The Minister for Government Communications, Felix Kwakye Ofosu, has announced that plans are underway to restore the Saglemi housing project to its initial public use objective.
He argued that the New Patriotic Party’s decision to give the project to private developers undermines its original aim of offering affordable public housing to serve Ghanaians.
In an interview on TV3 on Saturday, January 17, 2026, Mr Kwakye made it known that, the current administration is reassessing that decision to ensure the original vision of the project is protected.
“Yes, it was announced in the dying embers of the previous administration, but it is under review because we believe it is not the best or most ideal situation.”
“It was meant to be public housing, affordable for people within a certain income bracket. They left it to rot for eight years and then, at the last minute, attempted to transfer it into private hands. We are reviewing the arrangement to ensure that the initial objective is achieved,” he stated.
#TheKeyPoints: The potential sale of 'Saglemi housing project' initiated by the previous is under review as it was not an ideal situation.
The Saglemi Housing Project, situated in Prampram in the Greater Accra Region, began in 2012 during President John Dramani Mahama’s first term as an initiative to address Ghana’s housing shortage.
The project, however, came to a halt after 2017 when the Akufo-Addo administration took over, leaving the site inactive for almost eight years.
In late 2024, the previous government revealed that a private developer, the Quarm-LMI Consortium, had been chosen to finish the project. The state’s earlier investment was counted as equity, and no additional public funds were to be provided.
The consortium was expected to complete the remaining units by early 2026.
The project was initially meant to provide 5,000 housing units on 300 acres, but only 1,506 units were partially completed before work stopped in 2017, even though around $200 million had already been spent.
Former administration appointees claimed that many of the buildings lacked key infrastructure, such as water, electricity, and sewage systems.
Government officials say a current review will determine the best way to complete the project while protecting public interest.
Earlier last year, Minister of Works, Housing and Water Resources, Kenneth Gilbert Adjei, assured that contractors will soon return to the Saglemi Affordable Housing Project site to continue construction.
During a recent working visit to housing developments at Shai Hills and Ningo Prampram in the Greater Accra Region, Mr. Adjei emphasized that the government is actively engaging key stakeholders to revive the long-stalled project.
“We know of the Saglemi housing project, among other projects, has stalled halfway. When I resumed office, I started engaging with key stakeholders, and very soon, we will move to site, and then work will begin,” he stated.
His tour also included inspections of the National Homeownership Fund Affordable Housing Projects in Shai Hills and Tema Community 22, alongside the Ningo Prampram Coastal Sea Defence Project.
Mr. Adjei highlighted the government’s renewed focus on ensuring that projects are seen through to completion without unnecessary delays or financial losses.
“We will put in plans to ensure that we don’t start projects and end midway, but to ensure that all projects get to their finishing line,” he said.
He also urged contractors to adhere to set timelines to avoid further setbacks.
“Some of the projects are behind schedule, some too are on schedule, and I would advise our contractors that going forward, we don’t want any delays in our projects. If we give timelines, we should stick to the timelines. Those are things I’m going to meet and discuss with the contractors,” he stated.
The minister further reiterated the government’s commitment to safeguarding lives and properties in coastal areas. He assured that ongoing sea defence projects in Axim, Cape Coast, Dansoman, and Dixcove would be expedited, with alternative funding sources being explored to ensure their completion.
Former Minister of Works and Housing, Collins Dauda, along with Dr. Kwaku Agyemang-Mensah (former Minister of Water Resources, Works and Housing) and Alhaji Ziblim Yakubu (Chief Director in the Ministry of Water Resources, Works and Housing), were initially accused of contributing to the mishandling of funds in the $200 million Saglemi Housing project.
Businessman Andrew Clocanas (who passed away) and Nouvi Tetteh Angelo (CEO of Ridge Management Solutions Ghana Limited) were also part of the list of accused individuals. They faced multiple charges related to misusing public funds, which were filed in January 2023.
However, an Accra High Court ruled in favor of Collins Dauda, and three others by discharging them from all charges.
The decision, announced on Tuesday, February 24, 2025, came after state prosecutors informed the court that the Attorney General had decided to withdraw the charges against the defendants.
Dr. Ayine, during a press briefing on February 12, 2025, justified the decision to drop the case by noting that part of the funds were used for the construction of houses, which should have been considered in assessing the charges.
