The Ministry of Power has clarified a decision to purchase luxurious vehicles with money meant for rural electrification project.
According to an audit report presented to Parliament, the then Energy and Petroleum Ministry spent $1,745, 159 on 38 luxurious vehicles, which included Ford F150 truck, Lexus LX570, Chrysler 300, Dodge Dakota SLT, and Grido Ford 5150.
[contextly_sidebar id=”f0iYe6WHesTGkwgxPBDMptlq5n7lNJPt”]The amount according to the report was meant to extend electricity to about 1,200 communities in the country between 2010 and 2012 under the Self Help Electrification Project (SHEP).
The Ministry of Power explained that the money was from a US$350 million US EXIM facility stated the a clause in the facility agreement demanded that vehicles and materials needed to facilitate the project should be procured from the United States.
They noted that negotiations for the facility started in 2006 and ended in 2009 after going through cabinet and Parliament.
“Under the US EXIM funded facility (which is being executed by Weldy Lamont Associates) 85% of all project-related materials, including vehicles, must be procured from manufacturers in the United States of America,” they stated in a statement signed by by Edward Bawa, Head of Communications at the Power Ministry.
According to Bawa, an audit by the then Energy and Petroleum Ministry which showed that the country saved about US$46 million following a review of the prices of some of the materials.
“Following the value for money audit in 2009 and reduction in scope of work in some communities, among others, it was expanded to cover 2,130 communities in Ashanti, Brong Ahafo, Western and Central Regions. So far, about one thousand communities have been connected and the project is ongoing” the statement said.
It also stated that “this resulted in the construction of new substations in Kintampo and Mim as well as the expansion of the Sunyani substation. Local content was also increased from the originally agreed 15% figure to 30%. This enhanced the participation of Ghanaian-owned companies.”
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By: Godwin Allotey Akweiteh/citifmonline.com/Ghana