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Poverty and Human Development Report 2009 - UNDP in Tanzania

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Public Procurement<br />

The government passed the Public Procurement Act 2004 as a measure to improve<br />

transparency <strong>and</strong> combat corruption <strong>in</strong> public procurement, <strong>and</strong> the Public Procurement<br />

Regulatory Authority (PPRA) was established to monitor the compliance of government<br />

entities under the Act. Data reported <strong>in</strong> PHDR 2007 showed a strong <strong>in</strong>crease <strong>in</strong> the<br />

percentage of procur<strong>in</strong>g entities comply<strong>in</strong>g with the Act from 10% <strong>in</strong> 2005 to nearly<br />

60% <strong>in</strong> 2006. This rapid improvement <strong>in</strong> part reflects that compliance systems were still<br />

be<strong>in</strong>g tested, <strong>and</strong> assessments were conducted <strong>in</strong> a relatively limited number of procur<strong>in</strong>g<br />

entities. Compliance systems have now been exp<strong>and</strong>ed to <strong>in</strong>clude a greater number of<br />

government entities. As a result, the overall percentage of procur<strong>in</strong>g entities comply<strong>in</strong>g<br />

with the Act decl<strong>in</strong>ed to 39% <strong>in</strong> 2006/07. However, data for 2007/08 show a resumption<br />

of the positive trend (now from a larger base) to 43%.<br />

Audits of Central <strong>and</strong> Local Government Offices<br />

Audit op<strong>in</strong>ions issued by the National Audit Office are an important <strong>in</strong>dicator of whether<br />

government offices are comply<strong>in</strong>g with f<strong>in</strong>ancial management regulations. The percentage of<br />

m<strong>in</strong>istries, departments <strong>and</strong> agencies (MDAs) of the central government which received a clean<br />

(unqualified) audit certificate72 rose from 34% <strong>in</strong> 2004/05 to 76% <strong>in</strong> 2006/07 but fell back to 71%<br />

<strong>in</strong> 2007/08.<br />

Results for LGAs from 1999 to 2007/08 are summarised <strong>in</strong> Figure 46. The percentage of LGAs<br />

with adverse audit op<strong>in</strong>ions 73 fell sharply from 45% <strong>in</strong> 1999 to zero <strong>in</strong> 2006/07 <strong>and</strong> 2007/09,<br />

while the proportion of LGAs with clean audit reports <strong>in</strong>creased from 9% <strong>in</strong> 1999 to 81% by<br />

2006/07. However, this percentage dropped to 54% <strong>in</strong> 2007/08, reportedly as a result of parallel<br />

<strong>in</strong>structions for the f<strong>in</strong>ancial statements.<br />

72 A ‘clean’ or ‘unqualified’ audit certificate <strong>in</strong>dicates compliance with regulations.<br />

73 ‘Adverse’ op<strong>in</strong>ions are the result of significant deficiencies <strong>in</strong> report<strong>in</strong>g, such that auditors are not able to<br />

verify transactions.<br />

CHAPTER 1 - CLUSTER III - GOAL 2<br />

115

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