Kishimba and Ms. Ndyanao Mgweno under the supervision and guidance
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA ix
of Eng. James Pilly and Ms. Wendy Massoy. I would like to thank my staff
for their assistance in the preparation of this report. My thanks should
also be extended to the auditees for their fruitful interactions with my
office.
Ludovick S. L. Utouh
Controller and Auditor General,
Dar es Salaam.
March,2013.
x A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
EXECUTIVE SUMMARY
Introduction
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA xi
Audit Findings
It was found out that establishment of needs by the PEs is not adequately
done as a result PEs purchased more equipment than their actual needs
and ended-up under-utilizing some equipments procured; the Ministry
of Communication, Science and Technology did not develop coordinated
schedule of requirements and specifications for ICT equipments; PEs
did not adhere to price ceiling set by GPSA; PEs were not conducting
inspection of ICT equipments during delivery; PEs did not adequately
conduct monitoring of their own performance and the performance of
their suppliers; PPD has failed to prepare the National Procurement
Policy and develop Procurement Standards for Public Bodies within the
planned three years although money allocated for the activity has been
spent; and PPD has never conducted monitoring and evaluation of the
procurement system.
Conclusion
The findings above have led us to conclude that: procurement entities
were not adequately establishing needs and setting specifications for the
purchased ICT equipment; there were significant variations in prices of
ICT equipment which did not always reflect superiority of specifications;
the Ministry of Science has not prepared specifications and schedule
of requirements for use by the procurement entities; the quality of
ICT equipment purchased by the PEs was not adequately controlled;
monitoring of suppliers performance was not adequately conducted by
procuring entities; despite being one of their obligations, PPD has not
included monitoring and evaluation of procurement performance among
their priorities for the last three years.
Recommendations
To the Ministry of Finance (regarding the procuring entities):
The Ministry of Finance should ensure that:
1. The PEs properly establish procurement needs by involving the
user departments by considering compatibility with the existing
equipment; and avoiding procurement of equipment beyond the
real needs.
2. The PEs fully utilize the available printers and photocopiers
before planning to purchase additional equipments.
xii A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
3. The PEs fully involve experts in the ICT field either from within the
PEs or from the parent ministry (i.e. Ministry of Communication,
Science, and Technology) in setting technical specifications; and
4. Heavy duty printers and photocopiers that PEs have are networked
and shared so that they can be used by more users to fully utilize
their capacities and reduce idle capacity which in the long run
may end up being very costly to PEs.
5. PEs make use of the list of suppliers and recommended price
ceilings provided by GPSA as much as possible in their procurement
undertakings; and
6. Adequate controls are established by the PEs to ensure that the
specifications developed take on board the real needs of the
users to avoid purchasing of unnecessarily expensive equipment.
7. Adequate controls are established to ensure that the Goods
Inspection Committees appointed by the PEs comprise of members
with necessary skills and expertise which match the type of goods
that are being procured; and
8. In all PEs, inspections of the delivered goods are adequately
conducted and reports are prepared and submitted to the
respective authorities to ensure that the purchased items comply
with the desired specifications.
9. All PEs prepare plans for monitoring the suppliers performance
from the contracting stage of the procurement process and during
the implementation phase and identify the resources needed for
the monitoring of the suppliers in place;
10. All PEs adhere to the contract terms when supervising the delivery
of goods; and
11. All PEs periodically prepare and submit reports to PPRA on the
performance of the suppliers in implementing the awarded
contracts. This information should be accessible to other PEs so
as to help them in identifying the suppliers who did not perform
well in their previous assignments and avoid engagements with
non-performing suppliers.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA xiii
To the Ministry of Finance (regarding PPD):
1. The Ministry of Finance should ensure that PPD finalise all the planned
activities. These include:
i. Preparation of the National Procurement Policy; and
ii. Developing procurement standards to be used by public bodies
when conducting procurement
2. The Ministry of Finance should also ensure that PPD includes in their
plans and implement the following:
i. Monitoring and evaluation framework for performance of
procurement system;
ii. Conducting research and other studies in order to strengthen
procurement and monitor its implementation; and
iii. Monitoring and evaluation of public procurement institutions.
3. The Ministry of Finance should ensure that PPD utilizes its funds for
implementing the budgeted activities instead of reallocating the
funds to other activities.
xiv A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
CHAPTER ONE
INTRODUCTION
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 1
delivered. These concerns motivated the National Audit Office to carry
out the performance audit in this area.
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These four Ministries selected represent ministries which had large
procurement volume of ICT equipment as well as ministries with
small volume of procurement. MCST also selected in addition to the
four ministries, had an important role to play in management of ICT
equipment.
The Government Procurement Services Agency (GPSA) was selected
because of its role in arranging procurement of common use items and
services (CUIS) by procurement entities through framework agreements
The audit covered three financial years, 2009/2010, 2010/2011, and
2011/2012 because it was enough period to gather information for the
audit.
Sub-question 1.1
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 3
disposal by tender requirements and forward them to the Procurement
Management Unit.
Public Procurement Regulation (PPR) 60(2) of GN 97, requires the
ministry responsible for matters related to computers and other related
information technology services to prepare detailed and acceptable
schedule of requirements and specifications which shall be made
available to the authority (PPRA) for use by the procuring entities when
procuring such items.
