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26th July 2024 12:28:08 PM
3 mins readBy: Chris Kodo

The Ministry of Health has responded to concerns raised by the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, about a service contract with Service Auto Group Ghana Limited for the maintenance of ambulances.
The Ministry clarified that this contract was originally signed by the now-defunct Ministry of Special Development Initiatives and that subsequent actions were taken under the guidance of the Office of the Chief of Staff.
On September 10, 2020, the Ministry of Special Development Initiatives entered into a contract with Service Auto Group Ghana Limited to provide after-sales service and maintenance for 307 Mercedes Benz Sprinter 315 CDI ambulances. The contract included a provision for the supplier to offer a projected budget for necessary spare parts and lubricants to ensure smooth servicing and maintenance.
Following the dissolution of the Ministry of Special Development Initiatives, the Special Initiatives Development Secretariat took over the contract's execution. However, in March 2023, the Office of the Chief of Staff requested the Ministry of Health to explore ways to support the National Ambulance Service in maintaining the ambulances due to Parliament's refusal to approve the budget estimates of the Special Initiatives Development Secretariat for the 2023 fiscal year.
In response to this directive, the Ministry of Health approached the Ministry of Finance to establish letters of credit totaling $34,904,505.00 on behalf of Service Auto Group Ghana Limited for procuring spare parts for the 307 ambulances. The Ministry of Finance responded, indicating it could only fund up to $10 million of the requested amount and recommended that the Ministry of Health seek additional financing through the National Health Insurance Authority (NHIA).
Despite this, the NHIA stated in correspondence with the Ministry of Health and the Ministry of Finance that it could not fund the procurement of spare parts from the 10% allocation to the Ministry of Health, as this expense was not included in the allocation formula approved by Parliament.
The Ministry of Health emphasized that Service Auto Group Ghana Limited had not been paid the widely reported $34.9 million. The Ministry reiterated its commitment to ensuring a sustainable maintenance regime for all fleets procured for the National Ambulance Service to provide reliable, efficient, and safe emergency medical services.
Hon. Samuel Okudzeto Ablakwa had raised concerns about potential corruption in the deal, alleging that the contract was hastily approved and that $10 million had already been paid to the company. He also questioned the legitimacy of Service Auto Group Ghana Limited, noting that the company was incorporated a year after the ambulances were commissioned in 2019 and raised concerns about the company’s capacity to service the ambulances.
Furthermore, Ablakwa alleged connections between the company and President Akufo-Addo's daughters, suggesting that one of the company's directors is a close business associate of the President’s daughters. These allegations prompted Ablakwa to petition the Office of the Special Prosecutor.
In its statement, the Ministry of Health noted that all documentation covering the transaction is a matter of public record and accessible to the public. The Ministry expressed its readiness to support any efforts to bring further clarity to the issue in the public interest.
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