A private engineering firm named Gumah and Sons Ltd has been directed by the Public Accountants Committee (PAC) to either refund GH¢678,344 to the Fisheries Commission or supply two Toyota Prado vehicles that it was contracted to supply in October 2021.
The committee has recommended that the company return the funds along with the accrued interest to the commission's account before the end of February this year.
“Looking at the nature of this transaction, we think that Gumah and Sons Ltd should compute the interest from the day that they failed to supply the vehicles up to the day that they finish paying the last pesewa,” the committee directed.
During a recent hearing before the Public Accounts Committee (PAC), chaired by Dr. James Klutse Avedzi, officials from the Ministry of Fisheries and Aquaculture, including Minister Mavis Hawa Koomson, were called upon to address concerns raised by the Auditor-General's report on the public accounts of various ministries and agencies for the year ending December 31, 2022.
The PAC directed the officials to provide explanations and remedies for the identified infractions.
The Fisheries Commission, which operates under the Ministry of Fisheries and Aquaculture Development, recently awarded a contract to Gumah and Sons Ltd via a competitive tendering process.
As per the contract, Gumah and Sons Ltd will supply eight Toyota Hilux pick-up trucks at a cost of GH¢2,133,995 and two Toyota Prado vehicles at a cost of GH¢947,924. The contract was awarded on October 15, 2021.
Both the commission and the company were provided with eight pick-up trucks and two Toyota Prado vehicles.
However, the two Prado vehicles had significant defects and were returned to the company.
The company has been able to refund a total of GH¢269,580 so far, but there is still a remaining balance of GH¢678,344.
During a committee hearing, Ms. Koomson was questioned regarding an overpayment of the contract sum as highlighted in the A-G's report, in response, she stated that her ministry did not engage in any such overpayment.
She told the committee that the two Toyota Prado vehicles were returned to the supplier because they had major defects.
She presented two letters dated October 15, 2021, from Kwesi Armo-Himbson, the Chief Director of the Ministry, stating that there were two distinct contracts totaling GH¢3,081,919 in value.
She clarified that GH¢2,133,995 was the contract cost for the supply of eight Toyota Hilux trucks, and GH¢947,924 was the contract value for the acquisition of the two Toyota Prado cars.
She thus asked the committee to grant the ministry permission to revisit and clear up any misunderstandings arising from the A-G's report.
In response to a committee member's question about whether the ministry could prove Gumah and Son Ltd was in the automobile business and whether it followed the right procedures when choosing the supplier of the vehicles, the Chief Director stated, "All the necessary processes were followed for that particular procurement."
“We used competitive tendering process and the company tendered and they went through the necessary processes and we awarded the contract.
“At the time that they were submitting the bids, they submitted enough documentation to indicate that they were competent enough to supply the vehicles,” Mr Armo-Himbson said.
Dr James Klutse Avedzi (left), Chairman, Public Accounts Committee, addressing the committee