Sub-question 1.2:
Sub-question 1.3:
Sub-question 2.1:
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Sub-question 2.2
Sub-Question 2.3
Sub-question 3.1:
Sub-question 3.2:
9 PPA,2004, 7b
10 URT, the functions and organization structure of the ministry of finance (Finance,
June 2011)
11 URT, the functions and organization structure of the ministry of finance (Finance, June
2011)
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 5
Sub-question 3.3:
Interviews
Interviews were conducted with various officials including:
Ministry of Finance Officials (Public Procurement Policy Division)
to obtain information on how they manage the procurement
system in the country;
PMU officials, Accounting Officers, end users, and planning units
for getting various information on monitoring and evaluation on
the performance of procurement systems;
PPRA Officials for seeking information on various issues regarding
procurement performance, Monitoring and evaluation on
performance of procurement system;
GPSA officials to obtain information regarding arrangement of
procurement of common use items; and
Officials from the Ministry of Communication and Technology
because they are required to prepare schedule of requirements
and specifications of ICT equipment as per PPR 60 (2);
Documentary Review
Various documents were reviewed in order to obtain information to
answer the audit questions. These include but not limited:
Annual procurement Plans of PEs for 2009/2010, 2010/2011,
2011/2012;
12 URT, the functions and organization structure of the ministry of finance (Finance,
June 2011)
6 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Reports showing requests of users for past three financial years
(2009/2010, 2010/2011, 2011/2012);
Public Procurement Act 2004 & 2011
Public Procurement Regulation, PPR GN 97.
Contracts of suppliers of IT equipment for 2009/2010, 2010/2011,
2011/2012;
PPRA reports, contracts audit reports, and procurement audit
reports of PEs from PPRA-Division of Compliance and Monitoring;
Annual procurement reports prepared by selected PEs on monthly
basis that are submitted to PPRA for 2009/2010, 2010/2011,
2011/2012;
Local purchase orders Tender Evaluation reports from PEs, for
2009/2010, 2010/2011, 2011/2012;
Lists of inspection and acceptance committee members and their
qualifications/cadre;
Inspection reports;
Asset Registers of the sampled Ministries;
Certificates showing that goods have been inspected prior to
payment;
Schedule of requirements and specifications from PEs;
Performance reports from Ministry of Finance M & E reports from
MoF and PPRA for 3 financial years; and
Medium Term expenditure framework of PPD.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 7
1.9 Structure of the Audit Report
The report has seven chapters. Chapter One gives introduction of the
audit report that includes background information, indication of the
problem, audit objectives, audit questions, audit criteria, and methods
of data collections.
Chapter two provides description of the audit area which includes key
players in the audit and their roles in procurement system. Chapter
Three contains audit findings regarding needs assessment, cost control
and quality control by procuring entities whereas Chapter Four contains
findings on the suppliers performance and Chapter five contains findings
on Monitoring and evaluations by the PPD.
Chapter Six contains conclusions derived from the findings whereas
chapter seven contains recommendations to the various actors in the
procurement system.
8 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
CHAPTER TWO
SYSTEM DESCRIPTION
2.1 Introduction
The aim of this chapter is to give the highlights of the Management
of procurement system on how Monitoring and evaluation is done by
responsible authorities and Procuring Entities. Issues to be covered in
this chapter include responsible actors in management of procurement,
organization structure, policies, acts and regulations in procurement
process, and process description in the procurement system.
Value for money is the core principle underlying procurement in public
sectors. It consists of economic, efficient, and effective use of resources.
Economy in procurement means acquiring the items at the lowest
evaluated price at right quantity, time, and without compromising the
quality. Efficiency in procurement means selection of procurement
process that is consistent with government policy, producing positive
results without delays, and most appropriate to the procurement
objective.
Effectiveness in procurement means goods procured can make the
maximum possible contributions to the planned outcome of the activity.
This requires proper needs assessment, required specifications, diligently
managing the contract, and proper monitoring of procurement activities.
In this stage, one can relate the level of achievements with the planned
outcomes. It is the measure of the extent to which objectives have been
achieved.
Procurement officials are required to ensure that procurement complies
with all relevant accounting requirements, authorities, regulations,
government policies onprocurement and other relevant legislations.
Value for money can be achieved in procurement activities by doing the
following;
Getting an increased level or quality of service at the same cost.
Avoiding unnecessary purchases.
Ensuring that user needs are met and not exceeded.
Keeping the stocks within the required limit
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 9
2.2 Common risks of procurement system.
There are common procurement related risks as follows;
Needs assessment;
Unnecessary purchasing;
Goods are purchased in an uneconomic quantities;
Prices do not represent value for money;
Supplier not delivering the right level of quality;
Supplier fail to deliver in time;
Impropriety and fraud; and
Lack of accountability and transparency.
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organisation structure which is responsible for handling issues related to
public procurement.
The ministry has departments and agencies which deal with procurement
activities in the country. The Ministry is organized as follows:
Permanent Secretary
Commissioner
Public procurement policy division (PPD)
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 11
Monitor, evaluate, and review public procurement systems; and
Monitor and evaluate performance of government procurement
entities.
