The government was unable to deliver procurement services effectively.Obscure rules not based on fair competition and transparency rendering the system to abuseThe dispute settlement mechanisms relating to the award procedures as set out in the Manual were weak and unreliable for ensuring fairness and transparency.Records of procurement transaction in many cases were found to be inaccurate or incomplete or absent, which led to suspicions of dishonest dealings at the tender boardsThe systems had other institutional weaknesses that not only undermined its capacity for carrying out their mandates effectively but also led to a public perception that the public sector was not getting maximum value for money spent on procurementIn view of the above shortcomings it was found necessary to have a law to govern the procurement system in the public sector and to establish the necessary institutions to ensure that all procurement entities observe the provisions of the law for the purpose of attaining the objectives of an open tender system in the sector.
71.2.4Era of Public Procurement Reform (2001-2010)Consequently, the establishment of the Exchequer and Audit (Public Procurement) Regulations 2001 which created the Public Procurement Directorate (PPD) and the Public Procurement Complaints, Review and Appeals Board (PPCRAB).Enactment of the Exchequer and Audit Act, Cap 421 Laws of Kenya (2001)It marked the abolishment of the Central Tender Committees and the establishment of the Public Procurement Directorate and Public Procurement Appeals Board. Tender committees were to obtain their chairmen from the private sector, with parastatals also being subject to the regulations of the public procurement. According to Kuloba (2015), “each public procuring entity was to establish a procurement unit within it and all purchasing and disposal processes were to be managed by the same unit”.This legislation was found to have the following weaknesses that prompted for the need for a better legislation:1.Conflict of interest amongst the various players in the procurement process.2.There was no ceiling on how much the variation could be affected on a contract, hence there was uncontrolled contract variations.3.Overpricing of goods and services.4.Lack of fair and transparent competition. 5.Inappropriate use of procurement methods and an excessive delay in procurement due to lack of strict time schedules. The Public Procurement Directorate (PPD) and the Public Procurement Complaints, Review and Appeals Board (PPCRAB)., though largely independent in carrying out their activities, had been operating as departments in the Ministry of Finance on which they relied for staff, facilities and funding. Since these institutional arrangements have a potential for undermining the impartiality of these bodies in the long run it was found necessary to create an oversight body whose existence was based on a law. The Public Procurement and Disposal Act, 2005 was thus enacted and it
8became operational on 1st
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- Fall '16