PPADB fails to meet deferrals target
Boitshepo Majube | Friday January 31, 2014 17:27
PPADB fails to
meet deferrals targetBOITSHEPO MAJUBE
Correspondent
I
n it 2013 annual report, the Public Procurement and Asset Disposal Board (PPADB) states that deferrals increased from 27-29%, while rejections remained constant at 16% when compared to the previous year.
The report states that the decline in the percentage of approvals and the increase in the deferral rate is a drawback in the board's objective of achieving a 70% approval and 20% deferral rate.
The PPADB board said they received 630 submissions, out of which 495 required adjudication while the rest were for noting only. The board approved 271 (55%) submissions, deferred decisions on 144 (29%) and rejected 80 (16%) of the requests. 'This represents a decrease in the approval rate from 57% during the previous financial year to 55% in the current year. The constant rejection rate indicates that the board is not making inroads in achieving a rejection rate of 10%,' the PPADB stated. It notes that a significant number of the rejections were retroactive requests, which could not be accommodated under the law.
The report says there is need for the board to do more in improving the effectiveness of its capacity building initiatives to enable procuring entities to submit evaluation reports, formulate suitable specifications and increase the approval rate while reducing deferrals and the rejection rates.
'For this to bear fruit, the procuring entities should speed up the strengthening of procurement units where procurement capabilities of ministries will reside,' the report said.
During the 2012-2013 financial year, the board committees adjudicated 9,546 submissions while the board handled 495. 'Of the 9,546 submissions, the Ministerial Tender Committees (MTC) adjudicated on 7,392 submissions while District Administration Tender Committees (DATC) adjudicated on 2,154 submissions. This shows that a large number of submissions are handled at board committee level,' PPADB said.
It points out that in total, the board and its committees adjudicated 10,041 submissions. Out of these, 74% were handled by MTCs, 21% by DATCs, while the board handled 5 percent.
'A large number of procurement falls below the P25 million threshold. Even though the board handled a smaller number of submissions, the value of procurement it handled is much higher than that handled by the MTCs and DATCs,' the report said.
The value of procurement approved by the board amounted to approximately P4.7 billion, while tenders approved at MTC level amounted to approximately P2.3 billion. DATCs and SPADC handled procurement of approximately P219 million and P387 million respectively.
'The total value of procurement of the 2012-2013 financial year amounted to approximately P7.6 billion against a developmental budget of P10.06 billion which is about 76% of the developmental budget. The P10.06 billion excludes supplementary budgets during the period under review,' it says.
The Ministry of Minerals, Energy and Water Resources had the highest value of awarded tenders at approximately P1.8 billion followed by the Ministry of Transport and Communication at P1.6 billion. The Ministry of Finance and Development Planning had the least value of awarded tenders, which stood at P1.2 billion as a result of scope of change.
The report stated that PPADB board did not receive requests to award tenders from five ministries, namely Environment Wildlife and Tourism; Lands and Housing; Trade and Industry; Foreign Affairs; and Youth Sports and Culture. 'This implies that during the period under review, these ministries did not have projects that exceeded the threshold of their ministerial tender committees (P25 million),' the report said.
It said there were tenders awarded by accounting officers in ministries under micro-procurement threshold (less that P30,000). 'Expenditure done through micro-procurement threshold during 2012/13 financial year amounted to P102 million.
The ministry with the highest value of micro-procurement transactions was the Ministry of Labour and Home Affairs at P155 million and the lowest was the ministry of the State President at P1.2 million,' PPADB said. It added that there is need to clearly monitor micro-procurement transactions to prevent abuse and unnecessary splitting of purchases.
A total of 69 complaints and 88 queries relating to adjudication and award of tenders were recorded during the 2012-2013 financial year.
'All the complaints were resolved within the target turnaround time of two weeks. One complaint was escalated to the independent complaints review committee,' PPADB said. It stated that some of the complainants did not follow the administrative dispute resolution process but chose to go directly to the High Court.
The report states that the decline in the percentage of approvals and the increase in the deferral rate is a drawback in the board's objective of achieving a 70% approval and 20% deferral rate.The PPADB board said they received 630 submissions, out of which 495 required adjudication while the rest were for noting only.
The board approved 271 (55%) submissions, deferred decisions on 144 (29%) and rejected 80 (16%) of the requests. 'This represents a decrease in the approval rate from 57% during the previous financial year to 55% in the current year. The constant rejection rate indicates that the board is not making inroads in achieving a rejection rate of 10%,' the PPADB stated. It notes that a significant number of the rejections were retroactive requests, which could not be accommodated under the law. The report says there is need for the board to do more in improving the effectiveness of its capacity building initiatives to enable procuring entities to submit evaluation reports, formulate suitable specifications and increase the approval rate while reducing deferrals and the rejection rates. 'For this to bear fruit, the procuring entities should speed up the strengthening of procurement units where procurement capabilities of ministries will reside,' the report said. During the 2012-2013 financial year, the board committees adjudicated 9,546 submissions while the board handled 495. 'Of the 9,546 submissions, the Ministerial Tender Committees (MTC) adjudicated on 7,392 submissions while District Administration Tender Committees (DATC) adjudicated on 2,154 submissions. This shows that a large number of submissions are handled at board committee level,' PPADB said. It points out that in total, the board and its committees adjudicated 10,041 submissions. Out of these, 74% were handled by MTCs, 21% by DATCs, while the board handled 5 percent.
'A large number of procurement falls below the P25 million threshold. Even though the board handled a smaller number of submissions, the value of procurement it handled is much higher than that handled by the MTCs and DATCs,' the report said. The value of procurement approved by the board amounted to approximately P4.7 billion, while tenders approved at MTC level amounted to approximately P2.3 billion. DATCs and SPADC handled procurement of approximately P219 million and P387 million respectively. 'The total value of procurement of the 2012-2013 financial year amounted to approximately P7.6 billion against a developmental budget of P10.06 billion which is about 76% of the developmental budget. The P10.06 billion excludes supplementary budgets during the period under review,' it says. The Ministry of Minerals, Energy and Water Resources had the highest value of awarded tenders at approximately P1.8 billion followed by the Ministry of Transport and Communication at P1.6 billion. The Ministry of Finance and Development Planning had the least value of awarded tenders, which stood at P1.2 billion as a result of scope of change.
The report stated that PPADB board did not receive requests to award tenders from five ministries, namely Environment Wildlife and Tourism; Lands and Housing; Trade and Industry; Foreign Affairs; and Youth Sports and Culture. 'This implies that during the period under review, these ministries did not have projects that exceeded the threshold of their ministerial tender committees (P25 million),' the report said. It said there were tenders awarded by accounting officers in ministries under micro-procurement threshold (less that P30,000). 'Expenditure done through micro-procurement threshold during 2012/13 financial year amounted to P102 million. The ministry with the highest value of micro-procurement transactions was the Ministry of Labour and Home Affairs at P155 million and the lowest was the ministry of the State President at P1.2 million,' PPADB said. It added that there is need to clearly monitor micro-procurement transactions to prevent abuse and unnecessary splitting of purchases. A total of 69 complaints and 88 queries relating to adjudication and award of tenders were recorded during the 2012-2013 financial year.
'All the complaints were resolved within the target turnaround time of two weeks. One complaint was escalated to the independent complaints review committee,' PPADB said. It stated that some of the complainants did not follow the administrative dispute resolution process but chose to go directly to the High Court.