The Auditor General has identified a number of shortcomings in procurement procedures operated by the Foundation for Tomorrow’s Schools.

A report presented to the Speaker identified instances of significantly higher estimates compared to the tender bids received, considerable changes in the scope of planned works, substantial extras and variations, and notable delays in the completion of works.

During 2012 and 2013, the foundation awarded 140 contracts, with a value of €9.6 million. The review focused on a sample of 22 projects worth a total of €1.4 million.

Of particular interest to the auditors were estimates that were significantly higher than all compliant bids received, which they said was often indicative of the foundation’s poor awareness of market rates.

The implication was that the project had been poorly planned, making changes necessary during implementation

Another shortcoming related to the significant changes in project design, evidenced by the substantial changes with respect to the Bills of Quantities.

The implication was that the project had been poorly planned, making changes necessary during implementation, although not necessarily resulting in cost overruns, the report said.

Delays were experienced with respect to a considerable number of projects, some indicative of poor planning and project management by the foundation.

On the other hand, delays caused by contractors were never followed up by the imposition of delay charges and penalties as contemplated in the contracts.

The Auditor General recommended that direct contracts should be restricted to instances of genuine urgency and unforeseen circumstances and not serve as a safety net for poor planning and ineffective management.

While certain of the direct contracts reviewed satisfied these criteria, others clearly did not, as contracted works could have been anticipated, appropriately planned for and undertaken through open procurement methods.

The report may be seen at www.nao.gov.mt.