Mr. Julius Opuni, a Chartered Accountant has been appointed as Chairman of a Senior High School governing body on a voluntary basis. He has also been appointed to the Finance and Buildings Committee that awards building contracts. The membership of this committee includes a number of individuals with private sector experience and local businessmen. One is a local contractor (Mrs. Esther Asamoah-Frimpong) who has been a governing member for a number of years and is well respected by the governing body.
At his first meeting, the committee considers a report from the Head Teacher about the condition of the school hall and sets out a scheme of remedial building works with estimated costs. After discussion of the scheme, and recognising the need to move quickly if the work is to be carried out during the first quarter, Esther offers to do the work at a competitive price and the other governing members on the committee are minded to accept the offer.
However, although the offer has been made, the governors are not considering the use of a formal tender process or making any reference to governance arrangements that could exist for tenders. Julius is concerned that the committee is unable to demonstrate reasonable decision making, stewardship of public money and its subsequent reputational risk.
Required:
Advise Julius on THREE (3) courses of action he should take in order to act ethically in awarding the contract. (6 marks)
View Solution
- Mr. Julius Opuni should make his concerns known and explain to the committee members why he feels acceptance of the builder governor’s offer could be inappropriate.
- He should explain that award of such a contract should be subject to a proper tendering evaluation process. This would ensure that any tenders awarded would be subject to a proper process with integrity.
- He should also explain that the committee needs to demonstrate a proper decision-making process that would support any contracts awarded. This would also protect the governors from any potential reputational risk that the school did not properly award contracts, especially as it is funded by public money.