Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has published an exposé in which he supplied evidence of payment in excess of some $34.9 million authorised by former Minister for Finance Ken Ofori-Atta for the purchase and fitting of spare parts on some 307 government ambulances.
In his publication of July 21, 2024, he raised issues regarding financial alleged mismanagement and corruption in the payment involving a private company, Service Ghana Auto Group Limited.
Exorbitant payment for spare parts
According to the MP, the minister approved an amount of US$34,904,505.00 to be paid to Service Ghana Auto Group Limited for the procurement of spare parts for some 307 ambulances purchased by the government in 2019.
According to the MP, the stated amount translates to $113,695.456 per ambulance, which is more than the cost of many fully equipped new ambulances, raising questions about the rationale behind such expenditure.
“Five days before leaving the Ministry of Finance after President Akufo-Addo’s lame-duck Valentine Day reshuffle, Ken Ofori-Atta decided to teach us one more unforgettable bitter lesson. Perhaps it was his special way of exiting with a vengeance after incessant and relentless calls from suffering Ghanaians to have him sacked.
“In a grand ‘lootocratic’ conspiracy with the outgoing Health Minister, Kwaku Agyeman-Manu, who was also affected by the reshuffle, the two abysmal performing ministers decided to cause more financial loss — it seems from the Sputnik V scandal, mismanagement of billions of covid funds, benefiting directly from loans accumulated, all the way to Ghana’s current bankruptcy — the two outgoing disastrous ministers didn’t think they have already wreaked enough havoc to have mercy on us.
“In his last shockingly sleazy conduct, Ken Ofori-Atta, by a letter dated February 9, 2024, approved a staggering US$34,904,505.00 to be paid to the discredited Service Ghana Auto Group Limited for the procurement of spare parts for the 307 ambulances purchased by the government in 2019.
“On the same February 9, 2024, the busy Finance Minister instructed the Controller and Accountant-General to release US$ 10 million, equivalent to GHS120,711,000.00.
“My impeccable tracking of this transaction confirms that the Controller and Accountant-General processed and released the GHS120,711,000.00 on February 23, 2024, which was promptly received in the accounts of Service Ghana Auto Group Limited,” the MP alleged in his publication.
Timing of payment
In the evidence supplied by the MP, the minister authorised the payment just five days before he was removed from office by President Nana Addo Dankwa Akufo-Addo in a cabinet reshuffle announced on February 14, 2024.
“An analysis of this dubiously outrageous transaction valued at US$34,904,505.00 for spare parts for 307 ambulances actually translates into US$113,695.456.00 per ambulance.
“Instructively, checks from many Mercedes Benz ambulance dealers across the world show that US$113,695,456.00 is far more than the value of a considerable number of modern, fully equipped new ambulances.
“Why sign a rip-off and an unconscionable sweetheart deal of US$113,695.456.00 just for spare parts when you can buy a new fully equipped modern Mercedes Benz ambulance for the same value, and even less?
“What happened to value for money and love for country?” he questioned.
Lack of competitiveness in procurement process
Mr Ablakwa alluded to favouritism and lack of due diligence in the process that led to awarding the contract to Service Auto Group Limited, citing the absence of a competitive procurement process.
“Further parliamentary oversight reveals that Service Ghana Auto Group Limited was incorporated on April 24, 2020.
“Service Ghana Auto Group Limited was therefore incorporated more than a year after the 307 new ambulances were commissioned by President Akufo-Addo on January 28, 2019.
“Typical of how this incurably corrupt government operates, the company was handpicked without a competitive procurement process.
“Additionally, Government appears not to have done much due diligence on the directors of the company,” he stated.
Previous payments to Service Ghana Auto Group Limited
According to Mr. Ablakwa, the company, before the latest scandal, had already received GHS115,342,573 for servicing the ambulances between 2020 and 2023, bringing the total amount to GHS653 million, which he noted brings the total amount to more than double the cost of the ambulances.
“Deeper parliamentary oversight through GIFMIS assessments also confirms that even before this US$34.9million scandalous Ken Ofori-Atta/Agyeman-Manu send-off package, Service Ghana Auto Group Limited has received a colossal GHS115,342,573 in payments for shoddy servicing of the ambulances between 2020 and 2023.
“This means, so far, Service Ghana Auto Group Limited alone will be making a mind-boggling GHS653 million from these ambulances. This figure is more than double how much the ambulances cost us in 2019. (Prevailing exchange rate of US$54million, which was the cost of the 307 ambulances in 2019.),” he said.
Company indicted in Auditor-General’s special audit report on ambulances
Mr Ablakwa also cited an audit report by the Auditor-General on the 307 ambulances, which indicted the company for acts including inflating invoices and breaching maintenance schedules and procedures.
“What is even more depressing, the Auditor-General’s special audit titled — Performance Audit Report of the Auditor-General on Fleet Management of the National Ambulance Service, which was published on May 25, 2022, had the following extremely damning conclusions about Service Ghana Auto Group Limited:
I) Service Ghana Auto Group Limited inflated invoices;
II) Service Ghana Auto Group Limited, in many instances, used staff of the National Ambulance Service for its maintenance even though all payments went to their company;
III) Service Ghana Auto Group Limited consistently breached maintenance schedules and procedures and
IV) The Service Ghana Auto Group Limited MoU with the National Ambulance Service did not inure to the benefit of the National Ambulance Service.
“How can any Government which claims to care about protecting the public purse be aware of this damning audit report and still proceed to award an even bigger contract of US$34.9million (GHS538million) when Ghana did not get value for money after previously paying Service Ghana Auto Group Limited GHS115million?