Public Procurement Policy Unit was established in November 2008 and it
was called Public Policy unit. In July 2009, the unit had officially started
with an appointment of Director who was under the budget of stock
verification division. The objective of the unit was to provide service in
the development and review of policy, law, regulations, and guidelines
in procurement and oversee their implementation13. Its major roles
were as follows:
To develop, review, follow up, and evaluate the implementation
of Public Procurement Policies, Acts, regulations, guidelines, and
circulars, and to facilitate establishment of procurement cadre;
To carry out studies to identify areas required to strengthen
procurement and monitor their implementation;
Prepare projection on human resources needs from the procurement
and supplies cadre and supplies staff ;
Develop and maintain an update inventory of procurement staff;
Liaise with training institution for career development programme
for procurement and supplies cadre;
To develop career structure and succession plan for Procurement;
To develop and update inventory of procurement cadre; and
To develop advisory mechanisms that will assist in establishment and
maintenance of the public procurement policy.
In June, 2011, the new organisation structure was approved again by
the President. At this time, the division was called Public Procurement
Policy Division and had, up to date, two sections; Policy development
section and Capacity development Section. The objective of the division
was to provide expertise and services in the development and review of
policy, law, regulation, and guidelines in procurement and oversee their
implementations. Its functions were defined as follows:
To develop, monitor, and evaluate and review the implementation of
Public Procurement Policies, acts, regulations, guidelines, standards,
and circulars;
13 Presidents Office, Public Service Management, The Proposed Functions and
Organisation Structure of the Ministry of Finance and Economic Affairs (For PIC
Submission), June, 2009, page 54.
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Monitor, evaluate and review public procurement system;
To manage and monitor public procurement cadre;
Study and mainstream public procurement practices;
Conduct research and other studies on public procurement and
advise;
Harmonise public procurement systems in the country and monitor
their implementations; and
Monitor the performance of public procurement institutions.
2.4.2. Public Procurement Regulatory Authority (PPRA)
The Public Procurement Regulatory Authority (PPRA) is a regulatory
body established under the Public Procurement Act CAP 410 of 2004.The
Authority is charged with regulatory functions and vested with oversight
powers and responsibilities on all public procurement activities carried
out by all public bodies in Tanzania. The functions of the Authority are
as follows:
To monitor and report on the performance of the public procurement
systems in Tanzania and advise on desirable changes;
Advise the Government, local government, authorities and statutory
bodies on procurement principles and practices;
To administer and enforce compliance on procurement processes
with the provisions of the act, regulations, and guidelines issued
under procurement act; and
Monitor and report on the performance of the public procurement
systems in the United Republic of Tanzania and advice on desirable
changes.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 13
Independence of Functions;
Annual Procurement Plan;
Compulsory Approvals;
Advertisement of bid opportunities;
Publication of awards;
Time for preparations of bids;
Methods of procurements
Use of standard tender documents;
Procurement records;
Quality assurance and controls; and
Contract Implementation.
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The ministry has a responsibility of preparing a schedule of requirement
in ICT equipments. The schedule has to be submitted to the authority
(PPRA) and later the authority has to distribute the schedule to the
procuring entities so that they use it whenever they need to procure.
Use of the schedule of requirement will bring consistency, uniformity,
and proper coordination when procuring ICT equipments.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 15
Prepare technical input to statements of requirements to the
procurement Management Unit;
Propose technical specifications to the Procurement Management
Unit when necessary; and
Liaise with PMU during budgeting.
Inspection and Acceptance Committee in the Procuring Entities
This committee is appointed by the Accounting Officer. The committee
may even consist of a member from outside the Procuring entity. Major
function of the committee is to make sure that goods that have been
delivered are of desired quality. Once goods delivered have been
inspected, the committee should issue a certificate of acceptance to
the supplier to verify that goods are of the right quantity and quality15
. The committee should consist of members of relevant qualifications for
the said goods. It is advised to have new committee with qualifications
similar to goods being delivered, whenever there is delivery of goods
because goods delivered differ from each other.
Accounting Officer
Accounting Officer of the procuring entity has the major responsibility of
monitoring performance of procuring entity, suppliers, and procurement
system in the entity. The PPR GN 97 of 2005 clause 121, sub section
121(1) states that Accounting Officer has the responsibility for execution
of procurement process in the procuring entity. The Accounting Officer
has the responsibility of monitoring the following:
The timely delivery of goods and services in the correct quantities
and to the quality specified in each contract;
The progress and timely completion of works in accordance with the
terms of each contract; and
Take or initiate steps to correct or discipline deviations from
observance of contract condition.
15 PPR, GN 97, 2005, Procedures and Inspections of Goods, Section 127, page 121
16 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
MOF (PPD)
PROCURING ENTITIES
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 17
Prioritizing the issue of performance during the planning;
Setting targets as basis of monitoring;
Collecting and analyzing data for reporting on performance of
procurement system; and
Taking corrective actions.
PPD should monitor the procurement activities of the PEs as stipulated
in their roles, analyze public procurement issues and challenges, advise,
provide guidance and follow-up on their implementation also it should
evaluate and review public procurement systems.
The division has a major responsibility of making sure that public
procurement system in the country is practiced properly. It also has a
responsibility of advising Central Government, Local Government and
Statutory bodies on issues related to procurement policies, monitoring
and evaluation, and review of public procurement systems, and
performance of public procurement institutions.
The divisions also supposed to coordinate with other stakeholders such
as PPRA on preparing and supervising various procurement policies to
make sure that procurement entities adhere to them.
