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Press Release
NPP
December 22, 2015
Bawumia Raises More
Questions on Ameri & MMT Rebranding
Dr. Mahamudu Bawumia, NPP Vice-Presidential Candidate, has
cited the Karpower Deal, Ameri Power Deal, Rebranding of MMT
Buses and the Rehabilitation of the Kumasi Airport Runway as
some of the recent examples of the many corrupt deals which
have become the hallmark of the current Mahama – NDC
administration.
Speaking at the successful 15th Extraordinary Annual
Delegates Conference of the NPP in Sunyani on Saturday, Dr.
Bawumia mentioned that many of the projects under the NDC
administration are riddled with symptoms of corruption.
Dr. Bawumia had days earlier, on Thursday, questioned among
others, the Ameri Power Deal at a Lecture organized by the
Prempeh College Old Students Group in Kumasi.
“The issue of the Ameri Power Deal is the latest episode of
issues bordering on corruption and the failure to ensure
value for money for the people of Ghana.
“In this deal, Ghana is basically purchasing 10 Gas Power
Plants for $510 million even though the same Plants can be
acquired for 220million dollars on the market. The
government in this deal contracted a middle man – Ameri –
who also contracted another middleman – METKA to purchase
the Plants from the original manufacturers, General
Electric, though the government is clearly aware that
General Electric are the manufacturers and Ghana could have
purchased the plants directly from them”, he said.
Dr. Bawumia raised issues about why the government failed to
purchase the Power Plants from either General Electric or
METKA, since it is clear even from the Ameri Agreement, that
these two companies could have offered Ghana, a far cheaper
alternative.
“The government has claimed that the manufacturers of the
plant, GE would have provided the plant at a far more
expensive price.
“However, information available indicates that GE submitted
a proposal to VRA for a similar facility and this proposal
was found satisfactory by VRA. Unfortunately, VRA’s
precarious financial position could not permit it to enter
into a Rental agreement with GE. The VRA needed Government
support in terms of security and guarantee for the
transaction, which Government refused to give, the same
Government has however been able to issue the needed
security and guarantee under this Ameri deal. In the Ameri
deal, Ameri is buying the equipment from GE through Metka.
With this long chain of supply, can Ameri quote a price
lower than GE? How can a manufacturer’s price be more than
that of a retailer? Can the Government furnish the public
with copies of the GE proposal sent to VRA?” he queried.
Dr. Bawumia then touched on the role of METKA in the deal.
“METKA which is virtually executing the entire scope of
Ameri’s responsibility under the Agreement, i.e.
engineering, procurement, construction, building, operations
and maintenance of the plant, is doing so at a total cost
(with profit) of not more than $350million (payable in 5
years). Clearly, then entire plant could have been purchased
for at most $350million and paid for over the 5-year period.
So again, why did the Government not even procure this Plant
from Metka, since they could offer the same package for
$350million? What value is Ameri bringing to the table to
justify their $160million entitlement? This contract also
does not make sense”, he stated.
Dr. Bawumia finally touched on the Metro Mass Buses
Rebranding scandal and expressed worry over why government
had decided in the first place to spend taxpayers’ money on
rebranding the buses when government could have rather made
money for the country by allowing corporate entities to
advertise on the buses.
“We have also learnt that one of the latest government
projects is the rebranding of 116 Metro buses with pictures
of the President and former presidents at the cost of GHC3.6
million. Is this the best use of taxpayers’ money? Is
government not aware of the state of our hospitals for
example? The buses should rather be a source of revenue to
government because companies would be prepared to pay for
advertisements on the buses. This again does not make sense
and has corruption written all over it”, he noted.
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