Contract irregularities cause technical universities to lose GHS105

It has emerged that in 2019, technical universities in Ghana lost GHS 105,345,171 to contract irregularities between January and December 2019.

The worrying development was captured in the 2019 Auditor-General report looking at the accounts of Public Technical Universities and Polytechnics in Ghana.

The Auditor-General asked the various technical universities to submit their accounts covering the period as mandated by law.

The amount of GHS 105,345,171 was the highest in terms of cost since 2015, and it was the latest in the increasing levels of cost and wastage the universities were involved in when it came to contracts.

The report highlighted the progression in terms of contract irregularities from 2015. At the time, it stood at GHS 12, 424, 149.  The amounts progressed from GHS 18,427,454 in 2016 to GHS 45,510,862 in 2017.

It moved upwards to GHS 78,890,103 in 2018 and then, to GHS 105,345,171 in 2019.

Guilty parties

The Koforidua Technical University’s irregularities stood at GHS 44,222,321.54 while the Takoradi Technical University was guilty of wasting GHS 35,900,923.14 on the same irregularities.

The Cape Coast Technical University was not mentioned in this group of universities.

What are these contract irregularities and how did they come about

According to the report, contract irregularities were “related to the unjustified review of the contract process, excessive payment of mobilization fee, and Management’s inability to exercise due diligence in the award of contracts for project work. They were caused by management’s inability to adhere to provisions in contract documents, improper contract budgeting and commencing many projects at the same time.”