According to Zoomlion, the move is a very commendable saying it will “serve as a blueprint for other modules going forward.”

The sanitation management company however used the opportunity to clarify some supposed misconceptions raised by the YEA prior to and during the announcement of the restructuring.

[contextly_sidebar id=”eT4Z0ZyJlbckrYWRfGb7NTDXDgW9fRJ5″]The management of the YEA served notice it will take on new service providers to handle its Youth in Sanitation Module from June this year [2018], when the government’s contract with Zoomlion expires.

According to the Chief Executive Officer of the Agency, Justin Koduah, the decision has become necessary as an assessment of Zoomlion’s services rendered to successive governments since the company was established in 2006, showed indicated that the current arrangement is not satisfactory.

“With particular reference to the sanitation module managed by Zoomlion Ghana Limited, the Agency over the past year has been reviewing Zoomlion’s activities particularly on the internal administrative functions, models ran by the agencies and its relationship with the service provider,” he said.

Disparity in numbers of beneficiaries 

Mr. Koduah also raised issues with the number of people engaged by Zoomlion under the module saying the number of people they have independently verified is far less than the figure presented by Zoomlion.

He said whereas Zoomlion provided them with about 45,320 names they [YEA] were only able to verify some 38,884 people after a headcount.

But a statement from the Communications Directorate of Zoomlion described some of the claims by YEA as “erroneous.”

With regards to the disparity in the number of registered beneficiaries under the sanitation module, Zoomlion defended the figure saying they have provided enough information to the YEA to that effect.

“Zoomlion wish to state that the company’s number is captured in an album with the names, pictures and other details of beneficiaries for verification purposes. The shortfall however occurred as a result of a mixture of reasons, which the CEO of YEA, Mr Justin Kodua Frimpong has himself alluded to in a couple of media interviews,” a statement from the company said.

Zoomlion added in its statement that several issues including long distance had prevented some of the beneficiaries from attending the headcount.

We don’t pocket GHc400 from each beneficiary

Zoomlion has also been accused of pocketing GHc400 out of GHc500 every meant for the payment of beneficiaries; a claim the sanitation management giant dismissed.

It explained that the remaining GHc400, known as Management Service Agreement, is used for the procurement of logistics including wheelbarrows, shovels, brooms, rakes, among others used by the beneficiaries; a directive initiated by the YEA itself.

“Further to the Management Service Agreement, the GHc400 management fee which has not been reviewed since 2011 goes into the procurement of Logistics for the delivery of the service by the YEA operatives. The assumption that this money goes into the pocket of the service provider is therefore very erroneous!”

“The following are some of the logistics the money goes to buy: Wheelbarrows, shovels, brooms, rakes, cutlasses, alley brooms, jackets, spades, uniforms, hand gloves, nose masks, reflective jackets, safety boots, pickers, street brush, road cones etc. These are supplied regularly and are all paid from the management fee. Apart from these, vehicles to carry supervisory staff including fueling the vehicles are all covered from the Management Fee,” the statement added.

Zoomlion also complained about the delay in reimbursing it for its services saying it affects their operations.

“Zoomlion has for countless years had to pre-finance the payment of these allowances of beneficiaries by borrowing money at high-interest rates but at no cost to the government due to delays in its payment.”

“Presently, payments to the company is in arrears of over four years running in millions of cedis,” the statement added.

Below is the full statement from Zoomlion:

ZOOMLION IS HAPPY WITH ANY RESTRUCTURING OR REVIEW OF SANITATION MODULE OF YEA

The Management of Zoomlion Ghana Limited wish to commend the Management of the Youth Employment Agency for its plans to restructure the Sanitation Module of the Youth Employment Programme to serve as a blueprint for other modules going forward.

Without preempting any further discussion on the review or restructuring of the module, management however feels compelled to make some clarification on the following issues raised at the YEA press briefing yesterday.

1. Disparities in reported beneficiary numbers versus physical count-That 38,884 beneficiaries turned up for the counting exercise by YEA as against the 45,320 recorded by managers of Zoomlion Ghana Limited.

