Government Directs MDAS to Implement New Procurement System To Curb Fraud

The Ministry of Finance, Planning and Economic Development has directed accounting officers across 100 state entities to spearhead the roll out of an upgraded electronic procurement system aimed at curbing financial fraud and streamlining public spending. The directive was issued during a change management session organized alongside the Public Procurement and Disposal of Public Assets Authority ahead of the nationwide deployment of the Enhanced Electronic Government Procurement System, known as eGP 2.0. Acting Accountant General Godfrey Ssemugooma told staekholders that the transition represents a fundamental shift in public financial management rather than a routine technology upgrade. “Electronic Government Procurement is not simply an ICT project. It is fundamentally about transforming the way Government conducts procurement. It strengthens accountability, improves efficiency, minimizes opportunities for abuse and ensures that every public shilling delivers maximum value for money,” Ssemugooma said. He noted that administrative leadership will determine the success of the system across government entities. “The success or failure of this project depends less on the software itself and far more on your leadership. Your staff will look to you for direction, suppliers will look to you for clarity, and we will look to you for results,” he said. The system expansion follows a three-year pilot phase across 36 government bodies. Developed by Ugandan software engineers, eGP 2.0 is deploying in phases, starting with supplier registration, procurement planning, initiation and tendering. Modules covering bid evaluation, contract awards and contract management are scheduled to go live by December. Ssemugooma said the portal creates a permanent electronic audit trail that prevents the post-submission alteration of bidding documents. “Once documents are submitted electronically, they remain exactly as they were submitted. There are no physical pages to replace, preserving the integrity of the procurement process,” he said. He added that real-time access to records will allow public institutions to automatically consolidate procurement plans and generate instant reports, enhancing fiscal oversight. The system is also designed to lower operational costs for upcountry vendors. “A supplier based in Soroti will no longer need to travel to Kampala simply to submit bidding documents. The entire procurement process can be conducted online, reducing costs while promoting fairness and transparency,” Ssemugooma said. Florence Nakyeyune, senior systems quality assurance officer at the finance ministry, said eGP 2.0 integrates directly with external government databases to verify vendor tax compliance with the Uganda Revenue Authority, social security contributions through the National Social Security Fund, and corporate filings. “eGP 2.0 integrates key Government systems and uses Artificial Intelligence, Blockchain technology and enhanced cybersecurity features to safeguard procurement processes while improving efficiency and compliance,” Nakyeyune said. She said automated workflows will shorten purchasing cycles, standardize procedures across state agencies and centralize audit records. Catherine Natukunda, Manager for Procurement and Disposal Capacity Building at the PPDA, told accounting officers that measures are in place to manage the transition from paper-based operations. “Change management is being handled. We’re in control of this. We have arranged for mass change management to ensure that we don’t have trouble transitioning from the manual operation to the electronic Government procurement operation. It is under control, and we know we shall handle it very well. The transition will be seamless,” Natukunda said. She said ongoing user support, institutional readiness assessments and advance stakeholder engagement will facilitate adoption.