Saga of 14 Pajeros: All Engines Failed Within 6 Months

The Ghana Water Company Limited has a mountain to climb in their effort to convince Ghanaians to accept the proposed huge increases in water bills following forensic audit report highlighting wide spread fraud, embezzlement and mis-management in the operation of the company in the immediate past.

According to the report, 14 Mitsubishi Pajero Cross Country vehicles imported through African Automobile Limited broke down with engine problems within six months of delivery. When the Management of GCWL asked for replacement in accordance with warranties on the vehicles, African Automobile Limited did rectify only one vehicle.

According to African automobile showroom prices, a Pajero 2.5 litres cost $39,000 (about ?280 million). A new model with 3.2 litres engine cost $45,000 (about ?330 million). The total cost of the 14 cars is estimated at between ?3.9 bn and ?4.5bn. All this is lost to the company. In addition to this whooping loss, the Water Company spends huge sums of money on repairs and maintenance.

"Currently," states the audit report, "African Automobile Limited, local representative for Mitsubishi vehicles has sued GWCL in an Accra High Court for payment of ?3.637 billion being cost of spare parts supplies and maintenance on GWCL vehicles."

The audit team found mis-management of the transport system at Water Company and made the following recommendation: "We recommend that an investment appraisal should be carried out to determine the merits of rather acquiring new vehicles than to invest heavily in faulty vehicles. The sum of money African Automobile is claiming from GWCL of over c3 billion for the supplies of spare parts and maintenance of GWCL vehicles could conveniently acquire ten cross country vehicles."

In an orgy of mis-application of company resources, the report found that the Chief report found that the Chief Manager in Public Relations has failed to account for imprest given him from 1999 to 2001 amounting to about c128 million and recommended stringent means to get the amount refunded.

"We have recommended that all means must be used to recover the amount, including a request by the Company solicitor Secretary to take appropriate legal procedure to hold lien, his superannuation and social security." But Ansong Lawson, the Manager in question, interdicted since February this year, with Charles Adjei, former Managing Director of the GWCL, disputed the audit findings in a chat with Public Agenda. He said he has accounted for every cedi collected in the performance of his duties. "I have retired all imprest and I have documentation to prove that," he said.

The report questioned the rationale behind payment of about c1 million every month as phone bills on the cellular phone used by Board Chairman C.W.O Sackeyfio. "The company ought to have limits for Executives who have such facilities in the light of GWCL's financial position.

The report indicted Charles Adjei for involving the company in an expenditure of ?7,500 (about ?8m) to advertise in an African Investment Almanac without seeking professional advice from the Public Relations unit. "By professional standards, the advert was expensive and unnecessary."

The report said as at September 20, when their mandate ran out, the audit team had not been able to complete their assignment due to the volume of malfeasance they had to contend with.

"The construction of 10 Horsely Water Tanks, acquisition of a property in Kumasi and chemical usage at the various water works, Utility billing, Payroll and cash management at the districts were not fully covered due to the volume of work in relation to the reporting time frame." The audit team said the investigation was still ongoing.