US$74m dustbin contract: Gov’t did not have money to pay us… Zoomlion boss

Contrary to reports that government has cancelled a $74m contract awarded to the Jospong Group of Companies to supply waste bins, the Executive Chairman of Jospong Group of Companies, Joseph Siaw Agyapong has maintained that rather government did not have money to pay his company.

At a Jospong Group of Companies press soiree in Accra on Thursday, he clarified the issues, stressing that government did not have money to pay and that there was no mischief in the whole deal.

“We had an agreement with government that we will not supply if they cannot pay. Government didn’t have money to pay, not that it was terminated-the contract elapsed by itself over the two year, if it was terminated, it could have been terminated in 2017-no, because the contract was still valid.

We did not supply because government did not have money and so naturally elapsed” he said.

 

US$10m Ecobank deal

According to Mr. Siaw Agyapong, they reached out to Ecobank with a proposal, which provided US$10m to enable the company kickstart the dustbin business on a commercial basis.

“Now we have Ecobank, we are doing it, you pay me service, I get money, so I lost nothing, no contract was terminated or cancelled, it is a mischief and it is just to tarnish the image” he added.

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Furthermore, he explained that in 2017, there was a media speculation that Zoomlion has supplied bins to the districts, but he argued that it was a “kind of mischief and a way to just tarnish the image of the company”.

In view of the media speculation, he added that, his company approached the Ministry of Local Government and Rural Development whether it was still interested in the arrangement.

However, it never materialized because the Ministry stated that it was facing financial challenges, Mr.Agyapong noted.

So we approached the ministry that are you still interested in this business- they said well we are facing financial challenges, then we wrote to them, subsidiaries wrote to them and we were like if you don’t have money then we cannot supply.

The company in October last year announced that it will distribute one million waste bins nationwide to every household, in collaboration with metropolitan,municipal and district assemblies.

 

Background

Reports had indicated that government has cancelled a $74m contract awarded to the Jospong Group of Companies to supply waste bins, a contract, an Accra based radio station, JoyNews investigation found to have been highly inflated.

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