Zoomlion wish to state that the company’s number is captured in an album with the names, pictures and other details of beneficiaries for verification purposes. The shortfall however occurred as a result of a mixture of reasons, which the CEO of YEA, Mr Justin Kodua Frimpong has himself alluded to in a couple of media interviews.

i. Beneficiary Apathy: Prior to the Agency’s exercise, there had been series of headcount exercises conducted by 1) the Agency’s regional and district representatives together with Zoomlion Ghana Limited, 2) District Assembly Common Fund (DACF) directorate, 3) the various Metropolitan, Municipal and District Assemblies (MMDA’s) and Zoomlion Ghana Limited within a period of two (2) months with the objective of ascertaining the true numbers of the beneficiaries. In all these exercises, the beneficiaries had to commute back and forth from their communities to the district capitals and this may have led to the comparatively low turnout as compared to the numbers of beneficiaries in the album provided.

ii. Late arrival or ‘no show’ of the Head count team from the Agency to some of the centers. This situation led to most of the beneficiaries leaving the centers out of frustration. A situation which seriously accounted for the team not meeting all beneficiaries to get them to be counted.

iii. Short notice to the beneficiaries by the Agency upon the team’s arrival in the district caused beneficiaries in the hinterlands to miss the headcount. An example of this happened in Ejura Sekyere-Dumase District

iv. Transportation: Most of the communities have means of transport to the district capital only on market days therefore it became difficult to travel to the district capital when it is not a market day a case in point is Bole-Bamboi and Bunkpurugu yooyoo Districts in the Northern Region. Beneficiaries also had challenges regarding payment for transportation to headcount centres at the district/municipal capitals and this greatly affected the turnout of beneficiaries to the exercise.

v. Zoomlion spent more hours spanning a day to two days at particular headcount centres to ensure that no one was left out compared to the Agency which spent some few hours in a day and hurriedly counted beneficiaries they met and left this resulting in the discrepancy.

2. Issuing of Appointment letters to Beneficiaries.

Since the inception of the Programme in 2006, under the National Youth Employment Programme (NYEP), Zoomlion has never issued any appointment letter to any beneficiary under the sanitation module. Per the Management Service Agreement, employment of the beneficiaries is the sole responsibility of the Agency who then have the mandate to issue appointment letters.

3. Payment of management fee

The decision to pay beneficiaries Gh¢100 per month out of the Gh¢500 Management fee was not the initiative of Zoomlion Ghana limited. In fact, at the inception of the module in 2006, beneficiaries were receiving Gh¢50 per month, it was the management of Zoomlion that initiated the move for the allowance to be increased to Gh¢100. So the same Agency which set the initial amount is the only one that has the authority to change it.

Misconception over the Management Fee to Zoomlion

Further to the Management Service Agreement, the Gh¢400 management fee which has not been reviewed since 2011, goes into the procurement of Logistics for the delivery of the service by the YEA operatives. The assumption that this money goes into the pocket of the service provider is therefore very erroneous! The following are some of the logistics the money goes to buy:

Wheel barrows, shovels, brooms, rakes, cutlasses, alley brooms, jackets, spades, uniforms, hand gloves, nose masks, reflective jackets, safety boots, pickers, street brush, road cones etc. These are supplied regularly and are all paid from the management fee.

Apart from these, vehicles to carry supervisory staff including fueling the vehicles are all covered from the Management Fee.

Zoomlion has for countless years had to pre-finance the payment of these allowances of beneficiaries by borrowing money at high interest rates but at no cost to the government due to delays in its payment. Presently, payments to the company is in arrears of over four years running in millions of cedis.

Submission of Reports

The company has since 2006, religiously submitted quarterly and annual reports to the management of the YEA, and has never had any correspondence from the Agency acknowledging receipt or questioning the quality of work being done.

Conclusion

Zoomlion Ghana Limited has over the past 12 years been at the forefront of ensuring that Ghana is clean, green and healthy. Over, this period the company has built experience, capacity and logistics to serve the country in as much as we can to ensure that the President’s vision of making everyday a sanitation day and Accra the cleanest city in Africa a reality.

