Ghana's Ministry of Youth and Sports awarded 55 single-sourced contracts worth over GHS2.7 billion without proper justification. The Auditor-General reported these findings concerning preparations for the 2023 All African Games.
These contracts involved substantial works, goods, and services, including building sports infrastructure, providing cleaning, catering, and accommodation. Other services included constructing access roads, athletes' transportation, anti-doping centers, and producing medals. These agreements were made under former Minister Mustapha Ussif's tenure.
This widespread reliance on single-sourcing raises serious questions about public procurement practices in Ghana. It adds to ongoing concerns about government expenditure and adherence to financial laws. Ghana's public spending has recently faced increased scrutiny amidst efforts to stabilize the economy and manage debt.
The Auditor-General's report states these contracts contravened Section 40 of the Public Procurement Act. This section mandates specific conditions for single-sourcing, such as exclusive rights, genuine urgency from unforeseeable circumstances, catastrophic events, or standardization needs. The report highlights a significant failure to meet these legal requirements.
Regulation 36 of the Public Procurement Regulations (L.I. 2466) also requires single-source applications to justify the choice of company and the reasonableness of cost estimates. The audit concluded that the Ministry failed to provide adequate supporting documentation for the 55 contracts. A significant portion of these, three main Engineering, Procurement, and Construction (EPC) contracts, totaled GHS2.34 billion. The remaining 52 contracts accounted for GHS363.79 million.
Further audit findings revealed that value-for-money assessments for the three large EPC contracts were conducted seven months after the Public Procurement Authority approved them. This contradicts established safeguards for single-source procurement methods. For instance, a GHS1.7 billion infrastructure facility at Borteyman Sports Complex was awarded to Contracta Construction UK Ltd. Other significant contracts included University of Ghana sporting infrastructure to Consar Ltd for over GHS409 million and refurbishment of Legon Hostel Facilities by Avangarde-Ecobuild Consortium.
This information will likely trigger further investigations and calls for accountability within the Ministry of Youth and Sports. Decision-makers and the public will watch closely for responses from the government regarding these audit findings. The revelations could pressure for stricter enforcement of procurement laws and greater transparency in future public projects, especially those involving large sums of money.