The Ministry of Rural Development and Local Government is aware of the media reports which allege that known criminals have been awarded contracts from various Municipal Corporations.
The Ministry views these allegations very seriously and intends to address them as a matter of urgency. To this end, the auditors of the Ministry of Rural Development and Local Government are scheduled to commence an investigation as a matter of urgency, at all corporations. In fact, the relevant Chief Executive Officers (CEOs) have already been contacted to provide support and cooperation to our Internal Audit Unit. A report is expected to be submitted to the Minister at the end of August.
Minister Kazim Hosein wishes to emphasize that there is an established tendering procedure for local government contracts. He noted, “Each Municipal Corporation is responsible for awarding contracts in their area. This includes advertising, the tendering process and ultimately the selection of a contractor and the award of contracts. The Ministry’s role is in the provision of financial and technical support to ensure that projects are completed within budget and schedule.”
Minister Hosein also highlighted that all Municipal Corporations are guided by the Central Tenders Board Act.
It should be noted that the CEOs of Municipal Corporations are the Accounting Officers and are empowered to award contracts with a limit of authority up to three hundred thousand dollars ($300,000.00) but must do so in accordance with principles of transparency and accountability in mind.
This allegation of improper conduct in exercising this statutory duty is worthy of furtherance and steps shall be taken to distill the issues alleged. The Ministry of Rural Development and Local Government is committed to operating in accordance with the government’s anti-corruption and transparency mandate.
The Minister also acknowledged that the present protocol presents challenges which the proposed Local Government Reform Bill seeks to address.