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REPORT OF PROCUREMENT AUDITS FOR EIGHTY PROCURING ENTITIES [The reported procurement audits findings are based on documents which were made available for the sampled tenders and therefore do not represent the entire assessment of all the procurements in a particular entity] September, 2015

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Page 1: REPORT OF PROCUREMENT AUDITS FOR EIGHTY PROCURING ENTITIESppra.go.tz/phocadownload/attachments/AuditReports/ar2014_2015.pdf · REPORT OF PROCUREMENT AUDITS FOR EIGHTY PROCURING ENTITIES

REPORT OF PROCUREMENT AUDITS FOR EIGHTY PROCURING ENTITIES

[The reported procurement audits findings are based on documents which were made available for the sampled tenders and therefore do not represent the entire assessment of all the procurements in a particular entity]

September, 2015

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TABLE OF CONTENTS 

 

LIST OF ACRONYMS / ABBREVIATIONS ............................ ii 

EXECUTIVE SUMMARY ........................................................... iv 

Background .................................................................................. iv 

Compliance Audit Findings ........................................................v 

Value for Money Audit Findings .............................................. ix 

Payment Delays .......................................................................... xii 

Verification of VfM Audit findings in FY 2013/2014 ............. xiii 

Recommendations ..................................................................... xiv 

1.0  Introduction ........................................................................ 1 1.1  Background ............................................................................................................................. 1 

1.2  Selection of the Procuring Entities to be audited ............................................................ 1 

1.3  Sampling of procurements ................................................................................................... 2 

1.4  Methodology ........................................................................................................................... 2 

1.5  Fraud and Corruption Aspects ............................................................................................ 3 

2.0  Audit findings for Compliance Audits ............................ 5 2.1  Volume of audited procurements ....................................................................................... 5 

2.2  Overall Level of Compliance ............................................................................................... 5 

2.3  Performance analysis............................................................................................................. 8 

2.4  Management of Contracts for Revenue Collections in LGAs ..................................... 17 

2.5  PEs with poor performance ................................................................................................ 18 

3.0  Value for Money audit findings ..................................... 20 

5.0  Conclusion ........................................................................ 52 

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LIST OF ACRONYMS / ABBREVIATIONS

AO Accounting Officer

APP Annual Procurement Plan

BBA Budget Approving Authority

BDS Bid Data Sheet

BOQs Bill of Quantities

CC Conditions of Contract

CEO Chief Executive Officer

CPSP Certified Procurement and Supplies Professional

CRB Contractors Registration Board

CSP Certified Supplies Professional

CQ Competitive Quotations

DC District Council

DE District Engineer

DED District Executive Director

EC Evaluation Committee

FWA Framework Agreements

FY Financial Year

GPSA Government Procurement Services Agency

GN Government Notice

GPN General Procurement Notice

IAU Internal Audit Unit

ICB International Competitive Bidding

IPCs Interim Payment Certificates

ITB Instruction to Bidders

ITT Instruction to Tenderers

LGA Local Government Authorities

LGR Local Government Regulations

LPO Local Purchase Order

MBA Masters in Business Administration

MDAs Ministries, Independent Departments, Authorities/ Agencies

MoF Ministry of Finance

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MTB Ministerial Tender Board

NCB National Competitive Bidding

NS National Shopping

PAs Public Authorities

PCCB Prevention and Combating of Corruption Bureau

PE Procuring Entity

PFMRP Public Finance Management Reform Programme

PMIS Procurèrent Management Information System

PMU Procurèrent Management Unit

PMO-RALG Prime Minister’s Office, Regional Administration and Local

Government

PPA Public Procurement Act

PPRA Public Procurement Regulatory Authority

PPR Public Procurement Regulations

PSPTB Procurement and Supplies Professional and Technician Board

RAS Regional Administrative Secretariat

RT Restricted Tendering

SBD Standard Bidding Documents

SCC Special Conditions of Contract

SCM System for Checking and Monitoring

SPN Specific Procurement Notice

SSS Single Source Selection

TB Tender Board

TOR Term of Reference

UDs User Departments

VAT Value Added Tax

VFM Value for Money

VOs Variation Orders

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EXECUTIVE SUMMARY

Background

1. In view of its mandate under Section 9(1)(i) of the Public Procurement Act, 2011, (PPA 2011), the Public Procurement Regulatory Authority (PPRA) through financing from Public Finance Management Reform Programme (PFMRP), carried out procurement audits and verification audits in eighty (80) procuring entities (PEs). The audits were carried out between April and September, 2015 and they were divided in three categories namely: Procurement audits only (45 PEs); procurement audits and performance audits only (18 PEs), both, procurement audits & verification audits (15 PEs); and verification audits only (2 PEs). The audited PEs included nineteen (19) MDAs, thirty nine (39) LGAs and twenty two (22) PAs.

2. The objective of the audits was to determine whether the procedures,

processes and documentation for procurement and contracting were in accordance with the provisions of PPA, Procurement Regulations and the standard documents issued by PPRA. In addition, the audits sought to determine whether contracts had been or were being implemented in accordance with stipulated contract terms and conditions and whether value for money was achieved in spending public funds on selected construction contracts.

3. The total number of audited procurement contracts was 5,206 (including 2,671 minor value procurement and call off orders contracts) with a total value of Tshs 214,631,105,717.40. The audit covered 345 contracts for works with a value of Tshs 119,618,771,178.00 equivalent to 56% of the total value of audited procurement contracts, 1,112 contracts for goods with a total value of Tshs 35,112,376,975.00 equivalent to 16%, 34 contracts for consultancy services with a total value of Tshs 5,633,300,299.00 equivalent to 3%, 1,041 contracts for non-consultancy services with total value of Tshs 18,043,752,042.00 equivalent to 8%, 2671 minor value procurements (goods and non – consultancy services) amounting to Tshs 29,679,648,447.00 equivalent to 14% and 3 force account procurements amounting to Tshs 6,543,256,776.40 equivalent to 3%.

4. Out of 80 audited PEs for compliance audit, 35 procuring entities were selected for value for money audit. A total of 186 construction projects were audited with a total value of Tsh. 2,916,425,669,755.29. The audited projects included buildings, roads, bridges, railway repair, goods and consultancy contracts.

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Number, categories and value of audited projects

S/n Category Number of

audited projects

Value (Tsh.) Percentage

Number Value 1 Building 68 2,697,975,007,835.66 36.6% 92.5% 2 Road 92 23,767,003,387.63 49.5% 0.81% 3 Bridge 5 1,085,784,340.00 2.7% 0.04% 4 Railway repair 1 590,927,000.00 0.5% 0.02% 5 Goods 13 192,479,492,892.00 7.0% 6.60% 6 Consultancy 7 527,454,300.00 3.8% 0.02%

Total 186 2,916,425,669,755.29 100.0% 100.0%

Out of 186 audited contracts, the number of audited contracts in LGAs were 141

with a total value of Tsh. 33,138,552,511.37 (76% by number) while the number of audited contracts in MDAs were 19 with a total value of Tsh. 24,016,183,743.02 (10%) while in PAs, 26 contracts were audited with a total value of Tsh. 2,859,270,933,500.90 (14%). As was the case for last year audits, much emphasis was put in Local Government authorities due to various observed weaknesses in LGAs especially during projects planning and designing, and contract management.

Compliance Audit Findings

5. On the basis of the seven compliance indicators, the outcome of the audits

indicated an average level of compliance of 69.0% indicating a significant increase above the last year’s average compliance level of 65%. However, the recorded compliance level is below the targeted compliance level of 75% which was set for the FY 2014/15. The analysis of the audit results has shown that while 27 out of 80 PEs were assessed to have satisfactory compliance levels above the target of 75%, 53 PEs were assessed to have unsatisfactory performance below the targeted level of compliance.

While the overall compliance level of the audited PEs has increased, the

average compliance level for MDAs have dropped from 71% to 69% when compared to last year’s audit results. Public Authorities and Local Government Authorities on the other hand have shown improvements from 68% and 62% recorded last year to 71% and 67% respectively.

6. The average compliance levels for the seven performance areas were as

follows: Appropriateness and performance of the institutional setup (77%); Appropriateness of the preparation and implementation of procurement plans (75%); Appropriateness of the tender process (77%); Appropriateness of contract management (70%); Management of procurement records (67%); Implementation of systems prepared by PPRA (35%), and; Mishandling of complaints in procurement process (-3%).

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7. On the assessment of the individual performance areas, the performance is above the targeted level of compliance on three performance areas namely: institutional setup and performance; tender processing; and preparation and implementation of procurement plans. However, the performance is below the targeted level of compliance on: contracts management and implementation; management of procurement records; and implementation of systems prepared by PPRA. The audit results indicate overall shift towards compliance when compared to last year’s performance.

8. The analysis of the audit results on institutional set up has indicated satisfactory level of compliance on establishment of tender boards and, existence of internal audit units where the compliance was 94% and 96% respectively. However, the compliance is below the targeted level of compliance of 75% on indicators for notifying the Authority about the membership of tender board (70%), training on PPA and PPR for tender board members (46%), PMU staff (61%), and IAU staff (52%), establishment of PMUs (72%), and establishment of sub-vote and allocation of adequate funds for PMU operations (70%).

On the compliance of organs to their stipulated powers and responsibilities,

the assessment has indicated that the procurement organs, AOs, BAA and UDs performed their obligations adequately as stipulated in the PPA with performance scores of 86%, 89% and 82% respectively. Despite the fact that tender board members, PMU staff and Internal Audit staff were not all trained in PPA and PPR, assessment of performance of their responsibilities indicated that they performed their obligations adequately as stipulated in the PPA with performance scores of 79%, 77% and 79% respectively.

9. The analysis on the preparation of annual procurement plans indicated an

average level of compliance of 75% signifying that the majority of the audited procuring entities prepared properly their procurement plans by using appropriate templates, complying with the Authority’s guidelines for tender numbering, allocating properly tender processing times as provided in the regulations, and aggregating requirements properly. The majority of the prepared procurement plans were also approved by relevant authorities as required. However, as for the previous year, the compliance level was below the target on the indicators for planning of TB meetings with a score of 70%, advertisement of General Procurement Notices where only 63% of the audited PEs complied with the requirement, adherence to the timeframe in the procurement plans where 69% of the audited PEs complied, and efficiency in implementing the plan with a score of 73%.

10. The average level of compliance on the procurement process for the 80

audited PEs was 77% which is above the targeted level of compliance of 75% signifying that the majority of the audited PEs complied with the provisions in the PPA and PPR regarding tender processing. The audit results show that, out of the thirty two sub-indicators used to assess the tender process, only six scored less than the targeted compliance level. The six indicators with low

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compliance levels are: submission of tender advertisement to PPRA (57%); appropriate contract negotiations (65%); notice of intention to award contracts issued to bidders to give them room to submit complaints (if any) (72%); publication of contract awards in the tender portal and TPJ (42%); notifying unsuccessful bidders on awarded contracts (68%), and; the use of procedural forms issued by PPRA (59%). The remaining indicators performed relatively well.

Notable weaknesses in the tender process included the following: 15% of the reviewed tenders were advertised without tender boards’ approval; 21% of the reviewed quotations were issued to bidders without tender boards’ approval of the shortlist; 12% of the reviewed tenders were evaluated using criteria not stipulated in the tender documents; 35% of the reviewed contracts were negotiated without following appropriate procedures stipulated in the PPR; notice of intention to award contracts were not issued in 28% of the reviewed tenders; 22% of the reviewed contracts were awarded beyond the bid validity period; 58% of the reviewed tenders were not published in TPJ and tender portal; procedural forms issued by PPRA were not used in 41% of the reviewed tenders.

11. The audit results indicated a compliance level of 70% on contracts

management and implementation. As observed in the previous year, the audits revealed the following weaknesses: weak management of performance securities, advance payment securities, and insurance covers which was observed in 33% of the reviewed contracts; untimely issuance of instructions to contractors observed in 31% of the reviewed contracts; negligence of enforcing remedies for delays stipulated in the contracts which was observed in 33% of the reviewed contracts; extending contracts duration without justification and without following appropriate procedures which was observed in 27% of the reviewed contracts; issuing variations without justifications; weak quality controls and quality assurance observed in 58% of the reviewed contracts; delayed payments to service providers observed in 37% of the reviewed contracts; making payments to service providers without following procedures for inspections and measurements observed in 17% of the reviewed contracts, and; weak management of contracts close out observed in 31% of the reviewed contracts.

12. The overall average compliance for the indicator on management of procurement records was 67% far below the targeted level of compliance. The observed weaknesses under this indicator affected the efficiency and completeness of the audit exercise. The analysis of the audit results revealed that 38% of the reviewed tenders had incomplete procurement records and 42% of the procurement records were scattered in various departments. In addition, 25% of the PMUs in the audited PEs had inadequate storage facilities and 23% of the PMUs in the audited PEs had inadequate space for keeping procurement records.

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13. As observed in the previous years, the majority of the procuring entities are still not complying with the requirement for submitting procurement information through the systems developed by PPRA .The analysis of the audit results indicated an overall compliance of 35% meaning that the majority of the audited procuring entities are still not complying with the requirement for submitting procurement information through the systems developed by PPRA. 25% of the audited PEs did not comply with the requirement for submission of APP to PPRA, procurement processing reports of 89% of the audited tenders were not submitted, 81% of the audited PEs did not comply with the requirement for submission of contract completion reports; 73%, 69% and 56% of the audited PEs did not submit monthly procurement reports, quarterly procurement reports and annual procurement reports respectively. The reasons cited for low compliance included inadequate staff within PMUs, lack of internet facilities, lack of computers, and lack of adequate knowledge in implementing the systems.

14. PEs were also assessed whether they had handled properly and timely complaints submitted by bidders in accordance to the provisions in the PPA and Regulations. Depending on the number of mishandled cases, PEs were penalized to the maximum of ten points. The analysis of the audit results indicated that out of the 80 audited procuring entities only five mismanaged the procurement complaints submitted by bidders.

15. Two hundred and sixty four (264) contracts for revenue collections were

audited in twenty (20) LGAs. According to the reviewed contracts, out of the Tshs. 6,289,003,214.20 which was to be collected and remitted to the councils by the contracted collectors, a total amount of Tshs. 5,028,514,073.76 equivalents to 80% of the total expected revenue was remitted to the audited councils. The Audit results show that there is remarkable improvement in managing the contracts resulting to good collection of expected revenues compared to last year performance whereby only 67% of the total expected revenue was remitted to the audited councils. However, a total of Tshs. 1,260,969,140.44 equivalent to 20% was not remitted by the contracted collectors. Most of the audited councils did not take any measures which were stipulated in the contracts with the collectors.

16. The analysis of the audit results indicated that seventeen (17) procuring

entities had poor performance in complying with PPA and PPR. Although they were previously audited and provided with recommendations to assist them in complying with the procurement law, the audit results show that the recommendations provided were ignored.

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Value for Money Audit Findings 17. Projects selected for value for money (VfM) audits were assessed based on

five established VfM performance criteria weighted as follows: Planning, design, and tender documentation (20%), Procurement Process (10%), Works supervision and contract administration (20%), Quality and quantity of executed works (40%) and Project closure and completion (10%).

The overall performance for all audited projects was assessed to be 64.5%

signifying that by average projects audited had fair performance but with significant weaknesses which if not properly addressed some of the intended project objectives will not be achieved and value for money is unlikely to be realized. The performance results for each indicator were as follows: Planning, Design, and Tender documentation scored 74.2% rated as fair performance; Procurement Process scored 79.7% rated as satisfactory performance; Works Supervision and Contract Administration scored 59.6% rated as fair performance; Quality and quantity of executed works scored 76.3% rated as satisfactory performance and Project Completion and Closure scored 53.1% rated as fair performance.

18. The assessment of value for money audits results in terms of performance of

entities indicates that four (4) out of 35 audited PEs equivalent to 11.4% were assessed to have poor performance (below 50%). The PEs were Kigoma District Council, Kibondo District Council, Iramba District council and Muleba District Council. Twenty three (23) PEs equivalent to 65.7% were assessed to have fair performance while eight (8) PEs equivalents to 22.9% were assessed to have satisfactory performance.

19. Out of 186 audited projects, 55 projects equivalent to 30% of the audited

projects with a total value of Tsh. 81,269,985,478.02 had satisfactory performance above 75% which implies that the intended projects objectives had been achieved or are likely to be achieved and value for money had been realized or will be realized for the public funds spent. For ongoing projects procuring entities were directed to address the weakness observed to ensure the project achieve its entire project objectives. For completed projects PEs were directed to consider the weaknesses observed as lessons learnt and put in place strategies to address the weakness observed for future improvement of the procurement process.

20. Out of 186 projects, ninety six (96) projects equivalent to 52 % of audited

projects with a total value of Tsh. 2,776,861,438,428.58 were assessed to have fair performance between 50% to 75%. In these projects significant weaknesses were observed and if not properly addressed the intended project objectives are unlikely to be obtained and value for money for the public funds spent is unlikely to be obtained. Procuring entities in this category are

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required to prepare a comprehensive risk management plan on how to address the weaknesses observed and ensure effective implementation of the plan in order to achieve the projects objectives.

21. Thirty five (35) out of 186 audited projects equivalent to 19% with a total value of Tsh. 58,294,245,848.69 were assessed to have unsatisfactory performance (below 50%) suggesting that most of the projects objectives are unlikely to be achieved and Value for Money is unlikely to be achieved or have not been achieved. In this category, urgent and significant management action is /was required to address the observed weaknesses to minimize its effects. The projects with poor performance included 14 roads projects (equivalent to 15% of all audited road projects) with a value of Tshs. 5,834,734,832.00, 14 building works projects (equivalent to 21% of all audited building projects with a total value of Tsh. 31,853,475,124.69, 4 goods contracts (equivalent to 31% of all audited goods contracts) with a value of Tsh. 19,527,128,892.00, One (1) bridge works project (equivalent to 20% of all audited bridge projects) with a value of Tsh. 250,340,000.00, One (1) consultancy contract (equivalent to 14% of all audited consultancy contracts) with a value of Tsh. 237,640,000.00, One railway repair project(equivalent to 100% of the audited rail projects) with a value of Tsh. 590,927,000.00.

22. The overall score for Planning, Design, and Tender documentation was

assessed to be 74.2% signifying fair performance for projects audited. Under this aspect, MDAs performed satisfactorily at 79.5%, while LGAs and PAs performed fairly at 73.8% and 72.7% respectively. Twelve (12) projects equivalent to 38.8% of all audited projects were assessed to have unsatisfactory performance. The major observed weaknesses under the indicator for planning, design and documentation were: over estimation of the quantities in the Bill of quantities that impacted to overpayments; lack of project designs and drawings; lack of or incomplete project specifications, lack or unrealistic engineer’s costs estimates; lack of quality assurance plans, partial and incomplete drawings, commencing procurement process with no funds committed for such procurement.

23. The overall score for procurement process was assessed at 79.7% signifying

that the projects were satisfactorily performed. In this indicator, MDAs, LGAs, and PAs performed satisfactorily at 91.3%, 78.1% and 79% respectively. Ten (10) projects equivalent to 23.4% of all audited projects were assessed to have unsatisfactory performance (below 50) in the procurement process. Major observed weaknesses on procurement included: inappropriate evaluation of tenders; failure by the evaluation committees to seek confirmation from bidders on correction of arithmetical errors; non publication of contracts awards information; failure by PEs to submit to the

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Authority contracts award information for publication in the Tanzania Procurement Journal and the PPRA Website, the quality and completeness of tender evaluation reports including the format was poor and inappropriate and was contrary to the standard Evaluation Reporting procedures; lack of evidence of vetting of contracts by the Attorney General, award of contracts beyond the bid validity period; and incomplete contract documents.

24. The overall score for works supervision and contract administration was assessed at 59.6% signifying that the projects were fairly performed but with significant weaknesses if not properly addressed especially for ongoing projects value for money is unlikely to be realized. In this aspect, MDAs performed satisfactorily at 76.1% while LGAs and PAs performed fairly at 57.4% and 59% respectively. Major weaknesses observed during construction stage were: failure by procuring entities to appoint project managers to manage works contracts, sites handing over to contractors not done on time, failure to prepare project progress reports, site management meeting were not held as required and where held records were not properly prepared and documented, payment certificates were not attached with measurement sheets to evidence actual quantity of works done, failure to impose liquidated damages where there was delay in contract implementation. Despite of the existence of quality control plans, no quality assurance plans was observed, extension of contract was done after expiration of contract duration, entering into contracts with contractors without submission of performance securities, improper handling of variations and in some cases variations executed without tender boards’ approval, poor supervision for the executed projects, overpayments for non existing works or shoddy works or in some cases due to an overstated quantities in the bill of quantities, failure to prepare the project snag list or site handover minutes and delay in paying contractors their contractual claims.

25. The overall score on quality and quantity of executed works was assessed to

be satisfactory at 76.3%. MDAs and LGAs performed satisfactorily at 83.1% and 79.1% respectively while PAs performed fairly at 64.7%. Out of 186 projects, thirty five (35) projects with a total value of Tsh. 58,294,245,848.69 were assessed to have poor performance (below 50%). Major weaknesses observed under this indicator included: lack of project designs and drawings; lack of or incomplete project specifications, partial and incomplete drawings, quality assurance plans were not prepared, poor supervision for the executed projects, poor workmanship of executed works, Lack of quality control tests on the executed works (gravel and concrete works) and use of inappropriate materials such as volcanic ash as building sand in the construction works for

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permanent structures, overpayments for non existing works or shoddy works or in some cases due to an overstated quantities in the bill of quantities.

26. The overall score on project completion and closure was assessed to be fair at 53.1%. MDAs, LGAs and PAs were assessed to have fair performance at 66.1%, 51.3% and 52% respectively. Out of 186 audited projects, the execution of 68 projects was competed while the remaining projects were ongoing. Out of 68 completed projects, 23 projects with a total value of Tsh. 50,278,203,454.50 were assessed to have poor performance (below 50%). Major observed weakness under the indicator on project completion and closure were: delay in project completion, failure by project managers to prepare snag list for completed projects, failure to carry out final inspection for completed worked, As built drawings were not prepared as per contract requirements, final inspection of works was not carried out, site handover or snag list were not prepared., the project completion report were not prepared to indicate practical completion and snag list.

27. During the Financial Year 2014/2015, audits carried out revealed that there was overpayment done by nine (9) procuring entities where the value of audited contracts with overpayment was Tsh. 6,360,006,701.00. The audits revealed that a total of Tsh. 951,713,833.07 were overpaid to contractors for non existing works and/or shoddy works. The amount paid as overpayment was equivalent to 15% of the total value of audited works contracts with overpayments. Names of PEs with amount of overpayments in brackets are: Kigoma DC (Tsh. 11,100,780.00), Kibondo DC (Tsh. 64,915,640.00), Mwanza City Council (Tsh. 69,606,500.00), Misungwi DC (Tsh. 55,603,100.00), Tarime DC (Tsh. 25,420,500.00), TANAPA (Tsh. 156,304,000.00), Tanzania Railway Authority (Tsh. 473,588,243.07), Rungwe DC (Tsh. 93,096,370.00), Kyela DC (Tsh. 2,078,700.00).

Payment Delays

28. In the course of procurement audits, the auditors observed serious delays on contractors’ payments. Notable delays were observed in road works contracts under TANROADs and water projects under Local Government Authorities. Delayed payments were mainly due to delays or non disbursement of committed funds from Treasury.

The Authority requested from TANROADS information on projects with outstanding payments. After analyzing the submitted information, it was observed that a total of 301 contracts (124 contracts at TANROADS HQ and 177 contracts at TANROADS regional offices) with total contract value

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equivalent to Tshs. 5,296,929,731,608.12 had total pending payments equivalent to Tshs 1,128,106,737,141.38 (Tshs. 463,884,717,516.94, USD 308,514,907.39 EUR 19,652,120.39 and DKK 84,737.26). Due to the delayed payments, as of June, 2015, interest charges had accrued to total amount equivalent to Tshs. 124,839,774,437.50 (Tshs 82,515,701,581.45, USD 19,688,659.06 and EUR 1,227,814.47). It should be noted that interest charges were still accruing until when the outstanding payments will be made.

Therefore, apart from the delayed and abandoned projects, the government pays/ will pay huge amount of money as interest charges. In addition, in the long run, contactors will tend to cover themselves against the risk of payment delays and therefore hiking construction costs causing construction to be unnecessarily expensive. Other effects associated with delaying payments to contractors include hindering the development of contractors, especially local contractors, considering the fact that the majority of local contractors have limited access to credit facilities.

Verification of VfM Audit findings in FY 2013/2014

29. During the audits, the verification auditors verified overpayments amounting

to Tshs. 377,396,034.12. The total verified overpayments were below the originally detected overpayments of Tshs. 1,938,130,024.72 due to the fact that, some of the audited projects were ongoing when they were previously audited and therefore, the overpaid items identified during the value for money audits were corrected before the verification assignment. In addition, some of the documents which were not made available to the auditors to justify some of the payments were also given to the verification auditors. Furthermore, some of previous detected overpayment was deducted from contractor's final payment certificate.

Corruption red flags

30. For all audited procuring entities, each audited project was tested with corruption red flags to determine the like hood of corruption in each project. The entities which scored 20% and above on Red-flags scale gave an indication that there is corruption likelihood. However, it is important to note that a detected red-flag is not in itself an evidence of corruption.

The overall assessment of corruption red flags indicates that, nine (9) out of eighty (80) audited PEs were assessed to have corruption red flags of 20% and above giving an indication that there is corruption likelihood in the audited projects. The overall average red-flag score for the nine PEs is 24.95%. Contract management phase was found to score higher among the corruption

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red flags assessment phases with an average score of 36% followed by pre-bid phase with an average score of 22% and evaluation and award phase with an average score of 22% The nine PEs with scores in brackets are: Kinondoni Municipal Council (21%), Mpanda District Council (22%), Tanzania Railway Limited (22%), Kibondo District Council (24%), Kigoma District Council (28%), Agricultural Input Trust Fund (28%), Mbozi District Council (20%), National Electoral Commission (29%) and Karatu District Council (31%). Assessment of corruption red-flag was also analyzed for individual projects to identify level of corruption likelihood in each project. Out of 186 audited projects, 27 projects had red flags likelihood above 20%.

Recommendations

31. On the basis of the compliance audit findings, the following is recommended;

31.1 All the twenty seven (27) PEs with good performance be commended

for their performance.

31.2 Accounting Officers and heads of PMU of the seventeen (17) PEs with

poor performance to be summoned to appear before the Board to show cause why disciplinary and legal action should not be recommended to the competent Authority. This recommendation is pursuant to the provision made under Section 20 and Section 104(2)(d) of the PPA, 2011.

31.3 All 53 PEs with performance below the 75% compliance target be

required to organize training to their staff on the application of PPA, Regulations and, guidelines and systems prepares by the Authority. The training should be conducted by PPRA and be tailored to each PE (or a group of PEs) depending on the weaknesses observed during the audits. The cost for the training should be met by the respective PEs. Furthermore, the AOs of the respective PEs should be required to submit plans/ strategies within three months of communicating the audit reports, aimed at ensuring full compliance to PPA and PPR.

31.4 As recommended in previous year, in order to address weaknesses

observed in LGAs under contracts management, collaborative capacity building strategies are required between PPRA, PMORALG, CRB and other stakeholders. The strategies should include: Strengthening the capacity of RAS offices to monitor the performance of LGAs; strengthen the capacity of Internal Audit Units in LGAs for them to audit adequately procurement issues and implementation of works

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contracts; strengthening the capacity of Council Engineers offices in terms of staffing, quality control equipment, and supervision vehicles/motorcycles; and strengthening the capacity of contractors in terms of technical skills, equipment, management skills; taking disciplinary and/or legal measures against fraudulent behaviours.

31.5 On the weaknesses observed in the implementation of PPRA’s procurement information management systems, PPRA has assessed critically the causes for non-compliance and observed that capacity building is still required on the area of preparation and submission of procurement reports through PMIS in order to make it more user friendly to PEs.

32. On the basis of Value for Money audit findings, the following are

recommendations on the appropriate actions to be taken:

32.1 In procuring entities where 96 audited projects were assessed to have fair performance between 50% to 75%, PEs should be required to prepare and submit to the Authority an action plan on how the entity is going to address the weaknesses observed for future improvement of procurement process. PEs in this category should also be required to request from PPRA tailor made training on PPA and its Regulations.

32.2 For all procuring entities in which thirty five (35) projects equivalent to

19% of all audited projects were assessed to have unsatisfactory performance, disciplinary actions should be taken against responsible officers for projects which scored unsatisfactorily during planning, design and tender documentation; tendering process, contract administration and/or project closure and completion.

32.3 On unjustifiable payments made to contractors, a verification team will

be formed to carry out verification of unjustified payments observed and detailed measurements will be carried out jointly with responsible contractors, consultants, project managers and PEs representative. This is due to the fact that when project measurements were taken contractors, consultants and project managers were not at site when measurements were carried out.

32.4 The accounting officers of all audited entities to be required to

implement the audit recommendations provided in the audits reports and submit to the Authority implementation status within three months after receiving the audit recommendations.

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32.5 The accounting officer and Head of Procurement management Unit of Tanzania Ports Authority who had failed to provide to the audit team the required documents relating to the project for construction of the proposed One Stop Center to be summoned before the Board of Directors to provide reasons for their failure to produce the required documents and to show cause why disciplinary actions should not be taken against them.

32.6 The Paymaster General to be informed on the observed delayed payments to the contractors and the associated effects to the Government as well as contractors and be advised to take appropriate measures in order to rescue the situation.

33. On the basis of verification of FY 2013/2014 audit findings, the following is

recommended:

33.1 On the basis of verification exercise done on detected overpayments, accounting officers of procuring entities where overpayments has been verified to be made to contractors and /or suppliers, to be directed to recover the overpaid amount. For ongoing projects, a report on the final account of the projects should be submitted to the Authority for verification.

33.2 To recommend to the accounting officers of PEs where overpayments

had been verified, to take disciplinary measures to officers who were responsible for measurements and approval of detected overpayments.

33.3 For projects with verified overpayments, where the project managers were consultants/firms and were responsible for measurements and approval of detected overpayments, the Authority to initiate the debarment process against those consultants/firms.

33.4 Contractors, Engineers, Architects, Quantity Surveyors who were involved in the verified malpractices to be reported to the relevant registration boards for professional misconduct.

33.5 The audit reports for all PEs and specific projects with detected likelihood of corruption with scores of 20% or above to be submitted to PCCB for further investigation.

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33.6 All audited procuring entities with verified overpayments to submit to the Authority a report on the implementation of board directives. The report should be submitted within three months after receiving the board directives

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1.0 Introduction 1.1 Background In view of its mandate under Section 9(1)(i) of the Public Procurement Act, 2011, (PPA 2011), the Public Procurement Regulatory Authority (PPRA) through financing from Public Finance Management Reform Programme (PFMRP) carried out procurement audits and verification audits in eighty (80) procuring entities (PEs) namely: Procurement audits only (45 PEs); procurement audits and performance audits only (18 PEs), both, procurement audits & verification audits (15 PEs); and verification audits only (2 PEs). The audited PEs included nineteen (19) MDAs, thirty nine (39) LGAs and twenty two (22) PAs. The audit was carried out between April and September, 2015 for procurements in the FYs 2014/15 and 2013/14 (verifications). The audit objective was to determine whether the procedures, processes and documentations for procurement and contracting were in accordance with the provisions in the PPA, Procurement Regulations, and the standard documents prepared by PPRA and that procurement carried out achieved the expected economy and efficiency (value for money for the allocated resources), and the implementation of contracts conformed to the terms thereof. The audits were also intended to identify weaknesses in the application of the PPA and Procurement Regulations aiming at assisting the audited procuring entities to take appropriate measures including implementation of appropriate capacity building strategies and improving controls. 1.2 Selection of the Procuring Entities to be audited The selection of the procuring entities to be audited was risk based and considered a combination of the following criteria: a) PE’s volume of procurement; PEs with volumes of procurements of

above 20 billion during the Fy 2014/15. b) Frequency of complaints/mis-procurement allegations levelled against

the procuring entity; All procuring entities with cases which warranted investigation were included in the list and those with high frequency of complaints were allocated more points.

c) Results of previous audits; Procuring entities which had low compliance levels in the previous audits were allocated more points,

d) Time lapse since the last audit; Procuring entities with longer time interval since they were audited were allocated more time, and

e) Geographical location; This criterion was used to adjust the number of procuring entities to be audited depending on the route in order to maximize resources utilization.

The criteria were applied and ranking was done for all procuring entities within each category of procuring entities i.e Ministries, Parastatal organizations, Public Authorities and Agencies, Local Government

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Authorities, and Independent Departments. The number of procuring entities to be audited from each category was then proportionally determined depending on the number of procuring entities in each category. 1.3 Sampling of procurements Compliance audit For compliance audits, auditors were required to use both, random and targeted sampling methods depending on the following: Category of procurement (Goods, works, consultancy, non-consultancy or Disposal of assets); procurement methods used (DC, ICB, NCB, SSS, CQ, RT, FWA); Contract value (Contracts with small as well as larger values); Signature date; Type of procurement (Roads, irrigation, buildings, stationary, food items, cleaning, vehicle maintenance e.t.c). In addition, auditors were required to include all high risk procurements such as; i) Procurements through single source procurement method, ii) Procurements done through inappropriate methods of procurement, iii) Emergency procurements, iv) Tenders awarded without tender board’s approval, and v) Procurements which were not in the procurement plan (or revised plan).

The following guidance was provided to auditors for determining the sample size; i) 75% to 100% of the total number of tenders/contracts for procuring entities

with volume of procurement below Tshs. three (3) billion. ii) 50% to 75% of the total number of tenders/contracts for procuring

entities with volume of procurement of between Tshs. three (3) and ten (10) billion.

iii) 25% to 50% of the total number of tender/contracts for procuring entities with volume of procurement of above Tshs. 10 billion.

Value for money audits For the case of value for money audit of construction projects, auditors were required in their contracts to select the audit sample consisting of representative number of tenders/contracts depending on the: Category of procurement (Works or consultancy); Procurement methods; Contract value (Contracts with small as well as larger values); Signature date (2014/15 and 2014/15 financial years); Type of procurement (Roads, bridges, irrigation, buildings, water projects e.t.c); and type of intervention (New construction, rehabilitation, maintenance e.t.c). In addition, auditors were required to include in the sample a minimum of four (4) construction projects (including both, works and consultancy contracts under the project). 1.4 Methodology In the course of executing the audit assignment, various approaches were exercised including; documents review, interviewing various stakeholders,

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and in some selected cases assessment of the procured goods and constructed facilities was done. The following documents were critically reviewed: Annual Procurement Plans; Correspondences in the tender files; Tender adverts; Bidding documents; Tender evaluation reports; Minutes of tender board meetings; Notification of contract awards; Contract documents; Internal Audit reports; and Documents on contract administration. In the case of value for money audits for construction projects, physical works were thoroughly inspected and measured to ascertain the quality and quantity of the work done. Under the compliance audit, the audit was mainly based on the seven performance areas (weighted as shown in brackets) namely: Assessment on institutional setup and performance (Tender Board, Procurement Management Unit, and Internal Audit unit) [10%]; Appropriateness of preparing and implementing the procurement plan [10%]; Appropriateness and efficiency of tender process (from the preparation of tender documents to communication of contracts awards) [20%]; Appropriateness of contract management [40%]; assessment on the management of procurement records [10%]; assessment on the implementation of systems prepared by the Authority [10%], and; Assessment on how complaints were handled[-10%]. For value for money audits, a different tool was used which is based on five performance areas (weighted as shown in brackets) namely: Assessment on the planning, design and tender documentation [20%]; Assessment of key processes in the procurement stage [10%]; Assessment of how the construction stage was administered [20%]; Assessment of the project completion and closure stage [10%], and; assessment of the quality of works [40%]. After the audit, the audit team met with the Accounting Officers, management teams, tender boards and PMU staff of the respective PEs for the purpose of validating the audit findings, getting clarification on issues observed during the audit and providing professional advice on areas which need improvement. After the exit meeting, the audit findings were communicated in writing to the audited PEs which were then required to respond to the audit findings within a period of two weeks. 1.5 Fraud and Corruption Aspects

In order to collect information about possible symptoms of corruption in the procurements carried out by procuring entities, auditors were required to use the Red Flags Checklist specifically developed for the purpose. The red flags checklist also serves as a tool to address corruption at the level of the individual procuring entity. In this regard, it is important to note that a detected red flag is not in itself evidence of corruption; however, the higher the number of red flags detected, the higher the likelihood that corruption has been involved. In some cases, the higher the number of red flags detected indicates that the weaknesses observed are not a result of existence of

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corruption in the procurement but rather operational defficiencies due to capacity gaps. To that end, red flag checklist for the sampled procurements was filled, and overall findings for the entity summarized in the report. It was considered that there is likelihood of fraud or corruption in entities and/or procurements which scored 20% and above on red flags scale.

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2.0 Audit findings for Compliance Audits

2.1 Volume of audited procurements

The total number of audited procurement contracts was 5,206 (including 2,671 minor value procurement and call off orders contracts) with a total value of Tshs 214,631,105,717.40. The audit covered 345 contracts for works with a value of Tshs 119,618,771,178.00 equivalent to 56% of the total value of audited procurement contracts, 1,112 contracts for goods with a total value of Tshs 35,112,376,975.00 equivalent to 16%, 34 contracts for consultancy services with a total value of Tshs 5,633,300,299.00 equivalent to 3%, 1,041 contracts for non-consultancy services with total value of Tshs 18,043,752,042.00 equivalent to 8%, 2671 minor value procurements (goods and non – consultancy services) amounting to Tshs 29,679,648,447.00 equivalent to 14% and 3 force account procurements amounting to Tshs 6,543,256,776.40 equivalent to 3%.

2.2 Overall Level of Compliance

On the basis of the compliance indicators, the outcome of the audits indicated an average level of compliance of 69.0% indicating a significant increase above the last year’s average compliance level of 65%. However, the recorded compliance level is below the targeted compliance level of 75% which was set for the FY 2014/15. The analysis of the audit results has shown that while 27 out of 80 PEs were assessed to have satisfactory compliance levels above the target of 75%, 53 PEs were assessed to have unsatisfactory performance below the targeted level of compliance. See figure 1 on the distribution of compliance levels for audited PEs.

