The Attorney General has been sued over procurement breaches in the award of contract for the construction of 111 health facilities across the country.

South Dayi MP, Rockson-Nelson Dafeamekpor, in a writ filed at the High Court says government ignored Ghana’s procurement laws when it awarded a building design contract to Adjaye and Associates.

He alleges that an amount of $6 million of public money has already been paid to the company as consultancy fees. This he argues breaches portions of Ghana’s constitution.

The MP also proceeds to list various government actions he finds contrary to law. These are stated in the writ issued on his behalf by his lawyer Nii Kpakpo Samoa Addo as follows

“The Plaintiff says that the Government of Ghana contracted iRisk Management Limited, a company led by one Dr Alolo as the insurance broker in charge of the project to build 111 District, specialist and Regional hospitals across the country.

The Plaintiff says that government, iRisk Management Limited to handle correspondence with the insurance company and any claims that may arise and provide risk management advisory services.

The Plaintiff says government also contracted Enterprise Insurance as the insurance company responsible for the insurance of the Agenda 111 project. 

The Plaintiff says that the Defendant, in contracting iRisk Management Limited and Enterprise Insurance, ignored the procurement processes laid down  by law, in particular, the Public Procurement Act, 2003 (Act 663).

The Plaintiff says that the Ministry of Works and Housing, which was the entity responsible for procuring the services of an insurance broker and insurance company in relation to the Agenda 111 project was mandated by the Public Procurement Act, 2003, Act 663 to do so by competitive tendering process, save under exceptional circumstances.

The Plaintiff says that the Ministry of Works and Housing was mandated to undergo a two-stage procurement process by sending out invitation documents calling upon insurance brokers and insurance company to submit, initial tenders which contain the proposals of interested persons but failed to do so.

The Plaintiff says that the manner in which the Defendant contracted iRisk Management Limited and Enterprise Insurance could not be said to be under the restricted tendering as it did not satisfy the conditions and requirements provided under Section 38 of the Public Procurement Act, 2003 (Act 663).

The Plaintiff states that at the time of Procurement contract for Agenda 111, iRisk Management Limited and Enterprise Insurance were not the only available insurance broker in the business of providing insurance brokerage and have no exclusive rights in relation to insurance brokerage contracts for public building designs in Ghana.

The Plaintiff says that reasonable alternatives exist and such similar insurance brokerage and insurance companies should have been given the opportunity to bid and submit tenders to work on Agenda 111 to provide competition and value for money.

The Plaintiff says that the need for an insurance brokerage firm and an insurance company to the Agenda 111 project could not be classified as an “urgent need for services” and as such could not form a basis for sole sourcing.

The Plaintiff further says that it was practicable for the Defendant to engage in tender proceedings or any other method of procurement as no unforeseeable circumstances giving rise to urgency had been communicated.

The Plaintiff says that the Defendant could only procure services for a contract by inviting a proposal or price quotation from a single supplier or contractor where the conditions under section 40 of the Public Procurement Act, 2003 (Act 663) have been met.

The Plaintiff says that the failure of the Defendant to announce and call for invitation to bid for the insurance brokerage contract and the insurance company constitutes a breach of Article 36(2)(b) of the 1992 constitution.

The Plaintiff says that the Government has a duty to take all necessary steps to establish a sound and healthy economy including affording ample opportunity for individual initiative and creativity in economic activities and fostering an enabling environment for pronounced role of the private sector in the economy.”

He is therefore asking for the following reliefs

1. A declaration that the Defendant’s failure to award the contract for the design of the hospitals forming the Agenda 111 by competitive tendering was unlawful and contrary to Section 35 and 36 of the Public Procurement Act,2003 (Act 663).

• A declaration that the failure of the Defendant to comply with the laid down procedure provided under Section 35 and 36 of the Public Procurement Act, 2003, Act 663 when it awarded the contract to Adjaye and Associates renders the design contract null and void with no effect.

• A declaration that the failure of the Defendant to comply with the laid down procedure provided under Section 35 and 36 of the Public Procurement Act, 2003, Act 663 when it awarded the contract to Adjaye and Associates is in contravention of Article 36(2)(c) of the 1992 Constitution.

• An order directed at the Government of Ghana to terminate the building design contract with Adjaye and Associates.

• An order directing the Defendant to engage in a competitive two-stage tendering procurement process in order to award the contract as provided under Sections 35 and 36 of the Public Procurement Act, 2003 (Act 663).

• An order that the Thirty-Six million Ghana Cedis (GHC36,000,000.00) advanced to Adjaye and Associates as payment for consultancy fees for the design. Project management and coordination under the building design contract be refunded to the State.

• A declaration that the Defendant’s failure to award the contract for the insurance brokerage of the Agenda 111 project by competitive tendering was unlawful and contrary to Section 35 and 36 of the Public Procurement Act,2003 (Act 663).

• A declaration that the failure of the Defendant to comply with the laid down procedure provided under Section 35 and 36 of the Public Procurement Act, 2003, Act 663 when it awarded the insurance brokerage contract to iRisk Management Limited renders the award null, void and of no effect.

1. A declaration that the failure of the Defendant to comply with the laid down procedure provided under Section 35 and 36 of the Public Procurement Act, 2003, Act 663 when it awarded the insurance brokerage contract to iRisk Management Limited is in contravention of Article 36(2)(c) of the 1992 Constitution.

• An order directed at the Government of Ghana to terminate the insurance brokerage contract with iRisk Management Limited.

• An order directing the Government of Ghana to engage in a competitive two-stage tendering procurement process in order to award the insurance brokerage contract as provided under Sections 35 and 36 of the Public Procurement Act, 2003 (Act 663).

• An order that all moneys advanced to iRisk Management Limited as payment for fees under the insurance brokerage contract be refunded to the State.

• An order directing the Defendant to charge and prosecute the Minister of Health and all officials involved in the unlawful award of the insurance brokerage contract to iRisk Management Limited for causing financial loss to the State under Section 179A of the Criminal Offences Act, 1960, Act 29.

• A declaration that the Defendant’s failure to award the insurance contract of the Agenda 111 project by competitive tendering was unlawful and contrary to Section 35 and 36 of the Public Procurement Act,2003 (Act 663).

• A declaration that the failure of the Defendant to comply with the laid down procedure provided under Section 35 and 36 of the Public Procurement Act, 2003, Act 663 when it awarded the insurance contract to Enterprise life Insurance Company renders the award null, void and of no effect.

• A declaration that the failure of the Defendant to comply with the laid down procedure provided under Section 35 and 36 of the Public Procurement Act, 2003, Act 663 when it awarded the insurance contract to Enterprise Life Insurance Company is in contravention of Article 36(2)(c) of the 1992 Constitution.

• An order directed at the Government of Ghana to terminate the insurance contract with Enterprise Life Insurance Company.

• An order directing the Government of Ghana to engage in a competitive two-stage tendering procurement process in order to award the insurance contract as provided under Sections 35 and 36 of the Public Procurement Act, 2003 (Act 663).

• An order that all moneys advanced to Enterprise Life Insurance Company as payment for fees under the insurance contract be refunded to the State.

• An order directing the Defendant to charge and prosecute the Minister of Health and all officials involved in the unlawful award of the insurance contract to Enterprise Life Insurance Company for causing financial loss to the State under Section 179A of the Criminal Offences Act, 1960, Act 29.

• Costs including legal fees.