Prime News Ghana

Auditor-General uncovers inflated and poorly structured contracts in African Games audit, costing GH¢5.4 million.

By Primenewsghana
Shares
facebook sharing button Share
twitter sharing button Tweet
email sharing button Email
sharethis sharing button Share

The Auditor-General has raised serious concerns over inflated and poorly structured contracts awarded during the 13th African Games hosted in Accra, revealing procurement and financial irregularities that may have cost the state millions of cedis in avoidable losses.

A comprehensive audit into the organisation and delivery of the continental sporting event uncovered widespread weaknesses in procurement processes, questionable spending practices and weak financial oversight linked to several contracts awarded for the Games.


According to the report, many agreements were structured as fixed lump-sum contracts for services whose costs should ordinarily depend on actual usage, quantities or demand levels.

The audit noted that this arrangement created opportunities for significant overpricing and overpayment.

The affected services included accommodation, catering, transportation, air tickets and anti-doping tests.

The 13th African Games represented one of Ghana’s largest sporting undertakings in recent years, with the country investing heavily in infrastructure, logistics and event operations to host thousands of athletes and officials from across Africa.

Although the tournament was considered operationally successful, the audit paints a troubling picture regarding the management of funds behind the scenes.

Among the examples highlighted in the report were anti-doping contracts allegedly overpriced by approximately GH¢8 million.

Accommodation contracts were also said to have been inflated by around GH¢10.08 million, while vehicle rental agreements were estimated to have exceeded reasonable costs by about GH¢13.1 million.

LOC Chairman for the 13th Games , Dr. Kwaku Ofosu-Asare during the 2023 African Games

Sports equipment procurement similarly came under scrutiny, with possible overpricing estimated at approximately GH¢3.87 million.

The report further criticised the lack of transparency surrounding several major expenditures.

Auditors stated that some contracts lacked detailed pricing structures or sufficient justification for approved amounts.

The expenditures questioned in the audit included approximately US$3.24 million spent on sports equipment, US$2.83 million on catering services, GH¢7.63 million on T-shirts, GH¢6.54 million on branding and advertising, and GH¢2.32 million on cleaning services.

The audit also identified extensive use of single-source procurement and instances where contracts were awarded without the required approval authority.

According to the report, some firms were selected despite concerns over their qualifications and capacity to execute the work.

Winnifred Ntumi of thr Black Cranes receiving Gold at the 13th African Games

One example cited involved JDK Travel and Tours, which reportedly received a contract worth approximately US$1.575 million despite questions over its suitability.

Auditors also raised concerns over overlapping contracts, where multiple companies appeared to have been hired to provide similar services in areas such as catering, branding, medical services, printing and volunteer operations.

The report warned that the overlaps created confusion over responsibilities and increased the risk of duplicate payments and wasteful expenditure.

Infrastructure delivery linked to the Games also featured prominently in the findings.

The audit highlighted defective construction works, poor workmanship, material substitutions and weak supervision on some projects associated with the tournament.

Particular attention was placed on the Borteyman Sports Complex, one of the flagship facilities developed for the Games.

According to auditors, significant portions of the original project scope were either omitted or reduced despite substantial expenditure on the facility.

The report estimated omitted works at the complex at approximately US$34.43 million, including drainage systems, access roads, parking infrastructure and electrical works.

 

Financial management systems surrounding the Games were also criticised.

The audit cited cash withdrawals exceeding GH¢20.37 million, payments made outside the official GIFMIS government payment platform and weak controls over merchandise and souvenir sales.

The report concluded that although Ghana succeeded in hosting the African Games from a sporting perspective, major governance failures, procurement weaknesses and financial inefficiencies undermined the management of the event.

 

 

Citinews