Waste Management company, Zoomlion Ghana Limited, is before an Accra High Court, challenging the decision of the Auditor General’s to surcharge the company of an amount of Gh¢184million.
The Auditor-General’s report states that Zoomlion continued to receive payment for the fumigation exercise up to August 2018 even though the contract between the company and the Ministry of Health (MOH) was a four-year contract, which ended in August 2014.
That in October 27, 2018, the Auditor-General issued a surcharge and disallowance against Zoomlion for over Ghc184 million for a fumigation exercise which contract had ended but the company was still being paid by the state through the National Health Insurance Authority (NHIA).
That was after an audit conducted by the Auditor-General on the accounts of the NHIA made findings that, Zoomlion had between the year 2007 and 2018 allegedly been paid a total amount of GH¢184,901,650.00 devoid of due process.
On December 5, 2018, Zoomlion appealed the decision of the Auditor General at the Accra High Court. On Wednesday morning when the case was called, counsel for Zoomlion, Osafo Buabeng told the court that the contract ended after four years and was not renewed, adding however that Zoomlion continued to work up to August 2018 and was duly paid by the NHIA.
He maintained that the contract was still in force because both parties had maintained a contractual relationship.
“It is our submission that by maintaining their respective contractual relationship, both the MOH and Zoomlion impliedly renewed the contract.”
Mr. Buabeng said the Auditor General did not give Zoomlion the opportunity to respond to the allegations leveled against the company, as Zoomlion was not given a copy of the management letter written by the Auditor General on June 19, 2018 to the MOH and the NHIA which detailed all the alleged infractions by Zoomlion.
The court presided over by Justice Georgina Mensah – Datsa, adjourned the matter to July 15, for counsel for the Auditor General, Mr Vincent Odikro Nyame, to respond to the assertions by Zoomlion.