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Watchdog to probe Lugumi scandal

Saturday May 07 2016
bunge TZ

Parliament in session in Dodoma. The parliamentary Public Accounts Committee was not given the contract document over the fingerprint machines for the Police. PHOTO | FILE

Tanzania’s procurement watchdog has launched an independent investigation into how a controversial tender for fingerprint machines for the country’s police was awarded.

The Public Procurement Regulatory Authority (PPRA) has said it is investigating the procurement pursuant to the provisions under Section 10(2) of the Public Procurement Act, after which a report will be submitted to the appropriate office for action. The PPRA reports to the Paymaster General at the Treasury.

In what has come to be known as the Lugumi scandal, the Tanzanian Police Force in 2011 contracted Lugumi Enterprises Ltd to install 108 fingerprint machines in police stations across the country at a price of Tsh37 billion ($17.3 million).

The contractor received Tsh34 billion ($15.8 million) of which only 18 units were installed, while only eight are functioning.

Alarmed by the Controller and Auditor General’s report, the Parliamentary Public Accounts Committee (PAC) demanded to see the contract document but the police did not make it available to the lawmakers, saying it should be in the hands of the Home Affairs Ministry.

At the height of the controversy, the recently appointed anti-corruption chief Valentino Mlowola said the Prevention and Combating of Corruption Bureau (PCCB) is quizzing several people on the scandal. No details have been made public so far.

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PPRA acting chief executive officer, Ayub Kasuwi said that the authority has instituted an independent investigation to determine how Lugumi Enterprises won the tender.

Sources within PPRA told The EastAfrican that the authority’s involvement in the tender process was limited to publishing in the government gazette the outcome of the tender, while Section 2 (2) of the Public Procurement Act of 2011 to Section 2 (4) instructs defence and national security organs to comply with this Act subject to Section 2, subsections (3) and (4).

The section says the defence and national security organs shall manage their procurement and disposal on the basis of a dual list, covering items subject to open and restricted procurement or disposal methods respectively. 

The law further says the method to be used must be agreed upon by PPRA and the government department or agency making the purchase.

Recently, the PAC announced from parliament in Dodoma that it would investigate circumstances surrounding the tendering process in the Lugumi deal, bringing the number of investigations to three after that by PCCB and PPRA.

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