0 0 0 1

5

13

23 24

10

4

0

5

10

15

20

25

30

0 ‐ 10 11 ‐ 20 21 ‐ 30 31 ‐ 40 41 ‐ 50 51 ‐ 60 61 ‐ 70 71 ‐ 80 81 ‐ 90 91 ‐ 100

NUMBE

R OF PEs

SCORES RANGE

Figure 1: Distribution of compliance levels for audited PEs

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While the overall compliance level of the audited PEs has increased, the average compliance level for MDAs have dropped from 71% to 69% when compared to last year’s audit results. Public Authorities and Local Government Authorities on the other hand have shown improvements from 68% and 62% recorded last year to 71% and 67% respectively. Figure 2 compares the compliance levels in MDAs, PAs and LGAs for the seven compliance indicators.

Key: 1. Institutional set

up and performance 2. Appropriateness of

preparing and implementing APP

3. Appropriateness of tender processing

4. Appropriateness of contracts management

5. Management of procurement records

6. Implementation of systems prepared by PPRA

7. Handling of complaints

 

Figure 2: Comparison of the compliance levels for MDAs, PAs and LGAs The average compliance levels for the seven performance areas were as follows: Appropriateness and performance of the institutional setup (77%); Appropriateness of the preparation and implementation of procurement plans (75%); Appropriateness of the tender process (77%); Appropriateness of contract management (70%); Management of procurement records (67%); Implementation of systems prepared by PPRA (35%), and; Mishandling of complaints in procurement process (-3%) as shown in figure 3.

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Key: 1. Institutional set

up and performance 2. Appropriateness of

preparing and implementing APP

3. Appropriateness of tender processing

4. Appropriateness of contracts management

5. Management of procurement records

6. Implementation of systems prepared by PPRA

7. Handling of complaints

 

77% 75% 77%70% 67%

35%

‐3%‐10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1 2 3 4 5 6 7

SCORE

COMPLIANCE INDICATOR

Figure 3: Overall compliance of the audited PEs On the assessment of the individual performance areas, the performance is above the targeted level of compliance on three performance areas namely: institutional setup and performance; tender processing; and preparation and implementation of procurement plans. However, the performance is below the targeted level of compliance on: contracts management and implementation; management of procurement records; and implementation of systems prepared by PPRA. The audit results indicate overall shift towards compliance when compared to last year’s performance as shown in figure 4. The assessment of the compliance indictors for all the audited PE’s is shown in Annex 1 of this report.

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IMPROVEDCOMPLIANCE

Figure 4: Comparison of compliance between Fy 2013/14 and Fy 2014/15

2.3 Performance analysis Compliance indicators were established for the purpose of assisting the Authority in identifying and prioritizing areas which need capacity building interventions and to monitor procuring entities’ compliance trends in order to assist them in building their capacity as well as recommending appropriate disciplinary measures in case of persistent and or serious breaching of the PPA and its attendant Regulations. The compliance indicators have been grouped into seven main performance areas comprising a total of 100 sub indicators. The purpose of the following analysis is therefore to identify significant areas which need immediate and appropriate interventions. 2.3.1 Institutional set up and performance The assessment under this indicator covered the following areas: The appropriateness of the established TB; Notifying the Authority on the established TB; appropriateness of the established PMU; knowledge of the TB members and PMU staff in applying the PPA and procurement regulations; establishment of sub-vote for PMU and allocation of adequate funds; existence of Internal Audit units; the performance of the AO, TB, PMU, UD and Internal Auditor in fulfilling their responsibilities stipulated in the PPA; and interference of responsibilities and powers.

The analysis of the audit results on institutional set up has indicated satisfactory level of compliance on establishment of tender boards and, existence of internal audit units where the compliance was 94% and 96% respectively. However, the compliance is below the targeted level of compliance of 75% on indicators for notifying the Authority about the

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membership of tender board (70%), training on PPA and PPR for tender board members (46%), PMU staff (61%), and IAU staff (52%), establishment of PMUs (72%), and establishment of sub-vote and allocation of adequate funds for PMU operations (70%). The compliance levels for the eight sub-indicators are shown in the figure 5 below.

Key 1. Establishment of

TBs 2. Notification to the

Authority on TB establishment

3. Knowledge of PPA and PPR for TBs members

4. Establishment of PMUs

5. Knowledge of PPA and PPR for PMUs staff

6. Establishment of sub-vote for PMU and allocation of adequate funds

7. Existence of Internal Audit Unit s(IAUs)

8. Knowledge of PPA and PPR for IAUs staff

 

Figure 5: Compliance levels under Institutional setup

On the compliance of organs to their stipulated powers and responsibilities,

the assessment has indicated that the procurement organs, AOs, BAA and UDs performed their obligations adequately as stipulated in the PPA with performance scores of 86%, 89% and 82% respectively. Despite the fact that tender board members, PMU staff and Internal Audit staff were not all trained in PPA and PPR, assessment of performance of their responsibilities indicated that they performed their obligations adequately as stipulated in the PPA with performance scores of 79%, 77% and 79% respectively.

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Key 1. AOs performance 2. TBs performance 3. BAA performance

4. PMUs performance 5. UDs performance 6. IAUs performance

 

Figure 6: Compliance levels under Institutional performance Notable weaknesses under institutional setup and performance are highlighted in Annex 5-2. 2.3.2 Appropriate preparation and efficiency in implementing the

procurement plan

The assessment under this performance area covered the use of appropriate templates issued by PPRA; appropriateness of tender numbering as per PPRA’s guidelines; appropriateness of allocating tender processing time; whether requirements were properly aggregated; whether TB meetings were properly arranged to minimize procurement transaction costs; whether the procurement plan was properly approved; whether the procurement plan was advertised to the public; adherence to the procurement plan; and efficiency in implementing the plan.

The analysis on the preparation of annual procurement plans indicated an average level of compliance of 75% signifying that the majority of the audited procuring entities prepared properly their procurement plans by using appropriate templates, complying to the Authority’s guidelines for tender numbering, allocating properly tender processing times as provided in the regulations, and aggregating requirements properly. The majority of the

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prepared procurement plans were also approved by relevant authorities as required. However, as for the previous year, the compliance level was below the target on the indicators for planning of TB meetings with a score of 70%, advertisement of General Procurement Notices where only 63% of the audited PEs complied with the requirement, adherence to the timeframe in the procurement plans where 69% of the audited PEs complied, and efficiency in implementing the plan with a score of 73%. The compliance levels for the sub indicators under annual procurement planning and implementation are shown in figure 7 below;

Key 1. Proper Preparation of APP 2. APP approved by relevant authorities

3. Advertisement of GPN to the public 4. Efficiency in implementing the APP

 

79%84%

63%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1 2 3 4

Performance

Indicators

Figure 7: Compliance levels under Procurement planning and

implementation Key issues observed by the auditors under procurement planning are highlighted in Annex 5-3 2.3.3 Appropriateness of tender processing

The assessment under this performance area covered the following: whether approval to start the procurement process was granted by AO; whether tender documents were properly prepared including neutral specifications/ terms of reference, unambiguous evaluation criteria, clear and fair terms; appropriateness of the procurement methods used; whether tender documents, tender adverts, shortlists of bidders, minutes of negotiations, recommendations for awards were approved by TB; whether bid opportunities were properly published to the public; whether bidders were given adequate time to prepare bids; whether tender adverts were submitted to PPRA for publication in the procurement journal and PPRA’s website;

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whether clarifications to bidders were issued timely to bidders; whether bids were properly received and opened; whether bids were properly evaluated; whether bidders were given time to challenge the tender process before award; whether contracts were awarded within tender validity period; whether contract awards were properly communicated; whether contract awards were published in the TPJ and PPRA’s website; whether unsuccessful bidders were notified; whether procedural forms issued by PPRA were used, and; whether PEs sought for PPRA’s approval before cancellation of any tender.

The average level of compliance on the procurement process for the 80 audited PEs was 77% which is above the targeted level of compliance of 75% signifying that the majority of the audited PEs complied with the provisions in the PPA and PPR regarding tender processing. The audit results show that, out of the thirty two sub-indicators used to assess the tender process, only six scored less than the targeted compliance level. The six indicators with low compliance levels are: submission of tender advertisement to PPRA (57%); appropriate contract negotiations (65%); notice of intention to award contracts issued to bidders to give them room to submit complaints (if any) (72%); publication of contract awards in the tender portal and TPJ (42%); notifying unsuccessful bidders on awarded contracts (68%), and; the use of procedural forms issued by PPRA (59%). The remaining indicators performed relatively well as shown in figure 8. Notable weaknesses in the tender process included the following: 15% of the reviewed tenders were advertised without tender boards’ approval; 21% of the reviewed quotations were issued to bidders without tender boards’ approval of the shortlist; 12% of the reviewed tenders were evaluated using criteria not stipulated in the tender documents; 35% of the reviewed contracts were negotiated without following appropriate procedures stipulated in the PPR; notice of intention to award contracts were not issued in 28% of the reviewed tenders; 22% of the reviewed contracts were awarded beyond the bid validity period; 58% of the reviewed tenders were not published in TPJ and tender portal; procedural forms issued by PPRA were not used in 41% of the reviewed tenders.

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Key 1. Approval to start

procurement process granted

2. Tender documents prepared properly

3. The use of appropriate methods of procurement

4. Approval of advert and tender documents granted

5. Approval of shortlist of bidders granted

6. Public advertisement of bid opportunities

7. Provided adequate time for preparation of bids

8. Submission of tender adverts to PPRA

9. Proper receiving and opening of tenders

10. Proper evaluation of tenders

11. Approval of awards granted by TB

12. Contracts negotiations done properly

13. Minutes of contracts negotiations approved by TB

14. Notice of intention to award issued as appropriate

15. Proper communication of contracts awards

16. Contracts awarded within tender validity period

17. Publication of awards in the TPJ & tender portal

18. Notification of unsuccessful bidders

19. Using procedural forms issued by PPRA

20. Not seeking PPRA's approval before rejecting tenders

 

Figure 8: Compliance levels under tender process

Selected weaknesses observed in the tender process are highlighted in Annex 5-4. 2.3.4 Appropriateness of contracts management and implementation

The assessment under appropriateness of contracts management and implementations was made on the following issues: whether contracts were properly prepared, included all the required documents and were approved by tender boards; whether contracts were vetted by AG/ legal officers of the respective PEs; whether contracts were properly signed; Existence and qualifications of contracts managers; whether general contracts administration issues were properly managed; whether contractual time control issues were properly managed; whether contractual quality control issues were properly managed; whether contractual scope control issues were

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properly managed, and; whether contractual cost control issues were properly managed.

The audit results indicated a compliance level of 70% on contracts management and implementation. As observed in the previous year, the audits revealed the following weaknesses: weak management of performance securities, advance payment securities, and insurance covers which was observed in 33% of the reviewed contracts; untimely issuance of instructions to contractors observed in 31% of the reviewed contracts; negligence of enforcing remedies for delays stipulated in the contracts which was observed in 33% of the reviewed contracts; extending contracts duration without justification and without following appropriate procedures which was observed in 27% of the reviewed contracts; issuing variations without justifications; weak quality controls and quality assurance observed in 58% of the reviewed contracts; delayed payments to service providers observed in 37% of the reviewed contracts; making payments to service providers without following procedures for inspections and measurements observed in 17% of the reviewed contracts, and; weak management of contracts close out observed in 31% of the reviewed contracts. The performance assessment of the sub indicators under contracts management is shown in figure 9 below;

Key 1. Completeness of contract documents, TB approvals & AG vetting

2. Management of general contract administration issues

3. Management of time control issues

4. Management of quality control issues

5. Management of cost control issues

 

Figure 8: Compliance levels under Contracts Management and implementation

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Notable weaknesses observed in managing contracts are highlighted in Annex 5-5. 2.3.5 Management of procurement records

The following were assessed under the indicator for management of procurement records: Availability of complete records; whether procurement records were properly arranged and well kept; availability of adequate space for keeping procurement documents, and; availability of adequate storage facilities.

The overall average compliance for the indicator was 67% far below the targeted level of compliance. The observed weaknesses under this indicator affected the efficiency and completeness of the audit exercise. The analysis of the audit results revealed that 38% of the reviewed tenders had incomplete procurement records and 42% of the procurement records were scattered in various departments. In addition, 25% of the PMUs in the audited PEs had inadequate storage facilities and 23% of the PMUs in the audited PEs had inadequate space for keeping procurement records. The performance assessment of the sub indicators under records management is shown in figure 10 below;

Key 1. Availability of complete procurement records

2. Proper arrangement of procurement records

3. Adequacy of space for procurement records 4. Adequacy of storage facilities for procurement records

 

Figure 10: Compliance levels under Management of Procurement Records Notable weaknesses observed in management of procurement records are highlighted in Annex 5-6.

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2.3.6 Implementation of systems prepared by PPRA (PMIS and/or CMS)

For this indicator, the auditors assessed whether procuring entities complied with the requirement for submitting procurement information as provided in the PPA and PPR through systems developed by PPRA and covered the following areas : timely submission of procurement plans; submission of procurement process reports for individual tenders; submission of contracts completion reports; submission of monthly, quarterly and annual procurement reports. The analysis of the audit results indicated an overall compliance of 35% meaning that the majority of the audited procuring entities are still not complying with the requirement for submitting procurement information through the systems developed by PPRA. 25% of the audited PEs did not comply with the requirement for submission of APP to PPRA, procurement processing reports of 89% of the audited tenders were not submitted, 81% of the audited PEs did not comply with the requirement for submission of contract completion reports; 73%, 69% and 56% of the audited PEs did not submit monthly procurement reports, quarterly procurement reports and annual procurement reports respectively. The reasons cited for low compliance included inadequate staff within PMUs, lack of internet facilities, lack of computers, and lack of adequate knowledge in implementing the systems. The assessment of the audit results for the implementation of the systems prepared by PPRA are shown in figure 11 below;

Key 1. Submission of planned procurements

2. Submission of tender process reports

3. Submission of contract completion reports

4. Submission of monthly procurement reports

5. Submission of quarterly procurement reports

6. Submission of annual procurement reports

 

Figure 11: Compliance levels under Implementation of PPRA’s systems

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2.3.7 Handling of complaints

In addition to the above six performance areas, PEs were assessed whether they had handled properly and timely complaints submitted by bidders in accordance to the provisions in the PPA and Regulations. Depending on the number of mishandled cases, PEs were penalized to the maximum of ten points. The analysis of the audit results indicated that out of the 80 audited procuring entities only five mismanaged the procurement complaints submitted by bidders.

2.4 Management of Contracts for Revenue Collections in LGAs Two hundred and sixty four (264) contracts for revenue collections were audited in twenty (20) LGAs. According to the reviewed contracts, out of the Tshs. 6,289,003,214.20 which was to be collected and remitted to the councils by the contracted collectors, a total amount of Tshs. 5,028,514,073.76 equivalents to 80% of the total expected revenue was remitted to the audited councils. The Audit results show that there is remarkable improvement in managing the contracts resulting to good collection of expected revenues compared to last year performance whereby only 67% of the total expected revenue was remitted to the audited councils. However, a total of Tshs. 1,260,969,140.44 equivalent to 20% was not remitted by the contracted collectors; the council did not take any measures which were stipulated in the contracts with the collectors. The measures included enforcement of performance securities clauses, charging interests for delayed remittance, and timely termination of contracts. Details of the revenue remittances are shown in table 2.1 below; Table 2.1: Revenue remittance

S/No. Name of the Audited PE

Number of

Contracts

Total Contracts Amount which

was to be Remitted

Total Amount Remitted

Amount not Remitted

% Remitted

1 Ushetu District Council 18

147,916,000.00 135,849,500.00 12,066,500.00 92

2 Muleba District Council 18

220,803,600.00 221,283,600.00 -

100.22

3 Kibondo District Council 10

109,040,007.00 104,225,745.00 4,814,262.00 96

4 Kigoma District council 18

30,740,000.00 28,210,000.00 2,530,000.00 92

5 Misungwi District Council 5

290,920,000.00 290,920,000.00 - 100

6 Kishapu District Council 19

127,495,000.00 127,495,000.00 - 100

7 Maswa District Council 17 342,385,620.00 239,203,530.00 103,182,090.00 70

8 Iramba District Council 27

1,575,685,322.00 613,685,476.76 961,999,845.24 39

9 Bunda District Council 23 359,085,000.00 329,720,890.00 29,364,110.00 92

10 Butiama District Council 10

160,100,000.00 151,399,000.00 8,701,000.00 95

11 Rorya District 18 138,554,000.00 33,910,000.00 80

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S/No. Name of the Audited PE

Number of

Contracts

Total Contracts Amount which

was to be Remitted

Total Amount Remitted

Amount not Remitted

% Remitted

Council 172,464,000.00 12 Tarime District

Council 8

213,240,000.00 210,540,000.00 2,700,000.00 99 13 Ukerewe District

Council 13

275,972,000.00 267,064,000.00 8,908,000.00 97 14 Kyela District

Council 12

279,618,000.00 277,668,000.00 1,950,000.00 99 15 Biharamulo

District Council 8

129,492,000.00 129,492,000.00 - 100 16 Karagwe District

Council 20

756,000.00 746,000.00 10,000.00 99 17 Mkalama District

Council 2

374,000,000.00 311,760,000.00 62,240,000.00 83 18 Makambako

Town Council 8

598,164,000.00 598,164,000.00 - 100 19 Makete District

Council 1 516,000,000.00 516,000,000.00 -

100 20 Karatu District

Council 9 365,126,665.20 336,533,332.00 28,593,333.20 92

Total 264.00

6,289,003,214.20

5,028,514,073.76 1,260,969,140.44

80

2.5 PEs with poor performance The analysis of the audit results indicated that seventeen (17) procuring entities had poor performance in complying with PPA and PPR. Although they were previously audited and provided with recommendations to assist them in complying with the procurement law, the audit results show that the recommendations provided were ignored. The records on audit results confirm that the performances for some PEs have remained low for a long time as shown in table 2.2 below; Table 2.2: PEs with poor performance

S. No. Entity

Compliance levels (%) FY

2007/08 FY

2008/09 FY

2009/10 FY

2010/11 FY

2011/12 FY

2012/13 FY

2013/14 FY

2014/15 1. Mpanda District

Council - - 43 - - - - 42

2. National Electoral Council - 80 - - - - 61.1 38

3. Karatu District Council - 37 - - 69 - - 49

4. Public Services Recruitment Secretariat

- - - - 75 - - 53

5. Tanzania Investment Centre

- - - 79 - - - 51

6. State Mining Corporation - - - - - - - 56

7. Mbozi District Council 50 - - - 53 - - 50

8. Kibondo District Council - - - - 54 - 48 57

9. Kigoma District - - 55 - - 50.2 63 52

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S. No. Entity

Compliance levels (%) FY

2007/08 FY

2008/09 FY

2009/10 FY

2010/11 FY

2011/12 FY

2012/13 FY

2013/14 FY

2014/15 Council

10 Misungwi District Council - - 60 - - - - 55

11. Government Chemistry Laboratory Agency

- 82 - - - - - 56

12. Tanzania Railway Limited - - - - - - - 51

13. Iramba District Council - - 60 - - 53.4 55 52

14. Nanyumbu District Council - - 45 - - - - 60

15. Ocean Road Cancer Institute - - 82 83 - - - 60

16. Kyela District Council 59 - - - 59 - - 60

17. Lindi Urban Water and Sanitation Authority

- - 28 25 - - - 60

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3.0 Value for Money audit findings

3.1 Introduction

Section 9 (1) (i) of the Public Procurement Act, 2011 gives power to the Public Procurement Regulatory Authority to institute procurement audits in the course of execution of an awarded contracts and performance audits after the completion of the contract in respect of any procurement as may be required. The objective of these audits is to determine whether contracts entered by procuring entities have been/were being implemented in accordance with the provided contract terms and conditions and whether the Government obtained value for money in spending public funds in the audited construction projects. During the FY 2014/2015 the Authority carried out contract and performance audits (value for money audits) where 186 construction, goods and consultancy contracts were executed or were being executed by 35 procuring entities. The entities selected for value for money audits were among 80 procuring entities selected for procurement audits which included 19 MDAs, 39 LGAs and 22 PAs. 3.2 Value for Money (VFM) Assessment Tool.

Contracts and performance audits was conducted using five VFM assessment criteria or indicators developed by the Authority namely Planning, Design, and tender documentation; Procurement process; Works supervision and contract administration; Quality and quantity of executed works and Project completion and closure. Each performance indicator is allocated weighting but more weighting is allocated on the indicator on Quality and quantity of executed works.

Table 3.1: VfM audit criteria

S/n. Indicator Purpose Weight (%) 1. Planning, design,

and tender documentation

To assess procurement planning, project feasibility and adequacy of design and specification for purposes of tendering and project execution.

20

2. Procurement process

To assess compliance with PPA and its Regulations. 10

3. Works supervision and contract administration

To assess the adequacy of project monitoring and control, and compliance with contract conditions and specifications.

20

4. Quality and quantity of executed works

To assess the quality, quantity and workmanship of executed works on site and their compliance with technical specifications.

40

5. Project completion To assess project completeness and 10

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and closure handing over.

3.3 Value for Money Audit Opinion

On the basis of developed VfM assessment criteria, the Authority aggregated into three groups the scores attained by each assessed project and each project was rated either with Satisfactory Performance, Fair performance or Unsatisfactory Performance. The aggregates are indicated in Table 3.2 Table 3.2: VfM Audit Opinion

Aggregated score

Value for Money opinion

75% - 100% Satisfactory

There is sufficient assurance that project objectives are likely to be achieved (or have been achieved) and VfM is likely to be realized (or has been realized).

Although the project is/ was exposed to some risks, they are considered to be manageable (they could have been managed).

Risk management action is/ was effective although improvement is/ was possible.

Management action is/was required to address the weaknesses observed.

50% - 74% Fair/ Satisfactory with some significant reservations

Although most of the project objectives are likely to be achieved but there are significant weaknesses that need to be addresses for the project to realize value for money (or important improvement could have been made to enhance VfM).

Risk management plan is/ was not sufficiently effective.

Management action is/was required to address the significant number of weaknesses observed.

0% - 49% Unsatisfactory

Most of the project objectives are unlikely to be achieved (or have not been achieved) hence VfM is unlikely to be achieved (or has not been realized).

Key risks were / are not being managed effectively or were/ are not being managed at all.

Urgent and significant management action is /was required to address the observed weaknesses to minimize the effects.

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3.4 VfM Audit Scope

During the FY 2014/15, a total of 152 construction projects (executed in 32 PEs) were audited with a total value of Tsh. 84,565,210,346.89; thirteen (13) Goods contracts (executed in 6 PEs) were audited with a total value of Tsh. 192,479,492,892.00; seven (7) consultancy contracts (executed in 3 PEs) were audited with a total value of Tsh. 527,454,300.00.

Table 3.3: Categories of sampled contracts

S/n Category Number of

audited projects

Value (Tsh.) Percentage

Number Value 1 Building 68 2,697,975,007,835.66 36.6% 92.5% 2 Road 92 23,767,003,387.63 49.5% 0.81% 3 Bridge 5 1,085,784,340.00 2.7% 0.04% 4 Railway repair 1 590,927,000.00 0.5% 0.02% 5 Goods 13 192,479,492,892.00 7.0% 6.60% 6 Consultancy 7 527,454,300.00 3.8% 0.02%

Total 186 2,916,425,669,755.29 100.0% 100.0%

Out of 186 audited contracts, 141 were executed in LGAs with a total value of Tsh. 33,138,552,511.37 (76% by number) while 15 were audited in Agencies with a total value of Tsh. 7,890,455,232.00 (8%). A total number of audited contracts in Independent Departments were 4 with a total value of Tsh. 16,125,728,511.02 (2%) while in Parastatal Organizations, 26 contracts were audited with a total value of Tsh. 2,859,270,933,500.90 (14%).

3.5 Overall VfM audit findings

3.5.1 Out of 186 audited projects, 55 projects equivalent to 30% of the audited projects with a total value of Tsh. 81,269,985,478.02 had satisfactory performance (score above 75%) which implies that the intended projects objectives had been achieved or are likely to be achieved and value for money had been realized or will be realized for the public funds spent. For ongoing projects, procuring entities were directed to address the weakness observed to ensure the project achieve its entire project objectives. For completed projects, PEs were directed to consider the weaknesses observed as lessons learnt and put in place strategies to address the weakness observed for future improvement of the procurement process.

Out of 186 projects, ninety six (96) projects equivalent to 52 % of audited projects with a total value of Tsh. 2,776,861,438,428.58 were assessed to have fair performance (score between 50% to 75%). In these projects, significant weaknesses were observed and if not properly addressed the intended project objectives are unlikely to be obtained and value for money for the public funds spent is unlikely to be

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obtained. Procuring entities in this category are required to prepare a comprehensive risk management plan on how to address the weaknesses observed and ensure effective implementation of the plan in order to achieve the projects objectives.

Thirty five (35) out of 186 audited projects equivalent to 19% with a total value of Tsh. 58,294,245,848.69 were assessed to have unsatisfactory performance (score below 50%) suggesting that most of the projects objectives are unlikely to be achieved and Value for Money is unlikely to be achieved or have not been achieved. In this category, urgent and significant management action is /was required to address the observed weaknesses to minimize its effects. The projects with poor performance included 14 roads projects (equivalent to 15% of all audited road projects) with a value of Tshs. 5,834,734,832.00, 14 building works projects (equivalent to 21% of all audited building projects with a total value of Tsh. 31,853,475,124.69, 4 goods contracts (equivalent to 31% of all audited goods contracts) with a value of Tsh. 19,527,128,892.00, One (1) bridge works project (equivalent to 20% of all audited bridge projects) with a value of Tsh. 250,340,000.00, One (1) consultancy contract (equivalent to 14% of all audited consultancy contracts) with a value of Tsh. 237,640,000.00, One railway repair project(equivalent to 100% of the audited rail projects) with a value of Tsh. 590,927,000.00.

3.5.2 The projects audited were assessed based on five performance

evaluation indicators and the overall performance results for each indicator were as follows: Planning, Design, and Tender documentation which scored 74.2% rated as fair performance; Procurement Process which scored 79.7% rated as satisfactory performance; Works Supervision and Contract Administration which scored 59.6% rated as fair performance; Quality and quantity of executed works which scored 76.3% rated as satisfactory performance and Project Completion and Closure which scored 53.1% rated as fair performance. The overall performance for all audited projects was assessed to be 64.5% signifying that by average projects audited had fair performance but with significant weaknesses which if not properly addressed some of the intended project objectives will not be achieved and value for money is unlikely to be realized. The overall performance for audited projects is indicated in Annex 5-7.

3.5.3 The assessment of value for money audits results in terms of performance of indicates that four (4) out of 35 audited PEs equivalent to 11.4% were assessed to have poor performance (below 50%). The PEs were with poor performance Kigoma District Council, Kibondo District Council, Iramba District Council and Muleba District Council. Twenty three (23) PEs equivalent to 65.7% were assessed to have fair

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performance while eight (8) PEs equivalents to 22.9% were assessed to have satisfactory performance.

The lists of audited projects with poor or unsatisfactory performance are indicated in the table below: Table 3.4: Audited projects with poor performance

Procuring Entity Project Description Contract Amount Score

Kigoma District Council

Periodic Maintenance of Chankabwimba – Mkongoro, Spot Improvement of Pasua Biotale and Routine Maintenance of Bitale – Bubango Roads Lot 2

82,760,000.00 44.0%

Routine Maintenance of Kibilizi – Kalalangabo (3km) Road, Mlati – Mtanga (2.5km) and Mlati Kagongo (8km) Road

20,127,000.00 44.0%

Construction of OPD at Nyarubanda Village 49,944,800.00 37.8% Construction of One Laboratory Wing at Nyarubanda Secondary School

61,897,000.00 37.8%

Supply Materials and Equipment and Install Water Supply Schemes including Construction of Intake Structures, Gravity Mains, Storage Tanks, Distribution Networks and Domestic Points for Water Supply Schemes in Kigoma District Council

680,338,450.00 48.7%

Periodic Maintenance of Kamara – Nkungwe Road (6km) and Routine Maintenance of Mahembe – Nkungwe Road

88,936,000.00 44.0%

Kibondo District council

Periodic Maintenance along Kibondo Town Roads 5km and Kibondo – Kumbanga road 4km, Routine Maintenance along Kibondo Town Roads 10km and Kibondo – Kumbanga Road 13km, Spot improvement along Kibondo – Biturana Road 5km and Construction of line dirch at Kibondo Town Council -

214,115,250.00 47.5%

Renovation and Extension of Canteen to be built in Clinical Officers College at Kibondo

78,596,617.00 31.6%

Renovation of staff houses at Nengo Primary School Special need 34.8%

Kinondoni Municipal Council

Upgrading of Biafra – France Embassy Road (0.85Km)

808,389,107.00 32.4%

Upgrading of Masjid Quba Road to Bitumen Standard

3,325,346,200.00 27.1%

Ilala Municipal Council

Construction of Kinyerezi - Bonyokwa Box culvert along Kinyerezi - Bonyokwa Road Lot 1

250,340,000.00 32.4%

Proposed Maintenance of Kinyerezi Road (0.5Km) to Surface Dressing Level - Phase III Lot 2

109,190,000.00 32.4%

Muleba District

Construction of concrete decks and Culverts 136,941,000.00 35%

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Procuring Entity Project Description Contract Amount Score

Council Construction of Gravity Piped Water at Ruhanga Village in Muleba District

846,570,835.00 39%

Construction of District Council Fence Phase II at Muleba Head Office

50,000,000.00 31.60%

Construction and Supply of Pumps at Kyota Irrigation Scheme and Supply of Pumps and Pipes works at Buyaga Irrigation Scheme in Muleba

234,744,196.64 26.80%

Construction of Piped Water Supply Network and Associated Appurtenances in Kangaza Village

579,884,266.00 23.30%

Construction and Renovation of Water Supply System for Kangaza Village in Muleba District

746,013,199.76 23.50%

Construction of Karutanga Water Supply Networks and Associated Appurtenance Structures in Muleba District Council

614,149,540.29 30.4%

Routine Maintenance of Kamishango - Nyawaibaga 21km and Periodic Maintenance of Kamishango - Nyawaibaga 5km

84,610,000.00 41.2%

Bariadi District Council

Spot Improvement of Igegu - Matongo km 10 na Isuyu- Nyawa km 7

12,230,375.00 46.2%

Mpanda District Council

Construction of Mechanized Piped Water Schemes and Civil Works at Igagala Village

494,627,990.00 46%

TANROADS Simiyu

Bridge Major Repair of Mongowako Bridge along Ntinge - Mwantinge and Rehabilitation Works along Mwakusane - Mwandete - Mwogai Unpaved District Road

652,387,600.00 39%

Mbozi District Council

Renovation of Warehouse at Nansana Village Lot 9

71,738,730.00 47%

Tanzania Railway Limited

Contract No. PA/113/2014/W/18 for Heavy Repairs and Restoration of Track Washed Away at Km 300/0-3, 302/7 - 8 and Km 315/1-9

590,927,000.00 44%

Contract No. PA/113/2014/W/51 for Remanufacturing of 8no. 88 Class Locomotives

27,222,114,400.00 42%

Contract No. PA/113/2012-13/ME/G/OE/013 For Supply of 25 (Twenty Five) New Ballast Hopper Bogie Wagons

4,100,000,000.00 44%

Contract No. PA/113/2012-13/ME/G/OE/007 For Supply of 34 New Brake Vans

6,772,800,000.00 46%

Contract No. PA/113/2012-13/ME/G/OE/009 for Supply of 100 Ton New Rail Mounted Breakdown Rescue Crane

7,667,000,000.00 34%

TANAPA Contract No. PA/037/2014-2015/HQ/G/15 for Supply Of Staff Uniform

987,328,892.00 37.60%

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Procuring Entity Project Description Contract Amount Score

Iramba District Council

Routine Maintenance along Mbelekese- Misuna - Tumuli Road (10.5km), Routine Maintenance along Milade- Kaselya (9km), Kaselya - Nsonga Road (6km) and Construction of Structures along Mbelekese- Misuna - Tumuli and Songambele- Misuna - Tumuli Roads - LGA/118/2014/2015/W/15 - LOT 1

225,487,000.00 46.20%

Period Maintenance along Kitusha - Kinampanda Road (4km), Routine Maintenance along Kinakumi - Kinampanda (21km), Kinakumi - Kisana Road (5km) and Construction of Structures along Kinakumi - Kinampanda Roads- LGA/118/2014/2015/W/15 - LOT 2

99,266,000.00 46.50%

Routine Maintenance along Kiomboi - Uwanza - Kinampanda Road (15.34km), Spot Improvement along old Kiomboi - Kisimba - Kisiriri (5.6km) and Construction of Structures along old Kiomboi - Kisimba - Kisiriri Roads

61,945,500.00 46.53%

Provision of Services in Strenghening Producers, Processors and Marketing Associations In Iramba District Council

237,640,000.00 19.76%

Karatu District Council

Contract No. LGA/002/HQ/2014-2015/Q/OWS/01 for Construction of Public Toilet at Bus Stand Karatu

35,858,900.00 38.3%

3.6 Performance analysis

As stated above, the assessment of audited projects/contracts was conducted based on five performance evaluation indicators namely; Planning, Design, and Tender documentation; Procurement Process; Works Supervision and Contract Administration; Quality and quantity of executed works and Project Completion and Closure. The following is the analysis of each performance indicator and areas of weaknesses which need appropriate interventions by procuring entities.

3.6.1 Planning, Design, and Tender documentation

Under this indicator, analysis was carried out to assess the appropriateness of procurement and project planning, project feasibility and adequacy of design and specification for purposes of tendering and project execution. Assessment was done on the accuracy and completeness of design and calculations; accuracy, appropriateness and completeness of technical specifications; accuracy and completeness of bill of quantities for the projects and their consistency with the drawings and technical specifications; overall appropriateness of the design in terms of economy and fitness for purpose; and accuracy and completeness of tender documents. With regards to audited goods contracts, assessment was made on the prepared schedule of requirement and specifications to determine whether goods to be supplied would meet the required standards and specifications. With regard to audited consultancy contracts, prepared request for proposals and terms of reference

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were assessed to determine whether they addressed properly the project objectives. The overall score for Planning, Design, and Tender documentation was assessed to be 74.2% signifying fair performance for projects audited. Under this aspect, MDAs performed satisfactorily at 79.5%, while LGAs and PAs performed fairly at 73.8% and 72.7% respectively as shown in Figure 12. Twelve (12) projects equivalent to 38.8% of all audited projects were assessed to have unsatisfactory performance under this indicator.

73.80%

79.50%

72.70%74.20%

68.00%

70.00%

72.00%

74.00%

76.00%

78.00%

80.00%

82.00%

LGAs MDAs PAs Overall

Figure 12: Overall VfM audit score on Planning, Design, and Tender documentation for MDAs, PAs and LGAs The major weaknesses which was observed under the indicator for planning, design and documentation indicator were: over estimation of the quantities in the Bill of quantities that impacted to overpayments; lack of project designs and drawings; lack of or incomplete project specifications, lack or unrealistic engineer’s costs estimates; lack of quality assurance plans, partial and incomplete drawings, commencing procurement process with no funds committed for such procurement. Weaknesses observed during Planning, Design, and Tender documentation are highlighted in the Annex 5-8.

3.6.2 Procurement process

Under this indicator, tender process for all audited contracts were reviewed to determine whether procuring entities adhered to the requirements of the Public Procurement Act, 2011 and the Public Procurement Regulations, 2013. In this aspect, thorough review on the following areas was made: the appropriateness of selection of methods of procurement; use of standard tender documents; review of the evaluation process to determine whether they conform with requirements of the respective tender documents; in negotiation process to see whether they were properly planned, approved and implemented; preparation of contract documents and proper signing of

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the contracts. Also to assess the overall competitiveness of the most economic tender when compared with prevailing market prices in both private and public sectors and to assess also the capacity and competence of the selected contractors, service providers or consultants in relation to project size and complexity The overall score for procurement process was assessed at 79.7% signifying that the overall performance of the projects was satisfactory. In this indicator, MDAs, LGAs, and PAs performed satisfactorily at 91.3%, 78.1% and 79% respectively as shown in Figure 13. Ten (10) projects equivalent to 23.4% of all audited projects were assessed to have unsatisfactory performance (below 50) in the procurement process.

78.10%

91.30%

79.00% 79.70%

70.00%

75.00%

80.00%

85.00%

90.00%

95.00%

LGAs MDAs PAs Overall

Figure 13: Overall VfM audit score on Procurement Process for MDAs, PAs and LGAs Major observed weaknesses on procurement included: inappropriate evaluation of tenders; failure by the evaluation committees to seek confirmation from bidders on correction of arithmetical errors; non publication of contracts awards information; failure by PEs to submit to the Authority contracts award information for publication in the Tanzania Procurement Journal and the PPRA Website, the quality and completeness of tender evaluation reports including the format was poor and inappropriate and was contrary to the standard Evaluation Reporting procedures; lack of evidence of vetting of contracts by the Attorney General, award of contracts beyond the bid validity period; and incomplete contract documents. Notable weaknesses observed during procurement stage are indicated in Annex 5-9.

3.6.3 Works Supervision and Contract Administration In this performance indicator, critical review was conducted to assess the adequacy of project monitoring and control, and compliance with contract conditions and specifications. Specifically the assessment aimed to observe whether project management issues were properly addressed including

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scope, schedule, time, costs and quality control issues. In scope and schedule control, auditors assessed the adherence by procuring entities on project scope, project programme and delivery schedule. With regard to time control, auditors assessed the timelines of project or contract commencement, timeliness of site possession for works projects, timely payment to contractors, service providers and consultants, timely issuance of payments certificates and on time issuing of instructions to contractors where need arose. With regard to cost control issues, auditors assessed the effectiveness of management of costs aspects of projects and in particular assessment was made on the grounds for project/contracts delays, justifications for contract extensions, assessment on claims, costs overruns and project variations. Projects were also assessed based on quality issues such as quality of project programme (schedule of work), adherence to project programme, quality of contractor's site organization and staff, quality of supervising engineer's site staff, quality assurance programme, management of contractual documents including surety and insurances bonds, quality and management of project documentation. The overall score for works supervision and contract administration was assessed at 59.6% signifying that the projects were fairly performed but with significant weaknesses if not properly addressed especially for ongoing projects value for money is unlikely to be realized. In this aspect, MDAs performed satisfactorily at 76.1% while LGAs and PAs performed fairly at 57.4% and 59% respectively as shown in Figure 14.

