RESPONSES TO ISSUES RAISED BY OIG AUDITORS
Issues in performance of key suppliers to support prevention activity under TACAIDS
| S/N | SPECIFIC ISSUE | RESPONSE / COMMENT |
| 1 | Average delay of 373 days to provide 40k condom dispensers vs 30 days – agreement | The supply of 40k condom dispensers and their installation were made within the agreement period. It’s true that for the first exercise was supposed to complete within 30 days as said by Auditors but there are Addendums to contract between suppliers and TAYOA and TAYOA and TACAIDs which extend the period of the contract. The main cause/ reasons for extension of the period are Manufacturing Industries in China where main material (Alco bond) and their accessories were ordered were closed due COVID 19 World Pandemic which affected production almost in all countries. Transport problem of goods from China to Tanzania due to the same COVID 19. Addendum and communication letters between parties to the contract explaining the situation hence requesting for a period extension are available and were availed to Auditors. it seems these were not taken in consideration by auditors. See the attachments below 40000 Addendum TAYOA and TACAIDS Letter from APECHI 2 MASENGA Delivery Schedule Letter from APECHI |
| Root causes | ||
| 2 | Lack of capacity assessment for TAYOA as SSR under TACAIDS grant | TAYOA has been working as SR under AMREF Tanzania implementing activities funded by Global Fund since 2018 for the period of 3 years to 2021 and had successful fulfilled its responsibilities on this. It’s extremely good performance which enabled it to be awarded the contract by AMREF again to work under it. Principally all SR working under PR 2 were subjected to thorough assessment prior to be awarded for contract. TAYOA has been working as SR for 5 consecutive years since 2018 and these facts are well known by TACAIDs. TACAIDs would have been supposed to assess the organization if the work could have assigned to organization not working as SR under Global Fund.TAYOA as SR under AMREF in 2019 successful implemented the procurement and Installation of 5,000 condom dispensers in 5 districts namely Ulanga Malinyi Kilombero, Bahi, Mpwapwa Kongwa and kondoa DC. The achievement and output of this pilot project as far prevention of HIV is concern triggered the extension of the project to all 26 Regions (184 District in Tanzania Mainland) See the attachments below SRs IV |
| 3 | No monitoring of procurement process at TAYOA by TACAIDS despite no capacity assessment on TAYOA procurement function | TACAIDs and TAYOA have several times held meeting discussing among other the implementation of the project. Minutes for the meeting are available.Team comprising TACAID’s internal Auditors has been follow with the exercise.A team comprising TACAIDs Internal Auditors and TAYOA staff did verification on installation of condom dispensers. The report is available and was share with OIG Auditors. See the attachments below Condom Committee Contacts Condom Minutes 16.01.2020 Condom Minutes 29.06.2020 Condom Minutes 08.07.2021 Condom Minutes 08.04.2021 Condom Minutes 30.03.2022 Condom-Minutes-29.06.2022.doc |
| 4 | Single sourcing contracts for condom dispensing (USD 0.9) | Condom Dispensing work was awarded to suppliers who did the Transportation and Installation exercise of Condom Dispensers because of the following reasons: – Single source condom dispenser noted by auditor was in respect of 35000 condom dispenser where by TZS 350,000,000 was budgeted and spent for the exercise. Considering the number of council which is 184 the amount spent per council is TZS1,902,174, this was too minimum for proper execution of the work in the situation could have been difficult if new supplier would have been engaged for the work.These suppliers had an economic advantage over others because are the ones who did Transportation and Installation exercise hence are familiar with places and areas where condom dispensers were installed hence cut down the cost which could have been incurred of introducing and showing the areas /places if new suppliers would have been appointed to execute the work.Condom Dispensers Transportation, Installation and condom dispensing are related works. Separating these two works was un economical in terms of additional cost required to introduce new suppliers and time required for the same. According to section 129 (1) of the public procurement Act procurement entity is allowed to enter into a turnkey contractThese suppliers were pre-qualified supplier by TAYOA and according to section 64 (2) of Public Procurement Act 2011 such type of work can be restricted.The decision to award these suppliers were made by Tender Board through circular resolution as per Section 58 para 1 of the public procurement act 2011. See the attachments below APROVE SUPPLIER LIST 2020-TAYOA Public Procurement Regulations 2013 Public_Procurement_Act_2011 TAYOA Procurement Manual CIRCULAR RESOLUTION 35000 TRANSPORT EVALUATION 35000.pdf |
| 5 | No SR /SSR guideline on vendor management and performance assessment of suppliers | This work was advertised by TAYOA and evaluation exercise was done. The evaluation exercise involves thorough assessment in accordance with criteria set including their performance and capacity. During the execution of the work the guideline used is the one provided by the Ministry of Health (OIG was provided these guideline as they requested from supplier TAYOA was copied in that communication) See the attachments below ISSUE NOTED BY OIG 10. Condom Distribution Guide_January 2019 PDF WARAKA WA UAGIZAJI NA USAMBAZAJI KONDOMU ZA UMMA_2019 Mwongozo wa MACs 2014 Mkakati wa Kondomu – Revised Condom Distribution Structure 11. Utumishi – Waraka VVU WWP Waraka wa Kondomu Mikoa na Wadau |
| 6 | No attempt to retender contracts after breach of contract | There was no a breach of contract committed by either part to the contract (Suppliers/TAYOA) as the work was completed within the agreed period (Refer to contract and Addendums which are party of the contract entered after providing letter giving reasons for delay. (Letter and addendum were provided to Auditors and hereby attached/linked). See the attachments below 1st Addendum with Supplier APECHI 1st Addendum with Supplier Masenga 2nd Addendum TAYOA and TACAIDS 2nd Addendum with Supplier APECHI 2nd Addendum with Supplier MASENGA 3rd Addendum with Supplier APECHI 3rd Addendum with Supplier MASENGA CONTRACT 35000 CONDOM DISPENSER APECHI CONTRACT PRODUCTION OF 20000 CONDOM DISPENSER APECHI CONTRACT PRODUCTION OF 20000 CONDOM DISPENSER MASENGA |
| Consequences | ||
| 7 | Key condom prevention activity delayed by a year | The delay was caused by factors as explained above |
| 8 | Gaps in existence of condom dispensers – 7 out of 47 (15%) not physically verified by OIG | Staff responsible for condom dispensers in council are allowed to reallocate them when needs arise. (e.g. when there are changes of hotspot like bar and brothels) Once such things happen communication has to been made to TAYOA and TACAIDS so as changes could be made in the data base., the shortfall noted by auditor was the result of reallocation and the data base be will adjust accordingly as it has been for other areas (later giving role and responsibilities of staff in the region and district/ council is attached/linked) See the attachments below Barua ya usambazaji |
