$100,000 Spent On Vice President's House

An audit report has revealed that the contract sum for the renovation of the official residence of Vice president Alhaji Aliu Mahama went up from about $40,600 to $107,410.

The about $60,000 increase in the contracted awarded to Messrs Fulki Limited was without authorization and approval, contrary to the directive on execution of contracts, which stipulates that, any contract sum with variation exceeding 25% of the original sum should be re-tendered for award.

AESL, the consultants for the project in explaining their action, blamed it on the limited time at their disposal. The audit report concluded that the consultant contributed to the offence by granting permission for the additional works to be carried out.

The AESL consultants are to he held responsible for the over 500 million cedis, and the lapse, unless approval is sought for the additional work.

The audit report dated 8th May 2002 and copied to the Works and housing Minister, said the lack of co-ordination among key players at the ministry, inadequate controls, monitoring and supervision resulted in the loss of $72,127 to the state.

$20,315 spent on renovating 4 unauthorized bungalows, an amount surcharged to the former Works and Housing Minister Kwamena Bartels and the Chief Technical Adviser- housing for payment.

The auditor general is basing its argument on the provisions of Article 187 clause 7 (b) of the constitutions which enjoins him among others to disallow any item of expenditure, which is contrary to law and surcharge the amount of any loss or deficiency, on any person, whose negligence or misconduct caused the loss.

According to the report, the Chief Technical Adviser explained that the addition of the four bungalows was an error and occurred because of the rush that characterized the award and execution of the contract.

It was subsequently been explained further that the market value of the unauthorized bungalows renovated will go up.

"The CTA/Housing reiterated that the renovated bungalows would enhance the value for the plots for re-offer. Consequently, Bungalow plot No. 21, 2nd Circular road- Cantonments had now been offered for sale to a potential developer for a sum of ($200,000) 1.6 billion cedis."

The audit report also revealed that some contractors were paid mobilization advance although they had no formal agreement or contract for the execution of jobs. In other cases, purchases were made without order.

The report said in paragraph 84 that: " We observed that the ministry of works and housing ordered for the supply of $100,912 worth of furniture to bungalow numbers 1,2,3 and 4 New Ringway Estates and Private Sector Development Ministry without an order from Stepman Furniture center."

The amount was also paid to the company even before the items were received. The auditors indicated that their attempts to inspect the furniture have proved futile.