BOST spent GHS285,412 to buy 18 iPhone 13s for its staff: An example of wasting public funds and poor board governance

BOST a public institution in Ghana spending GHS285,412 to buy 18 iPhone 13s for its staff is an example of wasting public funds. This amounts to $24,000 of public funds.

The actions of the managers and board members is an example of a waste of public funds and poor board governance.

The recent news that the Bulk Oil Storage and Transportation Company (BOST), a Ghanaian public institution, spent GHS285,412 to purchase 18 iPhone 13s for its staff has sparked outrage among many Ghanaians. The phones were bought for board members and general managers.

This means that each of the phones costs the tax paper GHS15,856.222 at a time when the economy is on its knees.

The purchase was single-sourced in 2022, the same year the Bank of Ghana made over GHS60 billion loss.

Per the contract details, the mobile phones were purchased for managers and board members.

BOST entered the contract on May 16th,2022, and the contract was completed on 30th May, 2022.

Below is the full details of the contract: BOST spent GHS285,412 to buy 18 iPhone 13s for its staff

Wasting of public funds

This amounts to a waste of public funds, and the money could have been better spent on other things, such as improving the company’s infrastructure or providing better services to its customers.

Mobile phones are personal assets that people in public service should be able to buy for themselves to save the public from such wasteful actions.

There are a number of reasons why BOST’s spending on iPhone 13s can be considered a waste of public funds.

First, the iPhone 13 is a luxury item, and it is not essential for BOST employees to perform their jobs.

Also, the cost of the iPhone 13 is exorbitant, especially in Ghana, where the average monthly salary is around GHS1,000. Third, BOST could have purchased less expensive smartphones that would have met the needs of its employees just as well.

In addition, BOST is a public institution, and therefore, its spending is subject to public scrutiny.

The company has a responsibility to use its funds wisely and to ensure that taxpayers are getting value for their money.

By spending GHS285,412 on iPhone 13s, BOST has failed to live up to this responsibility.

There are a number of other ways that BOST could have used this money more effectively.

For example, the company could have used the money to improve its infrastructure, such as its storage facilities and pipelines.

This would have helped to improve the efficiency of the company’s operations and to reduce costs.

BOST could have also used the money to provide better services to its customers.

For example, the company could have used the money to improve its customer service system or to develop new products and services.

This would have helped to attract new customers and to increase the company’s revenue.

In conclusion, BOST’s spending on iPhone 13s is a clear example of wasting public funds.

The company could have used this money more effectively to improve its operations, provide better services to its customers, or invest in its future.

Poor Board Governance Issues Arsing

Board good governance violations and issues in the case of BOST spending GHS285,412 to buy 18 iPhone 13s for its staff, including

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There are a number of board good governance violations and issues in the case of BOST spending GHS285,412 to buy 18 iPhone 13s for its staff, including:

• Conflict of interest: The board members and general managers who approved the purchase of the iPhone 13s may have a conflict of interest, as they are the direct beneficiaries of the purchase.
• Waste of public funds: The purchase of iPhone 13s is a frivolous expense that is not essential for BOST employees to perform their jobs. The money could have been better spent on other things, such as improving the company’s infrastructure or providing better services to its customers.
• Lack of transparency: The board of directors did not disclose the purchase of the iPhone 13s to the public until after it had already been made. This lack of transparency raises concerns about the board’s accountability and its commitment to good governance.
• Abuse of power: The board of directors may have abused its power by approving the purchase of the iPhone 13s without proper justification. The board has a responsibility to use its power responsibly and in the best interests of the company and its shareholders.

In addition to these specific violations and issues, the purchase of iPhone 13s also raises broader concerns about the board’s commitment to good governance. A well-governed board would have carefully considered the costs and benefits of the purchase and would have ensured that it was in the best interests of the company. The board would also have been transparent about the purchase and would have held itself accountable to the public.

By purchasing iPhone 13s for its staff and board members, the BOST board has failed to meet the standards of good governance. The board’s actions have damaged the company’s reputation and have eroded public trust.

The least the managers and board members can do for themselves if they have any ethical principles left in them is to pay for the mobile phones public funds was used to pay for, resign from their posts and write individual anc collective lettes of pology for failing to uphold intergrity and good governance practices as board members and the board.

Source: Wisdom Hammond