The Ghana Audit Service has issued a surcharge against 35 contractors to pay $7.9 million (approximately GH¢94.6 million) to the state.

The amount was paid to them as mobilisation fees to execute Agenda 111 hospital projects on 19 sites. Out of the $11.16 million paid to the contractors, they together executed work valued at $5.96 million.

An additional $4.35 million was paid to 11 companies, who together executed up to $2.49 million of inception work, leaving $1.92 million of work not done before their contracts were terminated.

After receiving the various mobilisation sums paid between December 2021 and December 2024, some of the contractors (being surcharged) failed to move to the site, and others executed work less than 10 per cent of the value of the payments received.

The findings are contained in a validation review after a special audit into the Agenda 111 contracts sighted by the Daily Graphic.

The findings have compelled the Auditor-General, Johnson Akuamoah Asiedu, to invoke his constitutional powers to surcharge all 35 companies and individuals to recover the full amount.

The audit, which examined payment records and conducted physical inspections of project sites, uncovered a pattern where contractors received the standard 10 per cent of their contract sum as mobilisation, intended to fund preparatory works and expedite commencement, but delivered little to nothing in return.

Breakdown

Of the total amount, 24 contractors, whose contracts are still valid, are to refund $5.96 million because the work done is grossly inadequate compared to the mobilisation they received.

The report lists instances of payments for zero work. For example, at Adeiso, Imperial Homes, Grand Unique Company Limited and Terraefuoco Limited were paid $1.01 million, $81,074.40 and $130,910.19, respectively, but would have to refund every cent for executing zero work.

Similarly, Casa City Limited and Dynamic Access Limited received various sums to build a hospital at Agbogbloshie, but did no work.

The report lists other contractors to be surcharged for zero work to include 4G Building Technologies Ltd, which has to refund $1.07 million for doing two per cent of the $1.34 million mobilisation amount.

Other companies that executed no work after receiving mobilisation include Josano Limited, Asvas Company Limited, Ghire Limited, Concord Consult Limited, Delovely Company Limited, Osini Group Limited, and Noble Gen Limited.

In the terminated contracts category, Hallwort Ghana Limited, which was to build a hospital at Adabokrom, was paid $67,772.60 for no work, while Dominion Covenant Company Limited (Akrofuom) received $129,866.30, also for zero work executed, with Aarun-bis Company Limited, which was to execute a project at Bunkpurugu, carrying out no work.

One of the largest single payments for minimal work was $960,937.69 to Mendanha & Sousa, which was to build a hospital at Mankranso, carried out less than 10 per cent of the value of work before termination, leaving $375,702.30 to be refunded.

Similarly, Tk Waters Limited executed $571,112.89 of the $1.10 million of the mobilisation fee for the Nangodi hospital, leaving $530,513.11 to be refunded.

Other cases show payments massively outstripping progress. For instance, 4G Building Technologies Ltd was paid over $1.3 million, but had only achieved two per cent of work, leaving over $1 million to be refunded to the state.

Some companies, however, performed work close to the mobilisation sums received.

They include Rajar Engineering, which executed 9.8 per cent of the $937,724.53 paid for it to mobilise to Akatsi; Jaborah Construction Limited executed 9.7 per cent of the project in Akrofuom; Ark Express Ghana Limited performed nine per cent of the $129,866.30 mobilisation at Busunya, with Kofi Job Company Limited doing 8.63 per cent of the $1.43 million Bantama Sub-Metro Ampabame Agenda 111 project. 

“It is recommended that the Auditor-General invoke Article 187(7)(b) and surcharge the 35 Contractors the sum to which they have been given as a refund to the state,” the report stated.

Article 187(7)(b) of the Constitution empowers the Auditor-General to disallow any item of expenditure contrary to law and to surcharge the person responsible for the illegal payment.

Interview

In an interview with the Daily Graphic, the Auditor-General said his office had issued disallowance and surcharge notices to implicated contractors.

“After 14 days, if they fail to show cause, the money becomes a debt due and owing to the state,” Mr Asiedu said.

The Agenda 111 initiative, a flagship New Patriotic Party (NPP) government programme aimed at constructing 111 hospitals to improve healthcare access nationwide, has been under public scrutiny over delays.