Fraud Galore

INCREDIBLE DISSIPATION OF taxpayers’ resources is what best sums up the activities of the Tema Municipal Assembly (TMA) under the management of its Metropolitan Chief Executive, Mr. Samuel Ashong Narh, as captured by the SFO in a report available to this paper.

The report, which was sent as a memo by the Zonal Head of the Greater Accra Zone of the SFO to the Acting Director of the SFO on March 14 this year is titled “Allegations of Contract Fraud Against Tema Municipal Assembly (TMA)”. It indicts the TMA, its Chief Executive, Co-ordinating Director and Finance Officer.

The report noted serious cases of fraud, impropriety and disregard for laid-down rules and procedures in the award of the over ?1 billion fumigation contract works at the Kpone Landfill site, Re-evaluation of property rates within the Tema Municipality and computerisation of revenue collection.

The report noted that the fumigation contract was awarded to Victombet Enterprise of Accra on November 24, 2001 without adherence to laid-down procedures and by a directive circular signed by Alhaji M. J. Hussein, Municipal Coordinating Director of the TMA.

The fumigation contract did not go on tender. It also did not pass through the Municipal Tender Board contrary to the Local Government (District Tender Board Establishment) Regulations 1995 LI.1606 according to the SFO.

Furthermore, it violated guidelines to district assemblies on the utilisation of the District Assemblies Common Fund, the report noted.

The fumigation works was contracted for a year at the cost of ?90 million for each spray every fortnight – bringing the total to billions of cedis.

Strangely, the contract, which was awarded in November 2001, was based on an alleged report presented to the Tender Board on May 13, 2002 - more than a year after the contract itself was awarded to Victombet Enterprise.

“…It does not appeal to common sense that a contract awarded in November, 2001 was based on an alleged report presented to the Tender Board on 13th May 2002”, the SFO noted.

More scandalous was the revelation that the CEO and colleagues who awarded the contract were aware that fumigation was not a solution to the Landfill problem facing Kpone. The TMA had itself begun steps to abandon the dumpsite before the fumigation contract was awarded.

After the contract was awarded, the Municipal Tender Board held a meeting a year after the contract was awarded (May 13, 2002) to ratify the contract, stated the SFO, noting that power was not vested in the Board to do that.

The SFO said at the said meeting, Mr. S. T. Abladey, Acting Head of Waste Management Department, who was alleged to have presented a report on spraying of waste disposal at the Kpong dumpsite that was used to award the contract, later told the SFO he never attended any such meeting

Hear the SFO: “Note that, if the award came out of urgency, Seven (7) clear months was enough to ratify the contract at the General Assembly, the appropriate body vested with that power. We are also informed by the awarding body that the contractor had to display his competence by a way of “spraying-demonstration” for a period of two (2) months before he was awarded the contract. Again we think that the two (2) months demonstration period was enough to call for Tender Board Meeting leading to the final award of the contract, which involves such a huge sum of money at the Municipal Assembly level.”

According to the SFO, the scandalous contract had the blessing of the Chief Executive, Co-ordinating Director and Finance Officer.

“This is a clear issue of indictment; and has paved the way for more similar fraud to be perpetuated against the model Assembly of TMA”, the report noted.

Surprisingly, the contract was not even captured in both the TMA’s annual and mid-year review budget of 2001. (More next week)