The Ministry of Health has issued a press statement in response to concerns raised by the Member of Parliament for North Tongu, Hon. Samuel Okudzeto Ablakwa, regarding a service contract between the Ministry of Special Development Initiatives and Service Ghana Auto Group Limited.
The concerns, highlighted in various media reports, pertain to the maintenance and after-sales service agreement for 307 Mercedes Benz Sprinter 315 CDI ambulances.
The Ministry of Health noted that on September 10, 2020, the Ministry of Special Development Initiatives signed a contract with Service Auto Group Ghana Limited. This contract was for the provision of after-sales service and maintenance of the ambulances, essential for the National Ambulance Service.
“The contract stipulated that the supplier shall provide the client with a projected budget for requisite spare parts and lubricants to ensure the smooth servicing and maintenance of the fleet.”
The Ministry of Health
Since the inception of the contract, a portion of the annual budget allocation from the Ministry of Special Development Initiatives has been used to support the National Ambulance Service and fund the maintenance agreement.
However, following the dissolution of the Ministry of Special Development Initiatives, the Ministry of Health revealed that the responsibility for executing the contract was transferred to the Special Initiatives Development Secretariat.
“On March 10, 2023, the Office of the Chief of Staff requested the Ministry of Health to explore ways to support the National Ambulance Service in maintaining the fleet of ambulances due to Parliament’s refusal to approve the budget estimates of the Special Initiatives Development Secretariat for the 2023 fiscal year.”
The Ministry of Health
Consequently, the Ministry of Health indicate that it sought financial support from the Ministry of Finance. The request involved establishing letters of credit amounting to $34,904,505 for the procurement of spare parts for the 307 ambulances.
In response, the Ministry of Finance indicated it could only fund up to $10 million of the requested amount. It recommended that the Ministry of Health explore alternative financing options, including seeking support from the National Health Insurance Authority (NHIA).
Clarification on Misreported Payments
The NHIA, in its correspondence with the Ministry of Health and the Ministry of Finance, stated that it was unable to fund the procurement cost of the spare parts. This decision was based on the fact that the expense was not included in the allocation formula approved by Parliament. The NHIA’s 10% allocation to the Ministry of Health could not cover this unbudgeted expenditure.
Addressing the misinformation circulating in the public domain, the Ministry of Health clarified, “The Service Provider, Ghana Auto Group Limited, has not been paid an amount of $34.9 million as widely reported.”
This clarification is crucial in ensuring transparency and accuracy in the dissemination of information to the public.
The Ministry of Health reaffirmed its commitment to ensuring a sustainable maintenance regime for all fleets procured for the National Ambulance Service. This commitment is vital for providing reliable, efficient, and safe emergency medical services to the public.
The Ministry emphasized that all documentation related to this transaction is a matter of public record and can be accessed by interested parties.
The Ministry of Health expressed its readiness to support any efforts aimed at bringing further clarity to this issue in the interest of the public. The Ministry remains dedicated to upholding transparency and accountability in all its operations and ensuring the effective management of resources for the benefit of the nation’s healthcare system.
The statement serves as a reassurance to the public that the Ministry of Health is taking all necessary steps to address the concerns raised and to maintain the integrity and efficiency of the National Ambulance Service.
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