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Business News of Monday, 14 August 2017


Bui Power Authority admits breach of law in over $1m vehicle purchase

The Bui Power Authority says it erred when it purchased 40 Ford Ranger Double Pick-ups at the cost of $1,345,000 in 2013, without the approval of a Tender Committee.

The power generator has admitted it breached the procurement law in its transaction.

Acting Bui Power Authority CEO, Fred Oware told Parliament’s Public Accounts Committee (PAC), the contract was awarded without the constitution of a tender committee.

He said it was after the deal that the Authority made the call for a tender board to be constituted.

The Authority has been cited in the 2015 Auditor General’s report for various financial irregularities.

In 2013, the power generator ordered 40 Ford vehicles from Mechanical Lloyd at a unit cost of $33,650.

An initial amount of $504,750 was paid on December 24, 2013 for 25 pick-ups. Subsequent payments were made but these were done without the approval of a tender committee.

Section 17 (1) of the Public Procurement Act, 2003 (Act 663) mandates state entities to establish their own Tender Committees to supervise their transactions.

But the purchase of the 40 Ford vehicles was done in breach of the law.
“I don’t think there will be any disagreement about [a breach of the law] to the extent that there wasn’t [a Tender Committee],” Mr Oware told the lawmakers.

He said subsequent to the formation of the Committee, all transactions made were done in accordance to the procurement law.

When asked about the state of the vehicles, Mr Oware said: “they are on the road working and we don’t have any problem with them.”