A NPP Member of Parliament for Obuasi West Constituency, Hon. Kweku Kwarteng has posited that the termination of two contracts between the Savannah Accelerated Development Authority (SADA) and Asongtaba Cottage Industries (ACI) is another form of kickbacks and judgment debts designed to steal from the state coffers.
The contracts terminated relates to the Guinea Fowl Rearing and Processing and an Afforestation and Tree Growing project.
A statement from the Presidency signed by Mr. Ben Dotse Malor, Senior Communications Adviser/presidential Spokesperson said: “President John Mahama has instructed the Board of the Savannah Accelerated Development Authority (SADA) to act in consultation with the Attorney General to terminate two contracts it entered into with Asongtaba Cottage Industries (ACI)”.
Reacting to the cancellation of the contracts, the NPP MP averred on Hot Fm that the government had no mandate to abrogate the SADA and ACI contracts with its minority shares in partnership with the private company. According to him, any final decision relating to the issue of contracts can only be dictated to by the major share-holder.
He pointed out that if the government, being the minority share-holder in a venture, can take a decision to abrogate a contract, it clearly shows the private company is owed by cronies of government cunningly setup to siphon state funds.
“……the ability of the government to cancel ACI and SADA contracts means that the private company is owed by cronies of government and I’m not being partisan….This means that the politicians turned round to form the Asongtaba Company and that is why the President could have the authority to cancel the contracts. If we don’t punish those at Asongtaba then more of this will crop up….because this is the trend the government has adopted to deplete state resources,” he asserted.
He further warned that Public Private Partnership (PPP) would soon be turned into a new avenue for stealing from the state since Ghanaians are now aware of some kickbacks and judgment debts strategy.
“….If care is not taken this Public Private Partnership will be the new avenue for stealing as people are now aware of the judgment debt and the kickbacks strategies which have been used over the years;…it will look as if the government is in this partnership with the private companies to share the contract monies. We have to understand that it started from kickbacks and moved to judgment debts and now it is in the PPP,” he warned.