In his latest exposé raising concerns about financial mismanagement and corruption, the opposition Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has published intercepted documents from Ghana’s Ministry of Finance, unveiling a scandal involving over $34.9 million payment authorized by former Minister for Finance Ken Ofori-Atta just five days before his departure from office.
According to him, the money was intended for purchasing spare parts for the 307 ambulances distributed by the government under the One District One Ambulance initiative.
The documents reveal that on February 9, 2024, Ofori-Atta approved the staggering amount to be paid to Service Ghana Auto Group Limited. On the same day, he instructed the Controller and Accountant-General to release $10 million (GHS 120,711,000), which, according to Mr Ablakwa, was promptly processed and received by the company on February 23, 2024.
According to the MP, an analysis of the transaction shows that the cost of spare parts per ambulance amounts to $113,695.456, which exceeds the value of many fully equipped new ambulances. This, he said, raises questions about the rationale behind such an exorbitant expenditure when new ambulances could have been purchased for the same or even less.
“In his last shockingly sleazy conduct, Ken Ofori-Atta, by a letter dated February 9, 2024, approved a staggering US$34,904,505.00 to be paid to the discredited Service Ghana Auto Group Limited for the procurement of spare parts for the 307 ambulances purchased by the government in 2019.
“On the same February 9, 2024, the busy Finance minister instructed the Controller and Accountant-General to release US$ 10 million, equivalent to GHS120,711,000.00.
“My impeccable tracking of this transaction confirms that the Controller and Accountant-General processed and released the GHS120,711,000.00 on February 23, 2024, which was promptly received in the accounts of Service Ghana Auto Group Limited,” Mr Ablakwa wrote.
He added that “an analysis of this dubiously outrageous transaction valued at US$34,904,505.00 for spare parts for 307 ambulances actually translates into US$113,695.456.00 per ambulance.
“Instructively, checks from many Mercedes Benz ambulance dealers across the world show that US$113,695,456.00 is far more than the value of a considerable number of modern fully equipped new ambulances.”
Further investigations, according to Ablakwa, reveal that Service Ghana Auto Group Limited was incorporated on April 24, 2020, more than a year after President Akufo-Addo commissioned the 307 ambulances in January 2019. The company, he said, was awarded the contract without a competitive procurement process, raising suspicions of favouritism and lack of due diligence.
He notes that Service Ghana Auto Group Limited had already received GHS 115,342,573 for servicing the ambulances between 2020 and 2023 and that the company stands to make a total of GHS 653 million from the transactions, amounting to more than double the cost of the ambulances purchased in 2019.
He said the award of the contract in question to Service Auto despite being cited in a special audit by the Auditor-General highlighting several issues including inflated invoices, misuse of National Ambulance Service staff for maintenance, breaches of maintenance schedules, and an unfavourable MoU with the National Ambulance Service
In his publication, the MP announced plans to formally petition the Office of the Special Prosecutor to conduct criminal investigations into the matter. He emphasized the need to hold those responsible accountable and protect the public purse from further exploitation.
“I intend to formally petition the Office of the Special Prosecutor this week for his office to conduct criminal investigations into this sordid affair,” he stated.
Read the full publication by the MP below:
THE US$34.9 MILLION (GHS538 MILLION) AMBULANCE SCANDAL AND HOW SERVICE GHANA AUTO GROUP LIMITED HAS MADE A COOL GHS653MILLION THROUGH INFLATED INVOICES
Unimpeachable intercepted documents from Ghana’s Ministry of Finance reveal yet another scandal of ginormous proportions.
Five days before leaving the Ministry of Finance after President Akufo-Addo’s lame-duck Valentine Day reshuffle, Ken Ofori-Atta decided to teach us one more unforgettable bitter lesson. Perhaps, it was his special way of exiting with a vengeance after incessant and relentless calls from suffering Ghanaians to have him sacked.
In a grand ‘lootocratic’ conspiracy with the outgoing Health Minister, Kwaku Agyeman-Manu who was also affected by the reshuffle, the two abysmal performing ministers decided to cause more financial loss — it seems from the Sputnik V scandal, mismanagement of billions of covid funds, benefiting directly from loans accumulated, all the way to Ghana’s current bankruptcy — the two outgoing disastrous ministers didn’t think they have already wreaked enough havoc to have mercy on us.
