SGAGL refutes allegations over Ambulance Service contract, threatens to sue

Service Ghana Auto Group Limited (SGAGL) has mounted a vigorous defense against allegations of impropriety regarding its contract with the Government of Ghana for the after-sales service and maintenance of 307 ambulances.

In a detailed statement, SGAGL addressed the “utterly false claims and outright lies” about the contract’s procurement process and execution.

This comprehensive defense underscores SGAGL’s commitment to transparency and its determination to continue supporting Ghana’s healthcare infrastructure through reliable and efficient service and maintenance of the national ambulance fleet.

Competitive procurement process
SGAGL clarified that it was part of a consortium of seven firms that participated in a competitive procurement process initiated by the Ministry of Special Development Initiatives.

Other bids ranged from $250,000 to $300,000
The consortium’s winning bid of $133,000 per ambulance was significantly lower than competing bids of nine other companies, which ranged from $250,000 to $300,000.

Members of the consortium
The consortium included Luxury World Auto Group Limited, Elok Consult, RDC Company Limited, Beft Engineering Works Limited, Prestige Era Company Limited, Bluemix Company Limited, and Quality Supply and Builders Company Limited.

This coalition offered a value-for-money proposition, leading to their selection based on merit.

Compliance and verification
The consortium’s supplier, EMS Mobil Sistemler AS AG from Turkey, secured the necessary manufacturer’s authorizations from Mercedes Benz and EMSA Ambulances, ensuring compliance with all tender requirements, including a warranty guarantee for both the ambulances and the medical equipment installed in them.

Comprehensive on-site inspection
A comprehensive on-site inspection by officials from the National Ambulance Service (NAS), Ghana Health Service, Ministry of Health, and other relevant ministries was conducted in Turkey and Amsterdam, funded by the consortium, to verify the suppliers’ capabilities.

After-sales service and maintenance
SGAGL signed an after-sales service and Maintenance Agreement in December 2019, outlining extensive support for routine servicing, maintenance, repairs, and the provision of mechanical and medical spare parts.
The company formed a strategic partnership with Inter-City STC Coaches to utilize its workshop facilities nationwide and deployed three fully equipped emergency mobile workshop vans to ensure prompt and efficient service delivery.
Additionally, SGAGL invested in the renovation and repurposing of the Ministry of Agriculture’s workshop in Kumasi and constructed a purpose-built workshop at the NAS headquarters in Accra.
This infrastructure support included a dedicated warehouse in Tema for secure storage and management of imported parts.

Budget clarifications and audit disputes
Addressing misconceptions about the $34.9 million budget for spare parts, SGAGL explained that Letters of Credit were established for $10 million, covering both mechanical and medical parts.

45,000 essential spare parts imported
So far, over 45,000 essential spare parts have been supplied to NAS since the ambulances were delivered.
The company also noted significant disagreements with the Auditor-General’s 2022 Performance Audit, which it said did not allow for its responses.
Despite this, SGAGL refunded amounts labeled as double payments, which were initially intended as Additional Duty Hours Allowance (ADHA) for dedicated personnel.

Commitment to integrity and transparency
SGAGL reiterated its commitment to acting with integrity and refuted any wrongdoing.

Stephen Okoro’s role
The company clarified that Stephen Okoro’s role as a director in one of the consortium companies is publicly documented and unrelated to any alleged impropriety.
“It needs emphasizing that the Ministry of Finance established a $10 million LC, not direct payment as falsely alleged, and that bank loans have had to be procured to finance key obligations under the contract,” the company stated.
SGAGL assured stakeholders of its commitment to ensuring integrity and transparency in fulfilling the contract and emphasized its readiness to provide documentary evidence to any investigative authority.