Agenda 111: Auditor-General surcharges 35 contractors US$7.9 million over unexecuted works

Agenda 111: The Ghana Audit Service has surcharged 35 contractors a total of US$7.9 million—equivalent to approximately GH¢94.6 million—over unexecuted or grossly inadequate works under the government’s Agenda 111 hospital project.

The surcharge follows a validation review and special audit into Agenda 111 contracts across 19 project sites, which revealed that substantial mobilisation payments were made to contractors who either failed to commence work or executed work far below the value of funds received.

According to findings sighted by the Daily Graphic, the contractors were paid a total of US$11.16 million in mobilisation fees but collectively executed work valued at only US$5.96 million, leaving a significant shortfall.

An additional US$4.35 million was paid to 11 contractors whose contracts were later terminated. These firms completed inception works valued at US$2.49 million, leaving US$1.92 million unaccounted for before contract termination.

Contractors failed to justify mobilisation payments

The audit revealed that mobilisation fees—typically 10 per cent of contract sums—were paid between December 2021 and December 2024 to enable contractors to prepare sites and fast-track project commencement. However, several contractors either never moved to site or delivered less than 10 per cent of expected work.

As a result, Auditor-General Johnson Akuamoah Asiedu invoked his constitutional authority under Article 187(7)(b) to disallow the expenditure and surcharge all 35 contractors to recover the full amount owed to the state.

“The audit examined payment records and involved physical inspections of project sites,” the report stated, adding that mobilisation funds were “largely unutilised for their intended purposes.”

Breakdown of affected contracts

Out of the total amount to be recovered:

• 24 contractors with active contracts are required to refund US$5.96 million due to work executed being grossly disproportionate to mobilisation payments received.
• 11 contractors with terminated contracts are to refund US$1.92 million for work not carried out prior to termination.

In some cases, contractors were paid despite executing zero work. At Adeiso, for example:

• Imperial Homes received US$1.01 million,
• Grand Unique Company Limited received US$81,074.40, and
• Terraefuoco Limited received US$130,910.19,

all without undertaking any work on site.

Similarly, Casa City Limited and Dynamic Access Limited, contracted to build a hospital at Agbogbloshie, carried out no work after receiving mobilisation funds.

Other firms cited for zero or negligible work include Josano Limited, Asvas Company Limited, Ghire Limited, Concord Consult Limited, Delovely Company Limited, Osini Group Limited, Noble Gen Limited, and 4G Building Technologies Ltd, which is required to refund US$1.07 million after executing only two per cent of expected work.

Terminated contracts and minimal progress

Among terminated contracts:

• Hallwort Ghana Limited (Adabokrom) received US$67,772.60 for no work,
• Dominion Covenant Company Limited (Akrofuom) received US$129,866.30 without executing any work, and
• Aarun-bis Company Limited (Bunkpurugu) similarly carried out no work.

One of the largest single payments involved Mendanha & Sousa, which received US$960,937.69 for a project at Mankranso, but executed less than 10 per cent of the work, leaving US$375,702.30 to be refunded.

Tk Waters Limited, contracted for the Nangodi hospital, executed work worth US$571,112.89 out of US$1.10 million received, leaving a refund balance of US$530,513.11.

Auditor-General issues surcharge notices

The audit report formally recommended that the Auditor-General exercise his constitutional mandate to recover the funds.

“It is recommended that the Auditor-General invoke Article 187(7)(b) and surcharge the 35 contractors the sums to be refunded to the state,” the report stated.

Speaking to the Daily Graphic, Mr Akuamoah Asiedu confirmed that disallowance and surcharge notices had already been issued.

“After 14 days, if they fail to show cause, the money becomes a debt due and owing to the state,” he said.

Agenda 111 under scrutiny

The Agenda 111 initiative, a flagship programme of the New Patriotic Party (NPP) government aimed at constructing 111 hospitals nationwide, has faced sustained public scrutiny over delays, cost overruns, and implementation challenges.

The surcharge is expected to intensify calls for accountability and stronger contract management in the execution of major public infrastructure projects.

Source: Daily Graphic Online

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