Waste management company Zoomlion Ghana Limited has called on the government to pay interest on delayed reimbursements under its contract, to help cushion the financial strain caused by the prolonged delays.

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The company’s renewed calls for interest payment comes at a time when conversations about whether YEA should renew its contract with the waste management firm over unfair testament of workers in meagre salaries

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To clarify these claims, Zoomlion in response issued a statement dated April 30, where it offered a breakdown of their contract with the YEA and its provisions and how they appear to sacrifice more for the greater good of the country as opposed to the general narrative by many who believe they exploit workers.

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In the statement, they explained that the contract binds Zoomlion to pay these workers upfront every quarter and the government on the other hand is supposed to reimburse the following month.

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However, consistent delays have led to financial strain, prompting the company to request interest as compensation for the loss in value caused by the long wait.

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A letter from Zoomlion’s Director of Finance, dated March 25, 2024, reportedly outlined the overdue invoices and the interest accrued. The contract between Zoomlion and YEA includes a clause allowing the company to charge interest on delayed payments, which Zoomlion has invoked to claim GHS90 million in interest charges.

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Consequently, Zoomlion has made a fresh call to the government to pay them their long overdue interest which has accrued over the years due to payment delays.“ Undue delays in payments to Zoomlion for several months have necessitated the call for interest payment, to cushion the company’s loss of value occasioned by the long delays. Zoomlion has submitted and continues to submit quarterly and annual reports to the YEA since 2008” parts of the statement stated

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In the same vein, Acting Chief Executive Officer of the Youth Employment Agency (YEA), Malik Basintale, has made it clear that he will not extend the existing contract with Zoomlion Ghana Limited should the current salary of GH¢250 for sanitation workers remains the same.

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Also, the Chairman of the Committee of Health in Parliament has revealed plans to invite Mr Azure to furnish the committee with evidence to validate his assertions and recommendations.

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“We want to invite Manasseh Azure to appear before the committee, maybe when Parliament resumes, for him to share his information. Thousands of Ghanaians will lose their jobs if this contract is not renewed,” he said.

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Mr. Oti emphasized that any decisions about the contract's future would be made only after carefully considering all perspectives. He warned that canceling the contract might lead to significant job losses, as Zoomlion currently provides employment to thousands of Ghanaians.

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He proposed the establishment of a special fund to support sustainable sanitation and waste management projects nationwide.

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Mr. Oti also reaffirmed the government’s commitment to clear arrears worth GH¢13 billion owed to Zoomlion.

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