Smarttys cited again in alleged $92m bloated contract; Opoku Prempeh delves deep

The company is allegedly involved in the overpricing of a contract between the Mahama-led administration and China Hunan construction Engineering Group Corporation (a firm that has been contracted by the Mahama government to undertake an electricity project in Ghana).

The contract which involves extension of electricity to some 556 communities in Volta, Eastern and Northern Regions of Ghana at a cost of $92m, was brought to parliament on Monday but it was realised that it had been bloated by $22.7m.

According to PEACE FM Parliamentary correspondent, Emmanuel Akorli, some of the Minority Members of Parliament (MPs) raised strong objections to the deal. They claim, government should have done more due diligence to avoid the overpricing of contracts.

One of those MPs; Matthew Opoku Prempeh, was interviewed on PEACE FM’s morning show ‘Kokrokoo’ on Tuesday.

The Minority in Parliament has demanded that the house takes a second look at the contract but the Majority backed by the government has objected.

Minority Member Dr. Mathew Opoku Prempeh however disclosed that his colleagues in the Majority approved the contract although there are still some outstanding documentation issues that the Chinese firm and its local representative have failed to submit.

The National Electrification Project will be executed in rural areas in the Eastern, Volta and Northern regions.

Describing the circumstances under which the rural electrification project was overpriced by as much $9 million, Dr Prempeh said there was value for money audit by Crown Agents which indicated that the contract had initially been overpriced by $22.7 million.

Click the audio above to listen to his take on the alleged bloating of the contract.