Ministry of Health and its allied agencies cited for procurement infractions

The Ministry of Health and some of its allied agencies have been cited by the Auditor General for breaching sections of the Financial Administration Regulation and the Procurement Act. 

Sole sourcing without approval from the Public Procurement Authority, Purchases from Non-VAT registered companies and purchases of One-point-four Million Ghana Cedis worth of male condoms without due diligence were some of the infractions. 

These came-up today, January 25, 2016 when officials from the Ministry of Health, the Ghana Health Service and the Korle-bu Teaching Hospital led by the Sector Minister Alex Segbefia appeared before the Public Account Committee in Parliament. 

Radio Ghana's parliamentary correspondents Dominic Hlordzi and Augustus Acquaye report that the Auditor General indicted the Ministry of Health and its allied agencies in its 2011, 2012 and 2013 report for violating the Financial Administration Regulation and the Procurement Act in their operations. 

The Ministry was cited for spending One Million Four Hundred and fifty Ghana Cedis in the procurement of male condoms without going through the Procurement Process.
 
Answering queries posed by the MP for Abuakwa South Samuel Atta Kyea, the Acting Chief Director of the Ministry of Health Dr. Afisah Zakaria told the Committee that the money for the Condoms was from Global Fund.
 
Section 87(1) of the Procurement act 2003 provides that except in extreme cases of urgency where there will be aggregate increase in the original amount of a contract by more than ten percent, a procurement entity shall inform the appropriate tender review board, to review any proposed extension, modification or variation order with reasons.
 
Contrary to this the auditors noted that the Ghana Health Service did not obtain the approval of the Ministry of Health’s tender board prior to the review of three projects at the cost of one-point four million Ghana Cedis at an averaged 207 percentage increase. 
 
According to the law when a variation exceeds 15 percent a new contract must be entered into. 

The Variation infractions involved the construction of a four unit classroom block at Agogo Nurses Training College and one classroom block at Teshie Health Assistant Training School.
 
The Head of Capital Investment Unit at the Ministry of Health Ben Nkansah narrates to the Committee what went into taking the decision to vary the contracts.


GBC