“It is also worth remembering that this is the same company which was exposed in a viral video a couple of years ago when an ambulance sent to them to be serviced was rather used to cart cement by their unscrupulous staff. (See attached the pathetic apology they issued at the time).
Read the full publication below:
Read the full publication by the MP below:
THE US$34.9 MILLION (GHS538 MILLION) AMBULANCE SCANDAL AND HOW SERVICE GHANA AUTO GROUP LIMITED HAS MADE A COOL GHS653MILLION THROUGH INFLATED INVOICES
Unimpeachable intercepted documents from Ghana’s Ministry of Finance reveal yet another scandal of ginormous proportions.
Five days before leaving the Ministry of Finance after President Akufo-Addo’s lame-duck Valentine Day reshuffle, Ken Ofori-Atta decided to teach us one more unforgettable bitter lesson. Perhaps, it was his special way of exiting with a vengeance after incessant and relentless calls from suffering Ghanaians to have him sacked.
In a grand ‘lootocratic’ conspiracy with the outgoing Health Minister, Kwaku Agyeman-Manu who was also affected by the reshuffle, the two abysmal performing ministers decided to cause more financial loss — it seems from the Sputnik V scandal, mismanagement of billions of covid funds, benefiting directly from loans accumulated, all the way to Ghana’s current bankruptcy — the two outgoing disastrous ministers didn’t think they have already wreaked enough havoc to have mercy on us.
In his last shockingly sleazy conduct, Ken Ofori-Atta by a letter dated 9th February, 2024 approved a staggering US$34,904,505.00 to be paid to the discredited Service Ghana Auto Group Limited for the procurement of spare parts for the 307 ambulances purchased by government in 2019.
On the same 9th February, 2024, the busy Finance Minister instructed the Controller and Accountant-General to release US$10million, equivalent to GHS120,711,000.00.
My impeccable tracking of this transaction confirms that the Controller and Accountant-General processed and released the GHS120,711,000.00 on February 23, 2024 which was promptly received in the accounts of Service Ghana Auto Group Limited.
An analysis of this dubiously outrageous transaction valued at US$34,904,505.00 for spare parts for 307 ambulances, actually translates into US$113,695.456.00 per ambulance.
Instructively, checks from many Mercedes Benz ambulance dealers across the world show that US$113,695,456.00 is far more than the value of a considerable number of modern fully equipped new ambulances.
Why sign a rip-off and an unconscionable sweetheart deal of US$113,695.456.00 just for spare parts when you can buy a new fully equipped modern Mercedes Benz ambulance for the same value, and even less?
What happened to value for money and love for country?
Further parliamentary oversight reveals that Service Ghana Auto Group Limited was incorporated on April 24, 2020.
Service Ghana Auto Group Limited was therefore incorporated more than a year after the 307 new ambulances were commissioned by President Akufo-Addo on January 28, 2019.
Typical of how this incurably corrupt government operates, the company was handpicked without a competitive procurement process.
Additionally, Government appears not to have done much due diligence on the directors of the company — I shall return to this in much detail later.
Deeper parliamentary oversight through GIFMIS assessments also confirms that even before this US$34.9million scandalous Ken Ofori-Atta/Agyeman-Manu send-off package, Service Ghana Auto Group Limited has received a colossal GHS115,342,573 in payments for shoddy servicing of the ambulances between 2020 and 2023.
This means, so far, Service Ghana Auto Group Limited alone will be making a mind-boggling GHS653million from these ambulances. This figure is more than double of how much the ambulances cost us in 2019. (Prevailing exchange rate of US$54million which was the cost of the 307 ambulances in 2019.)
One wonders if the Akufo-Addo/Bawumia government procured the ambulances to save lives or they were procured to serve as an unbridled cash cow for corrupt politicians and their business collaborators.
What is even more depressing, the Auditor-General’s special audit titled — Performance Audit Report of the Auditor-General on Fleet Management of the National Ambulance Service which was published on May 25, 2022 had the following extremely damning conclusions about Service Ghana Auto Group Limited:
I) Service Ghana Auto Group Limited inflated invoices;
II) Service Ghana Auto Group Limited in many instances used staff of the National Ambulance Service for its maintenance even though all payments went to their company;
III) Service Ghana Auto Group Limited consistently breached maintenance schedules and procedures and
IV) The Service Ghana Auto Group Limited MoU with the National Ambulance Service did not inure to the benefit of the National Ambulance Service.
How can any Government which claims to care about protecting the public purse be aware of this damning audit report and still proceed to award an even bigger contract of US$34.9million (GHS538million) when Ghana did not get value for money after previously paying Service Ghana Auto Group Limited GHS115million?
It is also worth remembering that this is the same company which was exposed in a viral video a couple of years ago when an ambulance sent to them to be serviced was rather used to cart cement by their unscrupulous staff. (See attached the pathetic apology they issued at the time).
Who would have predicted that a government trying everything by hook or crook to have Minority Leader, Hon. Dr. Ato Forson convicted in that infamous ambulance trial for allegedly causing financial loss of €2.37million will itself be recklessly, mindlessly and criminally causing real financial loss in excess of US$34.9million through another ambulance transaction.
Tomorrow is indeed pregnant.
I intend to formally petition the Office of the Special Prosecutor this week for his office to conduct criminal investigations into this sordid affair.
Stinky create, loot and share shall be fearlessly defeated!
For God and Country.
Ghana First.
