Four people have been identified by the Office of the Special Prosecutor (OSP) as having violated several provisions of the Public Procurement Act, 2003 (Act 663) throughout the course of their work at the Northern Development Authority (NDA).
The four are Mr. Sumaila Abdul-Rahman, Chief Executive of the Northern Development Authority; Mr. Stephen Yir-eru Engmen, Deputy Chief Executive (Operations); Mr. Patrick Seidu, Deputy Chief Executive (Finance & Administration); and Mr. Andrew Kuundaari, Chief Executive of A&QS Consortium Limited.
Twenty (20) people were interviewed by the OSP over the course of four (4) months as part of the investigation.
Report
The report by the OSP into the investigation, dated January 24, 2023, found that Mr. Abdul-Rahman, Mr. Engmen, Mr. Seidu, and Mr. Kuundaari influenced the procurement process to obtain an unfair advantage for A&QS in the procurement for consultants by the NDA under the Infrastructure for Poverty (IPEP) by increasing the approved procurement total contract sum of GH₵5,720,000.00 by an amount of GH₵4,680,000.00 to an amount of GH₵10,400,000.00 without lawful authority.
Additionally, it concluded that Mr. Kuundaari submitted bills for the inflated GH₵10,400,000.00 contract value with malice. It claimed that he intentionally submitted invoices for A&QS that were GH₵4,680,000.00 beyond the permitted procurement total contract cost.
According to the report, he was successful in getting clearance for the payment of GH₵8,328,840.00, which was GH₵2,608,840.00 over the approved procurement total contract cost, and still owed GH₵2,071,160.00.
According to the report, invoices were described as "the building blocks of a meticulously prepared design to directly and indirectly influence the public procurement process to acquire an unfair advantage in the awarding of a procurement contract by NDA to A&QS under the IPEP."
"Mr. Abdul-Rahman, Mr. Engmen, and Mr. Seidu intended their actions to, and their actions did in fact, directly or indirectly influence the procurement process to obtain an unfair advantage to A&QS in the procurement for consultants by NDA under the IPEP by pushing through and/or approving and/or contributing to approve and/or contributing to cause the approval for payment to A&QS two (2) invoices totaling Eight Million Three Hundred and TwentyEight Thousand cedis Eight Hundred and Forty cedis (GH₵8,328,840.00) and exceeding the approved procurement total contract sum of Five Million Seven Hundred and Twenty Thousand cedis (GH₵5,720,000.00) by an amount of Two Million Six Hundred and Eight Thousand Eight Hundred and Forty cedis (GH₵2,608,840.00) with a further outstanding amount of Two Million Seventy One Thousand One Hundred and Sixty cedis (GH₵2,071,160.00), without lawful authority," the report reads.
"Mr. Engmen intended his actions to, and his actions did in fact, directly and indirectly influence the procurement process to obtain an unfair advantage to A&QS in the procurement for consultants by NDA for consultants under the IPEP by purporting, without lawful authority, to accept on behalf of NDA, an offer from A&QS for consultancy services for the design and supervision of construction infrastructure works and engineering services under the IPEP at a time when he was fully aware that NDA had not applied for PPA approval for the procurement of A&QS and PPA had not approved the procurement of A&QS by NDA".
Martin Kpebu, the complainant, was praised in the report by Special Prosecutor Kissi Agyebeng for his civic spirit and sense of responsibility.
Recall that the Special Prosecutor instructed the Controller and Accountant General to immediately halt payments to A&QS made under the NDA's implementation of the IPEP until the conclusion of the investigation on July 1 of last year.
The Special Prosecutor advised all public employees in the approval chain to keep in mind the tenor of a January 16, 2020, PPA authorizing the procurement by NDA of A&QS and to ensure value for money, the report stated, while lifting that direction in principle. According to the tenor, the prescribed whole contract cost for the purchase of A&QS was GH₵5,720,000.00
About IPEP & NDA
In order to fulfill a campaign promise to reduce poverty, especially in rural and underprivileged communities, the ruling New Patriotic Party implemented the Infrastructure for Poverty Eradication Programme (hereafter, IPEP) in 2017. This program allocates the cedi equivalent of $1,000,000 USD to each electoral constituency.
In accordance with the IPEP, the government established three development authorities—the Coastal Belt Development Authority, the Middle Belt Development Authority, and the Northern Development Authority—which took the place of the Savannah Accelerated Development Authority. It also established the Ministry for Special Development Initiatives.
The Northern Development Authority was established in accordance with the Northern Development Authority Act, 2017 (Act 963) to mobilize funds for the accelerated economic and social development of the Northern Development Zone, which includes fifty-seven (57) electoral constituencies and the Northern, Savannah, North East, Upper West, and Upper East regions. The Northern Region's Tamale serves as its administrative center.
