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MP Goes Wild Over $1.6m Deal At Water Company

Thu, 2 Aug 2001 Source: Ghanaian Chronicle

Serious discrepancies detected in a $1.6million computerization project for the Ghana Water Company Limited (GWCL) by the committee probing malfeasance at the distressed company yesterday threw Committee member and former NDC parliamentarian, Squadron Leader Clend Sowu, into a bout of rage and lamentation.

Sowu, who chaired yesterday's sitting on behalf of Justice N.Y.B Adade, flared up with anger when it emerged that the money, which was sunk into a Management Information System computerization project, was misused.

Sowu, who stood as parliamentary candidate for Anlo in the December elections. openly lamented the loss of State funds as a result of what he described as administrative lapses in the company.

Documentary evidence tendered at the sitting indicated that the management of GWCL had no grasp or idea about how the project was run.

It also became evident that the Board of Directors at that material time was misinformed about certain issues concerning the project, thereby compelling the it to issue wrong directives, most of which could not be implemented.

For instance, a management Technical Appraisal Committee (TAC) set up to investigate allegations of impropriety arising from the project which had the World Bank approving US$ 750,000 as assistance for its implementation in its final report, misinformed the Board that Omari Computek Limited, one of the contractors supplying equipment for the project, was paid US$ 175,000 as maintenance fee for a period of five years.

Sowu's anger however got to boiling point after it also surfaced during the sitting that the director of a consultancy firm contracted by the company for the same project had fled the country for the United States, after picking up his pay cheque of $290,245- for no job done.

Also $170,000 said to have been paid to a company by name Omari Computek was never paid, even though it had been recorded as paid. The man who allegedly received the money was on hand at the committee's sitting to debunk the allegation. The TAC report might be influenced by false evidence tendered before it, revelations at the committee sitting indicated.

Based on the TAC's report, the Board then requested management of the company to retrieve the said amount from Omari Computek since the project failed and there was nothing to maintain.

The chairman of the project committee, Robert Tackie, and his team apparently realizing the Board of Directors got the whole information wrong kept their cards to the chest until it emerged at yesterday's sitting that, not a dime was given Omari Computek as presented before the TAC members, who, based on that, also misinformed the Board members.

Dr. Peter Omari of Omari Computek, who was invited to appear before the Board, said an emphatic "No" when he was asked if indeed he was paid US$ 175,000 as maintenance fee for something that was not functioning.

Robert Tackie challenged Dr. Omari's claim, holding a document in the hand but the poor doctor, who is impaired at speaking stuck to his gun, a situation that compelled an angry looking Sowu to excuse Mr. Tackie to go and revise his document.

Tackie walked out briefly, came back and confirmed that all along the Board members and the TAC members who first investigated the sham got it all wrong. In fact, he finally confirmed that Omari Computek was not paid for no work done thus relieving the speech impaired Dr. Omari, who obviously had the shock of his life when he heard that he was paid US$ 175,000 as maintenance fee.

The crux of the case was that members of the project committee paid US$ 172,000 to Tara Computer Systems as maintenance fee for equipment that was not installed but indicated to the TAC members who later misinformed the Board based on information they had during their investigation that Omari Computek was given US$ 175,000 and Tara Computer Systems US$ 172,000 to maintain the equipment, which turned out to be a blatant lie.

Indications are that the audit report of the GWCL would be examined and if it is recorded that Omari Computek Limited was paid US$ 175,000 which eventually turned up to be false then, then members of the project would answer for the loss of the money.

Chronicle gathered that after the World Bank assistance of US$ 750,000, management of GWCL in 1998 contracted a loan of ? 1,729,032,639 from the Social Security Bank at a time the project had already failed.

Moreover, management also took US$60,982 and ?468, 882,958 from the revenue coffers of the GWCL to support the project but all failed, Chronicle established.

Mr. Mike Obuobi, Chief Executive of Intelligence Solutions, the consultancy firm that handled the Ghana Water Company's failed computerization project, may soon be hauled back to Accra with the assistance of Interpol to face the Justice N.Y.B Adade committee probing the GWCL from his base in the United States of America where he is currently cooling off.

Chronicle gathered that Obuobi, who took a total of US$290,245 as consultancy fee for drawing the master plan for the project, absconded upon realising that he could face legal action.

Obuobi, Chronicle gathered, sensed the danger ahead after he was denied an additional US$87,000, which he demanded and without delay fled the country.

The GWCL computerization project was started in 1996 and was scheduled for completion in 1999 but unfortunately the first phase did not even succeed.

Squadron Leader Clend Sowu would not listen to suggestions that the project was a scam and taxpayer's money misused.

He therefore instructed the members of the project committee to furnish him with information on the way forward as far as the project is concerned at the committee's sitting today.

Source: Ghanaian Chronicle