Government saves GHC 1.9bn from fighting procurement ‘fraud’

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Tue, 2 Apr 2019 Source: www.ghanaweb.com

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Chief Executive Officer of the Public Procurement Authority, Agyenim Boateng Adjei has announced that within the period April 2017 and December 2018, its outfit has saved the economy monies to the tune of GHC1.9 billion.

He stated that the PPA prioritises preventing waste and as such monies which were saved will be used to finance other areas of the country’s economy.

“Today, I am pleased to announce to you that the PPA as a result of the introduction of these initiatives has in the space of 21 months (Between April, 2017 to December 2018) made savings to the tune of 1.9 Billion Ghana Cedis to the Ghanaian economy which literally means that, this amount of money has been freed to finance other areas of the economy.”

According to the PPA CEO, Mr Adjei, in 2016, under the administration of the former president John Dramani Mahama, the Procurement Authority made zero savings, as compared to 2017 and 2018.

“In 2016, the total number of sole source amount to 622, and 597 were approved, 25 rejected. Restrictive tendering, a total of 592 received 587 approved, single 5 rejected. Total number of applications for 2016, 1,214, total number approved 1,184, rejected 30. In percentage terms 97.5 percent approved, and 2 percent rejected and savings for that period zero.” He said.

“In 2017, we had a total sole source application of 420, we approved 236, and rejected 184… Restrictive Tendering in 2017, we received application to the tune of 372, we approved 174, and rejected 198.

So total number of applications of sole source and restrictive tendering, was 792, for 2017, total number approved 410, and total number rejected 382. In percentage terms, we approved 51.7 percent, and rejected 48.2 percent.

In 2018, we received a total application of 511, we approved 409, and rejected 103. Restrictive tendering, we received 386, approved 261, and rejected 125. Total number of applications received for the year, 897 and approved quantity 670, 60 were rejected, 167 were queried. In percentage terms 74 percent approved, 6.4 percent rejected, 18.6 percent queried. For savings for 2018, the amount saved was GHC1,164,269,000.”

At a press conference Tuesday, the Procurement CEO, noted that the outfit lacks funding for programs and activities. As they are forced to depend on donor funds which comes with prescriptions.

He urged government and the finance Ministry to allocate some funds for the Procurement Authority as this will go a long way to help facilitate their work.

“All is not rosy at the PPA. As an Authority, we are faced with a myriad of challenges as far as our operations are concerned…The Authority has had to depend on donor funds to run most of our programmes within the dictates of the donors’ terms and pace.”

The Public Procurement Authority however indicated that sanctions will be meted out to entities who fail to publish on the PPA’s website notices of contracts awarded.

The PPA also hinted of the new template which has been provided for the entities to enter the required information to inform the general public of the outcomes of tenders.

“Each Procurement Entity is required to publish on PPA’s website notices of contracts awarded by it… The responsibility for the placement of the award notice lies with the Procurement Entity and is to be done promptly after the issuance of the Letter of Award… PPA, as per Act 663 as amended is NOT responsible for the placement of these notices.”

Source: www.ghanaweb.com