Auditor-General’s Report 2021: Ghana Spent $2m on Accra Sky Train Project But Feasibility Studies Inconclusive

Auditor-General’s Report 2021: Ghana Spent $2m on Accra Sky Train Project But Feasibility Studies Inconclusive

  • The Auditor-General says the botched Accra Sky Train Project cost the state $2 million
  • The sky train project was announced with optimism as the solution to Accra's traffic congestion but it was never built
  • According to the report, the $2 million was spent even though feasibility studies have not been concluded

New feature: Check out news exactly for YOU ➡️ find “Recommended for you” block and enjoy!

The 2021 Auditor-General’s Report has disclosed that the state spent a whopping $2 million on the Accra Sky Train Project even before feasibility studies could be completed.

The funds were used to buy ten ordinary shares in Africa Investor Sky Train Consortium Holdings through the Ghana Infrastructure Investment Fund (GIIF).

“The feasibility studies which will better inform the project economics and required approvals from the Cabinet of Ghana and the Parliament of Ghana are still not conclusive,” the Auditor-General said.

Read also

Government blows GH¢142 million on National Cathedral in 2021; but foundation level yet to be completed

Dollars Sky train
Ghana signed an agreement with the Africa Investor Sky Train Consortium Holdings for the train project. Source: UGC
Source: UGC

According to the report, Africa Investor Holdings Limited set up a Special Purpose Vehicle (SPV) in Mauritius for the Ghana Sky Train Limited which would subsequently build the Accra Sky Train Project. This was expected to be done through a concession on Design, Build, Finance and Operations arrangement.

PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!

But after paying a premium of $199,999 for each share, the SPV reported a net liability on December 31, 2020, the report said.

Furthermore, the consortium is yet to obtain the licence for ‘Aeromovel Technology’, required for the Sky Train Project.

The Auditor General noted that the $2 million could not be recovered if the Accra Sky Train Project cannot secure the licencing and the Executive and Parliamentary approvals.

Meanwhile, John Peter Amewu, the minister for railways development, who took over from Joe Ghartey, has disclosed that the project cannot be completed.

Read also

UG cited in A-G's report for weak management of students' fees

“The sky train that we are talking about is the one that is going to run on columns in the sky like the ones you see in Dubai but no agreement has been signed. It is not possible to be done now,” he said during his vetting.

During the Africa Investment Forum in Johannesburg in 2019, Ghana signed an agreement with the South African company for the train project.

The 194 KM train track was expected to be built above the ground to transport some 400,000 passengers annually within Greater Accra.

Auditor-General’s Report 2021: University Of Ghana Cited For Weaknesses In Management Of Students’ Fees

In a separate story, YEN.com.gh reported that the Auditor General’s report for 2021 has disclosed that the University of Ghana, Legon has been conducting the management of students’ fees poorly.

According to the report, a review of the university’s books found that over GH¢2.5 million is owed by 700 students who are not part of the 2018/2019 and 2019/2020 academic years.

Read also

KNUST exposed for running 299 unaccredited programmes

The report cited the university for weaknesses in the management of students’ fees receivable.

New feature: Check out news exactly for YOU ➡️ find "Recommended for you" block and enjoy!

Source: YEN.com.gh

Authors:
George Nyavor avatar

George Nyavor (Head of Politics and Current Affairs Desk) George Nyavor writes for YEN.com.gh. He has been Head of the Politics and Current Affairs Desk since 2022. George has over 9 years of experience in managing media and communications (Myjoyonline and GhanaWeb). George is a member of the Catholic Association of Media Practitioners Ghana (CAMP-G). He obtained a BA in Communications Studies from the Ghana Institute of Journalism in 2010. Reach out to him via george.nyavor@yen.com.gh.

Online view pixel