Construction Pioneers paid for no work done

Accra (Greater Accra) -- Construction Pioneers (CP), an expatriate construction firm, is to refund an amount of 48 million Deutse Marks (DM) to government for payments of monies that were not due the company.

The DM 48 million is said to have been paid to CP through a proposed scheduled payment made by the former Minister of Finance, Mr Kwame Peprah, without reference to the Ministry of Road and Transport, the Controller and Accountant-General’s Department and the Auditor-General’s Department.

Information gathered by “The Evening News” indicates that the DM 48 million, which had already been paid to CP could not be assigned to any certification. According to sources close to the Ministry of Finance at a committee meeting conveyed by the ministry which was attended by the Accountant-General, Auditor-General, Minister of Roads and Transport, Ghana Highways Authority and CP it came out that really an overpayment of the amount was made to CP.

It said CP at the meeting agreed that the company has been overpaid by DM 48 million. An audited report also indicated that certificates raised and payments made for work done and settlements of claim revealed that a total of DM 48 million was overpaid to CP by the government.

The report said it was made clear by CP, that apart form the contract they executed, there was no documentary evidence to support government’s acceptance of the obligation to pay the amount, yet the former Minister of Finance gave instructions for the among to be paid to CP. It said the amount due to CP as at the end of October 2000 was DM 21 million yet it was over paid by an amount of DM 48 million. The report recommended that government takes steps to recover the excess payment with interest.

The report also indicated that although CP never undertook construction works on the Oda-Abirem-Nkawkaw road it nevertheless received payment. The sources again told “The Evening News” to get CP’s side of the story, but which proved futile as all officials contacted declined to comment on the issue. Officials of CP told the paper that it was only the managing director who could comment on the story because he is representing CP on the committee which was formed to looked into the issue. – The Evening News