The maladministration at the Bulk Oil Storage Transport (BOST) continuous to emerge with revelations that its management on August 27, 2020, awarded a contract valued at over GH¢11 million for the repair of tanks at the Accra Plains Depot, Buipe and Bolgatanga Depot to Rocksure Energy Limited, whose competence has been called into question.
The Management of BOST, has also been accused of negligence in the performance of its duties by making sure that the state derived value for money from the GH¢11,712,513.84 paid Rocksure Energy Limited as a contract sum.
The revelations were made in the 2021 report of the Auditor-General.
It said “Section 90 of the Public Financial Management Act, 2016 (Act 921) demands that the governing body of a public corporation or state-owned enterprise shall establish and maintain policies, procedures, risk management and internal control systems, and governance and management practices, to ensure that public corporation or state-owned enterprise manages its resources prudently and operates efficiently in accordance with the objectives for which the public corporation or state-owned enterprise was established.
However, the auditors said they “..noted that the Management of BOST awarded the contract for the repair of Tanks at the Accra Plains Depot, Buipe and Bolgatanga Depot in letter referenced BOST/SCR.35/PPA/PRO/SP.1/31694 dated August 27, 2020, to Rocksure Energy Limited at a contract sum of GH¢11,712,513.84.
The report further said that “the audit team inspected the repaired tanks at Buipe and noted that although the repairs claimed to be completed for T-1, 2, & 3, the tanks have not been put to use due to the non-functioning of the Old Depot Loading Gantry and other additional works not yet carried out.
“Also, Tank 102 repairs was partially done because the replacement of the Internal Floating seal were yet to be fixed. Tank (T-103) at APD though repairs work completed but the tank is not in use. Management’s delay in fixing and installing pumps and loading arms, and inadequate scope of work as well as delay by the contractor in undertaking the repair works caused the lapse”.
To the auditors, “there is high possibility of value for money not to being achieved since the tanks were not operational though some funds have been committed to their repairs. The defect liability period may elapse, and any defects identified thereafter shall be borne by BOST leading to extra financial burden on the company.
“We recommended to Management to ensure that Messrs. Rocksure Energy Ltd complete the repair works on Tank (T-102) and commission all the tanks repaired before the payment of the contract retention amount of GH¢1,171,251.31 after the expiration of the defect liability period (included is an amount of GH¢63,355.13 for commissioning) for our verification.
“We urged Management to operationalise the Old Depot Loading Gantry at Buipe within the shortest possible time with the provision of 9No. Loading arms, 9No. Meters, 4No. Pump, motorizers, strainers and other accessories, adding “we also required the acquisition of new pumps and other accessories to enable tank (T-103) to be operational at the Accra Plain Depot (APD).
Management, is said to have stated that it was aware that it is in the best interest of BOST to operationalise all our revenue earning assets as we are working round the clock to make that a reality. From a paltry 18% in 2017, we are currently at 91%. This recommendation had already been identified that is the reason why the contract retention amount has not been paid till date even though it became due in October 2021. This has delayed the handing over of the project to BOST.
The contractor was engaged on December 10, 2021 and is yet to replace the internal floating roof of tank 102. We are currently going through the contract management processes to close the project.
It was observed that “Management had included the revamping of the old depot loading gantry at the Buipe depot in the scope of works for the BOST depot upgrade project which is scheduled for implementation from 2022 to 2023.
“Observation noted. A contractor has been engaged by management to repair tanks 101 and 102 which are connected by product pipelines to tank 103 at the depot.
“It is therefore not advisable to recommission tank 103 whiles hot works are being undertaken in the adjoining tanks hence the decision of management to re-operationalise the three tanks together after the approved works which are scheduled for four months
