The 2017 Auditor-General’s Report on the management and Utilization of the District Assembly Common Fund (DACF) and other statutory funds, has indicated the Dormaa Central Municipal Assembly in the Brong-Ahafo Region for paying GH¢259,527 to contractors for no work done.
Regulation 39 of the Financial Administration Regulation (FAR) 2004 states that a head of department shall ensure that monies are utilized in a manner that secures both optimum value for money and the intention of Parliament.
According to the Auditor-General, however, the Dormaa Central Municipal Assembly defied the principle and awarded a contract to Kehentons Company in September 2012 to rehabilitate the Aduanakrom Community Center at a sum of GH¢814,263.65.
“We noted that, management of Assembly awarded a contract for the rehabilitation of the Aduanakrom Community Center to Kehenton Company Limited in September 2012, at a contract sum of GH¢814,263.65,” the audit report said.
The Assembly paid an amount of GH¢234,527.45 to the contractor and GH¢25,000 to AESL, Sunyani, as consultancy services, but terminated the contract.
The Auditor-General said there was no evidence of work done for GH¢234,527.45 paid to Kehenton Company Limited.
Again, the Assembly did not provide the audit team with any documentation covering the contract or the reason for the termination of the contract.
Surprisingly, the Auditor General further detected that the assembly re-awarded the same contract to a different contractor, Messrs. Oases in February, 2015, at a contract sum of GH¢854,080.65.
The said work has been completed and handed over to the assembly.
“We further noted that the same contract was re-awarded to different contractor, Messrs. Oases Limited. In February 2015, at a contract price of GH¢854,080.65, for which work had been completed and the project handed over to the assembly.”
The Auditor-General said the irregularities were occasioned by wrongful certificate of works approved by the Works Departments and monitoring teams of the Assembly, which failed to properly inspect the projects before recommending payment to the contractor.
Subsequently, the Auditor-General has recommended the recovery of the amount, GH¢259,527.45, from the contractor, Kehentons, and AESL for no work done, failing which the former Municipal Chief Executive, Mr. Gordon Asubonteng, and the former Engineer, Mr. Bernard Opoku, must be jointly surcharged.
“We recommended the recovery of the amount of GH¢259,527.45 from the contractor, Kehentons Company Ltd, and AESL for no work done, filing which, the former Engineer (Bernard Opoku) and the former Municipal Chief Executive (Gordon Asubonteng) should be jointly surcharged with the amount involved.”
The Auditor-General said it requested the Chief Executive, Coordinating Director and Finance officer to provide the documentation covering the contract with Kehentons Company Limited.
Three other assemblies in the region also undertook uncompetitive procurement by making seven payments for goods and services totaling GH¢191,133.50, without seeking alternative quotations from other prospective suppliers, or approval from the Public Procurement Authority.
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