Mahama’s African Games forensic audit reveals over $40m in financial irregularities

A forensic audit of Ghana’s organisation of African Games 2023 has revealed that the country spent in excess of $40 million on avoidable cost.

The audit, which was commissioned by President Mahama last year and sighted by Joy Sports detailed the country’s expenses for the competition that began late February 2024 and ended on mid-March same year.

The report identified millions of dollars and cedis in questionable claims, inflated rates, omitted works and avoidable costs across several projects.

The comprehensive audit into facilities constructed and refurbished for the Games highlighted what it described as “opportunity costs”, irregular variations and inconsistencies in Bills of Quantities (BoQs), particularly at the Borteyman Sports Complex, University of Ghana Stadium, Games Village hostels, cricket facilities and access roads.

According to the report, the biggest red flag emerged from the Borteyman Sports Complex project, where auditors estimated a net omission and “opportunity cost for scope shrinkage” of $34.43 million from the original contract value of $145.09 million.

The Audit Service said several major components initially captured in the contract were either omitted entirely or significantly rescoped. These included:

Warm-up football field – $3.213 million omitted

Multipurpose hall conversion into lecture halls – $3.06 million omitted

Single-lane access road – USD 11.22 million omitted

Double-lane access road – $11.22 million omitted

Drainage works – $3.366 million omitted

Electrical substation – $ 850,000 omitted

Concrete sidewalks and children’s playground – reduced by $2.014 million

Equipment installations including CCTV, irrigation and security systems – reduced by $1.6 million

Despite the scope reductions, auditors noted that consultant supervision fees increased from 3 per cent to 3.83 per cent after the rescoping exercise.

At the University of Ghana Stadium project, the Audit Service flagged claims amounting to $2.814 million as opportunity costs arising from variations and delays.

The report cited:

$388,856.78 in interest on delayed payments, $1.136 million in prolongation costs due to a 10-month extension, $769,490.72 for adjustment in cost changes, $519,899.88 in outstanding statutory payments, $62,745.25 variation for extension of the warm-up track

Although the project achieved 108 per cent of its scope, auditors questioned the financial impact of the claims and noted discrepancies between consultant records and Interim Payment Certificates (IPCs).

The refurbishment of the University of Ghana hostels, used as the Games Village, also attracted severe criticism from auditors, who identified an “opportunity cost for scope shrinkage” of $1.717 million.

One of the most contentious claims involved $1.176 million for repainting works. The Audit Service said the “computation of justification for this claim is questionable” because painting had already been captured as a lump sum item in the original contract.

Auditors further expressed scepticism that the entire hostel facilities could have deteriorated within only a few months to justify repainting at such cost.

Additional questionable claims included:

$555,668.01 for extension of time with cost

$219,167.59 for additional canteen works

$888,642.96 for bedsheets, pillows, pedestrian accesses, transportation bay covering and mattress replacements

The Audit Service said it “did not observe details” to assess the reasonableness of some of those additional expenses.

The construction of the access road to the Achimota Cricket Oval also came under heavy scrutiny, with auditors estimating possible savings of GH¢4.376 million had standard Department of Urban Roads (DUR) rates been applied.

The report highlighted major disparities between audited rates and contractor charges by Mawums Limited, including:

GH¢966,537.16 difference in excavation works, GH¢755,824.37 difference for imported fill material, GH¢1.094 million difference in road surfacing, GH¢791,340.20 difference in road pavement works, and GH¢252,189.80 difference in drainage works

Auditors questioned whether swampy conditions claimed around the road project actually existed and noted that some drainage works were “not observed” during inspection.

For the Achimota Cricket Pavilions project, the Audit Service estimated potential savings of GH¢346,793.21 after comparing rates with Architectural and Engineering Services Limited (AESL) benchmarks.

The report also criticised the project’s BoQ structure, describing it as “quite unconventional” with considerable variations in rates for similar works across building units. Auditors added that “several arithmetic errors made assessment and valuation a challenge,” creating “a false sense that saving was minimal.”

In addition, auditors noted that testing costs were lumped together with consultancy fees on multiple projects, yet no supporting test results or data were made available for verification.

Overall, the Audit Service estimated avoidable costs of more than $38.96 million and GH¢6.33 million across reviewed African Games infrastructure projects. 

المصدر: MyJoyOnline (GH)