Ibrahim Mahama’s Engineers & Planners Company Limited (E&P) has disclosed that it undertook some civil works at Aboadze to prepare a platform to receive the power generating units and other ancillary equipment for the scandal-riddled AMERI Power Project but insists that it has nothing to do with procuring the contract for the United Arab-based company.
“Engineers and Planners is in no way involved and has no role in AMERI’s contract with the Government of Ghana and the purchase or sourcing of power turbines by AMERI for the generation of power”, the engineering company said in a statement yesterday, Tuesday.
According to the statement, “Engineers and Planners was contracted by the Volta River Authority (VRA) to undertake some civil works at Aboadze to prepare a platform to receive the power generating units and other ancillary equipment for the AMERI 250MW Power Project.
The opposition New Patriotic Party (NPP) issued a statement on Monday on the controversial AMERI power deal alleging that “two of the companies connected to this transaction are also closely connected to President John Mahama. These are Engineers & Planners, owned by the President's brother, and entrepreneur, Ibrahim Mahama. In fact, President John Mahama was at one time a director of Engineers & Planners. The other firm, Amandi Construction, which has also generously benefitted from government contracts and its executives are very close to the President, is a sister company to STL, the controversial firm that is a contractor to both the Electoral Commission and the National Health Insurance Authority regarding the biometric register of both institutions. The involvement of these two firms in a deal that is reportedly inflated to the tune of some US$360 million is a serious cause for concern, adding to the worrying matter of how the cost of corruption is sinking our nation under this NDC Government.”
However, E&P has countered the NPP claims about the company, explaining “President John Dramani Mahama has never been a director or involved in any way with the Board or Management of E&P Company Limited”.
Meanwhile Energy think tank Africa Centre for Energy Policy (ACEP) which first expressed worry at the contract early this year, says it is “erroneous” for the government to insist it has not made “any payment to AMERI and will not be making any payments for the cost of the equipment.”
Disagreeing with the Power Ministry over explanations into the deal, Dr. Mohammed Amin Adam, Executive Director of ACEP, in a statement issued after Dr Kwabena Donkor had issued a press statement, said; “We know that Government has not made any payment to AMERI. But when VRA makes the monthly payments prescribed by the contract, it will constitute payment for the turbines and the use to which it is being put. Indeed for the entire 5 years, these payments are to be made to AMERI. AMERI will be paid US$850,000 per turbine per month.
“This will amount to US$8.5 million for the ten turbines, with cumulative annual payments of US$102 million. In addition, an amount of US$16.6 million will be paid as variable cost. This brings the total payment due to AMERI and its partners to almost US$120 million.”
The Energy Think-tank further averred that inasmuch as "Ghanaians want more power produced for industrial and domestic use, it is important that we do not compromise value for money and turn round to ask them to pay more for badly negotiated power deals. We encourage the Ministry to in future subject such deals to public debate to ensure that his decisions reflect the genuine concerns and interests of our people."
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