General News of Thursday, 1 October 2020
A group of contractors calling itself New World Contractors Association of Ghana are chasing the Akufo-Addo government for failing to pay them their monies after they were contracted to build toilets in different parts of the country.
At a press conference to register their displeasure, the aggrieved contractors said they were awarded contracts between the period 2017 and 2019 and were asked to pre-finance to a certain point before they are paid.
“Contractors were to pre-finance the project and after 60% completion, the amount involved shall be paid to the contractor,” they said in a statement “We are stating that all contractors have complied and fulfilled the first part of the agreement; however, not a pesewa has been paid any of us.”
They are angry because despite piling pressure on the government, the Vice President, Dr. Mahamudu Bawumia, had listed their projects as the government’s achievements during a town hall meeting.
“The Vice President, Dr. Mahamudu Bawumia in delivering his address on the infrastructure projects executed by his government made reference to a lot of the projects we have done,” they said and asked “How can we be denied our money but for the government to claim credit for those projects?”
They said they “see this as a deliberate attempt by the Government and Ghana First Company to kill the spirit of contractors in this regard” adding “Our members procured loans from banks to execute the projects. Now, we are being chased by those banks for repayment.”
Below is their statement;
PRESS STATEMENT DELIVERED AT THE PRESS CONFERENCE HELD BY NEW WORLD CONTRACTORS ASSOCIATION OF GHANA ON TUESDAY 29TH SEPTEMBER, 2020 AT THE CLOGSAG CONFERENCE HALL, ADUM – KUMASI
BY: EMMANUEL DAPAAH – CHAIRMAN
Good day, Ladies and Gentlemen. We thank you all for honouring our invitation. We have gathered here as members of New World Contractors Association of Ghana; that is contractors who have been contracted by Ghana First Company Limited to build ultra-modern toilet facilities across the length and breadth of our country. Ghana First Company Limited is working in collaboration with the Local Government and Rural Development Ministry and Ministry of Water and Sanitation. In fact, it is the MMDCE’s that grant the site for the project.
The project specifications and cost of each are stated below:
484. 14 seater at the cost of Two Hundred and Ninety Thousand, Four Hundred and Eighty Four Ghana Cedis (GHC 290,484.00),
485. 16 seater at the cost of Three Hundred and Twenty Six Thousand, Two Hundred and Fifty Nine Ghana Cedis and Thirty Six pesewas (GHC 326,259.36),
486. 20 seater (A) at the cost of Five Hundred and Three Thousand, Nine Hundred and Thirty Five Ghana Cedis (GHC 503,935.00), and
487. 20 seater (B) at the cost of Three Hundred and Thirty Three Thousand, Six Hundred and Seventy Six Ghana Cedis (GHC 333,676.00).
Ladies and Gentlemen, here is a documentary of the projects we have executed.
TERMS OF REFERENCE PER CONTRACTUAL AGREEMENT
1. The contracts were awarded to individual contractors between the period 2017 and 2019.
2. Contractors were to pre-finance the project and after 60% completion, the amount involved shall be paid to the contractor.
3. Furtherance to that, a letter was issued to each contractor specifying certain conditions. Copies of the letters have been provided here. (read sample letter)
We are stating that all contractors have complied and fulfilled the first part of the agreement; however, not a pesewa has been paid any of us. Meanwhile, the Vice President, Dr. Mahamudu Bawumia in delivering his address on the infrastructure projects executed by his government made reference to a lot of the projects we have done. How can we be denied our money but for the government to claim credit for those projects?
We see this as a deliberate attempt by the Government and Ghana First Company to kill the spirit of contractors in this regard. Our members procured loans from banks to execute the projects. Now, we are being chased by those banks for repayment. Several appeals to Mr. Frank Akuley, the C.E.O. of the Ghana First Company Limited have fallen on death ears. He is blaming the government for the delays.
We are using this medium to draw the attention of the government to our plight. The government should come out to state its position on this matter. We don’t want to believe that this is a scam which has been endorsed by this government.
We are giving the government 10 days to respond to the following issues:
1. Explain to us the contractors, its position and involvement in the Ghana First Company issues,
2. Why the sector ministers gave Ghana First Company introduction and support letters knowing the company’s inability to pay,
3. Why the MMDCE’s refusal to perform their part of the contract with Ghana First Company by providing the land title documents as per their undertaken letters, (sample shown)
4. Why the sector ministers: Minister of Local Government and Rural Development and Minister of Water and Sanitation have refused to respond to the Ghana First Company blaming the Local Government for delaying on their part to raise funds to pay the contractors,
5. Why the government captured our projects (Ghana First Toilet Facilities) as its achievement during the town hall meeting in Accra by the Vice president, Dr. Mahamudu Bawumia, when during the same town hall meeting in Kumasi, we were told by the Information Minister, Kojo Oppong Nkrumah that it is a private project.
The government should intervene by helping Ghana First Company to have access to funds and pay the contractors.
The government should take over the projects and also engage us, the affected contractors, on the way forward.
If the government refuses to adhere to our concerns, we will take the following actions.
We will call and mobilize all the communities where some of these uncompleted toilet facilities are being constructed to demonstrate massively against the government and Ghana First Company.
We will press upon members, their families and workers not to vote and we will campaign massively against the government in this year’s elections.
Lastly, we will expose all the MMDCE’s who took between 5% – 15% from our members before awarding the contracts knowing very well that Ghana First took only 2%.
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