Ghana authorities to sue Indian street contractor for not finishing work after receiving $29.6m half cost
The Authorities of Ghana is to take authorized motion towards JMC Initiatives, an Indian development firm, below Kalpataru Group, for taking $29.6 million, as half cost to assemble the 113km Sevelugu-Walewale street however didn’t execute the mission.
The Indian contractor additionally made an try to gather a further $14 million for allegedly mobilising tools and employees to website however authorities refused to pay that quantity.
Later, the Indian development agency issued a discover of termination of contract and tried to clandestinely transport its development tools on the mission website within the northern Ghana to a different mission website in Guinea with out the express consent of the Ministry of Roads and Highways.
The Minister disclosed that the previous Vice President, Dr Mahamudu Bawumia carried out the sod-cutting ceremony on June 17, 2024, for graduation of labor on that street with out realizing that the contractor had already issued a discover of termination of contract.
Mr. Kwame Governs Agbodza, the Roads and Highways Minister, made the disclosure whereas responding to an pressing query posed by Mahama Ayariga, the Majority Chief and Member of Parliament for Bawku Central on the standing design-build contract of the Part 1 Tamale-Savelugu-Walewale (30-113km) stretch on the ground of Parliament on Thursday.
The Minister mentioned after the Indian development agency had taken $29.6 million from authorities, it issued a discover of termination of contract on March 11, 2024.
The Minister mentioned on the time the contractor issued the discover of termination of contract in March 2024, it had performed just one per cent of the work.
Mr. Agbodza mentioned the Ministry had notified the Lawyer-Common and Minister of Justice in regards to the matter to supply authorized recommendation on the way in which ahead.
Nevertheless, the Minister was of the conviction that the Indian development agency both execute the street mission well worth the quantity collected or authorities of Ghana use each authorized means to retrieve the cash paid to the contractor.
The Minister expressed shock that whereas the earlier New Patriotic Social gathering authorities was owing Ghanaian street contractors to the tune of GH¢21 billion, it may mobilise nearly $30 million to pay a international street contractor with none work performed.
The contract, value $158 million, was awarded in 2022 and anticipated to be accomplished inside 42 months in December 2025 however now the contractor has deserted the location.
The IMS Engineers and Imaginative and prescient Seek the advice of Restricted had been consultants for that street mission.
Supply: GNA
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