HOAP Joint Audit

Review of Procurement

Tanzania 9th June 2006

BACKGROUND

• Importance of procurement

• 3 Ministries• NAO• Donors• Donor Working

Groups• PCB• PPRA• PCA• GGCU

FRAMEWORK, INSTITUTIONS & CAPACITY

• Donor action has resulted in an improved framework

• Reforms represent clear improvement

• Lack of capacity has prevented full potential from being realised

COMPLIANCE (1 of 2)

• Regulatory Authority and Appeals Authority created, but yet to exercise their statutory powers

• Compliance with key provisions of new procurement legislation in ministries visited appears strong

• Clear enthusiasm to comply with new legislation• Overall compliance picture is unclear• NAO recognition that procurement deserves particular

attention• PAF indicator specifically examining compliance reflects

the subject's importance

COMPLIANCE (2 of 2)

Recommendations:

• Clarify boundaries between responsibilities of NAO and PPRA (and MoF)

• Assess work performed by the external auditors

VALUE FOR MONEY (1 of 2)

• NAO has recently commenced detailed VFM work, although it is yet to perform any specific procurement-related VFM work

• No donor-monitored indicator concerning VFM (PEFAR recommendation that a means of measuring and enhancing VFM performance should be developed)

VALUE FOR MONEY (2 of 2)

Recommendations

• Indicator measure progress in VFM

• Update the $300m figure

• Perception indicators in corruption

OVERALL PICTURE

• "Tremendous Progress" yet lower grade awarded in PEFAR assessment

• High level of cooperation among donors• Highly process-orientated

Recommendations:• Improve consistency between and amongst tools

used for measurement and capacity-building.• Accommodate economy, efficiency and

effectiveness considerations