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PSAF – Nov 2023 – L2 – Q4b – Public procurement

Outlining conditions relevant to the methods for selecting a consultant based on the Public Procurement Act.

Section 72 of Public Procurement Act 2003, Act 663 as amended by section 16 of Act 914 has specified the conditions to be satisfied in choosing a method of selecting a consultant.

Required:
Outline the conditions relevant to the use of the following methods for a consultancy contract:
i) Least Cost
ii) Quality Based
iii) Qualification of Consultants

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PSAF- Nov 2023 – L2 – Q4a -Public procurement

Outline records that a Procurement Entity is required to keep in procurement proceedings.

Section 28 of the Public Procurement Act 2003, Act 663 as amended by Act 914, requires every Procurement Entity to maintain certain basic records of proceedings.
Required:
Outline FOUR (4) records that a Procurement Entity is required to keep in the course of procurement proceedings. (4 marks)

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PSAF – Nov 2019 – L2 – Q4b – Public procurement

Write a memo justifying the use of single source procurement for an X-ray machine component in a public hospital.

You are the Head of Accounts of a large public hospital. A major component of a critical X-Ray machine is damaged and requires immediate replacement. However, the Head of the Procurement Entity who doubles as the Director of the Hospital is insisting that the procurement should be carried through competitive tendering so as not to incur the wrath of the Auditor General. He lamented, “I hate single sourcing because it has too much issues, I don’t want any problem.” Nevertheless, you feel strongly that single sourcing is the most appropriate method of procurement given that the amount involved falls within the threshold authorized by the Public Procurement Act, 2003 (Act 663) as amended by the Public Procurement Amendment Act, 2016 (Act 914).
Required:
As the Chief Accountant, write a memo to the Head of the Entity, justifying the appropriateness of the use of single source method to procure the component of the X-Ray Machine based on the Public Procurement Act, 2003 (Act 663) as amended by the Public Procurement Amendment Act, 2016 (Act 914). 4 marks

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PSAF – March 2024 – L2 – Q4a – Public Financial Management, Public Procurement

Explain procurement irregularities and conditions under which procurement processes can be canceled; discuss PPP risks.

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)

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PSAF – Nov 2021 – L2 – Q4b – Public Procurement

Explain the functions of an Entity Tender Committee as per the Public Procurement Act 2003.

Section 20(1) of the Public Procurement Act 2003 (Act 663) states that a Procurement entity shall establish in the manner set out in the First Schedule and in accordance with the categories set out in Schedule 1A, an Entity Tender Committee.

Required:
Explain THREE (3) Functions of an Entity Tender Committee.
(3 marks)

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PSAF – Nov 2021 – L2 – Q4a – Public Procurement

Determine if a district assembly can cancel a procurement process and explain the conditions under which such a cancellation is allowed.

Rabina Construction Ltd purchased Tender Document from Adagya District Assembly to tender for contracts advertised by the assembly. However, in the process of preparing to submit the tender, Adagya District Assembly cancelled the procurement process before the deadline for submission of the tender. Rabina Construction, therefore, feels disappointed since it has incurred some cost in trying to respond to the tender and intends to take legal action against the assembly. Rabina Construction is therefore seeking your opinion on whether the assembly has the right to such action.

Required:
i) Determine whether Adagya District Assembly has the right to cancel the procurement process when it is still in progress?
(1 mark)

ii) Explain FOUR (4) conditions under which such right could be exercised or otherwise.
(6 marks)

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PSAF – May 2019 – L2 – Q2c – Public Procurement

Explain circumstances that may constitute an offense under the Public Procurement Act, 2003 (Act 663).

c) Section 92 (1) of the Public Procurement Act, 2003 (Act 663) provides that any person who contravenes any provision of the Act commits an offense and where no penalty has been provided for the offense, the person is liable on summary conviction to a fine not exceeding 1000 penalty units or a term of imprisonment not exceeding five years or to both.

Required:
Explain FOUR (4) circumstances that may constitute an offense as provided by the Public Procurement Act 2003, (Act 663).
(6 marks)

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PSAF – May 2018 – L2 – Q2b – Public Procurement

Discuss the scope and application of the Public Procurement Act and advise on the recognition as a procurement entity.

An entity established by an Act of Parliament is 95% funded by its Internally Generated Funds (IGF). The Government of Ghana then finances 5% of its budget from the consolidated fund. The Chief Executive Officer (CEO) and the Chief Accountant have argued on the need to or not to be recognized as a Procurement Entity as per section 14 of the Public Procurement Act, 2003 (Act 663) as amended by Act 914.

The CEO would like to set up an internal arrangement for procurement with the Chief Accountant as the chairman of the Procurement Committee, but the Chief Accountant would like the organization to set up a Procurement Committee in accordance with the Act.

Required:
i) According to Section 14(1)(2) of the Public Procurement (Amendment) Act 2016, what is the scope and application of the act? (5 marks)

ii) Advise the CEO and Chief Accountant on whether their entity falls under the Public Procurement (Amendment) Act 2016, Act 914. (2 marks)

iii) Under what conditions would a procurement entity undertake procurement in accordance with established commercial practice? (3 marks)

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PSAF – Nov 2023 – L2 – Q4b – Public procurement

Outlining conditions relevant to the methods for selecting a consultant based on the Public Procurement Act.

