General News of 2014-05-14

Subah payments justified - Committee chair

The Chairman of the Government Committee tasked to investigate alleged payments of some 74.3 million cedis to IT firm Subah Info Solutions has said due diligence was done before payments were made to the company.

Dr Larbi Siaw told Joy News the company was only paid for work done.

Subah was contracted by the Ghana Revenue Authority in 2010 to provide telecom traffic monitoring services for revenue verification for the tax agency.

It was alleged however the company was paid 144 million cedis for no work done. The allegation triggered a huge controversy in the country for several weeks.

A committee was constituted by government to investigate the allegation. After a thorough investigation the committee exonerated the IT firm.

The report of the committee said Subah justifiably incurred cost in executing the contract for which reason it was paid 74.3 million cedis contrary to the reported Gh¢144 million for services rendered.

Speaking to Joy News' Francis Abban the chairman of the committee said Subah deserved every amount paid it.

"They were able to meet [targets] and what they didn't meet they were not paid," he said.

Dr Larbi Siaw said the IT firm was not paid the 1 per cent of revenue to be raised from their monitoring, as agreed in the contract, because they could not independently monitor the revenues by the telcos.

On the contrary, he said, the company used the call data records submitted by the telcos to NCA to work out the monitoring.

"This is the same system being used by external monitors and that is what is happening," he said.