Auditor General – Edward Akol
The Auditor General’s report for the financial year ending June 30, 2024, has revealed significant procurement irregularities across several government entities.
The report highlights that a total of Shs 2.93 billion in procurements, involving five entities and 14 procurement evaluations, failed to follow the prescribed evaluation criteria, as outlined in the bidding documents.
This breach of regulation 5(1) of the Public Procurement and Disposal of Assets (PPDA) Evaluation Regulations, 2023, raises serious concerns about fairness and transparency in government contracts.
Edward Akol, the Auditor General, pointed out that this failure to adhere to proper evaluation procedures undermines fair competition and fosters perceptions of bias and favouritism in the awarding of contracts.
Such irregularities could expose entities to legal challenges from unsuccessful bidders, administrative reviews that delay contract execution, and unnecessary legal expenses.
Beyond procurement issues, the report also raised alarms about non-performing loans, which amount to Shs919 billion.
According to the report, “Included in the receivables under Note 20 are loans to private and state enterprises of Shs7.7 trillion, which includes non-performing receivables of Shs919 billion that have not been performing for over 20 years.”
The Auditor General noted that a provision for bad debts of Shs 0.247 trillion had been made, but much of these receivables appear irrecoverable, with some private enterprises that received loans no longer existing, and others failing to acknowledge their liabilities in financial statements.
The likelihood of recovering these funds is minimal, and attempts to gain approval for write-offs from the Attorney General and Parliament have been unsuccessful.
The Auditor General recommended that the Accounting Officer continue engaging with relevant stakeholders to explore debt recovery options or initiate the write-off process for dissolved companies.
For existing enterprises, the government could consider converting outstanding debts into equity as an alternative solution.
These findings underscore the need for urgent reforms to enhance procurement oversight and implement effective debt recovery strategies. Stakeholders are now calling for stronger measures to ensure greater financial accountability and safeguard public funds.