In his last shockingly sleazy conduct, Ken Ofori-Atta by a letter dated 9th February, 2024 approved a staggering US$34,904,505.00 to be paid to the discredited Service Ghana Auto Group Limited for the procurement of spare parts for the 307 ambulances purchased by government in 2019.
On the same 9th February, 2024, the busy Finance Minister instructed the Controller and Accountant-General to release US$10million, equivalent to GHS120,711,000.00.
My impeccable tracking of this transaction confirms that the Controller and Accountant-General processed and released the GHS120,711,000.00 on February 23, 2024 which was promptly received in the accounts of Service Ghana Auto Group Limited.
An analysis of this dubiously outrageous transaction valued at US$34,904,505.00 for spare parts for 307 ambulances, actually translates into US$113,695.456.00 per ambulance.
Instructively, checks from many Mercedes Benz ambulance dealers across the world show that US$113,695,456.00 is far more than the value of a considerable number of modern fully equipped new ambulances.
Why sign a rip-off and an unconscionable sweetheart deal of US$113,695.456.00 just for spare parts when you can buy a new fully equipped modern Mercedes Benz ambulance for the same value, and even less?
What happened to value for money and love for country?
Further parliamentary oversight reveals that Service Ghana Auto Group Limited was incorporated on April 24, 2020.
Service Ghana Auto Group Limited was therefore incorporated more than a year after the 307 new ambulances were commissioned by President Akufo-Addo on January 28, 2019.
Typical of how this incurably corrupt government operates, the company was handpicked without a competitive procurement process.
Additionally, Government appears not to have done much due diligence on the directors of the company — I shall return to this in much detail later.
Deeper parliamentary oversight through GIFMIS assessments also confirms that even before this US$34.9million scandalous Ken Ofori-Atta/Agyeman-Manu send-off package, Service Ghana Auto Group Limited has received a colossal GHS115,342,573 in payments for shoddy servicing of the ambulances between 2020 and 2023.
This means, so far, Service Ghana Auto Group Limited alone will be making a mind-boggling GHS653million from these ambulances. This figure is more than double of how much the ambulances cost us in 2019. (Prevailing exchange rate of US$54million which was the cost of the 307 ambulances in 2019.)
One wonders if the Akufo-Addo/Bawumia government procured the ambulances to save lives or they were procured to serve as an unbridled cash cow for corrupt politicians and their business collaborators.
What is even more depressing, the Auditor-General’s special audit titled — Performance Audit Report of the Auditor-General on Fleet Management of the National Ambulance Service which was published on May 25, 2022 had the following extremely damning conclusions about Service Ghana Auto Group Limited:
I) Service Ghana Auto Group Limited inflated invoices;
II) Service Ghana Auto Group Limited in many instances used staff of the National Ambulance Service for its maintenance even though all payments went to their company;
III) Service Ghana Auto Group Limited consistently breached maintenance schedules and procedures and
IV) The Service Ghana Auto Group Limited MoU with the National Ambulance Service did not inure to the benefit of the National Ambulance Service.
How can any Government which claims to care about protecting the public purse be aware of this damning audit report and still proceed to award an even bigger contract of US$34.9million (GHS538million) when Ghana did not get value for money after previously paying Service Ghana Auto Group Limited GHS115million?
It is also worth remembering that this is the same company which was exposed in a viral video a couple of years ago when an ambulance sent to them to be serviced was rather used to cart cement by their unscrupulous staff. (See attached the pathetic apology they issued at the time).
Who would have predicted that a government trying everything by hook or crook to have Minority Leader, Hon. Dr. Ato Forson convicted in that infamous ambulance trial for allegedly causing financial loss of €2.37million will itself be recklessly, mindlessly and criminally causing real financial loss in excess of US$34.9million through another ambulance transaction.
Tomorrow is indeed pregnant.
I intend to formally petition the Office of the Special Prosecutor this week for his office to conduct criminal investigations into this sordid affair.
Stinky create, loot and share shall be fearlessly defeated!
For God and Country.
Ghana First.
