Gov’t entities frustrate PPADB

Pauline Dikuelo | Monday January 30, 2023 06:00

In the news: The Boatle bridge embankment collapsed after rains last year. Public procuring entities are generally sloth to submit “End of Activity Reports” and have a poor track record of monitoring contractors PIC: PHATSIMO KAPENG

The two issues have perennially come up each time the PPADB reports on the state of public procurement and continue despite the Board’s remonstrations.

In the latest update, PPADB acting executive chair, Tumelo Motsumi said submissions of end of activity reports by procuring entities remained a challenge, explaining that this hampered the performance monitoring of contractors in the implementation of government projects.

“Procuring entities do not complete end of activity reports on time except when they seek to justify extension of running contracts,” she said in a commentary accompanying the PPADB’s 2021/22 annual report.

“The extensions of running contracts reflect a failure in implementing new contracts. “PPADB continues to pursue entities to adhere to the PPAD Act.” Further she said the delays in sourcing tender documents from procuring entities continued unabated to the detriment of effective and efficient complaint resolution. Procuring entities also delayed the commencement of contractors.

Meanwhile, the trend of retroactive requests for approval continued, with the PPADB receiving requests worth P126 million in the 2021-22 financial year, compared to P13.8 million in the prior year. Retroactive requests occur when procuring entities enter into contracts with suppliers of goods or services without first securing approval from the PPADB, ministerial, district or other tender committees. The procuring entities receive the service or goods and subsequently seek retroactive approval in order to settle outstanding invoices.

The trend is usually due to an urgent need for services or goods, as well as administrative lapses. According to the PPADB, 24 such requests were received in 2021-22, with only two approved, while one was for noting, which means the PPADB was not required to make a decision. The Ministry of Finance had the highest number of retroactive requests with nine out of the 21. “As previously reported, the PPADB encourages procuring entities to consistently plan and initiate their procurement on time and to follow procurement procedures to reduce the number of retroactive requests,” the Board said. Retroactive proposals that are approved are usually those where procurement is intended to save lives or protect the environment.

However, many times, entities seek retroactive approval of services such as hiring out facilities for the holding of conferences.