20th September 2023 2:01:14 PM
2 mins readThe Chairman of the Public Accounts Committee (PAC), James Klutse Avedzi, has issued a stern warning to Metropolitan, Municipal, and District Assemblies (MMDAs) against the renewal of contracts with the waste management company Zoomlion, citing a lack of apparent benefits.
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During a public accounts committee hearing held in Ho, the Member of Parliament for Ketu North emphasized that Parliament had officially endorsed the non-renewal of contracts with the waste management firm.The caution was prompted by the Fanteakwa South Municipal Assembly's failure to furnish the necessary documentation required for the renewal of its contract with Zoomlion.
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Additionally, the committee has suggested a thorough review of the existing agreements with Zoomlion, given that many Assemblies lack transparency in their dealings with the company.“I am told that there is a clause in the contract that gives automatic renewal. Unless you the assembly will communicate to the company the intention not to renew.
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“So go back and read your contract document and then make reference to that clause, and inform Zoomlion that when your contract expires, you will not renew it again. Because you are not deriving any benefits from that, you are just wasting that money.”Avedzi highlighted a particular clause in the contracts that allows for automatic renewal unless the assembly communicates its intention not to renew.
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He advised the assemblies to carefully examine their contract documents, refer to this clause, and inform Zoomlion that they do not intend to renew the contracts upon expiration due to the perceived lack of benefits.Avedzi's warning comes in response to growing concerns regarding the cost-effectiveness and transparency of Zoomlion's contracts with various MMDAs.
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Critics have previously argued that the company charges excessive fees for its services, and some contracts have allegedly been awarded without proper due process.
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