Ghana Cedi
The cases of financial malfeasance in public procurement have been attributed to the delay on the part of government to pay contractors.
There have been many cases in recent times where the cost of some government projects have been bloated, causing the country to lose a lot of revenue.
Some of these projects include the controversial Ameri power deal, and the construction of the Atuabo Gas Power plant, which was bloated in excess of 15 million Ghana cedis.
Vice president of the Ghana Institute of Procurement and Supply, Simon Annan, says if the country wants to get value for money, then it should expedite payment of projects.
According to him, protraction in the payments leads to the addition of other costs which result in bloated cost.
“If I know I am doing a project and I will be paid in 5 years, then I will add more, that is why we end up paying more. Most of these contractors work with loans, and so if their pay delays, they end up being in trouble. So they will rather look for other sources, add that cost to government and pay. That is why we pay more”, he explained. According to him, “if we really want to get the best price, then we must begin paying early, to prevent extra costs”.
On his part, president of the institute Collins Sarpong said the country should insist on value for money in every transaction, and ensure that we go in for services that will save the country some money.
