In order to use a facility as a COVID-19 isolation center in Adaklu in the Volta Region, the Ministry of Health (MoH) entered into a 25-year finance lease agreement in 2020 for a total of Ghc15,265,000.00. However, the arrangement was never utilised.
The facility was never used for what it was designed for, according to the Auditor General’s report.
According to the report covering the period from March 2020 to June 2022, the Ministry did not use the facility for what it was planned, but instead undertook remodeling work at an additional cost of Ghc20,382,247.70.
“We observed that the Ministry of Health entered into a 25-year Finance Lease Agreement with QHC Project Limited at a total lease value of GH¢15,265,000.00 in April 2020.
The underlying assets were uncompleted buildings in Adaklu in the Volta Region which were managed by QHC Project Ltd.” the report stated.
Also, “The buildings were to be used as isolation centres during the peak of the COVID-19 pandemic. We noted that the Ministry could not use the facility for the intended purpose and is, therefore, remodelling the building at an additional cost of GHS20,382,247.70 out of which GHS13,726,079.86 had been paid.”
According to the report, remodeling efforts on the building had been put on hold since the Ministry was unable to use it for that purpose.
“Our assessment of the finance leasing procedure revealed that the lessor received the lease sum without consulting the minister of finance or having their financial situation evaluated by the Debt Management Unit.
“We observed that the remodeling being undertaken by ADB Ghana Ltd. (contractor) had not been completed during our visit to the facility in November 2022 and the works include remodelling and equipping the existing buildings to be used as holding, treatment, and isolation centers,” the report stated.