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Presidency Confirms Non-Renewal of Zoomlion-YEA Contract

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The presidency announced Wednesday it will not renew a long-running contract between the Youth Employment Agency (YEA) and waste management firm Zoomlion Ghana Ltd., marking a significant policy shift in the country’s approach to public sanitation services.

The decision comes in response to an April petition by investigative journalist Manasseh Azure Awuni, who raised concerns about the contract’s transparency and cost-effectiveness. In a letter dated June 11 and signed by Secretary to the President Dr. Callistus Mahama, the presidency confirmed that the agreement has expired and will not be extended.

“All payments made to Zoomlion after the expiration of the contract will be audited,” the letter stated. “Any unauthorised disbursements will be recovered, and no further payments will be made without verification.”

The announcement ends a controversial partnership that for years drew scrutiny over value for money and oversight. It also signals the government’s intent to open sanitation service contracts to competition. Going forward, such contracts will be procured through competitive tendering at regional and district levels, a move the administration says is aimed at reducing costs and improving service quality.

“This could reduce costs through competitive pricing and stimulate innovation,” the statement said.

A Cabinet subcommittee has been tasked with designing the new framework for contract awards. The government also plans to increase wages for sanitation workers, often referred to as “sweepers,” citing the need to provide more sustainable income.

Additionally, ongoing fumigation contracts will be reviewed, and any found to be underperforming may be terminated following recommendations from the Attorney-General.

The reforms reflect growing public demand for transparency and efficiency in state-sanctioned service agreements. For Zoomlion, once a dominant player in Ghana’s sanitation sector, the decision could mark the end of a lucrative era.

Source:TheDotNews

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