Background

The government of Uganda initiated reforms in the public procurement and disposal sector in 1997, following the enactment of the 1995 constitution and the introduction of several reforms and structural adjustment programmes. Prior to this, public procurement was governed by the 1977 Public Finance (Tender Board) Regulations under the Public Finance Act of 1964. The system was centralized and had been in operation for over thirty years. The size of government had grown considerably and the centralized procurement system was characterized by several shortcomings, which included:

• Heavy clogging of tender requests and attendant bureaucratic delays;
• Inefficiency;
• Corruption; and
• Lack of accountability and transparency.

The reforms were initiated against the backdrop of lack of accountability and transparency and absence of a culture of value for money procurements and disposals. The development partners also recommended to Government to put in place appropriate public procurement practices based on international standards which are fair, transparent, competitive and non-discriminatory to all potential providers of goods, services and works.

In light of the above, in 1998, Government set up a task force comprising the Central Government Ministries, the private sector and the donor community led by the World Bank. The task force carried out several consultations and submitted its report in March 1999. The task force identified widespread corruption and malpractices in the then procurement system. The task force recommended that:

• The Accounting Officer be directly responsible for the procurement function under his/her department from the identification of the need to the award of contracts to the best evaluated bidder and also to review decisions.
• The role of the Central Tender Board should remain regulatory i.e. set standards, monitor compliance, review procurement decisions, audit and investigate complaints by the contracting parties and build capacity in the procuring entities.
• The procurement and disposal function should be decentralized to each government entity under the respective Accounting Officers
• Contracts committees should be set up in all entities to adjudicate and award tenders.
• Procurement and disposal units, staffed with procurement professionals, should be established under each respective procuring and disposing entity to manage the procurement and disposal function.
• Government should set up an independent regulatory Authority to set standards, advise Government, monitor compliance and regulate public procurement and disposal of public assets in Uganda.

The above recommendations were forwarded to Cabinet, which approved them and proposed immediate interim measures to implement the new system.

The Minister of Finance, Planning and Economic Development issued the Public Finance (Procurement) Regulations 2000 to initiate and regulate the new system while Government developed a comprehensive law to create an independent Public Procurement and Disposal of Public Assets Authority to regulate procurement and disposal of public assets in Uganda.

The Public Procurement and Disposal of Public Assets Act 1 of 2003 was passed by Parliament in November 2002 and assented to by His Excellency the President in December 2002. The law was gazetted in January 2003 and brought into effect by the Minister of Finance Planning and Economic Development on 21 February 2003. The Act set up the Public Procurement and Disposal of Public Assets Authority as the principal regulatory body for public procurement and disposal.

The law is now in operation and all Government departments and other Government-owned bodies are obliged to follow the law. The law emphasizes best practices including procurement and disposal principles, rules, administrative review systems, Codes of Conduct, as well as suspension of providers for offences and disciplinary measures against public officers who commit malpractices.

The law is also complimented by Regulations, Guidelines, Forms and Standard Bidding Documentation. These serve to assist the procuring and disposing entities and providers of services, supplies and works in carrying out procurement and disposal processes.

Strategic objectives of PPDA

The PPDA’s objectives are as set out in Section 6 of the Act, namely, to:

1. ensure the application of fair, competitive, transparent, non-discriminatory and value for money public procurement and disposal standards and practices;
2. harmonise the procurement and disposal policies, systems and practices of the Central Government, Local Governments and statutory bodies;
3. set standards for the public procurement and disposal systems in Uganda;
4. monitor compliance of procuring and disposing entities; and
5. build procurement and disposal capacity in Uganda.

The objective at a) describes the principal purpose of the PPDA’s regulatory role. That at b) reflects the need to bring the benefits of the public sector reform programme to all levels of government and to bring about a properly integrated system. Regarding c), as well as the standards contained in the Act and Regulations, the PPDA sets additional standards in the guidelines it issues. The law may not be fully observed by all PDEs on account of misunderstanding of its requirements or an attachment to traditional practices and the PPDA is therefore charged by the objective at d) to monitor compliance with the Act, Regulations and guidelines by all relevant parties; this objective is discharged through the PPDA’s audit, inspection and investigation function. Finally, the objective at e) recognises that procurement and disposal capacity in Uganda needs to be strengthened in respect of professional procurement skills and understanding of the law and the purposes of the reform programme.

The Organisational Structure of the PPDA

Board of Directors
The Board of Directors is established under Section 10 of the Act to execute the functions and powers of the Authority. The Board consists of a non-executive chairperson, between four and six non-executive members and the Executive Director.

Legal and Compliance Department
The Department, headed by a Director assisted by two Managers and two Officers, seeks to carry into effect the policies in the PPDA Act.

Procurement Audit, Inspection and Investigations Department
This Department, headed by a Director assisted by two Managers and two Officers, conducts audits and inspections of PDEs and investigates complaints and applications for administrative review.

Training and Capacity Building Department
The Department, headed by a Director assisted by two Managers and two Officers, is responsible for the planning and operation of training courses and for other measures to build up procurement and disposal capacity.

Finance and Administration Department
The Finance and Administration Department, headed by a Director, handles all administrative and financial matters, including liaison with other Departments. In addition to the Director, the Department has two Managers – one in charge of Finance and Administration and the other in charge of Information Technology – and two Officers in support.

Internal Audit Unit
Internal Audit Unit is headed by a Manager who reports to the Board of Directors but is a member of the Management Team and reports also to the Executive Director. He/She is assisted by an Audit Officer. The unit is responsible for internal quality assurance within the PPDA.

Location and Address

Plot 1 Pilkington Road,Workers' House 14th Floor.
P.O.Box 3925,Kampala Uganda
Tel: 256 414311100 Fax:256 414344858

Plot 39,Nakasero Road
Tel:256 417116500 Fax:256 414250031
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