BUSINESS

BOST imported vessels without pipelines – Audit Report

The 2020 Auditor-General’s Report on the audit of statutory boards and corporations has revealed that the Management of BOST contracted America Tank and Vessel Inc. (AT&V) in July 2006 to supply storage tanks and pipelines and ship same to Ghana without the pipelines.

The 2020 Auditor-General’s Report on the audit of statutory boards and corporations has revealed that the Management of BOST contracted America Tank and Vessel Inc. (AT&V) in July 2006 to supply storage tanks and pipelines and ship same to Ghana without the pipelines.

According to the report, as of October 2020, a total sum of US$5,129,170.05 had been spent on the project. However, the storage tanks were supplied and installed leaving the Pipelines yet to be shipped to Ghana.

The report has therefore recommended that the Management justify the delays in bringing the pipeline to Ghana for installation and take immediate action to prevent further delays.

The report also noted that the Management approved the above payment of GH¢30,442,551.00 more than the amount budgeted for.

It stated that ‘’We noted that Management used Bulk Road Vehicles (BEVs) in conveying products from Akosombo to Buipe instead of making use of its Barges, which could have saved the company a total amount of GH¢393,253.24’’.

The report indicated that the Management was unable to collect debt amounting to GH¢446,845.00 owed by four Bulk Distribution Companies (BDCs), adding that ‘’We urged Management to ensure that all debts due the Company are promptly collected’’.

The report noted that the Management of BOST awarded a contract amounting to US$39,000,000.00 to Rolider Company in June 2015 for the construction of its Head office complex before approval by PPA for a Restricted Tendering in December 2015.

‘’We recommended to Management to provide the supporting documentation and various approval letters from the appropriate approving authorities and further follow the procedures as enshrined in Section 90 of Act 663 as amended’’ the report suggested.

It further stated that the BOST Management awarded a contract amounting to US$5,129,170.05 through the Restrictive Tendering method but did not seek approval from the Central Tender Review Committee (CTRC).

The report further noted that procurement activities totalling GH¢242,496.45 were not part of the approved and revised procurement plan of BOST.

The report, however, recommended to BOST Management to regularise the transactions by seeking retrospective approval from the Entity Tender Committee.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: DGN

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