Auditor General’s report: GNPC breached public procurement law

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    The 2020 Auditor General’s report has cited the management of Ghana National Petroleum Corporation (GNPC) for breaching the public procurement law.

    According to the report, GNPC signed and awarded five international business contracts between 2015 to 2018 without the necessary parliamentary approval.

    The report said that in contrast to Article 181(5) of the 1992 constitution, GNPC signed and awarded five international business contracts totalling US$34,165,235.15 and £464,963.13 to five foreign suppliers or contractors, using the single-source method in four of those transactions.

    According to the report, in one instance, GNPC used the restricted tendering method without seeking the necessary parliamentary approvals.

    The report therefore recommended that the management of GNPC be sanctioned, in accordance with Section 92 of the Public Procurement Act 2003 (Act 663) as amended, for breaching the public procurement law.

    Single-sourced

    According to the report, contrary to Section 42 (1b) of the Public Procurement Act 2003 (Act 663) as amended, GNPC used the Request For Quotation (RFQ) method in procuring goods with contract values that exceeded the threshold for RFQ.

    It urged management always to observe the tenets of the public procurement law and further called for sanctioning of those officials (the chief executive, head of finance and head of procurement) who sanctioned the transactions in accordance with Section 92 of Act 663 as amended.

    “GNPC in May 2015 procured desktop computers, laptop computers, geo-workstations, UPS and monitors for workstations from Perfect Business Systems through [a] single-source arrangement without obtaining the requisite approvals from the board of the Public Procurement Authority and that of the Ministerial Tender Review Board (MTRB),” the report said.

    It recommended the appropriate sanctions in accordance with Section 92 of the Public Procurement Act 2003 (Act 663) as amended to be meted to the management of GNPC for breach of the procurement law.

    According to the Auditor General, in disregard for Clauses 2 and 3 of Article 187 of the 1992 constitution as well as Section 33 (1) of the Audit Service Act 2000 (Act 584), its request to review some procurement-related records and documents was not met by the management of GNPC.

    “We advised management to retrieve the documents involved and forward them for our audit review. Failure of which, sanctions should be invoked against management in accordance with Section 98 of the PFM Act 2016 for financial indiscipline,” the Auditor General said.