Ketu Assembly denies allegations of corruption

The Ketu District Assembly has denied engaging in corruption through fraudulent procurement deals for government projects. A source close to the Member of Parliament (MP) of Ketu South, Lieutenant Colonel Charles Agbenazah (rtd) had complained about the alleged corruption to the Ghana News Agency.

The source said while materials including cement, iron rods and boards were procured locally the assembly obtained invoices from a dealer in Ho, who quoted higher prices to cover the purchases. It made reference to 20 million cedis the MP allocated to the Denu Roman Catholic Parish to construct a school block from his share of the District Assemblies' Common Fund.

The source said even though 300 bags of WACEM cement was bought at 28,710 cedis per bag an invoice numbered 0000189 dated April 9,2002 quoted 33,000 cedis and wawa boards bought at 31,000 cedis was said to have been bought at 33,000 cedis.

The source said the assembly had earlier presented an invoice to the MP quoting 36,000 cedis per bag of cement but withdrew it when he protested. "Diamond Cement Limited are dealers in WACEM cement at Aflao at 28,710 cedis per bag. How do you travel from Aflao to Ho to buy that material from a dealer at 33,000 cedis for a project in the Ketu District? The source asked.

The source said 80 pieces each of five-eighth-inch and half-inch and 50 pieces of quarter-inch iron rods bought at Denu for 42,000 cedis; 22,500 cedis and 7,500 cedis were quoted on invoice number 000148 dated 4 April 2002 at a cost of 50,000 cedis; 30,000 cedis and 12,000 cedis each in that order.

It said though the MP's letter dated 21 March authorising that the Assembly's works Superintendent should discuss the details of work with the parish Head, the assembly ignored it and went ahead to procure the materials to the tune of 20,100,000 cedis. Lt-Colonel Agbenazah confirmed the story but refused to comment further.

In response to the allegations the District Chief Executive, Mr Linus Koffie said it was true that cement was selling on the open market at Denu at 30,000 cedis per bag but it was exclusive of transportation cost, handling charges and seven and a half per cent Internal Revenue Service (IRS) withholding tax.

"The transportation cost of cement at the time was 400 cedis and the handling charges for a consignment of 300 bags was 50,000 cedis," he said. "Supply of materials for the Assembly is handled by a committee comprising staff of Public Works Department, District Development Planning Officer, District Co-ordinating Director and the District Chief Executive.

"In April 2002 the Member of Parliament for Ketu South, (Lt) Colonel Kofi Agbenazah (rtd) presented a memo to my office for the procurement of cement, iron rods and wawa boards to the tune of 20 million cedis in respect of a classroom block for Hedzranawo Basic Schools", Mr Koffie said.

"The local suppliers at Denu were approached for invoices, which they did not have. Besides they were not ready to pay for transportation, loading and off-loading and the IRS withholding tax, as the transaction will result in a loss to them.

"Under the circumstances the Assembly sought and obtained invoices from three sources: Sammapco Enterprise Limited, Ho, which quoted a supply price of 33,500 cedis; Numahum Limited, Hohoe quoted 34,000 cedis and Nelson Enterprise, Ho gave a price of 33,000 cedis", the District Chief Executive said.

"Since Nelson Enterprise quoted the lowest price it was given the order with L.P.O. number 470003 dated April 10, 2002 to supply the materials. "After the supply totalling 13,100,000 cedis was delivered, Nelson Enterprise paid a withholding tax of 982,500 cedis to the IRS." The DCE faxed a copy of the receipt to the GNA in Accra.

"Similarly a contract for the supply of 210 pieces of iron rods of various dimensions - five-eighth, half and quarter inch was awarded to Tate Enterprise, Ho at a cost of seven million cedis by virtue of the fact that Tate enterprise had quoted the lowest price.

"Tate Enterprise paid a withholding tax of 525,000 cedis to the State on the transaction," Mr Koffie said. He said it was not true that Lt. Col. Agbenezah was given an invoice, which quoted 36,000 cedis per bag of cement and later withdrawn by the assembly.

He said in an earlier encounter with the MP over these two transactions his attention was drawn to the fact that local suppliers did not pay IRS tax on their transactions and did not, therefore, like doing business with the Assembly.

"It was at this meeting that (Lt.) Col. Agbenazah knew for the first time that IRS tax was no longer five per cent but seven and a half per cent and he claimed that whether local suppliers paid tax or not was not his concern. He was rather concerned in buying at rock bottom prices."

Mr Koffie said Assembly was bent on servitude of probity and accountability and would not lend itself to blackmail and public ridicule because if the transactions were done on the local market the Assembly would have ended up paying more than what it paid to Nelson Enterprise.

"This is because the Assembly will also have paid for the transportation and handling charges. Furthermore, the withholding tax paid to IRS would have been lost to State," the District Chief Executive said.