By dint of hard work and its service excellence, the company which has won several awards both local and international has operations in other countries including Angola, Zambia, Togo, Equatorial Guinea and Liberia.

Communication Directorate

Zoomlion

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
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This follows four years of legal battle where state prosecutors and defense lawyers have been putting forward evidence before the court to advance their claims.

[contextly_sidebar id=”tfWALdKQNuFV13ZPy7SkZxahXr2opv4y”]While Abuga Pele has been charged with abetment of crime, intentionally misapplying public property and willfully causing financial loss to the state, Philip Assibit is facing charges of defrauding by false pretense and dishonestly causing financial loss.

The two men are alleged to have connived to defraud the state of some 4.1 million cedis.

They have pleaded not guilty to the charges leveled against them.

GYEEDA scandal

In the case scandal that hit the now Youth Employment Agency (YEA), some companies including Zoomlion Ghana Limited, RLG, Asongtaba Cottage Industry Limited and Better Ghana Management Services Limited among others, were contracted to render services under various modules for the GYEEDA programme.

Following reports of the siphoning of state funds under GYEEDA, the government in 2012 ordered an investigation into its activities and subsequently terminated the contracts with the various companies.

The former GYEEDA National Coordinator, Abuga Pele was also hauled before a court to answer for the reported malfeasance under his tenure.

Abuga Pele has since pleaded not guilty to two counts of abetment of crime, intentionally misapplying public property, and five counts of willfully causing financial loss to the state in the ongoing trial.

Mr. Pele, the MP for Chiana Paga in the Upper East Region at the time, said there was a conspiracy to use him as a ‘sacrificial lamb’ for the multi-million cedi corruption scandal, whiles those supposed to have been charged are walking free.

Gov’t blacklists RLG, others

In December 2015, Government supposedly blacklisted companies indicted in the corruption scandal that hit GYEEDA, which included big names like Zoomlion and RLG.

The announcement was made by the then Minister of Employment and Labour Relations, Haruna Iddrisu. However, the companies said there was no such blacklisting by government.

For many observers, the slow pace of the trial was an indication that the government was not genuinely interested in prosecuting the case, and that they were doing so to protect their people.

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By: Fred Djabanor/citifmonline.com/Ghana

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YEA says the decision has become necessary following its assessment of Zoomlion’s service rendered to successive governments since the company was established in 2006.

[contextly_sidebar id=”Xhps3Yf0Pn1zCmdIk6fiWFBG8a3VXYCm”]Addressing a news conference today [Wednesday], the Chief Executive Officer of the Agency, Justin Koduah, said the current arrangement with Zoomlion is not satisfactory.

“With particular reference to the sanitation module managed by Zoomlion Ghana Limited, the Agency over the past year has been reviewing Zoomlion’s activities particularly on the internal administrative functions, models ran by the agencies and its relationship with the service provider, ”he said.

In this regard, YEA is to open up the bid in June for new sanitation service providers including Zoomlion to apply if they are interested.

Justin Koduah noted that, YEA was not satisfied with Zoomlion after it verified details of the contract such as the number of beneficiaries under the sanitation module.

“The agency conducted a verification between June and September last year [2017], the aim of the exercise was to ascertain the number of beneficiaries on its [Zoomlion’s] various module,” he said.

When the NPP came into office in 2017, the YEA suspended payment of allowance to 60,000 of beneficiaries, following a suspicion of discrepancies in the report handed to it by managers under the previous administration.

The Youth Employment Agency (YEA), directed Zoomlion Ghana Limited to furnish it with a database of some 45,000 beneficiaries under the agency’s sanitation module.

According to the Agency, the directive was in line with a restructuring process to take inventory of all modules. However till date, Zoomliom has not made those figures available. This means government may not pay the company for services it rendered to the state.

