Government has canceled a $74m contract with Jospong Group of companies to provide waste bins, a contract JoyNews investigation found to have been highly inflated.
The cancellation of the contract which translates to ¢362m follows JoyNews investigations in 2017 by award-winning journalist Manasseh Azure Awuni.
JoyNews found the procurement of one million waste bins and disposable bin liners was inflated by at least ¢148 million.
The contract awarded was in November 2016 by the Ministry of Local Government and Rural Development. The order to award the contract was given by the Office of the President in a letter signed by then Chief of Staff, Julius Debrah.
According to the contract, the cost of the one million waste bins was $60 million while the cost of the bin liners is over $14million. These amounts do not include Value Added Tax.
The contract was awarded through sole sourcing, with approval from the Public Procurement Authority (PPA).
A subsidiary of the Jospong Group which won one of the contracts sells a waste bin of the size quoted in the contract for 150cedis.
That’s the price for the public. But it was sold to government for ¢258 or $60 with the exchange rate of $1 to ¢4.3 at the time the contract was signed.
Also, a piece of disposable bin liners from Universal Plastic Product and Recycling Ltd costs ¢0.98, less than one cedi.
This means the 900,000 pieces of bin liners will cost less than ¢1million.
But the contract quotes the price of a piece of bin liner at $15.6 or ¢70. This means the bin liners which should cost less than ¢1million or $200,000 ended up costing ¢63 million ($14,040,000).
Together with the waste bins, this contract appears to have been inflated by over ¢148 million.
Even worse, Joy News also was found the Local Government ministry had some 150,000 waste bins for District Assemblies across the country, which it has been unable to distribute.
Photo: Some of the undistributed waste bins going waste
The cancellation was contained in a letter from the Local Government ministry communicated to the businessman.
”I have been directed to invite your attention to the fact that the contracts have lapsed on account of non-performance by the contracting companies”.
The contract had been a subject of investigation by the Criminal Invesitgations Department of the Ghana Police Service. A Cabinet committee chaired by the Senior minister Yaw Osaafo Mafo was also set up to review the contract.
No monies have been paid to the companies awarded the contract.
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