MLSS – $24.5 million of unapproved sole sourcing and $12.3 million in contract variation without requisite approval

Auditor General's Findings

The 2013 Annual Report identified several procurement breaches.

• Unapproved sole source for 66 desktop computers and 2 laptops for $6 million minus requisite TCC and NCC certificate prior to contract award.
• Unapproved sole source of consultant for $2.7 million contract and without TCC submission prior to award.
• The Ministry did not obtain the requisite competitive quotations, and or advertise the procurement opportunities for eight purchases totalling $15.8 million. In six instances, the MLSS used the Direct Contracting method. However, the reasons given for the use of this method of procurement did not meet the criteria stipulated in the Procurement Guidelines.

Contract variations for air conditioning maintenance services and elevator repairs were not reported to Min of Finance. the Ministry entered in two contracts for $2.3 million and $312,000 to repair and service, air conditioning units and elevators, respectively. However, for the period under review, $13.6 million and $1.4 million were paid to the companies.