Prez Strikes At GYEEDA

The Mahama government, which has been struck by a series of financial scandals in some ministries, departments and agencies, appears to have come out of its shell to fight against the canker.  

The first casualty is the controversial Ghana Youth Employment and Entrepreneurial Development Agency (GYEEDA). The operations of modules under GYEEDA were reportedly tainted with corruption, a bane which President Mahama himself described as mass murders, during his recent meeting with the press.

Available information, coupled with letters sighted by The Chronicle, indicates that the government, through the Ministry of Youth and Sports has abrogated all contracts signed with service providers under GYEEDA.

The letters, signed by Alhaji Abdulai Yakubu, Chief Director at the Ministry of Youth and Sports and dated January 9, 2014, reads:   “I am directed to convey to you, Government’s decision to discontinue or terminate the contract with immediate effect.

‘You are, hereby, requested to continue to have engagements with the Attorney General’s Department and Ministry of Justice on your liabilities to GYEEDA and ensure the refund of same to Government”,

The letters explained that the decision to abrogate the contracts was reached following a series of meetings between government and the parties.

Among the companies whose contracts have been cancelled are the Zeera group, which was executing road maintenance module, yet major roads in the country are full of potholes,   the Better Ghana Management Services, Asongtaba Cottage industry and Exchange Programmes among others.

It would be recalled that a committee set up by the Ministry of Youth and Sports to delve into the allegation of malpractices that rocked the implementation of the modules reported that From 2009 to 2012, based on figures from the NYEP Finance Unit, GYEEDA paid approximately seven hundred and eighty six million Ghana cedis (GH¢ 786,000,000) to Service Providers (SPs).

‘The records also show that as of the time of writing this report, the total amount owed to SPs stood at two hundred and fifty nine million Ghana cedis (GH¢ 259,000,000). This means that Government would have incurred at least one billion and forty five Ghana cedis (GH¢ 1,000,000,045) as cost to SPs alone, from 2009 up to 30th June, 2013,’ the report noted.

‘Several of the contracts between GYEEDA and SPs lack basic standard elements of contracts such as critical dates including commencement and termination dates. Tenure and clearly defined deliverables are missing from some of the contracts. There is also a lack of coherence in different parts of the MoUs such as the preamble statements and the operating parts.

Some MoUs did not have adequate provisions to protect national resources, let alone provide key performance indicators for measuring success. The use of MoUs, when legally binding agreements should govern such relationships suggests a limited or absolute non-involvement of the Office of the Attorney-General and Minister of Justice in the execution of all contracts.

‘Again, the Committee observed that the use of single source procurement processes for all the modules contracted was either as a result of the non-involvement of the Office of the Attorney   due to receiving uninformed and inadequate legal advice from the Office of the Attorney-General and Minister of Justice. ‘

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