Deputy Finance Minister Thomas Nyarko Ampem has revealed that 35 contractors involved in the Agenda 111 initiative were allocated US$7.9 million in mobilisation funds; however, they did not mobilise to the sites or deliver work that matched the payments made.
While presenting the Auditor-General’s Report on Arrears and Payables as of the end of 2024 in Parliament on Tuesday, March 10, Mr. Nyarko Ampem stated that an audit of the Agenda 111 projects identified considerable irregularities in how the funds disbursed to contractors were utilized.
He noted that the audit confirmed that the US$7.9 million was provided to the contractors as advance mobilisation to facilitate the commencement of construction on various hospital projects nationwide.
Nevertheless, the Deputy Finance Minister pointed out that the findings indicated that some contractors had not mobilised to their designated sites, and in other cases, the work completed did not align with the value of the funds already disbursed.
“Mr. Speaker, the audit of Agenda 111 projects also disclosed that a total of US$7.9 million was allocated to 35 contractors as advance mobilisation under the programme, yet these contractors have either failed to mobilise to the site or the work performed is not commensurate with the amount paid,” he stated.
He further mentioned that the advance mobilisation guarantees obtained from the contractors at the time of payment have all lapsed, raising concerns regarding the government’s capacity to promptly rely on these guarantees to recover the funds.
Additionally, he indicated that notices of surcharge have been issued to the contractors involved in these transactions to compel them to either refund the funds or provide justification for the payments received.
“The advance mobilisation guarantees obtained by the 35 contractors who received the US$7.9 million have all expired. The Auditor General has subsequently issued notices of surcharge to the offending contractors,” he added.
The Agenda 111 health infrastructure initiative, which was initiated by former President Nana Addo Dankwa Akufo-Addo, seeks to establish district hospitals in areas that lack adequate healthcare services. Each hospital is intended to have a capacity of 100 beds and will feature living accommodations for medical personnel.
