Thursday, 17 November 2016

‘Mahama Spends GHC448M On Shoddy Contracts’

New Patriotic Party (NPP) has accused President John Dramani Mahama of using state funds to pay Zoomlion Ghana Limited for no work done.The NPP alleged that the money which was Gh¢448,150,762 was used as management service fees without any legal document supporting it.

According to the NPP, cabinet gave go-ahead for the use of 10 per cent of the District Assembly’s Common Fund allocated to the Youth Employment Agency (YEA) for the illegal payment to Zoomlion.

NPP noted however, that the public was told after a ministerial committee report on Youth Employment and Entrepreneurial Development Agency (GYEEDA) in 2013 that the contract had been terminated.

“However, this pre-election decision to pay off GH¢448 million to the company demonstrates that the associated presidential directives were lies. Zoomlion, on the average, earns a management fee of GH¢4,979.45 per employee per year.

“This means that each worker has to earn GH¢414.95 in order to match the monthly management fee earned by Zoomlion for managing each worker! In actual fact most of these workers earn a meagre amount, between GH¢200-300 per head per month,” the NPP revealed.

At a press conference yesterday in Accra, the NPP stated that a whopping sum of GH¢62 million of this illegal amount was paid by the Mahama-led National Democratic Congress (NDC) to the company.

Addressing journalists on the theme: “Stop Mahama Draining the Coffers In Another Election Year,” the party’s Policy Advisor, Boakye Kyeremateng Agyarko, said: “This amount is meant to pay for 45,000 workers who are actually on the payroll of the various district assemblies. So, the assemblies are responsible for paying the wages of the 45,000 and not the service provider.

"…This act of corruption is a matter for which Ghanaians must demand answers.”

According to the NPP, the board of the Youth Employment Agency (YEA) was asked to take all necessary steps to ratify the sanitation contract for 2013 to 2015.

Mr. Agyarko disclosed that “this illegal payment for non-existent contract is related to a previous scheme dating back to 2012, the same year that some $2billion of unbudgeted funds were spent in a reckless and corrupt way to fund John Mahama’s election bid.”

He added: “The Auditor General’s report on the infamous Ghana Youth Employment and Entrepreneurial Development Agency (GYEEDA) highlighted the misappropriation of public funds, fraudulent transfers and illegal payments to various entities linked to friends and families of President John Mahama.”

Mr. Agyarko further disclosed that on April 12, 2013 a five-member Impact Assessment Committee was set up by the then Minister for Youth & Sports, Elvis Afriyie Ankrah, to investigate the GYEEDA scandal.

According to him, the Committee’s report, which was submitted on July 16, 2013 recommended that the specific contract involving Zoomlion and Better Ghana Services be referred to the Attorney-General for advice for prosecution.

Mr. Agyarko noted that a Value-for-Money Committee was also formed under the headship of Kobby Acheampong who recommended the cancellation of the GYEEDA modules, including Zoomlion’s sanitation modules.

He mentioned that in a memorandum which Elvis Afriyie-Ankrah sent to Cabinet in May this year, it recommended the cancellation of modules after having properly scrutinised the activities of the modules and engaged the executives of the affected modules.

“I carried out the recommendation to cancel the affected modules exactly two days after the Value-for-Money Committee’s recommendation to do so was brought to my attention,” Afriyie Ankrah was reported to have said.

The NPP revealed that it has in its possession a copy of the letter dated November 29, 2013, signed by Elvis Afriyie-Ankrah to the Chief Executive Officer (CEO) of Zoomlion, and copied to the Chief of Staff, Attorney-General and Kobby Acheampong who recommended the suspension of payment of contracts on ICT and Sanitation modules.

Mr. Agyarko noted that in May 2016 a memo to Cabinet, revealed that Elvis Afriyie-Ankrah made it clear that the GH¢448m which was paid to Zoomlion was illegal.

“In fact, the Minister said in the memo that the Executive Chairman of Zoomlion Ltd admitted in a meeting with the Committee that, Zoomlion’s two-year renewable contract, which began in 2006, was not renewed in 2013.

He confirmed to the meeting that payment had not been made for services rendered from 2013 to 2015 (i.e., the period for which a binding contract did not exist between the company and the State,)” Mr. Agyarko noted.
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