(2016-11) Audit of Procurement Procedures — Bureau of Monetization of Development Aid Programs (BMPAD), FY 2014-2015
Summary — This final report presents the audit of procurement procedures applied by Haiti's Bureau for Monetization of Development Aid Projects (BMPAD) for the 2014-2015 fiscal year. Conducted by Daniel Thirion International, the audit aimed to assess the regularity, transparency, and efficiency of public procurement processes and contract management. It identifies significant non-compliance with legal frameworks, internal control weaknesses, and delays in project execution.
Key Findings
- BMPAD's organizational structure and procurement procedures are largely non-compliant with legal frameworks, lacking a specialized public procurement commission (CSMP) and internal audit services.
- A high percentage of bids (75.5%) were rejected, with 83.7% of these rejections due to administrative non-conformities, indicating a lack of capacity among bidding companies.
- Procurement processes are inefficient, with an average of 193 days between bid opening and contract signing, and performance bonds are often not properly applied or documented.
- Construction projects, such as the Bocozelle Lycée, experienced significant delays due to late supervision, socio-political issues, material sourcing difficulties, and the devaluation of the Gourde.
- Contract management shows weaknesses, including informal agreements, lack of proper documentation for bank guarantees, and an overloaded BMPAD engineering team responsible for warranty inspections after supervision contracts end.
Full Description
This final audit report, commissioned by the Project Coordination Unit (UCP) of the Ministry of Economy and Finance, examines the public procurement and contract management procedures of the Bureau for Monetization of Development Aid Projects (BMPAD) for the 2014-2015 fiscal year. The audit, conducted by Daniel Thirion International with local firm FARUD, covered three main components: organizational structure evaluation, detailed review of procurement procedures, and contract management review including physical inspections. It highlights systemic issues such as non-compliance with legal frameworks, absence of internal audit and archiving systems, and inefficient procurement processes leading to significant delays and high rejection rates of bids due to administrative non-conformities.
The audit found that while open calls for tenders were generally rigorous, qualification criteria were often inadequate, leading to a high rejection rate (75.5% of bids, mostly for administrative reasons). Contract execution also suffered from delays due to late supervision, socio-political issues, material sourcing difficulties, and currency devaluation. The report recommends strengthening technical capacities, improving planning, establishing internal controls, and ensuring strict application of contractual conditions, including performance bonds.
Notes
Series: CNMP Rapport d'Audit, part of the same six-institution FY2014-2015 batch (see MENFP entry above). Marked 'Rapport Final', dated 'Novembre 2016' on the cover. Site 'Publié le' 2016-11-05.