Guvamatanga tightens screws on govt procurement

...Directs audit depts to review contracts

BUSINESS REPORTER 

The Ministry of Finance and Economic Development has directed internal audit departments in ministries to review all running and future contracts as it seeks to halt the rot caused by extortionist pricing by government suppliers.

The due diligence reports have to be submitted to his office early next month, secretary for Finance and Economic Development George Guvamatanga wrote to all permanent secretaries. The letter was also addressed to the heads of Parliament and commissions.

The directive comes as the government recently admitted that the pricing model used in government was fuelling the parallel market rates for foreign currency leading to the routing of the local currency. This resulted in prices quickening  with inflation jumping to 256.9% in July from 191.7%.

“Ministries Internal Audit departments shall carry out a due diligence review exercise on all running and future contracts with special focus on pricing to all payment runs submitted to Treasury as a July 31 and were suspended for funding,” Guvamatanga wrote in a letter dated August 18, 2022.

“The due diligence reports for all submitted and suspended payment runs shall be submitted to the secretary of Finance and Economic Development by 2 September, 2022.”

Guvamatanga said the internal audit department should carry out due diligence preview exercises on prices for future contracts and procurements and submit their reports attached to the payment runs to Treasury.

He said ministry heads have to ensure that public entities under their purview carry out the same exercise.

 

 

 

Related Articles

Leave a Reply

Back to top button