OPEN CONTRACTING JOURNEY IN UGANDA · 2019-04-17 · Open Contracting Journey In Uganda Page | 3 THE POWER TO SOLVE PROBLEMS BEGINS WITH THE PEOPLE In principle, open data should

Open Contracting Journey In Uganda

OPENCONTRACTING JOURNEY INUGANDAMARCH 27, 2019

The Open contracting-Contract data disclosure, citizen participation and government feedback are essential in order to promote value for money in public contracting, fair business practices, efficiency , fraud detection and better services. Uganda was the first African country to publish data in full Open Contracting Data format. This case study highlights Uganda’s journey of opening public contracting.


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THE POWER TO SOLVE PROBLEMS BEGINS WITH THE PEOPLEIn principle, open data should make it easier for businesses and governments to collaborate. It enables citizens to be more actively involved. With readily available data, citizens are better able to identify and address problems, without relying solely on public authorities. Open data promises to increase government efficiency thorough analytical insights, and provide a new way for us citizens to be involved in all stages of decision making

Nearly 60% of public budget is spent annually through public contracting. Having this in mind, it is important that the public knows where the money goes, how it is spent, and what value public spending brings to citizens.

Second, public procurement in Uganda and world over is marked by numerous problems such as collusion, delays, corruption, conflicts, shoddy work, ghost contracts, unplanned contracts, fraud and confidentiality among other challenges. Without transparency, problems are compounded and mistrust among stakeholders increases, further inflaming problems and undermining money value.

There are great opportunities for all in public contracting.

Citizens can access better services from better contract performance, excluded women and local communities can have opportunities to win tenders, nationals can know what rules favor them while international business can predict and invest in a market. Without disclosure, these opportunities are unknown

WHY OPEN DATA MATTERS IN UGANDA


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IT HAS NOT BEEN AN EASY START

PPDA's positive attitude wasn't a reflection of other agencies and particularly procurement authorities. We tried to engage them constructively to facilitate access to contracts and space to discuss findings from time to time. We proposed the idea of formalizing a relationship in this regard with the management of the Uganda National Road Authority (UNRA). At the first meeting, we explained the idea that UNRA management welcomed. We then asked the agency to assign a focal point person we would occasionally engage with. We also asked for projects to pilot our work.

As far as the memorandum of understanding is concerned, they kept us following up for several months without progress until the entire management was replaced following the Katosi scandal.

On a positive note, UNRA provided us with 6 roads to pilot our contracts monitoring tool. Results of the pilot served two purposes. UNRA was presented with a list of findings and recommendations from the monitoring.

The draft monitoring tool, was refined and finalized. Results were welcomed, but this did not affect lack of progress in formalizing a relationship and with new management on board.

Kampala Capital City Authority (KCCA) is another agency we sought to collaborate with. We held a meeting with the director of engineering and briefed him about our idea and intention to monitor some projects implemented by KCCA.

We were advised to write formally to the Executive Director seeking the partnership. In a letter dated October 1, 2014, KCCA informed UCMC that there were enough government agencies to monitor projects and thus no scope for citizens to engage in the process

In 2012, AFIC and other civil society organizations established the Uganda Contract Monitoring Coalition (UCMC). The goal of these 20 organizations was to monitor government contracts in the health, education, agriculture, roads, energy and environment sectors with the aim of providing government feedback in order to improve contract performance and value for money. The Public Procurement and Disposal of Public Assets Authority (PPDA) welcomed the idea of a civil society coalition and offered meeting and training support.

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ENHANCING VALUE FOR MONEY IN SOCIAL SERVICE CONTRACTS IN UGANDA

In December 2014, AFIC received a US$ 650,000 grant from the World Bank’s Global Partnership for Social Accountability (GPSA) to implement a project, "Enhancing value for money in social service contracts in Uganda" The project was to facilitate citizen monitoring of health, education and agriculture contracts in the five districts of Mityana, Mubende, Nakaseke, Ntungamo and Nebbi. Public officials and CSOs were also to be trained on information access and open contracting to create a supportive atmosphere for the programme.

In order to introduce this project, meetings were held with the respective ministries of education, health and agriculture. This was followed in respective districts. While the programme was welcomed, accessing information from ministries and local government contracts through the Access to Information Act became difficult.

The Ministry of Education and Sports requested us to draft a memorandum of understanding which upon signing would be the framework through which access to contracts and space for engagement would be provided. AFIC drafted and submitted draft MOU but no response was received. Calls for follow-up meetings went unanswered. Ultimately, project management at the Ministry of Education and Sports was terminated following reports of corruption and mismanagement, a possible factor as to why the officials were not interested in enabling citizen monitoring of contracts.


