Chronicle’s continuing probing into the scandal ridden $60m GPHA and the award of contract Interbeton BV has exposed the double standards and lies of the Director General of Ghana Ports and Harbors Authority (GPHA), Ben Owusu-Mensah and Dr. Richard Annane (pictured), the then Minister for Roads and transport.
Investigations by the Chronicle has revealed that even the Tender Evaluation Committee of GHPA which was set up by the Director General to re-evaluate the bid offers following the disqualification of Interbeton also rejected Interbeton’ offer and declared China Harbour Engineering as the winner of the tender.
The final report signed by all the seven-committee members stated that “From the evaluation, Bidder 2-China Harbour Engineering. Co. has submitted the lowest evaluated bid, followed by Bidder 4: Messers Phil & Son As. The Bid submitted by China Harbour clearly ranks first, but is closely followed by Phil. & Son. There is a fairly large difference between these two Bids and the Bid submitted by Archirodon.”
The committee also noted in their recommendations that they received a memorandum from Messrs Interbeton seeking to place estimated values on the works, which it failed to cover under the tender.
“The Committee has not taken these values into consideration for evaluation since all bidders had the opportunity of time to prepare a complete bid. For an open international competitive tender, we consider it improper to accept prices for the evaluation after the public opening of bid.” The committee stated.
The seven member committee also noted that the two Dutch companies, Messrs Interbeton and Archirodon offered Grant Assistance with their offers as Archirodon -$8,750,000 and Interbeton Archirodon-$8,086,948.
But the Committee stated that an evaluation of the loan offers indicates that while Archirodon has provided funds to cover the rest of their proposal amounting $57,250,000, Interbeton has provided only up to $9,959,341 and GPHA is expected to fund the remaining part of the cost from her own resources.
“To complete the proposal from Interbeton to meet the project requirements, an estimated amount of $32,233,764.82 will have to be sourced by GPHA. The committee cannot accurately determine the cost of securing these additional funds. “This apart, the amount is 80% of the total required by the lowest evaluated bidder to complete bid offer to execute the works including contingencies” the report said.
The Committee concluded that “the committee has determined the bid offer from Messrs China Harbour Engineering Co. to be best evaluated offer. From the evaluation of the loan offers, the Committee determines that the loan offer from Messrs China Harbour to be the most beneficial to the Authority.”
The GPHA tender Evaluation Committee then recommended that the contract should be awarded to China Harbour Engineering subject to final negotiation.
The Tender Committee were made of N. P. Galley, Ag. Director of Port, Tema, R. A. Y Anamoo, Chief Engineer, Jim Fugar, General Manger Fishing Harbour, Tema, C. Nartey, Chief Internal Auditor, B. B. K Okutu, Civil Engineer Hqtrs, N.Seshie, Port Civil Engineer, Tema and J. Attah-Quansah, Financial Manager, Hqtrs.
Background
Last year, the GPHA came to a conclusion that there was the need to carry out extension works at the Tema Harbour. They then subjected the award of the $60m contract to international tender and contracted Rhien Rhuhr Engineering, a reputed German Consulting Engineers company to handle the tender.After a final evaluation, the German consultants disqualified Interbeton Bv, for not complying with the pre-determined requirements of the tender and for bidding for only a quarter of the contract.
China Harbour Engineering was declared the winner of the tender with 95.0 marks followed by Phil & Son with 85.4 marks. Archirodon, another Dutch company was third with 70.0 marks. Interbeton was disqualified.
In their final report, the German consultants stated that Interbeton “submitted only a part of the contract, the tender was rejected” Following this disqualification, the Director who claimed that a senior officer of GPHA (whom he hasn’t been able to name till date) sabotaged Interbeton by not forwarding all their documents.
He also stated that he found in his handing over notes from his predecessor that Interbeton had been knocking on the doors of GPHA for contract before he took office and had promised an ORET Grant.
“I was surprised that I did not find anything like that in the consultants report. I don’t blame them because a senior officer sabotaged Interbeton” the GPHA boss told Chronicle in an interview.
Ben Owusu-Mensah then threw away the consultants reports and set up a Tender Evaluation Committee to re-evaluate the bids for the various companies, this time with the adjusted costs of all the companies.
He told Chronicle that the tender was handled at five levels, namely “Rhein Rhuhr Engineering (International Tender), GPHA Tender Committee, GPHA Management, GPHA Board and Ministry of Roads and Transport”
He told the Chronicle in an interview secretly recorded by the Chronicle that all the evaluation reports except that of the German Consultants declared Interbeton’s offer as the lowest and the best.
The lies
Meanwhile, Chronicle investigations revealed that soon after Interbeton was disqualified by the German Consultants Ben Owusu-Mensah, Dr. Richard Anane and the Board Chairman of GPHA flew to Liverpool-UK on the invitation of Interbeton through their bankers HSBC. Chronicle sources at both the GPHA and Ministry of Roads and Transport said it was at that meeting that the decision was taken to give the contract to Interbeton at all cost. But in an interview with the Chronicle the GPHA boss denied ever meeting any representative from Interbeton or discussing anything regarding any renegotiation with Interbeton..