Monitoring by the Public Procurement Regulatory Authority (PPRA)
The authority is answerable to the Board of Directors of PPRA but it has to
submit Annual performance Report to the Permanent Secretary (Ministry
of Finance) which is tabled in the Parliament. But the authority monitors
the compliance and report on the performance of the procurement
systems of procuring entities.
Arrangement for Procurement of Common Use Items and Services
(CUIS) by GPSA
GPSA has issued a list of common use items and their prices because it
aims at minimizing procurement cost. It conducts a market research in
order to know the prices of various items existing in the market. It then
evaluates the prices set by suppliers who bid in order to come up with
18 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
the common price which will prevail for the whole financial year taking
considerations of price fluctuations and inflation.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 19
b) PEs monitoring of their own performance
Procuring entities have the responsibility of monitoring their own
performance and performance of the suppliers who have entered into
an agreement with them. They have to make sure that items procured
are of required quality and quantity and that there are no obsolete
items or else they have to be disposed off. They also have to see to it
that the supplier delivers goods in time and that the goods are of the
required quality.
Establishment of needs
At this stage the procuring entity assesses the need for the procurement
of goods. It is done by gathering information on the end-users needs
in a long- and short-term perspective. Thorough analysis of the needs
of users should be done in order to know the necessity of the needs,
its usage based on the capacity but at the same time they have to be
economical.
Specifications
At this stage, the procuring entity determines type of goods that are
required to meet the needs identified in the needs assessment. This
process will generally result in a description of the goods to be procured.
The required standards and other specifications of the goods, and the
time they are to be delivered have to be defined. The procuring entity
should also conduct a market analysis in order to get information on the
availability of the preferred goods on the market. If there are only a few
potential suppliers of the preferred goods on the market, there is a risk
for a limited competition which may inflate prices. In such situations the
procuring entity may reconsider its requirements in order to broaden
the group of potential suppliers and thereby the competition.
Cost Control
Controlling of costs of items should be done in order to avoid over pricing
of items. Procuring entity should have a more knowledge about current
prices of items in order to have lowest evaluated bidders with reasonable
price. The Government Procurement Services Agency (GPSA), since it is
the agency that evaluates suppliers who` will later be used by procuring
entities, have the responsibility of controlling prices on items. The
Government Procurement Services Agency (GPSA) has responsibilities of
arranging procurement of common use items and services by procurement
entities through framework agreement. The Government Procurement
Services Agencyis also responsible for preparing a list of suppliers and
send to procuring entities for use whenever required.
20 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Monitoring and Quality Control
When writing the contract, the conditions should reflect the awarded
tenders price, quality and time frame. It should also clarify expectations,
roles and responsibilities for the management of the contract in order
to prevent any conflict. The supervision should be done as inspection of
work-in-progress by the Goods Inspection and Acceptance Committee16
before payment. Monitoring the performance of the supplier throughout
the contract period is necessary to be able to make well-informed
decisions for future procurements. PEs should also have enough
information about the supplier they want to use based on his previous
performance and recommended by other entities, so that they know the
kind of supplier they want to enter into agreement with. This will avoid
any conflicts that may occur.
Specifications by the Ministry of Communication, science and
Technology (MCST)
The ministry has a responsibility of preparing a schedule of requirement
in ICT equipments. The schedule has to be submitted to the authority
(PPRA) and later the authority has to distribute the schedule to the
procuring entities so that they use it whenever they need to procure.
Use of the schedule of requirement will bring consistency, uniformity,
and proper coordination when procuring ICT equipment.
16 PPR, GN 97, 2005, SECTION 127, Procedures for Inspection of Goods, pg 127.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 21
CHAPTER THREE
ASSESMENT OF NEEDS, COST CONTROL AND QUALITY CONTROL
3.1 Introduction
This Chapter presents findings on management of PEs on the assessment
of needs of its users, setting of specifications, cost control and quality
control regarding ICT equipment.
22 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
regard. Table 3.1 indicates that less than 13 percent of the PEs submitted
the requests for specifications to the MCST in 2009/2010. Further, the
percentage of the PEs that submitted the requests declined to less that
2 percent in the next two years. Interviews with the officials from the
selected PEs indicated that the PEs were not aware of this requirement.
The current ICT policy has been in place for ten years since its
establishment in year 2003 and it has never been updated. Because of this,
the policy cannot match with the current technological advancements.
Similarly, it was found that the MCST had never developed the ICT
standards to be used by public bodies.
Absence of ICT standards to be followed by public bodies has made
PEs procure different types of these equipment without due regard to
costs and compatibility of the purchased equipment with the existing
equipment (refer Section 3.3).
Table 3.1: Requests for Technical Specifications submitted to the
MCST from PEs
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 23
particular project to be compatible with any similar goods that were
already supplied or provided for compatibility on usage.
According to document review and interviews with PEs officials, it was
noted that in most of PEs, the brands which are commonly used are
based on Windows Operating System. However, the records for the year
2011/2012 showed significant variations in the specifications for laptop
that were purchased by the four ministries (refer Table 3.2).