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Regarding the Ministry of Health, the World Bank helped connect AFIC to officials running the project that AFIC and its Uganda Contracts Monitoring partners were interested in monitoring. As with other cases, the meeting went well and the ministry indicated that AFIC should monitor contracts on infrastructure and equipment. When we requested contract copies, officials said an MoU was needed. AFIC drafted a copy, sent to the Solicitor General (AG) for clearance. AG questioned CSOs’ mandate to monitor government contracts and advised that clearance by the Public Procurement and Disposal Authority would be required.

On September 11, 2015, PPDA wrote to the Ministry of Health and the Solicitor General confirming the MoU should be cleared by the Solicitor General for signature.

That was a great relief for the project team. However, receiving signed MoU from Health Ministry took longer than expected. After several telephone calls and emails, AFIC decided to visit the chambers of the Solicitor General (SG) to determine the clearance status.

We were shocked to learn that the Ministry of Health was seeking clearance to grant AFIC and UCMC $650,000 to monitor sector contracts.

The SG rejected the health ministry’s request on the grounds that a “wrong procurement method” was proposed.

Efforts to get a copy of the SG’s response to follow-up with Health Ministry were futile as the SG argued that the document was internal between them and Health Ministry. Informal discussion with an official at the Ministry of Health who served as our informal focal point revealed that colleagues in the ministry, especially the procurement unit, did not want us to monitor “their contracts.”

Meanwhile efforts to access district executed contracts were also not yielding any fruit. Nebbi District for example considered our request letter in their meeting and resolved that “there were enough government agencies to monitor public contracts”

This was more than a year into our GPSA funded project. We hadn’t accessed any contract and there was no prospect. A solution had to be found urgently.

We were shocked to learn that the Ministry of

Health was seeking clearance to grant AFIC and

UCMC $650,000 to monitor sector contracts.

The SG rejected the health ministry's request on

the grounds that a "wrong procurement method"

was proposed.

Efforts to get a copy of the SG's response to

follow-up with Health Ministry were futile as the

SG argued that the document was internal

between them and Health Ministry. Informal

discussion with an ofÞcial at the Ministry of

Health who served as our informal focal

point revealed that colleagues in the ministry,

especially the procurement unit, did not want us

to monitor "their contracts."

Meanwhile efforts to access district executed

contracts were also not yielding any fruit. Nebbi

District for example considered our request letter

in their meeting and resolved that “there were

enough government agencies to monitor public

contracts”

This was more than a year into our GPSA funded

project. We hadn’t accessed any contract and

there was no prospect. A solution had to be

found urgently.

GRANT FROM GPSA

Regarding the Ministry of Health, the World Bank

helped connect AFIC to ofÞcials running the

project that AFIC and its Uganda Contracts

Monitoring partners were interested in monitoring.

As with other cases, the meeting went well and

the ministry indicated that AFIC should monitor

contracts on infrastructure and equipment. When

we requested contract copies, ofÞcials said an

MoU was needed. AFIC drafted a copy, sent to

the Solicitor General (AG) for clearance. AG

quest ioned CSOs’ mandate to moni tor

government contracts and advised that clearance

by the Public Procurement and Disposal

Authority would be required.

On September 11, 2015, PPDA wrote to the

Ministry of Health and the Solicitor General

conÞrming the MoU should be cleared by the

Solicitor General for signature.

That was a great relief for the project team.

However, receiving signed MoU from Health

Ministry took longer than expected. After several

telephone calls and emails, AFIC decided to visit

the chambers of the Solicitor General (SG) to

determine the clearance status.

Contracts Awarded

0 325 650 975 1300

Uganda Wildlife Authority Uganda National Roads AuthorityUganda Revenue Authority Uganda National Medical StoresUganda Electricity Transmission Company

Top contract awards by procurement entity for the FY2017 - 2018


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DATA ON THE GOVERNMENT PROCUREMENT PORTAL NOT USABLE

In 2015, Uganda's government launched the Government Procurement Portal (GPP) with World Bank support. Having failed to access contracts from agencies, we decided to carry out a mini data mapping based on Open Contracting Data Standards (OCDS).

FINDINGS FROM OCDS MAPPING

The mapping revealed four issues:

1. None of the target districts published contract data on the portal

2. No unique identifier that made it impossible to easily identify duplicate records

3. Disclosure did not cover the entire contracting cycle 4. Data was not linked, making it impossible to confirm,

for example, that the items listed in the procurement plan are the exact items tendered or awarded.

We sought a meeting with the PPDA management to present our findings. In a very short time, PPDA granted the meeting. AFIC presented recommendations of draft results.

PPDA welcomed the results and requested a full OCDS - based portal mapping.

