Former Chief of Staff faces CID over inflated $74m waste bin contract

General News News

Former Chief of Staff, Julius Debrah, is expected to appear before Financial Forensic Unit of the Criminal Investigations Department Friday to answer questions on the $74 million waste bins contract.

Joy News investigations established that Julius Debrah was the one who initiated the contract, which was found to have been inflated by at least 31 million dollars or 130 million cedis.

Julius Debrah was the Minister of Local Government and Rural Development until he was appointed by President Mahama as his Chief of Staff in February 2015.

In November 2014, the Local Government Ministry under the watch of Julius Debrah awarded a contract for the supply of 155,000 waste bins at a cost of 24 million cedis.

The company supplied 100,500 waste bins because the ministry said it did not have the space to take delivery of the remaining 54,500 waste bins.

Joy News investigation has revealed that thousands of waste bins are left at assemblies across the country for destruction.

Till date the supplier is still waiting to supply the rest but the Ministry of Local Government and Rural Development awarded a 74 million cedis to five companies to supply one million waste bins and 900 000 bin liners.

The contract was authorized by Julius Debrah and all the five companies single sourced for the contract belong to the Jospong Group of companies.

Joy News investigation revealed that the cost of the contract may have been highly inflated.

For instance, a piece of bin liner at the Jospong Group costs less than one cedi but the Jospong Companies were to supply to the state at 67 cedis a piece.

The 240 liter waste bin costs 150 cedis at the Jospong Group. With a transportation cost of 20 cedis per waste bin, each bin should 170 cedis, but the companies are supply to the state at 258 cedis a bin.

Julius Debrah did not only write to authorize the award of the contract but he also wrote a letter to the Finance Ministry directing him to make provision in the 2017 budget under the Plastic Waste Recycling Fund to cater for the contract.

Also appearing at the CID is Alhaji Amin Draman, a former Director of Administration at the Local Government Ministry. Both are expected to answer questions on their role in the deal.

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