Audit shows two Technical Universities have lost over GH¢105 million due to contract irregularities

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Two Technical Universities have lost GH¢105,345,171 due to contract irregularities between January and December 2019, the Auditor-General’s (AG) report has said.

The culprit institutions are Koforidua Technical University and Takoradi Technical University.

The report looks at the accounts of public Technical Universities and Polytechnics.

As mandated by law, these public Technical Universities and Polytechnics were asked by the Auditor-General to submit their reports for the period under review.

In the Auditor-General’s report, the amount of GH¢105,345,171 was the highest in terms of costs since 2015, and the latest in the increasing levels of costs and wastage in terms of contracts in which the Technical Universities were involved in.

The report further states the progression in terms of contract irregularities from 2015 when the amount stood at GH¢12, 424, 149. The wastage worsened from GH¢18,427,454 in 2016 to GH¢45,510,862 in 2017.

This worsened to GH¢78,890,103 in 2018 and then eventually GH¢105,345,171 in 2019.

The Auditor-General’s report stated that the contract irregularities were “related to the unjustified review of the contract process, excessive payment of mobilization fees, and management’s inability to exercise due diligence in the award of contracts for project work”.

The report added: “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.”

Koforidua Technical University’s irregularities stood at GH¢44,222,321.54 while Takoradi Technical University wasted GH¢35,900,923.14.

Source: ghanaweb