Over US$77K ‘Illegally’ Expended at Liberia Electricity Corporation
Monrovia – The Liberia Electricity Corporation (LEC) has reportedly been expending thousands of United States dollars without adhering to the Public Procurement Concession Commission (PPCC) Act.
Report by Lennart Dodoo – [email protected]
The ‘illegal expenditure’, according to the General Auditing Commission (GAC) compliance audit, occurred from 2011 to 2015 which was the period audited.
The subject matter area of the compliance audit involved the procurement of goods, works and services such as equipment, vehicle, technical consultancy, agro fuel and lubricant as well as installations of electrical appliances.
The GAC during the audit observed that a total of US$77,377,261.47 was disbursed for the procurement of goods, works and services without taking into consideration the procurement laws.
During the audit, the GAC detected that the LEC management conducted procurement activities without an approved procurement plan by the PPCC.
The GAC noted that there was the need for a procurement plan which should have served as the instrument to guide the procurement of goods, services and works for the period 2010/2011.
The failure of the LEC management to comply with the procurement laws was in violation of Section 40(1-2) of the PPCC Act of 2005 as amended and restated in 2010.
The utility company, according to the report, had been operating without any database of suppliers, consultants; neither did they maintain a profile of the past performance of suppliers, contractors and consultants, as mandated in the PPCC Act, Section 29(5j to K).
The LEC Management expended the amount of US$72,089,302.37 periods 2010/2011 to 2014/2015 for the procurement of various goods without adherence to the provision of National Open Competitive Bidding Process as required by the PPC Act of 2005 as amended and restated in 2010, Section 48(1).
Without adherence to Section 48 (1) of the Act, the management of LEC, according to the GAC, expended the amount of US$5,187,913.57 for the provision of various services.
It also expended the amount of US$ 25, 540.81 for the procurement of various goods without complying with the provision of request for quotation as required by the PPC Act, the audit captured.
The LEC Management further disbursed the amount of US$ 74,500.63 for the procurement of various services for the periods 2010/2011 to 2014/2015 without adherence to the provision of request for quotation as required by the PPC Act of 2005 as amended and restated in 2010, Section54(1-4).
According to the GAC, the management of LEC did not reply to the findings raised by the audit when they were informed through a letter.
The Liberia Electricity Corporation (LEC) was created by an Act of Legislature approved in 1973.
The objective of the Liberia Electricity Corporation is to act for and on behalf of the Government of the Republic Liberia by engaging in the development, generation and transmission of electrical energy, the manufacture, construction and installation of electrical equipment and devices related thereto, and the distribution and sale of said electrical energy and related equipment and devices, to cities, towns, and the public in general for heating, lighting, and power purposes and for the carrying on of all business incidental thereto.
It was also to establish and maintain electrical power stations, offices and/or agencies within and everywhere inside Liberia and to exercise any or all of its corporate powers and rights in Liberia and in any other foreign country or countries.
The PPCC Act establishes the Public Procurement and Concessions Commission (PPCC) with oversight responsibility to regulate and monitor all forms of public procurement and concessions practices in Liberia.
The PPCC replaced the Contract and Monopolies Commission (CMC) with elaborate mandates of monitoring procuring entities to comply with the Act for all public procurement and awarding concessions, in order to ensure economy, efficiency, transparency and to promote competition so that government gets value for money in using public funds.