KMA Officially Okays Takeover Of Kejetia

The General Assembly of the Kumasi Metropolitan Assembly (KMA), last Friday, unanimously approved recommendations by a 12-member committee to take over the management of the Kejetia lorry terminal, which, hitherto, was being managed by Freko FD Enterprise Limited, as the single largest revenue collector at the KMA, since June 2002. The committee was set up in June this year to examine all outsourced revenue collections contracts and other agreements entered into by the KMA. The action of the Assembly is to ensure that it protects and derives maximum benefit from its properties, and ensure greater revenue inflow to enable it its prosecute development agenda. The committee made findings on the Build, Operate and Transfer (BOT) and Leaseholds, outsourced revenue contracts to Skymount Consult Limited, Goldstreet Real Estate Consult Limited, and Freko FD Enterprise Limited, and submitted its report for consideration and implementation by the management. With regards to the management of the Kejetia lorry terminal, the Ccommittee, upon examination of the contract, found out that the there were several violations in the contract entered into by the KMA with Freko FD Enterprise Limited. It, therefore, recommended that the KMA may decide to invoke the Termination Clause, or choose to renew the contract, based on a whole new agreement with different terms and conditions. The General recommendations by the committee were also said to apply to Freko FD Enterprise Limited, which said all contract agreements should pass through the Legal Department of the Assembly, or engage the services of a private legal firm to review all agreements before they are executed. �All contracts must contain a maintenance clause, and also allow for a periodic inspection of officials of KMA for purposes of ensuring compliance,� the committee recommended. It was also recommended that the Assembly should set up a technical Committee, which should include Legal, Finance and other relevant officers to take part in the drafting of all contract agreements. Henceforth, the Assembly shall ensure that it gives out only clearly identified parcels of land which they have all the relevant legal documents, and that all Memoranda of Understanding (MOUs) should be replaced with full contract agreements. Following this, the Assembly would have to provide a budget line in the 2014 Budget for the acquisition of the relevant documentation, in respect of KMA lands and properties, as well as ensuring that there is constant monitoring and enforcement of the terms of contracts and agreements. It was also recommended that all outsourced revenue and BOT contracts go through prescribed procurement procedures, and a committee set up to trail all BOT contracts. The Assembly was also to consider redrafting of all agreements to meet the basic legal requirements, while the Estate Department was to carry out an inventory and update the Asset Register, if any, on all landed properties of the Assembly. The Committee further recommended that the KMA identify name officials to be mandated to sign all contracts or agreements on its behalf, with their names and portfolios expressly stated, and that the Head of the Legal Department should witness all agreements executed by the KMA. It cautioned the KMA against agreements in the nature of BOTs in future. Meanwhile, the committee has suggested that the KMA takes steps to arrange for a new contract for the management of the Sokoban Wood Village, which expired in January this year. This would ensure the smooth management of the facility, which is currently facing operational challenges.