Ministry of Trade, Industry and Cooperatives officials have failed to account for Shs5.5 billion in government contracts that were reportedly processed outside the Electronic Government Procurement system, e-GP.
The officials appeared before Parliament’s Public Accounts Committee (Central Government) to respond to queries raised in the Auditor General’s report on government procurement.
The committee heard that the ministry awarded contracts to different entities without using the official e-GP platform, raising questions about how the procurements were handled and how public funds were accounted for.
The e-GP system is the government’s online procurement platform through which public entities are expected to manage procurement processes. The system is designed to improve transparency, accountability, competition and value for money in government procurement.
During the meeting, MPs questioned the ministry officials about why they had bypassed the system.
“Why did you bypass the e-GP system?” Grace Wanzala asked the officials.
Permanent Secretary Lynette B. Bagonza attributed the problem to interruptions to the ministry’s computer servers during renovation works at its premises.
“Our servers were often interrupted by the renovations, forcing us to bypass them,” Bagonza told the committee.
Her explanation, however, did not convince the MPs, who questioned why the ministry could not find an alternative way of maintaining access to the government procurement system while the renovation works were taking place.
Patrick Oshabe Nsamba, the committee chairperson, and other MPs questioned how renovation works could have forced an entire government ministry to abandon the electronic procurement platform.
“You mean you could not shift the server to a more secure place or use other means to reach e-GP?” Nsamba asked.
The MPs said the explanation raised further questions about the ministry’s procurement controls, particularly given the amount of money involved.
The committee sought documents showing how the Shs5.5 billion in contracts was procured, approved and implemented.
The officials were directed to provide supporting documents to account for the money and explain the circumstances under which the contracts were processed outside the e-GP system.
The committee also referred the ministry’s procurement officer to police for further questioning as MPs sought more information about the transactions.
