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General News of Tuesday, 15 March 2016

Source: citifmonline.com

Cost of electrification project not inflated - Jinapor

Government has denied media reports that it has signed a contract with Ghanaian company Smartty’s Production for the execution of a national electrification project.

The Minority in Parliament had prior to this denial alleged that Smarttys, which is a local rep for the Chinese Contractors, may have been responsible for overpricing the deal by about $9 million, considering their past record.

Smarttys is named as the local representatives of the Chinese company, China Hunan Construction Engineering Group, which would be undertaking the project.

For their involvement in the overpriced bus branding saga, many have questioned the appropriateness of government sitting aloof and allowing them to be associated with such a huge contract worth $92m.

But speaking to Citi News, Deputy Power Minister, John Jinapor, noted that government is not dealing with Smarrtys as a contractor in this project but only as a local representative of the Chinese company.

The government of Ghana has no contract with Smayttys

Unlike the earlier deal about the branding, the government of Ghana has no contract with Smarttys.

The government of Ghana has a contract with Hunan construction and Hunan construction is at liberty to engage any other local counterpart, whether for PR purposes or any other purpose.”

He argued that the most important thing is that government has to ensure that there was value for money and also “ensure that the contract fits within our overall objective as a nation and also ensure that the taxpayer’s money is not shortchanged.”