With this opening, AFIC’s technical team, assisted by the Open Contracting Help Desk and the Public and Private Development Center, conducted a full mapping and within weeks provided PPDA with a full recommendation report. We also used the opportunity to list 23 districts and entities where UCMC was interested in monitoring contracts. PPDA agreed to register these agencies, but also offered access contracts to help AFIC. 29 contracts were secured and to track contract planning and execution on the ground. With our recommendations coming in the middle of the financial year, PPDA couldn’t allocate resources to hire consultants to implement our recommendations to align GPP with OCDS. We offered collaboration and technical

assistance to ensure the portal was fully OCDS aligned. This was achieved successfully with financial support from Twaweza, enabling AFIC, but also causing more trouble.

The original portal design was intended for use by procuring entities to publish tenders and prospective bidders to obtain necessary information. When more agencies were registered and modified to allow open contracting, the portal couldn’t hold large volumes of data. System breakdowns and failures were very regular, hampering not only agencies ‘ ability to upload new data, but also stakeholders like AFIC’s use.

The Democratic Governance Facility (DGF) was approached by AFIC and PPDA to provide financial assistance to redesign the portal, based on new and better technology. DGF responded positively. However, we did not get external consultants to work within the budget available.


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Disclosure is one thing and data use is another.

As was the case with the GPP before OCDS

alignment, data was published, but the way it

was done was not adequately empowering data

use. In 2016, AFIC asked PPDA if they received

any feedback on disclosed data to which PPDA

responded that AFIC was the Þrst to do so.

With Hewlett Foundation support, AFIC and its

members in Kenya, Ghana, Nigeria and Malawi

are implementing a programme to promote the

use of disclosed procurement data. In Uganda,

AFIC held multi-stakeholder workshops involving

279 people— procurement agencies, journalists,

CSOs, and private sector. Each group was asked

to state their ofÞcial role / interest in public

procurement, and what data and indicators they

need for that purpose. Additional DGF-supported

consultation meetings were held.

DISCLOSURE FOR USE

Planning

Tender

Award

1 10 100

Mityana Mubende NebbiNakaseke Ntungamo

Performance by entity at different stages of procurement

Disclosure is one thing and data use is another. As was the case with the GPP before OCDS alignment, data was published, but the way it was done was not adequately empowering data use. In 2016, AFIC asked PPDA if they received any feedback on disclosed data to which PPDA responded that AFIC was the first to do so. With Hewlett Foundation support, AFIC and its members in Kenya, Ghana, Nigeria and Malawi are implementing a programme to promote the use of disclosed procurement data. In Uganda, AFIC held multi-stakeholder workshops involving 279 people— procurement agencies, journalists, CSOs, and private sector. Each group was asked to state their official role / interest in public procurement, and what data and indicators they need for that purpose. Additional DGF-supported consultation meetings were held.

Performance by entity at different stages of procurement

Public servants prioritised “Early warning on contract implementation” and “Improving value for money”. For each of these uses, indicators were identified as highlighted below:

Indicators relevant to the use cases: Early warning on contract implementation

• Contract price with activity schedule (including price variation during the contract life time linked with activity variations)

• Disbursement schedule with activity schedule• Actual disbursement progress with actual

progress on activity • Contract price with bill of quantities • Management contract (name and contact of

the contract manager)• Citizens feedbacks and complaints

Indicators relevant to the use cases: Improving value for money

• Bid prices drop when a new or infrequent competitor enters

• Per item value is higher or lower than average for this item

• Splitting purchases to avoid procurement thresholds

• Unreasonably narrow contract specifications that favour the winning bidder and exclude othersProactive disclosure performance

• Competitive award issued despite a non-competitive process

• Complaints from prospective bidders regarding competition irregularities

• Complaints of changes to bids after they are received

• Total payments to a contractor exceed total contract or purchase order amounts


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AFIC has worked with PPDA to ensure that GPP disclosure responds to the above needs.

Using Disclosed Data

Like other stakeholders, AFIC relies on data to inform contract monitoring and advocacy. We have developed some indicators to inform our data analysis.

Competition • Percentage of new bidders to old bidders

• Percentage of contractors bene-fitting from reservation scheme

Inclusiveness • Percentage of bidders who have benefitted from beneficial preference scheme

Time overruns • Percentage of days that are overrun

• Percentage of contracts with time overruns

Cost overruns • Percentage of contracts which have cost overruns

• Average time it takes to complete

Fraud • Percentage of contract awards to non existent providers

• Percentage of contract awards to suspended providers

Collusion • Percentage of contracts under administrative review

• Percentage of Tenders with num-ber of bids lower than 3

Through our data analysis, we were able to turn disclosed data into compelling information to improve our knowledge and understanding of Uganda's public procurement system. From our previous monitoring reports, we learned that disclosure was weak, many contracts were not planned or approved, questionable / false procurement methods were used while competition was low. With better disclosure through redesigned GPP, we will increase data use and involvement of key stakeholders' inclusive procurement entities, oversight mechanisms, business, media and civil society organizations. Below are some of the emerging findings from selected indicator on the work underway.

