Poor funding blunts teeth of procurement authority
Underfunding of the Public Procurement Regulatory Authority (PPRA) is the reason behind its inability to fight corruption, according to accountants.
The Institute of Certified Public Accountants of Kenya (Icpak) says the authority has been rendered toothless in administering its mandate that’s meant to seal procurement loopholes.
Accountants, most of whom work in government establishments, say that due to poor funding, the authority has been unable to conduct key roles such as market index surveys, which would prevent fiddling with prices by government suppliers.
“PPRA should conduct market surveys at least bi-annually then feed the information into the Ifmis system. If we put in ceilings [to prices] obtained through market surveys, it will be clear in the Ifmis system that if you are buying a product, there is a maximum price beyond which a supplier cannot [go],” Mr Andrew Tanui, Icpak’s legislative affairs subcommittee chairperson said on Wednesday.
Digital platform
Ifmis stands for the Integrated Finance Management Information System.
It is a digital platform procured by the government to manage public finances, through integration of various systems, primarily meant to ensure that government procurements are done according to the law.
Mr Tanui spoke when an Icpak team appeared before Senate’s committee on Finance and Budget. A price range for goods in Ifmis will see the system reject any quotation beyond certain figures, the Icpak boss told the senators.
To curb corruption, he added: “PPRA guiding ceilings and market surveys should be incorporated in the Ifmis system for standardised purchases.”
The senators said PPRA had previously expressed concern at its poor funding by the National Treasury, such that it can only conduct market surveys once every five years.
Rogue suppliers
The lacuna enables corrupt government officials to collude with rogue suppliers to manipulate processes and procure supplies at inflated prices — a serious cancer in Kenya where cases of costs jumping by 1,000 per cent have been witnessed.
Icpak lays the blame on government’s failure to facilitate PPRA, as required, for it to fulfil its legal mandate. It says that if it partnered with PPRA to conduct regular market surveys to update prices for goods and services, inflated prices would be eliminated, thus saving taxpayers billions that are currently stolen.
Market rates
If the institute were to carry out frequent market surveys, its boss says, it would review price ranges for various supplies to government based on market rates, rather than the current situation where corrupt government officials exploit Ifmis failures to inflate prices. BY DAILY NATION
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