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Contractor used three companies to bid for over GH¢178,000 BOST contract – Audit report

BOST 1 Bulk Oil Storage and Transportation Company Limited

Fri, 2 Sep 2022 Source: www.ghanaweb.com

It has been established by the Auditor-General that three companies with the same owner bid for the award of contract for the installation of LED bulbs and streetlights.

The contract was awarded by Bulk Oil Storage and Transportation Company Limited (BOST).

According to the 2021 Auditor-General report on Public Accounts of Ghana-Public Boards, Corporations and other statutory institutions, which has been addressed to the Speaker of Parliament, Alban Bagbin, the companies involved were: Unity Enginmac Co. Precious Engineering and Dass-B Electricals.

BOST, the report said, eventually awarded the contract to Enginmac Co. Ltd at a cost of GH¢178,252.52.

"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.

"We noted further that, Unity Enginmac Co. Ltd and the two other alternative tenderers namely Precious Engineering and Dass-B Electricals who participated in the procurement were all owned by one person.

"We 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 audit and cautioned," page 16 of the report read.

The Auditor-General noted that "BOST continues to pay avoidable judgment debts in the forms of cost and interest amounting to GH¢9,169,884.48 and US$3,057,096.00 to three contractors for breach of contract and undue delays in the payment of legitimate contract sums.

"We recommended that should Management apply appropriate sanctions on all officers whose negligence have occasioned the loss. Additionally, we urged Management to heed to all contract terms and indulge in negotiations rather than lawsuit in resolving disagreements."

Go to page 16 of the report for relevant portions.



PEN/SARA

Source: www.ghanaweb.com
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