Mounting Debts crippling Yilo Krobo District Assembly

Somanya, July 21, GNA - Total debt of the Yilo Krobo District Assembly stood at 869,949.13 Ghana Cedis when the present Administration assumed office last January, the District Chief Executive (DCE), Mr Andrews Sodah, has disclosed.

Addressing the seventh ordinary meeting of the fourth session of the assembly at Somanya on Tuesday, Mr Sodah mentioned contracts/utilities, Land compensation, Counterpart contributions, and District Water and Sanitation Team (DWST) incentives, as areas in which the debts were contracted.

He said contracts that were not properly awarded but were executed were excluded from the debt list, adding that his office was investigating those contracts and would duly inform the house about the outcome.

Mr Sodah said the debt situation was worsened by the numerous court cases filed by contractors against the assembly. He said the court rulings which were mostly in favour of the contractors came with costs, interests and variations, adding that in most cases the assembly ended up paying more than double the amount outstanding.

"For instance when the court ruled in favour of Messrs Soadjei Construction and General Works late last year, an additional sum of 83,767.45 Ghana Cedis representing interest and variations, was awarded by the court to be paid together with the outstanding amount of 27,806.00 Ghana Cedis". "In the case pf Messrs Mark Adjei Limited, cost and interest to the tune of 11, 834.61 Ghana Cedis are to be paid in addition to the outstanding amount of 10,834.61 Ghana Cedis". Mr Sodah urged the house to take a serious look at the issues and freeze all existing contracts awarded by the assembly till the situation improved.

He called for a meeting with all contractors, so that those who would be willing to continue to work with the assembly would be made to sign an undertaking. "Conditions in the undertaking should include the fact that they would neither take variation nor sue the assembly", he said. The DCE said a check list of Casual Workers showed that the assembly had 75 of them as at April this year, but regretted that some of them continued taking salaries even though they were not coming to work. He said it was also found out that most of the workers were without formal appointment letters, and urged the assembly members to take a firm decision on those findings, which should include recovering the salaries paid to ghost workers. Mr Samuel Ofosu-Ampofo, Eastern Regional Minister, expressed worry about the numerous court cases the assembly was facing and appealed to the courts to exercise restraint while steps were being taken to settle the debts. 21 July 09