GNPC Management engaged in procurement breaches worth $34 million - Auditor General

According to the report, the breaches were in the tune of $34 million.

The Auditor General disclosed that the GNPC signed foreign contracts without prior parliamentary approvals.

“Contrary to the above provisions, we noted from the sampled records reviewed that the Ghana National Petroleum Corporation (GNPC) signed and awarded five (5) international business contracts to five foreign suppliers or contractors using Single-Source method in four of those transactions and in one instance used the Restricted Tendering method without seeking for the necessary Parliamentary approvals. The five contracts totalled US$34,165,235.15, and £464,963.13”, the report said.

“This practice has the tendency of not allowing the intentions of the promulgators of the law (1992 Constitution) inure to the benefit of the State. It also denies the Law makers the opportunity to make inputs towards such transactions. Thus, the absence of above could plunge GNPC into paying for higher contract sums and possible judgment debts,” the report said.

The report also recommended sanctions for some management staff for the breaches.

It added: “We recommended that Management of GNPC should be sanctioned in accordance with Section 92 of the Public Procurement Act 2003, (Act 663) as amended for breaching the Public Procurement Law”.

Despite attempts by the Management of GNPC to explain the breaches, the Auditor General maintained its audit recommendation should still stand.

“Management explained that the products involved in the transactions in question were all proprietary products that needed to be procured from the Original Equipment Manufacturer (OEM). Further, Management stated that it sought and obtained PPA’s approval for those transactions and that the items involved were captured in the approved annual budget of the corporation which was approved by Parliament, as well as its approved procurement plans for the respective periods.