New procurement system to save Shs300b, says official

Kampala- Following many procurement deals going bad in recent years, the government has announced a new framework that will ensure transparency in all procurement deals in ministries and departments.

The five-year blueprint “the e-Government Procurement Strategy”, unveiled on Tuesday, will lock out middlemen and reduce amount of paperwork. It will be massively rolled out in the next financial year-2015/2016-after sufficient funds have been availed.

A trial phase has, however, started in some government ministries and departments that have been victims in recent years.

The executive director of Public Procurement and Disposal of Public Assets, Mr Cornelia Sabiti, during the launch, admitted that despite their watchful eye on procurement deals, the government has continued to lose an estimated Shs300 to Shs500 billion annually in deals gone bad.

“With this initiative we hope a lot will change both at Central and Local government levels. We are at different stages right now but the process will soon be available and compulsory,” he said.

The plan comprises of five procurement components and will require individual bidders/companies to complete and submit every process electronically. The aim is to eliminate commission agents, power brokers, bribery and the usual bureaucracy and increase transparency.

Mr Sabiti likened the new system to Uganda Revenue Authority’s e-tax system which has generated efficiency in service delivery. He added: “It is intended to fix loopholes in the manual procurement process. We have experienced some really bad experiences in the past that we must address.”

Due diligence, documents verification and evaluation will also be conducted electronically including submission and certification of bank guarantees.

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