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NPP ministers loot gov't coffers

Tue, 25 Jun 2002 Source: Ghana Palaver

Topmost NPP Government Priority In 2001 Was Renovation of Ministers' Bungalows ...
Unapproved ?15,000,000,000.00 Special Project Account Set UP ...
Jake Obetsebi-Lamptey To Account For ?150,000,000.00 ... Kwamena Bartels To Refund ?162,000,000.00 ...
Vice-President's House Renovated at Cost of ?900,000,000.00 ... Ministers' Carpets Cost ?917,000,000.00

Last Wednesday, June 19, 2002, the NDC Minority in Parliament called on President Kufuor to immediately interdict and cause to be prosecuted the Minister of Information, Mr Jake Obetsebi-Lamptey for causing financial loss to the State, alleging that investigation had revealed that Jake, who was at that time the Chief of Staff, by memo collected ?150,000,000.00 on two separate vouchers from monies earmarked for the renovation of the Castle. Reached by Joy FM for his comments on Friday, June 21, 2002, Jake flatly denied any knowledge of any investigation, denied having collected any such monies as alleged, and on three separate occasions called Minority Leader Alban Bagbin who issued the State "a liar".

"Ghana Palaver" has since laid hands on a copy of the Auditor-General's Report on which Mr Bagbin based his disclosure, and the Report simply stinks. The Auditor-General's Report on the renovation, rehabilitation, refurbishment and furnishing of the Castle, Ministerial bungalows of the NPP Ministers and some non-entitled State officials makes extraordinary reading and finally nails in the coffin President Kufuor's so-called "zero tolerance for corruption" policy, if a policy it ever was.

It also reveals a sordid picture of the extravagance of the NPP Ministers and the extent to which they are frittering away the resources of the country as if they were their private resources and unimaginable procedural abuse and disdain for rules and regulations. The Report reveals that in the face of all the stupendous problems facing the urban and rural dwellers of the country, the first major priority of the Kufuor administration when it came into office was to renovate, refurbish and re-furnish the offices and bungalows of the President, the Vice-President and the Ministers to their taste and for their comfort.

?15 BILLION UNAUTHORIZED EXPENDITURE:

To this end, in less than one month after assuming office ?15,200,500,817.73 was set aside as a Special Project Account under Special Budgetary Allocation to renovate the Castle and the official Bungalows for the Vice-President, Ministers, Ministerial offices and Mrs. Naa Morkor Busia's private residence at Odorkor. The amount was not budgeted for; neither did it receive Parliamentary approval, as the then Minister of Works and Housing, Kwamena Bartels, had informed Parliament that the entire Project was to cost ?1,454,910,637.50.

"JOBS FOR THE BOYS":

In typical "job for the boys" fashion, the original 12 contractors mentioned in Parliament to be participating in the Project had ballooned to 39 contractors at the time of the audit. They included Messrs International Development Resources Limited in which Minister of Information (and Presidential Affairs?), Jake Obetsebi-Lamptey, is reputed to have an interest, and Sikelele Limited owned by Minister of Foreign Affairs Hackman Owusu-Agyeman. Other Companies that were awarded some of the contracts bore such strange and exotic names as Axxes Limited, Things Limited, Chief of Staff and Hour of Later Limited. The Report expresses worry that because there was neither a contract register nor a contractors classification register, the competence of the selected contractors could not be vouched for. Jake Obetsebi-Lamptey to Account for ?150 million. According to the Audit Report, No. CGAD/MWH/INS,01/162 dated 8th May, 2002, which is reported in the covering letter to have been discussed with management and the latter's responses embodied where appropriate, the then Chief of Staff and now Minister of Information (and Presidential Affairs?). Jake Obetsebi-Lamptey, was paid a total of ?150,000,000.00 which he has to date refused to account for. The report reveals that even if this amount is accounted for, because the work had been awarded to 12 contractors and was being supervised by the AESL, it was inappropriate for Jake to have used memo. to collect ?150,000,000.00 meant for the payment of the contract works.

JAKE'S EXTRAVAGANCE EXPOSED.

In another finding that is startling for its disdain for the prudent use of state resources, Jake Obetsebi-Lamptey rejected a ?59,374,750.00 renovated official Bungalow because "the materials used were inferior and not suiting his desire". The contract was re-awarded to the same contractor for additional works to cost ?140,000,000.00. According to the Report, "this new cost of ?140,000,000.00 excludes cost of aluminum sliding windows" which is part of Jake Obetsebi-Lamptey's requirement. The report's conclusion on this particular expenditure is damning. It states at paragraph 47: "The extravagant demand by the former Chief of Staff which came after the bungalow had been rehabilitated had caused the State a loss of?59,374,750.00 owing to demolition and changes on the renovated bungalows".

KWAMENA BARTELS TO REFUND ?163 MILLION:

Former Works and Housing Minister, Kwamena Bartels, now Minister for Private Sector Development, and the Chief Technical Adviser/Housing of the Ministry of Works and Housing, are to be surcharged for the loss of ?162,526,525.00 to the State. This represents the cost of renovation of four bungalows which had been disposed of in year 2000 and which had therefore been struck off from the pool of Government Bungalows. ?860 Million for Vice-President's Renovations: The Report also establishes that renovation works at Vice-President Aliu Mahama's official residence awarded to Fulki Limited at a contract sum of ?325,509,100.00, has risen to ?859,280,396.00 at the time of the audit report and presumably was still rising. Worse still, the variation had been made without authorization and approval, the AESL Consultant on the project explaining that due to the limited time at their disposal, the rule on the requirement for re-tendering and approval for variations exceeding 25 per cent of the original contract sum, could not be followed.

