Service Auto Group Ghana Limited has responded to allegations made by North Tongu MP Samuel Okudzeto Ablakwa regarding the $34.9 million (GH₵538 million) ambulance spare parts procurement deal.
This follows Mr Ablakwa's concerns about possible corruption in the deal, prompting him to petition the Office of the Special Prosecutor.
According to Ablakwa, the deal was hastily approved by the Finance Minister five days before his removal from office.
The contract included after-sales service and maintenance for the 307 Mercedes Benz Sprinter 315 CDI ambulances secured by the government in 2019.
He also questioned the legitimacy of the beneficiary company, Service Ghana Auto Group Limited, which was incorporated on April 24, 2020—one year after the ambulances were commissioned in 2019—raising doubts about their capacity to service the ambulances.
He wondered why the government went ahead to award the contract to a company that had been indicted in a report of the Auditor General.
In a statement issued on Thursday, August 1, the company described these claims as false.
The statement clarified that all companies involved in the transaction adhered to competitive procurement processes, maintaining integrity and complying with due legal processes.
Service Auto Group refuted the assertion that it was "handpicked," stating that it participated in a competitive procurement process alongside 16 companies and was selected on merit to procure and provide after-sales service and maintenance for 307 Mercedes Benz Sprinter ambulances for the National Ambulance Service.
The company highlighted that out of the 16 participating companies, seven eventually formed a consortium during the pre-tender workshop round.
It emphasized that the Ministry of Finance established a $10 million Letter of Credit (LC) rather than making direct payments, contrary to the allegations. Additionally, bank loans had to be procured to finance key obligations under the contract.
The statement also addressed claims about associations with certain individuals, noting that while "Stephen Okoro is a director of one of the seven companies, this information is publicly available at the Registrar of Companies. The consortium, its constituent companies, and Service Auto Group Ghana Limited (SGAGL) denied any wrongdoing."
This response comes after a similar one by the Ministry of Health clarifying that the contract was originally signed by the now-defunct Ministry of Special Development Initiatives with Service Auto Group Ghana Limited.
Read the full statement below:
Credit: Emma Ankrah