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Ghana has lost $2bn in sole-sourced contract since 2010- Danquah Institute

By Clement Edward Kumsah
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Public Policy Research Centre, Danquah Institute has revealed that public procurement contract awarded on sole sourcing and restricted tender sources basis has cost Ghana a whooping GHÈ» 12 million since 2010.

In a statement signed by the Executive Director of Danquah Institute, Nana Attobrah Quaicoe, read “Our findings suggest that an estimated 65% savings could have been made if those deals were subjected to competitive tendering. That translates into GH¢7.8 billion savings in public funds, equivalent to US$1.93 billion”

According to Danquah Institute, Majority of the contracts awarded and approved by the Board of Public Procurement Authority in 2016 alone were done on a sole sourcing basis, with the rest being awarded on a restricted tendering basis and the justification for the government’s decision is not apparent, and therefore the choice of awarding contracts on a sole sourcing basis cannot be justified.

Furthermore, a clear example of a sole sourcing procurement that has could have made Ghana save some money was the approval of the contract for the supply of 3,000 cartons of A.T. pesticide for GH? 15,480,000.00 (fifteen million four hundred and eighty thousand Ghana Cedis) to ABP Ltd by Quality Control Company Limited (Cocobod). 

According to Danquah Institute, an amount of GHȻ366.00 per a carton could have been saved if competitive tendering process was used.
“Our checks show that this could have been competitively done at GH¢150.00 a carton instead of the GH¢516.00 ABP is being paid through sole sourcing. This means that our farmers could have received three and a half times more pesticides if the procurement was subjected to competitive tender.

The statement also caution that “We need to establish a solid culture in our governance system where the opportunity for entities and private individuals to participate in the procurement process becomes the standard. There should also be transparency and accountability to the people of Ghana, making the system more efficient and effective for the benefit of all interested parties and ensure that Ghanaians are being provided with value for money”