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Monday, October 25, 2010

Procurement principles should also apply to disposals

Law Must Protect Public Property
That the system of procurement and disposal of public assets in government is significantly flawed and that this system costs taxpayers billions of shillings each year.

There can be no doubt that the deals outlined in the report resulted in loss of public revenue. Properties such as the embassy plot in Lagos were grossly undervalued.

The nation has come a long way since the 1970s and 1980s when procurement was governed simply by circulars from Treasury.

The Public Procurement and Disposal Act of 2005 was designed to promote transparency. But the system is evidently failing. Amendments should be made to this law to make it far more difficult for public officials and their private sector accomplices to cheat the taxpayer.

Recommendations such as ensuring there are strong departmental internal audit systems, that the Kenya National Audit Office is strengthened and that there should be far more public access of procurement records for all ministries should be implemented urgently.

The overwhelming suspicion is that the Foreign Affairs ministry scandal is only the tip of the iceberg. Parliament should act to avert further loss of public money to corrupt officials who in the current scandal stopped short of auctioning public property.

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