The government could have saved about GH¢94.6 million if the Ministry of Lands and Natural Resources (MLNR) had continued working with Local Seedling Suppliers (LSSs) rather than purchasing seedlings from a private company at much higher prices, according to the Auditor-General’s investigation into the Green Ghana Project’s seedling procurement.
The Ministry of Lands and Natural Resources’ Performance Audit Report on the Management of the Green Ghana Project, which evaluated the execution of the countrywide afforestation program from 2021 to 2024, contains the conclusions.
Purchasing seedlings from Local Seedling Suppliers “would have been more economical,” the report claims, and the Ministry “would have saved an amount of approximately GH¢94.6 million” while simultaneously achieving the project’s goal of enhancing local communities’ quality of life.
“Therefore, there is no assurance that the procurement processes used by the subcommittee and the Chief Director of the MLNR guaranteed value for money in the procurement of seedlings,” the report continued.
According to the audit, the Ministry used local seedling suppliers for the Green Ghana Project in 2021 and 2022, but in 2023 and 2024, it gave Richie Plantations the supply of about 11.1 million seedlings through a single-source procurement process.
The Forestry Commission approved pricing for the seedlings between GH¢0.50 and GH¢1.50 per seedling, according to the article.
Richie Plantations, on the other hand, provided comparable seedlings at an average cost of GH9.50 per seedling, which was made up of a set transportation cost of GH4 and an average purchasing price of GH5.50.
According to the Auditor-General’s study, the government paid GH¢105.76 million to Richie Plantations for seedlings for the project’s 2023 and 2024 iterations.
The research calculated that the overall cost would have been GH¢11.13 million, potentially saving GH¢94,629,505.50, had the Ministry purchased the seedlings through Local Seedling Suppliers at the Forestry Commission’s permitted prices.
One of the main goals of the Green Ghana Project, which was to improve the livelihoods of local seedling suppliers in rural communities by their involvement in the production and sale of seedlings, was also compromised by the procurement arrangement, according to the Auditor-General.
The Ministry claimed that Local Seedling Suppliers were unable to deliver the necessary seedlings, although the documents that were accessible indicated otherwise, according to the study.
For example, the audit discovered that 17.26 million seedlings, or almost 65% of all seedlings planted under the scheme, were successfully supplied by Local Seedling Suppliers in 2022 alone.
The Auditor-General came to the conclusion that the suppliers had shown adequate capability to meet government demand because the annual target for both the 2023 and 2024 editions was 10 million seedlings.
According to the report, “This gives an indication that, contrary to the Chief Director’s claim, the Local Seedling Suppliers had the capacity to supply and deliver the seedlings for the 2023 and 2024 Green Ghana Project.”
The audit also showed that the government owed local seedling suppliers over GH¢39.5 million for seedlings provided during the 2021 and 2022 editions, even though they were not included in the project in 2023 and 2024.
Over 16.1 million seedlings had not been paid to 734 local seedling suppliers, with payment delays ranging from 36 to 48 months, according to the audit.
The audit team’s interviews showed that the impacted suppliers’ repeated attempts to obtain payment at the Forestry Commission’s headquarters in Accra and district offices were unsuccessful.
The suppliers informed the auditors that the protracted payment delay had negatively impacted their livelihoods and resulted in significant financial losses.
The Ministry paid Richie Plantations GH¢70 million for seedlings supplied for the 2023 Green Ghana Project, notwithstanding the existing debt to local seedling suppliers, according to the report.
In addition to procurement problems, the Auditor-General found flaws in the main afforestation program’s design and execution.
The report claims that inadequate planning for soil testing and soil-to-seedling species matching prior to planting by the Ministry and the Forestry Commission increased the risk of low seedling survival.
The audit mentioned one case at the Kpligine hamlet in the Northern Region’s Buligu Forest Reserve, where over 80% of teak seedlings perished after being planted on wet, flood-prone ground that wasn’t suited for the species.
The project’s budgeting procedure was also faulted in the report for being insufficient and unrealistic, which led to funding shortages, payment delays, and implementation difficulties.
The Ministry “did not adequately plan for the effective implementation of the Green Ghana Project,” according to the Auditor-General, and its procurement procedure “did not ensure value for money.”
The Auditor-General made several recommendations, including asking the Ministry to use the Forestry Commission’s approved seedling prices as a standard for future purchases, include the Ministry’s and the Forestry Commission’s procurement units in all procurement procedures, accurately record procurement activities to improve accountability and transparency, and arrange to pay off outstanding debts to local seedling suppliers.
In response to the findings, the Ministry argued that it was not viable to continue cooperating with Local Seedling Suppliers for the 2023 and 2024 projects due to unpaid debts and financial limitations.
Additionally, it said that Richie Plantations had already obtained permission from the Public Procurement Authority to cultivate seedlings for afforestation and reforestation projects, and that the approved rates considered the quality of the seedlings, transportation, and direct delivery to planting locations.
The Auditor-General, however, insisted that the Green Ghana Project’s procurement strategy did not show value for money and reaffirmed that the government could have saved a significant amount of money while boosting local economies if it had continued to use local seedling suppliers.
Source: newsthemegh.com