A report in New Vision states that an incredible 99.3% of all tendered contracts go over budget during contract performance, raising significant concerns over procurement-related corruption:
After the bidding process is completed, almost all government contracts are implemented beyond their original costs, a ground that is likely to increase the levels of corruption in the procurement sector, a report by the Inspector General of Government has revealed.
The third annual report in tracking corruption in Uganda revealed that although the open-bidding method of procurement has improved, micro procurements are by far the largest in number and yet least transparent. This, according the IGG, increases the potential for corruption even though the method involves relatively small amounts of money.
The findings also indicated that the percentage of contracts implemented within their original costs has been on a declining trend since 2009 from 50% to a paltry 0.7% in 2012.
The IGG attributed the problem to inefficient market surveys done by the procurement departments resulting into poor estimates being made by entities as they plan for these contracts.
“Price increase during execution, through change orders in specifications or cost, may be grounds for corruption. This is a significant red flag of a possible entry point of corruption and calls for integration of risk management into public procurement,” the report says.
