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REPUBLIC OF RWANDARWANDA PUBLIC PROCUREMENT AUTHORITY(RPPA)Plot No. 2, KN 3 AV10th FLOOR GRAND PENSION PLAZAP. O. Box: 4276 KIGALI/RWANDATel: ( 250) 0786582957Website: [email protected] ANNUAL ACTIVITY REPORT2013-2014RWANDA PUBLIC PROCUREMENT AUTHORITY (RPPA)AVENUE DE LA PAIX, KIGALI-RWANDAP. O .Box: 4276, Tel.: (250) 0252501403, 0252501404, 0252501405,Fax: (250) 501402E-mail: [email protected] 2014

TABLE OF CONTENTSFOREWORD . viEXECUTIVE SUMMARY . vii0. INTRODUCTION . 11. ACTIVITIES OF THE BOARD. 22. AUDIT AND MONITORING . 22.1. Audit of tenders awarded by procuring entities during the fiscal year 2012- 2013 . 22.1.1. Introduction . 22.1.2. Methodology . 32.1.3. Categories of procuring entities audited . 42.1.4 Satisfactory compliant practices with the law and procedures . 42.1.5. Areas that need improvement . 82.1.6. Type of tenders audited and procurement methods used . 92.1.7. Outcome of the procurement audits as per the established complianceindicators . 112.1.8. Constraints encountered . 132.1.9. Recommendations to procuring entities . 132.1.10. Measures required to bring about the needed improvement . 142.2. Public procurement systems audit. 142.3. Compliance assessment . 152.4. Follow up of the execution of procurement plans, payment delaying issues andproblem areas in contract management in all procuring entities. . 162.4.1. Follow up of the execution of 2013-2014 procurement plans . 162.4.2. Delayed payments issues in public procuring entities . 222.4.3 Poorly performed and terminated contracts. . 232.5. Field visits . 233. CAPACITY BUILDING FOR PROCURING ENTITIES . 253.1. RPPA Trainings . 253.2. Coaching, on job training, and technical support . 253.3 Updating introductory and intermediate level training modules in publicprocurement. . 263.4 Training and coaching impact assessment . 263.5 Short courses in public procurement, CIPS, masters in public procurement . 27i

3.6 Assessing training needs in procurement in district hospitals and schools ofnursing and midwifery . 283.7 Updating reference prices . 283.8 Preparation of standard technical specification for items mostly used byprocuring entities . 293.9 Information Dissemination . 293.9.1 Radio programs . 293.9.2 Workshop of procurement officers. 303.9.3 Meetings in provinces and Kigali City . 303.9.4 News and Press release . 303.9.5 Press conferences. 313.9.6 Talk show (Kubaza bitera kumenya) . 313.9.7 Advertising TV and radio spots. 313.9.8 Implementation of a hotline (Short Code) in RPPA . 313.9.9 News on the RPPA website . 323.10 Information on staff changes in public procurement system . 323.11 Ranking public procuring entities basing on their performance in publicprocurement operations . 324. POLICY, LEGISLATION AND INVESTIGATION . 324.1. Policy and legislation . 334.2. Provision of legal advice . 344.3. Examination of integrity and performance of bidders. . 344.4. No objection or authorization . 375. RESOURCE MANAGEMENT . 375.1. Human resource management . 375.2. Information and communication technology (ICT) . 395.3. Stock management . 415.4. Financial management . 415.4.0. Introduction . 415.4.1. Statement of responsibilities . 425.4.2. Accounting policies . 465.4.3. Notes to the financial statements . 515.4.4. Budget performance report . 565.4.5. Petty cash certificate . 58ANNEXES . 59ii

ACRONYMSAFOS: Armed Forces ShopBNR: Banque Nationale du RwandaCHUB: University Teaching Hospital of ButareCHUK: University Teaching Hospital of KigaliCNLG: National Commission for the Fight against GenocideDMS: Document Management SystemDTWMS: Document Tracking and Workflow Management SystemEWSA: Energy, Water and Sanitation AuthorityFARG: Fonds d’Aide aux Rescapés du GénocideGMO: Gender Monitoring OfficeGoR: Government of RwandaICPAR: Institute of Certified Public Accountants of Rwanda.ICT: Information and Communication TechnologyILPD: Institute of Legal Practice and DevelopmentIMA: International Management AcademyIPAR: Institute of Policy Analysis and ResearchIPRC: Integrated Polytechnic Regional CentreIRST: Institute of Scientific and Technical ResearchISAE: High Institute of Agriculture and Animal HusbandryKIM: Kigali Institute of ManagementKWAMP: Kirehe Community Based Watershed Management ProjectLWH: Water Harvesting and Hillside IrrigationMIDIMAR: Ministry of Disaster Management and Refugee AffairsMIFOTRA: Ministry of Public Service and LabourMINADEF: Ministry of DefenceMINAFFET: Ministry of Foreign Affairs and CooperationMINAGRI: Ministry of Agriculture and Animal resourcesMINALOC: Ministry of Local GovernmentMINEAC: Ministry of East African CommunityMINECOFIN: Ministry of Finance and Economic PlanningMINEDUC: Ministry of Educationiii

