My $74m Contract With Gov’t Hasn’t Been Terminated – Jospong

Joseph Siaw Agyepong, Chief Executive Officer of the Jospong Group of Companies has dismissed media reports that, the government of Ghana led by President Akufo-Addo has terminated a $74m bin distribution contract with Zoomlion.

The media over days ago has been high on the news that, government has terminated the contract awarded in 2016 for the provision of one million waste bins under a sole-sourcing arrangement which had the blessing of the Public Procurement Authority (PPA).

Apart from the bins, the contract, which was approved on 26 October 2016, was also for the procurement of one million litter bin liners for distribution to households to improve sanitation in the country.

Deputy Minister of Local Government and Rural Development, Osei Bonsu Amoah, who confirmed the cancellation said all documents pertaining to the contract have also been forwarded to the Attorney General’s Department.

“When we came in, we looked at our funding and the companies involved in the arrangement. We made them aware that we were not happy with the contract … At the end of the day, we think that we cannot go ahead with the contract and we informed them, accordingly. We have written to them that we are not proceeding with the contract,” he said.

However, addressing the media Thursday, Mr. Joseph Siaw-Agyepong explained the contract elapsed following government’s inability to raise funds for the supply of the litter bins to households across the country.

He added the company has since secured a facility from Ecobank for a similar exercise known as “One bin, one household.”

“It [the contract] was under investigation and the CID investigated it and what came out of it, nothing,” the waste management boss told the media.

He added: “Because we have passion for doing this business and solving problems, we went to Ecobank and they gave us 10 million. Naturally it isn’t that we didn’t perform, government didn’t have money to pay. Not that it was terminated, the contract elapsed by itself after two years.

“We didn’t supply because government didn’t have money. There is no contract termination and those headlines are mischievous.”