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Reg. 7 breached Procurement Act in awarding $22M in contracts without public tendering – AG Report reveals
Table showing the payment vouchers of the dietary supplies which were purchased. (Reg. 7 breached Procurement Act in awarding $22M in contracts without public tendering)
Kaieteur News- The Regional Administration of Region Seven breached the Procurement Act of 2003 when it awarded $22 million in contracts without public tendering, the Auditor General’s report of 2023 revealed.
The contract awards surpassed the legal limit of $3million.
According to the Auditor General, the regulations made under the Procurement Act 2003 – Amendment of Schedule 1 and Schedule 2 to the Principal Regulations, Item 2, stipulates that “The threshold foreseen in section 27(1) of the Act for use of the request for quotations method of procurement shall be $3,000,000.”
However, upon examination, the Audit Office discovered that the Regional Administration expended amounts totaling $22.969 million for the supply of dietary supplies for D.C Caesar Fox Secondary Dormitory through the processing of four Payment Vouchers.
“The Regional Democratic Council (RDC) breached the aforementioned regulations since the three-quote method of procurement was utilised. These purchases should have been publicly advertised and adjudicated by the Regional Tender Board due to the value exceeding the limit of $3M,” the AG pointed out.
Providing a breakdown of the $22 million purchases, the Audit Office detailed that the dietary supplies including flour, sugar, milk, blackeye peas, and butter among others were bought for $5,626,000.
Fresh fish, salted beef, sweet potatoes, among other items were purchased for $5,360,000; another $7,716,000 was spent on cheese, sausages, eggs, jam, Ovaltine, etcetera; and $4,267,000 was spent on cooking oil, onions, rice among others. All totaling $22,969,000.
In response to breaching the Procurement Act, the Regional Administration told the Audit Office “that these purchases were items urgently needed for the students.”
The Audit Office nevertheless, recommended that the Regional Administration ensures full compliance with the Procurement Act 2003.
(Reg. 7 breached Procurement Act in awarding $22M in contracts without public tendering – AG Report reveals)
- Auditor General Report 2023, breached, over $22 million in purchases, Procurement Act 2003, Regional Democratic Council of Region One
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