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Ablakwa Uncovers $102 Million Inflation In DRIP Contract

Lilian Ahedorby Lilian Ahedor
September 25, 2024
Reading Time: 4 mins read
District-Road-Improvement-Project-DRIP

District-Road-Improvement-Project-DRIP

Hon. Samuel Okudzeto Ablakwa, MP for North Tongu, has revealed that the District Road Improvement Programme (DRIP) contract was unconscionably inflated by over US$102 million (GH₵1.6 billion).

Hon. Ablakwa highlighted that ongoing special parliamentary oversight of the Akufo-Addo/Bawumia government’s DRIP has unveiled alarming evidence of excessive inflationary pricing that threatens the nation.

He presented evidence that the previously unknown US$178.7 million (GH₵2.8 billion) DRIP contract was awarded through a non-competitive, opaque sweetheart deal to J.A. Plantpool of the Zoomlion conglomerate.

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“Vice President Bawumia was right when he consistently stated in 2016 and 2017 that sole-sourcing and single-sourcing leads to overpriced contracts and that they do not guarantee value for money.  Unfortunately, despite pledging to end the canker, the ever-deceptive Vice President Bawumia soon forgot his principled position when his brother, Abraham Bawumia was awarded multiple overpriced single-sourced road contracts”.

“It has now been confirmed beyond any scintilla of doubt that all the DRIP equipment which Bawumia touts as his singular achievement have been wickedly and unpatriotically inflated by over US$102million (GHS1.6billion)”.

Hon. Samuel Okudzeto Ablakwa

Accordingly, Ablakwa argued that Ghana should only be paying US$76.6 million for the DRIP equipment, rather than the inflated US$178.7 million.

He emphasized that an analysis of the actual market values for the same specifications of DRIP equipment directly from the manufacturers uncovered shocking and scandalous findings.

The MP explained that most of the equipment was procured from the Chinese manufacturer LiuGong, with J.A. Plantpool acting as an intermediary.

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Additionally, he stated that some road construction equipment was sourced from Shaanxi Automobile Holding Group, the makers of Shacman, again using J.A. Plantpool as the intermediary.

Ablakwa also noted that LiuGong’s website proudly highlights their successful delivery of the DRIP equipment to President Nana Addo Dankwa Akufo-Addo.

According to him, the site further confirms the participation of their Chairman & CEO Zeng Guang’an, and Senior Vice President Luo Guobing at the DRIP commissioning in Accra on July 31, 2024.

Major Discrepancies In LiuGong Equipment Pricing Discovered

Hon. Samuel Okudzeto Ablakwa further revealed that inquiries made to LiuGong, along with an assessment of their advertised market values, confirm significant discrepancies.

Hon. Ablakwa stated that for instance, the LiuGong Motor Grader 4180D, which currently sells for US$61,000, was sold to Ghanaian taxpayers under Bawumia’s DRIP for US$185,236.80—an inflation of 204%.

Samuel Okudzeto Ablakwa 1
Hon. Samuel Okudzeto Ablakwa, Member of Parliament for North Tongu

He pointed out that the LiuGong Single Drum Roller 614e, which is currently priced at US$24,500, was sold to Ghanaian taxpayers under Bawumia’s DRIP for US$77,616—an inflation of 217%.

“LiuGong Backhoe CLG 777A currently selling at US$43,000.00 but sold to Ghanaian taxpayers under Bawumia’s DRIP for US$78,000.00 (inflated by 82%). LiuGong Crawler Bulldozer B230 currently selling at US$100,000.00 but sold to Ghanaian taxpayers under Bawumia’s DRIP for US$188,066.67 (inflated by 88%)”.

“LiuGong Wheel Loader 50CN currently selling at US$58,000.00 but sold to Ghanaian taxpayers under Bawumia’s DRIP for US$88,000.00 (inflated by (inflated by 52%). Shacman H3000 Tipper Truck currently selling at US$42,000.00 but sold to Ghanaian taxpayers under Bawumia’s DRIP for US$78,000.00 (inflated by 90%)”.

Hon. Samuel Okudzeto Ablakwa

Ablakwa highlighted that the Shacman H3000 Water Tanker, which currently sells for US$35,000, was sold to Ghanaian taxpayers under Bawumia’s DRIP for US$84,000—an inflation of 140%.

He further noted that a Low Bed, typically priced at US$51,400, was sold for US$146,132.44—an increase of 184%.

The MP also pointed out that Concrete Mixers, usually costing US$959, were sold for US$1,480, marking a 54% inflation.

He added that industry officials have expressed shock, stating that such rates should be substantially discounted with bulk purchases, making it even more appalling that the large-scale procurement under the Akufo-Addo/Bawumia/J.A. Plantpool deal resulted in these exorbitant price hikes.

According to Ablakwa, the NPP who promised to protect the public purse has instead burdened struggling Ghanaian taxpayers with a road equipment bill of US$178.7 million, when the actual cost should not exceed US$76.6 million.

He stated that some experts have suggested that, with US$178.7 million, Ghana could have started its own road construction equipment manufacturing company.

According to the MP, many analysts now believe that Vice President Bawumia’s enthusiasm for DRIP has little to do with its potential impact on road construction.

As such, he emphasized that in light of these shocking revelations, the NDC Caucus in Parliament will soon take concrete steps to initiate a full investigation into the DRIP scandal.

“We shall do everything in our power to stop the full rip-off payment of US$178.7million (2.8billion)”. – Hon. Samuel Okudzeto Ablakwa

READ ALSO: Starmer Warns of Middle East Conflict Escalation

Tags: contractsDRIP ProjecteconomyGhana NewsNPPPresident Akufo-Addo
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