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Sunday, August 23, 2009

Assembly orders contractors to refund overpayments


Posted : The Chronicle | Thu, 20 Aug 2009

By Charles Takyi - Boadu & Richard Kofi Attenkah

he Ledzokuku-Krowor Municipal Assembly (LEKMA) has issued a directive to all contractors who were overpaid their original contract sums, to refund the monies.

These include monies which were paid in excess of their original cost quotations before the contracts were awarded to the contractors, and the companies involved.

In the absence of this, the Assembly, which is currently saddled with a huge debt of over GH¢600,000.00 to various contractors, has threatened to take the contractors and their companies to court.

This came to light following an audit conducted by state accredited valuers, Architectural and Engineering Services Limited (AESL), which was tasked by the Assembly to evaluate projects undertaken within the municipality, from the period of its inception till the end of the previous administration.

The Municipal Chief Executive (MCE), Daniel Nii Amartey Mensah, made the disclosure when he addressed the Second Ordinary General Meeting of the assembly at Nungua yesterday.

In one of such instances, he noted that AESL uncovered that the contract for the construction of the Sangodjor School building, which was originally awarded for a fee of GH¢49, 862.00, turned out to be GH¢138,557.75.

He however noted that up to date, the Assembly had overpaid the amount to the tune of GH¢87,585.72, with GH¢55,000.00 still outstanding.

In another contract, which was for the construction of a fence wall for the Northern Cluster of Schools, the MCE noted that the contract was awarded for GH¢107,944.00. Out of this amount, the Assembly had paid an amount of GH¢97,202.10.

Meanwhile, the AESL's evaluation of the project, indicated that it was supposed to have cost GH¢81,218.70.

He disclosed that none of these, and other projects undertaken by the Assembly within the period under review, which was valued at over GH¢2 million, went through tender, thereby going contrary to the provisions of the country's Procurement law.

According to him, the evaluations were done without the necessary laid down procedures such as drawings and other dimensions of the contract to determine the proper evaluation of the projects before they were given out.

As a result of this, the Assembly had written to the various contractors to inform them of the evaluated contract sums, and the need for them to make refunds to the Assembly.

It has also taken steps to terminate the contract for the construction of a six-unit classroom block at the Nungua Cluster of Schools, which was awarded to Messrs Ten Twins Company limited.

Mr. Mensah identified the issues of permanent office and residential accommodation for staff, high calibre of personnel at departments and units, including Works, Town and Country Planning and other decentralised departments of the assembly, as some of the challenges confronting LEKMA.

He also talked of challenges in the areas of development control, massive encroachment on public user lands, building without permit, unreliable and erratic water supply system in Teshie and Nungua, among others.

Of major concern to the MCE was the issue of incursions into Assembly's area of jurisdiction by the Tema Metropolitan and the Accra Metropolitan assemblies.

He accused these two assemblies of invading his territory to collect revenue.

The Deputy Minister of Youth and Sports, Nii Nortey Dua, expressed shock over the revelations made by the MCE, with regards to the way and manner in which contracts were awarded by the previous administration.

He thus cautioned members of the assembly to be wary in their dealings when it comes to the awarding of contracts, saying that the Mills-led administration would not condone any act of improper awarding of contracts.

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