Question Tag: Contract Splitting

a) In a recent Auditor General’s Report to Parliament, several Ministries Departments and Agencies were cited for various financial management irregularities. Included in the report were Stores and Procurement irregularities covering the following:
i) Uncompetitive Tendering
ii) Unplanned Procurement
iii) Contract splitting

Required:
Explain the above irregularities in the context of the Public Procurement Amendment Act, 2016 (Act 914). (6 marks)

b) Under the procurement laws of Ghana, a procurement entity may for specific and justifiable reasons, cancel the procurement proceedings before the expiry of the deadline for the submission of the tenders.
Required:
Outline FOUR (4) conditions under which a procurement entity may activate this provision under the Public Procurement Amendment Act, 2016 (Act 914). (4 marks)

c) University of Communication is a Public University in Ghana. The University has a student population of about Forty Thousand (40,000). The University is located in a very populous environment, and the community lacks a modern Hospital that could provide good health care for the students and the community at large. Due to financial constraints, the University can currently boast of only one clinic that barely serves the full health needs of the students. The University intends to use the Public-Private Partnership (PPP) arrangement to construct an ultra-modern hospital in the University to provide the full health care of the University community.

In addition to the internally generated fund from the operations of the new hospital, it will also serve as a practical learning centre for the University. In this regard, the University has been approached by Trust Investors Ltd, a private company that intends to construct the ultra-modern hospital in the University to serve these purposes using a Build Operate and Transfer (BOT) arrangement. Negotiations are just at the preliminary stage, and you have been contracted as the consultant to assist the parties to enter into a successful PPP arrangement. The parties are eager to know the inherent risks they are exposed to under such an arrangement.

Required:
Write a report to the parties, outlining THREE (3) risks each that the two parties are exposed to. (10 marks)