57.40%

76.10%

59% 59.60%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

LGAs MDAs PAs Overall

Figure 14: Overall VfM audit score on Works supervision and contract administration for MDAs, PAs and LGAs

Major weaknesses observed during construction stage were: failure by procuring entities to appoint project managers to manage works contracts, sites handing over to contractors not done on time, failure to prepare project progress reports, site management meeting were not held as required and

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where held records were not properly prepared and documented, payment certificates were not attached with measurement sheets to evidence actual quantity of works done, failure to impose liquidated damages where there was delay in contract implementation. Despite the existence of quality control plans, no quality assurance plans was observed, extension of contract was done after expiration of contract duration, entering into contracts with contractors without submission of performance securities, improper handling of variations and in some cases variations executed without tender boards’ approval, poor supervision for the executed projects, overpayments for non existing works or shoddy works or in some cases due to an overstated quantities in the bill of quantities, failure to prepare the project snag list or site handover minutes and delay in paying contractors their contractual claims.

Major weaknesses observed during construction stage are highlighted in Annex 5-10.

3.6.4 Quality and quantity of executed works

This indicator aimed to assess the quality of projects executed or goods supplied to ensure that the intended objectives are achieved and value for money in each project is realized. Under this indicator, assessment was made to determine whether the works executed were/are satisfactory in terms of the overall quality of workmanship and materials used. Based on physical site measurements, to determine whether dimensions of the items of the completed works comply with the drawings and technical specifications provided for each project. For uncompleted projects, auditors assessed the compliance of on-going construction activities with safety and environmental management plans. The overall score on quality and quantity of executed works was assessed to be satisfactory at 76.3%. MDAs and LGAs performed satisfactorily at 83.1% and 79.1% respectively while PAs performed fairly at 64.7% as shown in Figure 15. Out of 186 projects, thirty five (35) projects with a total value of Tsh. 58,294,245,848.69 were assessed to have poor performance (below 50%).

79.10% 83.10% 64.70% 76.30%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

LGAs MDAs PAs Overall

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Figure 15: Overall VfM audit score on quality and quantity of works for LGAs, MDAs and PAs

Major weaknesses observed under this indicator included: lack of project designs and drawings; lack of/or incomplete project specifications, partial and incomplete drawings, quality assurance plans were not prepared, poor supervision for the executed projects, poor workmanship of executed works, Lack of quality control tests on the executed works (gravel and concrete works) and use of inappropriate materials such as volcanic ash as building sand in the construction works for permanent structures, overpayments for non existing works or shoddy works or in some cases due to an overstated quantities in the bill of quantities.

During the Financial Year 2014/2015, audits carried out revealed that there was overpayment done by nine (9) procuring entities where the value of audited contracts with overpayment was Tsh. 6,360,006,701.00. The audits revealed that a total of Tsh. 951,713,833.07 were overpaid to contractors for non existing works and/or shoddy works. The amount paid as overpayment was equivalent to 15% of the total value of audited works contracts with overpayments. The audited PEs observed to effect dubious payments to contractors are shown in the table below:

Table 3.5: Dubious payments made to contractors

S/N Name of PE Contract Amount (Tshs) Detected Overpayment (Tshs)

1 Kigoma District Council

194,601,800.00 11,100,780.00

2 Kibondo District council

888,368,342.50 64,915,640.00

3 Mwanza City Council

832,162,260.00 69,606,500.00

4 Misungwi District Council

508,903,100.00 55,603,100.00

5 Tarime District Council

330,384,000.00 25,420,500.00

6 Tanzania National Park

438,950,000.00 156,304,000.00

7 Tanzania Railway Ltd

2,018,476,543.00 473,588,243.07

8 Rungwe District Council

943,443,399.50 93,096,370.00

9 Kyela District Council

204,717,256.00 2,078,700.00

Total

6,360,006,701.00 951,713,833.07

3.6.5 Project Completion and Closure Under this indicator, assessment was done on completed projects to assess the following: the quality and completeness of as-built-drawings, compilation

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and management of snag list, timely issuance of Substantial Completion Certificate, Final Certificate and settlement of Final Account, management of the defects liability period, quality and adequacy of the final project report, compliance of final quantities paid for with those reflected by the actual investment as per as-built-drawings, compliance of project cost as per final account with accepted tender price and compliance of actual project completion time with the contract period. The overall score on project completion and closure was assessed to be fair at 53.1%. MDAs, LGAs and PAs were assessed to have fair performance to 66.1%, 51.3% and 52% respectively as shown in Figure 16. During audits of 186 projects 68 projects was competed while the remaining 118 projects were still was implementation ongoing. Out of 68 completed projects, 23 projects with a total value of Tsh. 50,278,203,454.50 were assessed to have poor performance (below 50) under this indicator.

51.30%

66.10%

52% 53.10%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

LGAs MDAs PAs Overall

Figure 16 : Overall VfM audit score on project completion and closure for LGAs, MDAs and PAs

Major observed weakness under project completion and closure were: delay in project completion, failure by project managers to prepare snag list for completed projects, failure to carry out final inspection for completed worked, As built drawings were not prepared as per contract requirements, final inspection of works was not carried out, site handover or snag list were not prepared., the project completion report were not prepared to indicate practical completion and snag list.

3.6.6 Payment delays for construction projects

In the course of procurement audits, the auditors observed serious delays on contractors’ payments. Notable delays were observed in road works contracts under TANROADs and water projects under Local Government Authorities. Delayed payments were mainly due to delays or non disbursement of

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committed funds from Treasury. Due to the delayed payments, a number of projects were delayed for completion and some of them were abandoned by the contractors. For example, the Authority requested from TANROADS information on projects with outstanding payments as of June, 2015. After analyzing the submitted information, it was observed that a total of 301 contracts (124 contracts at TANROADS HQ and 177 contracts at TANROADS regional offices) with total contract value equivalent to Tshs. 5,296,929,731,608.12 had total pending payments equivalent to Tshs 1,128,106,737,141.38 (Tshs. 463,884,717,516.94, USD 617,029,814,774.54, EUR 47,165,088,927.97 and DKK 27,115,921.93).

Due to the delayed payments, as of June, 2015, interest charges had accrued to total amount equivalent to Tshs. 124,839,774,437.50 (Tshs 82,515,701,581.45, USD 19,688,659.06 and EUR 1,227,814.47). It should be noted that interest charges were still accruing until when the outstanding payments will be made. Therefore, apart from the delayed and abandoned projects, the government pays/ will pay huge amount of money as interest charges. In addition, in the long run contactors will tend to cover themselves against the risk of payment delays and therefore hiking construction costs causing construction to be unnecessarily expensive.

According to Regulation 10(4) of GN. No. 446 of 2013, procuring entities are required to ensure that payments due to tenderers are made properly and promptly according to the terms of each procurement contract entered into, with a view to maintain the credibility and creditworthiness of a procuring entity. Although under the referred regulation procuring entities are required to ensure that the commitments are recorded against the allocated funds before any contract is signed, delayed payments are associated with delayed disbursement of committed funds from Treasury.

Other effects associated with delaying payments to contractors include hindering the development of contractors, especially local contractors, considering the fact that the majority of them have limited access to credit facilities. For purposes of supporting the growth of local firms and enabling such firms to meet their contractual obligations, procuring entities are required under Regulation 44(1) of GN. No. 446 of 2013 to ensure that timely payments are made to tenderers.

In order to avoid the effects associated with delayed payments to contractors as highlighted above, the Government through Treasury is advised to ensure that committed funds are made available to the respective procuring entities promptly as planned. Otherwise, procuring entities are advised to ensure that funds are committed before signing any procurement contract as per the provision under Regulation 10(4) of GN. No. 446 of 2013.

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3.6.7 Assessment of corruption red flag

During the FY 2014/2015, the Authority carried out procurement audit for 80 procuring entities. Apart from carrying out procurement audit, auditors were required to fill Red-flag checklists for the selected tenders so as to identify level of corruption likelihood. The entities which scored 20% and above on Red-flags scale were selected and included in this report since it gave an indication that there is likelihood of corruption. However, it is important to note that a detected red-flag is not in itself an evidence of corruption. In some cases the higher the number of red flags detected the higher the likelihood that the corruption has been involved. In some cases, the higher the number of red flags detected indicates that the weaknesses observed are not a result of existence of corruption in the procurement but rather operational deficiencies due to capacity gaps.

To that end, red flag checklist for the sampled procurements was filled and found that out of 101 procuring entities nine (9) PE’s scored 20% and above on corruption red flags in three corruption red flags assessment phases (Pre-bid, Evaluation and Award and Contract Management). In addition, contract management phase found to score higher among the corruption red flags assessment phases.

Nine (9) out of eighty (80) audited PEs were assessed to have corruption red flags of 20% and above giving an indication that there is corruption likelihood in the audited projects. Details of the assessment are shown in Table below.

Table 3.6 : Assessment of corruption red flags S/N Procuring Entity Pre-bid

Phase (%)

Evaluation and Award Phase (%)

Contract Management

Phase (%)

Average score (%)

1 Kinondoni Municipal Council 17 12 32 21

2 Mpanda District Council 20 11 34 22

3 Tanzania Railway Limited 22.9 14.1 27.6 21.5

4 Kibondo District Council 29.37 33.33 58.76 24.46

5 Kigoma District Council 16.45 30.43 45.1 27.93

6 Agricultural Input Trust Fund 27 22 34 28

7 Mbozi District Council 16.1 22.5 21.9 20

8 National Electoral Commission 27 28 35 29

9 Karatu District Council 22.26 32.25 34.73 30.64

Average 21.98 21.67 36.05 24.95

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3.6.8 Assessment of Corruption Red-flags for Individual audited projects

The Authority carried out value for money audit for 135 projects and used Red flags checklist to identify the level of corruption likelihood in each project. All projects which scored 20% and above on Red-flags scale in any of the phases or the three phases combined, gave an indication that corruption has been involved. Below is the table of 27 projects audited which has red flags likelihood above 20% from five (5) procuring entities. Details of the assessment are shown in Table below. Table 3.7: Assessment of corruption red flag for individual projects

NAME OF PE CONTRACT DESRIPTION

Pre-bid

Phase

Evaluation & Award

Phase

Contract Management

& Audit Phase

Average

Mpanda District Council

Tender No. LGA/099/2014/2015/W/SOL/01 for Installation of solar power at Mpanda (E) constituency in Mlele DC

27% 11% 33% 24%

Tender No. LGA/099/2014/2015/W/BLD/03 for Construction of Girls dormitory at Karema S/S in Mpanda DC

23% 11% 44% 26%

Tender No. LGA/099/2014/2015/W/RD/QT/05 for Periodic Maintanance of Mkokwa-Mnyagala road (3km) in Mpanda DC

23% 11% 45% 26%

Tender No. LGA/099/2014/2015/W/WATER/01 for Completion of construction of mechanized piped water scheme at Ngomalusambo Village

27% 11% 38% 25%

Tender No. LGA/099/2014/2015/W/WATER/03 for Construction of mechanized piped water schemes and civil works at Igagala Village

25% 11% 27% 21%

Tender No. LGA/099/2014/2015/W/RD/QT/01 for Routine Maintanance of Ikola-Isengule road (11km) and SI of

36% 11% 44% 30%

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NAME OF PE CONTRACT DESRIPTION

Pre-bid

Phase

Evaluation & Award

Phase

Contract Management

& Audit Phase

Average

Kapalamsenga-Ifume road 4km in Mpanda DC Tender No. LGA/099/2014/2015/W/WATER/02 for Construction of mechanized piped water schemes at Majalila Village

25% 11% 27% 21%

Tender No. LGA/099/2014/2015/W/RD/01 for periodic maintenance 8km and RM 10km of Mishamo Complex road

18% 10% 46% 24%

Mbozi District Council

Tender No. LGA/073/2014/2015/W/RF/28 LOT 8 for Construction of MLANGAI BRIDGE

21% 30% 12.5% 21%

Tender No. LGA/073/2014/2015/WB/01 LOT 9 for Renovation of Warehouse at NANSANA village.

14.5% 25% 25% 21.5%

Kibondo District Council

Tender No. LGA/041/2014/2015/W/RF/03 for Periodic Maintenance along Kibondo Town Roads 5km and Kibondo – Kumbanga road 4km, Routine Maintenance along Kibondo Town Roads 10km and Kibondo – Kumbanga Road 13km, Spot improvement along Kibondo – Biturana Road 5km and Construction of line dirch at Kibondo Town Council

8.33 15.00 43.75 22.92

Tender No. LGA/041/2014/2015/W/RF/05 for Periodic Maintenance along Nanenane road 3km, Routine Maintenance along Narukinga road 2km, Kilembe – Kagoti road 5km, Twabagondozi – Kilalangona 8km and Bitare – Kahambwe road 6.6km. Construction of culverts at Kibondo Town

8.33 15.00 43.75 22.92

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NAME OF PE CONTRACT DESRIPTION

Pre-bid

Phase

Evaluation & Award

Phase

Contract Management

& Audit Phase

Average

roads, Spot Improvement along Twabagondozi – Nyerenda 4km in Kibondo District Council Tender No. LGA/041/2014/2015/W/RF/09 for Periodic Maintenance along Busunzu – Mgezi road 1km, Spot Improvement along Busunzu – Kigina road 1.87km, Busunzu – Nyarulanga – Nyakabhozi road 2km, Magarama – Kigina road 2km, Routine Maintenance along Busunzu- Nyarulanga – Nyakabhozi road 8km and construction of two line culvert along Magarama – Kigina road

8.33 15.00 43.75 22.92

Tender No. LGA/041/2014/2015/W/RF/04 for Periodic Maintenance along Kibingo – Kifura road 15km, Kitahana – Mabamba road 13km, Nyaryyoba – Kigaga –Kagezi road 13km, Rusohoko – Rubalizi Road 2km, Rusohoko – Rubanga Road 1.4km, Kibingo – Nduta Road 10km. Spot Improvement along Kitahana – Mabamba road 2km and Itaba Sec – Makabuye road 8km and Periodic Manitanance along Rusohoko – Kisaka 1.1 km

8.33 15.00 43.75 22.92

Tender No. LGA/041/2014/2015/W/RF/06 for Routine Maintenance along Kichananga – Magarama Road and Construction of Bridge along Kichananga – Magarama Road

8.33 15.00 43.75 22.92

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NAME OF PE CONTRACT DESRIPTION

Pre-bid

Phase

Evaluation & Award

Phase

Contract Management

& Audit Phase

Average

Tender No. LGA/041/KDC/2014/2015/W/RF/08 for Periodic Maintenance Kigaga – Lukaya road 4km long and Routine Maintenance along Kagezi – Kigina Road 4km, Kigaga – Kagezi Road 4km, Nyaruyoba – Kumkuyu Road, Kagezi – Mikoko – Kibuye Road 8km, Nyaruyoba – Kigaga – Kigina Road 10.7 and Kumsenda – Kibuye Road 9km

8.33 15.00 43.75 22.92

Tender No. LGA/041/KDC/2014/2015/NC/11 for Revenue collections for agricultural produces

8.33 15.00 43.75 22.92

Kigoma District Council

Tender No. LGA/043/2014/2015/HQ/W/01 for Periodic Maintanance of Kamara – Nkungwa and Mahembe Nkungwe Roads

15.38 22.22 43.75 27.66

Tender No. LGA/043/2014/2015/HQ/W/01 – Lot 3 for Routine Maintanance of Mwadiga – Chankele – Mwamgongo, Mlati – Mtanga and Mgaraganza – Bweru Roads

14.29 16.67 37.50 22.92

Tender No. LGA/043/2014/2015/HQ/W/01 – Lot 2 for Periodic Maintenance of Chankabwimba – Mkongoro, Spot Improvement of Pasua Biotale and Routine Maintenance of Bitale – Bubango Roads

14.29 16.67 43.75 25.00

Tender No. LGA/043/2014/2015/HQ/W/01 – Lot 4 for Spot Improvement and Routine Maintanance of Kalinzi – Kwitanga road, Routine Maintenance of Kalinzi –

14.29 33.33 40.00 29.79

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NAME OF PE CONTRACT DESRIPTION

Pre-bid

Phase

Evaluation & Award

Phase

Contract Management

& Audit Phase

Average

Matyazo and Spot improvements of Matendo – Pamila Roads Tender No. LGA/043/2014/2015/HQ/W/3 for Construction of Iterambogo Queen Realing Centre

8.33 27.78 37.50 26.09

Tender No. LGA/043/2014/2015/HQ/W/3 for Completion of Dispensary (OPD) Matendo

8.33 22.22 33.33 22.22

Tender No. LGA/043/2014/2015/HQ/G/3 for Procurements of Iron sheets for secondary school laboratories

58.33 100.00 100.00 66.67

Karatu District Council

LGA/002/HQ/2014-2015/Q/OWS/01 for construction of public toilet at bus stand Karatu

72.73 45 72.73 63.49

LGA/002/KDC/2014-2015/NC/09 Lot 1 for revenue collection- onion

18.18 65 41.67 41.62

LGA/002/KDC/2014-2015/NC/15 for revenue collection solid waste (Karatu)

27.27 55 28.57 36.9

3.7 Verification of VfM Audit Findings in FY 2013/14

3.7.1 Introduction

During FY 2013/14, PPRA carried out contract and performance audits (value for money audits) in 205 construction contracts which were executed in 45 PEs. All these 205 construction contracts have a total contract value of 62,544,545,357.54. Throughout the audit, it was revealed that 17 PEs under LGAs made unjustifiable payments to various contractors and suppliers amounting to Tshs. 1,938,130,024.72 in fifty seven (57) construction contracts. The audited PEs with unjustifiable payments were: Kigoma District Council, Kibondo District Council, Tarime District Council, Musoma Municipal Council, Ukerewe District Council, Maswa District Council, Kishapu District Council, Mwanza City Council, Kilindi District Council, Lushoto District Council, Mkinga District Council, Bunda District Council, Butiama District Council,

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Rorya District Council, Iramba District Council, Kondoa District Council and Songea District Council. On the basis of the audit outcomes, the Technical Committee of the Board of Directors of PPRA directed that the above unjustified overpayments be verified by independent auditors. Seven (7) Professional Engineers and two (2) Quantity Surveyors were engaged for the verification exercise in specific tasks during contracts and performance audits under FY 2014/15. The following individual consultants were engaged for that assignments ; Eng. Kefa Masige was engaged to verify the audit findings at Kigoma DC and Kibondo DC; Eng. Kanuti S. Simba verified audit findings at Tarime DC, Rorya DC and Ukerewe District Council; Eng. John F. Haule verified audit findings at Maswa DC and Bunda DC; Eng. Evance Kimbi verified audit findings at Kishapu District Council; Eng. Bossa Leviticus verified audit findings at Mwanza City Council; Eng. Derick Mbanzendole verified audit findings at Songea District Council; Eng. Mkohi C. Kichogo verified audit findings at Lushoto District Council; Qs. Godwin Maro verified audit findings at Iramba District Council and Qs. Kisamo E. Fredrick verified audit findings at Kilindi DC and Mkinga DC. In addition to that three (3) PEs was verified by PPRA technical staffs namely; Eng. Ayubu Kasuwi who is also a Director of Monitoring and Compliance and two Procurement Officers who are Mr. Geofrey E. Kinagwa and Mr. Mohamed Y. Ally. PPRA team verified audit findings at Musoma Municipal Council, Butiama DC and Kondoa DC. The responsible PEs were notified on the Technical Committee’s decision and were required to inform the responsible contractors, consultants and project managers on the intended audit verifications.

3.7.2 Objective of the verification exercise The verification aimed to assess quantity of work done, quality, establishing whether there were overpayments or not, and assessing completeness of contract document. The verification also involved assessing the capacity of Council Engineer’s office to manage and supervise construction projects. The following were the specific terms of reference provided to the Consultants:

a) To visit the project sites and assess the quality as well as the quantity of work done in the presence of the Contractor’s and Client’s representatives;

b) To review the responses provided by the procuring entities and contractors on the audit findings and provide an independent professional opinion;

c) To assess the extent to which procuring entities have implemented the recommendations provided in the audit reports as far as overpayment is concerned;

d) To assess the adequacy of the contract documents used; e) To assess the capacity of the Council Engineers’ offices to supervise and

manage construction projects; and

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f) To recommend measures to be taken on the basis of the findings of the verification exercise.

3.7.3 Outcome of the Verification Exercise

During the verification, the auditors revealed noted overpayments amounting to Tshs. 377,396,034.12. The total verified overpayments were below the originally detected overpayments of Tshs. 1,938,130,024.72 due to the fact that, some of the audited projects were ongoing when they were previously audited and therefore, the overpaid items identified during the value for money audits were corrected before the verification assignment. In addition, some of the documents which were not made available to the auditors to justify some of the payments were also given to the verification auditors. Furthermore some of previous detected overpayment was deducted from contractor's final payment certificate. The table below shows the summary of the verified overpayments;

Table 3.7: Summary of verification audit findings

Procuring Entity Description of Contract

Detected Overpayment

(Tshs.)

Verified Overpayment

(Tshs.) Kigoma District council

Contract No. LGA/043/2013/2014/W/2 Lot 5 for Routine and Sport Maintenance of Pasua Bitare (13km) and Periodic Maintenance of Butare – Bubango (9.1km) Road

17,905,803.33 13,125,000.00

Contract No. LGA/043/2013/2014/W/2 Lot 1 for Routine Maintenance of Kalinzi- Kitwanga Road (19.9km) and Chakabwimba – Mkongoro 13km

9,748,333.33 22,500,000.00

Kibondo District Council

Contract No. LGA/041/2013/2014/W/02 for Periodic Maintenance and Routine Maintenance of Kibondo District Roads Package 4

29,253,274.18 8,658,000.00

Contract No. LGA/041/2013/2014/W/01/04 for Construction of Double Cell Box Culvert 2 x 4x 2 along Kumwayi and Katunguru River

42,644,600.00 16,410,000.00

Contract No. LGA/041/CTB-15/2012-2013/W/17 for Construction of Piped Water Supply and Civil Works at Kiduduye and Kagezi Villages in Kibondo District Council

352,800,000.00

No overpayment.

The project was

completed before

verification

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Procuring Entity Description of Contract

Detected Overpayment

(Tshs.)

Verified Overpayment

(Tshs.) Tarime District Council

Contract No. LGA/067/2013/2014//W/01 Package 2 for Periodic Maintenance along Kemakorere - Borega Road

6,624,600.00 Overpaid

amount was recovered

Contract No. LGA/067/2013/2014//W/01 Package 3 for Periodic Maintenance along Gwitiryo –Pemba - Kitagutiti Road

4,560,000.00 Overpaid

amount was recovered

Musoma Municipal Council

Contract No. LGA/064/2012/2013/Q/W/04 for Construction of One Block of Two Classrooms at Mwisenge Primary School

3,785,760.16 1,030,064.72

Contract No. LGA/064/2012-2013/Q/W/02 for Construction of waste Disposal Point (Ghuba), Market Butchers and Installation of 10 Televisions

1,109,803.20 442,644.00

Contract No. LGA/064/2012-2013/W/01 for periodic maintenance, spot improvement and Culverts Construction along Buhare Roads

9,749,846.00 769,100.00

Contract No. LGA/064/2012-2013/W/02 for periodic maintaenance along Nyasho – Majita, Mwisenge - Misango and Mwisenge - Majengo Roads

25,059,730.00 10,854,800.00

Ukerewe District Council

Contract No. LGA 092/2013-2014/W/RF/01 for routine maintenance along Nansio Urban Roads (9.0Km), PM along Nansio Urban Roads (4.0Km) and Nansio - Malegea Road (4.3Km)

1,329,750.00

No overpayment.

The amount

was deducted from

contractor's final payment

certificate Contract No. LGA 092/2013-2014/W/RF/02 for spot improvement along Bugombe - Namangamba - Murutunguru Road (4.0Km), spot improvement along Murutanga - Buzegwe Road (4.5Km), Namagondo - Bulamba Road (5.2Km), spot improvement along Bulamba - Musozi Road (3.0Km) and repair of Chamato box culvert

1,334,986.25

No overpayment.

The amount

was deducted from

contractor's final payment

certificate

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Procuring Entity Description of Contract

Detected Overpayment

(Tshs.)

Verified Overpayment

(Tshs.) Contract No. LGA 092/2013-2014/W/RF/03 for routine maintenance along Igalla - Selema Road (6.2Km), SI along Muhula - Kahama - Igalla Road (8.4Km), Halwego - Mukunu - Kameya Road (4.1Km), Kiozu - Busiri Road (2.7Km), Igongo - Kameya Road (3.8Km), Muriti - Itira - Ihebo Road (5.0Km) and Repair of Kahama Box Culvert

36,120.00

No overpayment.

The amount

was deducted from

contractor's final payment

certificate

Maswa District Council

Contract No. LGA/109/2012/2013/W/04/RF/07 for structures of Bushitala- Masanwa (bridges) and spot improvement of Bushitala- Masanwa Road (10Kms) and Periodic Maintenance Isagenh’he- Budekwa-Mwabaratu road (6 Kms)

19,016,000.00 4,432,250.00

Contract No. LGA/109/2013/14/W/05 for the construction of simply supported bridge and repair of solid drift along Bugarama- Masela- Wigeleko road

22,324,100.00 10,746,885.20

Contract No. LGA/109/2012/2013/W/RF/04/07 for periodic maintenance of Hinduki- Nyashimba road (12.5kms)

40,060,000.00 7,260,000.00

Contract No. LGA/109/2012/2013/CQ/W/27 for completion of Kizungu dispensary - phase one

5,738,610.00 2,237,660.00

Contract No. LGA/109/2012/2013/CQ/W/18 for renovation of Maswa Hospital Building

10,377,077.00 No overpayment

Kishapu District Council

Contract No. LGA/108/2012/2013/MwiguMbi/SEDP I/APL for completion of construction and provision of school building facilities at Mwigumbi Secondary School

60,508,850.00 4,500,000.00

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Procuring Entity Description of Contract

Detected Overpayment

(Tshs.)

Verified Overpayment

(Tshs.) Contract No. LGA/108/2012/2013/Ngofera/SEDP II/APL for completion of construction and provision of school building facilities at Ngofila Secondary School.

10,179,950.00

No overpayment.

Payment

records were verified by Auditors.

Contract No. LGA/108/2011/2012/MipaSec/C.01 for construction of Mipa Hostel

50,266,897.00 3,000,000.00

Mwanza City Council

Contract No. LGA/089/2012/13/W/9/10 for spot improvement works along MajengoMapya (0.4km) Pasiasi – Lamala (0.5km) and Periodic Maintenance Works along Kijiji- Bigbite (1km) and Breweries (0.5km)

14,669,062.00 12,828,877.95

Contract No. LGA/089/2012/13/W/11/03 for construction of stone pavement road (Lying of Stone Pavement Wearing Course) Along Sweya Road (5.3km), Ihumilo Road (0.54km), Capripoint – Maji Road (0.2km) and Nyakurunduma Road (0.5km)

147,233,200.00 106,749,892.00

Contract No. MCC/089/2012/2013/W/11 for construction of stone pavement at Capripoint – Maji (0.2km) and Nyakurunduma – Mkuyuni (0.5km) Road within Nyamagana and Mkuyuni Ward.

74,904,490.00 12,909,720.00

Contract No. MCC/089/2012/2013/W/11 for construction of stone pavement at Ihumilo (0.675km) and Sweya Road (0.53km) within Mkolani Ward

500,000.00 11,977,170.00

Contract No. MCC/089/2011/2012/W/42 for completion of 10 holes toilet block, class partition and water harvesting at Kilimani Secondary

6,278,688.00 7,118,761.12

Contract No. MCC/089/2011/2012/W/07 for construction of mother and child clinic at Utemini Area within

367,034,452.00 22,887,636.26

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Procuring Entity Description of Contract

Detected Overpayment

(Tshs.)

Verified Overpayment

(Tshs.) Mwanza City

Contract No. LGS/MCC/089/2012/2013/W/08/LOT 05 for spot improvement works along Ilemela - Mahakamani, Tank - Kitangiri and Hesawa Roads within Mwanza City

29,324,023.00 3,672,286.00

Kilindi District Council

Contract No. LGA/127/W-RF/04/2013/14 for periodic maintenance of Songe – Mvungwe – Lwande (19km) road

4,464,000.00 Under verification

Contract No. LGA/127/W-RF/01/2013/2014 for routine maintenance of Kwekivu – Ngeze (14km), Songe – Mvungwe (8km) and spot improvement of Makelele – Komsala – Kukunde Road (21km)

7,980,610.40 Under verification

Contract No. LGA/127/W-RF/03/2012/2013 for periodic maintenance of Songe Town Roads (15km)

59,925,690.00 Under verification

Contract No. LGA/127/DEV/02/2012/2013 for construction of storm water drainage along Songe Town Roads

24,011,900.00 Under verification

Lushoto District Council

Contract No. LCD.130/RF-02/2013/2014 for periodic maintenance of Lushoto Town Paved Roads 65,895,180.00

No overpayment.

Payment records were verified by Auditors.

Contract No. LCD/WMDRO/RF/2012/2013 for spot improvement on Nyasa – Hetoye Road and Brodge works at Dule

7,659,300.00 236,370.00

Contract No. LGA/LCD.130/W/MIVARF/2012/2013 for rehabilitation of Mkatoni – Kinko – Kireti – Kwai Road (15km)

73,388,000.00

No overpayment.

Payment

records were verified by Auditors.

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Procuring Entity Description of Contract

Detected Overpayment

(Tshs.)

Verified Overpayment

(Tshs.) Mkinga District Council

Contract No. LGA/133/2013-2014/WS/W/08 for construction of roof top rainwater harvesting systems for the Government offices and staff Houses at Kasera Town

3,920,000.00 Under verification

Contract No. LGA/133/2013-2014/RF/W/02 for periodic maintenance of Mwakijembe – Ngambo, Duga – Mwakikonge Roads

2,430,000.00 Under verification

Contract No. LGA/133/2012-2013/W/RF/04 for periodic maintenance of Mwakijembe – Ngambo and Duga – Mwakijembe Roads

6,274,750.00 Under verification

Contract No. LGA/133/2012-2013/W/RF/01 for construction of Bosha Bridge and Periodic Maintenance of Mianzini - Bosha Road

17,075,500.00 Under verification

Contract for periodic maintenance, routine maintenance and spot improvement of Kasera Town Roads, Stakishari – Mkinga – Kasera Jct, Stakishari – Mwandusi, Mtimbwani – Msimbazi, Kizingani – Gandikeni – Kwale and Kwale – Kichalikani roads

3,632,000.00 Under verification

Bunda District Council

Contract No. LGA/065/2013-2014/W/RF/04 for routine maintenance, spot improvement, periodic maintenance and installation of culverts on Guta - Bulamba -Kasuguti Road

10,445,000.00 1,620,000.00

Contract No. LGA/065/2013-2014/W/RF/09 for routine maintenance, spot improvement, periodic maintenance and installation of culverts on package IX: Bitaraguru - Kiwasi and Bunda - Nyasana - Kabasa Roads.

5,300,000.00 No overpayment

Contract No. LGA/065/2013-2014/W/LCDG/03 for spot improvement and installation of culverts on Bulamba - Mwiruruma Road

8,453,000.00 500,000.00

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Procuring Entity Description of Contract

Detected Overpayment

(Tshs.)

Verified Overpayment

(Tshs.) Contract No. LGA/065/2013-2014/W/RF/01 for upgrading of Bunda Town 1.35Km Road Gravel Road to Bituminous Standard

13,807,025.00 No overpayment

Butiama District Council

Contract No. LGA/BTM-DC/2013/2014/W/33 for routine maintenance and periodic maintenance along Biatika – Rwamkoma - Butiama Road.

12,542,000.00 5,756,000.00

Contract No. LGA/BTM-DC/2013-2014/W/40 for routine maintenance, spot improvement and periodic maintenance and installation of culverts along Kitaramanka – Magunga – Busegwe Road.

14,727,800.00 1,629,800.00

Contract No. LGA/BTM-DC/2013-2014/W/31: for routine maintenance and spot maintenance of Kyasuke – Ryamisanga – Masurura, Bugunga – Buruma – Kiabakari, Mwibagi – Kwigutu – Nyasirori and Nyamika – Ryamugabo – Mayani Roads.

1,915,900.00 6,610,000.00

Rorya District Council

Contract No. LGA/068/03/W/2013/2014/07 for Construction of Two Staff Houses

11,292,500.00 4,374,760.29

Contract No. LGA/068/03/W/2013/2014/07 for periodic maintenance, routine maintenance and culvert construction along Buturi - Oliyo - Buturi Road and Routine Maintenance along Buturi – Kasino & Oliyo "A" – Mariwa Shuleni Roads

1,267,254.00

Overpayment was

recovered from

contractor's pending claim

Contract No. LGA/068/03/W/2013/2014/05 for periodic maintenance, routine maintenance and culvert construction along Irienyi - Kinesi Road and Kinesi - Kibuyi Road

6,200,370.94

Verified amounted

Tshs. 4,504,068.00

was recovered by

contractor

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Procuring Entity Description of Contract

Detected Overpayment

(Tshs.)

Verified Overpayment

(Tshs.) Iramba District Council

Contract No. LGA/118/2011/12/W/WSDP/23-4; Lot No. IRAD D4 for construction of boreholes pumped scheme (pump houses, pipe network, water storage tank, water point and cattle troughs) for Iguguno sub project in Iramba District

29,099,550.00 14,827,670.00

Contract No. LGA/118/2010/11/W/WSDP/23-2: Lot No. IRAD C2 for construction of boreholes pumped scheme (pump houses, pipe network, water storage tank, water point and cattle troughs) for Kidarafa sub project in Iramba District

3,612,393.00

No overpayment

All records

were verified by Auditors.

Contract No. LGA/118/2011/12/W/01-Lot 12 for periodic maintenance of Kodarafa – Malala – Nkito; Package II: Spot Improvement; Kisuluiga – Muntamba – Nkinto; Package III: Structures; Nkalakala – Mwanga & Kisuluiga – Muntamba – Nkinto

5,650,800.00 875,000.00

Kondoa District Council

Contract No. LGA/021/RF/2012/2013/W/75/C/22 for upgrading of Kondoa Township Roads to Bitumen Standard

28,787,494.00 2,159,904.00

Contract No. LGA/021/2012/2013/W/10/049 for upgrading of Magereza Junction-Kondoa District Hospital road to double surface dressing standard

33,721,001.93 27,613,282.58

Songea District Council

Contract No. SDC/LGA/102/TN/W/12/2013/2014 for rehabilitation of Mpitimbi – Mbinga Mhalule Road.

110,293,000.00 27,082,500.00

Total (Tshs) 1,938,130,024.72 377,396,034.12

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4.0 Recommendations

4.1 On the basis of the compliance audit findings, the following is recommended;

4.1.1 All the twenty seven (27) PEs with good performance be

commended for their performance. 4.1.2 Accounting Officers and heads of PMU of the seventeen (17) PEs

with poor performance to be summoned to appear before the Board to show cause why disciplinary and legal action should not be recommended to the competent Authority. This recommendation is pursuant to the provision made under Section 20 and Section 104(2)(d) of the PPA, 2011.

4.1.3 All 53 PEs with performance below the 75% compliance target be

required to organize training to their staff on the application of PPA, Regulations and, guidelines and systems prepares by the Authority. The training should be conducted by PPRA and be tailored to each PE (or a group of PEs) depending on the weaknesses observed during the audits. The cost for the training should be met by the respective PEs. Furthermore, the AOs of the respective PEs should be required to submit plans/ strategies within three months of communicating the audit reports, aimed at ensuring full compliance to PPA and PPR.

4.1.4 As recommended in previous year, in order to address weaknesses

observed in LGAs under contracts management, collaborative capacity building strategies are required between PPRA, PMORALG, CRB and other stakeholders. The strategies should include: Strengthening the capacity of RAS offices to monitor the performance of LGAs; strengthen the capacity of Internal Audit Units in LGAs for them to audit adequately procurement issues and implementation of works contracts; strengthening the capacity of Council Engineers offices in terms of staffing, quality control equipment, and supervision vehicles/motorcycles; and strengthening the capacity of contractors in terms of technical skills, equipment, management skills; taking disciplinary and/or legal measures against fraudulent behaviours.

4.1.5 On the weaknesses observed in the implementation of PPRA’s

procurement information management systems, PPRA has assessed critically the causes for non-compliance and observed that capacity building is still required on the area of preparation and submission of procurement reports through PMIS in order to make it more user friendly to PEs.

4.2 On the basis of Value for Money audit findings, the following are

recommendations on the appropriate actions to be taken:

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4.2.1 In procuring entities where 96 audited projects were assessed to have fair performance between 50% to 75%, PEs should be required to prepare and submit to the Authority an action plan on how the entity is going to address the weaknesses observed for future improvement of procurement process. PEs in this category should also be required to request from PPRA tailor made training on PPA and its Regulations.

4.2.2 For all procuring entities in which thirty five (35) projects

equivalent to 19% of all audited projects were assessed to have unsatisfactory performance, disciplinary actions should be taken against responsible officers for projects which scored unsatisfactorily during planning, design and tender documentation; tendering process, contract administration and/or project closure and completion.

4.2.3 On unjustifiable payments made to contractors, a verification

team will be formed to carry out verification of unjustified payments observed and detailed measurements will be carried out jointly with responsible contractors, consultants, project managers and PEs representative. This is due to the fact that when project measurements were taken, contractors, consultants and project managers were not at site.

4.2.4 The accounting officers of all audited entities to be required to

implement the audit recommendations provided in the audits reports and submit to the Authority implementation status within three months after receiving the audit recommendations.

4.2.5 The accounting officer and Head of Procurement management

Unit of Tanzania Ports Authority who had failed to provide to the audit team the required documents relating to the project for construction of the proposed One Stop Center to be summoned before the Board of Directors to provide reasons for their failure to produce the required documents and to show cause why disciplinary actions should not be taken against them.

4.2.6 The audit reports for all PEs and specific projects with detected

likelihood of corruption with scores of 20% or above to be submitted to PCCB for further investigation.

4.2.7 The Paymaster General to be informed on the observed delayed payments to the contractors and the associated effects to the Government as well as contractors and be advised to take appropriate measures in order to rescue the situation.

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4.3 On the basis of verification of FY 2013/2014 audit findings, the

following is recommended:

4.3.1 On the basis of verification exercise done on detected overpayments, accounting officers of procuring entities where overpayments have been verified to be made to contractors and /or suppliers, to be directed to recover the overpaid amount. For ongoing projects, a report on the final account of the projects should be submitted to the Authority for verification.

