MOEYI - Over $483 Million in Procurement Not Informed by Needs Assessment

Auditor General's Findings

The Department found that (from 2013/14 to 2011/18) the MOEYI spent $483 Million for contracts above $500,000 to purchase school furniture.

The Dept randomly selected 26 contracts and found that MOEYI awarded them a total of $169 Million to manufacture school furniture.

A fixed price contract was used for a rate that was acceptable to the Ministry of Finance and an arrangement was made for quality checks by the Bureau of Standards. The procurement method used was the direct contract methodology.

The AuGD determined that these contractual arrangements could have benefits but they did not find any evidence of how MoEYI arrived at its decisions to not use a public tender and to use a fixed term contract. MoEY did not provide any analysis including expected savings to eplain its decision to enter into such contracts.

The AuGD also had no evidence that MoEY conducted post-evaluations to determine if the arrangement proved to be a viable method.

Permanent Secretary (current): Maureen Dwyer

Breach Category: Procurement & Contract Management

Permanent Secretary (at breach): Grace McLean

Breach Type: Poor procurement planning

Status: Progressing

Last Assessed: September 16, 2020

Year Reported: 2019

Year Resolved:

Recommendation

To facilitate better distribution of textbooks and school furniture, MoEY should develop an inventory system to identify over and under supplies to allow for redistribution MoEY should consider providing the Media Services Unit (MSU) with the necessary resources to undertake timely audits with a wider scope.

On the other hand, the MSU should provide reports that give better particulars, such as specific items and quantities, to inform MoEY’s procurement plan as well as allow for redistribution of items among schools.

JAMP Update

The MOEY, in a detailed five page letter dated September 16, 2020 has informed JAMP that:
The MoEYI has improved its monitoring systems through the training of Education Officers and the development of the MoEYI Asset Management System.

In an effort to ensure the MoEY’s Compliance with the Procurement Handbook and Procurement Act regarding Contractors they have ensured the following:
i. Meetings with Municipal Corporations
ii. Establishment of Seven (7) Regional Infrastructural Committees
iii. Development of a Quick Reference Guide for Building

The full text of the response is provided in the attachment below.