Company demands arrears from Ghana@50 Secretariat

Accra, Sept. 16, GNA - Madam Mary Gyasiwaah Owusu, Managing Director of Chakan Enterprise, on Wednesday appealed to the Ghana@50 Commission of Inquiry to assist her to recover an unpaid balance of GH¢205,269.93 together with interest from the Ghana@50 secretariat for the supply and installation of seats at the Independence Square in Accra.

Madam Owusu, who was testifying before the Commission in Accra, also sought the Commission's assistance to recover an amount of GH¢3,500 withheld by the Secretariat in respect of tax certificate. She explained that out of the GH¢205,269.93 which the Secretariat owed her company, GH¢74,480 was the actual outstanding balance of the initial contract sum and the remainder of GH¢130,789.93, represented local service charges the company incurred as per an agreement with the secretariat.

But in a heated argument during cross-examination, Mr Akoto Ampaw, Counsel for Dr Charles Wereko-Brobby, Chief Executive of the defunct Secretariat, objected to her claim, stating that the Secretariat's records indicated that her company was entitled to only Gh¢71,883.50 instead of the amount she had stated.

Akoto Ampaw argued that since her contract with the Secretariat was to supply and install seats at the Independence Square, her company was liable to bear the cost of the installation until the project was completed and handed over and that the claim of GH¢130,789.93 was not part of the agreement with the secretariat.

However, Madam Owusu stood by her claim, insisting that even though her company had not signed an agreement with the Secretariat for local service charges, Chakan Enterprise incurred that cost because of several verbal agreements with Dr Wereko-Brobby.

Madam Owusu told the Commission that her company was awarded the contract in November 2006.

She admitted that there was no written agreement to that effect but after negotiations on the invoice she submitted, the Secretariat issued her company a letter confirming the contract.

As per the contract terms, Chakan Enterprise was to supply 6,500 seats at a unit cost 80 dollars with a total cost 520,000 dollars. The secretariat was to pay for installation charges of 68,000 dollars and freight and insurance charges of not more than 55,000 dollars. She explained that the seats arrived in Accra by air on February 10, 2007 and the company commenced installation on February 19. Madam Owusu told the Commission that as per the contract agreement, the Secretariat was responsible for the movement of the seats from the port to the job site, but in view of the time limit for the jubilee celebration, the Secretariat asked her to pre-finance the handling, port clearing, warehousing and logistics charges with the understanding that she would be reimbursed later.

She said these extra responsibilities, which were not part of the initial contract with the Secretariat, compelled her to obtain an overdraft facility of GH¢100,000 at a variable compound interest of 29 per cent from her bankers to finance the local service charges, which she was claiming from the Secretariat.

Madam Owusu said the Secretariat also asked her to secure warehousing facility for the seats with an understanding that she would be reimbursed, which she complied.

She told the Commission that when her company was about to start the installation, she noticed that there was no power supply at the pavilions which compelled her to hire generators and flood lights at an additional cost based on the assurance of the secretariat that she would be reimbursed.

She claimed that she hired private security personnel to guard the seats which were being installed at the Square with the consent of the Secretariat to reimburse the cost.

Madam Owusu said although the contract was completed, to date the Secretariat had not paid the outstanding contract sum and the local service charges incurred as agreed between her and the Secretariat even though the consultant had advised the Secretariat to do so. She said presently her bankers had threatened to commence legal action against her if she did not repay the overdraft facility she was granted to pre-finance the local charges for the Secretariat. Mr Akoto Ampaw suggested that since Madam Owusu did not have a document to prove that the Secretariat agreed to the activities that resulted in the local charges she was demanding; her narration was a "tall story".

Madam Owusu who tried to justify her claim for the local chargers asked why the Secretariat had agreed in letter dated June 4, 2007 to pay her only GH¢45,000 being the cost of only the port clearing and handling charges in addition to the outstanding contract sum GH¢74,480, when there was no written argument. The Commission thus asked Madam Owusu to appear before the Commission with the Consultant to the project for the matter to be thrashed out.