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Fraudulent award of contracts!

Thu, 26 Sep 2002 Source: Crusading Guide

Indepth investigation conducted in the Central Region by “The Crusading Guide” have revealed that the Mfantsiman District Chief Executive (DCE), Mr Kofi Wilson had given out nine projects on contract - a week to the dissolution of the Assembly - totalling ?1,456,699,265.00 without putting them on tender nor receiving approval from the entire Assembly nor the Executive Committee.

The projects were the construction of a 10-Seater Water Closet (WC) at Mankessim at the cost of ?119,937,804.00 awarded to Brickhouse (Gh) Limited; construction of a 10-Seater KVIP place of convenience at Pomase, costing ?83,512,995.00, which went to Samsant Construction Works.

Kojo Aggrey Construction Enterprise was awarded the construction of a 10-Seater KVIP as Adoagyir at the cost of ?83,641,024.00 and ?424,324,318.20 for Kwabena Adusei Enterprise to rehabilitate, expand and complete market stores at Saltpond.

Others were construction of Anomabo Lorry Park (Phase II) - ?200,384,699.10 - given to Alhaji Sadick Limited; ?83,469,765.00 to Jim-Tess Enterprise for the construction of a 10-Seater KVIP place of convenience at Baifikrom whilst the construction of another 10-Seater KVIP at Saakwa was given to Namarka Company Limited at the cost of ?83,413,940.00. The rest were the, building of a 3-Unit classroom block, office and store at Agyaa No.1, which went to Fynn Wood Enterprise involving ?183,746,193.40 and ?194,268,527.20 went to Zap-Zamata Enterprise for the Construction of a 3-Unit classroom block, office and store at Arkrambrofo.

The investigations further established that the DCE instructed the companies that were awarded the contracts to buy (contract) forms at the cost of ?100,000 each which were allegedly filled and signed for other companies without their consent.

For instance, Brickhouse (Gh) Limited was alleged to have bought two Forms ostensibly meant for TLC Company Limited and Micah Constructions Limited and Fraudulently quoted ?169,423,572.50 and ?165,389,631.00 on the forms respectively without the knowledge of those two companies.

Meanwhile, Brickhouse (Gh) Limited quoted ?119,937,804.00 as its 'bid'. By implication therefore, the company with the lowest "bid" - Brickhouse - was said to have 'won' the contract - without going through any tendering process.

Other companies on the Form that were treated in the same way as Micah and TLC including Ekuona Construction Limited, Nni Bone Akyi Enterprise, Ken-Moret Limited; Amasaji Company Limited; Eloi Construction Works; Metro City Engineers and Kobianfi Construction Company.

The rest were Quarm Construction Works; Dorado Company Works Limited, E.L. Kimaki Company Limited; Bruda Enterprise and Cee-Jay Construction Limited. The figures quoted were said to be imaginary, just to look as if the right thing had been done.

When contacted to comment on the allegations, Mr Wilson said, "I don't believe those allegations". He further explained that there are two types of tendering, 'open and selective' tendering and so those contracts fall under 'selective tendering'.

"Yes, I think it was in Graphic", he replied. Asked to show a copy of the supposed advertisement, Hon. Kofi Wilson could not produce it. Some of the contracts awarded exceeded the District Assemblies' ceiling of ?250 million.

Legislative Instrument (LI) 1606 of 1995 stipulates among other things that "a District Tender Board shall advise the District Assemblies on the award of contracts in the District and that each Assembly shall establish a Technical Evaluation Team to evaluate the responsiveness of each tendered bid in the context of conditions prescribed for the tender, evaluate the financial competitiveness of a tendered bid".

It stresses further that the Evaluation Team will make a summary of recommendations, accompanied by a detailed evaluation report to the District Tender Board and a tender notice shall be advertised in the newspapers and on radio.

Strangely, all these procedures were not followed.

Source: Crusading Guide