“In other words, the value of that built environment is, in my considered opinion, a key determinant of how much of the total sum was allegedly misapplied by the Honorable Collins Dauda. Discounting the value of the built environment renders those charges, in my considered opinion, defective,” he stated.
Furthermore, Dr. Ayine highlighted that payments made by other ministers, such as the $5 million approved by Atta Akyea in 2017, had not been included in the evaluation of the state’s financial losses.
He questioned why Akyea, who was involved in these payments, was not charged while Dauda had been.
“For instance, Atta Akyea, as Minister of Works and Housing, approved a payment of $5 million in 2017 that ought to have been considered in determining the value of state funds that Collins Dauda had misapplied. But that wasn’t done. And note, ladies and gentlemen of the media, that Atta Akyea was never charged, even though Collins Dauda was,” he pointed out.
In his closing remarks, Dr. Ayine emphasized the importance of clarity in legal charges, asserting that accusations must be precise to ensure fairness in the trial process. He argued that the charges filed in this case did not meet the necessary legal standards to proceed.
Minister of Works, Housing and Water Resources, Kenneth Gilbert Adjei, has assured that contractors will soon return to the Saglemi Affordable Housing Project site to continue construction.
During a recent working visit to housing developments at Shai Hills and Ningo Prampram in the Greater Accra Region, Mr. Adjei emphasized that the government is actively engaging key stakeholders to revive the long-stalled project.
“We know of the Saglemi housing project, among other projects, has stalled halfway. When I resumed office, I started engaging with key stakeholders, and very soon, we will move to site, and then work will begin,” he stated.
His tour also included inspections of the National Homeownership Fund Affordable Housing Projects in Shai Hills and Tema Community 22, alongside the Ningo Prampram Coastal Sea Defence Project.
Launched in 2012 under the administration of former President John Dramani Mahama, the Saglemi Affordable Housing Project was designed to help reduce Ghana’s housing deficit by providing 5,000 residential units for low- and middle-income earners on a 300-acre site. Despite an investment of around $200 million, only 1,500 units were partially completed before the project was halted in 2017 following a change in government.
The delay was linked to allegations of embezzlement made by former Housing Minister Samuel Atta Akyea against his predecessor, Collins Dauda. Legal proceedings initiated by former Attorney-Generals Gloria Akufo and Godfred Yeboah Dame have since been discontinued by the current Attorney-General, Dr. Dominic Ayine.
Preventing Future Project Stalls
Mr. Adjei highlighted the government’s renewed focus on ensuring that projects are seen through to completion without unnecessary delays or financial losses.
“We will put in plans to ensure that we don’t start projects and end midway, but to ensure that all projects get to their finishing line,” he said.
He also urged contractors to adhere to set timelines to avoid further setbacks.
“Some of the projects are behind schedule, some too are on schedule, and I would advise our contractors that going forward, we don’t want any delays in our projects. If we give timelines, we should stick to the timelines. Those are things I’m going to meet and discuss with the contractors,” he stated.
The minister further reiterated the government’s commitment to safeguarding lives and properties in coastal areas. He assured that ongoing sea defence projects in Axim, Cape Coast, Dansoman, and Dixcove would be expedited, with alternative funding sources being explored to ensure their completion.
The Ghana National Fire Service (GNFS) has confirmed that five 40-foot containers serving as an office complex at the Saglemi Housing Project site have been completely destroyed by fire. Fortunately, the edifices at the site remain unaffected.
Assistant Divisional Officer Grade One (ADO1), Alex King Nartey of the GNFS Public Affairs Department, disclosed that the fire, reported around 5 p.m. today, destroyed the contents of the containers. Despite the deployment of two fire tenders, it took firefighters approximately four hours to bring the blaze under control.
The GNFS has launched an investigation to determine the cause of the fire.
In a separate incident, a fire outbreak at Kwashieman destroyed over 50 wooden structures used for domestic purposes and a wooden container for commercial activities. The cause of this fire is also under investigation.
Speaking at the Service’s Nine Lessons and Carols Thanksgiving event in Accra, themed “Be an Agent of Peace,” Chief Fire Officer (CFO) Julius Kuunuor disclosed that the GNFS has recorded 5,596 fire outbreaks between January and November this year. This represents a 6.43% increase compared to the 5,258 cases recorded during the same period last year.
The rise in fire incidents has been attributed to factors such as harsh weather conditions, public non-compliance with fire safety measures, road traffic accidents, electrical faults, and gas leakages.
