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Sun, Apr

EUROGET IN $18M DUBIOUS PAYMENT - Over controversial hospital projects

Business & Economy

Government has been called into action to probe the circumstances under which Euroget De-Invest was paid a sum of $18 by the previous government in respect of the contract for the construction of nine hospitals across the country.

Government has been called into action to probe the circumstances under which Euroget De-Invest was paid a sum of $18 by the previous government in respect of the contract for the construction of nine hospitals across the country.

 

In April 2008, Euroget signed a Memorandum of Understanding with Ghana to design, engineer, construct and equip nine hospitals with a total capacity of 1,310 beds.

The projects comprised one military hospital in Kumasi, one regional hospital in Wa and another one in Kumasi, and district hospitals for Salaga, Nsawkaw, Tepa, Konongo, Twifo Praso and Madina.

Under the terms of the contract, the Egyptian company was to obtain and provide financing to the tune of $612.42 million, being principal and insurance, to commence the construction of the hospitals. 

The project was turnkey, requiring that any payment to the company could be made only after the 9 hospitals, fully equipped, had been delivered to the nation on or before the deadline of November 2012.

But the huge sum of money was paid to the company at a time there was no clear evidence of any serious effort to execute the project, with the payment being made at the blind side of then President John Evans Atta Mills.

Credible information available to the Daily Statesman indicates that the Chief Executive of Euroget De Invest, Said Deraz, is pushing for additional money from Government.

Dr Said Deraz has allegedly secured documentations to support his claim for US$147 million as supposed expenditure on the project, for which he is pushing for payment, at a time most of the projects are at a standstill.

For instance, the contractor has not laid a single block for the Madina and Adenta district hospital projects, apart from the fact that works at the Salaga, Wa, Tepa and Twifo Praso project sites have all stalled.

No work is currently taking place at the Wa site due to what insiders say are financial challeges, while work has been abandoned at the Tepa site.

Under the the contract, the entire project should have been completed within three years of commencement, that’s between 2008 and 2011.

Important Ghanaian sources close to the Egyptian company are therefore urging the Akufo-Addo government to cause investigation into the circumstances under which the sum of $18m was paid by the Ministry of Finance and resist any move for additional payments to be made.

 

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