Government extends controversial Zoomlion contract



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General News on Thursday, June 6, 2019

Source: Myjoyonline.com

2019-06-06

JUSTIN KODUA2 Director General of the Agency for Youth Employment, Justin Kodua Frimpong

The Government of Ghana extended its street sweeping contract with the waste management company Zoomlion after it was terminated in February of this year.

As a result, the government continues to pay monthly the 38,000 cleaners of the Agency's youth employment cleanup model.

Justin Kodua Frimpong, chief executive of the YEA, told Joy FM Thursday that the Attorney General had previously told the agency that his partnership contract with Zoomlion allowed him to take his course. This followed a protest letter from the sanitation company, which had learned of the government's intention to review its contract.

This letter reminded the government of its contractual obligations to Zoomlion and warned it against liability in the event of termination.

The government intended to review the Zoomlion contract as a result of anomalies identified in the performance of its obligations.

According to Mr. Kodua Frimpong, some of the anomalies included Zoomlion's monopoly.

Again, the Youth Employment Agency could not account for the sums paid to Zoomlion because they were directly paid by the Common Fund of the District Assembly, he said.

The 45,000 employees covered by the model could not be independently verified by the agency.

In addition, the agency considers that it is inappropriate that employees receive 100 Ghc per month, while the company has kept 400 Ghc out of the total of 500 Ghc received from the government.

The YEA leader also said there was no adequate documentation of the sanitation company's dealings with the government.

Worse still, the Youth Employment Agency was not part of the recruitments carried out according to the model, nor contacted to check the payment requests presented by the Zoomlion to the government. Frimpong said

Nevertheless, Zoomlion protested the government's intention to revise his contract, saying he had a valid contract with the government.

According to Mr. Frimpong, Zoomlion argued that the government could not revise its contract without incurring liability and paying all of the debt it owned.

The attorney general confirmed it, he said.

In the opinion of the Attorney General, the actions of the government and the sanitation company suggested the existence of a contract between the two parties, even though an official contract between they had expired in 2013.

According to the boss of YEA, the fact that the previous contract, dating from 2006, included clauses of renewal and is not officially terminated but that the government authorizes the company to work on the expiry of his contract in 2013, makes that the government is party to the contract with the company. .

However, the government has put in place a number of reforms to ensure that its current relations with the sanitation firm are not tainted by past anomalies.

Resource optimization interventions

The government has put in place a number of measures to optimize resources. Justin Kodua Frimpong claimed.

One of the measures is to pay the remediation company for 38,000 employees instead of the 45,000 employees declared by the company. This happened to after a head count.

In addition, the government ensured that employees now receive a monthly payment of 180 Ghc instead of the 100 Ghc they received previously.

The government is also breaking the existing monopoly of Zoomlion. It was decided to advertise for other companies to join us.

Over the next six months, other companies should commit themselves after the public procurement authority has finalized all necessary protocols. Frimpong said.

Cabinet also established a subcommittee to review Zoomlion's entire contract.

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