AUDITOR-GENERAL ORDERS 35 AGENDA 111 CONTRACTORS TO REFUND $7.9MN FOR UNEXECUTED WORKS
Audit reveals widespread non-performance under flagship hospital construction programme
The Ghana Audit Service has ordered 35 contractors to refund a total of $7.9mn (GHS94.6mn) to the state after failing to deliver on work under the government’s Agenda 111 hospital initiative, Daily Graphic reported on January 14.
The amount represents unaccounted mobilisation payments issued between December 2021 and December 2024 for projects across 19 sites. According to a validation review of a special audit report, $11.16mn was disbursed to the contractors, but only $5.96mn worth of work was carried out.
An additional $4.35mn was paid to 11 companies whose contracts were later terminated, with the audit determining that $1.92mn of that sum remains unjustified, as the work completed was valued at only $2.49mn.
Auditor-General Johnson Akuamoah Asiedu invoked his constitutional powers under Article 187(7)(b) to issue disallowance and surcharge notices against the 35 companies and individuals. “After 14 days, if they fail to show cause, the money becomes a debt due and owing to the state,” Mr Asiedu told Daily Graphic.
The audit uncovered several cases where contractors received 10% of their total contract sums as mobilisation fees but failed to move to site or executed less than 10% of expected work. In some cases, no work was done at all despite full payment of mobilisation funds.
At Adeiso, Imperial Homes, Grand Unique Company Limited and Terraefuoco Limited were paid $1.01mn, $81,074.40 and $130,910.19 respectively, but executed zero work. Other contractors cited for no work done include Casa City Limited and Dynamic Access Limited at the Agbogbloshie site, and 4G Building Technologies Ltd, which must refund $1.07mn after achieving only 2% progress.
Terminated contractors such as Hallwort Ghana Limited and Dominion Covenant Company Limited received $67,772.60 and $129,866.30 respectively without performing any work. Aarun-bis Company Limited was also cited for executing no work at its Bunkpurugu project.
In one of the largest discrepancies, Mendanha & Sousa received $960,937.69 for the Mankranso hospital but completed less than 10% of the work, requiring a refund of $375,702.30. At Nangodi, Tk Waters Limited must refund $530,513.11 after executing $571,112.89 of its $1.10mn mobilisation fee.
A few companies were noted to have completed close to 10% of work corresponding to their mobilisation sums. These include Rajar Engineering at Akatsi, Jaborah Construction Limited at Akrofuom, and Kofi Job Company Limited at the Bantama Sub-Metro project.
The Agenda 111 programme, launched by the New Patriotic Party (NPP) government to construct 111 hospitals nationwide, has faced mounting public scrutiny over slow progress and transparency in project delivery.
Source:NKONKONSA.com
