The Foreign Affairs Ministry has revealed that a project that was initially supposed to cost government GH¢1,435,728.99 was done at GH¢7,967,886.57 due to the ill health of the contractor who was awarded the contract and could not execute it on time.
The contract for the rehabilitation of Adu Lodge Guest House was awarded to International Development Resources on March 15, 2007, but according to the acting Chief Director of the Ministry, Ambassador Ramses Joseph Cleland, the project came to a halt a year later due to the ill health of the contractor.
Appearing before the Public Accounts Committee (PAC) today January 20, the Ministry disclosed that the project was revisited in March 2019 and upon the request of the consultant, was re-valued to GH¢7,967,886.57 for the same contractor to execute.
Report from the Auditor General noted that, as of June 2019, a total of GH¢7,741,501.60 (representing 90% of the contract sum) had already been paid.
The project, according to the Ministry, has finally been completed and handed over to the Ministry, after 13 years of delay.
Unsatisfied with the explanation given by the Ministry, the committee queried whether the terms of the contract allowed for the inability of the contractor to execute the project in due course, to come at a cost to the state. The Ministry in response indicated that they were unable to speak to that except the estate officer, who was not present at the committee sitting.
The committee has therefore directed the Ministry to furnish the Public Accounts Committee with the contract and all necessary documents for a determination on the matter in its report.
21 missions Swallow $2.8m, 1.79m Euros As Rent
The Public Accounts Committee of Parliament further raised concerns about the use of an amount of US$2.8 million as rent on some Ghana missions abroad.
Another €1.79 million has also been expended on the payment of rent for home-based staff of 21 missions by the Ministry of Foreign Affairs and Regional Integration.
The Auditor-General in its 2020 report described the payment of these rents as uneconomic and recommended the use of mortgage systems to curtail the situation of exorbitant rents in the country’s missions abroad.
Mr Ramses Joseph Cleland, noted that the proposed mortgage system of accommodation for missions has been a challenge. He said in respect of missions and properties abroad, many properties are situated in prime areas of the host country, making them expensive to maintain.
The acting Chief Director stated that with the Societe Generale loan, the ministry has started acquiring its own properties to serve as missions abroad.
“The government’s policy is to acquire properties for the missions, residency and chancery but the reality on the ground is that it is not easy for Foreign Missions to get mortgages in these foreign countries. So far we haven’t succeeded. We are exploring a whole range of avenues to try and raise the needed funds.
“We have made some progress, and we are hopeful that we will get there.”
MOFA
More To Come
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