Ministry of Power clarifies issues about luxurious vehicles
The Ministry of Power has clarified media reports that it deliberately purchased luxurious vehicles with money meant for rural electrification.
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According to the ministry, the purchase of the vehicles valued at $1,745,159 was approved by Parliament in 2008 as part of a $350 million US Exim Bank facility.
It said that the then Energy and Petroleum Ministry spent the amount on 38 luxurious vehicles, which included Ford F150 truck, Lexus LX570, Chrysler 300, Dodge Dakota SLT and Grido Ford 5150 for the inspection of rural electrification projects.
This was contained in a release signed by the Head of Communications, Mr Edward Bawa, in Accra.
Auditor General’s report
A recent Auditor General’s report said the $350 million was meant to extend electricity to about 1,200 communities in the country between 2010 and 2012 under the Self-Help Electrification Project (SHEP) but the release explained that, “Under the US Exim-funded facility, being executed by Weldy Lamont Associates, 85 per cent of all project-related materials, including vehicles, must be procured from manufacturers in the United States of America. Note that the US Exim facility helps create and maintain US jobs by financing the sale of US exports primarily to emerging markets throughout the world by providing loan guarantees, export credit insurance and direct loans.
“The said vehicles, which were negotiated as part of the project prior to 2009, were delivered in 2010,” the release explained.
Value for money audit
It added that negotiations for the project started in 2006, noting that in early 2009, when a new minister of energy assumed office, he carried out a Value for Money audit as a condition precedent for contract effectiveness.
“After four rounds of hectic negotiations between the government of Ghana team and the contractor, Weldy Lamont Associates, the price of materials was reviewed downwards, saving the country about US$46 million.
“This resulted in the construction of new substations in Kintampo and Mim as well as the expansion of the Sunyani substation. Local content was also increased from the originally agreed 15 per cent figure to 30 per cent. This enhanced the participation of Ghanaian-owned companies,” it said.
Following the Value for Money audit in 2009, the release said the project was expanded to cover 2,130 communities in Ashanti, Brong Ahafo, Western and Central regions, adding that so far, “about 1,000 communities have been connected and the project is ongoing.”