Topmost NPP Government Priority In 2001 Was Renovation of Ministers' Bungalows ...
Unapproved ?15,000,000,000.00 Special Project Account Set UP ...
Jake Obetsebi-Lamptey To Account For ?150,000,000.00 ... Kwamena Bartels To Refund ?162,000,000.00 ...
Vice-President's House Renovated at Cost of ?900,000,000.00 ... Ministers' Carpets Cost ?917,000,000.00

Last Wednesday, June 19, 2002, the NDC Minority in Parliament called on President Kufuor to immediately interdict and cause to be prosecuted the Minister of Information, Mr Jake Obetsebi-Lamptey for causing financial loss to the State, alleging that investigation had revealed that Jake, who was at that time the Chief of Staff, by memo collected ?150,000,000.00 on two separate vouchers from monies earmarked for the renovation of the Castle. Reached by Joy FM for his comments on Friday, June 21, 2002, Jake flatly denied any knowledge of any investigation, denied having collected any such monies as alleged, and on three separate occasions called Minority Leader Alban Bagbin who issued the State "a liar".

"Ghana Palaver" has since laid hands on a copy of the Auditor-General's Report on which Mr Bagbin based his disclosure, and the Report simply stinks. The Auditor-General's Report on the renovation, rehabilitation, refurbishment and furnishing of the Castle, Ministerial bungalows of the NPP Ministers and some non-entitled State officials makes extraordinary reading and finally nails in the coffin President Kufuor's so-called "zero tolerance for corruption" policy, if a policy it ever was.

It also reveals a sordid picture of the extravagance of the NPP Ministers and the extent to which they are frittering away the resources of the country as if they were their private resources and unimaginable procedural abuse and disdain for rules and regulations. The Report reveals that in the face of all the stupendous problems facing the urban and rural dwellers of the country, the first major priority of the Kufuor administration when it came into office was to renovate, refurbish and re-furnish the offices and bungalows of the President, the Vice-President and the Ministers to their taste and for their comfort.

?15 BILLION UNAUTHORIZED EXPENDITURE:

To this end, in less than one month after assuming office ?15,200,500,817.73 was set aside as a Special Project Account under Special Budgetary Allocation to renovate the Castle and the official Bungalows for the Vice-President, Ministers, Ministerial offices and Mrs. Naa Morkor Busia's private residence at Odorkor. The amount was not budgeted for; neither did it receive Parliamentary approval, as the then Minister of Works and Housing, Kwamena Bartels, had informed Parliament that the entire Project was to cost ?1,454,910,637.50.

"JOBS FOR THE BOYS":

In typical "job for the boys" fashion, the original 12 contractors mentioned in Parliament to be participating in the Project had ballooned to 39 contractors at the time of the audit. They included Messrs International Development Resources Limited in which Minister of Information (and Presidential Affairs?), Jake Obetsebi-Lamptey, is reputed to have an interest, and Sikelele Limited owned by Minister of Foreign Affairs Hackman Owusu-Agyeman. Other Companies that were awarded some of the contracts bore such strange and exotic names as Axxes Limited, Things Limited, Chief of Staff and Hour of Later Limited. The Report expresses worry that because there was neither a contract register nor a contractors classification register, the competence of the selected contractors could not be vouched for. Jake Obetsebi-Lamptey to Account for ?150 million. According to the Audit Report, No. CGAD/MWH/INS,01/162 dated 8th May, 2002, which is reported in the covering letter to have been discussed with management and the latter's responses embodied where appropriate, the then Chief of Staff and now Minister of Information (and Presidential Affairs?). Jake Obetsebi-Lamptey, was paid a total of ?150,000,000.00 which he has to date refused to account for. The report reveals that even if this amount is accounted for, because the work had been awarded to 12 contractors and was being supervised by the AESL, it was inappropriate for Jake to have used memo. to collect ?150,000,000.00 meant for the payment of the contract works.

JAKE'S EXTRAVAGANCE EXPOSED.

In another finding that is startling for its disdain for the prudent use of state resources, Jake Obetsebi-Lamptey rejected a ?59,374,750.00 renovated official Bungalow because "the materials used were inferior and not suiting his desire". The contract was re-awarded to the same contractor for additional works to cost ?140,000,000.00. According to the Report, "this new cost of ?140,000,000.00 excludes cost of aluminum sliding windows" which is part of Jake Obetsebi-Lamptey's requirement. The report's conclusion on this particular expenditure is damning. It states at paragraph 47: "The extravagant demand by the former Chief of Staff which came after the bungalow had been rehabilitated had caused the State a loss of?59,374,750.00 owing to demolition and changes on the renovated bungalows".

KWAMENA BARTELS TO REFUND ?163 MILLION:

Former Works and Housing Minister, Kwamena Bartels, now Minister for Private Sector Development, and the Chief Technical Adviser/Housing of the Ministry of Works and Housing, are to be surcharged for the loss of ?162,526,525.00 to the State. This represents the cost of renovation of four bungalows which had been disposed of in year 2000 and which had therefore been struck off from the pool of Government Bungalows. ?860 Million for Vice-President's Renovations: The Report also establishes that renovation works at Vice-President Aliu Mahama's official residence awarded to Fulki Limited at a contract sum of ?325,509,100.00, has risen to ?859,280,396.00 at the time of the audit report and presumably was still rising. Worse still, the variation had been made without authorization and approval, the AESL Consultant on the project explaining that due to the limited time at their disposal, the rule on the requirement for re-tendering and approval for variations exceeding 25 per cent of the original contract sum, could not be followed.

Source: Ghana Palaver