An audit into Covid-19 expenditure has revealed that the Ministry of Health entered into a 25–year Finance Lease Agreement at a total lease value of GH¢15,265,000.00 in 2020 for a building to be used as a holding and isolation centre in Adaklu in the Volta Region.
The facility was, however, never used for the intended purpose.
The Auditor General’s report which covers the period of March 2020 to June 2022 revealed that the works, include remodelling the existing buildings to be used as holding, treatment and isolation centres but failure to use the facility for the intended purpose has resulted in an additional cost of GH¢20,382,247.70.
“We observed that the Ministry of Health entered into a 25–year Finance Lease Agreement with QHC Project Limited at a total lease value of GH¢15,265,000.00 in April 2020. The underlying assets were uncompleted buildings in Adaklu in the Volta Region which were managed by QHC Project Ltd.
“The buildings were to be used as isolation centres during the peak of the COVID–19 pandemic. We noted that the Ministry could not use the facility for the intended purpose and is therefore remodelling the building at an additional cost of GH¢20,382,247.70 out of which GH¢13,726,079.86 had been paid.
“Our review of the finance lease process indicated that the lease amount was paid to the lessor without recourse to the Minister of Finance and financial assessment by the Debt Management Unit. During our visit to the facility in November 2022, we observed that the remodelling being undertaking by ADB
Ghana Ltd. (contractor) had not been completed and the works include remodelling and equipping the existing buildings to be used as holding, treatment and isolation centres.”
