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31 August 2017

We didn’t inflate waste bin contract – Jospong Group

Jospong Group, owners of waste management firm, Zoomlion and other subsidiaries, has described as malicious recent claims that it inflated the cost of a contract it had with the previous National Democratic Congress (NDC) government to supply waste bins.

The Group in a statement copied to citifmonline.com, said Accra-based Joy FM as well as other media platforms that carried the allegations, must apologize or risk being challenged to provide ample evidence to substantiate the claims.

It said the report is a calculated attempt to tarnish its image.

“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,” it said.

A report on Joy FM earlier this week indicated that Universal Plastic Product and Recycling Ltd, a subsidiary of the Jospong Group of Companies, and four other firms all belonging to the Jospong group, had overpriced a contract to supply 1 million waste bins and 900,000 packs of disposable bin liners to the country by about Ghc130 million.

The report said the company sold each of the 240litre bin to the state at GH¢258 when an invoice from the same company showed that the actual price was GH¢135.

The directive to supply the bins was given by the Office of the President at the time, through sole sourcing procurement method.

Responding to the specific claim of bloated cost, it said, the “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.

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.”

 

Read excerpts of the company’s statement below:

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 Manasseh 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

By: Jonas Nyabor/citifmonline.com/Ghana

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