Minority MPs Compel Gov’t to Reduce Bungalow Construction Cost from €1.7 Million to €540,000

The apparently outrageous €1.7m bungalow cost presented by the government to the House of Parliament was seriously questioned by the Minority MPs 

It has been reported that, government was forced to withdraw a proposed €1.7m bungalow cost which it presented to the House of Parliament after Minority MPs described the amount as being outrageous. The €1.7 million(GH¢7, 513,154.34) according to government, is to be used for the construction of a bungalow for the Vice Chancellor of the proposed University of Environment and Sustainable Development.

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The Minority raised questions about the amount following a Parliamentary approval of a €38 million (GHȻ168,047,360) loan agreement between Ghana and the Deutsche Bank for the development of the university to be situated at Somanya in the Eastern Region.

The Minority Leader, Osei Kyei Bonsu questioned where Ghana would be headed to as a nation if the Vice Chancellor’s bungalow alone is going to swallow a whopping 1.7 million Euros! Asking why the government is being so profligate, the MP described the budget as a dangerous one for the economic health of the country.

However, Joy News’ Parliamentary correspondent, Elton Brobbey, reports that the government was compelled to withdraw the amount and present a new one. According to him, the new amount which is €540,000 (GHȻ2,386, 531.38) was subsequently presented alongside a detailed commercial agreement for the construction of the university.

The adjustment presents a difference of GHȻ5,126,622.96 from the previous GHȻ7, 513,154.34; with close to €1.2 million removed from the initial €1.7 million.

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Elton Brobey also disclosed that the initial €38 million approved for the University construction has also been withdrawn, with Parliament approving €45 million (Ȼ197,051,395) instead.

Describing the cost reduction as a welcome development, MP for Dome Kwabenya, Adwoa Safo, said that Ghanaians are getting value for money and it is very important for the government to carry out a comparative analysis of the costing and pricing in awarding every contract. She advised the government not to wait until questions are raised before ensuring that there is value for money audits in contracts in subsequent agreements.