Table 3.2: Variation in Specifications for Laptops
24 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Table 3.3: Variation in Specifications for Desktop Computers
19 Note that most IT experts operating in Tanzania have been trained based on Windows
Operating System and not LINUX.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 25
Table 3.4: ICT equipment with different operating system
26 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
3.5 Cost control for the goods supplied
Year Pro- ICT equip- Prices (TSh) and Date Supplier Difference Per-
curing ment (TSh) in Price cent-
entity (TSh) age
2009/10 MoW Desktop 1,850,000 1,414,893 2 differ- 435,107 24
Computer- on on ent sup-
DELL 20/6/2009 15/7/2009 pliers
Optiplex
760MT
HP Laser- 600,000 680,000 2 differ- 80,000 13
Jet Printer ent sup-
P2055DN In October. In Feb. pliers
2009 2010
2010/11 MoIT Desktop 1,480,000 1,043,000 2 differ- 487,000 30
computer ent sup-
Dell Opti- In April In June pliers
plex, 380 2011 2011
pentium,
3.0 GHz
Photocopi- 9,600,000 8,500,000 Same 1,100,000. 11
er Canon supplie
IR 231 8L In April In June
2011 2011
2011/12 MOIT Desktop 1,480,000 2,100,000 Same 620,000 41
Computer supplier
MoW DELL OPTI- In On
PLEX 12/12/2011 16/1/2012
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 27
Year Pro- ICT equip- Prices (TSh) and Date Supplier Difference Per-
curing ment (TSh) in Price cent-
entity (TSh) age
MoW Apple 3,500,000 2,950,000 2 Differ- 550,000 16
Ipad 3, ent sup-
64GB wifi 23/4/2012 on pliers
+3G. 3/5/2012
28 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
As a result of the above, in 2009/2010 the Government Procurement
Services Agency (GPSA), started arranging procurement of common
use items through framework agreements, preparing suppliers list and
approval of prices to be used by procuring entities 22.
Review of documents from the selected PEs revealed that PEs do not
adequately adhere to the guidance issued by the GPSA. Despite having
a list of common use items with their respective ceiling prices as set
by GPSA, the PEs opted to other procurement methods, in this case
quotations or other methods was used for purchasing the ICT equipments.
Interviews with officials from the selected PEs indicated that the
decision to use quotation or other methods was based on the fact that
the specifications which were provided in the list provided by GPSA were
outdated, and the prices were very high. However, further scrutiny of
the documents from the selected PEs showed that the PEs purchased the
ICT equipment through quotations and other methods at higher prices
compared to the price ceilings issued by GPSA although the specifications
for the items were the same (refer Appendix 4).
The decision by the PEs not to adhere to price ceilings set by GPSA
increase the burden to the government because the PEs were using
additional resources for duplicating the efforts by taking the suppliers
through another selection process and, at the same time accept prices
that are higher than the approved price.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 29
3.6.1 Adequacy of inspections conducted
When PEs procure goods, it is expected that the prices paid by the
procuring entity to represent the best value23. Goods procured are
expected to be of satisfactory quality, appropriate to the public authority
requirements.
Interviews with officials from the 4 PEs indicated that inspections were
being conducted for all the supplied ICT equipment in all the 4 ministries.
However, review of documents from the MOIT and MoHA did not show
any signs that inspections were being conducted.
On the other hand, review of documents from the MoW showed that the
goods were inspected although the inspection reports did not show the
records of the tests conducted.
Document review at the MoHSW indicated that the inspection teams
were recording quantity and value of the delivered goods with no
comments on the compliance with specifications.
30 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
According to interviewed PEs officials, the Public Procurement
Regulations did not specify the tenure of the appointment of the said
committees. However, according to directives given by the PPRA,
it is required that a procuring entity should have a newly appointed
committee whenever goods are procured since each type of goods is
likely to involve a different set of skills during inspection. According
to PPRA, these directives have been given to the PEs through trainings
as well as during the audits that PPRA conducts. Having permanent
committees without due consideration of skills relevant to the type of
goods procured would lead to ineffective inspections27.
Table 3.7 shows the composition of the inspection and acceptance
committee in the selected PEs with their respective qualifications with
a view to assess their suitability for inspecting of the delivered ICT
equipment. Further details on the qualifications of the teams are given
in Appendix 5.
Table 3.7: Composition of the appointed Inspection committee in
the sampled PEs
27 PPR(127b)GN 97
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 31
Years MOW MOIT MOHA MOHSW
2011/2012 Inspection team There was a Inspection The team was
varied based on team which committee appointed to
items being deliv- was ap- to serve for serve for 2
ered. On delivery pointed in 12 months. years. 2 out of
of ICT equipment, 2010/11. No ICT ex- 26 members
the team had at pert in the were ICT experts
least one ICT ex- team. in the commit-
pert. This was as tee.
per WB require-
ments.
Source: Files from the sampled PEs.
From table 3.7 it can be seen that, in some ministries committees have
been appointed to serve for a specific duration ranging from 1 to 3 years.
This is contrary to PPRA directives which require each delivery to be
handled independently including appointment of inspection committee.
Three out of four PEs have not been appointing new team each time of
delivery.
The above table also shows that some PEs didnt have ICT experts in
the inspection committees for inspecting ICT equipment. We found this
situation in the Ministry of Industry and Trade and Ministry of Home
Affairs. This is not a good practice because it may cause the PEs to
obtain equipment of poor quality.
32 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
CHAPTER FOUR
Review of documents indicated that PEs have plans for monitoring and
evaluating the entities performance in general, and they give little
attention to the performance of the procurement function.
