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Spare Parts For Ambulances Contract: Ghana Auto Group Never Received $34.9m From MoH

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The Ministry of Health (MoH) has refuted claims that $34.9 million has been paid to Ghana Auto Group Limited for the procurement of spare parts for 307 ambulances.

The Ministry confirmed that no such payment has been made.

Responding to concerns raised by the Member of Parliament for North Tongu, Hon. Samuel Okudzeto Ablakwa, the Ministry provided a detailed account of the service contract with Ghana Auto Group Limited.

According to the Ministry, on September 10, 2020, the Ministry of Special Development Initiatives signed a contract with Ghana Auto Group Limited for the after-sales service and maintenance of 307 Mercedes Benz Sprinter 315 CDI ambulances.

This agreement, it said, included a projected budget for the necessary spare parts and lubricants.

The Ministry of Special Development Initiatives utilized part of its annual budget allocation to support the National Ambulance Service and fund the maintenance agreement.

It averred that, with the dissolution of the Ministry of Special Development Initiatives, the Special Initiatives Development Secretariat took over the contract and on March 10, 2023, the Office of the Chief of Staff asked the Ministry of Health to find ways to support the National Ambulance Service, as Parliament did not approve the budget estimates of the Special Initiatives Development Secretariat for 2023.

The Ministry of Health then requested the Ministry of Finance to establish letters of credit for $34,904,505.00 for Ghana Auto Group Limited to procure spare parts for the ambulances.

According to the Press Release, the Ministry of Finance indicated it could only provide up to $10 million and suggested the Ministry of Health seek additional funding from the National Health Insurance Authority (NHIA).

It has been gathered that the Bank of Ghana established a Letter of Credit (LC) in favor of Service Ghana Auto Group for $10 million.

We confirmed that there has not been any payment on the LC, as there have been no calls or demands for it.

The LC was established for the importation of spare parts to maintain existing ambulances, as part of a contract that has become a subject of controversy.

The NHIA also in its response, stated it could not cover the procurement costs from its allocation to the Ministry of Health, as this was not included in the approved budget, hence Ghana Auto Group Limited has not received $34.9 million.

The Ministry reiterated its dedication to maintaining a sustainable regime for all ambulances, ensuring reliable and efficient emergency medical services.

It said, all related documentation is publicly accessible, and the Ministry supports any further efforts to clarify this matter in the public interest.

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