The award of the Kiang West Road Phase 2 contract, valued at D857,841,841.15, to Gai Enterprise without putting the project up for competitive bidding has drawn criticism from the 2023 Auditor General’s Report.
Six months prior, Gai Enterprise was awarded the Phase 1 contract for the 39-kilometer road project, which was priced at D349,759,040.00, according to the article.
The direct award of Phase 2 was justified on the basis of economies of scale, sustaining unit rates, compatibility, avoiding additional mobilization expenses, and the necessity for timely project execution, according to an analysis of the Gambia Public Procurement Authority’s (GPPA) “No Objection” decision.
To guarantee openness, value for money, and fair competition, auditors countered that the Phase 2 project should have been put out to open competitive bidding, considering its scale and importance.
According to the investigation, “Emergency may not have been a justified basis at the time of awarding the Phase 2 contract, as Phase 1 had barely begun.”
The audit also noted that the initial rationale for maintaining constant rates was undermined when unit rates were raised later on in response to an estimated 40% increase in global market pricing.
The study also stated that “as a result, the reasoning behind the direct award seems to have been substantially changed.”
According to the report, avoiding competitive bidding for a contract of this size puts the procedure at risk for possible bias, wasteful use of public funds, and noncompliance with GPPA standards.
In accordance with procurement regulations, auditors suggested that any upcoming contracts of considerable size and value be put out to open, competitive bidding.
The report came to the conclusion that since there was no management reaction, the problem would not be fixed until this management letter was finalized.
