The Procurement Minister, Adwoa Sarfo is set to face Parliament over claims that Micro-finance And Small Loans Centre (MASLOC) CEO failed to go through due process in awarding a GH¢28.8 million contract.
According to Ashaiman legislator Ernest Norgbey, the contract which was awarded to a private firm, Dextro-Impex Company Limited, did not go through competitive bidding.
He claims there was no grounds to have sole-sourced the contract and the award is illegal.
MASLOC CEO, Stephen Amoah and Adwoa Sarfo are to answer for the circumstances under which MASLOC purchased 1,800 second-hand vehicles from Germany for GH¢28.8 million
“At the time that these contracts were signed there was no board in place but the CEO took it upon himself to do all these things. We keep talking about sole sourcing and fighting corruption but if one CEO can take the decision to award a contract worth GH¢28.8 million, then there is every cause to worry,” Mr. Norgbey said.
According to him, even the Ghana Public Procurement Authority (PPA) cannot give approval to sole source such a contract.
“Under which condition or urgency are they going to authorize MASLOC to procure these cars when there are some conditions that ought to be met?” he quizzed.
Mr Norgbey said although Section 40 of the PPA Act allows for such a transaction to be okayed, the said contract does not qualify.
According to him, the Act is against public officers procuring second-hand vehicles for any state entity.
He believes MASLOC could have opened tender for prospective companies to bid for the supply.
The Ashaiman MP said the CEO must answer why he supported a company which did not have the financial muscle to undertake such a contract which was worth so much money.
“It is total grounds for corruption. I don’t need Martin Amidu [Special Prosecutor] to tell me this is grounds for corruption and this is what we are fighting about.”
Mr Norgbey said irrespective of whether the contract was executed or not, the fact that it was awarded shows something was not done right which must be investigated.
“The contract must be reversed…GH¢28.8 can do something for Ghana and we cannot allow people to engage in such improper acts.
The MP said on Wednesday, he will seek answers on the Floor of Parliament from Procurement Minister Adwoa Sarfo regarding which procurement method was used in awarding the contract.
Although Mrs Sarfo has not commented on the allegations, last Friday in Parliament, she indicated her readiness to answer questions regarding the MASLOC contract.