Wednesday, January 15, 2014

GYEEDA Contracts Scrapped, As Firms Agree To Refund Cash

By Edmund Mingle
Service providers under the Ghana Youth Employment and Entrepreneurial Agency (GYEEDA) programme have agreed to refund all monies advanced to them, as the government has abrogated all, contracts under GYEEDA.
President Mahama (right) receiving the GYEEDA
Report from Youth and Sports Minister,
Elvis Afriyie Ankrah
The terminated contracts under the GYEEDA modules included those with Rlg Communication's training module, Asongtaba Cottage Industry & Exchange Programme (ACI&EP), and the Better Ghana Management Services Limited, a subsidiary of Jospong Group of Companies and Craftpro Limited.

Following the termination of the contracts which was communicated to the parties in letters dated January 9, 2014, and demand notices by the Attorney-General, the Rlg Communications, Asongtaba Cottage Industry & Exchange Programme and Craftpro Limited indicated their preparedness to refund all monies advanced to them by the government under the respective GYEEDA projects.

The termination of the contracts, which formed part of the government fight against corruption, followed the submission of a committee’s investigative report on the operations of GYEEDA, by the Youth and Sports Minister, Elvis Afriyie Ankrah, to President John Mahama on January 7 this year.

The report recommended the abrogation of some contracts, which it found to have been inappropriately awarded, and of the monies refunded.

Mr. Afriyie Ankrah who confirmed the contracts termination to the Ghanaian Times yesterday, said the Attorney-General was dealing with the affected firms on the timelines for the refund of the monies.

Asked about the possibility of prosecution of people and groups found culpable, he noted that such decision was for the Attorney-General to take, indicating that the Attorney-General Department had been collaborating with the Economic and Organised Crimes Office on the GYEEDA investigations.

According to the minister, the cancellation of the contracts, which was communicated in letters signed by Alhaji Abdulai Yakubu, Chief Director of the Ministry of Youth and Sports, was done after a series of meetings between the government and the companies.

The letter said "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," it added.
Following notices of demand for the refund of the monies which the Attorney-General indicated in the demand notices that those monies were paid without Parliament’s approval, Rlg Communications Limited, agreed to refund over GH¢7. 2million while Asontagba Cottage Industries and Exchange Programme, agreed to refund over Gh¢ 41.3million. Caftpro Limited is also refunding about GH¢7.5million to the State.

In their separate letters responding to the demand notices by the Attorney-General, the three companies, prayed a little more time beyond the five days timeline given to them in the demand letters.

Craftpro Limited and Asontgtaba Cottage Industries are refunding the interest-free set up portion of the contract sum, while Rlg Communications is refunding monies “wrongly termed a loan” under the contract.

Rlg Communications’ letter dated December 12, 2013, signed by the company’s lawyer, Prosper Harrison Addo, and addressed to the Attorney-General and Minister of Justice, prayed for more time to refund the money.
“While we agree to refund the interest free refundable portion of the contract sum, which we have started per the contract terms, it is impossible to refund the amount due and owing as at today in five days, unless we are being set up to default payment and/or jeopardize the operation and the very existence of the company.

“We are by this letter praying your good self for a meeting at your earliest convenience to discuss the issues raised in your letter and our reply to come out with a workable plan,” the letter said.
END

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