Two COVID-19 centres of power worry PAC
Goitsemodimo Kaelo | Monday January 24, 2022 06:00
In its 58th meeting report to the National Assembly, the committee questioned why the COVID-19 Presidential Task Force was usurping the powers of the Ministry of Health and Wellness by engaging in COVID-19 procurement when the responsibility falls within the portfolio of the ministry.
The report indicates that during the PAC meeting, the Dithapelo Keorapetse-chaired committee sought clarification from the ministry’s accounting officer, permanent secretary Grace Muzila on why direct appointment is the preferred method for COVID-19 procurement. “In her response, the accounting officer stated that the Task Force was mainly engaged in the procuring quarantine facilities and assisting the Ministry of Health and Wellness due to the heavy workload brought about by the COVID-19 pandemic,” reads the report in part. She further stated that direct procurement was adopted because COVID-19 was treated as an emergency adding that procurement was mainly from companies that have been traditionally used by the Ministry of Health and Wellness. However, the committee stated that it was not convinced by her response, alluding to the fact that there has been reports of new companies being awarded COVID-19 contracts.
Furthermore, the PAC is of the view that the use of direct procurement method should only be adopted in exceptional cases. It said direct procurement is a non-competitive method which increases the risk of inflated pricing and close relations with some suppliers to the detriment of others. The committee also said since most COVID-19 procurement work fell under emergency, there is need for openness and transparency regarding the procurement.
In order to ensure transparency and accountability, the committee suggested that all COVID-19 related procurement should be periodically published on the Public Procurement and Asset Disposal Board (PPADB) website, with full details of the companies receiving procurement contracts and the beneficial owners of the companies.
Moreover, Keorapetse’s committee said with the passage of time, the impact of COVID-19 is no longer unexpected, as such direct awards should gradually be abandoned as the medium and long-term needs of the pandemic can now be predicted.
“Judgement should be used even during direct awards to ensure that prices are not higher than the market prices,” read the report.
The committee said competitive processes should be used to allow equal opportunity to bidders, and that before direct procurement is used, there should be justification as to why the services can only be obtained from one source including the action taken to identify additional suppliers. The report by PAC is on the examination of the accounts of government for the financial year ended March 31, 2019 and the performance audit reports submitted by the Auditor-General (AG). It follows a report by the AG, which uncovered millions of pula that was wasted, unaccounted for or abused in the first eight months after the declaration of COVID-19 as a global pandemic.
The AG’s report had noted that inexperienced companies were handpicked for tenders at inflated prices but failed to deliver, with the shambolic preparations worsening both the crisis and the impact on the economy. Among some of the cases that sparked anger among citizens was the procurement of PPEs and medical commodities, which was reportedly not done at market rates and not in compliance with emergency procurement processes.