fbpx

$74m Jospong contract terminated for non-performance

BY: Mabel Aku Baneseh

A $74-million contract awarded to the Jospong Group and its affiliates for the supply of one million litter bins and 900,000 bin liners has been cancelled for non-performance.

The Ministry of Local Government and Rural Development, on November 7, 2016 entered into five separate contracts with five subsidiaries of the Jospong Group to provide the litter bins and bin liners.

The companies, per the contract, were to supply and distribute the items within 12 months after signing the contract.

However, a letter dated November 29, 2018 and signed by the Chief Director of the Ministry of Local Government and Rural Development, Mr C.K. Dodenu, said: “I have been directed to invite our attention to the fact that the contracts have lapsed on account of non-performance by the contracting companies.

 “Accordingly, the listed contracts have elapsed on their own terms per Clause 34 (a), as the companies failed to deliver the one million bins and nine hundred thousand bin liners within the stipulated time.”

Ghana News Headlines

For latest news in Ghana, visit Graphic Online news headlines page Ghana news page

The letter thanked the group for showing interest in the project and encouraged it to “still participate in future projects of the ministry”.

Minister

The Minister of Local Government and Rural Development, Hajia Alima Mahama, confirmed the contract cancellation to the Daily Graphic yesterday.

She explained that the cencellation was upon the advice of the Attorney General to whom a number of such contracts had been referred for advice.

Hajia Mahama said the state had not lost any money as a result of the cancellation as the contract never took effect.

Details of contract

Universal Plastic Products and Recycling Co. Ltd was to provide 350,000 bins at a unit cost of $60 and total contract cost of $21 million, while Yeeco Plastics Ghana Limited was to provide 250,000 bins at a unit cost of $60 and a contract cost $15 million.

Under the same contract, a third affiliate of the Jospong Group, JSA Logistics Limited, was expected to supply 150,000 bins at a unit cost of $60 and $9 million in contract sum.

Able Plastics Recycling Limited was to provide 250,000 bins, also at a unit cost of $60 and valued at $15 million.

The fifth company, Meridian Waste Management Limited, was to supply 900,000 biodegradable bin liners at a unit price of $15.6, with a total contract value of $14 million.

However, per the November 29, 2018 letter, all the listed contracts have been cancelled for non-performance on the part of the companies.

Investigations

It is recalled that investigations by Joy News indicated that the contract had allegedly been inflated by a margin of GH¢148 million.

The Daily Graphic has also spotted some waste bins left to the vagaries of the weather in some metropolitan, municipal and district assemblies.