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It has been established by the Auditor General after a review of Bulk Oil Storage And Transportation Company Limited (BOST) Board’s policy documents that, the Board has no policy guidelines on how BOST’s financial resources should be invested but they did an investment with some financial institutions leading to lock up of funds to the tune of GH¢19,665,333.36.
This is contained in the Auditor-General’s 2021 report on the Public Accounts of Ghana – Ministries, Departments and Other Agencies.
However, the Auditor General recommended that the Board should develop a policy document to guide future investment decisions of the company.
Avoidable Judgment Debts
Also BOST continues to pay avoidable judgment debts in the forms of cost and interest amounting to GH¢9,169,884.48 and US$3,057,096.00 to three contractors for breach of contract and undue delays in the payment of legitimate contract sums.
The Auditor General recommended that Management should apply appropriate sanctions on all officers whose negligence have occasioned the loss.
“Additionally, we urged Management to heed to all contract terms and indulge in negotiations rather than lawsuit in resolving disagreements,” the report stated.
Contrary to Public Financial Management Act/Regulations, the Auditor General noted that, BOST did not obtain VAT invoices/receipts for payments totaling GH¢726, 376.33 with a VAT component of GH¢127,115.86 made to suppliers and service providers for the period under review.
The AG has requested Management to obtain the requisite VAT invoices/receipts covering the payments totaling GH¢726,376.33 by 31 March 2022 failing which the VAT component of GH¢127,115.86 should be recovered from the authorizing and approving officials and paid same to the Commissioner General, Ghana Revenue Authority and submit the evidence for verification.
By: Peacefmonline.com
