Management of the Bulk Oil Storage and Transportation Company Limited (BOST) has disclosed that companies cited in the 2021 Auditors-general report to have engaged in infractions to win contracts at their outfit have been sanctioned.
Managing Director of BOST, Edwin Provencal, said such companies have been blacklisted.
In an interview with JoyNews where he disclosed this, he also mentioned that BOST officials who facilitated the award of a contract for a street light project worth GH¢178,252.52, are undergoing sanctions.
“It’s up to management to use its internal processes to cure the infraction and also, where there are lapses, to discipline those who are culpable; that process is ongoing and when it ends, it shall call you back and tell you what’s happening to those people.”
“…that’s why I raised my hand; I take full responsibility and there are people who work on these things. There are general managers, there are managers, there are officers, and we know them and they are going through the process, so they will be dealt with,” he said.
These comments follow revelations in the 2021 Auditor-General’s report on Ministries, Departments, and Agencies of the Government of Ghana, which uncovered massive irregularities at BOST.
“We noted that three (3) Companies, Unity Enginmac Co. Precious Engineering and Dass-B Electricals bided for the award of contract for the installation of LED bulbs and streetlights for BOST of which Enginmac Co was recommended by the evaluation team for the award of the contract to the tune of GH¢178,252.52,” the report said.
The contract was eventually awarded to Enginmac Co. Ltd at a cost of almost Gh¢200,000 which the Auditor General found suspicious.
“We noted further that Unity Enginmac Co. Ltd and the two other alternative bidders namely Precious Engineering and Dass-B Electricals who participated in the procurement were all owned by one person,” the report added.
The Auditor-General, thus, recommended that the contractor be invited to explain the ownership of the companies and tender documents submitted and admonish the evaluation team to do proper due diligence in the selection process “as this lapse was identified in the previous year’s audit and cautioned.”
Speaking about potential criminal charges in the interview with JoyNews, the managing director stated that there would be none since money was lost and the service was delivered.
“The service was delivered and signed off. It’s just that the process leading to the selection was flawed, but no money has been lost.”
Other findings about BOST in the Auditor-General’s report
Additionally, the report stated that BOST continues to pay three contractors for breach of contract and unreasonable delays in the payment of lawful contract payments in the amount of $9.1 million in cost and interest, or slightly more than $3 million.
The report, therefore, recommended that management apply appropriate sanctions on all officers whose negligence had caused the loss.
“Additionally, we urged Management to heed to all contract terms and indulge in negotiations rather than lawsuit in resolving disagreements”.
Also, the report said “contrary to Public Financial Management Act/Regulations, we noted that, BOST did not obtain VAT invoices/ receipts for payments totalling GH¢726,376.33 with a VAT component of ¢127,115.86 made to suppliers and service providers for the period under review.
“We requested management to obtain the requisite VAT invoices/ receipts covering the payments totalling GH¢726,376.33 by March 31, 2022, failing which the VAT component of GH¢127,115.86 should be recovered from the authorising and approving officials and paid same to the Commissioner General, Ghana Revenue Authority and submit the evidence for verification.”
Source: The Independent Ghana|