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Reg.9 RDC split $12M in contracts to avoid NPTAB – AG Report
(Kaieteur News) – Auditor General (AG) Deodat Sharma in his 2024 Report exposed that the Regional Democratic Council (RDC) of Region Nine breached procurement procedures by splitting $12.9 million in contracts to avoid going to the National Procurement and Tender Administration Board (NPTAB) for adjudication.
According to the Report, the Regional Administration was allotted $175 million for capital purchases which entails the purchase of trucks, boats and engines; purchase of furniture and equipment; and purchase of ambulance and all terrain vehicles (ATV).
The AG detailed that the Region had procured three Toyota Hilux vehicles valued at $12.900 million under Programme 795 for health services. The Report noted that the acquisitions were executed through three payment vouchers – 79A-2024-001659, 79A-2024-001660, and 79A-2024-001661, all dated May 17, 2024, and issued to a single supplier.
Further, the Report stated that upon an audit examination of the payment vouchers, Regional Tender Board (RTB) Minutes and other related documentation by the auditing team, it was revealed that the procurement of the three vehicles were adjudicated on the same date, as documented in RTB Minute №. 10/2024, and despite the motor vehicles being of different model years (1994, 2002 and 2003), the supplier’s quoted price was at $4.3 million each.
“Furthermore, it appears that the Regional Administration deliberately split the payments in order to utilise the Request for Quotations procurement method, thereby circumventing adjudication by the National Procurement Tender Administration Board (NPTAB), as the total value of the purchase would have exceeded the $8M threshold,” the AG pointed out.
Responding to the AG, the Head of Budget Agency indicated that the Regional Administration noted the findings and this practice will not occur in the future.
The Audit Office in its recommendation said the Head of Budget Agency must ensure there is full compliance with the FMA Act 2003, Procurement Act 2003 and compliance with the Stores Regulations 1993 at all times.
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