The Minority in Parliament has issued a stern warning to Ministries, Departments, and Agencies to refrain from signing long-term contracts without first seeking approval from the Legislature, as required by the Public Financial Management Act.
The caucus' Spokesperson on Mines and Energy, John Jinapor, described a worrying trend among these agencies to commit the state to such contracts without following proper procedure and cautioned that such actions would not go unpunished.
Speaking to JoyNews, John Jinapor stated that, “But we have also noted a thread where all of a sudden government agencies, ministries, departments, organizations, and companies owed by the government are rushing to sign long-term contracts.
“Let me just use this opportunity to emphasize this. If you read Section 33 of the Public Financial Management Act, when you commit as a covered entity, when you commit to sign a multi-year contract, which is a contract that spans years, you first have to go to the Ministry of Finance and you have to come to Parliament, so let me use this opportunity to send a strong warning and signal to all these agencies that you do so you breach the Public Financial Management Act and it comes with consequences including imprisonment, so I think that they should take note and follow the law and do what it is proper.”
In response to the trend of government agencies rushing to sign multi-year contracts without adequate scrutiny, Minority Spokesperson on Mines and Energy, John Jinapor, has promised that the Minority will remain vigilant in order to halt the practice.
He expressed concern about contracts being signed that last six years or more without any provisions for review, stating that this is cause for alarm given the decline in Ghana's oil revenues by 32%.
Mr Jinapor noted that his committee will be conducting an investigation into a $204 million multi-year contract in the upstream petroleum sector that was allegedly awarded through sole-sourcing, contrary to the usual practice of competitive bidding.
He explained that the contract was awarded for five years rather than the typical three years, raising serious concerns about the contracting process.
“Also, we have chanced on some technical reports, which raise very serious concern. Having taken cognizance of all this, the minority in parliament has initiated processes to cause the mines and energy committee to fully investigate this matter.
“I have already communicated to the chairman of the mines and energy committee, and under our new standing orders, we do not need to go to plenary; we can start an investigation, and we want this investigation to commence next week,” he noted.
Credit: Isaac Kafui Nyanyovor