Construction of the Itabac Primary School in Region Eight remains incomplete with the site abandoned while overpayments amounting to $6.4 million were made for the construction of a nurses hostel in Mahdia which is still to be completed, according to the Auditor General’s report for the 2018 fiscal year.
In the report, Auditor General (AG) Deodat Sharma noted that the National Procurement and Tender Administration Board (NPTAB) had awarded a contract in the sum of $18.978 million for the construction of the school. As at 31 December 2018, the entire sum was paid to the contractor.
However, physical verification conducted on 16 July 2019 revealed that the works were incomplete and the site was abandoned. Further, based on the measurements and calculations of the completed works, an overpayment of $258,160 was found for additional plumbing works not done, the report said.
It noted too that the region had not presented for audit scrutiny the advance payment or performance bond. It was also discovered that the contractor was paid $100,000 for insurance but none of these documents were seen by the auditors. In addition, the sum of $50,000 was paid for testing of materials but the test results were not presented.
In its response, the region indicated that the sum overpaid will be recovered.
The Audit Office recommended that the regional administration locate the documents for the performance bond, insurance and testing of materials, recover the overpayments and ensure that completed works are accurately measured and quantified before payments are made to contractors for works completed.
Hostel
Meantime, the AG’s report noted that a $11.816 million contract was awarded for the construction of a nurses hostel in Mahdia. The contract was signed on 20 June 2018 with a duration of six months for completion. As at 31 December 2018, the entire sum was paid to the contractor.
Physical verification conducted on 17 July 2019, however, revealed that the works were still in progress and the contractor only had four workers onsite. Based on measurements and calculations of the completed works, overpayments amounting to $6.409 million were also discovered.
The report noted that no details regarding the tendering and award of this contract were presented for audit examination. Further, the defects liability period could not be determined from the documents examined.
It was highlighted that the contract duration expired since 2018 and the works are still incomplete. Approvals for extension of time or reasons for the delayed completion of works were not presented for audit examination. The report noted that the contractor was paid $50,000 for insurance but no insurance was presented. In addition, the sum of $50,000 was paid for the testing of materials but the results were not presented for verification.
In its response, the region said that the contractor has since restarted the works and the roof was completed.
The Audit Office recommended that the regional administration locate the documents for the insurance and testing of materials and ensure that completed works are accurately measured and quantified before payments are made to contractors.
Kato dormitory
The AG’s report also highlighted that the Regional Tender Board awarded a contract for the construction of a kitchen at the Kato dormitory via the sole sourcing method of procurement in the sum of $7.9 million. No justification was presented regarding the sole sourcing of this project. As at 31 December 2018, the entire sum was paid to the contractor. However, the signed contract agreement was not presented while the duration and the defects liability period for the works could not be determined from the documents examined. In addition, physical verification conducted on 14 July 2019 revealed that there was an overpayment of $276,000 for the supply and installation of a three-burner industrial gas cooker.
In its response, the region said that the Tender Board Minutes were deficient and did not record the other bidders. In addition, the industrial gas cooker is yet to be delivered.
The Audit Office recommended that the regional administration ensure all Tender Board Minutes are accurately recorded and complete, recover the overpayments and ensure that completed work are accurately measured and quantified before payments are made to contractors.
Meanwhile, the AG’s report noted that the Regional Tender Board awarded a contract for the construction of a road to Muruwa to the lowest of five bidders in the sum of $12.8 million. As at 31 December 2018, amounts totalling $14.615 million were paid to the contractor, a difference of $1.814 million between the contract sum and the total payments.
An examination of the documents presented for audit and IFMIS revealed the sum of $1.815 million was paid twice. The report said that there was no evidence indicating that this amount was refunded and this was a duplication of payment.
In its response, the region said that the cheque was incorrectly prepared for payments under Bridges, then correctly prepared for payment under Road. The region was unable to say whether the amount was refunded.
The Audit Office recommended that the regional administration ensures sums paid are in keeping with the contract, payments are properly monitored and processed to avoid duplication and the amount overpaid is recovered.
In relation to prior year matters, the AG said that the regional administration was still to recover overpayments totaling $18.302 million made on several maintenance contracts during the years 2015, 2016 and 2017.
The region indicated that no further action was taken on these overpayments and the Audit Office recommended that the regional administration pursue the recovery of the outstanding amounts.
In the same vein, the regional administration was yet to recover mobilisation advances totaling $12.620 million paid on contracts which were terminated due to failure to complete the works within the contractual period. The region’s response was that no further action was taken and the Audit Office recommended that the regional administration pursue the recovery of the outstanding amounts.
Additionally, the regional administration was still to recover overpayments totaling $2.848 million made on several contracts during the years 2016 and 2017. Again, no action was taken by the region to try to recover these sums and the Audit Office recommended that the regional administration pursue the recovery of the outstanding amounts.
