News:
August 15, 2017
Acting Chief Executive Officer (CEO) of Bui Power Authority, Fred Oware on Monday told the Public Account Committee (PAC) of Parliament that the over 1million dollars vehicle purchase contract was awarded without recourse to the constitution of a tender committee.
Bui Power Authority admitted before the committee that it made a mistake when it purchased 40 Ford Ranger Double Pick-ups at the cost of $ 1,345,000 in 2013, without the approval of a Tender Committee.
The power generating authority accepted it breached the procurement law in its transaction. According to the acting CEO, it was after the deal that the Authority put in place measures for the tender board to be constituted.
In addition the power generating Authority was cited in the 2015 Auditor General’s report for various financial irregularities.
40 Ford vehicles from Mechanical Lloyd were purchased at a unit cost of $ 33,650 by Bui Power Authority in 2013.
An initial amount of $504,750 was paid on December 24, 2013 for 25 pick-ups. Subsequent payments were made but these were done without the approval of a tender committee.
Section 17 (1) of the Public Procurement Act, 2003 (Act 663) mandates state entities to establish their own Tender Committees to supervise their transactions.
But the purchase of the 40 Ford vehicles was done in breach of the law.
“I don’t think there will be any disagreement about a breach of the law to the extent that there wasn’t a Tender Committee” Mr. Fred Oware told the legislators.
He said subsequent to the formation of the Committee, all transactions made were done in accordance to the procurement law.
When asked about the state of the vehicles, Mr. Fred Oware said: “they are on the road working and we don’t have any problem with them.”
By: Kwaku Sakyi-Danso/ghanamps.com