President John Dramani Mahama has terminated the contract between the Youth Employment Agency (YEA) and Zoomlion Ghana Limited, a subsidiary of the Jospong Group of Companies.
This decision follows a petition submitted by investigative journalist Manasseh Azure Awuni, who alleged corruption and mismanagement in the execution of the contract.
In a response dated June 11 and signed by the Secretary to the President, Dr. Callistus Mahama, the presidency outlined a series of measures being implemented as a result of the petition.
According to the statement, the contract between YEA and Zoomlion has expired and will not be renewed.
Furthermore, the government has directed that all payments made to Zoomlion after the expiration of the contract be audited. Any unverified or unauthorized disbursements will be recovered.
The government has also announced a major policy shift, indicating that future sanitation-related contracts will go through competitive procurement processes.
Instead of a single nationwide contract, private firms will now compete through regional or district-level tenders.
A Cabinet subcommittee will be tasked with developing this new contracting framework, which is expected to promote innovation and reduce costs through competitive pricing.
In a significant move aimed at improving the livelihoods of sanitation workers, President Mahama has directed an upward review of sweeper wages.
Under the previous arrangement, Zoomlion received GH¢850 per sweeper, yet workers were paid only GH¢250. With anticipated cost savings from the new procurement system, the government plans to raise the amount paid to sweepers to a more equitable level.
The presidency also noted that existing fumigation contracts that have underperformed will be reviewed and, if necessary, terminated based on legal advice from the Attorney-General.