Interviews with officials from the selected PEs indicated that PEs were
using Annual Performance Reports that they submit to PPRA as their self
assessment reports on their performance.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 33
Table 4.1: Issues covered in PEs annual performance reports
Review of documents from the four sampled PEs show the Procured
ICT equipments were not initiated by users .The situation found on
the ground was, that there was atendency of issuing the purchased ICT
equipment in bulk to individuals who were expected to redistribute the
said equipment to other staff. However, in all the sampled PEs audited,
there were no records that show the names of the real users of the
equipment that were supposed to be redistributed. The PEs, through the
PMUs, did not make follow ups to ensure that the equipment reached
the targeted employees. Table 4.2 shows some ICT equipment that
were issued in bulk to some individuals without verifying whether the
equipment reached the intended users. This led to poor management on
allocation of the ICT equipment issued to the staff.
34 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Table 4.2: ICT Equipment Issued to Individuals in Bulk
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 35
annual performance reports. A review of annual performance reports
did not cover the issue of the suppliers performance.
It was further noted that PEs had not been fully adhering to the terms
stipulated in the contracts when managing the supply contracts. Some
suppliers were late in delivering ordered goods but Clauses for liquidated
damages were not used as specified in the contracts (refer Table 4.3
and Appendix 6).
Table 4.3: Contracts that were delayed by suppliers
28 Accounting Officers of the Ministry of Industry and Trade and the Ministry of Health
and Social Welfare.
29 Poor quality of goods, late delivery, high prices than normal market prices(refer
appendix 11 and appendix 9)
36 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
CHAPTER FIVE
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 37
Due to absence of monitoring and evaluation on the performance of
the procurement system, the MoF has not been able to achieve the
following:
To ensure accountability because it cannot assess whether the
procurement is effectively, appropriately, and efficiently executed.
To watch the progress of the procurement system against time,
resources and performance schedules and to identify lagging areas
requiring timely attention and action.
To alert the government about its possible success and failures in
management of the procurement system.
38 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
5.1.5 Conducting studies and research on Public Procurement
PPD has neither planned nor conducted any study or research for the
improvements of the procurement system since its establishment in
2009.
Interviews with PPD officials and review of performance reports revealed
that, the Division could not accomplish some of their responsibilities
because of budgetary constraints. Other reasons mentioned were:
Their duties were not specified in the current procurement Act;
Understaffed;
PPRA has been doing these duties so there no clear segregation of
who should do what; and
No enough working tools to accomplish their duties, such as
insufficient motor vehicles, internet connection is poor, and the
office space does not meet their needs.
These reasons cannot be used as justification for not performing their
duties of monitoring procurement performance since:
The duties of the PPD are specified in the functions and organization
structure of MOF(2009 AND 2011) as well as in the responsibilities
of the head of the PPD;
If the PPD is understaffed they could think of alternative such
as outsourcing some of the functions while building their own
capacity;
Resources for carrying out Research and studies were supposed to
be included in their plans and budgets right from the beginning;
The amount budgeted for, could be used in the planned activity
instead of reallocating them; and
It is the responsibility of the Ministry of Finance to ensure
harmonization of various functions in the procurement system.
This includes avoidance of overlapping of responsibilities among
various organs dealing with procurement.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 39
5.2 Coordination between MoF and other stakeholders
The Ministry of Finance (MoF) through PPD has a major role in making sure
that there is adequate coordination among procurement stakeholders
in the country. Coordination is expected to assist PPD in identifying
challenges in the procurement system, critical areas in the system and
areas that need improvements, and creating ways for improving the
system.
However, the division has not conducted any procurement research,
forums with stakeholders like PPRA and GPSA geared at harmonizing
the roles played by various bodies. Based on interviews with officials in
procuring entities, the division is not known for its role to coordinate and
develop standards of procurement system to be implemented by public
bodies. It is rather known for the role in regulating and maintaining the
procurement cadre.
Lack of coordination among procurement stakeholders has prevented
sharing of ideas and creating opportunities for learning and improving.
40 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
CHAPTER SIX
CONCLUSIONS
The findings in the previous chapters made us draw various conclusions
based on procurement management in Tanzania.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 41
The Government Procurement Service Agency (GPSA), in trying to
control excessive price variations, had come up with a list of suppliers
and price ceiling for various common use items. However, some PEs
approached the same suppliers who are on the list prepared by GPSA for
new quotations without following the proposed price ceiling.
The government is incurring additional tender administrative costs
because the PEs duplicate the selection process instead of adhering to
the guidance regarding suppliers and approved price ceilings issued by
GPSA.
42 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
The PEs do not adhere to the contracts when supervising the delivery of
goods, clauses for liquidated damages are not applied for the delayed
delivery of goods.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 43
CHAPTER SEVEN
RECOMMENDATIONS
The audit findings and conclusions point out weaknesses in planning
and implementation of monitoring and evaluation of the procurement
system both by the PEs and the Oversight Bodies. Other weaknesses
were found on the establishment of needs, cost control and quality
control by procuring entities.
This chapter therefore, contains recommendations to the Ministry of
Finance (MoF), Ministry of Communication, Science and Technology
(MCST) and the Procuring Entities (PEs) regarding the weaknesses
pointed out in the previous three chapters.
