Jospong loses GHC362 million waste bins contract

Jospong loses GHC362 million waste bins contract

- The government has abrogated its waste bins contract with the Jospong Group of Companies

- This was after a committee headed by Senior Minister, Yaw Osaafo Maafo, conducted investigations into the deal

- The contract was allegedly inflated by about GHC362 million

The government of Ghana has cancelled a GHC362 million contract with the Jospong Group of Companies.

The deal, which was to facilitate the supply of waste bins, was abrogated after investigations revealed that the figures involved had been inflated. understands that the procurement of one million waste bins and 900,000 pieces of disposable bin liners was inflated by at least GHC148 million.

A man wearing a suit
Joseph Siaw Agyapong, Jospong Group of Companies Source: Supplied
Source: UGC

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The contract was reportedly awarded in November 2016 by the Ministry of Local Government and Rural Development.

The order to award the contract was given by the Office of the President in a letter signed by the then Chief of Staff, Julius Debrah.

Checks at the Registrar General’s Department revealed that all the five companies handpicked for the single-sourced contracts belonged to the Jospong Group, which is owned by Joseph Siaw Agyepong.

According to the contract, the cost of the one million waste bins was $60 million while the cost of the 900,000 pieces of bin liners is over $14million. These amounts did not include Value Added Tax (VAT).

The contract was awarded through sole-sourcing with approval from the Public Procurement Authority (PPA).

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However, according to a pro-forma invoice from the Jospong Group, the price of a 240L waste bin was quoted at GHC150, which is the price advertised to the public.

The bins were nonetheless sold to the government for $60, with the exchange rate of $1 to ¢4.3 at the time the contract was signed, but the current exchange rate stands at GHC4.9.

It was also established that the Local Government ministry had procured 150,000 waste bins for District Assemblies across the country, which it had been unable to distribute.

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Visits to metropolitan, municipal and district assemblies across the country showed that the waste bins procured earlier had been left to waste away. While the ministry struggled to distribute the 150,000 bins, it went ahead to award a contract for 1,000,000 bins from the Jospong Group at an inflated cost.

In September 2017, the Minister of Justice and Attorney General, Gloria Akuffo, ordered the Criminal Investigations Department (CID) to commence criminal investigations into the waste bins and other such questionable sanitation contracts.

A cabinet committee headed by the Senior Minister, Yaw Osafo Maafo, was also formed to comprehensively review the contract and it ordered its cancellation.

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