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Zoomlion Ghana breaches contract with Garu District Assembly – Auditor-General’s Report

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The Garu District Assembly has been advised by the Auditor-General to compel Zoomlion Ghana Limited to comply with the dictates of a contract signed between the two for the supply of skip trucks and solid waste containers.

This was contained in the Report of the Auditor-General on the Management and Utilisation of the District Assemblies Common Fund (DACF) and Other Statutory Funds for the year ended 31 December 2021.

“The Service Agreement between Zoomlion Ghana Limited (ZGL) and Garu District Assembly provides that, ZGL shall provide 11 solid waste containers and two skip trucks for the haulage of solid waste for a quarterly payment of GH¢53,187.50. The audit team noted that, since 2019, Zoomlion Ghana Limited supplied only one skip truck instead of two as indicated in the agreement, even though they are paid the full complements of the contract.”

“The District Health and Environmental Officer explained that he has not sighted the contract document before the audit team came and was not aware of the terms and conditions under the service agreement,” portions of the report read.

The breach of contract is in violation of “regulation 78 of the Public Financial Management Regulations, 2019 (L.I.2378) [which] states that a Principal Spending Officer of a covered entity is personally responsible for ensuring in respect of each payment of that covered entity, that evidence of services received, certificates for work done and any other supporting documents exist.”

The Auditor-General thus encouraged “management to ensure that the company fulfils its
obligation of the contract.”

Source: A1radioonline.com|101.1MHz|Mark Kwasi Ahumah Smith|Ghana

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