Gov’t rejected payment claims of over GH¢40 million to Zoomlion in 2017

Tracking government expenditure

iWatch Africa can confirm that the Ministry of Finance rejected payment claims of GH¢40,425,000 made by the Ministry of Local Government & Rural Development (MLGRD) on behalf of M/S Zoomlion Limited in 2017.

The MLGRD on 7th June, 2012 signed a service agreement between the Republic of Ghana and M/S Zoomlion Limited for weekly disinfestation services at Bui and Bole catchment areas to control insects and to allow the construction of then Bui dam.

Our checks however revealed that there was no specific contract sum mentioned in the agreement between the parties contributing to the decision by the Ministry of Finance to reject the payment claims.

The Auditor General has also indicated that a letter dated 22nd November, 2016 and referenced B.II4/MLGRD/SAN/2016/02 directed that Bui Power Authority, Ministry of Power or MLGRD should pay the cost from the Internally Generated Fund.

The Finance Ministry has however requested the MLGRD to make adequate provision for the claims in their 2018-2019 budgets despite the fact that there was no contract sum in the original agreement.

Jospong Group, owners of waste management firm, Zoomlion and other subsidiaries, has in the past been accused of overpricing contract figures.

A report by Joy FM in 2017 indicated that Universal Plastic Product and Recycling Ltd, a subsidiary of the Jospong Group of Companies, and four other firms all belonging to the Jospong group, had overpriced a contract to supply 1 million waste bins and 900,000 packs of disposable bin liners to the country by about Ghc130 million.

The report said the company sold each of the 240litre bin to the state at GH¢258 when an invoice from the same company showed that the actual price was GH¢135.

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The Jospong Group however rejected the claims and described the report as malicious and calculated to tarnish the hard-won reputation of the company.

Report by:

Gideon Sarpong | Policy Analyst | iWatch Africa

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Gideon Sarpong

2017 Thomson Reuters Foundation Fellow: Gideon Sarpong (G. K. Sarpong) is a media practitioner with over six years of experience in content development and management, data and investigative journalism, policy analysis, production and e-commerce strategizing. Gideon is currently Director of Policy and News Content at iWatch Africa. He is also the Brands and Communication Manager for Football 360, Kwese SportsXtra, on KFS and Celebrity Fanzone, The Tonight Show, and After Hours. Gideon is an e-commerce consultant for Department of Geography & Regional Planning and Department of Religion & Human Values at the University of Cape Coast. He is a columnist for several local and international news portals. Gideon holds a Post Graduate Diploma in Policy Journalism and is committed to promoting transparency and accountability using investigative & data journalism. Gideon is an author with over eight publications; a fellow of the Young African Leadership Initiative (YALI), Thomson Reuters Foundation (Wealth of Nations Program) and Bloomberg Data for Health Program.

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