Abandoned, unused MMDA projects cost Ghana over GH¢30m in 2017

Abandoned and unused projects in at least 40 Metropolitan, Municipal and District Assemblies (MMDAs) cost the state over GH¢ 30 million in 2017.

The Auditor General’s report on the utilization of the District Assemblies’ Common Fund showed that this figure contributed to 73 percent of the losses from irregularities.

The losses and abandoned projects contributed to what the Auditor General classified as contract irregularities.

Whilst other major irregularities saw a drop in 2017 from 2016, the contract irregularities increased from GH¢ 26,839,675.97 to GH¢ 31,224,856.72.

In general, the irregularities for 2017, showed a 41.67% fall of GH¢29,243,646.43 from the 2016 figure of GH¢70,173,645.97

In his general comments on these irregularities, the Auditor General, Daniel Domelovo, noted that the Assemblies awarded fresh projects when earlier ones had not been completed leading to the suspension of work as a result of non-payment of work certificates.

“I also observed that the management of the Assemblies either did not ensure that the Contractors operated with performance bonds covering the period of the contracts or enforced them where they existed. This allowed the Contractors to execute the projects at will or in some case, abandon them.”

In some instances, some completed projects were not in use because of non-availability of basic utilities, furnishing or siting of projects beyond the easy access of the communities, according to the report.

Highlights of contract irregularities

Violations in the Ashanti Region

Abandoned /delayed Projects – GH¢1,153,074.00

Five Assemblies awarded 14 contracts amounting to GH¢3,886,979.93 scheduled for completion between 2007 and May 2017.

The assemblies, in the course of the construction, paid a total of GH¢1,530,074.40 to the various contractors.

“Our visits to the project sites disclosed that the 14 projects which were at various stages of completion were abandoned by contractors for non-payment of various interim payment certificates. Meanwhile, ten of the projects had been abandoned for periods ranging between four to ten years whilst the Assemblies went ahead to award new projects.”

Completed Projects not put to use – GH¢1,243,394.00

Also, six completed projects, some as far back as November 2016, by four Assemblies at a total cost of GH¢1,243,394.34 had still not been put to use.

“We noted that even though the projects were completed, they could not be utilized due to the absence of furniture, equipment, electricity and access roads,” the report said.

Violations in the Brong Ahafo Region

Completed projects not in use – GH¢1,706,681.00

Six Assemblies expended a total amount of GH¢1,706,681.03 on 11 projects but failed to put them to use after completion.

The report attributed these lapses to chieftaincy disputes, the lack of stakeholder engagement, the non-provision of utilities and other facilities and the non-commissioning of the projects for use by the beneficiary agencies and communities.

Delayed/abandoned projects – GH¢8,124,887.00

13 Assemblies expended a total amount of GH¢8,124,887.02 on 61 projects which were at various stages of completion but were abandoned while new projects were awarded.

Violations in the Central Region

Abandoned/ delayed projects- GH¢1,840,758.00

The report noted that contract documents and the inspection of projects for three Assemblies revealed that 14 projects at various stages of completion had been delayed or abandoned for periods ranging between two and six years.

Completed projects not in use – GH¢1,540,202.00

Four Assemblies had completed five projects, some as far back as 2014 and constructed at a cost of GH¢1,540,202.16 had not been put to use.

Violations in Eastern Region

Abandoned grader at Nkurankan- GH¢493,879.00

A grader procured by the Yilo Krobo Municipal Assembly in 2009 through DACF source deduction, at a cost of GH¢493,879.30, had been abandoned at Nkurankan since October 2016 after breaking down.

Completed projects not in use- GH¢561,312.00

Three Assemblies spent a total amount of GH¢561,312.26 on four projects but could not put them to use, some two years after the completion of the projects.

Abandoned projects- GH¢738,340.00

Two Assemblies expended a total amount of GH¢738,340.47 on six projects awarded between 2010 and 2015. It was noted that these projects which were at various levels of completion had been abandoned as new projects were awarded.

Delayed projects- GH¢1,802,398.00

The audit disclosed that 33 projects awarded by six assemblies at a total cost of GH¢6,824,536.85 out of which an amount of GH¢1,802,398.58 was paid, had still not been completed six months to 10 years after their scheduled completion dates.

Violations in Northern Region

Completed projects not in use – GH¢2,143,895.00

11 projects in six Assemblies which had been completed at a total cost of GH¢2,143,954.59 and handed over; some as far back as 2006, were still not in use.

This was attributed to the wrong siting of projects and lack of furnishing.

Abandoned projects – GH¢264,353.00

The Mamprugu Moagduri District Assembly awarded contracts for the construction of three projects in three communities at a total contract sum of GH¢314,459.67 out of which a total payment of GH¢264,352.50 was made towards the execution.

