Ghana: Gh¢10.4 Million Procurement Breach Scandal - OSP Drags NDA CEO, 3 Others to Court

25 January 2023

The Office of the Special Prosecutor has filed criminal charges related to procurement breaches totalling GH¢10,400,000,00 involving the former Chief Executive of the Northern Development Authority (NDA) and three others at the Tamale High Court, Criminal Division.

They are Sumaila Abdul-Rahman, 56, Stephen Yir-Egu Engmen, 50, Deputy Chief Executive in charge of Operations, NDA; Patrick Seidu, 50, Deputy NDA in charge of Finance and Andrew Kuundaari, 65, the Chief Executive of A&QS Consortium Limited, 2019-2022.

The Special Prosecutor, Mr Kissi Agyabeng, who signed the writ said the four acted together with a common purpose, of directly or indirectly influencing the procurement process to obtain an unfair advantage for A&QS Consortium Limited in the award to A&QS Consortium Limited of a procurement contract by NDA under the implementation of the Infrastructure for Poverty Eradication Programme (IPEP), to increase, without lawful authority, the total contract sum of GH¢5,720,000.00 approved by Public Procurement Authority to an amount of GH¢10,400,000,000.

Together, the accused had been slapped with six counts of conspiracy to commit crime; to wit directly or indirectly influencing the procurement process to obtain an unfair advantage in the award of a procurement contract, contrary to section 23(1) of the Criminal Offences Act, 1960 (Act 29) and section 92(2) (b) of the Public Procurement Act, 2003 (Act 663).

The facts according to the SP are that Mr Abdul-Rahman used his position as the Chief Executive of the NDA between February 2022 and May 2022, directly or indirectly influenced the procurement process to obtain an unfair advantage for A&QS Consortium Limited in the award to A&QS Consortium Limited of a procurement contract by Northern Development Authority under the implementation of the Infrastructure for Poverty Eradication Programme (IPEP), by pushing through, approving, and submitting for payment, without lawful authority, two invoices submitted by A&QS Consortium Limited totalling GH¢8,328,840.00), an amount which exceeds the total contract sum of GH¢5,720,000.00) approved by Public Procurement Authority by an amount of (GH¢2,608,840.00).

He said Mr Abdul Rahman conspired together with Mr Kuundaari, the Chief Executive of A&QS Consortium Limited, Yir-Eru Engmen, Deputy Chief Executive in charge of Operations, NDA, Seidu, Deputy Chief Executive in charge of Finance and Administration, NDA to increase, without lawful authority, the total contract sum of GH¢5,720,000.00 approved by Public Procurement Authority to an amount of GH¢10,400,000.00.

The SP said Yir-Eru Engmen used his position as Deputy Chief Executive of accepting, without lawful authority, on behalf of Northern Development Authority, an offer from A&QS Consortium Limited for consultancy services for the design and supervision of construction infrastructure works and engineering services, at a time when no approval had been sought for by Northern Development Authority and no approval had been granted by Public Procurement Authority for the procurement of A&QS Consortium Limited.

He said Mr Yir-Eru Engmen used his position as Deputy Chief of NDA between May-June 2020 to supply to the Chief Executive of NDA a fictitious document which he misrepresented and passed off as the contract executed between NDA and A&QS Consortium Limited and which states the total contract sum as GH¢10,400,000.00, an amount which exceeds the total contract sum of GH¢5,720,000.00) approved by Public Procurement Authority by an amount of GH¢4,680,000.00, and thereby securing approval for payment, two invoices submitted by A&QS Consortium Limited totaling GH¢8,328,840.00), an amount which exceeds the total contract sum of GH¢5,720,000.00) approved by Public Procurement Authority by an amount of GH¢2,608,840.00.

The SP stated that Mr Yir-Eru Engmen influenced the procurement process to obtain an unfair advantage for A&QS Consortium Limited in the procurement of consultants by Northern Development Authority for the implementation of the Infrastructure for Poverty Eradication Programme (IPEP).

He said Mr Seidu used his position as Deputy Chief Executive in charge of Finance to instruct, direct and/or authorise the budget officer of NDA, without lawful authority, to initiate the process for payment and thereby securing approval for the payment of two invoices submitted by A&QS Consortium Limited totalling GH¢8,328,840.00, an amount which exceeds the total contract sum of GH¢5,720,000.00 approved by Public Procurement Authority by an amount of GH¢2,608,840.00.

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