Ministry of Health Clarifies $34.9m Ambulance Deal
The Ministry of Health has confirmed a deal with Service Ghana Auto Group Limited for the provision of after-sales service and maintenance for 307 Mercedes Benz Sprinter 315 CDI ambulances purchased few years ago by the government.
However, it clarified that $10 million out of the $34.9 million requested for payment to the company has been paid by the government.
“The Ministry of Health would like to clarify that the Service Provider, Ghana Auto Group Limited, has not been paid an amount of S34.9 million as widely reported.”
It explained that the deal was honoured with a part of the Ministry of Special Development Initiatives’ apportioned annual budget allocation to support the National Ambulance Service until its dissolution.
In a statement released by the Ministry following receipt of a petition for investigations into the deal by the Office of the Special Prosecutor, it said the Special Initiatives Development Secretariat took over the execution of the contract afterwards.
“On March 10, 2023, the Office of the Chief of Staff requested the Ministry of Health to explore ways to support the National Ambulance Service in maintaining the fleet of ambulances due to Parliament’s refusal to approve the budget estimates of the Special Initiatives Development Secretariat for the 2023 fiscal year.
“Subsequently, the Ministry of Health wrote to the Ministry of Finance requesting the establishment of letters of credit for an amount of $34,904,505.00 on behalf of Service Ghana Auto Group Limited for the procurement of spare parts for the 307 units of ambulances.”
In response to this, it said the Ministry of Finance said it could only fund up to $10 million of the requested amount and recommended that the Ministry of Health explore financing the difference through the National Health Insurance Authority (NHIA).
The NHIA in response following a correspondence refused the request.
The Ministry noted that is committed to ensuring a sustainable maintenance regime for all fleets procured for the National Ambulance Service to provide reliable, efficient, and safe emergency medical services.
It also assured that it was prepared to avail to bring further clarity to the issue.
Background
According to the MP for North Tongu Constituecy, Samuel Abu Jinapor, the approval for the purchase was given by the former Finance Minister five days before he left office in a reshuffle.
“In his last shockingly sleazy conduct, Ken Ofori-Atta by a letter dated 9th February 2024 approved a staggering US$34,904,505.00 to be paid to the discredited Service Ghana Auto Group Limited for the procurement of spare parts for the 307 ambulances purchased by the government in 2019. On the same 9th February 2024, the busy Finance Minister instructed the Controller and Accountant-General to release US$ 10 million, equivalent to GHS120,711,000.00.
“My impeccable tracking of this transaction confirms that the Controller and Accountant-General processed and released the GHS120,711,000.00 on February 23, 2024, which was promptly received in the accounts of Service Ghana Auto Group Limited. An analysis of this dubiously outrageous transaction valued at US$34,904,505.00 for spare parts for 307 ambulances, actually translates into US$113,695.00 per ambulance.”
The MP who suspects foul play by the government in this transaction alleged the Service Ghana Auto Group Limited was incorporated more than a year after the 307 new ambulances were commissioned by President Akufo-Addo on January 28, 2019, and was handpicked without a competitive procurement process.
Additionally, he alleged the company had received some GHS115,342,573 in payments for shoddy servicing of the ambulances between 2020 and 2023 before the recent deal.
Ablakwa is of the view that the US$34,904,505.00 could have afforded new ambulances for the health sector.
“Checks from many Mercedes Benz ambulance dealers across the world show that US$113,695.00 is far more than the value of a considerable number of modern fully equipped new ambulances. Why sign a rip-off and an unconscionable sweetheart deal of US$ 113,695.00 just for spare parts when you can buy a new fully equipped modern Mercedes Benz ambulance for the same value, and even less?”
The lawmaker petitioned the OSP to investigate the contract earlier this week.
In a letter acknowledging receipt of the petition, the Office said it was scrutinizing allegations of corruption and corruption-related offences and noted that investigations would commence if the case is found to be within its mandate.
