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Business News of Wednesday, 20 March 2013

Source: B&FT

NGO questions gov’t contract sums

Global Media Foundation (GLOMEF), a Sunyani-based anti-corruption advocacy organisation, has questioned the rudiments and basis that consultants and other stakeholders use to arrive at contract sums of some Government projects, especially at Metropolitan, Municipal and District Assemblies (MMDAs) level.

They say Government contract sums are mind-boggling and astonishing -- and therefore call for thorough probing to ensure judicious use of the public purse.

According to GLOMEF, the valuation of some Government projects is tantamount to abuse of public funds as they are mostly over-valued -- thereby denying taxpayer the effectiveness and full benefit of their contributions.

In a statement signed by the CEO of GLOMEF, Mr. Raphael Godlove Ahenu Jr., and made available to the Business and Financial Times, the Foundation is raising alarm over the issue.

“The construction of a three-bedroom semi-detached senior staff quarters at Odumase by the Sunyani West District Assembly is valued at GH¢109,941.49. The project, which was executed by M/s Tender Crown Construction Limited, started in November 2008 and was completed in 2011 with an outstanding debt of GH¢51,596.79.

“Four bedrooms and the outhouse furnishing of the DCE’s bungalow is estimated at GH¢129,924.51. The project, which was awarded on contract in October 2008 to M/s Djeabour Commercial Enterprise, is still under construction. The Assembly has so far paid GH¢52,112.08 with an outstanding sum of GH¢77, 812.43”.

The statement referred to the above information as details of some Government contracts financed by the District Assemblies Common Fund.

It revealed further that the Sunyani West District Assembly awarded the construction of a three-bedroom semi-detached staff quarters on contract at the cost of GH¢133, 854.47 in November, 2009. The Assembly has settled GH¢45,000 out of the contract sum.

“In September 2011, the same Assembly agreed to GH¢117,299 and GH¢122, 375 as the contract sums for the construction of Community Durbar Grounds at Kwatire and Adantia respectively. The two projects were awarded to M/S Andy-Vero Enterprise and M/s Monsie Construction Limited as contractors. Out of the amounts, GH¢46, 226 and GH¢64,662.04 respectively have been paid to the contractors.”

GLOMEF observed in the statement that the ill-advised mechanisms used in arriving at contract sums must be of great concern to all Ghanaians, adding that pragmatic measures should be put in place to check the Assemblies to help streamline the use of public funds for projects.

The Foundation consequently advocated the formation of Metropolitan, Municipal and District (MMDAs) Public Accounts Committee chaired by an independent person/body. This, he maintained, will help scrutinise all Assembly contract sums.