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31 August 2017

Jospong Group discredits report on ‘inflated contract’


Jospong group of companies has described as “malicious and calculated” an investigative report by Accra-based Joy FM which claimed among other things that the company’s contract with the Government of Ghana to procure waste bins for distribution to household across the country was inflated.

The contract was was awarded to the Jospong group last year by the John Mahama-led administration to procure some one million waste bins for distribution to all households.
Below is the full statement in response to the claims:

Our attention has been drawn to reports on JOY FM and its other sister stations since Monday 28th August 2017, imputing wrongdoing in the award of contract to some subsidiaries of the JOSPONG GROUP with particular reference to the fact that the quoted sum of $74,040,000 is inflated. The inaccurate report carried by the Multimedia Group on its various platforms purported to be an investigation by your reporter Manasseh Azure Awuni is unfortunate.
We respond to the specific allegations as follows:
1. Allegation of Inflated price
That the price is inflated is misconceived and misleading. Firstly, this agreement is a Pre Financing and Credit Sale contract. The total number of waste bins to be supplied under the initiative is 1,000,000 at a supply rate of $60 per piece (to be paid at the prevailing Bank of Ghana interbank exchange rate) plus 900,000 (nine hundred thousand) pieces of Biodegradable Bin Liners at $15.60 per piece. The total contract sum of 74,040,000 United States Dollars was to be pre financed by the companies, which therefore allowed the Government of Ghana flexibility payment terms for a period of 24 months. Definitely a cash sale has different terms as compared to a credit sale.
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i. Further to the production cost involved in the above, a major component of the contract is the transportation and distribution of the bins to households within the 216 districts in Ghana by the companies involved which has additional cost implications, and same was factored into the pricing.
ii. It should be noted, contrary to claims, the bins are durable; coming with a replacement warranty and a competitive price to the international market price.
1. Allegation of payment of the contract sum.
i. It must be placed on record that none of the five companies has supplied any item under the contract and neither has any payment been made by the Ministry of Local Government to the said companies.
3. The reports and statements in the Multimedia Group, authored by Manasseh Azure Awuni, to the effect that the contract price has been inflated in excess of one hundred and thirty million Ghana cedis (GH¢130,000,000.00) is, therefore, grossly misleading and unfortunate to say the least. Clearly, there was no wrong doing in the procurement or award of the contract.
4. Splashing pictures of waste bins
We wish to state categorically that the references made to waste bins in the district with pictures displayed online by Joy FM were meant to mislead the public that, because some assemblies have not distributed existing bins, there was no need for distributing the bins as required by the contract is unfortunate.
It should be noted that, The One million Bins Distribution Programme is meant to ensure that households in Ghana have bins to enhance waste management, disposal and collection in all communities. Currently, the lack of such bins in houses is leading to poor waste disposal and indiscriminate dumping of waste generated daily.
On the face of the evidence, we deem the publication in question by the Joy FM and Manaseh Azuri Awuni as malicious and calculated to tarnish the hard-won reputation of the Jospong Group, the Chief Executive and its subsidiaries.
Accordingly, we call on Joy FM and its sister stations to retract the defamatory statements made against the Jospong Group and the Chief Executive of the Jospong Group, Dr. Joseph Siaw Agyepong, within three days upon receipt of this rejoinder, failing which the company may be constrained to take any further action that it deems appropriate without further recourse to the Multimedia Group.
You may kindly contact the undersigned for further clarification
Sophia Lissah
SIGNED
Group Head of Communication
Jospong Group of Companies
slissah@jospongroup.com








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