Auditor-General describes Zoomlion as ‘fraudulent, drain on country’

The Auditor-General has described Zoomlion Ghana Limited as a fraudulent company that has caused a drain on the scarce resources of Ghana.

This was contained in a response the Auditor-General filed with evidence, after Zoomlion appealed the surcharge and disallowance of over ¢180 million.

The amount was paid to Zoomlion by the National Health Insurance Authority (NHIA) for fumigation services.

When the Auditor-General announced its action, the sanitation company went to court to argue that the payment it received was for work that it had carried out. Also, the company said the payments were authorised by state officials and so, it did no wrong it taking its claims in respect of the contract.

But the Auditor-General relying on pieces of evidence including a number of contracts that had the same or similar services, said it was unjustifiable to charge the state for providing the same or similar service the company is already being paid for.

The 2015 Auditor-General’s report has made adverse findings on a fumigation contract between the Local Government Ministry and Zoomlion, a subsidiary of the Jospong Group of companies, owned by Joseph Siaw Agyapong.

The findings mirror and corroborate damning revelations made by Joy News’ Manasseh Azure-Awuni on the same matter in a documentary titled “Robbing the Assemblies.”

Auditors found from many of the metropolitan, municipal and district assemblies across the country that, the contract had either not been executed at all or had been ineffective in the places where attempts were made to execute the contract.

According to the Auditor-General, “as a result of this fraud committed on the people of Ghana, poor taxpayers money was used to pay the whopping amount of ¢184,901,650.00 to the Appellant [Zoomlion].” 

“The Respondent hereby submits its reply together with the evidence it intends to rely on at the hearing of this appeal in accordance with the rules on the said Disallowance and Surcharge in this reply. My lord with the leave of this Honourable Court the Respondent intends to address the 3 grounds of appeal together.

“The Respondent upon a careful review of the documents tendered in support of the payments to the Appellant is of the candid opinion that the Appellant has at all material times, been fraudulent and has caused a drain on the scarce state resources,” the Auditor General argued.

The Police CID is also investigating Zoomlion and 10 of its sister companies, for the fumigation contracts. 

The Accra High Court has adjourned the case to May 30.

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