On October 27, 2018, the Auditor-General issued a surcharge and disallowance against Zoomlion for over GH¢184 million for a fumigation exercise it carried out for the Ministry of Health (MOH) but which was paid by the National Health Insurance Authority (NHIA).
That was after an audit conducted by the Auditor-General on the accounts of the NHIA made findings that Zoomlion had between the year 2007 and 2018 allegedly been paid a total amount of GH¢184,901,650.00 devoid of due process.
The Auditor-General’s case was that Zoomlion continued to receive payment for the fumigation exercise up to August 2018 even though the contract between the latter and the MOH was a four-year contract which started in 2009 and ended long ago.
Counsel for Zoomlion, Mr Osafo Buabeng said that the contract ended after four years and was not renewed, however, the company continued to work up to August 2018 and was duly paid by the NHIA.
He said, “It is our submission that by maintaining their respective contractual relationship, both the MOH and Zoomlion impliedly renewed the contract.”
Mr Buabeng argued that the Auditor-General did not give Zoomlion the opportunity to respond to the allegations levelled against the company.
He said a management letter written by the Auditor-General on June 19, 2018 to the MOH and the NHIA, which detailed all the alleged infractions by Zoomlion was not copied to the company.
He said was in breach of Regulation 37 of the Audit Service Regulation, 2011 (C.I 70).
He argued that Zoomlion only saw the letter when the Auditor-General responded to its appeal at the court.
The court was presided over by Justice Georgina Mensah – Datsa.