The Minister for Water Resource Works and Housing, Enoch Teye Mensah, has denied receipt of any proposal from the Ghana Real Estates Developers Association (GREDA). This was in reaction to comments by the Executive Secretary of the association, Samuel Amegayibor, that government has failed to respond to proposals on the affordable housing projects.

The controversial housing issue came up again after the Government of Ghana and the Guma Group of South Africa, signed a Memorandum of Understanding (MoU) last Friday for the company to build 500 housing units for the police and military personnel before the end of the year.

Explaining the terms of the MoU, the minister told host of BreakFast XYZ, Emefa Apawu, that the ministry inaugurated a committee, which was widely publicized, to take proposals submitted by companies from within and outside the county.

Hon. E.T. Mensah explained that the committee was made up of experts who work openly to receive application from qualified companies and set out criteria for building the houses.

He expressed dismay at comments that government was favoring foreign companies to the detriment of local developers, saying “I am dismayed and appalled by the statement that has been issued by the secretary of [GREDA]. It is quite clear that they have not been following events. First of all, let me say that government has not given anything that belongs to STX to Guma Group.”

“Guma Group, an African company also applied and we took them through the rigorous process. I have been a shadow member of the committee, watching with an eagle eye as to what to do. No favoritism.”

He stressed that “it is absolutely not true that the doors have been shut to GREDA. They said they’ve sent a petition to government. I am telling you that I have not seen such [a] proposal.”

He said the government has not signed any contract with the Guma Group as is being speculated, and that it is an MoU which requires that the Guma Group uses modern technology to complete 500 housing units within or before the year comes to a close, adding there are still over 10, 000 housing units following the collapse of the STX housing project.

He said the project has been divided into “four major lots” which will be given out based on the companies that meet the criteria set by the committee of experts.

“We have said that, this time, we are not going to tie this whole project around one company so that when they cough, we will catch cold.”

He however admitted that individual companies which belong to GREDA have sent proposals to the committee but he has not sighted any from GREDA as an association.

The minister said government has learnt its lesson from the collapse of the STX deal and will therefore keep an “eagle eye on every contract that is given out.” He said if Guma fails within ten days to show that they have the financial wherewithal to commence the project, they will call the MoU off.

But in a rebuttal, the Executive Secretary of GREDA, Samuel Amegayibor said six months into the current administration, officials of GREDA met with the Vice President John Mahama where they presented a mission statement about a partnership to build the houses.

He said in January, government met with GREDA at the Ministry of Finance with Mr. P.V. Obeng and Fifi Kwettey in attendance. GREDA was asked to present the proposal to make up for the deficiencies of the STX deal; a request they obliged.

Mr Amegayibor explained that following that meeting, GREDA submitted a proposal on the 16th of February and have since not received a response from the government, insisting “they cannot say GREDA failed to submit a proposal. They failed to acknowledge our proposal.”

“If government wants to do affordable housing, I believe that GREDA is the most appropriate quarters to contact because if you are able to get GREDA in, you will be able to get over 150 companies already into the project.”

Even though he maintained that the association is disappointed at government’s decision to give part of the deal to Guma Group, they are willing to resubmit their proposals to the ministry.