“Zoomlion Ghana Limited started the sanitation module back in the days of NYEP through to GYEEDA era, and from the transition from GYEEDA to YEA, there was a missing gap because even the management that we took over from, when we asked them about those files, they were complaining that during their era there was no direct link or communication between them and the service provider, and mostly payments for work claimed to have been done were paid without recourse to YEA management, and to them they have no contract with Zoomlion Ghana limited.”

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By: Farida Yusif/citifmonline.com/Ghana

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This was revealed at the signing of a service agreement between the Forestry Commission and the Youth Employment Agency (YEA), in which the YEA would serve as the recruitment agency for the Commission.

The Chief Executive Officer of the Forestry Commission, Kwadwo Owusu Afriyie, signed the service agreement on behalf of his outfit, while the YEA’s CEO, Justin Kodua, also endorsed the document.

The signing, which took place at the headquarters of the Forestry Commission in Accra, had staff of both the Forestry Commission and the YEA in attendance.

Per the agreement, the YEA will commit about 44 million cedis, whilst the Forestry Commission also commits 60 million cedis towards the remuneration of the beneficiaries.

The employment is expected to span a period of two years, and will come with a monthly remuneration of Ghc400.

Speaking to Citi News, Forestry Commission CEO, Kwadwo Owusu Afriyie, said ‘They are going to be engaged in farming and the forest areas that we have earmarked on [populace management], others are going to be in reforestation and so and so forth. We are employing the youth; the essence is the youth because the job involves people who are a little bit stronger which is why the YEA is partnering us. After the two years, we are going to ensure that they have permanent jobs.”

“The graduates would be used for monitoring and [other tasks], but majority of those who are going to be employed would be employed on the farms. So we are going to give hope to the people who otherwise do not have certificates that people are asking them to bring here and there.  When they are employed, we will give them orientation,” he added.

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By: Michael Ogbodu/citifmonline.com/Ghana

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According to the Agency, the directive is in line with a restructuring process to take inventory of all modules.

Chief Executive Officer of the Agency, Justin Kodua, told Citi News that the sanitation module is the only one whose database is not available to his outfit.

[contextly_sidebar id=”5AvuIRxb003CDdfCD2D3mzhqbnTo9FeS”]He added that, the Agency will take legal action against Zoomlion should it fail to provide the database on all the 45, 000 beneficiaries who are paid by the Agency.

“Zoomlion Ghana Limited started the sanitation module back in the days of NYEP through to GYEEDA era, and from the transition from GYEEDA to YEA, there was a missing gap because even the management that we took over from, when we asked them about those files, they were complaining that during their era there was no direct link or communication between them and the service provider, and mostly payments for work claimed to have been done were paid without recourse to YEA management, and to them they have no contract with Zoomlion Ghana limited.”

Mr. Kodua said during a board meeting held on September 22, 2017, the YEA management was ordered to provide “comprehensive verification” of the 45,000 beneficiaries.

He added that, if the data they receive from Zoomlion does not tally with the 45,000 beneficiaries “I can promise you that any amount of money that has been paid to Zoomlion, we will take the necessary legal actions against them the service provider.”

The CEO said about eight different resolutions were passed at the meeting which included the suspension of allowances of board members, chief executive officer and all staff of the agency for a review.

“The board met on 22^nd September and passed several resolutions. There are about eight resolutions that were passed. Some included that henceforth, allowances which have to do with level eight to thirteen including the board of directors, the CEO and the deputies, have been suspended for review. The board wants to take a second look at it.”

“As it stands now, there are some people who are supposed to have been captured, but have not been captured, and also allowances are also paid without looking at the role the person plays within the Agency, so they want to suspend it and have a review before restoring it again,” Mr. Kodua added.

YEA deletes 18,000 names from payroll

YEA in May 2017, deleted 18,000 names from its payroll following the some discrepancies found on the Agency’s payroll system.

YEA said the allowances were suspended when it discovered that some 2,999 beneficiaries were not at post, but continued to draw allowances for no work done, while too many beneficiaries used the same E-Zwich numbers.

