Business News of Thursday, 12 August 2021
Non-compliance with proper procurement procedures by public institutions in Ghana accounted for over GH¢846 million in 2020, a situation the Auditor-General’s report recommends strict compliance with the provisions of the Public Procurement Act 2003, (Act 663).
Out of the GH¢846,134,269, the report revealed the worth of procurement irregularities, approximately 27% of the total came from contracts awarded by the management of Bulk Oil Storage and Transportation Company Limited (BOST) without following due process.
The report observed that the irregularities occurred because the management of the institutions did not follow the required processes.
“These irregularities occurred as a result of Managements’ non-compliance with the provisions of the Public Procurement Act 2003, (Act 663). Out of the total irregularities, US$39,000,000.00 (GH¢224,647,800) represented the award of contract without following due processes by Management of Bulk Oil Storage and Transportation Company Limited (BOST).
”I once again recommended that Managements of the various Institutions should undertake procurement transactions strictly in accordance with the provisions of the Public Procurement Act as amended”, parts of the report reads.
Meanwhile, the Social Security and National Insurance Trust (SSNIT) has also been found to have registered a total loss of $11.79 million from the liquidations of three of its investments with a total cash outlay of $14.768 million.
The Auditor-General thus urged management to investigate the non-performance of the investments to ensure value for money.
“We urged Management to investigate the nonperformance of the investments for all to ensure value for money and ensure that officers whose action led to the loss are appropriately sanctioned for the loss. We further urged Management to ensure that effective feasibility studies are carried out before investing”, the said.