Ministry bypasses PPADB in CBD office lease

The PPADB did not approve the lease agreement for the Ministry of Trade headquarters in CBD. PIC: TSELE TSEBETSAME
The PPADB did not approve the lease agreement for the Ministry of Trade headquarters in CBD. PIC: TSELE TSEBETSAME

The Ministry of Trade and Industry is renting a building in the Central Business District (CBD) without the approval of the Pubic Procurement and Asset Disposal BOARD (PPADB), the latest Auditor General report reveals.

In the audit report for the financial year ended March 2014, Auditor General Pulane Letebele said the MTI‘s tender committee approved leasing of the headquarters at a cost of P60.8 million, far beyond the expenditure threshold of P25 million appropriate to the committee.

According to the law, tenders above P25 million are beyond the jurisdiction of ministerial tender committees, and can only be adjudicated and approved by the PPADB. “This is yet another instance where public officers flagrantly disregard clearly laid down rules, resulting in public funds being spent without proper authority even where large sums of money, calling for extreme care and diligence, are involved,” read the report.

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