The Manager of Governmental Affairs at Zoomlion Ghana, Ernest Morgan Acquah, has defended the company's government contracts, saying that payments for waste collection and sanitation services are "woefully inadequate" and have become even more difficult to access due to changes in the payment system.

Speaking in an interview on Joy FM's Super Morning Show on Wednesday, July 15, Morgan responded to questions about the cost of sanitation contracts, insisting that public perception of the payments does not reflect the realities of running waste management operations.

He explained that district assemblies pay an average of GH¢113,000 per quarter for waste collection services.

"So an average amount of GH¢113,000 ... it's paid per quarter," he said.

Mr Acquah said the quarterly payment translates to about GH¢37,000 a month.

"If you divide this by three... you are going to have thirty-seven thousand six hundred and sixty-six, so that's roughly thirty-seven, thirty-eight thousand that is what we are paying per month," he explained.

According to him, each assembly operates an average of 11 waste containers, meaning the monthly payment works out to about GH¢3,400 per container.

Mr Acquah said that if every container is emptied daily over 30 days, the payment amounts to only GH¢114 per lift.

"If you are lifting a container every day... you are going to have GH¢114 for lifting a container. If you rent a skip truck, how much will it cost you?" he asked.

The programme host challenged the calculation, suggesting that the cost of purchasing equipment such as trucks should be spread over their expected lifespan through depreciation.

In response, Mr Acquah maintained that, even after considering such calculations, the payment remains insufficient.

"That is why I mentioned that the amount is woefully inadequate," he said.

He explained that Zoomlion had managed under the previous payment arrangement because the government paid the contract sums as lump sums, allowing the company to secure bank financing.

"We were comfortable, and we were managing this because we were getting these amounts lump sum, so you can use that to even go to the banks for a loan," Mr Acquah said.

However, he said that the payment system has since changed, with funds now channelled through the various Metropolitan, Municipal and District Assemblies (MMDAs), making access to the money more difficult.

"It has been moved to the various assemblies. As we speak, the third-quarter payment from last year has not been paid. And the money has moved from the common fund to the various MMDAs."

"How can you take GH¢113,000 to any bank for a loan?" he asked.

He said the company's growth over the years had been supported by its ability to use government contracts to obtain financing for investment in additional services.

"Zoomlion has grown because we were going for loans. We were using these lump sums and contracts to apply for other things. That is why we have moved from the normal sweeping to 360 waste management," he stated.