4.3.2 To recommend to the accounting officers of PEs where

overpayments had been verified, to take disciplinary measures to officers who were responsible for measurements and approval of detected overpayments.

4.3.3 For projects with verified overpayments, where the project

managers were consultants/firms and were responsible for measurements and approval of detected overpayments, the Authority to initiate the debarment process against those consultants/firms.

4.3.4 Contractors, Engineers, Architects, Quantity Surveyors who

were involved in the verified malpractices to be reported to the relevant registration boards for professional misconduct.

4.3.5 All audited procuring entities with verified overpayments to

submit to the Authority a report on the implementation of board directives. The report should be submitted within three months after receiving the board directives

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5.0 Conclusion

Although the overall compliance is below the targeted level of 75%, it is concluded that, generally the performance of the audited PEs has improved compared to last year’s performance. However, in order to raise the compliance levels, PEs are urged to implement the specific audit recommendations provided in the audit reports. It is therefore expected that the results of these audits will be taken positively by the audited entities and considered as an opportunity for improving their performance to the required compliance level. The Authority will continue to provide training in order to address particular weaknesses related to inadequate knowledge in the application of PPA and PPR and contracts management. Finally, it should be noted that the results of these audits are based on documents which were made available for the sampled tenders and therefore do not represent the entire assessment of all the procurements in a particular entity.

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ANNEX 5 – 1: ASSESSMENT OF THE COMPLIANCE LEVEL

S/N

Inst

itutio

nal S

et u

p an

d Pe

rfor

man

ce

(10%

)

App

ropr

iate

ness

of

Prep

arat

ion

and

Impl

emen

tatio

n of

A

nnua

l Pro

cure

men

t Pl

an (A

PP)(1

0%)

App

ropr

iate

ness

of

Tend

er P

roce

ssin

g (2

0%)

App

ropr

iate

ness

of

Con

trac

t Im

plem

enta

tion

(40%

)

Rec

ord

Kee

ping

(10%

)

Impl

emen

tatio

n of

Sy

stem

Pre

pare

d by

PP

RA

(PM

IS/C

MS)

(1

0%)

Pena

lty fo

r in

appr

opri

ate

hand

ling

of

com

plai

nts

(-10%

)

Tota

l Sco

re (%

)

1 Tanzania Investment Centre (TIC)

7.12

4.30

13.04

18.00

5.80

2.00

0.00

50.62

2 Dar es Salaam Stock Exchange (DSE)

7.40

8.30

10.50

27.00

7.00

2.00 0.00 62.20

3 National Environment

Management Council 9.60

9.50

19.30

32.50

7.50

8.00

0.00

86.40

4 Dar es Salaam Maritime

Institute (DMI) 5.85

7.10

18.28

29.60

7.05

4.00

0.00

71.88

5 Tanzania Posts

Corporation (TPC) 8.20

5.35

13.95

33.25

8.50

0.00

0.00

69.00

6 Fair Competition

Commission (FCC) 9.18

6.00

15.74

28.00

8.50

2.00

0.00

69.42

7 Ocean Road Cancer

Institute 3.52

7.05

14.98

25.30

7.00

0.00

0.00

59.60

8 Tanzania Library

Services 7.15

9.00

17.75

30.50

8.50

0.00

0.00

72.90

9 State Mining

Corporation 7.26

4.83

13.25

21.00

7.00

2.00

0.00

55.63

10 College of Business

Education (CBE) 9.55

7.90

20.00

38.30

10.00

10.00

0.00

95.75

11 Gairo District council

8.66

9.50

13.90

32.50

6.00

0.00

0.00

75.86

12 Mwanza City Council

7.59

8.35

14.26

32.10

2.50

2.00

-1.00

65.80

13 PMO-LARG

9.30

9.50

14.25

30.80

5.50

4.00

0.00

73.35

14 Misungwi District

Council 7.42

3.68

13.50

27.28

2.70

0.00

0.00

54.58

15 Butiama District Council 9.44

8.64

14.95

30.73

8.50

0.00

0.00

72.00

16 Tarime District Council

7.81

8.10

16.62

23.65

9.00

2.00

0.00

67.18

17 Rorya District Council

7.97

9.20

17.11

32.88

9.00

2.00

0.00

78.16

18 Ukerewe District

Council 7.64

8.76

15.66

30.60

10.00

2.00

0.00

74.66

19 Karagwe District

Council 8.00

7.35

17.39

32.50

8.00

3.00

0.00

76.24

20 Kishapu District Council

8.12

7.65

15.20

33.10

5.00

2.00

0.00

71.07

21 Bariadi District Council

7.38

9.20

15.93

27.21

3.00

2.00

0.00

64.72

22 Maswa District Council

7.38

9.50

19.03

29.05

6.50

1.50

0.00

72.96

23 Bunda District Council

7.78

8.50

18.00

29.30

7.50

5.00

0.00

76.08

24 Muleba District Council 8.39 8.02 14.75 27.27 2.00 7.50 0.00 67.93

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S/N

Inst

itutio

nal S

et u

p an

d Pe

rfor

man

ce

(10%

)

App

ropr

iate

ness

of

Prep

arat

ion

and

Impl

emen

tatio

n of

A

nnua

l Pro

cure

men

t Pl

an (A

PP)(1

0%)

App

ropr

iate

ness

of

Tend

er P

roce

ssin

g (2

0%)

App

ropr

iate

ness

of

Con

trac

t Im

plem

enta

tion

(40%

)

Rec

ord

Kee

ping

(10%

)

Impl

emen

tatio

n of

Sy

stem

Pre

pare

d by

PP

RA

(PM

IS/C

MS)

(1

0%)

Pena

lty fo

r in

appr

opri

ate

hand

ling

of

com

plai

nts

(-10%

)

Tota

l Sco

re (%

)

25 Ushetu District Council

10.00

10.00

18.50

32.93

10.00

4.00

0.00

87.00

26 Mkalama District

Council 8.20

4.55

13.16

31.50

4.00

1.50

0.00

71.40

27 ikungi District Council 7.28

8.05

16.12

27.50

4.00

3.50

0.00

67.80

28 Mbozi District Council 7.57

4.60

9.08

18.90

8.00

0.00

0.00

50.37

29 Ilala Municipal Council 9.15

8.18

19.50

25.20

7.85

9.00

0.00

78.88

30 Kinondoni Municipal

Council 8.59

6.29

18.30

24.15

7.75

4.00

0.00 71.00

31 Nachingwea District council

8.15

7.50

15.22

27.90

6.00

0.00

0.00

64.77

32 Newala District Council

7.15

6.55

12.89

31.00

5.50

0.00

0.00

65.00

33 Kibondo District Council

6.77

5.10

15.63

22.52

5.00

2.00

0.00

57.02

34 Kigoma District Council 6.92

7.77

14.60

14.61

5.50

3.00

0.00

52.40

35 Ruangwa District Council

7.36

6.40

14.80

31.82

6.00

5.00

0.00

71.38

36 Mpanda District council

5.76

7.58

11.99

12.30

2.50

2.00

0.00

42.13

37 Nanyumbu District council

7.00

5.05

9.79

30.27

6.60

0.00

0.00

60.27

38 Makete District Council

6.61

6.50

14.25

32.00

5.50

2.00

0.00

66.86

39 Ludewa District Council

7.36

9.00

12.41

29.13

8.00

4.00

0.00

70.00

40 Namtumbo District Council

8.77

6.60

15.92

37.00

10.00

5.00

0.00

83.29

41 Songea District Council

7.90

6.60

18.45

35.00

8.00

7.00

0.00

82.95

42 Biharamulo District Council

8.00

10.00

18.75

31.00

7.00

2.00

0.00

76.75

43 Iramaba District Council 6.58

4.35

14.38

23.28

4.00

4.00

-5.00

51.59

44 Temeke District Council 9.66

9.26

15.96

29.66

7.00

5.00

0.00

78.50

45 Makambako Town Council

8.71

9.00

16.05

35.45

7.20

2.00

0.00

78.41

46 Kyela District Council

6.74

4.30

18.57

21.09

5.00

5.00

0.00

60.40

47 Karatu District Council

3.75

5.56

13.53

29.93

4.30

0.00

-10.0

48.64

48 Rungwe District Council

7.29

7.50

16.52

24.55

6.00

5.00

0.00

66.86

49 Ministry of Finance 10.00 10.00 19.15 27.85 9.00 6.00 0.00 77.50

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S/N

Inst

itutio

nal S

et u

p an

d Pe

rfor

man

ce

(10%

)

App

ropr

iate

ness

of

Prep

arat

ion

and

Impl

emen

tatio

n of

A

nnua

l Pro

cure

men

t Pl

an (A

PP)(1

0%)

App

ropr

iate

ness

of

Tend

er P

roce

ssin

g (2

0%)

App

ropr

iate

ness

of

Con

trac

t Im

plem

enta

tion

(40%

)

Rec

ord

Kee

ping

(10%

)

Impl

emen

tatio

n of

Sy

stem

Pre

pare

d by

PP

RA

(PM

IS/C

MS)

(1

0%)

Pena

lty fo

r in

appr

opri

ate

hand

ling

of

com

plai

nts

(-10%

)

Tota

l Sco

re (%

)

50 Ministry of Agriculture,

Food, Security and Cooperatives

8.13

7.50

17.40

34.75

7.50

7.00

0.00

82.28

51 Ministry of East African Cooperation

9.00

9.80

19.00

31.50

8.00

6.00

0.00

83.30

52 Ministry of Foreign Affairs ,International Cooperation

6.60

8.96

12.65

23.70

3.00

6.00

0.00

60.91

53 RAS Dar es Salaam, 9.38

9.00

16.05

31.00

7.00

8.00

0.00

80.43

54 National Land Use Planning Commission

4.30

6.50

7.47

19.00

7.00

2.00

0.00

53.00

55 Government Chemist Laboratory Agency

6.45

6.00

10.55

24.80

7.00

2.00

0.00

56.00

56 Agricultural Input Trust Fund

6.70

9.75

17.75

26.50

8.50

4.00

0.00

73.20

57 E-Government Agency

9.00

10.00

20.00

40.00

10.00

5.00

0.00

94.00

58 Commission for Mediation and Arbitration

6.71

7.55

17.71

32.25

5.00

2.00

0.00

71.22

59 Public Service Recruitment Secretariat

7.07

4.60

10.19

14.00

7.50

2.25

0.00

52.56

60 National Audit Office (NAO)

9.00

5.90

19.80

38.50

10.00

7.50

0.00

90.70

61 Vice President's office Union Affairs

7.91

8.30

15.10

22.47

7.00

2.00

0.00

62.78

62 Dar es salaam Water and Sewerage Authority

8.83

7.80

16.69

33.70

7.65

6.00

0.00

80.67

63 KASHUWASA

8.30

7.35

17.13

28.70

5.00

6.00

-2.50

69.98

64 Tanzania Insurance Regulatory Authority

8.00

8.85

15.18

26.15

7.50

10.00

0.00

75.68

65 Public Service Commission

5.18

6.65

10.75

27.50

5.00

2.00

0.00

61.00

66 Office of the Treasury Registrar

5.34

7.00

16.47

33.25

6.00

5.00

0.00

73.06

67 Tanroads Katavi

7.97

7.91

19.10

33.25

9.19

4.00

0.00

81.42

68 Tanroads Simiyu

9.45

8.92

19.45

35.25

9.75

10.00

0.00

92.82

69 Tanzania Railway Limited (TRL)

6.17

5.60

13.83

19.55

4.00

2.00

0.00

51.15

70 Dar es Salaam City Council

7.76

7.70

14.71

22.50

7.00

4.00

0.00

63.67

71 Tanzania National Park

9.80

7.96

16.31

21.70

7.50

6.00

0.00

69.27

72 RAS Morogoro

6.75

9.05

11.29

23.75

5.00

4.00

0.00

66.50

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S/N

Inst

itutio

nal S

et u

p an

d Pe

rfor

man

ce

(10%

)

App

ropr

iate

ness

of

Prep

arat

ion

and

Impl

emen

tatio

n of

A

nnua

l Pro

cure

men

t Pl

an (A

PP)(1

0%)

App

ropr

iate

ness

of

Tend

er P

roce

ssin

g (2

0%)

App

ropr

iate

ness

of

Con

trac

t Im

plem

enta

tion

(40%

)

Rec

ord

Kee

ping

(10%

)

Impl

emen

tatio

n of

Sy

stem

Pre

pare

d by

PP

RA

(PM

IS/C

MS)

(1

0%)

Pena

lty fo

r in

appr

opri

ate

hand

ling

of

com

plai

nts

(-10%

)

Tota

l Sco

re (%

)

73 National Electroral Commision (NEC)

6.42

5.50

10.13

12.90

4.50

0.00

-2.50

37.95

74 Mkwawa university college of education

8.26

9.60

18.73

35.50

5.00

8.00 0.00 86.00

75 Njombe Urban Water

Supply and sanitation Authority

7.93

7.00

14.49

30.00

8.00

2.00

0.00

69.42

76 Lindi urban water supply and sanitation Authority

6.55

7.70

14.25

22.35

8.00

1.00

0.00

59.85

77 Ras Lindi

9.10

8.53

15.81

37.18

10.00

2.00 0.00 82.62

78 National Housing

Corporation

7.15

6.43

16.13

24.71

7.80

8.00

0.00

70.22

79 Ministry of Constitution and Legal Affairs

7.15

9.42

15.75

22.50

3.00

4.00

0.00

61.82

80 Court of Appeaal/Judiciary of Tanzania

7.75

5.55

13.15

26.60

7.00

2.00

0.00

62.05

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ANNEX 5.2: NOTABLE WEAKNESSES UNDER INSTITUTIONAL SETUP

Procuring entity Audit finding STAMICO The IAU did not include procurement issues in their reports as

evidenced in their quarterly audit reports for the 1st half of the year 2014/2015 contrary to the requirement of Section 48(2) of PPA, 2011 which requires the head of internal audit of each public body to include in his quarterly audit report, a report on whether PPA 2011 and its regulations has been complied with.

Tanroads Simiyu

During the award decision for tender no. AE/001/2014-15/SMY/W/12 for major repair of Mongowako bridge along Ntinge – Mwantinge unpaved regional road, it was observed that the tender board changed the evaluation criteria by giving waiver to the requirement of minimum annual volume of T.Shs. 990 million for construction works which was set in the tender document so as to proceed with the award of tender against the recommendations of evaluation team and AO who recommended for retendering.

This is contrary to Section 75 (b) which gives power to the TB to refuse to authorize the recommendation for award the tender and refer the evaluation to PMU with instruction to re-evaluate the tenders or retendering or other action. This is also contrary to Regulation 206 (2) of GN 446 of 2013 which requires PEs to reject a tender which is not responsive to the tender document and not trying to make it responsive by correcting or withdraw the deviation or reservation.

Tanzania Investment Centre (TIC)

The TB Chairperson interfered with the powers of AO by communicating award decision for tender No. PA/065/2014/2015/HQ/NC/05 for provision of internet services at TIC HQ through letter with reference No. TIC/170/3/1-3 dated 31/10/2014 contrary to Section 41 of PPA, 2011 which requires AO to communicate award decisions. Moreover, UD interfered with the powers and functions of PMU and evaluation team by inviting three quotations from various services providers for printing official documents then make comparison as evidenced in the minute sheet dated 16th October, 2014, whereby recommendation of award of contract was made by UD to M/s Identity Promotions Limited at a contract sum of Tshs 944,000.00. This is contrary to Section 41 of PPA, 2011 which call for independence of power and functions among the procurement organs in the PE. The Budgeting Approving Authority (BAA) did not perform its functions as stipulated under Section 33(2) of PPA, 2011 by not approving APP based on budget and action plan; not reviewing quarterly procurement reports submitted by AO and by not ensuring that the organization complies with the provisions of the Act and its Regulations.

TANAPA User departments did not perform some of its responsibilities.

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Procuring entity Audit finding It did not maintain and archive contract management records, did not report timely on changes in the terms and conditions of contract by suppliers or service providers, did not prepare timely reports or updates for implementation on the on-going projects, and did not forward project details of tender amendments to the PMU for action regarding tender no.PA/037/2014-2015/HQ/G/15 – supply of staff uniform]. This is contrary to Section 39 of PPA, 2011which requires user departments to perform and observe their responsibilities.

Tanzania Railways Limited

The PE did not have a fully established Procurement Management Unit. It had a Supplies Department with five (5) members of staff supported by the store keepers, and clearing officers. The Acting Chief Supplies Manager was the head of the supplies department who in his capacity was the head of the PMU. AT the time of the audit the qualified Acting HPMU was on suspension for investigation regarding mishandling of procurements of wagons and brake van made in the year 2013. This is contrary to Section 37 of PPA, 2011 which requires PMU to be established and staffed to an appropriate level. Furthermore, the IAU did not perform its functions. No quarterly audit report was made available to the audit team so as to assess on the PE’s compliance with Regulation 48(2) of PPA, 2011 which requires the internal auditor, to include procurement issues in his quarter audit reports.

Bunda District Council

The AO did not observe the delay in signing contract within 28 days after issuance of letter of acceptance as required by Regulation 233(1) of GN. 446 of 2013 which requires AO and the successful bidder to sign the contract for the goods, works or services to be provided within 28 calendar days after fulfilling all conditions prior to signing the contract. This was observed on Tender No. LGA/065/2013-2014/W/LGCDG/03 for Construction of mortuary building at Manyamanyama district hospital whereby opening was done on 29th December, 2014, letter for acceptance was issued on 19th February, 201 and contract was signed on 24th April, 2015. Contrary to requirement of Section 74(5) of PPA 2011, PMU did make detailed review of the evaluation reports submitted by evaluation team so as to verify the report and make proper recommendation to the TB for approval of the same.

TIRA The AO did not perform most of his responsibilities. He did not request advance payment guarantee to cover 15% of advance payment amounted to Tshs. 4,275,000 issued to M/s Ardhi University regarding tender No. IE/019/2014-15/HQ/C/01 for provision of consultancy services on acquisition of TIRA HQ building; Issued letters of intention to award the tender/quotation to successful only bidders instead of all bidders who submitted the bids Reg. 231(2) of GN No. 446 of 2013. Tender No. IE/019/2014-15/N/005 for provision of

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Procuring entity Audit finding cleaning services. Furthermore the AO did not issue extension of time for contract duration as required under Regulation 111 of GN No. 446 of 2013 on contract for provision cleaning services which was extended for one month; did not approve the proposed evaluation team submitted by PMU to evaluate tender no. IE/019/2013/2014/HQ/N/02 for printing of motor vehicle insurance stickers & Tender No. IE/019/2014/2015/HQ/N/005 for Provision of Cleaning Services.

PMU did not advise properly the AO on ratification/vetting of draft contracts. All draft contracts below fifty million Tanzania Shillings were not submitted to the PE’s officer for ratifications as required under Regulation 60 of GN No. 446 of 2013 this was observed on tender no. IE/019/2013/2014/HQ/N/02. tender no. IE/019/2013/2014/HQ/N/02 contract for printing and supply of motor insurance stickers. Furthermore, no evidence was provided to justify that PMU submitted all draft contracts above fifty million Tanzania Shillings to Attorney General for vetting as required under Regulation 59 of GN No. 446 of 2013 as observed on tender no. IE/019/2013/2014/HQ/N/02 for printing and supply of motor insurance stickers.

PMU did not advice the TB on the proper method of procurement to be used regarding tender no. IE/019/2014-15/HQ/N/02 for printing and supply of motor insurance stickers. The tender advert indicated that the procurement was done through three methods (NCB/ICB/SS) which is not possible. A single tender cannot be processed using 3 different procurement methods at a time.

Muleba District Council

TB performs its responsibilities and observes independence; however, TB approved bidding documents with deficiencies. For instance in tender no. LGA/037/KGR/ML/2012-2013/W/15 for construction of piped water supply network in Katembe village and tender no. KGR/LGA/037/2012-2013/MLB/W/02 for construction of water supply network and associated appurtenances at Kyota village, the bidding documents missed technical specifications. Furthermore, PMU did not prepare comprehensive bidding documents for tender no. LGA/037/KGR/ML/2012-2013/W/15 for construction of piped water supply network in Katembe village and tender no. KGR/LGA/037/2012-2013/MLB/W/02 for construction of water supply network and associated appurtenances at Kyota village by excluding technical specifications in the bidding documents.

KASHWASA There was interference of functions between TB and AO, whereby TB whereby TB instructed the Technical Manager to

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Procuring entity Audit finding undertake post-qualification for Tender No. AE/063/2014-2015/G/4 – Lot 1, for supply of back hoe loader while knowing that the instruction should be done by the AO. This is

Kibondo District Council

Tender board did not perform some of its responsibilities. It did not approve procurement of minor value procurements amounting to 448,386,504. Contrary to Section 33(1) of PPA, 2011, which requires. The Finance and Planning committee interfered with the functions of TB during awarding of contracts. This was observed on tender for periodic maintenance along Kibondo Kumhama Road 4km; routine maintenance along Kibondo Kumhama Road 6km, Minyinya – Nyange road 9km, Samvura – Itaba road 2km, Nyabitaka – Nyakasanda road 5km, Mabamba – Kumgogo – Nyabitak Road 3km, Mambamba – Nyakasanda road 4km and Mabamba – Kilimahewa road 3km in Kibondo District Council, whereby M/s Kengele Company Ltd was disqualified and the reasons for disqualification were not minuted. The bidder was further debarred to participate in all procurements made by the council.

Kigoma District Council

User Department interfered with the functions of PMU by making procurement amounting to TZS 58,450.408.29 whereby UD Selected single source procurement method without justifiable reasons and without TB approved, contrary to Section 41 of PPA 2011 which calls for independence of functions between the procurement organs within the PE.

Ludewa DC The Accounting officer appointed a permanent inspection and acceptance committee for inspection of goods contrary to Reg. 245 of GN No. 446 of 2013 which requires the AO to form for each tender, inspection and acceptance committee for each tender that will inspect and accept the delivered goods as per contract terms. The IAU performs its internal audit activities on quarterly basis and includes procurement issues as required by Section 48 (2) of PPA, 2011 and Regulation 81 of GN No; 446 of 2013, and submit its reports to RAS, IAG and AG. However, the report were not submitted to the Authority as required under Sec. 48(2) of PPA, 2011 and Reg. 81 of GN No. 446 of 2013

Mbozi DC It was observed that the AO issued extension order for tender no. LGA/073/2014/15/W/RF/28 LOT 1,3,4,7 and did not appoint project managers for all works contract, and did issue notice of intention to awards to all bidders who participate in the procurement proceedings, for all 22 contracts. This is contrary to Section 36 of PPA, 2011 which requires AO to perform all his duties and responsibilities specified in the PPA. It was further noted that BAA did not approve the APP for Fy 2014/2015 contrary to Section 33(2) and 49(2) of PPA, 2011 and Regulation 69(9) of GN No. 446 of 2013 which requires BAA to approve APP based on budget and action plan.

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Procuring entity Audit finding User departments did not initiate their requirements for proper implementation of APP as required by Sec. 39(b) of PPA, 2011. Furthermore, UD did not report to PMU the departure of terms and condition of 9 (nine) contracts for renovation of warehouses. The time for completion for all contracts set in the contract agreement was June 2015 but to date none of the contracts has completed.

DAWASA AO did not appoint the members of the tender board as specified in the Second Schedule as required under Section 36(1)(b) of PPA, 2011; which requires AO to establish a tender board. In addition, the established PMU was not staffed to an appropriate level as it lacked technical specialists especially Engineering professionals as most of their procurements are of engineering nature. This is contrary to Section 37(1) & (2) of PPA, 2011 which requires PMU to consist of procurement staff and other technical specialists. TB did not approve bidding document and list of suppliers issued for invitation for quotations to some tenders as evidenced in tender no. AE/033/2014-2015/G/04 for supply of UPVC pipes and fittings for Kivukoni front pipeline. This is contrary to Section 33(1) of PPA, 2011 which requires TB to perform its duties and responsibilities for the procurement of goods, services, works and disposal of public assets by tender within the PE.

DMI BAA was not reviewing and approving of annual procurement plan based on PE’s budget and action plan and was not reviewing and approving quarterly procurement reports as required under Section 33 (2) (a) and (b) of PPA, 2011. The approving authority was done by the Tender Board contrary to Section 41 of PPA, 2011 which requires each procurement organ to act independently in relation to their respective functions and powers. There was an interference of functions. User department interfered with PMU functions in the contract of codification of DMI assets which was done by department of Finance and Administration as user department instead of channeling the same to PMU. This is contrary to Section 41 of PPA, 2011 whicch calls for independence of functions by the procurement organs within the PE, The IAU performs its internal audit activities and includes procurement issues as required by Section 48 (2) of PPA, 2011 and Regulation 81 of GN No; 446 of 2013. However, some of included procurement issues were not presented correctly. For instance the third quarter audit report reported that, tender no. PA/031/2014-15/G/16 for procurement of navigational equipments and materials and tender no. PA/031/2014-15/ G/17 for procurement of scientific equipment and materials were cancelled because of “ambiguous procurement method

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Procuring entity Audit finding and tender documents’’. While the cancellation which was granted a no objection by PPRA was issued on the grounds that the prices offered was far above the budget and lot no. 4 did not get any submission or response from bidders.

MFAIC Accounting Officer did not perform his responsibilities appropriately. It was noted that he did not sign contracts for all the procurement activities on behalf of the procuring entity pursuant to Section 36 (h) of PPA, 2011 and did not appoint evaluation committees and negotiation teams as required by Section 36 (e) of PPA, 2011. PMU was approving a shortlists of suppliers he requested to submit quotations and also approving method of procurement before submitting Circular Resolution to MTB to approve the quotations and recommendation of award, this was evidenced on LPO No.14000142 supply of national flags. Furthermore, the invited quotations were not publicly opened as required. In addition PMU did not perform their responsibilities for preparing tendering documents for shopping methods contrary to Section 38 (h) of PPA, 2011; did not preparing and issue contract documents contrary Section 38 (j) and (k) of PPA, 2011 and maintaining procurement records in respective contract file contrary to Section 38 (l) of PPA, 2011 and Regulation 15(1) of GN No. 446 of 2013, which requires PMU to perform all its responsibilities issued in PPA 2011.

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ANNEX 5.3 NOTABLE WEAKNESSES UNDER PROCUREMENT PLANNING

Procuring entity Audit finding STAMICO Tender processing time was not allocated properly as

required under Reg. 68(3)(4) and Eighth Schedule of GN No. 446 of 2013 which requires the timescale for each procurement to be calculated on the basis of the standard processing times prescribed in the eight and twelfth schedules. It was observed that the requirements were not properly aggregated in the APP. This was observed on tender No. 4 for supply of computer and computer accessories and Tender No. 16 for supply of copiers, printers, scanners and various related accessories including tender No. 7 for provision of communication network services (LAN) and Tender No. 8 for provision of internet services. The above is contrary to Section 49 (b) & (c) of PPA, 2011 and Regulations 72, 73 of GN No. 446 of 2013 which requires the procuring entity to aggregate its requirements wherever possible, both within the procuring entity and between procuring entities to obtain value for money and reduce procurement costs. GPN for FY 2014/2015 was not submitted to the Authority to be posted in the TPJ and Tender Portal contrary to Section 105(r) of PPA, 2011 and Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to submit GPN together with its summary to the Authority for publication in the TPJ and Tenders’ Portal.

Public Service Commission

Procurement requirements were not properly aggregated in the APP as observed on tender No.IE-002/2014-15/G/7 for communication network services and tender No.IE - 002/2014 - 15/G/8 for supply of computer software; tender No.IE-002/2014-15/G/13 for supply of computers, scanners, printers and photocopiers; tender No.IE-002/2014-15/G/14 for supply of servers, Fax machines and switch Board. This is contrary to Section 49 (b & c) of PPA, 2011 and Regulations 72, 73 of GN No; 446 of 2013 which requires the procuring entity to aggregate its requirements wherever possible, both within the procuring entity and between procuring entities to obtain value for money and reduce procurement costs.

Tanroads - Katavi

All tenders for consultancy services were not included in the APP contrary to Section 49 of PPA of 2011 and Regulations 69-75 of GN No. 446 of 2013 which requires the procuring entity to aggregate its requirements. There was no evidence to confirm that APP for FY 2014/2015 was approved by Budget Approving Authority (BAA) contrary to Sec. 33(2a) 49 (2) of PPA, 2011 and Reg. 69 (9) of GN. No. 446 of 2013 which requires the APP to be approved by BAA. It was observed that the average time used from tender

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Procuring entity Audit finding opening to contract signing for all sampled tenders (under NCT) was 153 days which is considered too long contrary to Regulation 233(1) of GN No. 446 of 2013 which requires the tender to be awarded within the bid validity period.

Tanroads - Simiyu

There was no evidence to confirm that APP for FY 2014/2015 was approved by (BAA) contrary to Sec. 33(2a) 49 (2) of PPA, 2011 and Reg. 69 (9) of GN. No. 446 of 2013 which requires the APP to be approved by the BAA.

Kinondoni MC It was observed that Tender No. LGA/017/2014-2015/G/27 for procurement of heavy equipment was planned to be procured using Single Source (SS) without enough justifiable reasons contrary to Reg. 159 of GN No. 446 of 2013 which requires all procurement under single source method to have justifiable reasons.

Mkalama DC APP was prepared but Tender processing time for all tenders were not allocated rather it was indicated “N/A” meaning Not Applicable contrary to Reg. 68(4) and eighth schedule of GN No; 446 of 2013 which requires the procuring entity to set the commencing dates and critical points of the procurement processes. GPN and its summary were not submitted to the Authority to be published in the tender portal and TPJ contrary to Reg. 18 of GN No. 446 of 2013 which requires the procuring entity to submit GPN together with its summary to the Authority for publication in theTPJ and Tenders’ Portal.

Tanzania Investment Centre (TIC)

Tender processing time were not allocated in the APP contrary to Reg. 68(4) and eighth schedule of GN No; 446 of 2013 which requires the procuring entity to set the commencing dates and critical points of the procurement processes. Tthe APP did not consolidate planned procurement. For instance; tender for provision of air tickets, conference facilities and printing of promotional materials contrary to Section 49 (b & c) of PPA, 2011 and Regulations 72, 73 of GN No; 446 of 2013 which requires the procuring entity to aggregate its requirements wherever possible, both within the procuring entity and between procuring entities to obtain value for money and reduce procurement costs. The APP was not approved by the Budget Approving Authority contrary to Sec. 33(2a) 49 (2) of PPA, 2011 and Reg. 69 (9) of GN. No. 446 of 2013 which requires the APP to be approved by budgeting approving Authority The PE did not prepare the GPN as required under Regulation 70 of GN No. 446 of 2013 which requires the procuring entity to prepare it annual procurement plan as

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Procuring entity Audit finding part of budget process and submit to the Authority within fourteen days after completion of budget process TIC implemented 12 out of 33 planed procurement for FY 2014/2015 contrary to the requirement of Section 49(3) of PPA, 2011 & Reg. of GN. No. 446 of 2013 which requires the procuring entity to observe the approved annual procurement plan and ensure that any unplanned/change of planned procurement obtain prior written approval of the accounting officer

Vice President’s Office Vice President’s Office

12 tenders out of 17 tenders planned for procurement during the FY 2014/2015 were not implemented contrary as per Section 49(3) of PPA, 2011 & Reg. of GN. No. 446 of 2013 which requires the procuring entity to observe the approved annual procurement plan and ensure that any unplanned procurement obtain prior written approval of the accounting officer.

Misungwi DC Tender processing times for all categories were not allocated appropriately contrary to Reg. 68(4) and eighth schedule of GN No; 446 of 2013. [The APP was incomplete and in conflict with the standard templates (internal, external and submission to PPRA) for G, W NCS,D and three templates for CS] which requires the procuring entity to set the commencing dates and critical points of the procurement processes. There was no adequate aggregation of requirements in the APP contrary to Section 49 (b & c) of PPA, 2011 and Reg. 72, 73 of GN No; 446 of 2013. [The APP was incomplete and in conflict with the standard templates (internal, external and submission to PPRA) for G, W NCS,D and three templates for CS] which requires the procuring entity to aggregate its requirements wherever possible both within the procuring entity and between procuring entities to obtain value for money and reduce procurement costs. GPN was not submitted to PPRA for publication in TPJ and Portal contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare and submit its annual procurement plan and submit it together with its summary to the Authority for publication in the Journal and Tenders Portal.

Mwanza City Council

GPN was not submitted to the Authority for publication in the Tender portal or TPJ contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare its annual procurement plan and submit it together with its summary to the Authority for publication in the Journal and Tenders Portal.

Mpanda DC There was no evidence to confirm that APP for FY 2014/2015 was approved by budget approving authority contrary to Sec.

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Procuring entity Audit finding 33(2a) 49 (2) of PPA, 2011 and Reg. 69 (9) of GN. No. 446 of 2013 which requires the APP to be approved by budgeting approving Authority

Tanzania Railways Limited

The PE did not prepare the APP for external use nor for submission to PPRA contrary to the requirement of Section 49 of PPA, 2011 and Regulation 70 of GN No. 446 of 2013 which requires the procuring entity to prepare its procurement plan as part of the budget process and submit to the Authority within fourteen days after completion of budget process. GPN was not submitted to the Authority for publication in the Tender portal or TPJ contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare its annual procurement plan and submit it together with its summary to the Authority for publication in the Journal and Tenders Portal. The APP was not implemented efficiently as evidence by the implementation of the APP for the period between tender opening and contract signing for Tender No. PA/113/2014/G/33 whereby 285 days were spent which was 2.85 times than the maximum time allowed stipulated under the eighth schedule of GN No. 446 of 2013 which requires the tender to be done within the time stipulated in the eighth schedule

Kishapu DC The Council did not prepare the G.P.N as per Section 49 of PPA 2011 and Regulation 18 & 70 446 of 2013 which requires the procuring entity to prepare and submit its annual procurement plan and submit it together with its summary to the Authority for publication in the Journal and Tenders Portal.

Ikungi DC The following tenders were not included in the APP for instance tenders for rehabilitation and construction of classrooms contrary to Section 49 (b & c) of PPA, 2011 and Reg. 72, 73 of GN No; 446 of 2013 which requires the procuring entity to aggregate its requirements wherever possible both within the procuring entity and between procuring entities to obtain value for money and reduce procurement costs.

UWASA - Njombe

GPN was not submitted to the Authority for publication in the Tender portal or TPJ contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare its annual procurement plan and submit it together with its summary to the Authority for publication in the Journal and Tenders Portal.

Bunda DC The following tenders were done without being included in the APP; tender No. LGA/065/2014-2015/W/ASDP/02 for Construction of District Agricultural Office PHASE II contrary to Section 49 (b & c) of PPA, 2011 and Reg. 72, 73 of GN No; 446 of 2013 which requires the procuring entity to aggregate its requirements wherever possible both within the procuring

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Procuring entity Audit finding entity and between procuring entities to obtain value for money and reduce procurement costs.

Maswa DC The time used from tender opening to contract signing was not adequate. For instance tender No. LGA.109/2014/2015/W/01 for Routine Maintenance of Hinduki-Mwaka Road (11km), Hinduki – Nyashimba Road (13km), Periodic Maintenance of Hinduki – Mwafa Road (1km) and Spot Improvement of Nyashimba – Mwang’holo Road (6.9km) whereby opening was on 26th Sept, 2014 letter of acceptance was given on 1st Dec. 2014 and proper contract signing dated 2nd Feb. 2015. Hence 35 additional days were observed from the stipulated date of signing the contract.

Karagwe DC The PE did not use appropriate tender numbering as issued by PPRA as per issued guideline by the Authority which requires the procuring entity to make possible use of tender numbering system issued by the Authority, while preparing APP’s.

The PE did not aggregated all its requirements in accordance with Section 49 (b & c) of PPA, 2011 and Reg; 72, 73 of GN No; 446 of 2013 which requires the procuring entity to aggregate its requirements wherever possible both within the procuring entity and between procuring entities to obtain value for money and reduce procurement costs.

APP was not adhered. Only a quarter of all projects were implemented in FY 2014/2015 contrary to the requirement of Section 49(3) of PPA, 2011 & Reg. of GN. No. 446 of 2013 which requires the procuring entity to observe the approved annual procurement plan and ensure that any unplanned procurement obtain prior written approval of the accounting officer

TIRA TIRA did not use appropriate APP templates issued by the PPRA. Various parts were missing for instance; contract value/budget, intention to award, notification of award, vetting/ratification of the contract by AG/Legal Officer, contract signing and a colum for Plan Vs Actual. The PE used appropriately tender numbering except there some tenders which had same identical numbers for instance; Qn. No. IE/019/2014-15/HQ/G/001 and IE/019/2014-15/HQ/G/01, IE/019/2014-15/HQ/N/001 and IE/019/2014-15/HQ/N/01 The PE did not allocated appropriately the tender processing time within the bid validity period contrary to Reg. 68(4) and eighth schedule of GN No 446 of 2013 which requires the procuring entity to set the commencing dates and critical points of the procurement processes. This was observed on procurement under which Example; Quotation method indicated that from invitation to bid closing - opening the tender should take between 17 days and 33 days instead of 4

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Procuring entity Audit finding or 8 days.

Tarime DC GPN was not submitted to the Authority for publication in the Tender portal or TPJ contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare its annual procurement plan and submit it together with its summary to the Authority for publication in the TPJ and Tenders Portal.

Ukerewe DC GPN was not submitted to the Authority for publication in the Tender portal or TPJ contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare its annual procurement plan and submit it together with its summary to the Authority for publication in the TPJ and Tenders Portal.

KASHWASA There was no evidence to confirm that APP for FY 2014/2015 was approved by BAA contrary to Sec. 33(2a) 49 (2) of PPA, 2011 and Reg. 69 (9) of GN. No. 446 of 2013 which requires the APP to be approved by BAA.

Kibondo DC The PE did not aggregated all its requirements contrary to Section 49 (b & c) of PPA, 2011 and Reg; 72, 73 of GN No; 446 of 2013 which requires the procuring entity to aggregate its requirements wherever possible both within the procuring entity and between procuring entities to obtain value for money and reduce procurement costs. GPN was not submitted to the Authority for publication in the Tender portal or TPJ contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare its annual procurement plan and submit it together with its summary to the Authority for publication in the Journal and Tenders Portal. APP was not adhered. Only a quarter of all projects were implemented in FY 2014/2015 contrary to the requirement of Section 49(3) of PPA, 2011 & Reg. 69(9) of GN. No. 446 of 2013 which requires the procuring entity to observe the approved annual procurement plan and ensure that any unplanned procurement to obtain prior written approval of the accounting officer.