“These are all lies, we were invited by HSBC, they are the one financing the containerization of the harbour and that is what went to talk about . They were the ones who invited Interbeton to participate in that meeting, we didn’t discuss anything regarding the award of contract to Interbeton. At that meeting, I did not speak to any official from Interbeton” the GPHA boss told the Chronicle.
Following that claim by Ben Owusu Mensah, Chronicle obtained documents evidence, which confirms beyond doubts that their trip to UK was basically to renegotiate with Interbeton to award the contract with them. One of such documents was a letter dated March 200. The author was Martin Egas, Contracts Mange of Interbeton.
The letter which was addressed to Dr. Richard Annane and copied to the GPHA boss stated among other things that “We thank you for the meeting we had with you and the Right Honorable Minister of Roads and Transport on Thursday 7 March, 2002 in relation to the above: Tema Port Quay Extension Works.
“At the meeting, HSBC and Interbeton confirmed that financing for their proposal for the quay extension works is available. We also informed you that the ‘Promise of Cover’ for the loan expires on March 2002 and that the contract and loan agreement will need to be signed by such date in order not to loose the financing.”
Egas noted in his letter that in order to qualify for the ORET Grant the scope of work had to be limited to meet the grant requirements adding that Interbeton’s intentions had always been to obtain an attractive financing package for GPHA while sources of finance available to Ghana are severely restricted by the HIPC debt relief process.
“It is our understanding that the development and extension of the Quaywall represents the highest priority of GPHA and as a consequence we have focused our attention on ensuring that a functioning quay is produced for GPHA.”
Insiders say that this position by Interbeton was incorrect and that GPHA had not stated anywhere in the tender documents that certain portions of the contract was a priority than others.
The Second letter which exposed the GPHA boss and the minister came from HSBC and J. M. Bailey, Director-Project Export Finance and R.J Hodder, Assistant Manager-project Export and Finance wrote it.
It was addressed to Dr. Richard W. Anane, Minister for Roads and Transport and copied to Ben Owusu-Mensah, GPHA boss. The Letter was captioned INTERBETON redevelopment of Quaywall NO. at Tema Port.
The first paragraph of the letter was emphatic: “It was a pleasure to meet you and the Director General of Ghana Port and Harbours Authority last week to discuss the bid submitted by Interbeton to redevelop Quaywall No: 2 at Tema Port. We would like to take this opportunity to confirm that HSBC is prepared to finance 100% of the Quaywall development as specified in the tender document”
The HSBC letter also continued to mount pressure on the Minister for Roads and Transport and the GPHA boss. The last paragraph stated that “As you are aware, the support from the Dutch authorities expires on 31 March 2002 and we therefore hope that the contract and the loan agreement can signed prior to this deadline”
In the wake of this pressure from HSBC and Interbeton came a memorandum dated 15th March 2002. The author was Mr. Ben Owusu Mensah, GPHA boss and the recipient was the Chairman of the GPHA Tender Evaluation Committee.
The GPHA boss indicated in the Memo that “The Honorable Minister for Roads and Transport has requested that in view of the fact that one of the bidder’s (Interbeton) proposal has a time frame for the utilization of a Grant (31st, March 2002), you convene immediately and submit your results to him through the Board Chairman on Monday 18th March 2002. He is traveling out of the country on the evening of the 18th March 2002.
Smarting under pressure the Tender Committee was forced to submit their report to the Board Chairman who was among the three member delegation which flew secretly to meet with Interbeton and HSBC.
When the Tender Evaluation Committee presented their report, the three musketeers Mr. Ben Owusu Mensah, Dr. Richard W. Anane and the GPHA Board Chairman their report and snatched the contract from China Harbour Engineering.
Interbeton was hurriedly declared the winner of the tender and a contract was signed without going through Parliament for approval. A tax exemption was hurriedly issued to Interbeton without going through Parliament for approval.
In his response to a questionnaire Ben Owusu Mensah stated the tender was handled by the Rhein Rhurr, GPHA Tender Evaluation Committee, GPHA Management (which is Ben Owusu Mensah alone), Ministry of Roads and Transport (which consist of Dr. Richard Anane alone) and GPHA Board (Represented by the board chairman).
On that secret trip to UK the GPHA boss blew his per-dieme and over spent his imp rest. He forced GPHA to refund the balance to him. He admitted overspending his imp rest and when he was asked why he over spent his imp rest he said that “I am not a cheap Chief Executive, I paid for the taxi for the Honorable Minister and my Board Chairman. Do you expect me to allow them to pay for their own taxis.” Meanwhile the Minister and the board Chairman also took their per-diem.