Some of the recommendations regarding the actions of the procurement
entities have been directed to the MoF because of its pivotal role in the
management of public procurement. It is expected that the MoF will
act on most these recommendations through the Public Procurement
Policy Division (PPD), Government Procurement Services Agency (GPSA)
and PPRA. The Audit Office believes that these recommendations need
to be considered if the procurement of ICT equipment is to be better
managed ensuring that Value-for-Money is achieved in the use of public
resources.
44 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
The Ministry of Communication, Science, and Technology should:
5. Update the ICT policy and develop ICT Standards for use by the
PEs; and
6. Provide schedule of requirements and technical specifications for
various ICT equipments that will be used by all procuring entities
to achieve uniformity;
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 45
1. Prepare plans for monitoring the suppliers performance from
the contracting stage of the procurement process and during the
implementation phase and identify the resources needed for the
monitoring of the suppliers in place;
2. Adhere to the contract terms when supervising the delivery of
goods; and
3. Periodically prepare and submit reports to PPRA on the
performance of the suppliers in implementing the awarded
contracts. This information should be accessible to other PEs so
as to help them in identifying the suppliers who did not perform
well in their previous assignments and avoid engagements with
non-performing suppliers.
46 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
REFERENCE
1. AFROSAI-E Public Procurement Performance Audit Guideline.
2. Annual Performance Evaluation Report for Financial Year
2009/2010, PPRA.
3. Annual Performance Evaluation Report for Financial Year
2010/2011, PPRA.
4. Annual Performance Evaluation Report for Financial Year
2012/2012, PPRA.
5. Annual Report 2009/10; Ministry of Finance and Economic
Affairs.
6. Functions and organization Structure of the Ministry of Finance
and Economic Affairs, Presidents Office-Public Service
Management, June 2009.
7. Functions and organization Structure of the Ministry of Finance
and Economic Affairs (Approved by the President on 3rd June,
2011), Presidents Office-Public Service Management, June
2011.
8. GPSA Executive Agencies Act (CAP 245), Order 2012,
Government Notice No. 133, Published on 13/4/2012.
9. GPSA Medium Term Strategic Plan 2010/11 2012/13.
10. http://www.slideshare.net/srengasamy/project-monitoring-
evaluation-s-presentation, cited on 01/12/2012.
11. Letter with reference number AB.209/437/02 dated 9th
February, 2011.
12. Letter with reference number CGA. 74/218/01 dated 6th
June, 2011.
13. Ministry of Communication Science and Technology, Medium
Term Strategic Plan, 2009/10-2011/12.
14. Ministry of Finance Medium Term strategic plan 2009/10
2011/12.
15. Public Procurement Act, 2004.
16. Public Procurement Regulation, GN 97 of 2005.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 47
17. Report of the CAG for the fiscal year 2010/2011.
18. PPRA, Assessment of Country Procurement System.
19. PPRA presentation, Accountability Conference, 29th May,
2012.
20. Public Procurement Performance Audit Guideline under Needs
assessment, Page 7.
21. PPRA Medium Term Strategic Plan 2009/10 2013/14.
48 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
APPENDICES
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 49
Appendix 1: Audit questions and Sub-questions
This report provides results obtained from the following three audit
questions:
Audit questions 1: To what extent are needs assessment analysis,
cost, and quality control of ICT equipment are adequately done?
Sub-questions
1.1 Does the PEs adequately specify their requirements for ICT equipment?
1.2 Does the PEs adequately control major price and quantity variations on
the ICT equipment supplied?
1.3 Does the PEs adequately control quality of ICT equipment supplied?
Sub-questions
2.1 Are there mechanisms for regular monitoring and evaluation of the enti-
ties performance in relation to price, quality, delivery, agreed budget,
and other contract provisions?
2.2 Are there plans and actions to establish whether or not the suppliers
performance is satisfactory?
Audit Question 3: To what extent does the PPD monitor and evaluate
the performance of procuring entities
3.2 Has the PPD identified key issues related to performance of the PEs dur-
ing monitoring?
3.3 Does PPD coordinate with other stakeholders on issues related to pro-
curement?
