The Ministry of Foreign Affairs and Regional Integration has justified its decision to spend GH¢ 7.9 million on a project expected to cost GH¢ 1.4 million in 2007.
It noted that the statement made by the Chief Director, Ambassador Ramses J. Cleland, during the Ministry's session with the Public Accounts Committee of Parliament on Friday, 20th January 2023 that the Ministry spent 7.9 million cedis on a 1.4 million cedis project because the contractor fell ill was inaccurate.
This was contained in a rejoinder issued by the Ministry on Monday to explain and further apprise the public about the extent of works and details of events that led to the delay and increased cost between the years 2007 and 2021.
"The Ministry wishes to state on record that the delay in getting the project completed had been occasioned by a number of factors, including the redesign and delayed release of funds, delayed certification and delayed payment of those certificates issued to the contractor by AESL. As a result of the delay, the contract sum increased in correlation to increased inflation and currency depreciation impacting adversely on material cost," it stated.
It indicated that the contract for the rehabilitation of Adu Lodge Guest House was awarded to International Development Resources (IDR) on March 15, 2007, but unfortunately, the project stalled completely from the period 2009 to 2017 mainly due to the inability of the contractor to continue to refinance the project as a result of the lack of reimbursement for expenses already incurred.
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"Indeed, the bank accounts of IDR were garnisheed for its inability to pay back bank loans the company had taken to refinance the project on schedule. On her assumption of office in the year 2017, Mrs Shirley Ayorkor Botchwey, the Minister for Foreign Affairs and Regional Integration called for the review of the contract which was later re-awarded to save the country the already invested funds and put the facility to its originally intended use," it added.
According to the statement, the initial scope of work included the refurbishment of Blocks A, B and C; external works refurbishment of external works; electrical installation works; 2 boys quarters' structures; security gatehouse; swimming pool; fire detection installation and air-conditioning system.
"Newly measured works that were added to the existing project included the following: construction of a laundry block; construction of a conference block; construction of a kitchen block; construction of a pool house; generator platform; water storage tank and platform; borehole drilling and treatment; VOIP intercom and data networking; installation of fitted kitchen; and close circuit television," it noted.
