SGAGL: No misconduct in $34.9M ambulance maintenance contract

Service Ghana Auto Group Limited (SGAGL) has strongly rebutted allegations of misconduct related to the $34.9 million contract for the maintenance and after-sales service of the 307 ambulances.

In a press statement released on August 1, 2024, SGAGL refuted claims of inflated costs and improper procurement processes, emphasising the legitimacy and transparency of their contract.

This comes on the back of allegations raised by the Member of Parliament for North Tongu and Chairman of the Economic Committee, Samuel Okudzeto Ablakwa, accusing government of engaging in a scandalous deal concerning spare parts for the ambulances.

Mr. Ablakwa alleged that former Finance Minister, Ken Ofori-Atta, approved a payment of $34.9 million to SGAGL, translating into an extravagant cost of $113,695 per ambulance.

He questioned why the government would spend such an amount on spare parts, when it could purchase fully equipped new ambulances for a similar price.

Mr. Ablakwa’s claims were further bolstered by a 2022 audit report, which he cited as evidence of inflated invoices, improper use of National Ambulance Service staff for maintenance, breaches of maintenance schedules and an unfavorable Memorandum of Understanding.

He argued that the contract had been hastily approved just before Mr. Ofori-Atta’s departure from office, and that $10 million had already been paid to SGAGL.

In response, SGAGL issued a comprehensive statement defending the contract’s integrity and addressing the accusations head-on.

The company asserted that the contract for after-sales service and maintenance was awarded through a competitive procurement process.

“SGAGL is an SPV of a consortium of seven companies that participated in a competitive procurement process, not sole-sourced, and adjudged on merit to procure and provide after-sales service and maintenance for 307 Mercedes Benz Sprinter ambulances for the National Ambulance Service (NAS),” the statement emphasised.

According to SGAGL, the procurement process began with an Invitation for Tenders from the Ministry of Special Development Initiatives on November 15, 2018.

The tender attracted 16 companies, including the seven that eventually formed the SGAGL consortium.

The consortium’s bid of $133,000 per ambulance was notably lower than competitors’ offers, which ranged from $250,000 to $300,000.

This competitive bid was supported by necessary manufacturer’s authorisations and warranties from Mercedes Benz and EMSA Ambulances.

The statement clarified that the $34.9 million budget allocated for spare parts over five years, including a $10 million letter of credit, which was meant for both mechanical and medical spare parts.

“The $34.9 million of which Letters of Credit (LC) was established for $10 million is falsely assigned to cover only mechanical parts, and the figure again deceitfully allotted at about $113,000 worth of spare parts per ambulance,” the statement said.

The company noted that over 45,000 essential spare parts had been supplied, with some payments still pending.

In response to the 2022 Performance Audit, SGAGL expressed disagreement with the findings, particularly regarding alleged double payments.

The company stated that it had refunded amounts wrongly labeled as double payments and reiterated its compliance with the maintenance schedules.

This, SGAGL warned against the dissemination of false information in the procurement of the ambulances and its after-sales service threatening to seek legal actions against persons who spread such false information.

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