PPA Saves GH¢2.75 Billion President Akufo-Addo
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President Nana Addo Dankwa Akufo-Addo has said the government has saved the country GH¢2.75 billion through the review of contracts either under sole-sourcing or restrictive tendering procedures.


He said in spite of the recent happenings at the Public Procurement Authority (PPA) surrounding its suspended Chief Executive Officer, the government remained committed to protecting the public purse.

Siting a case to buttress his point, President Akufo-Addo said, a contract was awarded in 2016 for the supply of 250,000 bags of ‘Asaasewura’ cocoa fertilizer, with a contract sum of $11.5 million, $46 per bag of fertilizer.

This same contract, the President intimated, “under my administration, was reviewed by the PPA in 2018 for $7.87 million, $31.50 per bag, resulting in savings to the exchequer of $3.62 million.” That, the President stressed, was in sharp contrast to the performance of the PPA before 2017, where approvals were given as a matter of course and no savings made at all.

Addressing members of Ghana Bar Association at their 2019 Bar Conference on Monday in Takoradi, Western Region, President Akufo-Addo said “there are many such examples. Indeed, only 47% of applications for restricted tender and 56% of applications for sole-sourcing were approved in 2017, as opposed to approvals of 99% for restricted tender and 96% for sole sourcing in 2016.”

Information from the Public Procurement Authority also reveals the Akufo-Addo‘s the government has made savings from a contract awarded in 2012 for the Rehabilitation and Upgrading of Equipment in Polytechnics and Technical Universities.

This contract was signed by the previous government in 2012, with AVIC International Holdings from China, for the rehabilitation and upgrading of equipment in Polytechnics and Technical Universities in the country.

Upon assumption of office, the government, through the Ministry of Education, renegotiated the terms of the original agreement and ensured an increase in the number of Polytechnics that would benefit from the equipment upgrade from five to ten.

Additionally, the number of technical institutions to have their equipment upgraded and rehabilitated increased from 10 to thirteen, with an additional three years after-sales service support to the two years warranty period originally agreed between the NDC Government and the Contractor. These significant increases, according to the PPA, were within the originally approved Contract price of $119.1 million.

Touching on the banking crisis, President Akufo-Addo was expectant that the criminal conduct, if any, “of those responsible for the banking crisis, which is under detailed scrutiny, would be brought to justice, if evidence of criminality is found, which, according to my information, is likely.”


Source: ISD (Rex Mainoo Yeboah)