Foreign Affairs Ministry justifies spending GH¢7m on a GH¢1m project
The Ministry of Foreign Affairs has justified its decision to spend over GH¢7 million on a project that was expected to cost a little of GH¢1 million cedis.
In a statement, the Ministry described media reports on the project as inaccurate and detailed reasons that accounted for the project shooting up to GH¢7 million.
Appearing the Public Accounts Committee in Parliament, on Friday, January 20, the Foreign Affairs Ministry said the project that was initially supposed to cost the government GH¢1,435,728.99 was executed at GH¢7,967,886.57 because the contractor did not execute on time due to ill health.
The contract for the rehabilitation of Adu Lodge Guest House was awarded to International Development Resources on March 15, 2007.
But according to the Acting Chief Director of the Ministry, Ambassador Ramses Joseph Cleland, the project came to a grind a year later due to the ill health of the contractor.
The Ministry said the project was revisited in March 2019 and upon the request of the consultant, was re-valued to GH¢7,967,886.57 for the same contractor to execute.
But the Foreign Affairs Ministry in an attempt to set the records straight said the original award to Messrs International Development Resources (IDR) on 15th March 2007 by the Architectural Engineering Services Limited (AESL) was to demolish the originally existing 3 buildings that constituted the Lodge, at the time, and construct a new building of twelve (12) bedroom at a contract sum of Fourteen Billion, Three Hundred and Fifty-Seven Million, Two Hundred and Eighty-Nine Thousand, Seven Hundred and Seventy old Ghana cedis (14,357,289.77), equivalent to One Million, Four Hundred and Thirty-Five Thousand, Seven Hundred and Twenty-Eight new Ghana Cedis, Ninety-Eight Pesewas (GH01,435.728.98) after the redenomination of the Cedi in July 2007.
The contract sum was, however, revised in October 2011 to an amount of Four Million, Four Hundred and Thirty-Two Thousand, Five Hundred and Fifty-Eight Ghana Cedis, Seventy pesewas.
Below is the full statement by the Foreign Affairs Ministry
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