Kigoma DC GPN was not submitted to the Authority for publication in the Tender portal or TPJ contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare its annual procurement plan and submit it together with its summary to the Authority for publication in the Journal and Tenders Portal. APP was not adhered. Only 10 out of the planned 23 projects were implemented contrary to the requirement of Section 49(3) of PPA, 2011 & Reg. 69(9) of GN. No. 446 of 2013 which requires the procuring entity to observe the approved annual procurement plan and any unplanned/change procurement should get a prior written approval of the accounting officer

Makete DC GPN was not submitted to the Authority for publication in

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Procuring entity Audit finding the Tender portal and TPJ contrary to Regulation 18 of GN No. 446 of 2013 which requires the procuring entity to prepare its annual procurement plan and submit it together with its summary to the Authority for publication in the TPJ and Tenders Portal. It was observed that tender numbering was not in line with PPRA’s guideline. There was repetition of tender numbering in the same category for the following tenders; LGA/028/2014 - 2015/B/W/02 Vs LGA/028/2014 - 2015/W/02; LGA/028/2014 - 2015/W/03 Vs LGA/028/2014 - 2015/W/03 and LGA/028/2014 - 2015/W/04 Vs LGA/028/2014 - 2015/W/04.

Mbozi DC APP for submission to PPRA were not prepared by the PE as required under Section 105(r) of PPA, 2011 and Reg. 18 of GN No. 446 of 2013 which requires the procuring entity to prepare and submit its annual procurement plan and submit it together with its summary to the Authority for publication in the TPJ and Tenders Portal. Procurements for FY 2014/2015 did not fully adhere to the approved (issued) APP. Only 40% of the planned tenders were implemented. In addition, 13 contracts for renovation of warehouses were implemented while they were not in the approved APP contrary to section 49(3) of PPA, 2011 & Reg. 69(9) of GN. No. 446 of 2013 which requires the procuring entity to observe the approved annual procurement plan and any unplanned/change procurement obtain prior written approval of the accounting officer

DAWASA The PE did not prepare the templates for internal, external and submission to PPRA as per Section 105(r) of PPA, 2011 and Reg. 18 of GN No. 446 of 2013 which requires the procuring entity to prepare and submit its annual procurement plan and submit it together with its summary to the Authority for publication in the TPJ and Tenders Portal.

Dar es laam Marine Institute

The APP was not approved by the BAA as provided under Section. 33(2) (a), 49 (2) of PPA, 2011 and Reg. 69 (9) of GN. No. 446 of 2013 which requires the APP to be approved by BAA.

Newala District Council

103 tenders for works were not properly aggregated into Lots including 17 tenders for good and 7 tender for Non - Consultancy services.In addition, works were given wrong identification tender numbering. Tender No. LGA/087/W/2014/2015/47 for purchase of hospital equipment which should belong to goods category. In addition various procurements were planned to be done through GPSA while the procurement belong to goods category. For instance tender No. LGA/087/W/2014/2015/45 “ununuzi wa vifaa vya ufugaji nyuki”; tender for procurement ambulance amounting to Tsh.

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Procuring entity Audit finding 200,000,000. The anomalies observed were contrary to the requirement of Section 49 (b & c) of PPA, 2011 and Reg. 72, 73 of GN No; 446 of 2013 which requires the procuring entity to aggregate its requirements wherever possible both within the procuring entity and between procuring entities to obtain value for money and reduce procurement costs.

The GPN was not submitted to the Authority to be published in the TPJ contrary to Section 105(r) of PPA, 2011 and Reg. 18 of GN No. 446 of 2013 which requires the procuring entity to prepare and submit its annual procurement plan and submit it together with its summary to the Authority for publication in the TPJ and Tenders Portal.

Nanyumbu District Council

No evidence to authenticate that the Council had submitted the summary of GPN to the Authority to be posted in the TPJ and website contrary to Reg. 18 of 2013 which requires the procuring entity to prepare and submit its annual procurement plan and submit it together with its summary to the Authority for publication in the TPJ and Tenders Portal.

The APP indicated that 65 tenders under different categories like goods, works, and non-consultancy services were to be done under the financial year 2014/2015. However, less than 55% were implemented due to un-availability of funds from the Central Govt. although the APP was not updated to include those changes.

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ANNEX 5.4: NOTABLE WEAKNESSES UNDER TENDER PROCESS Procuring entity Audit finding Tanroad Simiyu The standard tender documents issued by PPRA was not

properly filled due to missing important information on contract period and completion date which is contrary to the standard template included in the tender /contract documents. This contravened Regulation 184(3)& (4) of GN No. 446 of 2013 which requires any change to the standard tender documents to be introduced only through tender data sheets, or through special condition of contract.

Mwanza City Council

During auditing it was evidenced that no appointment of the negotiation teams and approval of the same by the AO were made, contrary to Sec.76 (1) of PPA, 2011 and Reg. 226 of GN. No. 446 of 2013 which requires PMU to recommend membership of a negotiation team based on appropriate seniority and experience depending on the value and complexity of the procurement and the same to be approved by the accounting officer. In addition, no evidence was provided to justify that TB approved negotiation plan and its minutes. For instance the tender price for tender no. LGA/089/2013/2014/W/03 for piped system and civil works for Fumagila villages was reduced from Tshs 832,162,260 to Tshs 705,222,254, but no negotiation minutes were provided to justify the agreement on this reduction. This is contary to Sec. 76 of PPA, 2011 and Reg. 227 and 228 of GN No. 446 of 2013 which requires the negotiation team to produce minutes of the meeting and obtain the tenderer’s written agreement on the accuracy of the record of the negotiations held and submit the minutes to the PMU for TB approval.

Mpanda District Council

With the exception for tender for constructions of irrigation scheme at Mwamkulu village, there was no evidence to attest that UDs initiated procurement process and forwarded them to PMU contrary to Section 39(1b) of PPA of 2011, which requires the user department to initiate procurement and disposal by tender requirements and forward them to the PMU. During auditing, there was no evidence that the issued invitations and tender documents were approved by appropriate TB) for goods, works consultancy services, non-consultancy services and disposal of assets by tender, contrary to Reg. 181 (3), Reg. 280(2) and Reg. 332(2) of GN No. 446 of 2013 which requires the procurement management unit to table to tender board, the invitation and the disposal by tender documents, for comment and approval, before inviting the tenders and issuing the tender documents to bidders.

Tanzania Railway Ltd

The evaluation was not done as per criteria set in the tender documents as evidenced on tender no. PA/113/2014/G/49,

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Procuring entity Audit finding PA/113/2014/G/33; PA/113/2014/G/34, and PA/113/2014/G/51 whereby the criteria set in the tender documents were not applied during the evaluation contrary to Section 74 of PPA 2011 and Regulation 202 (3 &4) and 203 of GN No. 446 of 2013 which requires the tender evaluation to be consistent with the terms and conditions prescribed in the tender documents and the evaluation to be carried out using criteria explicitly stated in the tender documents. It was noted that most of the tenders were not awarded within the tender validity period as evidenced on Tender No. PA/113/2014/G/43. This is contrary to Regulation 62,192 and 232(2) of GN No. 446 of 2013 which requires the award of tender to the successful tenderer to be within the tender validity period.

Ikungi District Council

Only one record showed confirmation of funding by the AO on Tender No. LGA/IDC/2014/2015 for rehabilitation or extension of water supply scheme at Makiungu and Unyaghumpi villages Phase III. The remaining six procurements of works have no documentary evidence on confirmation of funding by AO contrary to Sec. 36(1) (d & g) of PPA, 2011 which requires accounting officer to approve all procurement opportunities and certifying the availability of funds to support the procurement activities. All the evaluation reports contained code of conduct only, other attachments such as copy of tender notice, opening checklists and minutes of tender opening ceremony were not attached contrary to Reg. 199(3) of GN No. 446 of 2013 which requires all tenders that are accepted and opened copy of its records of tenders received and copy of those persons attending the opening meeting, to be provided to the respective evaluation committee for evaluation.

Public Services Recruitment Secretariat

The AO did not issue notice of intention to award contracts to all bidders who participated in the tenders as per Sec. 60(1, 2 &3) of PPA, 2011 and Reg. 231(2) of GN. No446 of 2013 which requires the accounting officer, within three days, after satisfied himself that proper procedures have been followed to issue a notice of intention to award the contract to all tenderers who participated in the tender giving them fourteen days to submit a complaint.

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Procuring entity Audit finding Muleba District Council

Most of the tenders were awarded within tender validity period with the exceptions of tender no. LGA/037/KGR/2014-2015/MLB/RDF/W/09 Lot 11 for routine maintenance of Kamishango - Nyawaibaga 21km and periodic maintenance of Kamishango - Nyawaibaga 5km and LGA/037/KGR/2014-2015/MLB/CDG/W/31 for construction of District Council fence Phase II at Muleba head office which were awarded beyond the tender validity period. This is contrary to Regulation 62, 192 and 232(2) of GN. No. 446 of 2013. which requires the award of tender to the successful tenderer to be made within the tender validity period.

Ukerewe District Council

The following tenders were evaluated without following the criteria stated in the tender document: LGA/092/2014-2015/W/RF/05, for the periodic maintenance along Hospital Road 0.59 km, Airport road 2.72 km, Namalebe road 1.7 km and construction of Culvert along UA Waridi; Tender No. LGA/092/2014-2015/W/RF/03 for the Periodic Maintenance and spot Improvement along Bukindo – Murutunguru Road 7.2 km; tender No. LGA/092/2014-2015/W/RF/01 for the Routine Maintenance along Kakukuru – Mwaloni Road 1.4km, Nakamwa – Kitanga Road 4.7km, Lutare – Chamuhunda road 6.8km, Busangu – Mugu road 6.5km, Selema – Igalla road 6.2km, Halwego – Buhima road 3.0km and construction of two box culvert along Muriti – Ihebo and Muhula – Igalla road. This is contrary to Section 74 of PPA 2011 and Regulation 202(3 & 3) and Reg. 203 of GN. No. 446 of 2013 which requires the tender evaluation to be consistence with the criteria set in the tender documents. The following tenders were awarded outside bid validity period: Tender no. LGA/092/2014-2015/W/RF/05 for periodic maintenance along Hospital Road 0.59 km, Airport road 2.72 km, Namalebe road 1.7 km and construction of culvert along UA Waridi (174 days after expiration of bid validity period which was set at 120 days) and tender no. LGA/092/2013-2014/W/CDG/05 for proposed construction of three staff houses at Bwisya in Ukara Island (140 days after expiration of bid validity period which was set as 30 days). This is contrary to Regulation 62, 192 and 232(2) of GN. No. 446 of 2013 which requires the award of tender to the successful tenderer to be made within the tender validity period.

Kahama Shinyanga Water Supply & Authority

The following errors were not communicated to bidders for their confirmation which were observed on tender no. AE/063/2013/2014/W/5- Lot 2 for extension of water transmission network to three villages ( Lyabusalu, Mwajiji and Ichingo Villages). During evaluation of arithmetic errors M/s FEMA was identified with an error of TZS -9,780,000 and M/s Halem Construction Co. Ltd was identified with an error

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Procuring entity Audit finding of TZS +9,440,000. In addition the evaluation team did not specify the areas in the BOQ where the above errors were detected. The tender No. AE/063/2013/2014/W/5- Lot 2 for extension of water transmission network to villages (Lot 2: Lyabusalu, Mwajiji and Ichingo Villages) - During bid comparison and ranking the bid price for M/s FEMA BUILDERS LTD – the price comparison was evaluated as VAT exclusive, while other firms were evaluated with criteria of VAT inclusive. Hence unfair treatment of bidders.

Kigoma District Council

The Procurement of iron sheet from M/S Alaf amounting to TZS 58,450.408.29 did not follow appropriate procurement methods as it was made through single source method and there were neither justification for method used nor approval of the Tender Board for the same. The procurement was also done by the User Department without channeling the same to PMU. During evaluation of bid for tender no. LGA/043/2014/2015/HQ/W/01 – Lot 1 for periodic maintanance of Kamara – Nkungwa and Mahembe Nkungwe Roads - tender no. LGA/043/2014/2015/HQ/W/01 – Lot 1 for periodic maintanance of Kamara – Nkungwa and Mahembe Nkungwe Roads - the evaluation team indicated that only bidder No.1 M/s Hafrim Construction Co. Ltd had an arithmetic error of TZS 22,071,000 which made the new bid price to be TZS 88,936,000. No evidence was availed to attest that M/s Hafrim Co. Ltd confirmed its arithmetic error. In addition, no arithmetic error was detected to Bidder No. 6 M/S Buyenzi General Supplies Ltd. However during detailed examination of bid and price comparison for the bid submitted by M/s Buyenzi whose bid price was TZS 86,786,000, an arithmetic error of TZS 16,163,500 was introduced by the evaluation team which made the bid price to read TZS 102,949,500. This arithmetic error for M/S Buyenzi was not supported by any findings from the evaluation team and it was also not confirmed by the bidder. Hence the evaluation was bias.

Makete District Council

All specific tender notices were not submitted to the Authority for publication in the TPJ and Authority’s website as required under Sec. 68(2) of PPA, 2011 and Reg. 19 of GN No. 446 of 2013 which requires a procuring entities to prepare a tender notice for national and international tenders and submit the same to the Authority for publication in the journal and tenders portal.

Dar Es Salaam Water & Sewerage

The data sheet for tender no. AE/033/2013-2014/W/14 for extension of DAWASA office building and block wall fence at Mwananyamala, was not properly filled on the requirement

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Procuring entity Audit finding Authority (DAWASA)

for response of request to clarification. The amendments of tender document on Tender Data sheet ITT 8.2 was amended indicating that period to respond to request for clarification by PE is 14 days which is contrary to Regulation 13(2) of GN no 446 of 2013 which requires a PE to communicate in writing to all tenderers to which the procuring entity within three working days has provided the solicitation documents without identifying the source of the request so as to enable the tendrers to take into account the clarification received in the preparation of their tenders.

Fair Competition Commision

It was observed that four tenders were annulled without evidence of seeking approval from the Authority prior to rejecting tenders or proposals. This was observed on tender numbers IE/026/2013-14/HQ/C/09 for provision of consultancy services for preparation of risk policy for the PE; tender No. IE/026/2013-14/HQ/NC/07 for provision of medical insurance and group life assurance services to staff of FCC; tender No. IE/026/2014-15/HQ/C/05 for provision of consultancy services for review of and updating of financial regulations of FCC and tender number IE/026/2014-15/HQ/C/09 for provision of consultancy services for designing, installation and commissioning of procurement management information system software.

National Electoral Commission

The specifications and TOR were being prepared by UD and the same were not harmonized to ensure that there is elimination of all discriminatory practices. For instance in tender no. IE/018/2012-13/HQ/G/19 for supply of Biometric Voter Registration Kits which had been continuing from previous FY 2013/2014 specification and service level agreement were discriminatory and favoured one bidder, such as specification for camera were similar to those provided in the brochure attached by one of the bidders. In addition, tender number IE/018/2013-14/HQ/W/01 for renovation works for saver room at NEC processing centre, the design and specification did not accommodate wiring and electrical equipment and installation of AC which was a crucial item.

Ministry Of East Africa Cooperation

Tender no. ME/027/2014/15/NC/09 for internet and email connection services did not follow procurement procedure instead single source procurement method was used therefore: standard tender documents were not used; The tender was not advertised; opening procedures were not followed; evaluation procedures were not followed; and its contract was prepared by the service provider instead of the PE.

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Procuring entity Audit finding Tanzania Library Service Board

The AO did not issue notice of intention to award contracts to all bidders who participated in the tenders contrary to Section 60(1, 2 &3) of PPA, 2011 and Reg. 231(2) of GN. No446 of 2013 which requires the accounting officer within three days, after satisfied himself that proper procedures have been followed to issue a notice of intention to award the contract to all tenderers who participated in the tender giving them fourteen days to submit a complaint.

Dar Es Salaam City Council

The solicitation document for tender no. LGA/018/2014/2015/NCS/10 for provision of canteen services provided conflicting information in the BDS and SCC leading the bidders to submit both the bid security and tender securing declaration while it was the securing declaration which was required in the particular procurement.

NEC TB did not ensure that the evaluation reports had been critically reviewed by its secretariat before adjudication, contrary to Section 75 of PPA 2011 and Reg. 57(3) of GN No. 446 of 2013,which requires the TB to review the evaluation and recommendation made by PMU before its decision. For instance in Tender No. IE/018/2014-2015/HQ/G/10 for Supply of Elections Stationeries, Packing Materials, Indelible Ink, Lantern Lamps, Alkaline Dry, Batteries, Tamper Proof Envelops, Polling Booths, T-shirts, Caps, and Bags, Ballot Boxes and Ballot Boxes Seals for 2015 General Election During the review of evaluation report, it was noted that the tender document issued to bidders required bidders to submit sample for seal with purple and red in colour. It was noted that Bidder No.5, M/s Uniprint was approved while its sample for Lot No.4 did not comply to technical specifications provided in the bidding documents. Bidder No. 9,M/s Darworth Ltd was approved while its sample for seals were blue and orange in colour instead of required of purple and red colours. Bidder No. 14 M/s Nshau Trading Co. Ltd who quoted for Lot 1 which required sample for packing materials to be submitted and tested to destruction did not comply to the requirement but the evaluation team marked it as N/A in their report and recommended the bidder for award. Likewise, Bidder No. 19,M/s Delfina Eco Tourism Promotion Ltd and Bidder 23,M/s SAS International were rejected due to the reason that the bidders submitted a sample seal which was not a purple in colour, while M/s Darworth had the same anomaly but was approved for award.

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ANNEX 5-5: NOTABLE WEAKNESSES UNDER CONTRACTS

MANAGEMENT Procuring Entity

Audit finding

Mkalama District Council

Project Supervisors for works contracts were appointed, however, they were appointed by District Engineer instead of AO. This is contrary to Reg. 252 of GN No. 446 of 2013 which requires the project supervisor to be appointed by the Accounting Officer to supervise the projects implementation.

Inspection and acceptance committees were appointed on permanent basis to inspect goods delivered contrary to the requirement of Reg. 245 of GN No. 446 of 2013 which requires the AO to appoint inspection and acceptance committees to inspect delivered goods.

Payment certificates were not attached with inspection and acceptance reports or Goods Received Note contrary to Reg. 248, 243(2) and 242(1) of GN No. 446 of 2013 which requires the procuring entities to authorize payments by measurement and certification.

Tanzania Investment Center

The AO did not appoint project supervisor to supervise works projects and non consultancy services contrary to Reg. 252 of GN No. 446 of 2013 which requires the project supervisor to be appointed by the Accounting Officer to supervise the implemented projects. Contract no. PA.065/2013/204/HQ/CN/03 for provision of office cleaning, ground maintenance and waste disposal and contract for provision of security service at Mbeya zone office, had expired on March 2014 and September 1st, 2011 respectively. However no extension was granted by AO contrary to Section 77(3) of PPA, 2011 and Reg. 111 of GN No. 446 of 2013 which requires the AO to extend the contract duration before expiry and state the reasons for granting such extension. No progress reports were prepared by the project manager or supervisor as required by Reg. 243(1&3) of GN No. 446 of 2013 which requires the procuring entity to monitor the service provider or contractor’s performance against the statement of requirements or schedule of works stated in the contract by means of daily, weakly or monthly reports from the procuring entity’s supervisor responsible for services or works. The AO had appointed inspection and acceptance committees for only one tender namely Tender No. PA. 65/2014/2015/HQ/G/03 for supply of desktop computers, laptops and printers contrary to the requirement of Regulation 245 of 2013 which requires the AO to appoint inspection and acceptance committees to inspect and count the goods in order to ascertain whether they are correct and complete in accordance with the agreement. Users/supervisors/project managers did not certify payment before being effected to supplier/service provider for all reviewed

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Procuring Entity

Audit finding

tenders, contrary to the requirement of Section 39(1f) of PPA, 2011 and Reg. 248 and 252(2) of GN. No. 446 of 2013 which requires project supervisor to manage the work and prepare and submit to the Accounting Officer performance report on monthly basis or within the period prescribed by the accounting officer. Payment were not attached with the inspection and acceptance reports contrary to Reg. 248, 243(2) and 242(1) of GN No. 446 of 2013 which requires the PE to ensure that payment is made in accordance with the work done or goods delivered.

Vice President Office

It was observed that site management meetings were not held and records were not prepared in accordance with the terms and condition of the signed contract. There was no evidence of appointment of project supervisor to supervise works projects and non consultancy service contrary to Reg. 252 of GN No. 446 of 2013 which requires the Accounting Officer to appoint project supervisor to supervise the projects implemented. Works and non consultancy services were not attached with measurement sheets / progress report before payment is effected contrary to Reg. 248, 243(2) and 242(1) of GN No. 446 of 2013 which requires the PE to ensure that payment is made in accordance with the measurement of work done or goods delivered.

Ocen Road Cancer Institute (ORCI)

Contract signed in the FY 2014/15 (below Tshs 50 M) were vetted by PE’s Legal officer but all contract above Tshs 50M were not subtmitted to AG for vetting contrary to Reg. 59 of GN No. 446 of 2013. This was evidenced on contract no.PA/010/2014/15/N/6 for provision of cleaning service for new Hospital Building which have a contract price of Tsh 60,134,787.00 per year. Out of 15 projects qualified for the appointment of project manager/supervisor only five (5) projects that is provision of security services; ground maintenance; disposal of public assets; gardening services and Cleaning services of new hospital building had project managers, the remaining 10 projects did not have managers/supervisors contrary to Reg. 252 of GN No. 446 of 2013 which requires the Accounting Officer to appoint project supervisors to the supervise projects implemented. Payment for all contracts were not made within reasonable time as stated in the contract and as stipulated in Reg. 242(1) and 243(2, 3, 4, 5, 6&7) of GN No. 446 of 2013 which requires payments to contractors/service provider or suppliers to be made on time.

Ilala Municipal council

It was noted that average time from issue of Letter of Acceptance to site possession for all tenders was 60 days which is considered long. None of the reviewed works contracts were completed timely as stated in contract agreement. In some cases time extensions were granted without basing on the contract requirements contrary to contract provisions and Section 77(3) of PPA, 2011 and Reg. 111 of

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Procuring Entity

Audit finding

GN No. 446 of 2013 and which requires the Accounting Officer to state the reason for granting time extension order. Appropriate actions were not taken to delayed contracts as required by the contract provisions and Section 77(4) of PPA, 2011 and Reg. 112 and 322 of GN No. 446 of 2013 which requires the procuring entities to institute liquidated damge for all delayed contract. Works projects required the contractor to submit updated work programmes but none of the contractors complied with this requirement as required in the contract agreement. Project progress reports were not prepared by the Project Supervisor and presented during the management meetings contrary to Reg. 243(1&3) of GN No. 446 of 2013 which requires the project supervisor to prepare progress report of project implemented and submit the same to the Accounting Officer

TANROADS Katavi

It was observed that all sampled works contracts specified that contractors should provide performance security in form of bank guarantee or bond equivalent to 10% of contract price. However, none of the contractor submitted timely as required. This is contrary to the requirement of the Letter of acceptance (LoA) which required them to submit the same within 28 days of receiving the letter of award/acceptance. All works projects required the contractors to submit updated work programmes after 30 days, but none of the contractors fully complied with this requirement. Moreover, the Project Manager did not revert clauses in the contract to withhold 0.1% of the contract price for failure to submit updated work programmes. Inspection and acceptance committees for procuremet of goods were not approinted contrary to Reg. 245 of GN No. 446 of 2013 which requires the Accounting Officer to appoint inspection and acceptance committee to inspect and count the delivered goods .

The Project Manager delayed certifying payments to the contractors contrary to Clause 45.2 of GCC and Section 39(1)(f) of PPA of 2011 & Reg. 248 and 252(2) of GN. No. 446 of 2013 which requires the project supevisors to inspect work done for promptly payment to contractors. For procurement of goods and non consultancy services, payments did not include inspection and acceptance reports contrary to Reg. 248, 243(2) and 242(1) of GN No. 446 of 2013 which requires the inspection and acceptance report to be attached with inspection reports and (GRN) for certification of payments.

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Procuring Entity

Audit finding

TANROADS Simiyu

Project Manager delayed certifying payments for some of the contracts contrary to Clause 45.2 of GCC and Section 39(1) (f) of PPA of 2011 & Reg. 248 and 252(2) of GN. No. 446 of 2013.This was observed on procurement of IPC No. 3 for Contract No. w/09 which was prepared on 19th January, 2015 and certified on 2nd March 2015 contrary to GCC Clause. 45.2 which requires the Project Manager to certify payment within 21 days of receiving the same from the contractor.

PMO-RALG All contracts were prepared by PMU and approved by the MTB in accordance with Sec. 33(c) of PPA, 2011 and Sec. 55(2) of GN. No. 446 of 2013 which requires the TB to approve the draft contract before being submitted to Legal officer/Attorney General. However, for tender for supply of computer software for connecting 34 new LGAs to EPICOR 9.05 central Server there was no contract document prepared.

Misungwi District Council

It was observed that four contracts with Nos. LGA/093/2013/2014/W/H/51, LGA/093/2013/2014/W/H/49, LGA/093/2014/2015/W/P/08 & LGA/093/2014/2015/W/LV/02 were not submitted to Attorney General for vetting contrary to Regulation 59 of GN No. 446 of 2013 which requires all contracts above Tshs 50m to be submitted to Attorney General for vetting. Most of works contracts suffered huge delays due to lack of funds from Road Fund to the Councils. Inadequate procedures for time extension orders were not observed contrary to Section 77(3) of PPA, 2011 and Regulation 111 of GN No. 446 of 2013 which requires the AO to issue extension of time. This was evidenced under tender no. LGA/093/2013/2014/W/RF/04 for periodic maintenance of Misungwi Township Road 7Km, routine maintenance maintenance of of Misungwi Hospital Road 0.5km, routine maintenance Misungwi - Nange Road 10Km, routine maintenance of Misungwi- Koromije Road 21Km, and routine maintenance of Lubuga-Nyambeho Road 8Km] Despite the non-performance of contract no. LGA/093/2013/2014/W/RF/06 for periodic maintenance of Ng'ombe – Wanzamiso - Mitindo 13Km, routine maintenance for Mapilinga - Nyahiti 11.5km and installation of culverts along Mondo - Mwaniko Road], no remedial and contractual action was taken against the contractor for non performance and the contract has never been closed out. All payments certificates were attached with inspection reports for goods delivered. However, all works ;procurement lacked measurement sheets to support the payments contrary to provisions of contract and Regualtion 243(2) of GN No. 446 of 2013 which requires payment to be done in accordance with the measured work.

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Procuring Entity

Audit finding

Justifications for variations were inadequate and lacked appropriate documentation. This was evidenced on contract no. LGA/093/2013/2014/W/WSDP/24 for construction of piped system and civil works for Bujingwa village.

Mwanza City Council

Payments were not made within reasonable time contrary to the contracts provisions and Reg. 243(7) of GN No. 446 of 2013, which requires a PE to authorize payments to contractors or service providers upon completion of the work or service to the satisfaction of the PE. It was observed that for all works contracts reviewed, management of defects liability period including issuance of snag list was not managed appropriately. There were no justifications for variations, such as changes of contract price for tender no. LGA/089/2013/2014/W/03 for piped system and civil works for Fumagila villages from Tshs. 705,222,254.00 to Tshs. 829,506,654.00. In addition there are some variation orders which did not follow appropriate procedures for the same project.

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ANNEX 5-6: NOTABLE WEAKNESSES UNDER MANAGEMENT OF PROCUREMENT RECORDS

Procuring entity Audit finding

Kinondoni Municipal Council

It was observed that, procurement records for construction of 126 Secondary School Laboratory as well as procurement records and implementation files of some of the of goods and non consultancy services, as well as contract documents and implementation files for Tender No. LGA/017/2013/2014/W/01 for upgrading of journalism Roads – Phase II and procurement records of the same tender for Phase I were missing. Hence making difficult for the Audit Team to verify the correctness of the procurement done. This contravened Section 61 of PPA No. 7 of 2011 and Regulation 15 of GN. No. 446 of 2013 which requires a procuring entity to maintain records of the procurement or disposal proceedings including decisions taken and its reasons for a period of not less than five years from the date of completion of the contract and be made available when required.

Ministry of Finance

Some of the procurement records were not availed to the Audit team for review, specifically on procurements for consultancy services where by tenders from water, education and building departments were missing. Also, the contract register had incomplete tender information and did not include all awarded contracts. This is contrary to Section 61 of PPA 2011 and Regulation 15 of GN. No. 446 of 2013 which requires PEs to maintain records of the procurement proceedings and avail the same when required for auditing.

Misungwi District Council

All the sampled contracts lacked some records pertaining to the respective tender contrary to Section 61 of PPA 2011 and Reg. 15 of GN. No. 446 of 2013 which requires PEs to maintain records of the procurement proceedings and avail the same when required for auditing.

Mwanza City Council

All the sampled contracts lacked complete records contrary to Section 61 of PPA 2011 and Reg. 15 of GN. No. 446 of 2013 which requires PEs to maintain records of the procurement proceedings and avail the same when required for auditing purposes.

Mpanda District Council

There was no adequate space to archive procurement and disposal of assets records with proper security and easy accessibility when they are required. PMU has only one room with approximately 14 square metres which is used for office and storage of procurement records.

Ikungi District Council

The PE did not maintain properly all records of the procurement proceedings for availability of complete records in a single file per tender as required under Section 61of PPA No. 7 of 2011 and

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Procuring entity Audit finding

Regulation 15 of GN. No. 446 of 2013 which calls for proper maintenance of all procurement records.

Mkwawa University College of Education

Based on the volume of procurement for the PE the facilities for archiving procurement and disposal of assets, the available storage facilities for procurement records are not adequate for security and easy accessibility when required.

State Mining Cooperation

The tender files were not properly arranged, records were not kept in one file and in accordance to successive stages in procurement. This is contrary to Section 61 of PPA No. 7 of 2011 and Regulation 15 of GN No. 446 of 2013 which requires procuring entity to maintain records of the procurement or disposal proceedings containing all procurement information.

Public Service Commission

The tender files were not properly arranged, records were not kept in one file and in accordance to successive stages in procurement. This is contrary to Section 61 of PPA No. 7 of 2011 and Regulation 15 of GN. No. 446 of 2013 which requires procuring entities to maintain records of the procurement or disposal proceedings containing all procurement information.

Dar es Salaam Water & Sewerage Authority (DAWASA)

Fourteen out of twenty six sampled and reviewed tender files had complete records; the remaining twelve tender files did not have complete records of procurements contrary to requirements of Section 61of PPA No. 7 of 2011 and Regulation 15 of GN. No. 446 of 2013 which requires PEs to maintain records of the procurement or disposal proceedings containing all records of each particular tender.

Dar es Salaam Maritime Institute

Seven out of eighteen reviewed tender files had complete records; the remaining eleven tenders did not have complete records of procurements contrary to requirements of Section 61of PPA No. 7 of 2011 and Regulation 15 of GN. No. 446 of 2013 which requires PEs to maintain records of the procurement or disposal proceedings containing all records pertaining to the particular tender.

Fair Competition Commission

The filling system did not only pile up records concerning a particular procurement contract, but some other information kept in the procurement files did not relate to the particular tender.

Ministry of East Africa Cooperation

Records for contracts which used single source procurement method such as Tender No. ME/027/2014/15/NC/09 for internet and email connection services and records for procurement which used mini competition method such as procurement for cleaning services were not complete and arranged in their respective files in accordance to the successive stages in the procurement process.

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ANNEX 5-7 : THE OVERALL PERFORMANCE FOR AUDITED PROJECTS

S/N ENTITY PROJECT NAME CONTRACT AMOUT (TSHS) CATEGORY STATUS PLANNI

NG PROCUREM

ENT CONSTRUCT

ION COMPLETION

& CLOSURE QUALITY PROJECT OVERALL

1 Kigoma District Council -

LGA 1 Periodic Maintenance of Chankabwimba – Mkongoro, Spot Improvement of Pasua Biotale and Routine Maintenance of Bitale – Bubango Roads Lot 2

82,760,000.00 Road on-going 69.0% 56.0% 17.0% on going 53.0% 44.0%

2 Routine Maintenance of Kibilizi – Kalalangabo (3km) Road, Mlati – Mtanga (2.5km) and Mlati Kagongo (8km) Road

20,127,000.00 Road on-going 69.0% 56.0% 17.0% on going 53.0% 44.0%

3 Construction of OPD at Nyarubanda Village 49,944,800.00 Road on-going 38.0% 60.0% 15.0% on going 53.0% 37.8%

4 Construction of One Laboratory Wing at Nyarubanda Secondory School

61,897,000.00 Building on-going 38.0% 60.0% 15.0% on going 53.0% 37.8%

5 Supply Materials and Equipment and Install Water Supply Schemes including Construction of Intake Structures, Gravity Mains, Storage Tanks, Distribution Networks and Domestic Points for Water Supply Schemes in Kigoma District Council

680,338,450.00 Building Completed 73.0% 0.0% 64.0% 13.0% 50.0% 48.7%

6 Periodic Maintenance of Kamara – Nkungwe Road (6km) and Routine Maintenance of Mahembe – Nkungwe Road

88,936,000.00 Road on-going 69.0% 56.0% 17.0% on going 53.0% 44.0%

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S/N ENTITY PROJECT NAME CONTRACT AMOUT (TSHS) CATEGORY STATUS PLANNI

NG PROCUREM

ENT CONSTRUCT

ION COMPLETION

& CLOSURE QUALITY PROJECT OVERALL

2 Ukerewe District Council

LGA 1 Periodic Maintenance and spot Improvement along Bukindo – Murutunguru Road 7.2 km

110,534,000.00 Road Completed 86.4% 84.1% 67.1% 57.1% 89.3% 80.5%

2 Proposed construction of OPD Building to be built at Nakatunguru

199,836,500.00 Building Completed 83.3% 88.0% 61.8% 64.3% 97.2% 83.1%

3 Proposed construction of twenty shop frames Building to be Built at Nansio New Bus stand Phase I

85,756,000.00 Building Completed 72.2% 88.0% 55.9% 50.0% 97.2% 78.3%

4 Proposed construction of two Market sheds to be Built at Nansio-TOWN Phase I

141,878,000.00 Building Completed 77.8% 91.7% 52.9% 50.0% 96.9% 79.1%

5 Routine Maintenance along Hamkoko – Bukimwi road 5.3km, Kigara – Nansio road 6.67km, spot improvement along Butiriti – Guguyu road 5.0km, Kigara – Nansio road 3.22km and construction of Box Culverts along Nansio Kigara and Kigara – Nansio roads

72,166,700.00 Road on-going 86.4% 86.4% 58.6% on going 50.0% 57.6%

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S/N ENTITY PROJECT NAME CONTRACT AMOUT (TSHS) CATEGORY STATUS PLANNI

NG PROCUREM

ENT CONSTRUCT

ION COMPLETION

& CLOSURE QUALITY PROJECT OVERALL

3 Kibondo District council

LGA 1

Periodic Maintenance along Nanenane road 3km, Routine Maintenance along Narukinga road 2km, Kilembe – Kagoti road 5km, Twabagondozi – Kilalangona 8km and Bitare – Kahambwe road 6.6km. Construction of culverts at Kibondo Town roads, Spot Improvement along Twabagondozi – Nyerenda 4km in Kibondo District Council

68,717,200.00 Road on-going 69.0% 65.0% 41.0% on going 55.0% 50.5%

2

Periodic Maintenance along Kibondo Town Roads 5km and Kibondo – Kumbanga road 4km, Routine Maintenance along Kibondo Town Roads 10km and Kibondo – Kumbanga Road 13km, Spot improvement along Kibondo – Biturana Road 5km and Construction of line dirch at Kibondo Town Council -

214,115,250.00 Road on-going 65.0% 59.0% 37.0% on going 53.0% 47.5%

3

Renovation and Extension of Canteen to be built in Clinical Officers College at Kibondo

78,596,617.00 Building Completed 42.0% 62.0% 37.0% 20.0% 19.0% 31.6%

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S/N ENTITY PROJECT NAME CONTRACT AMOUT (TSHS) CATEGORY STATUS PLANNI

NG PROCUREM

ENT CONSTRUCT

ION COMPLETION

& CLOSURE QUALITY PROJECT OVERALL

4

Periodic Maintenance Kigaga – Lukaya road 4km long and Routine Maintance along Kagezi – Kigina Road 4km, Kigaga – Kagezi Road 4km, Nyaruyoba – Kumkuyu Road, Kagezi – Mikoko – Kibuye Road 8km, Nyaruyoba – Kigaga – Kigina Road 10.7 and Kumsenda – Kibuye Road 9km–

96,673,000.00 Road on-going 73.0% 65.0% 39.0% on going 53.0% 50.1%

5

Construction of Piped Water System and Civil Works for Katanga Ilabiro Village in Kibondo District Council -

526,939,275.50 Road on-going 77.0% 13.0% 57.0% on going 67.0% 54.9%

4 Mwanza City Council

LGA 1 Routine Maintenance Works along various roads within Mwanza City Council (Patch works, Road Marking and Road Sign)

240,430,660.00 Road on-going 86.0% 83.0% 76.0% on going 82.0% 73.5%

Mwanza City Council

LGA 2 Construction and Repair of Culverts and Bridges within Mwanza City

147,527,300.00 Road on-going 85% 81% 79% on going 63% 66.1%

Mwanza City Council

LGA 3 Piped System and Civil works for Fumagila Villages

832,162,260.00 Building on-going 73% 75% 55% on going 88% 68.3%

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Mwanza City Council

LGA 4 Periodic Maintenances along Bismark road, Periodic Maintenances along Mwananchi – Alliance road and Periodic Maintenance along Nyashana – Jeshini road

148,959,970.00 Road Completed 85.0% 83.0% 88.0% 31.0% 88.0% 81.2%

Mwanza City Council

LGA 5 Supply of ICT Equipment for Revenue Collection Information System 9LGRIS and GIS Section at Mwanza City Council

48,910,000.00 Goods Completed 73.0% 77.0% 65.0% 75.0% 100.0% 82.8%

5 Misungwi District Council

LGA 1 PM Ng'ombe - Wanzamiso-Mitindo 13Km, RM Mapilinga-Nyahiti 11.5km and Installation of Culverts along Mondo - Mwaniko Road

152,916,500.00 Road Completed 82.0% 76.0% 68.0% 13.0% 71.0% 67.3%

Misungwi District Council

LGA 2 PM Misungwi Township Road 7Km, RM of Misungwi Hospital Road 0.5km, RM Misungwi-Nange Road 10Km, RM Misungwi-Koromije Road 21Km, & RM of Lubuga-Nyambeho Road (8Km)

138,298,800.00 Road Completed 82.0% 76.0% 68.0% 13.0% 88.0% 74.1%

Misungwi District Council

LGA 3 Completion, Construction and Rehabilitation of Staff House at Kanyelele Dispensary

12,867,800.00 Building Completed 55.0% 68.0% 68.0% 38.0% 81.0% 67.6%

Misungwi District Council

LGA 4 PM of Misungwi Township Roads 43,602,250.00 Road on-going 85.0% 83.0% 90.0% on going 79.0% 74.9%

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Misungwi District Council

LGA 5 Construction of Piped System and Civil Works for Bujingwa Village

217,687,800.00 Building Completed 73.0% 79.0% 66.0% 19.0% 82.0% 70.4%

6 Rorya District Council

LGA 1 Contract No. LGA/068/W/1/2014/2015/Lot 05 for Periodic, Routine Maintanance, Culvert Installation and Spot Improvement along Obwere-Kyariko-Bwiri, IngriJuu-Saro, District HQ Road Raranya-IngriJuu and Obwere-Kyariko-Raranya Roads

88,071,000.00 Road Completed 75.0% 81.8% 69.4% 71.4% 89.3% 79.9%

Rorya District Council

LGA 2 Contract No LGA/068/13/W/2013/2014 for Construction of Staff House at Ryagoro Resource Centre

48,587,000.00 Building Completed 90.0% 95.5% 37.5% 57.1% 90.0% 76.8%

Rorya District Council

LGA 3 Contract No LGA/068/W/14/2013/2014 for Construction of Artificial Insemination Centre at Utegi village

29,627,250.00 Building Completed 90.0% 95.5% 37.5% 57.1% 90.0% 76.8%

Rorya District Council

LGA 4 Contract No LGA/068/12/W/2014/2015 for Construction of Staff House at Utegi Insemination Centre

43,955,960.00 Building on-going 90.0% 95.5% 25.0% on going 92.9% 69.7%

Rorya District Council

LGA 5 Contract No LGA/068/12/W/2013/2014 for Construction of Artificial Insemination Centre at Komuge village

49,962,700.00 Building Completed 90.0% 95.5% 25.0% 57.1% 96.7% 76.9%

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7 Tarime District Council

LGA 1 Periodic Maintenance Mrito – Gibaso – Mangucha,Bugucha –Kobori, Nyankoni-Kangariani, Spot ImprovementMrito -Gibaso – ManguchanaNyankoni –KangarianiRoutine and Recurrent Maintenance of Mrito – Gibaso – Mangucha, Muriba –Kitawasi – Masurura ,Mangucha – Kangariani and Culvert Construction of Mangucha –Kangariani

135,857,000.00 Road Completed 77.3% 95.5% 66.7% 0.0% 70.9% 66.7%

Tarime District Council

LGA 2 Periodic Maintenance Sirari- - Makaburini – Ng’ereng’ere and Remagwe,Kitagasembe, Spot Improvement of Sirari – Makaburini – Ng’ereng’ere,SirariNyamurenge, Nyamwigura –Gwitiryo, Seng’esa – Nyansaricho, Rosana – Soroneta – Magoma – Nkongore, Rosana – Soroneta – MagomanaRemange – Kitagasembe.