MINICOM: Ministry of CommerceMINIJUST: Ministry of JusticeMININFRA: Ministry of InfrastructureMININTER: Ministry of Internal SecurityMINIRENA: Ministry of Natural ResourcesMINISPOC: Ministry of Sports and CultureMMI: Military Medical InsuranceMOH: Ministry of HealthMYICT: Ministry of Youth and ICTNAEB: National Agriculture and Export Development BoardNCC: National Commission for ChildrenNCHE: National Council for Higher EducationNCPD: National Council for the Persons with DisabilitiesNEC: National Electoral CommissionNISR: National Institute of Statistics of RwandaNLRC: National Law Reform CommissionNPPA: National Public Prosecution AuthorityOAG: Office of the Auditor GeneralONATRACOM: Office National de Transport en CommunORINFOR: Office Rwandais d’InformationPADAB: Bugesera Agricultural Development Support ProjectPAPSTA: Projet d’Appui au Plan Stratégique pour la TransformationDe l’AgriculturePEs: Procuring EntitiesPPS: Procurement Publication SystemPSC: Public Service CommissionPSCBS: Public Sector Capacity Building SecretariatRAB: Rwanda Agriculture BoardRBC: Rwanda Biomedical CenterRBS: Rwanda Bureau of StandardsRCA: Rwanda Cooperative AgencyRCAA: Rwanda Civil Aviation AuthorityRCS: Rwanda Correctional ServicesRDB: Rwanda Development Boardiv

RDRC: Rwanda Demobilization and Reintegration CommissionREB: Rwanda Education BoardREMA: Rwanda Environment Management AuthorityRHA: Rwanda Housing AuthorityRIAM: Rwanda Institute of Administration and ManagementRLDSF: Rwanda Local Development Support FundRMF: Road Maintenance fundRNRA: Rwanda Natural Resources AuthorityRNYC: Rwanda National Youth CouncilRPPA: Rwanda Public Procurement AuthorityRRA: Rwanda Revenue AuthorityRSSB: Rwanda Social Security BoardRSSP: Rural Sector Support ProjectRTDA: Rwanda Transport Development AgencyRURA: Rwanda Utilities Regulatory AgencyRwf: Rwandan FrancsTC: Tender CommitteeWDA: Workforce Development Agencyv


EXECUTIVE SUMMARYFor a better performance and to achieve its mission, Rwanda Public ProcurementAuthority developed an action plan for the fiscal year 2013/2014. This fiscal year wasthe second year in the implementation of the RPPA Strategic Plan 2012/13–2014/15.This activity report focuses mainly on the following: audit and monitoring ofprocuring entities, capacity building, and enhancement of legislation and other areasof the institution’s responsibilities such as financial management, human resourcemanagement as well as ICT.Regarding capacity building in procurement, members of independent review panelsat District and national levels were trained on the basic procedures of publicprocurement and on procedures of reviewing procuring entities decisions. Inaddition, RPPA staff provided training for procurement officers and tender committeemembers from different procuring entities on basic procurement procedures. Thetotal number of people that were trained was one thousand seven hundred eightyseven (1787).Concerning monitoring and audit, 58 procuring entities against 70 scheduled wereaudited form 1st July 2013 to 30th June 2014. Also 68.4% of all tenders awarded bydifferent audited procuring entities were audited. In addition, an internal control andaudit manual for public procurement was revised and a monitoring and evaluationframework for audits conducted by RPPA was also developed.With regard to legal affairs and investigations, RPPA continued to work onimplementing texts of the law 12/2007 of 27/03/2007 on public procurement asamended and completed by the law n 05/2013 of 13/02/2013. RPPA conductedinvestigations to assess bidders’ integrity and performance as well as updated theblacklist of fraudulent suppliers, among other activities.vii

0. INTRODUCTIONThe Rwanda Public Procurement Authority was established on 30/12/2007 by thelaw no63/2007 establishing the Rwanda Public Procurement Authority (RPPA) anddetermining its mission, organization and functioning which was later replaced by thelaw no 25/2011 of 30/06/2011.RPPA’s vision is to make Rwanda the centre of regional excellence in publicprocurement and its mission is to achieve the best value for money for thegovernment of Rwanda by setting up procurement standards, guidelines, andprocedures, building capacity and monitoring procurement proceedings inorder to ensure competition, economy, transparency, fairness, efficiency,accountability and zero tolerance to corruption in all public procurementactivities.The main function of Rwanda Public Procurement Authority is to regulate, monitorand build capacities in public procurement and this report summarizes activities thatwere carried out in relation to responsibilities of RPPA during the fiscal year 20132014 as detailed in the following pages. These activities are grouped in five partsnamely: activities of the Board of Directors, monitoring and audit, capacity building,legal affairs and management of resources.The report shows the Board’s supervisory and decision making activities. Inmonitoring and audit, the report shows the procuring entities audited, audit findingsand audit recommendations. In capacity building, the report shows training sessionsthat were conducted and information dissemination activities that were undertaken.As far as legal affairs are concerned, the report highlights progress in updating ourpublic procurement legal framework. It also shows areas where RPPA provided legaladvice and examined cases of violating the law on public procurement. The lastchapter about management of resources concerns human, stock and financialmanagement activities.1

