Accra, Ghana – The Ghana Audit Service has issued a surcharge against 35 contractors, requiring them to refund a total of $7.9 million (approximately GH¢94.6 million) to the state. The funds were initially paid as mobilisation fees for the construction of hospitals under the government’s flagship Agenda 111 initiative, which aims to build 111 hospitals nationwide.
According to the audit, conducted between December 2021 and December 2024, contractors collectively received $11.16 million in mobilisation payments across 19 project sites. However, they executed work valued at only $5.96 million, leaving a significant portion of funds unaccounted for.
An additional $4.35 million was paid to 11 companies, who carried out only $2.49 million worth of inception work before their contracts were terminated, leaving $1.92 million unfulfilled.
The audit revealed that some contractors never moved to project sites, while others completed less than 10% of the work for which they were paid. These findings prompted Auditor-General Johnson Akuamoah Asiedu to invoke his constitutional powers to surcharge all 35 companies and individuals, seeking full recovery of the funds.
Breakdown of Findings
Of the total, 24 contractors with active contracts are required to refund $5.96 million, as the work they delivered was grossly inadequate compared to the mobilisation payments received. Some contractors are being surcharged for zero work, including:
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Adeiso hospitals: Imperial Homes ($1.01 million), Grand Unique Company Limited ($81,074), and Terraefuoco Limited ($130,910).
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Agbogbloshie hospital: Casa City Limited and Dynamic Access Limited.
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Other zero-work contractors: 4G Building Technologies Ltd, Josano Limited, Asvas Company Limited, Ghire Limited, Concord Consult Limited, Delovely Company Limited, Osini Group Limited, and Noble Gen Limited.
For terminated contracts, notable cases include:
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Hallwort Ghana Limited (Adabokrom): $67,772.60 for zero work.
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Dominion Covenant Company Limited (Akrofuom): $129,866.30 for zero work.
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Mendanha & Sousa (Mankranso): Paid $960,937.69 but completed less than 10% of the work, leaving $375,702.30 to be refunded.
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Tk Waters Limited (Nangodi): Executed $571,112.89 of $1.10 million, leaving $530,513.11 to be returned.
Some contractors, however, delivered work close to mobilisation amounts received:
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Rajar Engineering (Akatsi): 9.8% completion of $937,724.53 paid.
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Jaborah Construction Limited (Akrofuom): 9.7% completion.
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Ark Express Ghana Limited (Busunya): 9% completion of $129,866.30.
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Kofi Job Company Limited (Bantama Sub-Metro, Ampabame): 8.63% completion of $1.43 million.
Legal Basis and Next Steps
The Auditor-General has invoked Article 187(7)(b) of the Constitution, which allows disallowance of any expenditure contrary to law and the surcharging of responsible persons.
In an interview with the Daily Graphic, Mr. Asiedu stated:
“After 14 days, if the contractors fail to show cause, the money becomes a debt due and owing to the state.”
The Agenda 111 initiative, a flagship project of the ruling New Patriotic Party (NPP), has been under public scrutiny due to delays and concerns over contractor performance. This latest audit exposes systemic issues in project management and accountability for mobilisation payments.
