Mr Speaker, on 27th February, 2014, the then Minister for Water Resources, Works and Housing, Hon Collins Dauda (MP), on his own motion, rubbished the parliamentary approval and reviewed the original agreement and signed his own First and Restated Agreement with Messrs Construtora OAS Ghana Limited to downsize the number of houses to be constructed to 1,502 housing units with the same contract sum of US$200 million.
Mr Speaker, on 21st December, 2016, 14 days after President John Dramani Mahama had lost his position in the elections, the then Chief Director, Alhaji Ziblim Yakubu, and the contractor, reviewed the First Amended and Restated Agreement and signed the Second and Restated Agreement, in which the scope of the works were reduced to 1,024 instead of the parliamentary-approved 5,000 housing units, 388 units to be finished completely externally and 90 units to be left at foundation or lintel levels. This brings the total units to be constructed to 1,502 units at a revised contract sum of US$181,519,000.
On 31st July, 2017, the Chief Director of MWRWH reviewed the Second Amended and Restated Agreement and signed the Third
Amended and Restated EPC Agreement. This was to extend the period to December 2017 to allow the contractors complete the project. The scope in the Second and Restated Agreement was maintained, but the contract price was reviewed further downwards to
US$181,018,000.
Status of Implementation
Mr Speaker, on 10th January, 2013, the Ministry of Finance informed MWRWH that Messrs Credit Suisse International had disbursed a total amount of US$198,450,000 being, US$200 million less fees and transaction expenses of US$1,550,000 into the Escrow account at the Bank of Ghana.
Mr Speaker, I do not know if the then MWRWH had been bewitched by the contractor. A fantastic sum of US$80 million, representing 40 per cent of the contract sum, was paid as mobilisation to the contractor by MWRWH. Immediately the sum of US$80 million was released to the contractor, when actual work had not started, the contractor transferred to abroad US$40 million.
I submit, that the seed of the bankruptcy of the Saglemi Housing Project was sown by this dubious act.
This racket was so strong that the Ministry did not demand a performance bond as a necessary prerequisite before the release of the US$80 million.
Mr Speaker, in early 2014, actual construction works were commenced by Messrs Construtora OAS Ghana Limited at the project site. Currently, the racket could only deliver 636 housing units which are unfit for human habitation because the necessary amenities like water and electricity have not been fixed, and the entire project lacked on-site infrastructure
especially a drainage system. Three hundred and eighty-eight housing units are at various stages of completion.
3.0 Amount Disbursed by the