1. ACTIVITIES OF THE BOARDThe Board of Directors, as the main decision making body of RPPA, played a majorrole in the achievement of the institution’s objectives. Some of the achievementsregistered by the Board in their meetings are the following:(i)The approval of RPPA annual activity Report 2012-2013;(ii)The examination and deciding on cases of bidders and governmentofficials who are reported to have broken the law;(iii)The approval of an internal audit report summary for the first quarter 20132014;(iv)Examination and approval of requests for using less competitive methods;(v)Appointment of staff;(vi)The approval of June-December 2013 Semester report.2. AUDIT AND MONITORING2.1. Audit of tenders awarded by procuring entities during the fiscal year 201220132.1.1. IntroductionRwanda Public Procurement Authority carried out procurement audits in 58procuring entities (PEs) over 70 that were planned i.e. 82.8%. These audits werecarried out between July 2013 and June 2014 for the procurement made during thefinancial year 2012-2013 by a team of 12 auditors plus their 3 team leaders.The PEs audited comprised of four (4) Central Government Institutions, two (2)Provinces, twenty two (22) Districts and thirty (30) Public Institutions and NationalCommissions. Collection of data on the field, their analysis and the elaboration ofreports took one month for every entity. The method of sampling developed by theUniversity of Florida with a confidence level of 90% was used during the audit. Asample of 1,610 procurement contracts was selected for the audit on anaccumulated total of 2,354 contracts, i.e. 68.4% of tenders awarded by the 582

entities. The value accrued from all contracts, taken as sample, amounts to120,140,332,749 Rwf.The objective of the audits was to determine whether the procedures, processes anddocumentations were in conformity with the law No12/2007 of 27/03/2007 on publicprocurement and the Ministerial order No 001/08/10/MIN of 15/01/2008 establishingregulations on public procurement and standard bidding documents, the RPPAcirculars and international best practices in public procurement. The aim was toidentify weaknesses of PEs in complying with the law and Regulations to enableappropriate measures, including implementation of appropriate capacity buildingstrategies, to be taken.The actual audit articulated around all phases of public procurement proceedingsand execution of contracts namely:i)Elaboration of annual procurement plans;ii)Procurement methods used;iii)Preparation of tender documents;iv)Publication;v)Opening and evaluation of bids;vi)Notifications;vii)Request for performance guarantees;viii)Signature of contracts andix)Execution of contracts.2.1.2. MethodologyFor the completion of audits, the following methodology was applied: Pre-audit preparations; An introductory meeting with each procuring entity to be audited; Review of procurement documents; Closing meeting held at procuring entity’s office to discuss the audit findings; Elaboration of provisional audit reports and their transmission to the concernedprocuring entities;3

Holding a meeting to discuss comments on the provisional audit report; Elaboration a final report and its transmission to MINECOFIN with a copy to theaudited entity.2.1.3. Categories of procuring entities auditedTable 1: Description of categories of procuring entities auditedN 01020304Descriptionof categoriesof ions.ProvinceDistrictsOther PublicInstitutionsTotal:Numberof entityNumber of Number oftenderstendersawardedauditedAmount in 0,140,332,7492.1.4 Satisfactory compliant practices with the law and proceduresIn all audited procuring entities, the audit showed that there is an improvement in allprocurement indicators included in the table 2 presented below.The following are the areas where all (100%) procuring entities showed satisfactorilycompliant practices for at least 80% of awarded tenders: Preparation of annual procurement plan and use of appropriate procurementmethods; Awarded tenders that were approved by internal tender committee; Preparation of tender documents/request for proposals; Award based on criteria in tender documents; Availability of opening and evaluation reports; Provisional and final notification to successful/unsuccessful bidders;4

Tenders with either an authorized purchase order or a contract signedbetween two parties.The table below shows the number of procuring entities that respected each of theten indicators of good practice in the procurement process and contractmanagement for at least 80% of the tenders they awarded.Table 2: Performance indicators for at least 80% of tenders awardedNo1Performance indicators for at Number of procuringPercentageleast 80% of tenders awardedentities that respected theof auditedindicator for at least 80%procuringof the tenders awarded.entities.Awarded tenders that 0/5886.242/5872.2planned.2Tender awarded through

Authority developed an action plan for the fiscal year 2013/2014. This fiscal year was the second year in the implementation of the RPPA Strategic Plan 2012/13– 2014/15.This activity report focuses mainly on the following: audit and monitoring of procuring entities, capacity building, and enhancement of legislation and other areas