Some former officials in the erstwhile John Mahama Administration would soon be arraigned before court to answer criminal charges for the misuse of funds meant for the Saglemi Housing project.
Mr Samuel Atta Akyea, the Minister for Works and Housing, who dropped the hint, said a sum of US$80 million, representing 40 per cent of the contract sum, was paid as mobilisation to the contractor (Construtora OAS Ghana Limited) when actual work had not started.
That, he said, made the contractor transfer US$40 million abroad.
“I submit that the seed of the bankruptcy of the Saglemi Housing Project was sown by this dubious act. This racket was so strong that the Ministry did not demand a performance bond as necessary prerequisite before the release of US$80 million,” the Minister said.
Mr Atta Akyea disclosed this when he appeared before Parliament to answer a question by Mr Frank Annoh-Dompreh, Member of Parliament (MP) for Nsawam-Adoagyiri, on the state of the Saglemi Housing Project.
Former President Mahama, on August 15, 2012 granted executive approval to the Ministry of Water Resources, Works and Housing to construct 5,000 affordable housing units by Messrs Construtora OAS Ghana Limited for sale to workers through a mortgage arrangement via Ghana Home Loans.
The contractor was to utilize a Buyers Credit of US$200 million from Credit Suisse International for the project.
Mr Atta Akyea stated that despite the State paying more than 90 per cent of the contract sum, it was appalling to note that the contract was varied to 1,502 housing units from the original 5,000 whiles the sum remained US$200 million.
He said the contractor could only deliver 636 housing units, which were unfit for human habitation because the necessary amenities like water and electricity had not been fixed and the entire project lacked on-site infrastructure, especially a drainage system.
However, 388 housing units are at various stages of completion.
Godfred Sey/Ahotoronline
