“No Fraud Established” – Court On Auditor-General’s Report

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Management of Zoomlion Ghana limited, has indicated its preparedness to further appeal and hopefully overturn the court decision, upholding surcharges imposed on it by the Auditor General of the Republic of Ghana, Mr Daniel Domelevo.

According to a statement issued by the Communications Directorate of the waste management giant, in as much as the company, welcomes the court’s decision, it also reserves the right of exercising its constitutional powers of appealing the decision.

The company, further noted that it was gladdened by the fact that there was no iota of fraud established against it in the said matter by the Auditor General.

“Though Zoomlion is yet to receive a certified true copy of the court’s decision, the court was categorical that no fraud was established.

“Much as Zoomlion welcomes the decision, it should be noted that the company is clothed with the right to seek a review of the High Court’s decision and will proceed to take steps it deems fit based on the counsel of its Lawyers upon studying the ruling,” Zoomlion stated in a press release.

Background

A year ago, the Auditor-General, Daniel Domelevo, ordered the then head and three former Chief Executive Officers (CEOs) of the National Health Insurance Authority (NHIA) and the management of Zoomlion, to refund a total amount of GHc411,433,086, following revelations of alleged wrongful payments made to the waste management company during their respective tenures.

In separate letters to the four; Sylvester Mensah, Ras Boateng, Samuel Annor and Nathaniel Otoo, the Auditor-General, stated that after an audit into the accounts of the NHIA for the period from January 2007 to April 2018, the financial infractions were noted, prompting the surcharges and ultimatum.

We reproduce below the press release from the Communications outfit of Zoomlion:

“NO FRAUD ESTABLISHED” – COURT ON AUDITOR-GENERAL’S REPORT

The management of Zoomlion Ghana Limited, has noted with interest, the decision of the High Court in Accra-dismissing an appeal, initiated at the instance of the leading waste management firm challenging the validity of surcharges imposed on it by the Auditor General.

Though Zoomlion is yet to receive a certified true copy of the court’s decision, the court was categorical that no fraud was established.

The surcharges were applied following an audit of a contract executed by Zoomlion Ghana Limited for the Ministry of Health. Although Zoomlion has always maintained that the Auditor General’s position was ill-suited when measured against the actual circumstances of the contract, the High Court thought otherwise and decided against Zoomlion.

It is noteworthy that no reasons were immediately assigned by the Court for its ruling save to indicate that the facts will be captured in a detailed decision.

Much as Zoomlion welcomes the decision, it should be noted that the company is clothed with the right to seek a review of the High Court’s decision and will proceed to take steps it deems fit based on the counsel of its Lawyers upon studying the ruling.

Zoomlion wishes to reassure the public particularly its stakeholders that the Company’s commitment to transparency in its operations and regard for regulatory authorities and the law, as well as excellence in service delivery, remains firm.

It will be recalled that in January 2019, the Auditor-General served a surcharge and disallowance certificate on Zoomlion which the company disagreed with and appropriately appealed against it in the High Court in accordance with the law.

 

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