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DISPOSAL OF PUBLIC ASSETS

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Re: DISPOSAL OF PUBLIC ASSETS

Post  RJM on Mon Jan 25, 2010 9:37 pm

Freddy, Does the experience presented in the previous submission only "Government"? I hope the volunteers will tell us whether the Agency, Parastatal and Independent Department are using different procedures or not. This is because when I read the Public Finance Act No.6 of 2001 and Principal Legislation Revised Edition of 2004 as well as PPA, Cap 410 i I do not see excluding Agency, Parastatal and Independent Departments. If this is the case, then it will be interesting.

According to Section 2 of the Public Finance Act, the Act binds the Government of the United Republic. Furthermore, Section 3 of the Act states that " This Act shall apply to the business and operations conducted by the Treasury and under the supervision and authority of the operations of the Accountant General and of the Controller and Auditor General" while PPA applies to all public bodies using public funds. Do these scopes excluding the institution you are referring to? Let us put this matter in the right perspective.

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DISPOSAL OF PUBLIC ASSETS

Post  freddy.mbeyella on Mon Jan 25, 2010 8:41 pm

Thank you for sharing your experience from the Government perspective. How about from Agency, Parastatal and Independent Department any volunteer?

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Re: DISPOSAL OF PUBLIC ASSETS

Post  RJM on Tue Dec 22, 2009 10:46 pm

This is just to add value from what GadielCM has posted.

The procedures for disposing public assets are outline is the Public Finance Act No.6 of 2001 [Principal Legislation Revised Edition, 2004]. Regulation 257(1) of the Public Regulation states that “Stores, vehicles, plant, equipment or such items which although serviceable are no longer required by the Government, if they are sold, must be disposed of by the public or by tender public advertisement, unless the specific approval of the Permanent Secretary has been obtained for them to be sold by other means”. The PPA, Cap 410 is applicable only when it comes to dispose of public assets by tender and that’s why Regulation 40(2)/97/2005 it takes you back to the Finance Act for PE to get approval of the Permanent Secretary to the Treasury. Regulation referred states that “Any disposal by tender by a PE must be authorized by the Permanent Secretary to the Treasury”.

Moreover, Regulation 253 of the Public Finance Regulations states that “Except for minor items, the authority of the Permanent Secretary is required for the writing-off ledger charge and disposal of all unserviceable or obsolete stores, vehicles, plant and equipment”. I think the main problem here is the definition of the minor items or the value of the minor items that’s why most of the PE they do not know what to do when come to disposing assets. I think there is a need for the responsible authority to issue guidelines on this.

For the purpose of putting in the right perspective what GadielCM has posted, Regulation 254 (1) of the Public Finance Regulations [Condemnation of Unserviceable Store etc.] states that “ Where it is considered that stores, vehicles, plant or equipment have reached the end of their useful life or are beyond economical repair or are unserviceable for any other reason or have become redundant through obsolescence they must be retained until a sufficient quantity has accumulated to merit the convening of a Board of Condemnation to inspection them”. This is another problem “must be retained until a sufficient quantity ….” The more you retained the more are rotten and at the end of the day the assets have no value. This is the area whereby the value of the assets to be retained should be considered in order to realize salvage value which ultimately will save public scarce resources. Furthermore, Regulation 254(2) of the Public Finance Regulation states that “List of the items should be prepared giving the details of articles and where appropriate their age and approximate value, four copies of the list being submitted by the Accounting Officer to the Accountant General with the request that a Board be appointed to inspect the stores and to make recommendations as to their condemnation and disposal.

The procedures of Appointment of Board Condemnation and how the Board will conduct the inspection are explained in the Regulation 255 and 256 of the Public Finance Regulation respectively.


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DISPOSAL OF PUBLIC ASSETS

Post  GadielCM on Tue Dec 22, 2009 3:50 pm

FERDDY,
In my best understanding of the disposal of public asset is as follows and accordance to what public procurement need.But it depends on nature of PE, that is Agency, Parastatal, LGA's, or Central Government, Idenependent Department, etc. The following are procedures for what I know;-

1.PE to identify the goods to be disposed and according the PE policy to dispose after how long

2. PE to seek the permission to the ministry concern informing that the PE need to dispose the certain items identified by PE itself.And we know all that the ministry concern for all public assets is the Ministry of Finance and Economic Affairs under its department of Public Asset Management/ Stock verifier office

3. The MOF always provide the standard form of what the PE suppose to fill all items, goods identified including, the condition of items, when acquired, price acquired and type and model of goods to be disposed.

4. After this form have been completed by PE, the PE return that form to MoF to Permanent Secretary to be seen by the Office of Accountant General to request the Accountant General to form the Board of Survey for the partcular assignment together with the form provided and completely filled.

5. The Board of Survey formed including the experts from the Public asset management/ office of stock verifier and other from the PE need to dispose. the aim of this board is to identify all items requested by PE and verifying the justification of disposing the items, quantifying as per requested and proposing the benchmark price as per depreciation value.


6. After that board and giving the value of items, its remains to the PE to select the method of disposing according to the limit of application and as indicated in the 2nd Schedule of GN 97. In other hand its where the process of tendering for disposal starts.

I think I have tried to enlighten you the process, may be other will add value from this.

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DISPOSAL OF PUBLIC ASSETS

Post  freddy.mbeyella on Mon Dec 21, 2009 5:56 pm

One of the functions of Procurement Management Unit in accordance with the Public Procurement Act 2004 is to plan the procurement and disposal by tender activities of PE. Second Schedule of Public Procurement (goods, works, non consultants’ services and disposal of public assets by tender) G.N. No. 97 has indicated methods of selection and limit of application for international and national competitive tendering only. Can any one enlighten me the procedure for disposal for assets falling below the stated limits?

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