The Chief Executive Officer of the Komfo Anokye Teaching Hospital (KATH), Dr Paa Kwesi Baidoo, has disclosed that the hospital’s Sickle Cell and Blood Bank project has stalled due to a $1.6 million legal dispute between the Ghana National Petroleum Corporation (GNPC) and the contractor.

He made the disclosure when he appeared before the Public Accounts Committee (PAC) on Thursday, October 8, to provide an update on the project, which had been raised in the hospital’s previous audit report.

Dr Baidoo said the project was being sponsored by GNPC, with the Ghana Sickle Cell Foundation playing a leading role in discussions towards its implementation.

He said KATH had subsequently written to the foundation requesting that the project be handed over to the hospital if GNPC was no longer prepared to fund it.

“We've written to the Sickle Cell Foundation to let us have the project if the GNPC is not ready to fund it,” he said.

Dr Baidoo added that he had also met the Chief Executive Officer of GNPC to appeal for action to be expedited, given the importance of the project to the hospital.

However, he said efforts to move the project forward had been complicated by a legal dispute between GNPC and the contractor, which was before the courts.

“They have some legal issues between the contractor and GNPC, which they are resolving in the courts,” Dr Baidoo said.

Contractor demands $1.6m

Dr Baidoo explained that the contractor had resorted to legal action after the project made no progress since 2022.

“The project since 2022 hasn’t seen any progress, so the contractor went to court demanding $1.6 million from GNPC,” he said.

He said GNPC had indicated that up to $2 million would be required to complete the project and would prefer to use the funds to complete the facility rather than pay the contractor as a judgment debt.

“GNPC is saying they have up to $2 million that is needed to complete their project. And they would rather give it to their contractor to complete their project instead of their judgment debt,” he said.

Dr Baidoo said KATH was taking steps to encourage GNPC and the contractor to resolve the dispute and allow work to resume.

“And that’s why we said these legal issues are beyond my pay grade,” he added.

PAC demands evidence of follow-up

The explanation prompted PAC Chairperson Abena Osei-Asare to question the extent of KATH’s efforts to resolve the matter, particularly as the project was reportedly 72 per cent complete.

She demanded evidence that the hospital had formally written to GNPC and followed up on the matter.

“I don’t think you did anything. You just went to sleep. You just went to sleep,” she said.

Ms Osei-Asare questioned why the remaining 28 per cent of the project had not been completed and warned that prolonged abandonment could increase the eventual cost of completion.

“When we abandon the project for a long time, it increases the cost of completion,” she said.

She also rejected reliance on verbal explanations concerning the legal dispute and insisted that KATH provide formal correspondence to support its account.

“Usually, we don’t use our mouth to talk about legal issues. We should see formal letters from you to GNPC and for GNPC to respond, say that I have received your letter and this is our position,” she said.

“But to come and just say by word of mouth that this is it, respectfully, that is not the way to go,” she added.

Ms Osei-Asare further criticised KATH management over its 2024 report, accusing the institution of failing to address the issues as expected.

She nevertheless assured the hospital that the committee would work with management to resolve the outstanding matters.