(CMR) Contracts amounting to millions of dollars were awarded by public bodies without complying with the Procurement Act (2016), the Auditor General's report for 2022 has revealed.
The Procurement Regulations require an entity to submit to the Public Procurement Committee (PPC) for approval a written business case for procurement projects whose value is greater than $250k.
“It was disappointing to note many instances of non-compliance with the Procurement Act and Regulations by public bodies,” the report stated.
According to the report, the Ministry of Education (MOE) and the Port Authority of the Cayman Islands both awarded janitorial contracts for $330k each without obtaining the required Public Procurement Committee (PPC) approval.
The National Roads Authority awarded two contracts for $264k and $480k without the required PPC approval. In addition, the NRA purchased equipment for $672k, in excess of the $600k approved by the PPC.
The report also revealed that the Ministry of Financial Services and Commerce (MFSC) paid $2.6 million to a vendor for various computer services. The contract with this vendor was signed more than 12 years ago, and there is no evidence of subsequent tendering or PPC approval for this contract.
In addition, the Ministry of Financial Services and Commerce has paid US$180k per annum to another vendor for legal consultancy services since 2019. Since the inception of this contract in October 2019, about $491k has been paid to this vendor without approval from the PPC.
The Maritime Authority of the Cayman Islands (MACI) directly awarded contracts of $2.4 million to surveyors and independent contractors without PPC approval.
The Ministry of Home Affairs purchased various goods and services with a value greater than $250k without the required PPC approval. These include the communication tower for $930k, inmates’ meals for $739k, and maintenance of security cameras for $265k. In addition, motor vehicles worth $130k were purchased without following a competitive procurement process.
The Procurement Regulations require an entity to submit, for approval, a written business case for procurement projects whose value is greater than $100k. However, the Auditor General found that the Cabinet Office (CO) did not provide evidence that a procurement contract directly awarded to a vendor for $103k had been reviewed by the Entity Procurement Committee (EPC) and the Chief Officer.
The report also pointed out that the Ministry of Youth, Sports, Culture & Heritage (MYSCH) procured services without going through the required tendering process per the Procurement Act. The contracts noted were for Maintenance and Security services for $568k and $200k, respectively.
The Cayman National Cultural Foundation (CNCF) also awarded a contract for renovation works valued at $185k without the business case approval by the EPC and the Managing Director.
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