The federal government of Ethiopia launched a first ever campaign to register disposable property left to perish in various federal institutions that receive budget from the federal government.
In a consultative meeting held on Friday, March 19, 2021 at the Ministry of Finance meeting hall, the Public Procurement and Property Disposal Agency (PPPDA) said that the plan is to register disposable property that are found in various governmental institutions from April 12 to 16, 2021.
Speaking at the event, director of the Agency, Haji Ibsa indicated that their audit findings disclosed that the majority of federal institutions as well as higher educational institutions have problems in procurement as well as property storage. In order to sustainably solve such problems, the agency has launched a campaign to register properties placed in various institutions as well as devise mechanisms for their disposal.
To this effect, he called on all federal and higher education institutions to coordinate their respective sub units so that this campaign will successfully be concluded.
For his part, the Minister of Finance, Ahmed Shide said that governmental procurement should ensure value for money as its budget is hugely invested in procurement of goods and services.
Further noting that procurement is where budgetary wastage occurs, Ahmed underlined that property accumulated in various institutions without being put in use degrades the environment apart from causing wastage.
“Proper disposal of property in various governmental institutions contributes to the greener economy the country aspires to bring about,” he said.
According to the audit finding report presented at the consultative meeting, the Agency identified 26 kinds of pitfalls ranging from vehicles administration, to lack of proper plans to purchase and dispose property. There was also a lack of communicating plans and performances to the Agency in announcing procurement bid that is more than the maximum amount set to purchase a certain property. Some institutions have also spent 20 percent more than the original price while purchasing goods and services.
Others were also found evaluating bidders with criteria that were not clearly indicated ahead of the bid. In addition, it was indicated that some institutions purchased more than they were allowed to do in direct purchases conducted without bids, while others were found to have delayed purchases of property, after they received the approval for emergency purchases under special circumstances.