May 2019 Q2 b&c
b) Funds are released from the consolidated fund to the Ministries, Departments and Agencies (MDAs) for use only when appropriation bill has been passed into an appropriation act. However, when Appropriation Act is issued, there are certain procedures usually followed in making payments for Capital Expenditure.
Required:
Outline the procedures for payment of works procured by an MDA. (4 marks)
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The general rule is that all covered entities shall use GIFMIS from the commencement of procurement process through to payment.
The procedures for payment of works procured by MDA include the following:
i) Inspection for the purpose of certification
As a condition for certification, the PSO shall inspect the physical output of the works and supplies in the field. This can be done before progress payment is made or when the work is fully completed.
The PSO may authorise an officer with adequate expertise to carry out the inspection on his behalf.
ii) Certification of completion of works or supply of goods and services
Upon the completion of works or supply of goods and services, the Principal Spending Officer (PSO) prepares a certificate statement in respect of the work and stores received and this statement shall include:
- The quantity and particulars of the works and supply.
- The method and result of the inspection,
- Any evidence supporting the results.
- the necessary remedial actions where the PSO identifies that the work or supply is inconstant with contracts or specification such as partial rejection, full rejection and others actions.
iii) Record invoices and supporting document
When certificate is issued, the PSO records the details of the invoices in the GIFMIS and upload the certification statement and other supporting documents onto the GIFMIS.
iv) Record of approval of payment voucher
A payment by a covered entity shall be accompanied with a payment voucher authorised by the head of accounts and approved by the PSO on the GIFMIS.
Here the head of accounts and the PSO should ensure:
- the validity, accuracy and legality of the claims for payments.
- the commitment has been approved through the Purchase Order or Expense Order generated under the GIFMIS.
- An invoice, certificate statement and completed set of supporting documents are recorded in the GIFMIS.
v) Payment
When a payment voucher is approved, the Controller and Accountant General shall release the cash to the covered entities using the GIFMIS.
All payments for expenditure of covered entities shall be made through GIFMIS system using the following methods:
- Electronic fund transfer (EFT)for third party transactions
- System cheques or electronic means for withdrawal of money for internal payments of allowance.
- Physical cash disbursement only from imprest and payment of allowances to ultimate individual beneficiaries.
c) Section 92 (1) of the Public Procurement Act, 2003 (Act 663) provides that any person who contravenes any provision of the Act commits an offence and where no penalty has been provided for the offence, the person is liable on summary conviction to a fine not exceeding 1000 penalty units or a term of imprisonment not exceeding five years or to both.
Required:
Explain FOUR (4) circumstances that may constitute an offence as provided by the Public Procurement Act 2003, (Act 663). (6 marks)
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(a) entering or attempting to enter into a collusive agreement, whether enforceable or not, with any other supplier or contractor where the prices quoted in their respective tenders, proposals or quotations are or would be higher than would have been the case has there not been collusion between the persons concerned;
(b) directly or indirectly influencing in any manner or attempting to influence in any manner the procurement process to obtain an unfair advantage in the award of a procurement contract;
(c) altering any procurement document with intent to influence the outcome of a tender proceeding and this includes but is not limited to
(i) forged arithmetical correction;
(ii) insertion of documents such as bid security or tax clearance certificate which were not submitted at bid opening; and
(d) request for clarification in a manner not permitted under this Act.