The Senate Public Accounts Committee has expressed concerns over the Treasury's handling of government procurement regulations. Committee Chairperson, Moses Kajwang', stated that the High Court nullified the procurement regulations in December last year due to lack of public participation. As a result, the Treasury and the Attorney General's office allowed the appeal period to lapse, leaving the government without valid regulations for procurement. This has raised concerns about the potential for irregularities and corruption in government procurement.
According to Kajwang', the government procures goods worth over Sh3 trillion every year, and the lack of valid regulations exposes public funds to risks. He regretted that public entities are buying goods and services without regulations or proper governing laws, making it challenging for the Ethics and Anti-Corruption Commission (EACC) to investigate or prosecute State officers. The Homa Bay Senator emphasized that the Treasury Cabinet Secretary, John Mbadi, has failed to issue policy guidelines since the judgment, and procuring entities are relying on expired 2006 regulations.
The committee's concerns were echoed by Kitui Senator, Enock Wambua, who stated that the Treasury has presided over an illegality for the last 10 months, exposing the country to corruption-related scandals. He warned that the impasse has left the EACC unable to investigate or prosecute State officers, risking massive loss of public resources. Wambua expressed suspicion that someone is deliberately not bringing up regulations to guide public procurement at a time when the country is making significant public investments.
Public Procurement Regulatory Authority Director General, Patrick Wanjuki, acknowledged that the government is operating without regulations while the Attorney General considers an appeal. Wanjuki stated that they have resorted to internationally recognized procurement norms to bridge the gaps in procurement regulations. This has enabled the government to procure essential goods and services, such as drugs and other vital supplies.
The Senate Committee's criticism of the Treasury's handling of procurement regulations has raised questions about accountability and transparency in government procurement. Kajwang' expressed disappointment that Mbadi failed to attend a meeting with Treasury officials, saying that the Cabinet Secretary must respond to invitations and summons by Parliament. The committee's concerns have highlighted the need for the Treasury to address the regulatory gaps and ensure that government procurement is conducted in a transparent and accountable manner.
The lapse in procurement regulations has also raised concerns about the constitutionality of the Electronic Government Procurement (e-GP) system. Kajwang' warned that the e-GP system could be declared unconstitutional since it was built on the annulled regulations. This has significant implications for the government's efforts to enhance transparency and accountability in procurement through technology.
The Senate Committee's findings have emphasized the need for the Treasury to take urgent action to address the regulatory gaps in government procurement. The committee's concerns have also highlighted the importance of collaboration between the Treasury, Parliament, and other stakeholders to ensure that government procurement is conducted in a transparent, accountable, and corruption-free manner.
Key points
- The Senate Public Accounts Committee has faulted the Treasury for allowing government procurement to continue without valid regulations.
- The lack of valid regulations exposes public funds to risks of irregularities and corruption.
- The Treasury Cabinet Secretary, John Mbadi, has failed to issue policy guidelines since the judgment, and procuring entities are relying on expired 2006 regulations.
