One of the DRIP machines
The District Assemblies Common Fund (DACF) has exposed the Member of Parliament (MP) for North Tongu, Samuel Okudzeto Ablakwa, over lies about the purchase of the District Road Improvement Programme (DRIP) machines.
The DACF, responding to allegations over the cost of the equipment, indicated that the supplier of the DRIP equipment was J. A. Plant Pool, who was awarded the contract.
“Quotations were sought from local companies dealing in similar equipment such as Zonda Tec Ghana Limited. Consequently J. A. Plant Pool quotation was competitive with favourable terms.
Zonda Tec Ghana Limited and others were asking for cash purchase transaction at a retail level. Whilst J. A. Plant was dealing directly with the manufacturer, Liugong, Shacman, etc.,” it said.
The DACF further explained that the total cost of the equipment and other specified ancillary services was $178.7million, of which 15% advance mobilisation representing about $26.805million was paid.
In addition, the DACF said a three-month moratorium was given after mobilisation and the balance amount to be paid in nine equal monthly instalments after delivery in Government Bills.
“A two-year Letter of Credit (LC) was established by the supplier and his bankers to allow for enough time to make payment of any consideration at no additional cost,” it further noted, stressing, “DRIP equipment was tailored made for the programme with high superior specifications and standard comparable to European standard. It is therefore not the same as any quotation for equipment that has been advertised on any website.”
It thus noted that it never said in their response to the Minority Caucus nor to Mr. Ablakwa that it did not have funds to pay for the DRIP equipment.
Indeed, information gathered by DAILY GUIDE indicates that the DACF has ring-fenced about GH¢3billion out of its outstanding arrears over the years to cater for the DRIP expenditures, and this was presented in Parliament for approval and was approved.
Equipment Purchased
The DACF also noted that the equipment purchased under DRIP was 2,420 machines at $178.7, representing about GH¢2.8billion at an exchange rate of GH¢15.668 compared to the NDC equipment purchased in 2014 totaling Euros 27.795million for 60 construction equipment and machinery.
“Converting Euros 27.795million to Dollar in 2014 was about $36.797million at an average rate of $1.3284. At the current average rate of $1.05 in 2024, the dollar equivalent is $29.085million at current exchange rate of $17.1 amounting to GH¢497.353million.
“All things being equal, the unit cost per equipment under the NDC administration was USD 484,750 representing about GH¢8,289,225 at the current exchange rate of GH¢17.1,” it said.
The DAF therefore noted that “it is disingenuous to take a quotation from Liugong website to compare prices with a customised equipment that have been specifically tailored for our needs.”
“The manufacturer has provided comprehensive after Sale Service facilities with about thirty (32) Mechanical Technicians from China to support the equipment maintenance for two years at no additional cost to the DRIP programme.
“Additionally, two years warranty/guaranteed period after sales at no additional cost as part of the package, free (Telematic) Tracker Monitors on each equipment for monitoring and control of the equipment movements and free training of 70 Ghanaian Operators/Technicians in China as a back-up technical know-how for sustainability and continuity of the DRIP Programme and technology transfer,” it stated.
The DACF further noted that the equipment were assembled locally to create jobs for Ghanaians and technology transfer, with fully equipped maintenance support garages and spare parts in every region to support the DRIP initiative.
A Daily Guide Report