50 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Appendix 2: Actual Usage of the Equipment
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 51
PE ICT Equipment Capacity Current Usage
52 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Appendix 3: Analysis of Capacity of Printers and Photocopies Available
in Procuring Entities
Ministry of Industry and Trade
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 53
Ministry of Health and Social Welfare
TOTAL 219,474,600
54 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Ministry of Water
Paper
Period of
Capacity Number Consuption
Type Qty Usage by
per Year of years up to June
Ministry
2012
HP PRINTER H/DUTY 6 1,440,000 2009/10 3 25,920,000
TYPE COLOR LJ-CP 4525
HP PRINTER LJ P2055N 22 600,000 2009/10 3 39,600,000
0
FSD PRINTER BROTHER 1 360,000 2009/10 3 1,080,000
HL 3040CN
0
HP COLOR PRINTER 1 1,200,000 2010/2011 2 2,400,000
CP4025
HP PRINTER H/DUTY 1 1,440,000 2011/2012 1 1,440,000
TYPE COLOR LJ-CP 4525
HP PRINTER LJ P2055N 1 600,000 2011/2012 1 600,000
PHOTOCOPY MACHINE- 1 675,000 2009/10 3 2,025,000
IMAGE CLASS D 1180
PHOTOCOPY MACHINE 1 742,500 2011/2012 2 1,485,000
CANON MF7460
H/DUTY PHOTOCOPIER 2 2,073,600 2010/2011 3 12,441,600
CANON IR 2018
86,991,600
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 55
Ministry of Home Affairs Photocopiers
Paper
Paper Consumption Financial Consump-
Type Qty
capacity Year tion up to
2011/2012
PHOTOCOPY MA- 2 1,800,000 COPIES 2011/2012 3,600,000
CHINE, KYOCERA PER MONTH
KM 4050
photocopier 1 1,512,000 COPIES 2011/2012 1,512,000
CANON, D 1350 PER YEAR
CANON PHOTO- 1 Copy, prints, and 2011/2012 864,000
COPIER IMAGE scans as well. It
RUNNER 2520 copies/ prints/scan
864,000 per year
CANON PHOTO- 2 Copy, prints, and 2011/2012 1,728,000
COPIER, Model: scans as well. It
iR 2020 copies/ prints/scan
864,000 per year
CANON PHOTO- 1 792,000 copies on 2011/2012 792,000
COPIER, Model: average per year
iR 2022
PHOTOCOPIER 1 480,000 papers per 2011/2012 480,000
SHARP AR-53200 year
PHOTOCOPY 1 1,800,000 COPIES 2011/2012 1,800,000
MACHINE, SHARP PER MONTH
- 5127, Multi-
function
PHOTOCOPY MA- 1 1,800,000 COPIES 2011/2012 1,800,000
CHINE, KYOCERA PER MONTH
KM 4050
TOTAL 12,576,000
56 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Printers
Paper
Average Paper Con- Financial Consump-
Type Quantiy
sumption Capacity Year tion up to
2011/2012
HP LaserJet 28 180,000 PAPER PRINT 2011/2012 5,040,000
P2015 CAPACITY PER YEAR
PRINTER, KYO- 2 630,000 PRINTS PER 2011/2012 1,260,000
CERA, FS 2020D YEAR
KODAK 140, 1 151,000 PRINTS PER 2011/2012 151,000
Small YEAR
HP, LASERJET 1 302,400 PRINTS PER 2011/2012 302,000
P1005 YEAR
PRINTER - KYO- 7 151,000 PRINTS PER 2011/2012 1,057,000
CERA, PS 1920 YEAR
HP LASERJET 3 302,400 PRINTS PER 2011/2012 907,200
1320 YEAR
BROTHER MFC 1 432,000 PRINTS/COPIES 2011/2012 432,000
7220, FAX, PER YEAR
PRINT, COPY
HP LASERJET - 2 Maximum yearly volume 2011/2012 1,200,000
P2055d is 600,000 pages.
PRINTER, HP 1 120,000 PAPER PRINTS 2011/2012 120,000
P2014 PER YEAR
PRINTER, Epson 2 324,000 PER YEAR 2011/2012 648,000
FS - 4000DN
TOTAL 11,117,200
Total paper consumption capacity for printers and photocopiers for MoHA for
3 years is 23,693,200.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 57
Paper Consumption in PEs
Combined Paper
Consumption Capac- % usage
Amount of
Procuring Entities ity of Printers and of Print-
paper used
photocopiers ma- ers
chines
Ministry of Health and
Social Welfare 219,474,600 2,297,500 1.40%
Industry Trade and Market-
ing 82,597,200 3,578,500 4.33%
Ministry of Home Affairs 23,693,200 1,334,750 5.63%
Ministry of Water 86,991,600 3,735,000 4.29%
58 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Appendix 4: Table for price comparison between GPSA and PEs for
the first half of 2012/2013
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 59
Appendix 5: Showing composition of Inspection and Acceptance
Committee and the qualifications based on ICT equipment
procured and delivered.
60 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Senior administrative officer 29/11/2012
Architect 29/11/2012
Nurses-2 29/11/2012
2Computer system analyst 29/11/2012
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 61
Appendix 6: Poor Performance of Suppliers
M/S Agumba Technologies signed a contract35 to supply computers and
other office equipment on October 2009 to deliver the goods twelve
weeks after the signing of the contract, Agumba did not deliver the
goods and PEs wrote a letter36 on 23rd February to remind them on the
issue, Agumba replied on the same issue with a letter reference number
AG/CONTRACT/VOL.V1/59/2010 stating that they wont be able to
deliver until April 2010. Auditors were not able to see the delivery note
to verify the delivery of the said equipment.
The same supplier was contracted by Ministry of Industry and trade
on 14 April 2010 to procure ICT equipment. This shows that there was
inadequate evaluation and screening of suppliers by PE. PEs have not
been adequately evaluating the previous performance of Suppliers with
references from other PEs.
62 A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
Appendix 7: PPD Planned Activities Against Implementations
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
A m o u n t
spent was Tsh
3,570,853,000
/=
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
63
64
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
The amount spent
to date was e Tsh
228,377,484/=
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 64
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
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65
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 65
66
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
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A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 66
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
67
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 67
68
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
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A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 68
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
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69
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 69
70
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
mance for nor planned
of public in the ministerial
procure- plans
m e n t
institu-
tions.
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 70
RESPON- Planned activity Actual imple- Planned activity Actual imple- Planned Actual imple- Result to date
SIBITIES and Budgeted mentation and Budgeted mentation activity and mentation and
and budget and budget Budgeted budget
A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA
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A REPORT OF THE CONTROLLER AND AUDITOR GENERAL OF THE UNITED REPUBLIC OF TANZANIA 71
Controler & Auditor General