Auditor general maintains RADA breached procurement rules
AUDITOR General Pamela Monroe Ellis is standing by findings of a performance management audit of the Rural Agricultural Development Authority (RADA) that the agency breached procurement guidelines, based on investigations carried out by her office, on its management of the Farm Road Rehabilitation Programme (FRRP) from 2014 to 2019.
According to the findings of the report, which was tabled in Parliament in October, the authority’s process of selecting contractors was not always transparent or competitive.
The auditors said that of the 112 road rehabilitation contracts valued at $1.6 billion that were reviewed, RADA used the local competitive bidding methodology for only four contracts, valued at $90.8 million.
“Conversely, RADA utilised the limited tender methodology for 75 contracts valuing $1.04 billion,” the report said.
Monroe Ellis said RADA was unable to indicate the basis on which contractors were preselected for an invitation to bid on road rehabilitation contracts. Furthermore, she outlined that in six instances RADA used the limited tender methodology to award contracts, valuing $129.8 million, despite the procurement guidelines not being met, “thereby denying other qualified contractors the opportunity to participate in the procurement process”.
At yesterday’s meeting of the Public Accounts Committee (PAC) at Gordon House, chief executive officer of RADA Peter Thompson explained that the contracts were put to tender at one value but the responses returned at higher values, from which the lowest bidders were selected.
Government member and St Catherine South Western Member of Parliament Everald Warmington argued that this was normal par for the course in works contracting.
But the auditor general said: “I have not been advised of the estimation provided by Mr Thompson here this morning [but] the finding, as it is remains, there was a breach – unless Mr Thompson can provide evidence to the contrary.”
“I know that the heads of agencies oftentimes can provide an explanation which may appear reasonable, but it is my responsibility to point out where there are breaches, and even where I may think it’s reasonable, I cannot take it on myself to accept it because then I become complicit, and I will be called on to provide an explanation alongside the perpetrators of the act,“ added Monroe Ellis.
The probe also found that RADA utilised the direct procurement and emergency methodologies for 33 contracts, valuing $520.93 million, although the allowable circumstances permitting the direct and emergency procurement methodologies were not met.
…more
Image: geralt (Pixabay)