GRi Parliament 02-03-99

Accra (Greater Accra), 2 March,  

A total of 91,150,000 cedis has been released for immediate payment to owners of 68 houses demolished by Pentrexx Ghana Limited at Keta in respect of the Keta Sea Defence Project.

Mr Isaac K. Adjei-Mensah, Minister of Works and Housing who disclosed this during question time in parliament today, said Pentrexx Ghana Limited has so far refunded, in two instalments, more than 447.9 million cedis out of its total indebtedness of over 3.3 billion cedis.

A government white paper issued early last year directed that the company should refund the said amount after a committee of inquiry found them liable in respect of certain allegations made against them.

The minister said the Attorney-General's office is taking appropriate legal action against the company to retrieve the outstanding amounts involved. ''A writ of summons for recovery of the overpayment for the demolition works was expected to be issued by close of work yesterday, March 1, 1999'', he added.

The breakdown of the total amount to be refunded is as follows; overpayment for demolition work, 1,529,817,783 point 17 cedis; 15 per cent down payment for ECGD lines of credit, 393,160,000 cedis and local purchase of plant and equipment, 1,402,782,039 point 73 cedis. The questions which stood in the name of Mr Kwamena

Bartels, NPP-Ablekuma North, was to ask the Minister what steps his ministry has taken to ensure that government directives to Pentrexx Ghana Ltd. to refund the total sum of 3.76 billion cedis arising out of overpayments and payments for non-existent work is complied with.

This included a refund of 15 per cent deposit paid ( on their behalf) by the ministry for ECGD Lines of Credit, in respect of the Sea Defence Project.

The second question read: ''To ask the Minster of Works and Housing what arrangements he has put in place to pay compensation to the owners of houses demolished at Keta by Pentrexx Gh. Ltd''.

They were asked on Mr Bartels' behalf by Mr Yaw Baning-Darko, NPP-Atiwa and Mr Osei Kyei-Mensah-Bonsu, NPP-Old Tafo Suame.Mr Adjei-Mensah disagreed with Nana Akufo-Addo, minority spokesman for legal matters, that the ministry has been slow in carrying out the government's directives.

He explained that the A-G's office is bogged down by numerous cases involving other ministries, hence the delay.

Mr Adjei-Mensah said on the advice of the A-G's Office, the Ministry of Finance released a total of 109,104,000 cedis for 79 houses valued by the Land Valuation Board.

However, it sought the assistance of the Keta District Assembly to verify the information regarding ownership and actual number of houses demolished by the contractor.

The assembly advised that only 68 houses were actually demolished by the contractor; his ministry would therefore only pay for 68 houses, the rest of the money would be paid back to government coffers.

The Assembly explained that those 11 houses that will not benefit were demolished by the sea long ago and not by Pentrexx Ghana Limited.

He said the ministry has no immediate plans to demolish the castle at Keta that has about a third of its structure remaining because it acts as a buffer for the houses behind it. Some people also want it to be restored.

Mr Adjei-Mensah explained that with respect to the 15 per cent down payment for the ECGD facility and for local purchase of plants and equipment, the matter is being referred to arbitration in accordance with the agreement signed between his ministry and the company.

''Regarding Bascom Works Ltd., a firm action has been taken to take possession of the plant and equipment for which a down payment for ECGD facility was made on behalf of the company''.

He told Alhaji Mustapha Idris, NPP-Gukpegu/Sabongida that the Ministry has suspended its policy of buying equipment for contractors with big contracts after this experience.

He added that the equipment purchased in respect of the Keta Project are being kept in a warehouse on Spintex Road.

The minister told Ms Christine Churcher MP for Cape Coast that the two officials of the AESL (Architecture and Engineering Services Limited) against whom adverse findings were made are no longer at post.

The minister told a questioner that he requires notice to explain why the contract sum was changed from 42 million dollars to 94 million dollars.

The third question that stood in the name of Mr Samuel Nkrumah-Gyimah read: ''to ask the Minister of Works and Housing what steps his ministry is taking to carry out maintenance works on the water supply system at Jacubo in the Ashanti Region''.

Mr Adjei-Mensah said the water pump's engine is under repairs; at the same time the ministry is taking steps to procure a two-cylinder engine to make up for the high water demand.

He said further that the Jocubo system is among the 110 scheduled to be transferred to their communities. However they would be rehabilitated with funds from donors before the transfer takes place.

The Minister assured Mr Kwadwo Baah-Wiredu, NPP-Asante Akim North, that all the prepaid water meters to be introduced by the Ghana Water and Sewerage Corporation is 2000 compliant.