The Commission on Human Rights and Administrative Justice (CHRAJ) has called for the Public Procurement Authority (PPA) to annul the controversial contract between the National Cathedral project and Ribade Company Ltd.
This recommendation, stemming from a comprehensive investigation, raises critical concerns about procurement compliance and governance in the management of high-profile national projects.
In its report dated November 22, 2024, CHRAJ highlighted that the contract, valued at GHS225,962,500.00 as of May 2022, was “void ab initio” due to breaches of Ghana’s Procurement Act, Act 663 as amended by Act 914. Signed by CHRAJ Commissioner Joseph Whittal, the report emphasizes the PPA’s authority to cancel the contract under procurement regulations.
“The Board of the Public Procurement Authority should intervene to cancel the contract for the construction of the National Cathedral between the National Cathedral and Ribade Company as it has the power to do so under the Procurement Act,” the report stated.
CHRAJ’s findings underline the importance of sound governance in public-private partnerships (PPPs). The report identified procedural violations in the awarding of the construction contract, which raises concerns not only about legal compliance but also about the project’s ability to attract and sustain investor confidence.
In an era where business and governance are closely intertwined, these procurement breaches have potential ripple effects on Ghana’s reputation as a stable destination for investment. According to the Commission, the failure to adhere to mandatory procurement processes risks undermining public trust and exposing the nation to reputational damage on the international stage.
The report also advocates for a forensic audit by the Auditor-General to ensure accountability for the GHS225,962,500.00 spent on the project to date. These funds, designated as “seed money,” have been allocated to activities including site preparation, contractor mobilization, U.S. fundraising, and consultancy services. Yet, with the project stalled, CHRAJ questions whether these expenditures represent value for money.
“Public interest dictates that there ought to be value for money in project execution. Unfortunately, this Commission has no expertise to determine whether there has been value for money considering the project remains in the same state,” the report stated.
The CHRAJ recommendation to annul the contract with Ribade Company Ltd could have significant implications for the firm’s operations in Ghana and beyond. The report warns that breaches of procurement laws in this high-profile project could attract “international embarrassment” for Ghana, given Ribade’s international status and the global visibility of the National Cathedral project.
For Ribade, the findings may pose reputational challenges, potentially influencing future business opportunities within Ghana and other markets.
The Board of Trustees of the National Cathedral has also come under scrutiny, with CHRAJ recommending further investigation and potential prosecution for their role in awarding the contract in breach of procurement laws. This development points to the critical need for corporate governance frameworks in PPPs, where accountability and transparency are essential for success.
CHRAJ’s report serves as a cautionary tale for businesses and stakeholders engaged in national projects. Beyond legal compliance, the findings underscore the importance of robust governance, adherence to procurement laws, and a focus on transparency to protect investments and maintain public trust.
