PURC Blows GH¢30m On Boreholes

Sir John addressing the press

The New Patriotic Party (NPP) has accused the governing National Democratic Congress (NDC) of financing its campaign with funds generated through several dubious contracts awarded via sole sourcing to its cronies.

The party noted that a GH¢30 million contract, which involves the construction of 500 boreholes in some selected communities across the country at a unit cost of GH¢60,000, is being awarded by the Public Utilities Regulatory Commission (PURC) through sole-sourcing under a pro-poor water project.

But the cost involved is what has provoked the NPP to question the prudence of the deal.

At a media briefing in Accra, former General Secretary of the party Kwadwo Owusu Afriyie, aka Sir John, could not fathom why the construction of boreholes should qualify as an emergency to be offered on a sole-sourcing basis.

He indicated that “the price-tag for a mechanized borehole, according to players in the industry, should not be more than GH¢18,000, irrespective of the area or location,” insisting that “to drill a mechanized borehole ranges between GH¢12,000 and GH¢18,000 anywhere in Ghana on the open market.”

He quoted a company like Animax Drilling Company of Ghana, which according to him, quotes a mechanized borehole within the Greater Accra Region at GH¢14,000 and a maximum of GH¢18,000 is quoted for same in any part of the country, irrespective of area, location and soil make.

Concerns

It is in the light of these that Sir John concluded that “a Public Utilities Regulatory Commission letter dated 6th October, 2016, requesting for a ‘single-sourced procurement approval for PURC’s pro-poor water project shows the danger that our cash is in under Mahama.”

In the said letter, it is stated that “the commission is seeking approval to single-source contractors to construct boreholes in selected deprived communities.”

The letter continued, “The commission seeks to proceed with Phase II of the pro-poor water project which shall cover all ten [10] regions of the country and consist a total of five hundred [500] boreholes to be drilled and mechanized.” The total cost of the 500 boreholes is GH¢30 million.

Sir John commented: “This is four times, the market rate. Going by the maximum Animax quotation of GH¢18,000 per borehole in the remotest part of the country, the 500 boreholes would have amounted to GH¢9 million and not GH¢30 million.”

He claimed the contract offered on sole sourcing by PURC has been bloated by at least GH¢21 million.

The NPP alleged that the Mahama-led government had signed a fraudulent deal worth about $300 million for the supply of national security equipment, among others.

Mr Kwadwo Owusu Afriyie said the deal is one of many schemes created by the Mahama-led administration to siphon public funds for its campaign activities.

The NPP stalwart descended heavily on President Mahama and his NDC administration, questioning the amounts involved in the above-mentioned contracts.

“If we allow it to continue a day beyond January 7, 2017, there will be no future for Ghana. It would probably take us another generation to recover.”

For him, “The issue of over-bloated contract figures and excessive affinity for sole-sourcing has become synonymous with the John Mahama-led NDC government, which unquestionably has become avenue for state-sanctioned stealing of taxpayers’ monies.”

That, he said, was evident in the fact that “Pure acts of unbridled corruption, under the current government, has become the norm and appointees who engage in it are sometimes made to refund the loot at their very convenience and on their own appointed pace, while others are elevated by being offered cozy offices at the presidency with no defined responsibilities.”

The NDC has become a vehicle for creating, looting and sharing taxpayers’ monies: it as an obscene corrupt vehicle being driven by equal cabal of unrepentant socio-economic criminals whose only claim to fame is merciless dissipation of state resources.”

However, the PURC says the GH¢60,000 cost for one borehole is legitimate.

Director of Public Affairs for the Commission, Nana Yaa Gyantuah, told Joy Fm yesterday that the integrated nature of the planned project dictated the cost.

The boreholes would have electronic panels to power them, which are different from the ones drilled in various homes, she said.

She also explained that the boreholes are gritted water system which involve some geophysical studies and would be fitted with a pump house which would help community members to access the water.

Corruption By Sole-Sourcing

The NPP has vehemently accused the Mahama administration of abusing the country’s sole-sourcing procurement rules for personal gains.

Policy Advisor to the NPP flag bearer, Boakye Agyarko, told Citi Fm that government’s decision to practise procuring goods and services through sole-sourcing had resulted in the country getting bad competitive rates.

Mr Agyarko said an NPP government would restrict the over-reliance on sole-sourcing as a procurement tool to reduce corruption in the country.

By Charles Takyi-Boadu

 

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