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By: Godwin A. Allotey & Naa K. Siaw-Marfo/citifmonline.com/Ghana
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The Agency will also undertake the verification of the number of beneficiaries under the sanitation module, according to a memo sighted by Citi News, in following a management meeting in September 2017.

[contextly_sidebar id=”okpr32DACLmsHDB41MeL9VJ5nrVVHv8O”]As part of this, Zoomlion Ghana Limited is to furnish the YEA with the database of 45,000 beneficiaries.

Management has also resolved to take steps to pay allowances due staff from June to September 2017.

Suspended allowances

The allowances of Board Members, the CEO, Deputy CEOs and certain staff have also been suspended temporarily for review.

The YEA Management has also been directed to take steps to pay allowances due staff from June, 2017 to September, 2017.

A group calling itself the Coalition of Youth Employment Agency beneficiaries threatened to demonstrate over the matter in July.

The YEA management in April suspended payment of allowances to over 60,000 beneficiaries, after it had detected supposed fraudulent activities, including allowances to thousands of people who do not work for the agency.

The YEA was established under the Youth Employment Act 2015 (Act 887) to empower the country’s youth between the ages of 15 to 35 years,  through skills training and internship modules to transit from a situation of unemployment to that of employment.

As at December 2012, over 600,000 beneficiaries had been recruited by the YEA, which has 10 modules.

Find below the full memo

Management wishes to bring to the attention of all staff that, at the Agency’s Board Meeting held on 22nd September, 2017, the following resolutions/decisions were made, and all staff are to take note and comply accordingly:

• The provisions in the Conditions of Service pertaining to the payment of allowances to the Board Members, CEO, Deputy CEOs and all staff in the category of levels 8 – 13 have been suspended temporarily for review.
• That in view of the financial constraints, Management is directed to take steps to pay allowances due staff from June, 2017 to September, 2017.
• That all appointments made by Management are ratified.
• That all officers in acting positions for more than one (1) year are with immediate effect revoked.
• That Management is directed to conduct an HR Audit of the Human Resources of the Agency.
• That Management conducts a head count of all Beneficiaries on all modules.
• That Management undertakes a comprehensive verification of the number of Beneficiaries under the sanitation module.
• That the restructuring exercise initiated by Management is ratified, and Management should ensure that all due processes are followed.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

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Dr. Donkor, the Minority Spokesperson on Employment, Social Welfare, and State Enterprise noted to Citi News that his concerns were not because Sammy Awuku was a member of the New Patriotic Party.

[contextly_sidebar id=”ao9WOEF1PCsa4A5X402VlAF5Z5IRpC1r”]”I raised an objection not because he is Sammy Awuku or because he is an NPP [Youth] Organiser. I raised issues with the very requirement of the law. Act 887 of 2015 in section 4, 1(a) it is very specific on the competencies expected of the board chairperson.”

The act in question says the Chairperson of the YEA must be a person of recognized standing and experience in administration and human resource development or training.

But Dr. Donkor said the Minority in Parliament feels Mr. Awuku does not match up to this requirement, and thus called on President Akufo-Addoo to reconsider this appointment.

“Sammy Awuku has a lot of potential. One is not against Sammy Awuku chairing a board, but one is against Sammy Awuku chairing the Youth Employment Agency Board because of the requirement of the law.”

“We believe he could be a member of the board but to be the Chair, the law was very specific on the competencies expected of it [the chairperson] and that is why we are appealing to His Excellency the President, or the appointing authority, to take a second look and let our laws work,” Dr. Donkor added.

On Friday, 15th September, 2017, the YEA inaugurated its board, which included the Founder of Ghana’s School Feeding Programme, Dr. Kwame Amoako Tuffour, the Acting Chief Executive Officer of the Agency, Lawyer Justin Kodua Frimpong who represents management on the Board, and Lawyer Bright Wereko Brobbey, Deputy Minister for Employment and Labour Relations.

The acting CEO of the National Youth Authority, Emmanuel Sin Ayet Asigri, and a Forensic Auditor, Mr. James Quarshie were also appointed as board members.

