The Auditor-General's recent report has exposed significant procurement breaches amounting to over $145 million in the Electricity Company of Ghana (ECG).
The breaches occurred between 2016 and 2021 and were related to the signing of 50 contracts for the procurement of 862,750 meters and their accessories.
The breaches were attributed to ECG's failure to adhere to the Public Procurement Act, resulting in a lack of consideration for value for money, competitiveness, and transparency in the procurement process.
The audit report, released on July 27, 2023, highlighted ECG's non-compliance with the Public Procurement (Amendment) Act 2016, which mandates the use of international competitive tendering for procurement when the estimated cost of goods exceeds GH¢10 million.
Despite the contract sums of the sampled contracts surpassing the threshold, ECG did not properly follow the international competitive tendering procedures, resorting to restrictive tendering without approval from the Public Procurement Authority (PPA) Board.
ECG's rationale for not adhering to the PPA requirements was based on its status as a limited liability company not dependent on government funding. However, the company's requests for exemption from adherence to the Public Procurement Act were not granted.
The report also revealed that ECG had not approved its procurement manual at the time of the audit, indicating a lack of established procurement practices.
Additionally, ECG failed to terminate a contract with a manufacturer involved in the procurement process, despite the manufacturer's failure to deliver the contracted goods.
