General News of Thu, 31 Aug 20176
$60 charged Mahama government for bin in 2016 normal – Jospong Group
The Jospong Group of Companies says the $60 per unit cost [equivalent of ¢258] it charged the past government for the provision of one million bins and 900,000 bin liners in 2016, at $15.6 per piece was appropriate.
The Group said the cost of raw materials for the production, distribution and transportation of bins to households were factored in the overall calculation, though distribution was not captured in the original contract.
Communications Manager for Zoomlion Ghana, Robert Coleman said the Local Government Ministry understood details of the contract before it went ahed to award it.
“Bins are manufactured based on raw materials [and] we are talking about a contract that we needed to distribute the bins to the households and we charged transportation,” he told Evans Mensah on Joy FM’s Top Story Thursday.
Mr Coleman’s argument contradicts the content of a pro forma invoice Joy News secured from the Universal Plastic Product and Recycling Company Limited (UPPRCL), a subsidiary of Jospong Group.
The group's invoice to Local Government Ministry stated that the cost was for bins and transportation, but it does not include distribution.
In the invoice, the company quoted ¢150 as the unit cost for a 240 litre bin, the size of the one supplied government under the contract in which the companies charged ¢258.
The UPPRCL is a beneficiary of the Local Government Ministry’s sanitation contract found to have been inflated by ¢130 million, Joy News'comprehensive investigative series titled Robbing the Assemblies by Manasseh Azure Awuni revealed.
The contract was awarded to five Jospong companies in 2016 for the procurement of waste bins and disposable bin liners at the cost of $74,040,000 (¢318 million).
Details of the investigation have unnerved the Jospong Group, although it has admitted it owns the five companies that won the contract.
The companies include, UPPRCL, Yeeco Plastics Ghana Limited, JSA Logistics Limited, Able Plastic Recycling Limited and Meridian Waste Management Services Limited.
Mr Coleman said the companies have the right to bid for any contract they deem fit because they are legally registered in the country.
“These companies are limited liability companies and therefore they have the right to bid for any contract that they have the necessary expertise,” he said.
But the sanitation was awarded to these companies through single source procurement.
Asked if the companies have the capacity to produce waste bins, Mr Coleman said because of their association with the mother company, they are waste related companies.
“They are all affiliated with the group and they have their specialty and that is the major reason why before the contract was awarded people from the various ministries and authorities have to come and check if they have the capacity,” he said.
He believes then Local Government Minister, Collins Dauda would not have awarded the contract to the Jospong related companies if he was not convinced about their work.