In 2020, non-compliance with appropriate procurement processes by public institutions in Ghana cost over GH846 million, a circumstance for which the Auditor-General’s report advises strict adherence to the Public Procurement Act 2003’s requirements (Act 663).
The study showed that of the GH846,134,269 in procurement violations, roughly 27% originated from contracts granted without following proper procedure by the management of Bulk Oil Storage and Transportation Company Limited (BOST).
The study said that the anomalies arose as a result of the institutions’ administration failing to follow necessary procedures.
“These irregularities occurred as a result of Managements’ non-compliance with the provisions of the Public Procurement Act 2003, (Act 663). Among the overall anomalies, US$39,000,000.00 (GH224,647,800) reflected the award of a contract by Management of Bulk Oil Storage and Transportation Company Limited (BOST) without following proper procedures.
”I reiterate my recommendation that the management of the different Institutions conduct procurement transactions strictly in line with the requirements of the Public Procurement Act, as amended,” portions of the report stated.
Meanwhile, the Social Security and National Insurance Trust (SSNIT) was found to have incurred a total loss of $11.79 million as a result of the liquidation of three of its assets, totaling $14.768 million in cash outlays.
Thus, the Auditor-General advised management to examine investment underperformance in order to guarantee 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. Additionally, we encouraged Management to do thorough feasibility assessments prior to investing”, the statement said.
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