Business

Auditor General’s report: Procurement irregularities at BOST amounted to about GHC225 million

The report observed that the irregularities occurred because the management of the institutions did not follow the required processes

The 2020 Auditor General’s report has revealed that out of the GHC846,134,269, resulting from procurement irregularities, GHC224,647,800 came from contracts awarded by the management of the Bulk Oil Storage and Transportation Company Limited (BOST) without following due process.

“These irregularities occurred as a result of managements’ non-compliance with the provisions of the Public Procurement Act 2003, (Act 663). Out of the total irregularities, US$39,000,000.00 (GHC224,647,800) represented the award of contract without following due processes by management of Bulk Oil Storage and Transportation Company Limited (BOST).

”I once again recommended that Managements of the various Institutions should undertake procurement transactions strictly in accordance with the provisions of the Public Procurement Act as amended”, the report stated.

According to the report, the management of BOST also approved the total payment of GHS30,442,551.00 in excess of the amount budgeted.

The report further disclosed that the management used Bulk Road Vehicles (BRVs) in conveying products from Akosombo to Buipe instead of making use of its Barges, which could have saved the company a total amount of GHC393,253.24.

Also, BOST was unable to collect debt amounting to GHC446,845.00 owed by four Bulk Distribution Companies (BDCs).

“We noted that procurement activities totalling GHC242,496.45 were not part of the approved and revised procurement plan of BOST. We recommended to Management to regularise the transactions by seeking retrospective approval from the Entity Tender Committee.

“Management paid twenty-four staff who were on secondment for more than a year a total amount of GHC6,611,240.97 contrary to the Collective Bargaining Agreement of BOST. We entreated Management to justify the payment. Also, affected officers should immediately be recalled or cease payment of their salaries,” the report said.

The report added, “We noted that Management paid an amount of GHC151,987.00 covering a period of 41 months. This payment was in respect of half salary paid to an interdicted staff. We recommended to Management to take steps in bringing the matter to a close to avoid additional cost to the company.”

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