Minister of State designate at the Ministry of Local Government, Decentralisation and Rural Development, Mr. Osei Bonsu Amoah has cautioned Ghana First Company Limited (GFCL) to desist from bringing his name into disrepute or face his wrath.
The company has petitioned the Appointments Committee of Parliament not to approve the nomination of Mr. O. B. Amoah, claiming the nominee was not truthful in answering questions about some contractual agreements it signed with Metropolitan, Municipal and District Assemblies (MMDAs) for construction of “ultra-modern toilets”.
Officials of the company have also been in the media, maligning the nominee who is also the MP for Akuapem South on the issue.
Responding to the claims in a message sent to the Chief Executive of Ghana First, Mr. Frank Akuley which THE CUSTODIAN has intercepted, Mr. O. B. Amoah vowed to fight back if the company does not stop maligning him.
“Please in your own interest stop dragging me into this matter with your defamatory statements.
“I’ve been restrained by your shareholders and directors. The Lord knows my heart and I have acted very diligently and professionally.
“Don’t start personalising the issue and attacking me when I have not done anything untoward because I will fight back.
“I have all documents, press publications and audios to take you on. This is my final notice”, Mr. O. B. Amoah warned.
The petition
In the petition presented to the Appointments Committee, Ghana First Company Limited claimed
Mr. O. B. Amoah did not tell the whole truth about its agreements with the MMDAs.
“In all his responses to the questions asked by Hon. Alhassan Sayibu Suhuyini, MP for Tamale North in relation to Ghana First Co. Ltd projects, Hon. O.B Amoah deliberately concealed the actual truth about the entire projects and the Agreements covering them.
“It is in this note that we hereby express our disappointment and dissatisfaction about the responses which Hon O.B Amoah gave on the Ghana First Co. Ltd and the Clean Ghana Project both in his two vetting’s which are factually incorrect and inaccurate”, the petition read in part.
However, THE CUSTODIAN has gleaned from excerpts of the nominee’s comments during the vetting and has not noticed anything untoward about what he said concerning the agreements.
“I don’t really know their problem. Contractors entered into Agreements with a private company to build toilets in communities with the MMDCEs (Metropolitan, Municipal and District Chief Executives) providing land as equity. The Company has failed to pay most of contractors for work done at various stages.
“They have been demanding that the government should pay them because the Assemblies gave land for the projects, even though the Assemblies have also been shortchanged.
“I’ve been linked because I referred the company to the Assemblies simply to listen to their story and apply the rules of engagement if they are interested.
“Some have even claimed I’m a shareholder when my Constituency is also a victim of this scam. I had to look for money to complete some of the abandoned projects in my Constituency”, Mr. O. B. Amoah told the Appointments Committee.
Introductory letter
This paper has sighted the letter dated 9th August, which was signed and issued by Mr. O. B. Amoah on behalf of his minister, introducing Ghana First company to the MMDAs.
“Please kindly find attached a self-explanatory request from Ghana First Company Limited. The company is proposing to enter into Public Private Partnership (PPP) arrangement with the Metropolitan, Municipal and District Assemblies (MMDAS), and requests to formally engage you in this venture.
“We have no objection to the request to engage the MMDAs subject to the laid down procedure for the PPP Programme.
“You are kindly requested to accord the company that necessary courtesies towards facilitating the ventureship.
“Please do not hesitate to contact the Chief Director of this Ministry for clarification or direction.
“We count on your cooperation”, the letter indicated.
Report on Ghana First Agreements with MMDAs
THE CUSTODIAN has seen a report by then Ministry of Local Government and Rural Development on the agreements.
In the report, Ghana First Company Limited (GFCL), which is a Limited liability entity, claimed it is specialised in building of high standard ultra-modern public toilets to address sanitation challenges such as open defecation and urination using green energy with high-efficient technology-based management.
Consequently, the Company in August 2017 requested the Ministry of Local Government and Rural Development to assist it to enter into a Public Private Partnership (PPP) with the Metropolitan, Municipal and District Assemblies (MMDAs) to construct sanitation facilities.
The company proposed to provide the entire funding for sanitation facilities in the Districts and required MMDAs to provide parcels of land as partners in the delivery of the project.
The land could either be self-acquired by MMDAs or the latter would facilitate and ensure acquisition of third party’s land.
Following this, the Local Government Ministry issued the letter of introduction signed by Mr. O. B. Amoah, dated 9th August, 2017 for MMDCEs to engage the Company subject to laid down procedure for the PPP programme.
Subsequently, GFCL visited a number of MMDAs to inform them about the project and seek their collaboration in the delivery of the project.
It proposed that MMDAs provide the land while GFCL award contracts to their identified contractors to construct the sanitation facilities.
“In all a total 2,000 units of sanitation facilities were awarded by GFCL to private contractors and work commenced on 906 units”, the report noted.
The contracts of the ultra- modern toilet facilities had different seating capacities and prices with 20-Seater toilet costing GH¢333,676.00; 16-Seater, GH¢326,259.34 and 14-Seater GH¢290,484.27.
Ghana First & Local Government Ministry
The report noted that there was no contractual Agreement between Ministry of Local Government & Rural Development and Ghana First Company Limited.
It said even though GFCL awarded contracts over 1000, reports from MMDAs to the Ministry indicated that work on 906 sanitation facilities had commenced.
No agreement with Sanitation Ministry
The report pointed out that the Ministry of Sanitation and Water Resources only issued a letter of introduction to all MMDCEs dated 29th May, 2017.
MMDAs & Ghana First Company
It was pointed out in the report that no MMDA awarded any of the sanitation facility construction project.
The report indicated that contracts for the facilities were all awarded by GFCL and that MMDAs were to provide land for the construction of the projects.
“MMDAs that provided land were considered as Project Partners by GFCL whiles GFCL was described as Project Owner”, the report stated.
It however noted that the MMDAs signed an agreement with GFCL to facilitate the latter’s access to land.
Key terms in the agreement were as follows;
I. The agreement on land access noted that without prejudice to the ownership structure, as consideration for the provision of the land, 10% of the Net Income arising from the operation of the facility, shall be payable to the Project Partner (MMDAs) where the land is self-acquired property for the first ten (10) years and 20% for the next twenty (20) years.
II. However, if the land is owned by a third party, the consideration that is contained in the above clause payable by the Project Owner (Ghana First Company Limited) shall be for the benefit of both the third party and the Project Partner who facilitated the acquisition of the land from the third party.
III. The land so provided shall be vested in the Project Owner (Ghana First Company Limited) who is authorised per the Agreement to use the land for the purpose of securing funding for the project.
IV. Project duration was stated as thirty (30) years and during this period, the Project Owner will own ninety (90) per centum of the facility and the Project Partners (MMDAs) shall have ten (10) per centum equity.
V. Upon the expiration of the thirty (30) years the Project Owner shall have first option of renewal for another (10) years and where denied, ownership of the project is transferred to the Project Partners (MMDAs who gave land)
VI. MMDAs were to provide land titles.
Recommendation
It was recommended in the repot that one option would be for MMDAs to commit some internally generated funds to complete the projects in order to use them.
In this case the contracts would have to be reviewed by the Parties.
Secondly, the Private Contractors with the requisite funds may complete the projects awarded and on which work was started.
In this regard, the private contractors will then manage the completed project for an agreed period of time to recoup their investment before handing over to the Assembly.
Thirdly, the Central Government must not commit funds to the Project to serve as a deterrent to companies who enter into such agreement without taking into consideration the necessary required procedures and without resources/funds.