Section 72 of Public Procurement Act 2003, Act 663 as amended by section 16 of Act 914 has specified the conditions to be satisfied in choosing a method of selecting a consultant.

Required:
Outline the conditions relevant to the use of the following methods for a consultancy contract:
i) Least Cost
ii) Quality Based
iii) Qualification of Consultants

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PSAF- Nov 2023 – L2 – Q4a -Public procurement

Outline records that a Procurement Entity is required to keep in procurement proceedings.

Section 28 of the Public Procurement Act 2003, Act 663 as amended by Act 914, requires every Procurement Entity to maintain certain basic records of proceedings.
Required:
Outline FOUR (4) records that a Procurement Entity is required to keep in the course of procurement proceedings. (4 marks)

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PSAF – Nov 2019 – L2 – Q4b – Public procurement

Write a memo justifying the use of single source procurement for an X-ray machine component in a public hospital.

You are the Head of Accounts of a large public hospital. A major component of a critical X-Ray machine is damaged and requires immediate replacement. However, the Head of the Procurement Entity who doubles as the Director of the Hospital is insisting that the procurement should be carried through competitive tendering so as not to incur the wrath of the Auditor General. He lamented, “I hate single sourcing because it has too much issues, I don’t want any problem.” Nevertheless, you feel strongly that single sourcing is the most appropriate method of procurement given that the amount involved falls within the threshold authorized by the Public Procurement Act, 2003 (Act 663) as amended by the Public Procurement Amendment Act, 2016 (Act 914).
Required:
As the Chief Accountant, write a memo to the Head of the Entity, justifying the appropriateness of the use of single source method to procure the component of the X-Ray Machine based on the Public Procurement Act, 2003 (Act 663) as amended by the Public Procurement Amendment Act, 2016 (Act 914). 4 marks

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PSAF – March 2024 – L2 – Q4a – Public Financial Management, Public Procurement

Explain procurement irregularities and conditions under which procurement processes can be canceled; discuss PPP risks.

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)

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PSAF – Nov 2021 – L2 – Q4b – Public Procurement

Explain the functions of an Entity Tender Committee as per the Public Procurement Act 2003.

Section 20(1) of the Public Procurement Act 2003 (Act 663) states that a Procurement entity shall establish in the manner set out in the First Schedule and in accordance with the categories set out in Schedule 1A, an Entity Tender Committee.

Required:
Explain THREE (3) Functions of an Entity Tender Committee.
(3 marks)

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PSAF – Nov 2021 – L2 – Q4a – Public Procurement

Determine if a district assembly can cancel a procurement process and explain the conditions under which such a cancellation is allowed.

Rabina Construction Ltd purchased Tender Document from Adagya District Assembly to tender for contracts advertised by the assembly. However, in the process of preparing to submit the tender, Adagya District Assembly cancelled the procurement process before the deadline for submission of the tender. Rabina Construction, therefore, feels disappointed since it has incurred some cost in trying to respond to the tender and intends to take legal action against the assembly. Rabina Construction is therefore seeking your opinion on whether the assembly has the right to such action.

Required:
i) Determine whether Adagya District Assembly has the right to cancel the procurement process when it is still in progress?
(1 mark)

ii) Explain FOUR (4) conditions under which such right could be exercised or otherwise.
(6 marks)

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PSAF – May 2019 – L2 – Q2c – Public Procurement

Explain circumstances that may constitute an offense under the Public Procurement Act, 2003 (Act 663).

c) Section 92 (1) of the Public Procurement Act, 2003 (Act 663) provides that any person who contravenes any provision of the Act commits an offense and where no penalty has been provided for the offense, the person is liable on summary conviction to a fine not exceeding 1000 penalty units or a term of imprisonment not exceeding five years or to both.

Required:
Explain FOUR (4) circumstances that may constitute an offense as provided by the Public Procurement Act 2003, (Act 663).
(6 marks)

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PSAF – May 2018 – L2 – Q2b – Public Procurement

Discuss the scope and application of the Public Procurement Act and advise on the recognition as a procurement entity.

An entity established by an Act of Parliament is 95% funded by its Internally Generated Funds (IGF). The Government of Ghana then finances 5% of its budget from the consolidated fund. The Chief Executive Officer (CEO) and the Chief Accountant have argued on the need to or not to be recognized as a Procurement Entity as per section 14 of the Public Procurement Act, 2003 (Act 663) as amended by Act 914.

The CEO would like to set up an internal arrangement for procurement with the Chief Accountant as the chairman of the Procurement Committee, but the Chief Accountant would like the organization to set up a Procurement Committee in accordance with the Act.

Required:
i) According to Section 14(1)(2) of the Public Procurement (Amendment) Act 2016, what is the scope and application of the act? (5 marks)

ii) Advise the CEO and Chief Accountant on whether their entity falls under the Public Procurement (Amendment) Act 2016, Act 914. (2 marks)

iii) Under what conditions would a procurement entity undertake procurement in accordance with established commercial practice? (3 marks)

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