Obuasitoday.com
News

Obuasi West MP and Assembly Member Sue Municipal Assembly Over PPP Agreements

Obuasi West Member of Parliament (MP), Hon. Kwaku Kwarteng, together with Hon. Dauda Tahiru, Assembly Member for Gausu East Electoral Area, have initiated legal action against the Obuasi Municipal Assembly over what they describe as the unlawful signing of three Public-Private Partnership (PPP) agreements.

In a formal Notice of Civil Action dated January 20, 2025, and addressed to the Acting Chief Executive Officer of the Obuasi Municipal Assembly and the Acting Attorney General, the two Assembly Members argue that the agreements violate key provisions of the Public Private Partnership Act, 2020 (Act 1039) and the Standing Orders of the Obuasi Municipal Assembly.

Background of the Dispute

At the Second Ordinary Meeting of the First Session of the Eighth Obuasi Municipal Assembly on September 12, 2024, the Assembly was briefed on three PPP projects that had already been signed between the Municipal Assembly and private companies. The projects in question include:

  1. A U-shaped three-storey commercial facility consisting of 43 lockable stores and a 12-seater W/C, awarded to Fodavca Company Limited.
  2. A three-storey commercial facility with 85 lockable stores, awarded to Uncle Frank Electricals and Construction Works.
  3. A three-storey mixed-use facility with 25 lockable stores and 100 rooms, awarded to Salifu Ali Contract Works Limited.

According to the plaintiffs, these agreements were signed without complying with the mandatory pre-approval and feasibility study requirements outlined in Act 1039, making them unlawful and void.

Legal Violations Cited

The plaintiffs argue that the agreements contravene the following legal provisions:

  1. Section 36 of Act 1039 – Requires that a local government authority seeking to undertake a PPP project must submit a project concept note and a pre-feasibility study report to the Public Private Partnership Office at the Ministry of Finance for review and approval. This was not done for any of the three projects.
  2. Section 37 of Act 1039 – Mandates that a feasibility study must be conducted after the pre-feasibility stage and submitted to the PPP Office for approval, after which the Minister for Finance grants a “Seal of Quality.”The plaintiffs contend that this crucial step was completely ignored.
  3. Section 16 of Act 1039 – Requires that, after securing the necessary approvals from the PPP Office and the Minister of Finance, the General Assembly of the local government authority must approve the PPP project. However, Order 20 of the Standing Orders of the Obuasi Municipal Assembly dictates that such approval must first be referred to a sub-committee before being considered by the General Assembly.

The plaintiffs claim that the Assembly sidestepped this process entirely, opting instead for an oral briefing by a consultant, without submitting any project documents for review.

Concerns Over Implementation

Despite these alleged breaches, the plaintiffs claim that one of the contractors, Salifu Ali Contract Works Limited, has already moved to the project site to begin construction, raising concerns about the financial and legal implications for the municipality.

Hon. Kwarteng and Hon. Tahiru argue that the agreements heavily favor the private companies at the expense of the municipality, and that a proper vetting process would have identified and corrected any unfair terms. They insist that by bypassing these legal safeguards, the Assembly has failed in its duty to protect the financial interests of the municipality and the state.

Reliefs Sought

In light of these violations, the plaintiffs are seeking the following remedies through legal action:

  1. A declaration that the three PPP agreements are unlawful and null and void.
  2. A court injunction preventing any further implementation of the agreements.
  3. A full review of the agreements and compliance with the proper legal procedures.

Implications for Obuasi

This lawsuit raises broader concerns about transparency and accountability in local governance, particularly regarding public-private partnerships in the Obuasi Municipality. If the plaintiffs succeed in court, it could set a precedent for ensuring due process in future municipal projects.

For now, the fate of these three major development projects remains uncertain, pending the outcome of the legal proceedings.

Leave a Comment