These projects which were 75-95 percent complete had been abandoned by the various contractors since April 2014 and 2015.

Payments to contractors for projects not fully executed – GH¢445,377.00

The management of four Assemblies awarded seven contracts to seven Contractors at a contract sum of GH¢1,410,191.00 out of which a total amount of GH¢1,259,591.00 was paid to contractors for work executed.

The audit inspection at the project sites disclosed that management of the four Assemblies paid for works valued at GH¢445,377.00 which was contained in the respective Bills of Quantities for which no work was executed by the Contractors.

Payment for Landfill services not rendered – GH¢200,000.00

Savelugu Nanton paid a total amount of GH¢200,000.00 to Waste Landfill Limited to manage their landfill site. However, the auditors’ visit to the landfill sites indicated that there was no work done by the contractor to warrant the payment.

Violations in Upper East Region

Abandoned project – GH¢23,493.00

Management of two Assemblies awarded contracts to two different contractors for the construction of a 10-Seater water closet toilet and a semi-detached Nurses’ Quarters at a total contract sum of GH¢198,350.94 for which a total amount of GH¢23,493.00 was paid but the projects were abandoned at various stages of completion as detailed.

Delayed projects – GH¢100,000.00

Management of Talensi District Assembly awarded contracts for the construction of three projects for a contract sum of GH¢461,176.96 for which a total amount of GH¢100,000.00 was paid.

Completed projects not in use – GH¢710,663.00

Two Assemblies expended a total amount of GH¢710,662.94 on four projects which were handed over between 2013 and 2016 were not put to use for the benefits of the communities.

Violations in Upper West Region

Abandoned projects – GH¢87,523.00

Management of Nadowli/Kaleo awarded two contracts valued at GH¢284,753.86 of which a total payment of GH¢87,523.05 was made to the Contractors. Our inspection of the projects disclosed that the two projects had been abandoned at lintel level.

Delayed projects – GH¢664,471.00

Management of four Assemblies awarded 13 projects which were scheduled to be completed in 2016 and 2017, however, they remained uncompleted as at December 2017.

“This was due to poor contract management and could lead to abandoning of projects or contract variations, the report noted.

Completed projects not in use – GH¢756,496.00

The management of the Nadolwi/Kaleo and Wa West District Assembly had completed six projects valued at GH¢756,495.80 in 2016 but were not put to use.

A CHPS Compound at Ladaayiri, one of the two projects in Wa West constructed by Tamsad Enterprise and completed in September 2016 at contract Sum of GH¢111,207.23 was noted to have developed major cracks in the building.

The Auditors attributed non-usage of the projects to non-availability of electricity and furnishing and shoddy work by the Contractor due to ineffective supervision by the Works Engineer, Mr. Sampson Awuah.

Payment for no work done – GH¢20,000.00

The review of the MPs’ share of the Common Fund revealed that the Wa Municipal Assembly awarded a contract to O. K. Island Enterprise for the construction of 1No. 2-Unit KG Block with Office and Store at a contract sum of GH¢39,416.30 at Piisi.

“We, however, noted that the Assembly paid an amount of GH¢20,000.00 without the relevant contract documents such as tender evaluation, bill of quantities, interim payment certificates, site inspection reports etc. The Municipal Works Engineer and Municipal Planning Officer could not lead the team to the project site and therefore we could not confirm the existence of the project,” the report stated.

Violations in Volta Region

Completed projects not in use – GH¢811,750.00

The report noted that six projects completed, some as far back as May 2016, by three Assemblies at a total cost of GH¢811,750.07 had still not been put to use.

Even though the projects were completed, they could not be utilised due to the absence of water supply, electricity, furnishing and access roads, the report added.

Violations in Western Region

Abandoned projects – GH¢1,142,544.00

Four Assemblies made total payments of GH¢1,142,543.79 towards the construction of 14 projects. At different levels of completion, the projects came to a standstill due to funding challenges.

Unexecuted projects – GH¢100,170.00

Audits disclosed that Bia East and Juaboso District Assemblies made payments totalling GH¢100,170.00 to four Contractors for four projects which were expected to be completed within one year. But a visit to the project sites disclosed that the four projects were not executed.

Delayed projects – GH¢1,775,451.00

Two Assemblies made payments totalling GH¢1,775,451.00 00 to various contractors for 15 projects which were expected to be completed within one year.

Four to 61 months after the expected completion period, the projects had not been completed and the Contractors were also not on site, according to the report.

Completed projects not in use – GH¢1,551,910.00

The Management of three Assemblies spent a total amount of GH¢1,551,910.07 to complete four projects. However, the projects were not being utilised by the beneficiary communities due to lack of facilities like water, electricity access roads, furnishing and a strategic partner to operate the facilities.