Government has withdrawn an amount €1.7 million (GHC7, 513,154.34) allocated for the construction of a bungalow after the Minority expressed outrage at the amount.
The bungalow, to be built for the Vice Chancellor of the proposed University of Environment and Sustainable Development, will now cost €540,000 (GHC2,386, 531.38).
This represents a difference of ?5,126,622.96 which is twice the new cost tabled by the government.
The Minority raised questions about the amount after Parliament approved a €38 million (GHC168,047,360) loan agreement between Ghana and the Deutsche Bank for the development of the university to be situated at Somanya in the Eastern Region.
Minority Leader, Osei Kyei Mensah Bonsu found the amount quoted in the agreement preposterous and a complete waste of resource.
“The Vice Chancellor’s bungalow alone is going to cost us as a nation €1.7 million, where are we headed as a nation?”
“This is so dangerous for the economic health of this country. Why are we being too profligate?” he queried.
Joy News’ Parliamentary correspondent, Elton Brobbey reports the amount has subsequently been withdrawn and a new one detailing the commercial agreement for the construction of the university laid.
Member of Parliament for Dome Kwabenya, Adwoa Safo welcomed the development.
She said Ghanaians, “are getting value for money and in government contracting, it is very important to have comparative analysis of the costing and pricing of a contract."
She urged that in subsequent agreements, government should not wait until questions are raised before ensuring that there is value for money audits in contracts.
“The value for money audit should be done before anything else,” she said. Elton also says the initial €38 million approved has been withdrawn. Parliament has rather approved €45 million (GHC197,051,395) for the construction of the university.