Thematic area Indicator

DISCLOSURE FOR USE

0

225

450

675

900

0

500,000,000,000

1,000,000,000,000

1,500,000,000,000

2,000,000,000,000

Uganda National Roads Authority National Medical Stores Uganda Revenue Authority

Contract Value Number of Contracts

Top 5 High Spending Agencies Financial Year 2017-2018

52%

5%

40%

2%

Consultancy Services Goods WorksServices

Direct

Open

Selective

Limited

0 4000 8000 12000 16000

2015-2015 2016-2017 2017-2018

Awarded Contracts By Procurement

Published Tenders By Type FY 2015-2016


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DISCLOSURE FOR USE

0

225

450

675

900

0

500,000,000,000

1,000,000,000,000

1,500,000,000,000

2,000,000,000,000




52%

5%

40%

2%


Direct

Open

Selective

Limited

0 4000 8000 12000 16000

2015-2015 2016-2017 2017-2018



DISCLOSURE FOR USE

0

225

450

675

900

0

500,000,000,000

1,000,000,000,000

1,500,000,000,000

2,000,000,000,000




52%

5%

40%

2%


Direct

Open

Selective

Limited

0 4000 8000 12000 16000

2015-2015 2016-2017 2017-2018



1. Disappointment inspires Innovation AFIC targeted to access and monitor sixty (60) contracts under the enhancing value for money in social service contracts. Our first contract monitoring report was based on 29 contracts and 39 for the second monitoring report. Failure to access information through access to information requests led to advocacy for registration of additional agencies and increase in publication of contracts in the OCDS format on the GPP, making it possible to use and reuse data on thousands of additional contracts published. Had AFIC had easy access of the targeted 60 contracts, it’s debatable whether advocacy for OCDS alignment and registration of additional procuring entities on GPP would have been its priority.

2. Compelling Information is Convincing

AFIC’s social accountability programme aims to help governments in Africa to become better by providing the necessary feedback to help them solve problems that affect service delivery.

Yet at the beginning of engagements, nearly all entities receive us with suspicion and mistrust. We do this through promoting disclosure, use of disclosed data to turn it into compelling information with clear messages.

In Ugandan district of Nebbi for example, our finding was that contracts price for similar specifications varied significantly on the basis of which budget line was being charged, 4 out of every 5 contracts were neither planned nor approved, 95% of contracts were being awarded through selective bidding while records showed that two unrelated companies had similar physical addresses, telephone

Entity Recommendations made

Implemented Rate

Ministry of Finance 4 1 25%PPDA 7 5 71%MOE 5 2 40%Mityana 4 3 75%Mubende 4 3 75%Nebbi 7 4 57%

In conclusion

The open contracting journey was a long, difficult start. Looking back, AFIC is satisfied that making procurement data accessible in usable and reusable for-mats was a worthwhile effort. Our new frontier will promote the use of disclosed data to provide feedback to government, businesses, and citizens.

We thank PPDA, Ministry of Finance, Planning and Economic Development. We also appreciate our funding and technical partners including World Bank, Global Social Accountability Partnership, Hewlett Foundation, Open Contract-ing Partnership, Oxfam, IDRC, CoST, Democratic Governance Facility and Twaweza.

We recognize our CSO partners ' great contribution to the Uganda Contract Monitoring Coalition

contacts and structure of writing was the same, authorities were convinced that civil society can play a complimentary role to official government oversight mechanisms.

3. Constructive Engagement Build Trust and Delivers results

Monitoring of contracts by AFIC and UCMC revealed categories of issues such as poor planning of contracts, bad practices with tending and selection of contractors, questionable procurement methods, poor execution of contracts, possible collusion and out right fraud and falsification of records. In all the cases, constructive engagement was used to communicate findings and recommendations with a focus of obtaining commitments to address problems rather than blaming and accusing agencies for failures. In a number of cases, cocreation of solutions such as training and capacity building was jointly done by respective agencies and AFIC. With this approach, implementation of AFIC recommendations was reasonably good in the short time frame as presented in the table below.



Tel: +256 414 533554Fax: +256 414 533554Email: [email protected]: www.africafoicentre.org

Africa Freedom of Information Centre

Plot436/431 Mawanda Road, Suite A4, Corner House, P.O Box 35643, Kampala, Uganda

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OPEN CONTRACTING JOURNEY IN UGANDA · 2019-04-17 · Open Contracting Journey In Uganda Page | 3 THE POWER TO SOLVE PROBLEMS BEGINS WITH THE PEOPLE In principle, open data should