This follows a call by the Member of Parliament for Bawku Central, Mahama Ayariga on government to totally scrap sole-sourcing following the sentencing of a former GYEEDA boss, Abuga Pele and a businessman, Philip Assibit.

According to Ayariga, awarding all government contracts through competitive bidding processes will help check corruption which is usually associated with sole sourcing.

[contextly_sidebar id=”Z5PfKvng1DdIt5Dzl7166GwOqgqx1GIx”]But the President of GIPS, Collins Agyemang Sarpong, told Citi News the solution to curbing corruption within the procurement process is to tighten the approval process.

“One thing that we know is that procurement people need to have what we call ethical compass. If you are an officer and a request comes, you need to be able to dissect it. It’s like somebody waiting the whole year and in September, you come to me and say we are going to do single source because it is under certificate of emergency while it had been in your plan since January. Even when you look at the procurement plan, people will put in it single source in January but the item will be bought in September and it is in their procurement plan.”

“Why can’t you start doing the process so that by September you will get your items. What I’m driving at is that people who are in positions of authority should always trigger their ethical compass and not just approve things because they want to approve it to favour any businessman or because they’ve gone for something and they are approving. We think that people should be able to question some of these things. That is why there is an authority; go to PPA for them to access the request before they give you the approval or denial,” he added.

Abuga Pele, Assibit jailed 

Abuga Pele, the former National Coordinator of the Ghana Youth Employment and Entrepreneurial Agency (GYEEDA), was sentenced alongside the Chief Executive Officer of Goodwill International Group, Philip Assibit, to a combined jail-term of 18 years on various counts, including willfully causing financial loss to the state.

In the scandal that hit the now Youth Employment Agency (YEA), some companies including Zoomlion Ghana Limited, RLG, Asongtaba Cottage Industry Limited and Better Ghana Management Services Limited, among others were contracted to render services under various modules for the GYEEDA programme.

It subsequently emerged that monies were paid to these companies who were awarded the contracts through sole sourcing for no work done.

223 sole sourcing contracts were approved in 2017 

President Nana Akufo-Addo during the 2018 State of the Nation Address in Parliament disclosed that his government awarded 233 contracts on sole sourcing basis.

He added his government saved about GHc800 million in the process as compared to the NDC government.

“In 2016, the Public Procurement Authority had six hundred and twenty-two (622) Sole Source Requests. Five hundred and ninety seven (597) of that number, 98%, were approved, and there were 25 Rejections. There were five hundred and ninety-two (592) Requests made for Restricted Tenders, and five hundred and eighty seven (587) (99.15%) were approved, and there were five (5) Rejections. A grand total of zero savings was made.”

“In 2017, my first year in office, three hundred and ninety four (394) Sole Sourcing Requests were made, out of which two hundred and twenty three (223) (56.6%) were approved, and one hundred and seventy one (171) (43.4%) rejected. There were three hundred and forty six (346) Requests for Restricted Tenders, out of which one hundred and sixty seven (167) (48%) were approved, and one hundred and seventy nine (179) (52%) rejected. Now here is the interesting part. The savings, made over the year as a result, amounted to some GH¢800 million,” he added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post GIPS advocates strict approval process in sole-sourcing appeared first on Citi 97.3 FM - Relevant Radio. Always.

The figure dropped from 622 requests in 2016 to 394 requests in 2017. This means there was a 228 drop in the number of sole sourced contracts applied for within the one year period.

President Akufo Addo disclosed this during his encounter with journalists at the Flagstaff House on Wednesday, January 17, 2018.

In his view, this is an indication of his government’s commitment to sanitize the Public Procurement system and give value for money.

Of the number applied for, 577 representing 98% were approved with 29 of them rejected.

In 2017, government approved 223 or 56.6% out of the 394 sole sourcing requests presented to it.

On the other hand, 171 of the requests representing 43.6% were rejected.

Restricted contracts drop by 42%

Meanwhile in 2016, the erstwhile NDC government approved 587 or 99.15% of all restricted tenders that were requested for.

This translated into zero savings on the requests put forward.

In 2017 however, restricted tenders also declined by 246 or 41.5%. The figure went down to 346 from 592 requests.

The President also indicated that, the decision by the NPP administration has led to government saving 145 million cedis, 142 million dollars, €1.8m and £23,400.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Sole sourcing contracts reduced by 37% in 2017 appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Chief Executive of the PPA, Agyenim Boateng Adjei told Citi News in an interview that his outfit is awaiting the report by PricewaterhouseCoopers (PWC) before commencing the investigations.

According to him, the report will serve as a guide in ascertaining the procurement processes that led to the company pumping millions of dollars into the project.

[contextly_sidebar id=”H6KvfZVYm8k6ck2kcUvmsAoRfgr6db0F”]SSNIT is currently being investigated by the Economic and Organized Crime Office (EOCO) for blowing $72 million on procuring and installing a software and other hardware systems known as the Operational Business Suite (OBS) in a bid to digitize the Trust.

The cost, which was originally $34 million, later ballooned to $66 million and then to $72 million due to maintenance and additional infrastructure.

The Board Chairman of SSNIT, Kwame Addo Kufuor in an earlier interview with Citi News said about 15 people had already appeared before EOCO as witnesses in the matter.

SSNIT shares dip in UMB

In another development, it has emerged that SSNIT’s 80% shares in then Merchant Bank [Now UMB] had reduced to less than 5%.

It is recalled that following debt troubles in 2013, Merchant bank was acquired by Fortiz, a Private Equity Fund.

Fortiz paid GH¢90 million for a majority stake in the bank with the understanding that an additional injection of GHS 50 million would be injected within a six month period.

The amount gave them a controlling stake of 90 per cent in the bank, leaving the Minority 10 per cent to the country’s pensions fund manager, SSNIT and SIC Life Limited.

But after an initial payment of GHS 10 million to UMB as equity capital by Fortiz, it entered into an unsecured, subordinated debt instrument facility, referred to as a convertible loan with the bank, through which an additional GHC 40 was invested into UMB.

Soon after it was concluded, the loan was converted into equity, in accordance with the Term sheet as approved by the AGM.

This led to SSNIT shares reducing from 8.96 to 4.43% of the company, valued at GHS 2,565, 537, while that of SIC life reduced from 1.04% to 0.51%, valued at GHS 297, 780.

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By: Fred Djabanor/citifmonline.com/Ghana

The post PPA to probe SSNIT over $72m software deal appeared first on Citi 97.3 FM - Relevant Radio. Always.

In an interview with the Chairman of PPA Greater Accra Caucus, Mr. Ebenezer Osei Kofi recommended that people should find time to exercise to save themselves from stress and depression.

He stated that the 2016 campaign for change still persist but now they are campaigning for a positive attitudinal change at the public and private institutions which will help increase growth.

Mr. Osei Kofi added that PPA’s main motive now is to help the current government achieve its agenda and policies.

For his part, Deputy National NADMO Director, Mr. Kwabena Denteh also expressed concern over the rate at which suicide keeps increasing in Ghana and added that stress could be a contributing factor.

“Again, PPA does not want to be known only when there is an election, through health exercise we are also demonstrating to people that we still exist”.

He advised that we must be each other keeper and this will help reduce the rate of suicide in our society.

Communication Director for PPA Greater Accra Caucus, David Tetteh says PPA is open to all professional bodies to join.

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By: Philip Nii Lartey/citifmonline.com/Ghana

The post Ghanaians advised to exercise to prevent suicide appeared first on Citi 97.3 FM - Relevant Radio. Always.