Accra, June 13, GNA-President John Dramani Mahama says the contract between Youth Employment Agency (YEA) and Zoomlion Ghana Limited (“Zoomlion”) has expired and will not be renewed.
He said all payments made to Zoomlion after the contract’s expiration will be thoroughly audited.
The President said in a response letter: “Re: Petition to discontinue the expired contract between the YEA and Zoomlion Ghana Limited” to Mr. Manasseh Azure Awuni, a Freelance Investigative Journalist signed by Dr. Callistus Mahama, Secretary to the President.
Mr Awuni formally petitioned President Mahama to discontinue the 19-year-old contract between the Youth Employment Agency (YEA) and Zoomlion Ghana Limited.
Under the last contract, which expired in September 2024, GH₵ 850 is allocated to each sweeper. He alleged that Zoomlion keeps GH₵600 and pays the sweepers GH₵250 a month, according to the contract.
He also alleged that Zoomlion charged interest if the YEA delayed in paying the company for three months. In 2024, Zoomlion charged an interest of GHS90 million.
The company delayed paying the sweepers for up to one year and did not have to show that it borrowed money to prefinance the contract, for which reason it charged the GHS 90 million interest.
The President said no further payments would be authorised without proper verification, and any unauthorised payments will be recovered.
He said the Cabinet had directed that future sanitation contracts be subjected to a competitive procurement process. “Rather than one national contract, there should be regional or district-based tenders for private firms,” he said.
He said this could reduce costs through competitive pricing and stimulate innovation, as companies compete on service quality to secure contracts.
“A cabinet subcommittee will develop the modalities for implementing this,” he added.
The President said with probable cost savings, the government intended to increase the sweeper fees to a more “liveable” income.
He said contracts that had not been performed satisfactorily would be reviewed and, where appropriate, terminated in accordance with their terms and upon the advice of the Attorney-General.
GNA
Edited by Samuel Osei-Frempong