119,440,500.00 Road Completed 72.7% 95.5% 41.7% 0.0% 60.0% 56.4%

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Tarime District Council

LGA 3 Periodic Maintenance Gamasara- BisarwinaSurubu – Nyamirambaro, Spot Improvement ofGamasara – Bisarwi, Kewamamba – Nyagisya – BuganjonaSurubu – Nyamirambaro, , Routine and Recurrent Maintenace of Gamasara – Bisarwi,Surubu – NyamirambaronaMtana –SonganaUjenziwaCulvert Construction on Nyandoto – Kiongera – Nyamunhuda

75,086,500.00 Road Completed 72.7% 95.5% 47.1% 30.0% 75.0% 66.5%

Tarime District Council

LGA 4 Construction of Four(4) Aprons and Installation of Four Water Hand Pumps for the Drilled Water Boreholes at Getenga

27,875,570.00 Building Completed 77.8% 94.0% 25.0% 0.0% 91.7% 66.6%

Tarime District Council

LGA 5 Spot Improvement of Nyabisaga – Kogetende 3.8km

23,050,000.00 Road Completed 77.3% 95.5% 46.7% 85.5% 88.5% 78.3%

8 Kinondoni Municipal Council

LGA 1 Supply of One Brand New Chain Excavator 440,423,200.00 Goods Completed 93.0% 67.0% 72.0% 75.0% 88.0% 82.4%

Kinondoni Municipal Council

LGA 2 Upgrading of Biafra – France Embassy Road (0.85Km)

808,389,107.00 Road on-going 58.0% 86.0% 61.0% on going 32.4%

Kinondoni Municipal Council

LGA 3 Upgrading of Masjid Quba Road to Bitumen Standard

3,325,346,200.00.00 Road on-going 42.00% 79.00% 54.00% on going 27.1%

Kinondoni Municipal Council

LGA 4 Periodic Maintenance of Tegeta - Masaiti - Namanga Road Lot 4

177,784,000.00 Road on-going 46.0% 76.0% 45.0% on going 82.0% 58.6%

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Kinondoni Municipal Council

LGA 5 Upgrading of Mkwajuni – Mango Road (1.0Km) from Gravel to Double Surface Dressing

404,169,500.00 Road on-going 58.0% 0.0% 48.0% on going 79.0% 52.8%

Kinondoni Municipal Council

LGA 6 Upgrading of Lion Road(0.80Km) from Gravel to Tarmac

1,376,853,608.63 Road on-going 54.0% 0.0% 64.0% on going 67.0% 50.4%

Kinondoni Municipal Council

LGA 7 Upgrading of Journalism (0.53Km), Feza (Senga) (0.75Km), Chwakwu (0.8Km) and Serengeti (0.6Km) Roads from Gravel to DSD and Upgrading of Mahando Road (0.3Km to Tarmac level

840,000,000.00 Road on-going 54.0% 0.0% 67.0% on going 67.0% 51.0%

9 Ilala Municipal Council

LGA 1 Procurement of Two Brand New Motor Graders 1,224,638,000.00 Goods Completed 100.0% 100.0% 94.0% 100.0% 97.0% 97.6%

Ilala Municipal Council

LGA 2 Construction of Kinyerezi - Bonyokwa Box culvert along Kinyerezi - Bonyokwa Road Lot 1

250,340,000.00 Bridge on-going 58.0% 86.0% 61.0% on going on going 32.4%

Ilala Municipal Council

LGA 3 PM of Lugalo Road to Tarmac Level Lot 1 189,401,250.00 Road Completed 71.0% 86.0% 69.0% 67.0% 95.0% 81.3%

Ilala Municipal Council

LGA 4 Spot Improvement along Ulongoni A - Gongolamboto - Mongolandege (4.4Km) Gravel Road Lot 1

160,324,000.00 Road on-going 75.0% 86.0% 58.0% on going 60.0% 59.2%

Ilala Municipal Council

LGA 5 roposed Maintenance of Kinyerezi Road (0.5Km) to Surface Dressing Level - Phase III Lot 2

109,190,000.00 Road on-going 58.0% 86.0% 61.0% on going 32.4%

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10 Kashwasa AE 1 Extension of water Transmission Network to Villages (Lot 1: Magobeko and Nyashimbi Village

290,288,250.00 Building Completed 81.0% 81.0% 57.0% 69.0% 79.0% 74.2%

Kashwasa AE 2 Extension of water Transmission Network to Villages (Lot 2: Kakulu and Butengwa Villages

290,288,250.00 Building Completed 81.0% 81.0% 57.0% 69.0% 79.0% 74.2%

Kashwasa AE 3 Extension of water Transmission Network to Villages (Lot 2: Lyabusalu, Mwajiji and Ichingo Villages - Lot 4

706,871,452.00 Building Completed 81.0% 79.0% 57.0% 0.0% 79.0% 67.1%

Kashwasa AE 4 Extension of water Transmission Network to Villages (Lot 5 Mwasekagi and Mwakatola Villages) Lot 4

454,177,000.00 Building Completed 81.0% 79.0% 57.0% 0.0% 79.0% 67.1%

11 RAS Dar es Salaam

LGA 1 Renovation of Isolation Treatment Ward and Construction of Lounge at Temeke Hospital

332,163,595.00 Building Ongoing 68.0% 74.0% 73.0% ongoing 79.0% 67.2%

12 College of Business Education (CBE)

PA 1 Proposed Renovation of Block A at DSM Campus 1,565,860,000.00 Building Ongoing 96% 100% 92% ongoing 95% 85.6%

College of Business Education (CBE)

PA 2 Preparation of Master Plan at Dodoma Campus (Lots 2) 42,541,950.00 Consultan

cy Ongoing 95% 100% 92% ongoing 94% 85.0%

College of Business Education (CBE)

PA 3 Preparation of Master Plan at Dar es Salaam Campus (Lot 1) 36,712,750.00 Consultan

cy Ongoing 95% 100% 92% ongoing 94% 85.0%

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College of Business Education (CBE)

PA 4 Preparation of Master Plan at Mwanza Campus (Lot 3)

44,102,500.00.00 Consultan

cy Ongoing 95% 100% 92% ongoing 94% 85.0%

13 National Audit Office (NAO)

IE 1 Provision of Consultancy Services for Training 200 Auditors on IT Audit 41,000,000.00 Consultan

cy Completed 92% 96% 92% 100% 91% 93%

National Audit Office (NAO)

IE 2 Provision of Consultance Services for Training 200 Auditors on Quality Control and Assurance

18,000,000.00 Consultancy Completed 92% 96% 92% 100% 91% 93%

National Audit Office (NAO)

IE 3 Provision of Consultancy Services for Designing, Contract Management and Construction Works Supervision of NAO Office Building in Dodoma

107,457,100.00 Consultancy Ongoing 95% 96% 89% ongoing 94% 84.0%

National Audit Office (NAO)

IE 4 Construction of the NAO Building at Plot No. 10 Block "C" NCC Link area in Dodoma Municipality

15,959,271,411.02 Building Ongoing 96% 96% 89% ongoing 95% 84.6%

14 Ikungi District Council

LGA 1 Proposed Periodic Maintenance Works along Mungaa-Dung’unyi-Ikungi

344,437,000.00 Road Ongoing 64% 78% 39% ongoing 92% 65.2%

Ikungi District Council

LGA 2 Proposed Road Maintenance Works along Mtamaa-Minyughe-Mtavira

233,440,000.00 Road Completed 64% 91% 45% 86% 88% 74.7%

Ikungi District Council

LGA 3 Proposed Construction of Piped Water Scheme at Mgungira Village for Financial Year 2014/2015

414,115,900.00 Building Ongoing 70% 86% 47% ongoing 100% 72.0%

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Ikungi District Council

LGA 4 Proposed Rehabilitation/Extension of Water Supply Scheme at Makiungi and Unyaghumpi Villages

129,688,900.00 Building Completed 70% 77% 44% 13% 100% 71.8%

Ikungi District Council

LGA 5 Proposed Construction of Agriculture Resource Centre at Ikungi

90,876,650.00 Building Completed 70% 88% 39% 50% 97% 74.4%

15 Muleba District Council

LGA 1 Construction of concrete decks and Culverts 136,941,000.00 Building Ongoing 85% 85% 45% ongoing INA 35%

Muleba District Council

LGA 2 Construction of Gravity Piped Water at Ruhanga Village in Muleba District

846,570,835.00 Building Ongoing 77% 73% 79% ongoing INA 39%

Muleba District Council

LGA 3 Construction of Piped water Supply Network and Associated Appurtenances in Kyota Village

773,946,004.00 Building Ongoing 71% 79% 36% ongoing 88% 64.50%

Muleba District Council

LGA 4 Construction of District Council Fence Phase II at Muleba Head Office

50,000,000.00 Building Ongoing 85% 88% 29% ongoing INA 31.60%

Muleba District Council

LGA 6 Construction and Supply of Pumps at Kyota Irrigation Scheme and Supply of Pumps and Pipes works at Buyaga Irrigation Scheme in Muleba

234,744,197.64 Building Ongoing 65% 74% 32% ongoing INA 26.80%

Muleba District Council

LGA 7 Construction of Piped Water Supply Network and Association Appurtenance in Katembe Village

486,670,887.00 Building Completed 81% 64% 59% 7% 81% 67.5%

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Muleba District Council

LGA 8 Construction of Piped Water Supply Network and Associated Appurtenances in Kangaza Village

579,884,266.00 Building Terminated 71% 91% 0% terminated 23.30%

Muleba District Council

LGA 9 Construction and Renovation of Water Supply System for Kangaza Village in Muleba District

746,013,199.76 Building Under Proc. 73% 89% 23.50%

Muleba District Council

LGA 10 Construction of Karutanga Water Supply Networks and Associated Appurtenance Structures in Muleba District Council

614,149,540.29 Building Ongoing 81% 70% 36% ongoing 30.4%

Muleba District Council

LGA 11 Routine Maintenance of Kamishango - Nyawaibaga 21km and Periodic Maintenance of Kamishango - Nyawaibaga 5km

84,610,000.00 Road Ongoing 92% 96% 66% ongoing 41.2%

16 Bariadi District Council

LGA 1 Routine/Recurrent and Spot Improvement Works of Nkololo-Mwasinasi km 14, Nkololo-Ihusi km 13, Mwasinasi-Ihusi km 7, Nkololo-Gasuma km 6 and Isakalyamhela-Nkololo km7

66,996,250.00 Road Completed 77.3% 92.9% 70.6% 50.0% 61.5% 68.5%

Bariadi District Council

LGA 2 Periodic Maintenance of Byuna – Nkindwabiye - Halawa km 8

138,425,003.00 Road Completed 77.3% 92.9% 73.5% 50.0% 66.7% 71.1%

Bariadi District Council

LGA 3 Spot Improvement of Igegu - Matongo km 10 na Isuyu- Nyawa km 7

12,230,375.00 Road Completed 77.3% 92.9% 32.4% 50.0% 25.0% 46.2%

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Bariadi District Council

LGA 4 Construction of Staff House at Dutwa dispensary 35,000,000.00 Building Completed 77.3% 92.9% 70.6% 50.0% 66.7% 70.6%

Bariadi District Council

LGA 5 Construction of Normal and Relief Culverts along Igegu - Matongo (15 lines) Road

45,635,000.00 Road Completed 88.9% 85.7% 20.0% 50.0% 68.8% 62.9%

17 Kishapu District Council

LGA 1 Sport Improvement Work along Mhunze-Igaga-Mwamashele, Lagana - Beledi and Lagana - Mwamanota

126,800,000.00 Road Completed 77.3% 90.5% 82.4% 70.0% 80.8% 80.3%

Kishapu District Council

LGA 2 Construction of Fence Phase II at Kishapu District Hospital

37,979,000.00 Building Completed 77.8% 84.1% 76.5% 70.0% 76.9% 77.0%

Kishapu District Council

LGA 3 Construction of RCH Block at Kishapu District Hospital

49,963,500.00 Building Completed 77.8% 84.1% 76.5% 70.0% 76.9% 77.0%

Kishapu District Council

LGA 4 Extension of Theatre at Kishapu District Hospital 39,807,700.00 Building Completed 77.8% 84.1% 76.5% 70.0% 76.9% 77.0%

Kishapu District Council

LGA 5 Construction of Bus Stand Phase II 273,007,278.00 Road Completed 80.0% 85.7% 76.5% INA 76.9% 70.6%

18 Songea District Council

LGA 1 Construction of Mkurumusi Box Culvert along Songea - Mkurumusi - Mpitimbi road

44,949,474.00 Road Ongoing 88% 94% 86% ongoing 75% 74.2%

Songea District Council

LGA 2 Periodic Maintenance, Routine Maintenance & Bridge Repair along Matomondo - Magagura - Kizuka Road

251,078,000.00 Road Ongoing 83% 94% 86% ongoing 79% 74.8%

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Songea District Council

LGA 3 Routine Maintenance alongNakahegwa Lipokela, Spot Improvement at Masangu - Chipole - Lusonga - Magagura - Ngahokola Road

58,074,200.00 Road Ongoing 83% 94% 86% ongoing 71% 71.6%

Songea District Council

LGA 4 Renovation of Kizuka Warehouse 70,124,944.05 Building Ongoing 75% 98% 57% ongoing 69% 63.8%

Songea District Council

LGA 5 Supply & Installation of Parangu Village Pumping Water Supply Project

117,712,500.00 Building Ongoing 88% 98% 86% ongoing 77% 75.4%

Songea District Council

LGA 6 Drilling, Supply & Construction of Six Boreholes for Hangangadinda/ Mbangamawe

93,550,000.00 Building Ongoing 88% 98% 98% ongoing 83% 80.2%

19 Mkalama District Council

LGA 1 Periodic maintenance of roads along Kidarafa- Malaja- Nkalakala(4.45Kms)and Routine maintenance of roads for twelve (12) villages(70.05Kms) at MDC; Contract No.LGA/147/2014-15/W/01Lot 1

318,391,600.00 Road Ongoing 50.0% 70.0% 84.0% ongoing 97.0% 72.6%

Mkalama District Council

LGA 2 Spot improvement of roads along Mwando-Nkalakala; Mwanga-Kidarafa (8.7Kms) and Periodic maintenance of roads along Nkalakala-Mwanga (12Kms):Contract No. LGA/147/201415/W/01

102,139,600.00 Road Ongoing 50.0% 70.0% 84.0% ongoing 97.0% 72.6%

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Lot 2

Mkalama District Council

LGA 3 Periodic maintenance of roads along Nkinto-Muntamba-Kisuluiga(7.4Kms);Routine maintenance of roads for eight (8) villages (47.74Kms) and Spot improvement along Nduguti-Ndal-Msingi&Matongo-Munung’una roads (11.2Kms): Contract no.LGA/147/2014-15 /W/01Lot 3

175,710,000.00 Road Ongoing 50.0% 70.0% 36.0% ongoing 93.0% 61.4%

Mkalama District Council

LGA 4 Construction of two bridges along Mwangeza-Ikolo-Endasiku and Kikhonda-Kinampundu roads; Contract No. LGA/147/2014-2015/W/01 Lot 4

95,161,840.00 Bridge Completed 75.0% 70.0% 100.0% 100.0% 88.0% 87%

Mkalama District Council

LGA 5 Additional works of backfilling along Iguguno-Lyelembo-Msingi roads (25.08 Km) in MDC: Contract No. LGA/147/201415/W/Q. 01

22,391,000.00 Road Completed 70.0% 50.0% 100.0% 100.0% 88.0% 84%

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20 Mpanda District Council

LGA 1 Construction of Mechanized Piped Water Schemes and Civil Works at Igagala Village

494,627,990.00 Building Ongoing 40.0% 78.0% 24.0% ongoing 64.0% 46%

Mpanda District Council

LGA 2 Construction of Mechanized Piped Water Schemes at Majalila Village

525,411,700.00 Building Ongoing 40.0% 86.0% 23.0% ongoing 77.0% 52%

Mpanda District Council

LGA 3 Construction of Mwamkulu Irrigation Scheme (Kabage Hamlet) in Mpanda DC

645,377,125.00 Building Ongoing 90% 93% 67% ongoing 100% 81%

Mpanda District Council

LGA 4 Periodic Maintenance 8km and Routine Maintenance 10km of Mishamo Complex Roads

200,581,000.00 Road Completed 55% 90% 42% 30% 75% 61%

Mpanda District Council

LGA 5 Routine Maintenance of Sibwesa-Katuma (2km) and Periodic Maintenance of Sibwesa-Katuma (3km) with Installation of Concrete Culverts(900mm) in Mpanda DC

69,913,000.00 Road Completed 60% 91% 50% 30% 92% 71%

21 TANROADS Simiyu

AE 1 Bridge Major Repair on Budalabujiga I Bridge along Bariadi (Butiama) - Kisesa and Bridge Preventive Works along Unpaved Regional Roads

326,100,000.00 Road Ongoing 65% 98% 87% ongoing 89% 76%

TANROADS Simiyu

AE 2 Periodic Maintenance Works of Mwanhuzi Town Roads (Upgrading of 3.0Km in Mwanhuzi Town Roads to Bitumen Standard)

1,201,113,500.00 Road Completed 71% 98% 87% 86% 75% 80%

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TANROADS Simiyu

AE 3 Bridge Major Repair of Mongowako Bridge along Ntinge - Mwantinge and Rehabilitation Works along Mwakusane - Mwandete - Mwogai Unpaved District Road

652,387,600.00 Road Ongoing 73% 95% 76% ongoing 39%

TANROADS Simiyu

AE 4 Rehabilitation Works along Luguru - Kadoto, Shishiyu - Malisu, Luguru - Malya and Maswa (Nyalikungu) - Kadoto - Shishiyu Unpaved Regional Road

424,450,000.00 Road Ongoing 86% 98% 87% ongoing 79% 76%

TANROADS Simiyu

AE 5 Rehabilitation Works along Mwanhuzi - Sibiti Unpaved Trunk Roads and Rehabilitation Works along Nkoma - Makao Unpaved District Road

361,934,600.00 Road Ongoing 86% 98% 87% ongoing 81% 77%

TANROADS Simiyu

AE 6 Supply of Soil Material Testing Laboratory Equipment (CBR) Machine Cone Penetrometer

20,330,000.00 Goods Completed 86% 98% 91% 88% 100% 94%

22 TANROADS Katavi

AE 1 PM and SI Works along Mpanda - Uvinza (Katavi/Kigoma Border) Trunk Road, T.009

1,397,486,780.00 Road Completed 68% 90% 79% 86% 71% 75%

TANROADS Katavi

AE 2 Bridges Major Repair Works along Majimoto - Inyonga Regional Road, R.565

621,900,000.00 Bridge Ongoing 70% 90% 66% ongoing 77% 67%

TANROADS Katavi

AE 3 PM Works on Sitalike - Kibaoni - Mamba - Kasansa Regional Roads, R.548

373,310,200.00 Road Ongoing 68% 86% 66% ongoing 69% 63%

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TANROADS Katavi

AE 4 Rehabilitation Works along Kibaoni - Mamba - Kasansa Regional Road, R. 548

199,103,400.00 Road Ongoing 67% 90% 63% ongoing 73% 64%

TANROADS Katavi

AE 5 Rehabilitation and PM Works along Kibo (Ifukutwa) - Mwese - Lugonesi, R.562 and Kagwira – Karema Regional Road, R. 563

570,714,200.00 Road Ongoing 71% 90% 66% ongoing 75% 66%

23 Ushetu District Council

LGA 1 Routine Maintenance along Uyogo - Kalama 11Km, Uyogo - Ulowa 30Km, Bulugwa -Ulewe 36Km, Ulowa - Ulewe 21 Km Roads

106,535,000.00 Road Suspended 85% 100% 50% Suspended 90% 73%

Ushetu District Council

LGA 2 Routine Maintenance along Mpunze - Luhanga 28.5Km and Iramba - Idahina 11Km Roads

54,496,000.00 Road Ongoing 85% 100% 44% Ongoing 96% 74%

Ushetu District Council

LGA 3 Periodic Maintenance along Tulole - Muhulidede 21Km, Nyamilangano - Butibu - Ngokolo 20Km, Nyamilangano - Mapamba 9Km and Spot Improvement along Muhulidede - Kayenze 10Km and Chona - Mapamba Roads

174,625,000.00 Road Ongoing 85% 100% 42% Ongoing 95% 73%

Ushetu District Council

LGA 4 Drilling Construction and Pumping Testing of 4 Deep Productive Boreholes for Iboja, Kangeme,Mbika Village and Mpunze Agriculture Resource

107,061,000.00 Building Ongoing 96% 100% 41% Ongoing 100% 77%

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Centre.

Ushetu District Council

LGA 5 Completion of Construction of one Laboratory room at Dakama SecondaryCompletion of Construction of one Laboratory room at Dakama Secondary

48,300,000.00 Building Ongoing 100% 100% 50% Ongoing 100% 80%

24 Mbozi District Council

LGA 1 Lot 3 Renovation of Warehouse at Mlangali and Igunda Village

115,946,093.00 Building Ongoing 38% 57% 35% Ongoing 82% 53%

Mbozi District Council

LGA 2 Renovation of Warehouse at Sumbaluwela Village Lot 1

51,946,598.00 Building Ongoing 55% 69% 70% Ongoing 83% 65%

Mbozi District Council

LGA 3 Renovation of Warehouse at Nansana Village Lot 9 71,738,730.00 Building Ongoing 36% 48% 35% Ongoing 70% 47%

Mbozi District Council

LGA 4 Construction of Mlangali Bridge Lot 8 64,617,400.00 Road Completed 77% 59% 60% 69% 90% 76%

Mbozi District Council

LGA 5 Periodic Maintenance along Lumbila Ihowa Road for Lot3

120,139,000.00 Road Completed 77% 70% 73% 75% 82% 77%

Mbozi District Council

LGA 6 Periodic Maintenence and Spot Improvement along Vwawa-Igamba and Isangu-Msia LOT4

142,353,000.00 Road Completed 75% 79% 64% 64% 77% 73%

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25 Maswa District Council

LGA 1 Routine Maintenance of Hinduki - Mwaka Road (11Km), Hinduki - Nyashimba road (13Km), Periodic Maintenance of Hinduki - Mwafa Road (1Km) & Spot Improvement of Nyashimba - Mwangholo Road

62,841,500.00 Road Ongoing 77% 84% 73% Ongoing 77% 69%

Maswa District Council

LGA 2 Spot Improvement of Dodoma - Malita - Nguliguli Road (8.1Km) & Construction of Bridge along Nguliguli - Mwamanenge - Mwangholo Road

112,421,000.00 Road Ongoing 77% 84% 77% Ongoing 77% 70%

Maswa District Council

LGA 3 Routine Maintenance of Senani - Jilago Road (10Km), Periodic Maintenance of Senani - Zebeya - JilagoRoad (6Km) and Construction of Bridge along Ipililo - Ikungulyankoma - Ilambambasa Road

164,113,000.00 Road Ongoing 71% 84% 73% Ongoing 77% 68%

Maswa District Council

LGA 4 Periodic Maintenance of Maswa Town Roads (7.15Km), Spot Improvement Nyaguwa Road (3Km), Routine Maintenance of Bugolola - Malula (5Km) Road

124,608,250.00 Road Ongoing 75% 84% 73% Ongoing 73% 67%

LGA 5 Malampaka New Storage Warehouse in Maswa District

373,394,015.00 Road Ongoing 70% 81% 71% Ongoing 80% 68%

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26 Kyela District Council

LGA 1 Periodic Maintenance of Njugilo – Malangali Road 3.5km

107,094,086.00 Road Completed 77% 75% 37% 28% 53% 54%

Kyela District Council

LGA 2 Periodic Maintenance of Masoko – Sumbi Road 3.0km

214,115,250.00 Road Completed 77% 75% 35% 25% 53% 54%

Kyela District Council

LGA 3 Double Surface Dressing Works at Kawawa, Kikwete, Nyerere, Mwakyembe, Congo and Mkapa Roads and Patching works at Market Square

560,757,830.00 Road Ongoing 77% 75% 35% ongoing 53% 51%

Kyela District Council

LGA 4 Periodic Maintenance of Ipinda – Kanga Road 3km, Spot Improvement of Kafundo – Kisale Road 1.8km and Construction of Kyangala Bridge

97,623,170.00 Road Completed 77% 75% 39% 19% 53% 54%

Kyela District Council

LGA 5 Completion of Mwalisi Suspension Bridge 50,000,000.00 Bridge Completed 77% 73% 33% 19% 53% 52%

Kyela District Council

LGA 6 Construction of Pump House, Supply and Installation of Pump and Pipes work for Ibanda Servant Quarter Water Supply

29,363,950.00 Building Completed 77% 73% 33% 19% 53% 52%

27 Bunda District Council

LGA 1 Contract No. LGA/065/2013-2014/W/ASDP/02 for Construction of District Agricultural Office PHASE II

24,989,000.00 Building Ongoing 65% 85% 63% ongoing 88% 69%

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Bunda District Council

LGA 2 Contract No. LGA/065/2013-2014/W/LGCDG/03 for Construction of mortuary building at Manyamanyama district hospital

97,803,000.00 Building Ongoing 75% 74% 75% ongong 83% 71%

Bunda District Council

LGA 3 Contract No.LGA/065/2014-2015/W/RF/03 for Routine maintenance,spot improvement,periodic maintenance and installation of culverts along Nakatuba-Mwitende road 15km,Buguma-Mchigondo road 5km and Igundu-Bulomba road 8km

93,420,000.00 Roads Completed 73% 77% 79% 80% 77% 76.90%

Bunda District Council

LGA 4 Contract No.LGA/065/2014-2015/W/RF/04 for Routine maintenance,spot improvement,periodic maintenance and installation of culverts along Bulamba-Mwiluluma road 21km and Namhula-Muranda road 15km

110,463,000.00 Roads Completed 73% 80% 70% 80% 82% 77.40%

Bunda District Council

LGA 5 Contract No.LGA/065/2014-2015/W/RF/07 for Routine maintenance,spot improvement,periodic maintenance and installation of culverts along Bunda town 26km

128,339,000.00 Roads Completed 73% 80% 74% 83% 91% 82.10%

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28 Tanzania Railway Limited

PA 1 CONTRACT No. PA/113/2014/W/18 for Heavy Repairs And Restoration Of Track Washed Away At Km300/0-3, 302/7 - 8 And KM 315/1-9

590,927,000.00 Railway Repair Ongoing 60% 57% 33% ongoing 50% 44%

Tanzania Railway Limited

PA 2 CONTRACT No. PA/113/2014/W/51 For Remanufacturing Of 8no. 88 Class Locomotives

27,222,114,400.00 Building Ongoing 75% 81% 94% ongong INA 42%

Tanzania Railway Limited

PA 3 CONTRACT No. PA/113/2012-13/ME/G/OE/013 For Supply Of 25 (Twenty Five) New Ballast Hopper Bogie Wagons

4,100,000,000.00 Goods Ongoing 50% 76% 58% ongoing 36% 44%

Tanzania Railway Limited

PA 4 CONTRACT No. PA/113/2102-13/ME/G/OE/014 For Supply Of 274 New Goods Wagons

45,580,000,000.00 Goods Completed 69% 79% 41% 33% 50% 53%

Tanzania Railway Limited

PA 5 CONTRACT No. PA/113/2012-13/ME/G/OE/007 For Supply Of 34 New Brake Vans

6,772,800,000.00 Goods Ongoing 40% 80% 66% ongoing 42% 46%

Tanzania Railway Limited

PA 6 CONTRACT No. PA/113/2012-13/ME/G/OE/008 For Supply Of 22 (Twenty Two) New Passenger Coaches

26,410,240,000.00 Goods Completed 56% 86% 76% 75% 80% 75%

Tanzania Railway Limited

PA 7 CONTRACT No. PA/113/2012-13/ME/G/OE/010 For 27,222,114,400.00 Goods Completed 56% 84% 85% 83% 74% 75%

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Remanufacturing If 8 No. 88class Locomotives

Tanzania Railway Limited

PA 8 CONTRACT No. PA/113/2012-13/ME/G/OE/006 For Supply Of 13 New 200-2200 Horsepower Diesel Locomotives

68,431,214,400.00 Goods Ongoing 56% 77% 75% ongoing 85% 68%

Tanzania Railway Limited

PA 9 CONTRACT No. TRL/SUPP/OE/023/11 For Supply Of 1 No Tamping Leveling Lining Machine And Track Video System

3,574,494,000.00 Goods Completed 25% 58% 70% 64% 82% 64%

Tanzania Railway Limited

PA 10 CONTRACT No. PA/113/2012-13/ME/G/OE/009 For Supply Of 100 Ton New Rail Mounted Breakdown Rescue Crane

7,667,000,000.00 Goods Ongoing 71% 75% 59% 56% INA 34%

29 TANAPA PA 1 Contract No. PA/037/2013-2014/HQ/W/07 for Construction of Community Bone Char Water Deflouridation Plant at Naabi in SENAPA

198,063,192.00 Building Ongoing 55% 90% 21% ongoing 88% 59%

TANAPA PA 2 Contract No. PA/037/2014-2015/SDNP/W/242 for Rehabilitation of Lemosho Road from Nyumba Moja to Starting Point 8.5Km at KINAPA

438,950,000.00 Roads Completed 95% 83% 28% 6% 60% 57.50%

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TANAPA PA 3 Contract No. PA/037/2014-2015/KINP/W/212 for Construction of Office Block at Rongai Gate In Kilimanjaro National Park

185,022,900.00 Building Ongoing 80% 82% 47% ongoing 95% 71.60%

TANAPA PA 4 Contract No. PA/037/2014-2015/KINP/W/211 for Construction of Semi Detached (3 in 1) Staff House with Court Yard at Rongai Gate in Kilimanjaro National Park

186,227,600.00 Building Ongoing 80% 82% 47% ongoing 95% 71.60%

TANAPA PA 5 Contract No. PA/037/2014-2015/HQ/G/15 for Supply Of Staff Uniform

987,328,892.00 Goods Ongoing 100% 100% 38% ongoing 37.60%

30 Namtumbo District Council

LGA 1 Periodic Maintenance Of Lusewa-Msisima-Matepwende Road, Spot Improvement Of Ligera Matepwende Road And Routine Maintenance Maintenance Of Mwangaza-Limamu Road In Namtumbo Dc

165,853,000.00 Roads Ongoing 83% 88% 74% ongoing 69% 67.80%

Namtumbo District Council

LGA 2 Periodic And Routine Maintenance Of Ligera - Mtelamwai Road

209,975,000.00 Roads Ongoing 79% 90% 89% ongong 88% 77.80%

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Namtumbo District Council

LGA 3 Rehabilitation Of Bridge Approaches Along Libango-Kiburungutu Road, Mtwarapachani-Mlambichumba-Libango Road, Kumbara-Mbimbi Road And Ulamboni-Namali Road

146,700,000.00 Roads Ongoing 83% 90% 89% ongoing 88% 78.60%

Namtumbo District Council

LGA 4 Upgrading Of Namtumbo Town Roads 1.00km To Surface Dressing Standard 299,992,006.00 Roads Ongoing 83% 90% 75% ongoing 77% 71.40%

Namtumbo District Council

LGA 5 Proposed Construction Of Commercial Building (Rest House) At Namtumbo Dc) 109,999,935.00 Building Ongoing 75% 88% 71% ongoing 77% 68.80%

Namtumbo District Council

LGA 6 Construction Of Piped Water Supply From Rwinga Stream To Namtumbo Town

294,459,000.00 Building Ongoing 88% 88% 84% ongoing 78% 74.40%

31 Iramba District Council

LGA 1 Routine Maintenance along Mbelekese- Misuna - Tumuli Road (10.5km), Routine Maintenance along Milade- Kaselya (9km), Kaselya - Nsonga Road (6km) and Construction of Structures along Mbelekese- Misuna - Tumuli and Songambele- Misuna - Tumuli Roads - LGA/118/2014/2015/W/15 - LOT 1

225,487,000.00 Roads Ongoing 77.3% 75.0% 41.2% ongoing 37.5% 46.20%

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Iramba District Council

LGA 2 Period Maintenance along Kitusha - Kinampanda Road (4km), Routine Maintenance along Kinakumi - Kinampanda (21km),Kinakumi - Kisana Road (5km) and Construction of Structures along Kinakumi - Kinampanda Roads- LGA/118/2014/2015/W/15 - LOT 2

99,266,000.00 Roads Ongoing 70.0% 75.0% 50.0% ongoing 37.5% 46.50%

Iramba District Council

LGA 3 Routine Maintenance along Kiomboi - Uwanza - Kinampanda Road (15.34km), Spot Improvement along old Kiomboi - Kisimba - Kisiriri (5.6km) and Construction of Structures along old Kiomboi - Kisimba - Kisiriri Roads

61,945,500.00 Roads Ongoing 77.3% 77.5% 50.0% ongoing 33.3% 46.53%

Iramba District Council

LGA 4 Provision of Services in Strenghening Producers, Processors and Markerting Associations In Iramba District Council

237,640,000.00 Consultancy Ongoing 76.9% 43.8% 0.0% ongoing INA 19.76%

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32 Nanyumbu District Council

LGA 1 Contract No. LGA/NDC/088/W/2012/2013/07 For Construction Of Borehole Pumped Piped Scheme (Pump House, Pipe Network, Water Tank, Water Points Rain Water Harvest System And Supply And Installation Of Submersible Pump And Diesel Engine) For Chipuputa Village In Nanyumbu District

217,838,502.00 Building Completed 75.0% 75.0% 85.3% 87.5% 90.0% 84.3%

Nanyumbu District Council

LGA 2 Contract No. NDC/LGA/088/WATER/2013/2014/08 For Construction Of Dam Pumped Piped Scheme (Pump House, Pipe Network, Water Tank, Water Points, Chambers, Installation Of Pump And Generator And Rain Water Harvest) For Mara, Sengenya And Ngalinje Village

1,276,023,316.00 Building Completed 79.2% 67.4% 68.4% 50.0% 80.0% 73.3%

Nanyumbu District Council

LGA 3 Contract No. LGA/NDC/088/IDC/ROADS/2014/2015/06 For Routine Maintenance Along Nandete-Holola, Maratani-Lipungu, Chitowe-Mtwatawa, Holola-Minanje, Mikuva-Ngupe And Nakole - Kisiwa Roads

42,980,000.00 Roads Completed 75.0% 73.9% 73.3% 83.3% 90.0% 81.4%

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Nanyumbu District Council

LGA 4 Contract No. LGA/NDC/088/ROADS/2014/2015/03 For Periodic Maintenance Along Mikangaula-Namajani And Routine Maintenance Along Mikangaula-Namajani, Nangaramo-Mkambata, Komundi-Ndangaramo And Kamundi-Mkwajuni Roads In Nanyumbu District

