The Cline municipality buys a sack of flour at extremely low prices

25kg of flour for the needs of the Cline municipality are sold at an extremely low price, only 0.040 cents and a kilogram of coffee per euro, through the tender this municipality has given.

The National Audit Office has recommended the Cline municipality seek clarification from the economic operator so that it does not fall prey to tender-profit frauds.

In the signed contract BAR996, the winning operator had offered abnormally low prices for two articles. The abnormally low prices were flour 25kg at a price of 0.40, and 1kg of coffee at a price of $1. The municipality had not requested additional clarifications regarding the prices offered”, the audience report said.

Cline has also been neglected to hold tender winners responsible for doing the jobs for which they have been contracted.
ZKA has found that an economic operator who has won tender from the municipality has delayed operations for 18 months and has not been fined for that.

There was delays in the implementation of works by the contractor, but the supervisory body or project manager had not reported the 18-month delays to the procurement official in order to enable criminal application for every day delayed under contract terms”, the audience report said.

Another tender given by this municipality was not fully completed with documentation from the winning economic operator.
This operator had not offered price testimony for goods or services purchased, despite the forecasting that the price of offering these items would be 5 to 15 percent above the purchase price.

The “in the contract for official Auto Services and Maintaining Awards for Change of Parts was set before 5-1.5% over the purchase price of the article with which OE was supplied. For the fee worth $1.13, we have not found the price evidence provided by OE”, the audience report says.

For all these findings, the KA has made high priority recommendations.