Coronavirus KIA testing: PPA approval was not needed - Transport Minister-designate

The Transport and Aviation Minister-Designate, Kwaku Ofori-Asiamah has explained that the Ghana Airports Company Limited, the operator of the country’s airports, did not need the approval of the Public Procurement Authority (PPA) before it engaged a company to undertake the covid-19 tests.

Mr. Ofori-Asiamah, appearing before the Appointments Committee of Parliament on Tuesday, said: “a precondition for an application of the PPA Act, and for that matter, obtaining PPA approval, is the use of public funds in the procurement of goods, works and services. GACL did not procure the services of Frontiers with public funds.

The company offered to provide laboratory services to the public with their own equipment. No public funds were expended in getting them to provide the services to the public, apart from the provision of office space. Thus, the basic condition for an application of the PPA Act did not exist.

In any case, GACL endeavoured to obtain PPA approval in respect of the contract for the rental of its space to the company. As stated already, the PPA indicated that the rental of office space falls outside the scope of the Procurement Act.”

The clarification comes on the back of the inability of several ministerial nominees’ inability to provide answers relating to the contractual agreement between the state and the company that is conducting the covid-19 test on passengers at the airport.

“Sometime in July/August, 2020, the President announced the Government’s inclination to reopen the borders of the nation to commercial air traffic, subject to the availability of an effective system for COVID-19 testing. Following this, Frontiers Healthcare Services Limited expressed the preparedness to provide such service to the public, whilst indicating that its equipment had been tested by the Food and Drugs Authority (FDA).

Three ministerial nominees who had so far appeared before the Appointments Committee have failed to give a satisfactory account on the procurement processes that led to the award of a contract to Frontiers Healthcare Service to conduct COVID-19 testing at the KIA at a fee of US$150 per head.

In the said rent agreement the GACL entered into with Frontiers Healthcare Services, the Transport Minister-designate revealed that the laboratory service provider was also required to make a payment of royalties of US$10 per test done to the GACL.