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By: Michael Ogbodu/Delali Adogla-Bessa/citifmonline.com/Ghana

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The Board will be chaired by Mr. Sammy Awuku, the National Youth Organiser of the New Patriotic Party (NPP).

[contextly_sidebar id=”2pFbduSlFbk2A7lkMFe6s2Pf6v27gFai”]Other members expected to serve on the Board include Founder of the Ghana’s School Feeding Programme, Dr Kwame Amoako Tuffour, the Acting Chief Executive Officer of the Agency, Lawyer Justin Kodua Frimpong who represents management on the Board and Lawyer Bright Wereko Brobbey, Deputy Minister for Employment and Labour Relations.

Acting CEO of the National Youth Authority, Emmanuel Sin Ayet Asigri and a Forensic Auditor, Mr. James Quarshie were also appointed as board members.

YEA was established under the Youth Employment Act 2015 (Act 887) to empower young people to contribute meaningfully to the socio-economic and sustainable development of the nation.

Its objective is to support the youth between the ages of 15 to 35 years through skills training and internship modules.

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By: Sammi Wiafe/citifmonline.com/Ghana

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The court, presided over by Justice Laurenda Owusu, said the order remains in “force for a period of only 10 days after which the application may be repeated on notice to the other side.”

[contextly_sidebar id=”XB4DkwUxKj9zb1WE8BjDQ8GkBcALeLTR”]A private citizen, Joseph Nelson, filed a suit to challenge the decision of the Agency to transfer, demote and reassign some staff of the Agency.

Counsel for the plaintiff, Samson Lardy Anyenini Esq. in the suit prayed the court for the order to restrain the defendants; the Youth Employment Agency and the Attorney General from carrying out the decision against the staff.

According to him, the Agency did not follow due procedure in undertaking the exercise.

He said the Agency did not make arrangements for the transportation or accommodation for the affected staff despite issuing them a 7-day ultimatum to vacate their respective positions.

Massive transfers hit YEA after payroll fraud

YEA in June 2017 issued a notice of mass transfer of some of its staff, explaining that it was part of an “ongoing restructuring exercise to reposition the Agency for higher productivity.”

The acting Chief Executive Officer (CEO), Justine Kodua Frimpong, in justifying the decision told Citi News that it will go a long way to rid the agency of corruption.

“When we realized that there were several inefficiencies in the system, we tried to look at how best we can rectify all those challenges to make sure that the agency is in the position to be able to perform its duties efficiently. So everything that we are doing as management is to make sure that the agency performs its work efficiently,” he said.

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By: citifmonline.com/Ghana

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This was after the Minority in Parliament dared YEA to publish the full details of the internal audit that allegedly uncovered the over GH¢50 million cedis payroll fraud.

[contextly_sidebar id=”02QDBUIzgm1jvFceE6kS1sRx73SHUnYc”]According to the Minority, the computerized system put in place by the previous management, is virtually impossible to manipulate, hence the claims by the YEA is just to score cheap political points.

But the newly appointed CEO of YEA, Justin Kodua Frimpong, says the agency will follow laid down procedure and not succumb to pressure.

“We have a supervisory Ministry which is also captured by the Act that what we do at YEA must be done in consultation with our supervisory Ministry, which is the Ministry of Employment and Labour Relations. So without the board everything that we have been doing has been done in consultation with other Ministries.

“Moreover, we gave ourselves one month that by one month, those whose names have been considered as non-existing beneficiaries and they believe genuinely that they are there, they must come out so after the one month, you come out with the list. Everything that we are doing is based on the criteria that we have set for ourselves and reasons were assigned to it,” he explained

An internal audit conducted by the Youth Employment Agency (YEA) uncovered a huge payroll fraud believed to have cost the country about GH¢51 million under the John Mahama government.

The amount, according to the findings of the report, is an aggregation of unearned allowances paid to unposted beneficiaries, funds for official use which were paid into personal accounts, as well as procurement without adherence to due process.

The Agency subsequently deleted some 18,000 names from the payroll following the detection of the discrepancies.

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By: Marian Ansah/citifmonline.com/Ghana
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