Kumasi Mail investigation has uncovered series of government-commissioned audit and assessment reports have naked what officials and experts describe as one of the most troubling public infrastructure scandals in Ghana’s recent history, involving the long-stalled redevelopment of the Ghana Police Hospital and millions of pounds in alleged overpayments to its contractor, International Hospitals Group (IHG).
The project, which began with a contract signed in September 2003 under Former President John Agyekum Kuffour’s administration between the Government of Ghana (GoG) and the UK-based IHG, was intended to modernize the Accra Police Hospital into a world-class health facility serving both the Ghana Police Service and the general public.
More than two decades later, the hospital remains incomplete, while audits indicate that the State may have paid far more than the value of work delivered by the UK foreign Construction firm.
Millions Paid, Little Work Done
A Value for Money (VfM) audit conducted by PricewaterhouseCoopers (PwC) in 2015 found that although only about £4.85 million worth of work had been legitimately completed by February 2015, the Government of Ghana had already paid approximately £50.3 million to IHG.
The audit further concluded that the correct escalated contract price should have been around £20 million, yet the contract value was revised upward to £107.7 million without adherence to mandatory public procurement procedures.
The Kumasi Mail investigations further noticed that PwC also identified potential liquidated damages of £730,465 arising from delays attributable to IHG, and raised concerns about possible misconduct by consultants, advisers and officials involved in approving payments and variations.
The audit report intercepted by Kumasi Mail warned that the approvals granted by the Ministries of Interior and Finance required legal review, noting that several decisions appeared contrary to the financial interests of the State.
PwC recommended criminal investigations, possible arbitration proceedings, and recovery of overpaid funds.
Cabinet Alarm and Stalled Works
Kumasi Mail further checks revealed that in February 2015, Cabinet had rejected a request from the Ministry of the Interior for an additional £40 million to complete the project, citing escalating costs and weak controls.
Cabinet instead ordered an independent audit and instructed government agencies to explore options for repackaging or re-awarding the contract.
Construction slowed significantly from 2014 due to funding gaps, with consultants directing IHG to scale down works and suspend procurement of key mechanical and electrical components. This effectively stalled the project for years.
International Legal and Diplomatic Fallout
As tensions escalated, the Attorney-General engaged international law firm White & Case LLP to prepare for possible arbitration.
The dispute attracted diplomatic attention in 2016, with the UK government intervening at the highest political level due to IHG’s British origins and the involvement of UK-backed financing.
By 2018, the Attorney-General confirmed that the dispute had been resolved amicably, allowing documents to be shared with the UK’s National Crime Agency.
In 2019, the Ministry of the Interior formally requested IHG to remobilize and resume work, despite unresolved concerns over value for money.
Fresh 2023 Assessment Reignites Controversy
Any lingering confidence in the contract was further undermined by a March 2023 assessment by Crown Agents Ghana Limited (CAGL), commissioned by the Ministry of Finance.
The assessment found that the State had been overpaid by about £40 million, while the cost to complete the project was estimated at £25 million.
Crown Agents concluded that the contract was “fundamentally and significantly imbalanced” and did not provide value for money.
The firm recommended outright termination of the contract, recovery of overpayments, and re-procurement of the remaining works under a new contract based on the FIDIC Silver Book 2017, which allocates risks more clearly and protects the employer.
The report also cited multiple breaches by the contractor, including unauthorized subcontracting, failure to complete works on time, unapproved design changes, unjustified suspension of works, and claims for costs with no contractual basis—some amounting to nearly £9 million in additional overpayments.
Growing Pressure on Interior Ministry
With two independent assessments—eight years apart—both pointing to massive financial losses, governance failures and poor contract management, pressure is mounting on the Ministry of the Interior to act decisively.
Analysts argue that allowing the contract to continue would expose the State to further losses and legal risk, especially given the absence of enforceable financial guarantees such as performance bonds or advance payment guarantees.
They contend that terminating the contract and pursuing recovery of funds is the only credible path to restoring accountability and salvaging the project.
As Ghana continues to grapple with fiscal constraints and public demands for transparency, the Police Hospital redevelopment has become a symbol of how weak oversight and poorly structured contracts can drain public resources—leaving critical infrastructure unfinished while taxpayers bear the cost.
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Source :www.kumasimail.com