64,804,000.00 Roads Ongoing 80.0% 69.6% 78.6% ongoing 83.3% 72.0%

Nanyumbu District Council

LGA 5 Contract No. LGA/NDC/088/ROADS/2014/2015/02 For Periodic Maintenance Along Mangaka-Nachingwea Boarder And Routine Maintenance Along Mangaka-Nachingwea Boarder, Sengenya - Masyelele And Spot Improvement Along Bomani Road-Soweto, Sautimoja-Nampungu And Bomani Roads In Nanyumbu District

207,977,500.00 Roads Completed 75.0% 69.6% 69.2% 50.0% 91.7% 77.5%

Nanyumbu District Council

LGA 6 CONTRACT NO. LGA/NDC/088/ROADS/2014/2015/07 For Construction Of Bridge Along Chungu -Lukwika Road And Construction Of Culverts Along Polisi-Ccm, Ngupe - Chitowe And Romani - Soweto Roads

68,382,500.00 Bridge Completed 85.0% 73.9% 62.5% 87.5% 80.0% 77.6%

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33 National Housing Corporation

PA 1 Proposed Construction of and Renovation of NHC properties on Plot No 285- Bubu street Tandika flat; Contract No.: PA/066/2013-2014/HQ/W/43

1,321,686,385.41 Building Ongoing 88.0% 87.0% 52.0% ongoing 50.0% 56.7%

National Housing Corporation

PA 2 Construction of commercial Complex building for NHC to be built on Plots No. 53-59W at the junction of Boma/Miembeni roads, Singidani - Singida; Contract No.: PA/066/2013-2014/HQ/W/51:

3,411,830,111.00 Building Ongoing 73.0% 83.0% 53.0% ongoing 64.0% 59.1%

National Housing Corporation

PA 3 Proposed Construction of Commercial Building on Plots No. 12E-16E at the junction of Mkendo/Kusaga/Indhira street, Phase II, Musoma Municipality- Mara Region; ContractNo.:PA/066/2013-2014/HQ/W/50

3,358,239,536.62 Building Ongoing 81.0% 83.0% 61.0% ongoing 80.0% 68.7%

National Housing Corporation

PA 4 Proposed construction of affordable housing project for NHC to be built on Plot No. 167-176 block A Buswelu in Ilemela Municipality Mwanza, Phase I; ContractNo.:PA/066/2013-14/HQ/W/05 Lot 2

2,972,205,198.97 Building Ongoing 81.0% 81.0% 53.0% ongoing 75.0% 64.9%

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National Housing Corporation

PA Igunga Affordable housing project-Tabora (Under Force Account Arrangement-Internal; Contract No. PA/066/2013-2014/HQ/W/29

1,578,370,000.00 Building Ongoing 73.0% 43.0% 37.0% ongoing 65.0% 52.3%

National Housing Corporation

PA Zongomela-Kahama Affordable housing project in Shinyanga Region; ContractNo.:PA/066/2013-2014/HQ/W/24

2,408,804,210.50 Building Ongoing 73.0% 43.0% 37.0% ongoing 65.0% 52.3%

National Housing Corporation

PA 5 Buhare Affordable housing project Musoma; Contract No.: PA/066/2013-2014/HQ/W/21

2,622,964,084,083.40 Building Ongoing 73.0% 43.0% 40.0% ongoing 70.0% 54.9%

34 Karatu District Council

LGA 1 Contract No. LGA /002/2014/2015/KDC/W/18-21/ Lot 3 for Periodic Maintenance, Routine Maintenance & Spot Improvement at Endabash -Buger- Kansay Doad, Endabash-Manyara road, Bassodawish-Endamarariek Road

165,188,950.00 Roads Completed 90.0% 88.0% 81.0% 38.0% 77.0% 77.6%

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S/N ENTITY PROJECT NAME CONTRACT AMOUT (TSHS) CATEGORY STATUS PLANNI

NG PROCUREM

ENT CONSTRUCT

ION COMPLETION

& CLOSURE QUALITY PROJECT OVERALL

Karatu District Council

LGA 2 Contract No. LGA /002/2014/2015/KDC/W/18-21/ Lot 3 for Periodic Maintenance, Routine Maintenance & Spot Improvement at Karatu Town Road -Karatu Ganako RoadPM, RM & SI at Karatu Town Road -Karatu Ganako Road

115,283,500.00 Roads Completed 95.0% 93.0% 79.0% 31.0% 80.0% 79.2%

Karatu District Council

LGA 3 Contract No. LGA/002/HQ/2014-2015/Q/OWS/01 for Construction of Public Toilet at Bus Stand Karatu

35,858,900.00 Building Ongoing 41.0% 55.0% 13.0% ongoing 55.0% 38.3%

Karatu District Council

LGA 4 Contract No. LGA/002/2013/2014/W/RF/10, 11, 12 Lot No.5 for PM, RM & SI of Karatu Town Roads, Karatu-Ayalabe-Ganako

186,227,600.00 Roads Completed 80.0% 93.0% 71.0% 38.0% 81.0% 75.7%

Karatu District Council

LGA 5 Contract No. LGA/002/2013/2014/W/RWSSP/2 for Construction of Pumping Scheme in Buger Village

363,927,500.00 Building Ongoing 95.0% 94.0% 68.0% ongoing 79.0% 73.6%

35 Rungwe District Council

LGA 1 Contract No. LGA/071/2014/2015/W/03 Lot No. 5 for Periodic Maintenance Works Along Masebe – Bujela – Kiloba (3km), Bulongwe – Ngaseke – Igembe (7.5km) and Routine Maintenance Works Along Bujela –

215,541,691.00 Roads Ongoing 77.0% 71.0% 54.0% ongoing 55.0% 55.3%

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S/N ENTITY PROJECT NAME CONTRACT AMOUT (TSHS) CATEGORY STATUS PLANNI

NG PROCUREM

ENT CONSTRUCT

ION COMPLETION

& CLOSURE QUALITY PROJECT OVERALL

Kiloba (8km) Road Section Rungwe District Council

LGA 2 Contract No. LGA/071/2014/2015/W/03 Lot No. 3 for Spot Improvement Works Along Kyela Road – PCCB Offices (1km) and Periodic Maintenance Works along Soko Mjinga – Mafula Soap (1.5km), TANESCO – Majengo (1.5km) Kiwira Road – Nbembela (2.5km) and along Bomani – Msasani (1.6km) Road Section

136,578,008.50 Roads Completed 77.0% 72.0% 63.0% 38.0% 53.0% 60.2%

Rungwe District Council

LGA 3 Contract No. LGA/071/20’14/2015/HQ/W/33 for Emergency Rehabilitation Works along Makandana – Kapugi (2km) and Maebe – Mpuguso TTC (2km) Road section

61,277,700.00 Roads Completed 77.0% 69.0% 59.0% 33.0% 53.0% 58.6%

74.2% 79.7% 59.6% 53.1% 76.3% 64.5%

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ANNEX 5-8: WEAKNESSES OBSERVED DURING PLANNING, DESIGN AND TENDER DOCUMENTATION STAGE

Procuring entity Audit finding

Kigoma District Council

• It was observed that bidding documents contained inadequate drawings;

• There was works re-scoping undertaken on site which indicated that planning was not adequately done

• There was over sighting of estimates to the quantities in the BOQ that impacted to overpayments;

• Design calculations for drainage structures were not available.

Kibondo District District

• It was observed that bidding documents contained inadequate drawings;

• There was works re-scoping undertaken on site which indicated that planning was not adequately done;

• There was over sighting of estimates to the quantities in

the BOQ that impacted to overpayments;

• Design calculations for drainage structures were not available

Kinondoni Municipal Council

• Quantities were prepared without carrying out detailed engineering designs for tender No. LGA/017/2014-2015/W/-193 for Upgrading of Masjid Quba Road (1.9Km), tender No. LGA/017/2013-2014/W/02/ Lot 02 for the Upgrading of Biafra–France Embassy Road (0.85Km), Tender No. KMC/35/2012 for Upgrading of Part of Mkwajuni – Mango Road (1.0Km) from Gravel to Double Surface Dressing and tender No.LGA/017/2013/2014/W/06 for Upgrading of Lion Road (0.80Km) from Gravel to Tarmac Level. On the other hand, specifications relevant for this projects were not prepared hence resulted into unrealistic BOQs and drawings relating to the projects;

• The audit assessment revealed that Road maintenance software was not used but strip maps were prepared for tender No. LGA/017/2014-2015/W/02/Lot 04 for Periodic Maintenance of Tegeta Masaiti – Namanga Street Road (1.9Km). On the other hand specifications relevant for this project were not prepared hence resulted into unrealistic BOQs and drawings related to this project;

• It was observed that the horizontal and vertical

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alignments, existing and road finish design levels, cross sections, materials investigation reports, traffic volume report, existing subgrade properties reports for tender No. LGA/017/2013-2014/W/02/ Lot 02 for the Upgrading of Biafra–France Embassy Road (0.85Km) were not effectively prepared.

Mwanza City Council

• There were no specifications for tender No. LGA/089/2013/2014/W/03 for Piped System and Civil works for Fumagila Villages, instead the preamble to the BOQ was inserted as specifications to the project.

Misungwi District Council

• In the tender documents for the sampled works tenders it was observed that there no designs and cross section drawings of the roads;

• Tender No.LGA/093/2013/2014/W/H/51 for Completion, Construction and Rehabilitation of Staff House at Kanyelele Dispensary was not contained in the APP contrary to Reg. 69(2) of Public Procurement Regulations, 2013.

Rorya District Council

• Analysis of feasibility studies for all works projects implemented did not base on appropriate road maintenance software (such as HDM 4, DROMAS or RMMS);

• Technical Specifications were missing in the tender and contract documents for all sampled projects

Tarime District Council

• Analysis of feasibility studies for all works projects implemented did not base on appropriate road maintenance software (such as HDM 4, DROMASor RMMS) which implies that there was no road inventory and condition survey input were used;

• The Engineer’s Cost Estimate documents were not prepared for all projects implemented.

Ukerewe District Council

• Analysis of feasibility studies for all works projects implemented did not base on appropriate road maintenance software (such as HDM 4, DROMASor RMMS) which implies that there was no road inventory and condition survey input were used;

• The Engineer’s Cost Estimate documents were not prepared for all projects implemented.

Bariadi District Council

• Analysis of feasibility studies for all works projects implemented did not base on appropriate road maintenance software (such as HDM 4, DROMASor RMMS) which implies that there was no road inventory and condition survey input were used;

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Procuring entity Audit finding

• Tender No.LGA/108/2014/2015/DH/05 for Construction of RCH Block at Kishapu District Hospital had incomplete drawings and there was no detailed architectural drawings.

• Analysis of feasibility for all project work implemented

did not base on appropriate road maintenance software (such as HDM 4, DROMASor RMMS) which implies that there was no road inventory and condition survey input were used.

Bunda District council

• Tender numbers appeared in the tender documents were not the same as the one indicated to the Annual Procurement Plan;

• Analysis of feasibility studies for all works projects implemented did not base on appropriate road maintenance software (such as HDM 4, DROMASor RMMS) which implies that there was no road inventory and condition survey input were used.

Maswa District Council

• Analysis of feasibility studies for all works projects implemented did not base on appropriate road maintenance software (such as HDM 4, DROMASor RMMS) which implies that there was no road inventory and condition survey input were used.

Mkalama DC • Tender documents for Tender No. LGA/147/2014 - 2015/W/01 Lot 1 for proposed periodic maintenance of roads at Kidarafa-Ukhandi-Nkalakala villages (18 Km) and Routine maintenance of roads at Iguguno-Ukhandi(4.5 Km); Kidarafa-Malaja-Nkalakala (18Km); Kikhonda-Kinampundu-Ilunda (18km); Ishenga Kenke- Kinampunda (18.7 Km) and Iguguno-Kikhonda(12.65km) were not approved by TB as required by Reg.185 of GN No.446 of 2013;

• It was observed that the bidding document and contract document for tender No. LGA/147/2014 - 2015/W/01 were not appropriately filled. This was observed on the Bid Data Sheet (BDS) Clause 42.1 where it was indicated that “Advance payment is not applicable” while the Special Condition of Contract (SCC) Clause 54.1 stated that “the amount of advance payment shall be 15% of the contract price”

Ikungi District Council

• The Special Conditions of Contract did not specify the type of Performance Security to be submitted by the successful tenderer as required by Reg. 29(4) of GN No. 446 of 2013.

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Procuring entity Audit finding

Muleba District Council

• Technical specifications for tender No. LGA/037/KGR/2014-2015/MLB/CDG/W/31 for Construction of District Council Fence, Phase II at Muleba Head Office were not effectively prepared

Ushetu District Council

• For all five sampled tenders, Clause.14 of SCC (Clause 29.1 of GCC) instructs the Contractor to submit program of works 14 days after starting of works. Also Clause 14 of SCC (Clause 29.3 of GCC) instructs the contractor to update the program of works every 30 days or otherwise the project manager to withheld TSh.600,000. However, there was no proof of adherence to this instruction.

Ilala Municipal Council

• The designs were impartially prepared and road maintenance software was not used during design stage. Strip maps to show where intervention was to be done were missing

KASHWASA • Quality Assurance Plans were not prepared in all sampled projects

TANAPA • Drawings provided in the tender documents were partial and incomplete (strip maps and design cross section drawings were missing in road projects and only ground plans were provided for building projects )

Mpanda District Council

• Detailed drawings for doors and windows with specifications were not provided for Contract No. LGA/099/2014/2015/W/WATER/03 for Construction of Mechanized Piped Water Schemes and Civil Works at Igagala Village. Also there was no evidence of Tender Board approval of the tender documents before issuance to bidders.

Mbozi District Council

• Confirmation of funds availability and approval to proceed with procurement by AO were not done

TANROADS Simiyu

• It was observed that in Contract No. AE/001/2014-15/SMY/W/34, Strip maps were prepared and drawings were complete. However, bridge approach signs at Nkoma Drift was not provided for during design stage;

• Planning, design and tender documentation for Contract No. AE/001/2014-15/SMY/G/20 was well managed however, the estimated budget was 12.3% lower than the awarded contract amount.

• Contract No. AE/001/2014-15/SMY/W/09; the

intervention was incorrectly named (PM and upgrading). Exiting and finished design levels were not prepared.

• It was observed that in Contract No. AE/001/2014-

15/SMY/W/07 and Contract No. AE/001/2014-15/SMY/W/12, designs were prepared, instead

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standard drawings for Box Culverts issued by the Ministry of Works were used. On the other hand, the reinforcement steels for the 3-Cells 2.5mx5.0m Box Culverts were underestimated by about 8tons (equivalent to about 35% of the actual requirements) in the contract No. AE/001/2014-15/SMY/W/07. In the contract No. AE/001/2014-15/SMY/W/12 the geotechnical surveys (even by trial pits to determine soil properties within a depth of 2m) were not conducted. The soil properties encountered during excavation is of soda ash which is detrimental to cement and therefore concrete to the proposed 9 Cells-2.5x5.0m Bridge.

TANROADS Katavi

• Strip maps were missing in Contract No. TRD/KTV/T.009/2014-15/09 which is an indication that road inventory was not done. Designs for Periodic Maintenance were also not prepared. In addition, BOQs prepared were shallow and not in compliance with standard BOQs;

• In the Contract No. TRD/KTV/T.009/2014-15/09, No. TRD/KTV/R.548/2014-15/23; and No. TRD/KTV/R.562/2014-15/24 it was observed that Road maintenance software was not used during design stage. Designs for PM were also not prepared. In the absence of designs, Engineer’s estimates are likely to be unrealistic.

Iramba District Council

• In the Tender No.LGA/118/2014/2015/W/15 - LOT 1-3 and tender no. MIVRAF/RAS/GC/VOL1/19 it was observed that the projects were not contained in the APP and Tender notices were not submitted to the Authority for advertisement as required by Reg. 19 (1) of PPR, 2013.

Nanyumbu District Council

• There was no evidence of tender boards' approval of tender documents for all sampled tenders;

• Inaccuracy and incompleteness of design and calculation were observed in Contract No. LGA/NDC/088/ROADS/2014/2015/02. Some design data (road distance along the chain ages) were not well captured in the Bills of Quantities.

National Housing Corporation

• In Contract No: PA/066/2013-2014/HQ/W/51 there was inadequate planning and delay in decision making on the proper plot where the building is to be constructed. This led to suspension of works with a reason of “changing of a plot to build the structure” while the site handing over had been done and works started. Suspension of works delayed the works for more than 60 days and attracted some compensation events as per the SCC & GCC clause 32.1, 34.1 and 46.1. Hence loss of a total of TZS. 32,672,520.77, the amount being

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Procuring entity Audit finding

compensation for loss evaluated and verified by NHC worth TZS. 20,030,590.77 and TZS. 12,641,930.00 for the works done prior to suspension of works. Quantities for some items were overestimated leading to an overestimated amount of works totaling to TZS. 34,362,000.00;

• In Contract No: PA/066/2013-2014/HQ/W/50 quantities for some items were overestimated leading to an overestimated amount of works totaling to TZS. 35,130,000.00.

Namtumbo District Council

• In the tender No. LGA/105/2014/2015/W/RF/05, Gravel quantities for the Periodic Maintenance of Lusewa-Msisima-Matepwende road, Spot Improvement of Ligera Matepwende road and Routine Maintenance of Mwangaza-Limamu road (Package 05) and Periodic & Routine Maintenance of Ligera - Mtelamwai road (Package 07) were underestimated at design stage;

• In the tender No. AE/044/NMT/2014/2015/W/01, the designs was not poorly prepared whereby, 100 m3 surface water storage tank at the source whose diameter is 6m and revised height of 3.25m was designed with a single leaf of 460 mm reinforced block works.

Tanzania Railway Limited

• In the Contract No: PA/113/2014/W/182 for the procurement of works for restoration and protection of railway track at Munisigara - Maganza Km 300/0 – 3, 302/7-8 and Maganza - Kidete Km 315/1-9, the PE did not carry out any design despite the works involving the relocation of the track.

• No feasibility study was conducted relating to Contract No: PA/113/2014/G/51 for remanufacturing of 8 no 88 class locomotives to assess the best alternative among the diesel locomotives found in the market before developing specifications.

• No feasibility study was conducted relating to contract No: PA/113/2012 – 13/ME/G/0E/13 for supply of 25 (twenty five) new ballast hopper bogie wagons to assess the best alternatives among the ballast hoppers wagons found in the market before developing design and specifications. Specifications were not adequate and were too general especially on quality and workmanship aspects.

• No feasibility study was conducted relating to contract No: PA/113/2012-13/ME/G/OE/014 for supply of 274 new goods wagons to assess the best alternatives among the new goods wagons found in the market before

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Procuring entity Audit finding

developing specifications. The Statement of requirements was brief and did not include all the requirements such as spares. Specifications were not adequate and were too general especially on quality and workmanship aspects. There were also inconsistency between the specifications and the drawings.

• No feasibility study was conducted relating to contract No: PA/113/2012 – 13/ME/G/OE/007 for supply of 34 new brake vans bogie wagons to assess the best alternatives among the new brake vans bogie wagons found in the market before developing specifications. Specifications were not adequate and were too general especially on quality and workmanship aspects. There were also inconsistency between the specifications and the drawings such as Clause 2 of principal dimensions specified the distance between the bogie centers as 8700mm while on the drawing the distance was 8690 mm.

• No feasibility study was conducted relating to contract No: PA/113/2012 – 13/ME/G/0E/008 for supply of 22 new passenger coaches to assess the best alternative among the passenger coaches found in the market before developing specifications.

• The project costs for contract No: PA/113/2012-13/ME/G/OE/010 for REMANUFACTURING OF 8 NO 88 CLASS LOCOMOTIVES was estimated to USD 11,000,000.00, however there was no detailed costs estimate.

• No feasibility study was conducted relating to contract No: PA/113/2012 – 13/ME/G/0E/006 for SUPPLY OF 13 (THIRTEEN) NEW 2000 2200 HORSE POWER DIESEL LOCOMOTIVES to assess the best alternatives among the 2000-2200HP Diesel Locomotives found in the market before developing specifications. The specifications were discriminative as the specified type of engines to be used in the manufacturing of the locomotives did not provide room for equivalent engines hence eliminating some of the prospective bidders contrary to section 62(3) and 73(4) of PPA 2004 and Regulation 9(b) and 22 of GN NO. 97 of 2005.

• No feasibility study was conducted relating to contract No: PA/113/2012-13/ME/G/OE/014 for SUPPLY OF 1 NO. TAMPING LEVELING LINING MACHINE AND TRACK VIDEO SYSTEM to assess the best alternatives among the tamping machine found in the market before developing the specifications. The tender document did not contain a Statement of requirements.

• No feasibility study was conducted relating to cntract

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No: PA/113/2012 – 13/ME/G/0E/009 for SUPPLY OF 100 TON NEW RAIL MOUNTED BREAK DOWN RESCUE CRANE to assess the best alternatives among rail mounted cranes found in the market before developing specifications. The crane was estimated to cost USD 5,700,000.00. However there was no detailed cost estimates

Kyela District Council

• Planning and inventory in the contract No. LGA/KDC/074/2014/2015/W/29 for Periodic Maintenance of Njugilo – Malangali Road 3.5 km was not done properly which resulted in overestimation of quantities.

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ANNEX 5-9: WEAKNESSES OBSERVED DURING PROCUREMENT PROCESS

Procuring

entity Audit finding

Kigoma District Council

• Evaluation of tenders was not done fairly in tender No. LGA/043/2014/2015/HQ/W/01 for periodic Maintenance of Chankabwimba – Mkongoro, Spot Improvement of Pasua Biotale and Routine Maintenance of Bitale – Bubango Roads. The Arithmetic error of Tshs 3,720,000 was noted to M/S Buyenza but during detailed examination and comparison of bid the error was increased to 41,652,500.00 by the evaluation committee. There was no justifiable reasons for the increase made by the evaluation team;

• It was observed that contract awards information were not published to the public as required by Section 60(12) and Reg. 20, 236 and 309(4) of GN No. 446 of 2013;

• Contract No. LGA/043/2014/2015/HQ/W/01 for periodic Maintenance of Chankabwimba – Mkongoro, Spot Improvement of Pasua Biotale and Routine Maintenance of Bitale – Bubango Roads was awarded beyond the tender validity period contrary to Reg. 62, 192 and 232(2) of GN. No. 446 of 2013;

• There was no evidence to attest if unsuccessful bidders were notified of the results of the tender process as required by Sec. 60(12&14) of PPA, 2011 and Reg. 235 of GN. No. 446 of 2013

• In the tender No. LGA/043/2014/2015/W/01 for the Periodic Maintenance of Kamara – Nkungwe Road (6km) and Routine Maintenance of Mahembe – Nkungwe Road it was observed that the valuation criteria were not fairly applied to all bidders. During the evaluation of bids the evaluation team indicated that only bidder No.1, M/s Hafram Construction Co. Ltd had an arithmetic error of TZS 22,071,000 which made their bid price to be TZS 88,936,000. No Arithmetic Error was detected to Bidder No. 6, M/S Buyenzi General Supplies Ltd. However during examination of bid and price comparison M/S Buyenzi with bid price of TZS 86,786,000 appeared to have an error of TZS 16,163,500 which made their bid price to read TZS 102,949,500. This arithmetic error for M/S Buyezi contradicted the finding from the evaluation team which indicated that only Hafram Construction was found with an arithmetic error. This implies that the evaluation team introduced an error to M/S

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Buyenzi to deny them award since they were the one with the lowest bid price.

Kibondo District council

• There was no evidence availed to show if the proposed members of Negotiation team by PMU were approved by the AO pursuant to Section 76(1) of PPA, 2011 and Reg. 226 of GN. No. 446 of 2013 for all tenders that were negotiated;

• Negotiations minutes for all negotiated tenders were not approved by the TB contrary to requirements of Regulation 228 of GN No. 446 of 2013;

• All documents that were used on procurement process including evaluation report, the list of the approved shortlisted suppliers minutes for approval of award of contract and the contract document relating to the contract for Renovation of staff houses at Nengo Primary School Special need were not available and there no justifiable reasons for their absence;

• The Council did not communicate contract awards decisions to PPRA for publication in the procurement journal and website contrary to the requirements of section 60(12) and Reg. 20, 236 and 309(4) of GN No; 446 of 2013

Kinondoni Municipal Council

• The Council did not issue the notice of intention to award a contract in the tender No. LGA/017/2014-2015/W/193 for Upgrading of Masjid Quba Road (1.9Km) as required by Reg. 231(2) of GN No. 446 of 2013.

• The detailed evaluation for tender No. LGA/017/2014-2015/W/02/Lot 04 for Periodic Maintenance of Tegeta Masaiti – Namanga Street Road (1.9Km) was not done to all bidders who were found to be substantially responsive at preliminary stage; instead after correction of errors, the bidder who was ranked the highest was subjected to post qualification, which the audit team observed that what was done was not post qualification but rather a detailed evaluation. This was contrary to the requirements stipulated in the tender documents and the requirements of Section 74 of PPA 2011 and Reg. 202 (3) & (4), 203, 297 and 299 of GN No. 446 of 2013.

• Procurement records for Tender No. KMC/35/2012 for Upgrading of Part of Mkwajuni – Mango Road (1.0Km) from Gravel to Double Surface Dressing were not availed; hence procurement stage was difficult to be assessed.

• Tender No.LGA/017/2013-2014/G/27 for Supply of

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Procuring entity Audit finding

One Brand New Chain Excavator was planned to be procured using National Competitive Tendering method, but the method of procurement was changed to single source. However, there was no justification for use of single as required by Reg. 159 of GN No. 446 of 2013. In this tender, evaluation committee was not formed hence tender evaluation was not carried out. The contract was awarded through circular resolution on 29th September 2014 and was signed by only two TB members contrary to the requirements of Reg. 58 (4) of GN No. 446 of 2013 which requires half of the members of the tender board to form a quorum of the decision to be made through circular resolution..

RAS Dar es Salaam

• The contract document for tender No. RAS/020/2014/2015/W/05 for Renovation of Isolation Treatment Ward and Lounge at Temeke Hospital was sent to AG for vetting after signing contrary to to the requirements of Section 60 (9) of PPA, 20011

Mwanza City Council and Misungwi District Council

• The Evaluation reports for all sampled tenders did not include necessary and relevant attachments such as tender adverts, minutes of bid opening, minutes and technical details of the post qualification evaluation;

• None of the contract awards were submitted to PPRA for publication in PPRA’s website and Journal as required by Reg. 10(2), 235(2) & 236 of the GN. No.446 which requires the results of tender awards to be published in the Authority’s website and Journal.

Misungwi District Council

• The quality and completeness of tender evaluation Reports including the format was poor and inappropriate and was contrary to the standard Evaluation Reporting procedures ;

• Confirmation on correction of arithmetical errors of Tshs. 4,242,400.00 were not sought to the bidder for tender No. LGA/093/2013/2014/W/RF/06 for Periodic Maintenance of Ng'ombe - Wanzamiso-Mitindo 13Km Road.

• No evidence of Ratification/Vetting of the Draft Contract by the legal Officer for tender No. LGA/093/2014/2015/W/RF/07 for Periodic Maintenance of Misungwi Township Roads as required by Reg. 60(10) GN No. 446 of 2013

Ukerewe District Council

• The Post-qualification criteria used to reject the lowest evaluated bid M/s New Century for tender No. LGA/092/2014-2015/W/RF/03 for Periodic Maintenance and spot Improvement along Bukindo –

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Murutunguru Road 7.2 km was neither in the tender document nor in the PPA 2011 and its Regulations of 2013;

• copies of the award letters were not sent to the Chief Executive Officer of the Authority, the Controller and Auditor General, the Attorney General and the Internal Auditor General as required by Reg. 232 of the PPR 2013;

• Unsuccessful bidders were not notified of tender results as required under Sec. 60(12&14) of PPA, 2011 and Reg. 235 of GN. No. 446 of 2013.

• The evaluation report did not follow precisely PPRA's Evaluation Guidelines

Bunda District Council

• The contract document for contract No. LGA/065/2014-2015/W/RF/04 for Routine maintenance, spot improvement, periodic maintenance and installation of culverts along Bulamba-Mwiluluma Road 21Km and Namhula-Muranda Road 15Km did not indicate the contract duration;

• None of the awards were submitted to PPRA for publication in PPRA’s website and Journal as required by Reg. 10(2), 235(2) & 236 of the GN. No.446 which requires the results of tender awards to be published in the Authority’s website and Journal, Government Gazette;

• For all sampled tenders, members of evaluation team signed personal covenant after the completion of evaluation exercise.

Mkalama District Council

• Contracts award information were not published in the Tender Portal and TPJ as required by Reg. 236 of GN No. 446 of 2013

Ikungi District Council

• Contracts award information were not published in the Tender Portal and TPJ as required by Reg. 236 of GN No. 446 of 2013

Muleba District Council

• Tender No. LGA/037/2013-2014/MLB/WSDP/48 for Construction of Gravity Piped Water at Ruhanga Village in Muleba District Council was advertised for only 13 days instead of 21 days contrary to the 8th Schedule of PPA 2011. (Advertisement was made on Daily News and Habari Leo dated 25/04/2014 and the deadline was on 08/05/2014)

• Tender No. LGA/037/KGR/2014-2015/MLB/CDG/W/31 for Construction of District Council Fence Phase II at Muleba Head Office was awarded beyond tender validity period. The award was made 126 days from the date of bid opening and there was no any extension of bid validity period;

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• The contract No. LGA/037/KGR/2014-2015/MLB/RDF/W/09 for Routine Maintenance of Kamishango - Nyawaibaga 21km and Periodic Maintenance of Kamishango - Nyawaibaga 5km was awarded beyond the tender validity period. The award was made 60 days from the date of tender opening and there was no extension of bid validity;

• The contract No. KGR/LGA/037/2013-2014/MLB/W/10 for Construction of Karutanga Water Supply Networks and Associated Appurtenance Structures in Muleba District Council did not contain specifications, drawings and power of attorney as part of the contract described in Form of Agreement. The contract data was also irrelevant.

Ilala Municipal Council

• Evaluation reports did not include all relevant and necessary attachments such as tender advert and minutes of tender opening;

• Special Conditions of Contract (SCC) were incorrectly customized i.e. they were not aligned with the General Conditions of Contract (GCC). They were also incompleteas they missed some of the clauses which required customization.

Kashwasa • Tender No. AE/063/2013/2014/W/5 for Extension of water Transmission Network to Villages (Lot 2; Lyabusalu, Mwajiji and Ichingo Villages) was not properly evaluated as one tenderer was disqualified without justifiable reasons;

• In the tender No. AE/063/2013/2014/W/5 for Extension of water Transmission Network to Villages (Lot 5; Mwasekagi and Mwakatola Villages), the evaluation committee recommended the award of contract to the lowest evaluated bidder M/S Clear Vision Construction Co. Ltd at TZS 454,177,000 VAT exclusive. However, due to improper Tender Board decision, the tender board awarded the contract to M/S Fema Builders Ltd at TZS 463,651,973 VAT exclusive which resulted into an increased procurement cost to PE by Tshs. 9.474,973.

TANAPA • The Evaluation reports lack necessary and relevant attachments such as tender adverts, minutes of bid opening, minutes and technical details of the post qualification evaluation;

• During negotiations, records of negotiations minutes were not taken; instead procedural form [No. 14A] was used and incorporated in the contract documents contrary to Reg. 228 229 GN. No. 446 of 2013

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Mpanda District Council

• Letter of Intention to award the Contract No. LGA/099/2014/2015/W/IRR/02 for Construction of Mwamkulu Irrigation Scheme (Kabage Hamlet) in Mpanda DC was not issued par4tcipating tenderers.

• Project sign boards for Contract No. LGA/099/2014/2015/W/RD/01 for Periodic Maintenance 8km and Routine Maintenance 10km of Mishamo Complex Roads were not in place but T.Shs. 2,000,000.00 had been paid on this item

Mbozi District Council

• There was delay in the tenders opening for Contracts No. LGA/073/2014/2015/RF/28/LOT 1 TO 7. The deadline for submission of bids was 29th July, 2014 while opening of bids was done in 31st July, 2014;

• Minutes of tender opening were not prepared and attached to evaluation reports in sampled contracts;

• Notice of intention to award contracts and notification to unsuccessful bidders were not done to all awarded contracts.

• Arithmetic errors founded during tenders evaluation were corrected but were not communicated to the bidders for acceptance or rejection;

• Evaluation of tender No. LGA/073/2014/2015/W/WB/01/LOT 9 was not done properly resulting into award to unqualified bidder M/s Chars & Godfery who submitted qualification information’s of another bidder M/s Amsho General Enterprises

TANROADS Simiyu

• TB award decision for Tender No. AE/001/2014-15/SMY/W/12 was not correct because the tender board changed the evaluation criteria after submission of bids which was contrary to Clauses 11.1(h) & 12.3 of Tender Tender Sheet. It also contravened Sect. 72(1) of PPA 2011, Reg. 211 of GN No. 446 of 2013.

TANROADS Katavi

• For all tenders; detailed evaluation was not done instead after preliminary and correction of errors, the highly ranked was subjected to post qualification which contravened Sect. 74 of PPA of 2011, Reg. 202 (3) & (4), 203, 224(1), 297 & 299 of GN No. 446 of 2013. In addition, Unsuccessful bidders were not notified as required by Reg. 235(1) of GN No. 446 of 2013

Iramba District Council

• Contracts for Tender No.LGA/118/2014/2015/W/15 - LOT 1-3 were signed outside the bid validity period of 120 days set in the instruction to bidders. Requirements for submission of Performance security contained contradicting information contrary to TDS clauses 40.1

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& 40.2. Bidders were instructed that performance securities will be 10% of the contract price in form of Bank Guarantee; however in TDS clause 54.0 bidders were instructed that performance securities will be 10% of contract price in form of Bank guarantee or 30% in form of bond;

• The Evaluation Report for Tender No.LGA/118/2014/2015/W/15 - LOT 1-3 and MIVRAF/RAS/GC/VOL1/19 missed important attachments such as Minutes of Tender Opening and copy of tender advertisement. The AO failed to send copies of award letters to the Chief Executive Officer of the Authority, the Controller and Auditor General, the Attorney General and the Internal Auditor General as required by Reg. 232 of the PPR 2013. Letters of Intention to award were not issued to all participating tenderers as required by Section 60 (3) of PPA, 2011.

• Procurement process for the following projects took long period from date of bid submission up to contract signing; for instance Tender No.LGA/118/2014/2015/W/15 - LOT 1 & 3 (217 days), LGA/118/2014/2015/W/15 - LOT 2 took 201 days while Contract No. MIVRAF/RAS/GC/VOL1/19 took 311 days

Nanyumbu District Council

• For all tenders, No evidence showing if bidders were notified on acceptance of error correction as per Reg. 207(20(a) and 210(b) of the PPR 2013, and No evidence showing that the awards were published in the Journal and Tenders Portal ;

• In the Contract No. LGA/NDC/088/ROADS/2014/2015/03 the award was done after 184 days which is beyond the tender valid period of 90 days.

Namtumbo District Council

• The tender No. LGA/105/2014/2015/W/DEV/01 for Proposed Construction of Commercial Building (Rest House) at Namtumbo D. The procurement process for the supervision services took over 3 months after the works contract has been signed.

Tanzania Railway Ltd

• The lists of shortlisted suppliers for the supply of gabions, boulders, trucks and construction equipment in the contract No: PA/113/2014/W/182 for the procurement of works for restoration and protection of Railway Track at Munisigara - Maganza Km 300/0 – 3, 302/7-8 and Maganza - Kidete Km 315/1-91) Were Not Approved By The Tender Board Contrary to section 52

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of PPA 2011 and regulation 131 of GN No. 446 of 2013. The prices quoted for the hiring of trucks and construction equipments were not competitive compared to market prices.

• Tender No: PA/113/2012 – 13/ME/G/0E/13 for supply of 25 (twenty five) new ballast hopper bogie wagons was only advertised in the local newspapers but there was no evidence that it was advertised internationally as required by section 61(2) of PPA 2004 and Regulation 9 (a) and 80 of GN 97 of 2005. M/S Hindusthan Engineering and Industries Limited submitted a modified bid which however was incomplete and requested some of the documents from the earlier bid to be incorporated into the modified bid contrary to clause 24.3 of the Instruction to Bidders. Despite of such circumstance the tender was not rejected. The evaluation criteria were not fairly applied to all bidders and no evidence to show that post qualification was carried out as required by ITB clause 31.1 as modified to BDS 45 of the issued bidding document and Reg. 53 of GN No 97 of 2005;

• Tender No: PA/113/2012-13/ME/G/OE/014 for supply of 274 new goods wagons was only advertised in the local newspapers but there was no evidence that it was advertised internationally as required by section 61(2) of PPA 2004 and Regulation 9 (a) and 80 of GN 97 of 2005. M/S Hindusthan Engineering and Industries Limited submitted a modified bid which however was incomplete and requested some of the documents from the earlier bid to be incorporated into the modified bid contrary to clause 24.3 of the Instruction to Bidders. Despite of such circumstance the tender was not rejected. The evaluation criteria were not fairly applied to all bidders;

• Contract No: PA/113/2012 – 13/ME/G/OE/007 for

supply of 34 new brake vans bogie wagons; The tender was advertised in the local newspapers but there was no evidence that it was advertised internationally as required by section 61(2) of PPA 2004 and Regulation 9 (a) and 80 of GN 97 of 2005. The time which was provided for submission of bids was adequate when compared time provided for procurement of goods in third schedule of GN 97 of 2005. However it was not adequate taking into consideration of the size of the project and nature of the project resulting in the request

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for extension of the bidder’s period by most of the bidders;

• Contract No: PA/113/2012-13/ME/G/OE/010 for

Remanufacturing of 8 No 88 Class Locomotives; There was no evidence that this tender was advertised internationally as required by section 61(2) of PPA 2004 and Regulation 9 (a) and 80 of GN 97 of 2005.

• In the contract No: PA/113/2012 – 13/ME/G/0E/006

for supply of 13 (Thirteen) New 2000 2200 Horse Power Diesel Locomotives, the evaluation criteria were not fairly applied to all bidders. The contract was awarded to M/s Electro Motive Diesel whose tender was not responsive for USD 42,769,509.00 instead of M/S CATIC Beijing who submitted a more competitive bid and whose price was USD 25,906,639.00 which was USD 16,862,870.00 less.

• In the contract No: PA/113/2012-13/ME/G/OE/014

for Supply of 1 No. Tamping Leveling Lining Machine and Track Video System, the method of procurement was restricted tendering, however list of shortlisted bidders was not approved by the Tender Board. The SCC condition waived most of the important contract administration clause such as performance security, advance payment guarantee, period of which correction of defects should be done during the warrant and supply of spare parts.

