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Zoomlion goes to court over disallowances and surcharges Featured

By January 08, 2019 741 0

Ghana’s waste management giant, Zoomlion Ghana limited has appealed against the Auditor General’s 2018 Special Report on disallowances and surcharges, which is asking the company, former and current Chief Executives Officers of National Health Insurance Authority (NHIA) to refund some GHc400 million to the State which the Auditor General believes it was wrongfully paid to the company.

In a press statement dated Monday 7th January 2019, the management of Zoomlion Ghana said they disagree with the charges raised against them and have appropriately appealed against it at the High Court in accordance with the law of Ghana.

The waste management company said though they did not intend to preempt the ruling of the court in the appeal, they believe they have done nothing wrong and assures the general public and its stakeholders to remain calm.

“Zoomlion’s contracts in the areas of disinfestation as a preventive health measure have been with the Ministry of Health and all works have been duly executed and paid for,” the statement added.

“Zoomlion Ghana Limited is a responsible Corporate citizen which works ethically with integrity. We believe in the rule of law and the judiciary to bring finality to this matter”, the statement said.

Management of the company has also cautions the general public and the media to exercise restraints in any discourse on the issue.

Below is the full statement.

 ZOOMLION RESPONDS TO MEDIA REPORTAGE ON AUDITOR-GENERAL’S REPORT; January 07, 2019:

The attention of the management of Zoomlion Ghana Limited has been drawn to media publications about the 2018 Special Audit report of the Auditor General on disallowances and surcharges, asking the company and previous and current Chief Executive Officers of the NHIA to refund some GH¢ 400 million. The surcharge and disallowance certificates were served on the company which we disagreed with and have appropriately appealed against it at the High Court in accordance with law.

Without preempting the ruling of the court in the appeal, the Management of Zoomlion Ghana Limited wishes to assure the public that, the company believes it has done nothing wrong.  Zoomlion’s contracts in the areas of disinfestation as a preventive health measure have been with the Ministry of Health and all works have been duly executed and paid for.

The Management of Zoomlion Ghana Limited wishes to reassure its stakeholders and the general public that it had done no wrong and calls on the general public and media to exercise restraints and caution in any discourse on the issue.

Zoomlion Ghana Limited is a responsible Corporate citizen which works ethically with integrity. We believe in the rule of law and the judiciary to bring finality to this matter.

About Zoomlion Ghana Limited

Zoomlion Ghana Limited has over the past 12 years been at the forefront of providing integrated waste management solutions and ensuring that Ghana is clean, green and healthy. Over, this period the company has built experience, capacity and logistics to serve the country in the areas of waste collection, public cleansing, liquid waste disposal, medical waste treatment, composting and recycling as well as managing landfill sites. 

By dint of hard work and excellent service delivery, the company has won several awards both local and international, and has operations in other countries including Angola, Zambia, Togo, Equatorial Guinea and Liberia.

Background

The current head and three former Chief Executive Officer (CEOs) of the National Health Insurance Authority (NHIA) and Zoomlion, have been ordered to refund a total amount of GH¢411, 433, 086 following revelations of wrongful payments made to the waste management company during their respective tenures.
In separate letters to the four; Sylvester Mensah, Ras Boateng, Samuel Annor and Nathaniel Otoo, the Auditor General, Daniel Domelevo stated that after an audit into the accounts of the NHIA for the period from January 2007 to April 2018, the financial infractions were noted, prompting the surcharges and ultimatum.
According to the audit, the NHIA, under the tenure of Sylvester Mensah, is said to have made a payment of GH¢111,401,650 to Zoomlion without following due processes.
The payment which was authorized by Mr Mensah and the former DCE in charge of Finance & Investment of the Authority at the time, Alex Nartey from, June 2009 to May 2015, is contrary to Regulation 39 of Financial Administration, Regulations L.I. 1802.
The two persons, along with Zoomlion were surcharged an amount of GH¢202,013,257 and are to refund a total amount of GH¢313,414,907.09.
The NHIA CEO from 2015 to 2017, Nathaniel Otoo, along with Mr Nartey and Zoomlion, has also been asked to refund an amount of GH¢66,918,032 after the payment of GH¢47,000,000 was made to Zoomlion without due procedure.
Ras Boateng, who was CEO of NHIA from 2007 to 2009 was also surcharged an amount of GH¢583,000 along with Zoomlion after payments of GH¢5,500,000 were made to the waste management company without recourse to due processes.
The two parties are now to refund a total amount of GH¢6,083,000 into the Consolidated Fund within 14 days.
Samuel Annor, who has served as NHIA CEO since March 2017, Francis Owusu, then DCE in charge of Finance & Investment and Zoomlion were ordered to refund an amount of GH¢25,017,147.21.
This is after the audit revealed that wrongful payments of GH¢21,000,000 were made to the waste management company.
All surcharged parties were directed to make the payments within 14 days of receiving the notice and to produce proof of payment on a Treasury Counterfoil Receipt (TCR), to the Legal Unit of the Ghana Audit Service.
The note from the Auditor General added that if the monies are not paid before the deadline civil proceedings will be commenced to recover the amount from those surcharged.

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By: Sammy Agyei/frontpageghana.com/ghana & additional files from citinewsroom.com

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Last modified on Tuesday, 08 January 2019 07:35

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