• There was no evidence that it contract No: PA/113/2012

– 13/ME/G/0E/009 for supply of 100 ton new rail mounted break down rescue crane was advertised internationally as required by section 61(2) of PPA 2004 and Regulation 9 (a) and 80 of GN 97 of 2005. During negotiation payment conditions were changed but the same was not approved by the Tender Board.

Karatu District Council

• Tender for construction of public toilet at Karatu Bus Stand was only advertised on the Council Notice Board as CQ instead of NCT;

• None of the awards was submitted to PPRA for publication in PPRA’s website and the Tanzania Procurement Journal

Kyela District Council

• In the contract No. LGA/KDC/074/2014/2015/W/29 for Periodic Maintenance of Njugilo – Malangali Road 3.5km, the Negotiation team re-negotiated with the Contractor and reduced the price to TZS 107,094,086 by changing and reducing the rate in the BOQ. This was

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contrary to section 76 (2) (c) of PPA 2011 and Reg. 164 (4) of GN 446 of PPR 2013 whereby price changes should not be allowed. Only the scope of works could have been reduced.

• In the contract for Periodic Maintenance of Ipinda – Kanga Road 3km, Spot Improvement of Kafundo – Kisale Road 1.8km and Construction of Kyangala Bridge, the letter of intent to award a contract was issued on 12th October 2014 and the letter of award was issued on 15th October 2014 being three days after issuing the letter of intent. This was contrary section 60 (1,2&3) of PPA 2011 which requires bidders to be given fourteen days within which to submit complaints thereof. Furthermore, the performance security was not submitted. Post qualification was done to two bidders contrary to Reg. 224 of GN No. 446 of 2013

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ANNEX 5-10: WEAKNESSES OBSERVED UNDER CONSTRUCTION (CONTRACT ADMINISTRATION) STAGE

Procuring

entity Audit finding

Kigoma District Council

• Performance security for contract No. LGA/043/2014/2015/HQ/W/01 for periodic maintenance of Chankabwimba – Mkongoro, spot improvement of Pasua Bitale and routine maintenance of Bitale – Bubango Roads was not submitted by the contractor contrary to Clause 9.1 of the Special Conditions of Contract;

• There was no appointment of Project Manager/supervisor for all projects implemented as required under Regulations. 252 of GN No. 446 of 2013,

• Site handing over was not done properly;

• Project progress reports were not prepared; • Despite of the existence of quality control plans, there was no

quality assurance plans was observed. • Measurements sheets were not evidenced in all interim

payment certificates;

• Overpayment amounted to Tshs 7,477,780.00/= was made to M/s MOSACO Road Works for works not done in contract No. LGA/043/2014/2015/HQ/W/01 for periodic maintenance of Chankabwimba – Mkongoro, spot improvement of Pasua Biotale and routine maintenance of Bitale – Bubango Roads ;

• Overpayment amounted to Tshs.1,331,000.00/= was made to M/s Mwanasili Construction Co. Ltd for works not done in contract No. LGA/043/2013/2014/W/4 for Construction of OPD One Wing at Nyarubanda Village;

• M/s Kam Construction Co. Ltd was overpaid a total of Tshs.

2,292,000.00/= in contract No. LGA/043/2013/2014/W/12 for Construction of One Laboratory Wing at Nyarubanda Secondary School.

Kibondo District council

• Project progress reports for all implemented projects were not prepared;

• Non imposition of liquidated damages to M/S Tingwa Company Ltd for contract No. LGA/041/2014/2015/W/RF/05 for delaying the project for over five months after contract signing;

• BOQs were not updated after works re-scoping • Despite of the existence of quality control plans, there was no

quality assurance plans was observed. • Measurements sheets were not attached with all interim

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payment certificates; • Measurement of works on site were not adequately done and

hence resulted in overpayments as follows:

Overpayment amounted to Tshs 15,790,000.00 was made to M/S Tingwa Company Ltd for contract No. LGA/041/2014/2015/W/RF/05;

Overpayment amounted to Tshs. 35,186,640.00 was made to M/S D4N Company Ltd for contract No. LGA/041/2014/2015/W/RF/03;

Overpayment amounted to Tshs. 7,400,000.00 was made

to M/s Y.N Investment & Alab Contractors Co. Ltd for contract No. LGA/041/CTB-15/2012/2013/W/16;

Overpayment amounted to Tshs. 6,539,000.00 was made

to M/S Gamaya Engineering (T) Ltd for contract No. LGA/041/KDC/2014/2015/W/RF/08.

• The request for extension of time was submitted ten days after

the expiration of contract No. LGA/041/2014/2015/W/RF/03 for periodic maintenance along Kibondo Town roads 5km and Kibondo – Kumbanga road 4km, routine maintenance along Kibondo Town Roads 10km and Kibondo – Kumbanga Road 13km, spot improvement along Kibondo – Biturana Road 5km and construction of line dirch at Kibondo Town Council .

• The project duration, start and completion dates for contract

No. LGA/041/2013/2014/W/14 for renovation and extension of canteen to be built in clinical officers' college at Kibondo was not stated in section 1.1 of Special Conditions of Contract

• Project Manager/supervisor was not appointed for contract

No. LGA/041/2013/2014/W/14 for renovation and extension of canteen to be built in Clinical Officers College at Kibondo as required under Regulations. 252 of GN No. 446 of 2013

Kinondoni Municipal Council

• There were delays in contract execution for contract No. LGA/017/2014-2015/W/193 for Upgrading of Masjid Quba Road (1.9Km) due to delays in approving the additional quantities;

• There was delays in paying the contractor for contract No. LGA/017/2014-2015/W/02/Lot 04 for periodic maintenance of Tegeta Masaiti – Namanga Street road (1.9Km) which was paid 74 days after submission of the interim certificate. This is contrary to Clause 54.2 of General Conditions of Contract which required payments to be made within 28 days of its

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certification. In addition, measurement sheets were not attached to the interim payment certificate;

• The contractor for contract No. LGA/017/2014-

2015/W/02/Lot 04 for Periodic Maintenance of Tegeta Masaiti – Namanga Street Road (1.9Km) applied for extension of time one month after the contract lapsed and his application however did not state reasons and justifications for the extension of time;

• The contractor did not provide performance security for

contract No. LGA/017/2013-2014/W/02/ Lot 02 for Upgrading of Biafra–France Embassy Road (0.85Km) contrary to clause 26 of Special Conditions of Contract which required him to provide performance security whose value is 10% of the contract price;

• The contract No. LGA/017/2013-2014/W/02/ Lot 02 for

Upgrading of Biafra–France Embassy Road (0.85Km) project was substantially completed but neither had the date for substantial completion date is not known nor substantial completion certificate issued. In addition, snag list was not prepared;

• There was severe delay in completion of works for contract No.

KMC/35/2012 for Upgrading of Part of Mkwajuni – Mango Road (1.0Km) from Gravel to Double Surface Dressing. The original completion date was on 31st August 2012, but until 15th July 2015 that is approximately three years the progress of work stands at 60%;

• There was no evidence indicating that performance security for

contract No. LGA/017/2013/2014/W/06 for upgrading of Lion Road (0.80Km) from Gravel to Tarmac Level was submitted by the contractor as required by Clause 25 of SCC. Furthermore, variation amounting to Tsh. 784,776,158.63 was not approved by the Tender Board contrary to the requirements of Regulation 110(3) of GN No. 446 of 2013;

• An addendum amounting to T.Shs. 165,053,00.00 for upgrading

of Part of Journalism (0.53Km), Feza (Senga) (0.75Km), Chwakwu (0.8Km) and Serengeti 9(0.6Km) roads from gravel to double surface dressing and upgrading of Mahando Road (0.3Km) to Tarmac Level – Phase I made on 3rd July, 2013 was not approved by the tender board;

• The special conditions of contract for the contract for

upgrading of Part of Journalism (0.53Km), Feza (Senga)

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(0.75Km), Chwakwu (0.8Km) and Serengeti 9(0.6Km) roads from gravel to double surface dressing and upgrading of Mahando Road (0.3Km) to Tarmac Level – Phase I, specified the minimum amount of each interim payment certificate to be 40% of the contract price. However it was noted that interim payments certificates no. 1 and 2 of Tshs. 224,353,870.75 and Tshs. 289,873,953.00 respectively were paid while did not meet the minimum requirements.

RAS Dar es Salaam

• Performance security for contract No. RAS/020/2014/2015/W/05 for renovation of isolation treatment ward and lounge at Temeke hospital were not submitted by the contractor.

Mwanza City Council

• It was observed that the base course thickness placed on the works averaged 125mm (100-150mm) compared to 200mm specified in the contract, resulting in overpayment to M/s Jassie & Co. Ltd amounting to Tshs. 3,688,636.25 on various paid items on the constructed asphalt section for contract No. LGA/089/2014/2015/W/01/02 for routine maintenance works along various roads within Mwanza City Council (Patch works, Road Marking and Road Sign);

• Overpayment amounted to Tshs . 69,606,500.00 was made to M/s Chase Investment Group (T) Ltd for nonexistent works in Interim payment certificate No. 3 for contract No. LGA/089/2013/2014/W/03 for Piped System and Civil works for Fumagila Villages. The measurements sheets provided in all interim payment certificates were not attached to payments;

• The workmanship for the executed work for contract No.

LGA/089/2013/2014/W/03 for Piped System and Civil works for Fumagila Villages was unsatisfactory due to poor quality of precast concrete manhole covers including thickness (30mm) constructed on site and poor workmanship. The BRC (3mm) were used in the covers instead of 6mm specified in the drawings;

• No performance Surety /Insurance Bonds submitted for

contract No. LGA/089/2014/2015/W/01/05 for periodic maintenances along Bismark road, Periodic Maintenances along Mwananchi – Alliance road and periodic maintenance along Nyashana – Jeshini road;

• No snag list or site handover minutes prepared or any other

site instructions issued with respect to the defects on the works executed for contract No. LGA/089/2014/2015/W/01/05 for Periodic Maintenances along Bismark road, Periodic Maintenances along Mwananchi – Alliance road and Periodic

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Maintenance along Nyashana – Jeshini road. Likely, the final project reports as well as site handover management meetings records were not prepared.

Misungwi District Council

• No project progress reports were prepared as well as management meetings held for all sampled tenders;

• No snag list or site handover minutes prepared or any other site instructions issued with respect to the defects therein on the works executed for all sampled works contracts. Likely, the final project reports as well as site handover management meetings records were not effectively prepared;

• M/s Meli Construction Ltd was overpaid on gravel works by

Tshs. 19,636,020.00 (1,707.48 m3 of gravel) under contract No. LGA/093/2013/2014/W/RF/06;

• M/s Nyakahara Investment Ltd was overpaid on gravel by

Tshs. 7,064,880.00; (791.26m3 of gravel) under contract No.LGA/093/2013/2014/W/RF/04;

• Some glass panes in the vents on doors were missing including

poor door vanish surfaces for contract No.LGA/093/2013/2014/W/H/51 for Completion, Construction and Rehabilitation of Staff House at Kanyelele Dispensary;

• Overpayment amounting to Tshs. 28,902,200.00 to none existent

works was made to M/s Chilands Company (T) Ltd for Construction of Piped System and Civil Works for Bujingwa Village in interim payment certificate No. 2. It was further noted that the quality of workmanship on the manholes, Inspection Chambers, internal and external plastering were unsatisfactory.

Rorya District Council

• There was no site organization Chart to reflect the Contractor’s Key Site Personnel;

• Quality Assurance programmes were not prepared;

• Performance security was neither demanded nor provided as required in clause 55.1 of special conditions of contract;

• Measurement sheets were not attached in the project

implementation file although inspection records were attached;

• No final inspection was carried out, site handover or snag list were prepared.

Tarime • There was no site organization Chart to reflect the Contractor’s

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District Council

Key Site Personnel; • No Quality Assurance programme prepared;

• Performance security was neither demanded nor provided as

required in clause 55.1 of special conditions of contract for all projects implemented;

• Measurement sheets were not attached in the project

implementation file although inspection records were attached;

• No final inspection was carried out, site handover or snag list were not prepared;

• Overpayment amounted to Tshs.16,999,400/=was made in the

contract No. LGA/067/2014/2015/RF/W/01- Lot 01 for periodic maintenance of Mrito – Gibaso – Mangucha, Bugucha –Kobori, Nyankoni-Kangariani, spot improvement Mrito -Gibaso – Manguchana Nyankoni –Kangariani routine and recurrent maintenance of Mrito – Gibaso – Mangucha, Muriba –Kitawasi – Masurura ,Mangucha –Kangariani and culvert construction of Mangucha –Kangariani paid as a consequence of not carryout measurement before payment certifications;

• Overpayment amounted to Tshs 4,241,500.00 was made in the

contract No. LGA/067/2014/2015/RF/W/01- Lot 04 for periodic maintenance Sirari- - Makaburini – Ng’ereng’ere and Remagwe, Kitagasembe, spot improvement of Sirari – Makaburini – Ng’ereng’ere, Sirari Nyamurenge, Nyamwigura –Gwitiryo, Seng’esa – Nyansaricho, Rosana – Soroneta – Magoma – Nkongore, Rosana – Soroneta – Magomana Remange – Kitagasembe;

• Overpayment amounted to Tshs 4,179,600.00 was made in the

contract No.LGA/067/2014/2015/RF/W/01- Lot 06 for periodic maintenance of Gamasara- Bisarwi-Surubu – Nyamirambaro, spot improvement of Gamasara – Bisarwi, Kewamamba – Nyagisya – Buganjo-Surubu – Nyamirambaro, routine and recurrent maintenance of Gamasara – Bisarwi, Surubu – Nyamirambarona Mtana –Songa and Culvert Construction on Nyandoto – Kiongera – Nyamunhuda

Ukerewe District Council

• Performance security was neither demanded nor provided as required in clause 55.1 of special condition of contract for all projects implemented;

• No final inspection was carried out. Also site handover or snag list were not prepared;

• There was no site organization Chart to reflect the Contractor’s

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Key Site Personnel. Bariadi District Council

• Measurement sheets were not attached in the project implementation file;

• Progress reports were not effectively prepared by the Project Manager.

Kishapu District Council

• Poor supervision for the executed projects;

• The quality of the executed works for contract No. LGA/108/2014/2015/RF/03 for spot improvement works along Mhunze-Igaga-Mwamashele, Lagana - Beledi and Lagana - Mwamanota was unsatisfactory due to the existence of mitre drains with obstructions, erosion on some locations and broken/damaged headwalls due to insufficient length of culverts and insufficient fill overburden on top of pipe culvert.

Bunda Disrtict Council

• The major construction materials such as concrete cubes for culverts constructed for contract No. LGA/065/2014-2015/W/RF/04 for routine maintenance, spot improvement, periodic maintenance and installation of culverts along Bulamba-Mwiluluma Road 21Km and Namhula-Muranda Road 15Km were not tested and approved before used;

• As built drawings were not prepared as per contract requirements;

• Neither final inspection of works was carried out nor site

handover or snag list were prepared Maswa District Council

• There were delays in site possession for a total number of 31 days which contravened clause 10 of SCC that requires site possession to be done within 7 days after signing of the contract under contract No. LGA.109/2014/2015/W/01 for routine maintenance of Hinduki-Mwaka Road (11km), Hinduki – Nyashimba Road (13km), periodic maintenance of Hinduki – Mwafa Road (1km) and Spot Improvement of Nyashimba – Mwang’holo Road (6.9km). Similarly there was a delay in contract execution for a period of thirty (30) days contrary to clause 1 of SCC that requires commencement to be 14 days after signing of contract;

• No final inspection was carried out, site handover or snag list prepared.

Songea District Council

• Under the Big Results Now (BRN) programme through the Ministry of Agriculture, Songea DC entered into 25 different contracts for rehabilitating 25 different warehouses at a total cost of Tshs. 1,828,765,750.95. All contracts were signed on 27th March 2015 and were to be completed by 10th June, 2015. Despite lapsed of contract duration; there was no extension of time granted;

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• There has been a severe delay in paying the contractor for

tender No. LGA/102/HQ/2014/2015/W/07 for periodic maintenance, routine maintenance and bridge repair along Matomondo-Magagura-Kizuka road to the contractor for a period of 155 days.

Mkalama DC • No quality assurance plans and programmes of works were prepared

Ikungi District Council

• No quality assurance plans and works programmes were prepared;

• No project progress reports as well as management meetings were observed for all sampled tenders.;

• No final inspection was carried out, site handover or snag list

were not prepared. Muleba Disrtict Council

• The contract No. KGR/LGA/037/2012-2013/MLB/W/02 for Construction of Piped water Supply Network and Associated Appurtenances in Kyota Village was to be completed on 27/10/2013. However until August 2015, the final inspection was not yet done, the site has not been handed over and snag list prepared.

Ushetu District Council

• The status of works under contract No. LGA/ 162/2014/2015/W/RD/01 for routine maintenance along Mpunze - Luhanga 28.5Km and Iramba - Idahina 11Km roads was not prepared while it was supposed to be substantially completed by 27/06/2015;

• The works program for all sampled contracts were not updated contrary to Clause 14 of SCC (Clause 29.3 of GCC) which requires the contractor to submit updated Programe of Works every 30 days or the Project Manager to withheld the agreed amount pursuant to Clause 29.1 of GCC;

• The status of works to date is unknown for contract No.

LGA/162/2014/W/BUILD/12 for Drilling Construction and Pumping Testing of 4 Deep Productive Boreholes for Iboja, Kangeme, Mbika Village and Mpunze Agriculture Resource Centre as was supposed to be substantially completed by 30/06/2015;

• No Quality Assurance plan were prepared.

Ilala Municipal Council

• Delayed site possession for all sampled construction projects. For instance this was observed in contract No. LGA/015/IMC/2014/2015/W/01 - Lot 1 for Construction of Kinyerezi - Bonyokwa Box culvert along Kinyerezi - Bonyokwa Road;

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• The original design in contract No. LGA/015/IMC/2014/2015/W/01 - Lot 1was completely changed (BOQ was prepared based on construction of three Cells Box Culvert but it was changed to construction of Bailey bridge supported on gabions abutments) but those major changes were neither documented nor coasted and Variation Order not prepared;

• The progress of work for contract No.

LGA/015/IMC/2014/2015/W/01 - Lot 1 for Construction of Kinyerezi - Bonyokwa Box culvert along Kinyerezi - Bonyokwa Road was poor (less than 5%) and the original contract period already expired while no any time extension of time has been granted;

• Lack of quality control plan and assurance (lack of tests on

materials used and mix design compliance) for contract No. LGA/015/IMC/2014/2015/W/01 - Lot 1 for periodic maintenance of Lugalo Road to Tarmac Level;

• The project completion report were not prepared to indicate

practical completion and snag list (if any) to be rectified as well as substantial completion certificate was not issued;

• The interim payments to contractor for contract No.

LGA/015/IMC/2014/2015/QTN/W/55/ LOT 1 for spot improvement along Ulongoni A - Gongolamboto - Mongolandege (4.4Km) gravel road were delayed due to lack of funds;

• Contractors did not adhere to their approved works

programme Kashwasa • Measurements sheets were not attached to the payment

certificates and inspection reports were not prepared for all sampled projects;

• Site management meetings were not conducted to monitor and evaluate the performance of the contractors/or service providers;

• Measurement of works on site were not adequately done

TANAPA • Site management meetings were not held during the project implementation period;

• Project progress reports were not prepared;

• Site measurements were not prepared as well as signed delivery noted for materials were not prepared;

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• Maximum liquidated damages (10%) [amounting to Tshs.

19,806,319.20] was not imposed to M/s Lyamuya Engineering & Co. Ltd under contract No. PA/037/2013-2014/HQ/W/07 for Construction of Community Bone Char Water Deflouridation Plant at Naabi in SENAPA due to delay in the construction schedule that affected project completion date. Furthermore, no extension of time was granted by Employer;

• Maximum liquidated damages (10%) [amounting to Tshs.

43,895,000.00]was not imposed to M/s Stance Technical and Civil Engineers Ltd under contract No. PA/037/2014-2015/SDNP/W/242 for Rehabilitation of Lemosho Road from Nyumba Moja to Starting Point 8.5Km at KINAPA due to delaying in the construction schedule that affected project completion date. Furthermore, no extension of time was granted by Employer;

• Contract close out was not done, site handover management

meetings records and snag list were not prepared and rectification of defects and payment of retention money was not administered;

• Lack of quality control tests on the executed works (gravel and

concrete works) and used inappropriate materials such as volcanic ash as building sand in the construction works for permanent structures and contrary to building materials specifications for fine aggregates;

• Overpayment of Tshs. 156,304,000.00 to M/s Stance Technical

and Civil Engineers Ltd under contract No. PA/037/2014-2015/SDNP/W/242 for rehabilitation of Lemosho Road from Nyumba Moja to Starting Point 8.5Km at KINAPA. This is due to measured average roads width of 3.54m along Lemosho Road (8300m) on site clearance, heavy reshaping, excavation of new drains and gravel;

• Appropriate procedures were not followed in issuing variation

orders/contract amendments for additional uniforms [840 pairs of staff uniforms] amounting to Tshs. 196,091,692.00 under contract No. PA/037/2014-2015/HQ/G/15 for Supply of Staff Uniform;

• There was no justification for delays in the delivery schedule

under contract No. PA/037/2014-2015/HQ/G/15 for Supply of Staff Uniform. The client did not take appropriate action to impose penalties (liquidated damages) to the Supplier M/s Pink Diamond Ltd.

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Mpanda District Council

• Working tools, machine and plant for execution of Contract No. LGA/099/2014/2015/W/WATER/03 for construction of mechanized piped water schemes and civil works at Igagala Village were not present at site during inspection;

• Site facilities for workers including toilets, site office and protective gears were poor;

• Progress reports were not prepared for Contract No.

LGA/099/2014/2015/W/WATER/03;

• Contract No. LGA/099/2014/2015/W/WATER/03 allow provision sum for contractor’s site mobilization and demobilization. Contractor’s site office had been paid in full a total amount of T. Shs. 6,124,500.00 but the contractor had not established the required site office;

• Contract No. LGA/099/2014/2015/W/WATER/03 allow

provision of transport, communication, accommodation, site office and office facilities for use of Engineer which had been paid in full a total amount of Tshs. 6,312,900.00, but no such services had been provided by contractor to the Engineer.

College of Business Education

• Payment certificates for Contract No: PA/021/2014/2015/HQ/W/01 was not attached with measurement sheets.

Mbozi District Council

• Project Managers/Supervisors were not appointed for all works projects to supervise the construction activities of the projects;

• Project progress reports were not prepared;

• Quality assurance plan was not prepared. Tanroads Simiyu

• Insurance cover was not submitted in contract No. AE/001/2014-15/SMY/W/09 contrary to Clause 7 of SCC. Payments were not made contractually, the contractor was paid in installments and payments were delayed; for example, interim payment certificate No. 2 of Tshs. 106,444,836.00 which was certified on 26th June 2015 had not been paid as of 21st August 2015 (when this audit was conducted) ie. 48 days after certification. This was contrary GCC Clause 46.1 which required the Employer to pay the contractor within 28 days of the date of certificate;

• In contract No. AE/001/2014-15/SMY/W/07, project signboard was missing; Insurance cover was not submitted contrary to Clause 7 of SCC; Payments to contractor were not made in compliance with Clause 46.1 of GCC which required payments to be made within 28 days of each certificate. Interim

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payment certificate No. 1 for Tshs. 60,169,762.00 which was certified on 30th December 2014 was paid in two installments on 22nd January 2015 and 20th May 2015 through cheque numbers 017524 and 027407 respectively and inadequate protective gears to workers at site;

• The contractor did not provide insurance cover in Contract No.

AE/001/2014-15/SMY/W/12 contrary to Clause 7 of SCC;

• In contract No. AE/001/2014-15/SMY/W/32 and AE/001/2014-15/SMY/W/34, Project signboard was missing; Insurance cover was not submitted contrary to Clause 7 of SCC and Inadequate health, safety and environmental measures were not in place for example while works were on progress there were no warning signs.

TANROADS Katavi

• Performance security in contract No. TRD/KTV/T.009/2014-15/09 was not submitted in compliance with Clause 27 of SCC;

• In contract No. TRD/KTV/R.565/2014-15/14 payments were not made contractually. While clause 22 of SCC specified retention of 10% of each Interim Payment Certificate (IPC), interim payment certificate No. 1 paid on 18th March, 2015 through PV 002188 and cheque No. 027699 retained only 5% leaving Tshs. 1,942,670.00 un-retained;

• Performance Security in Contract No. TRD/KTV/R.548/2014-

15/KTV/20 was not submitted as per Clause 27 of SCC. The Letter of acceptance issued on 1st December 2014 required the contractor to submit performance security within 28 days of receiving it, but the contractor submitted the same on 6th August, 2015 – more than seven months after its due date.

• Payments were not paid contractually, e.g. first payment was

applied on 28th March 2015 but as on 14th August 2015 (when this audit was conducted) the certificate had neither been certified nor paid contrary to clauses 45.2 and 46.1 of GCC which require the Project Manager to certify within28 days after receiving the certificate from the Contractor and the Employer to pay within 28 days of the date of each certificate respectively.

• The Contractor applied for extension of time of 60 days on 24th

June 2015 but as on 14th August 2015– about two months after receiving the request, the Employer had not acted upon it ;

• Variation (re-scoping) amounting to Tshs. 65,826,800.00 in

contract No. TRD/KTV/R.548/2014-15/23 was implemented without Tender Board approval contrary to

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Reg. 110(3) of GN No. 446 of 2013;

• In contract No. TRD/KTV/R.562/2014-15/24, the contractor was not adhering to his work programme. While original contract period expired on 13th March 2015, the progress on 26th June 2015 was only at about 10% and the Supervisor did not notified the Contractor about non-adherence to the Programme of Work

Iramba District Council

• Payment to contractors was not paid on time in the following tenders:

Tender No. LGA/118/2014/2015/W/15 - LOT 1 - M/S Norcom (T) Ltd submitted claim on 24.07.2015, Certificate for payment was issued on 20.08.2015 about 27 days thereafter. During audit about 45 days from date of submission of claim had lapsed but no payment was made to the contractor;

Tender no. LGA/118/2014/2015/W/15 - LOT 3 - M/S

Bahaji Construction Works Ltd submitted claim on 3.08.2015 where certificate for payment was issued on 20.08.2015 about 17 days thereafter. During the audit about 33 days from date of submission of claim had lapsed but no payment was effected to the contractor.

• In tender No.LGA/118/2014/2015/W/15 - LOT 1-3, No

updated Contractor’s Schedule of Work and quality Assurance programme ;

• Contract No. LGA/118/2014/2015/W/15 - LOT 1 & 3, were behind schedule for almost 30 days.

Nanyumbu District Council

• No evidence of availability of quality assurance programme in Contracts No. LGA/NDC/088/W/2012/2013/07; NDC/LGA/088/WATER/2013/2014/08; and LGA/NDC/088/IDC/ROADS/2014/2015/06;

• In Contract No. NDC/LGA/088/WATER/2013/2014/08: no evidence of occurrence variations; however the auditors noted variations in pump house where number of doors changed from two in the drawings to one on site, Size of windows were also changed. Also in tender No. NDC/088/ROADS/2014/2015/07 a sample culvert was taken along Police CCM road whereby the design changed from stone masonry to reinforced concrete structure

• In contract No. LGA/NDC/088/IDC/ROADS/2014/2015/06 and LGA/NDC/088/ROADS/2014/2015/02 there was no evidence of contractor providing quality schedule of work as well as contractor’s site organization.

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• In Tender No. NDC/088/ROADS/2014/2015/07 auditors observed that only one interim certificate of payment has been issued amounting to Tsh. 56,198,250.00. However the project has been completed, the reason behind is lack of fund from client.

National Housing Corporation

• In contract No: PA/066/2013-2014/HQ/W/50: Site Diary are prepared by the Contractor, but they are not verified by the Supervisors or the supervisors don’t have an independent related data for cross checking the correctness of the data;

• In Contract No. PA/066/2013-14/HQ/W/05 Lot 2 at the time of audit, i.e. late August 2015 the auditors observed that:

Some staff were missing like the Contract Manager was

not mobilized to site and Four Technicians namely Civil, Architectural, Electrical and Plumbing were yet to be mobilized to site;

Site Diary prepared by the contractor was not checked or countersigned by the NHC Supervisors.

It was noted that the project completion is delayed due

to the fact that the completion date is scheduled to be September 2015, while by end of August, most of the houses had just been cast with the ground oversite concrete slab and only two Blocks had started block work construction and two were still under foundation block work construction.

• In Contract No: PA/066/2013-14/HQ/W/29:

There were late or no submission of breakdown of approved expenditure by supervising team at site. For instance the breakdown of TZS. 6,105,000.00 for labour, water and sand were missing.

The Financial and Physical progress were wrongly reported showing the works was completed by 100% while the verified works at site revealed to be not yet completed

• In contract No.PA/066/2013-14/HQ/W/24, no inspection

committees or reports as far as procurement of materials is concerned. This means the materials were just procured locally without any controls of acceptance prior to use, and that the full responsibility of decision is left to the supervisors at site.

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Namtumbo District Council

• The project has been completed but the span of the headwalls for concrete pipe culverts were equal to the width of the carriageway thus causing the motorists to bump on them;

• In Tender No: LGA/105/2014/2015/W/RF/05 for periodic maintenance of Lusewa-Msisima-Matepwende road, spot improvement of Ligera Matepwende road, it was observed that:

Payment certificates for the gravel item were based on

the (underestimated) quantities in the bill. The BOQ quantities for Lot 1 and 2 were 5,100 m3 while the measured quantities were 7,446 m3 thus denying the contractor payment of 2,346 m3 (31.5% of the total gravel) worth 2,346 x 13,500.00 = Tshs. 31,671,000.00, an underpayment which is equivalent to 19.1% of the contract sum. This shows that the measurements which was undertaken by both the client and the contractor prior to payment were unrealistic;

The quality of workmanship and general appearance of the concrete pipe culvers was not appealing

• In tender No: LGA/105/2014/2015/W/RF/07 for Periodic

and Routine Maintenance of Ligera - Mtelamwai road, it was observed that payment certificates for the gravel item were based on the (underestimated) quantities in the bill. The BOQ quantities were 8,500 m3 while the measured quantities were 9,518 m3 thus denying the contractor payment for 1,018 m3 (10.7% of the total gravel) worthy 1,018 x 13,400.00 = Tshs. 13,641,200.00, an underpayment which is equivalent to 6.5% of the contract sum. This shows that the measurements which was undertaken by both the client and the contractor prior to payment were unrealistic

• In tender No. LGA/105/2014/2015/W/DEV/01 for the proposed construction of commercial building (rest house), the impact of the hired consultant is not evident. The auditors went to site and found the contractor idling awaiting for the revised drawings/site instruction to raise the plinth level which was below the ground level after construction in line with the drawings

Tanzania Railway Ltd

• M/s Pecky Enterprises Limited was paid Tsh. 32,732,000.00 for Gabions which were not supplied relating to contract No: PA/113/2014/W/182 for the procurement of works for restoration and protection of Railway Track at Munisigara - Maganza Km 300/0 – 3, 302/7-8 and Maganza - Kidete Km 315/1-91.

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From the measurements taken on site only 416 gabions were supplied instead of 750 paid for.

Also the supplier of boulders M/S 2000 Mult Tech Limited was paid TZS 16,856,000.00 for 172M3 which he did not supply. The boulders used for works were 1028M3 while the supplier was paid for 1200M3.

• In Contract No: PA/113/2014/G/51 for remanufacturing of 8 no 88 class locomotives, the technical tests were conducted but no reports were submitted to the Supervising Engineer;

• In Contract No: PA/113/2012 – 13/ME/G/0E/13 for supply of 25 (twenty five) new ballast hopper bogie wagons, commencement of the contact was delayed due to delay of advance payment ; The contract commenced 152 days (5months) after signing the contract. The contract was delayed for 110 days but no remedial measures were taken as well as Liquidated damages at a rate of 0.2% of the contract amounting to USD 51,223.74 were charged;

• In Project Completion and Closure Stage under Contract No:

PA/113/2012 – 13/ME/G/0E/13;

Post Delivery Inspection Report with Ref. DSM/ME/125 revealed several defects including failure of 17 wagons to function properly, quadrant doors failing to open due to breaking of shafts, failure to offload ballast due to broken components.

Other defects include falling off of distribution door after hitting a hip of ballast from the inspection made by the Audit team.

The contractor supplied maintenance spares to be used

after the warrant period. However part of the spares were used to repair the wagons during the warrant period contrary to the provisions of the contract.

The supplier is yet to replace the spare parts worth USD

15,750.00.The overall quality of the wagons was unsatisfactory

• In contract No: PA/113/2012-13/ME/G/OE/014 for supply of 274 new goods wagons;

Commencement of contract was delayed due to delay in advance payment; The contract commences 312 days (10½ months) after signing the contract. No reasons

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were given for such delay;

There was no manufacturing drawings submitted by the supplier;

The expected completion date for this contract was

scheduled to be 12 months after signing of contract which was to be ended on 21/03/2014. At the time of the audit the delivery of the wagons was not yet completed;

The inspections were conducted at two stages that is

approval of the prototype wagons and pre-dispatch inspection. The inspection of prototypes included the review of material testing and functional and compliance to specifications. There were no intermediate inspections since the project had no supervisor.

• In contract No: PA/113/2012 – 13/ME/G/OE/007 for supply

of 34 new brake vans bogie wagons;

Commencement of contract was delayed due to delay in advance payment ; The contract commenced 137 days (4½ months) after signing the contract however no reasons were given for the delay;

The supplier did not submit manufacturing drawings

The inspections were conducted at two stages that is approval of the prototype wagons and pre-dispatch inspection. The inspection of prototypes included the review of material testing and functional and compliance to specifications. There were no intermediate inspections since the project had no supervisor.

The available report indicated that Pre- dispatch

inspection took place on 15th May- 17th May 2014 in Kolkata India. The second Pre dispatch inspection was done on 23rd to 7th December 2014. Certificate for shipment was signed on 6th December 2014 to allow shipping of the bogies. No information was availed on post-dispatch inspection.

The workmanship for the Brake Vans was unsatisfactory

with all components exhibiting poor finishing. Especially the superstructure that was showing excessive putty and for surface correction, poor painting internally and externally. The overall quality of was

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unsatisfactory.

• In contract No: PA/113/2012 – 13/ME/G/0E/008 for supply of 22 new passenger coaches, commencement of contract was delayed due to delay in advance payment. The contract commenced 163 days (5½months) after signing the contract. Both the Supplier and the PE were at fault as the contract was delayed for 4 months and no extension of time was neither granted nor requested;

• In contract No: PA/113/2012-13/ME/G/OE/010 for remanufacturing of 8 no 88 class locomotives:

Commencement of contract was delayed due to delay in

advance payment. The contract commenced 140 days (42/3 months) after signing the contract and no reasons were given for the delay;

The contractor did not supply spare parts due to the deficiency of the contract and the procurement process. The price quoted by M/S SMH excluded spare parts.

• In contract No: PA/113/2012 – 13/ME/G/0E/006 for supply

of 13 (thirteen) new 2000 2200 horse power diesel locomotives, commencement of contract was delayed due to delay in advance payment. The contract was signed on 4/4/2013 and advance payment was made on 5/06/2013, 60 days after signing of the contract; There was no quality assurance programme and there was no delivery schedule.

• In contract no: pa/113/2012-13/me/g/oe/014 for supply of 1 No. Tamping Leveling Lining Machine and Track Video System:

the supplier was overpaid EURO 162,477.00 before the

end of the period according to the terms of payment as negotiate. The supplier was to be paid 50% advance payment, 40% on presentation of shipping documents, and 10% on presentation of bank guarantee for the same amount to cover the 12 months warrant period. The supplier however was paid Euro 813,385.00 as final settlement on the basis of receiving the shipping documents. At this stage the amount due to the supplier was 40% of the contract price ie. Euro 635,960.00.

• In contract No: PA/113/2012 – 13/ME/G/0E/009 for supply of 100 ton new rail mounted break down rescue crane:

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Commencement of contract was delayed due to delay in advance payment. Advance payment was made on 19/06/2013. This was 76 days after the signing of contract. The delay was due to the failure of the supplier to secure the advance payment guarantee on time as well as delayed payment by the supplier;

There was no quality assurance programme and material test;

The Contract had three categories of spare parts worth

EURO 86,560.72 (Maintenance Parts A: EURO 6,441.50, Wear and Tear Parts B: EURO 44,173.48 and Emergency Parts C EURO 35,945.74). According to the inspection and the Acceptance report the spares were received together with the crane. However there was no evidence to attest that the Tear and wear parts worth EURO 44,173.48 were received.

Karatu District Council

• Measurements sheets were not attached in all interim payment certificates for Contract No. LGA/002/2013/2014/W/RWSSP/2

Rungwe District Council

• In contract No. LGA/071/2014/2015/W/03 Lot No. 5 the contractor was overpaid by a total of Tshs. 17,850,000.00/;

• In contract No. LGA/071/2014/2015/W/03 Lot No. 3 the contractor was overpaid by a total of Tshs. 23,079,250.00/;

• In contract No. LGA/071/20’14/2015/HQ/W/33 the contractor

was overpaid by a total of Tshs. 4.050,000.00/;

• In contract No. LGA/071/2013/2014/HQ/W/06 the contractor was overpaid by a total of Tshs. 48,117,120.00/;

• Quality assurance plan were not prepared for all works projects;

• M/S Maharane Co. Ltd was the lowest evaluated tenderer for

Contract No. LGA/071/2013/2014/HQ/W/03 with TZS 35,752,200 but was disqualified for being lower than the engineering estimates by 26.28% using the risk assessment criteria which was not indicated in the tender documents as one of the criteria to be used during evaluation of the tender.

Kyela District Couincil

• Under Contract No. LGA/KDC/074/2014/2015/W/29 for Periodic Maintenance of Njugilo – Malangali Road 3.5km, the contractor was overpaid a total of Tshs. 1,118,700.00/= on re-measured works and for works which was not done.

• Under Contract No. LGA/KDC/074/2014/2015/RF/01 for Periodic Maintenance of Ipinda – Kanga Road 3km, Spot Improvement of Kafundo – Kisale Road 1.8km and Construction

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of Kyangala Bridge, the contractor was overpaid a total of Tshs. 960,000.00/= on re-measured works and on works which was not done.