Quarm-LMI Consortium, appointed by the government to complete the stalledSaglemi Housing Project, has pledged to complete the over 1,500 housing units within 400 days for public sale.
Managing Director of the consortium, Kofi Adabor Ofori-Amanfo, stated that thorough structural tests would be conducted to confirm the stability of the existing buildings. He also mentioned plans to rework parts of the structures to ensure they meet high safety and quality standards.
Speaking to the media after a visit to the Ningo Traditional Council, Mr. Ofori-Amanfo highlighted that the reengineering efforts aim to restore confidence in the project. The Saglemi Housing Project, initially intended to reduce Ghana’s housing deficit, has faced significant setbacks and controversies over the years.
“Tentatively, we are looking at around 400 days to make sure that the whole place is completed for sale to people. Currently, we inherited the shell structures. And some of them will go through structural integrity tests to make sure that we are not going to sell back to society, something that might just break within time.
“You know, this development has been left for more than seven years. A lot of them have gone through bad weather conditions. Some areas had some flooding that is prone to the environment there. So we need to do a lot of re-engineering over there.”
Former President John Mahama has raised concerns over the government’s decision to transfer the Saglemi Housing Project to private individuals without properly consulting the original landowners.
He explained that the project, initiated under the National Democratic Congress (NDC) during his administration, was developed after securing land through negotiations with the people of Ningo-Prampram.
Mahama criticized the governing New Patriotic Party (NPP) for abandoning the project upon assuming office and emphasized that if the government now plans to hand it over to private entities, the original landowners must be actively involved in the decision-making process.
“It was the NDC that started the Saglemi Housing project. We consulted the people of the Ningo-Prampram before we started that project. After we left, this government has abandoned it. Recently, I heard they want to give it to private people.
“But the point I’m making to them is that if you are changing the status of that project from a government project to a private project, you need to discuss with the allodial owners of the land,” he said.
Mr Mahama further noted that, as of now, the government has yet to hold any consultations with the people of Ningo-Prampram.
“You cannot eliminate that land by handing that project to a private company without the permission and discussion and negotiation with the allodial owners, who are the Ningo people. And so when we come, we’re going to review whatever you’re doing there,” he stated.
He stressed that the housing project is a public asset belonging to the people of Ghana and cannot be handed over to private entities without adhering to proper protocols.
“This serves as a warning to them,” he said, noting that a government led by the NDC would ensure that any future agreements related to the project prioritize the interests and involvement of the local community.
The former President committed that an NDC administration would reassess the existing agreement governing the project to guarantee that the local community is actively engaged and has a say in its development.
The government has appointed Quarm-LMI as the lead developer to complete the long-delayedSaglemi Housing Project.
According to a statement from the Ministry of Works and Housing on Friday, October 18, 2024, the selection was made after an extensive negotiation process, which involved various government entities, including the Ministry of Finance, the Attorney General’s Office, and Deloitte, with technical evaluations supported by the Ghana Institute of Surveyors.
The redevelopment will be carried out under a Special Purpose Vehicle (SPV), with the government’s current investment being considered as equity.
This arrangement ensures that both the government and Quarm-LMI will recover their financial contributions upon the project’s completion.
“As part of the redevelopment, the government and the developer will both recover their investments when the project is completed,” the statement added.
The Saglemi Housing Project, initially planned to provide 5,000 affordable housing units, received roughly $200 million in government funding.
However, construction stalled with only 1,506 units partially completed, falling short due to a lack of essential infrastructure, including water, electricity, and sanitation facilities, rendering the units uninhabitable.
A valuation by the Ghana Institute of Surveyors revealed that an additional $100 million would be necessary to complete the unfinished units—funding that the government was unable to secure at the time.
The project’s completion is expected to make a substantial contribution to easing Ghana’s housing deficit, which currently stands at 1.8 million.
Originally launched by the previous NDC government, the $200 million project was halted after a value-for-money audit disclosed that only 1,506 housing units had been completed out of the planned 5,000.
However, after receiving new directives from the cabinet, Minister Oppong Nkrumah stated that discussions are currently taking place with two shortlisted companies to facilitate the government’s public-private partnership, enabling work to resume next month.
“Negotiations are currently ongoing, and we expect that in early November, work will resume after the new developer is signed up to go the site,” he said.
He made these comments at a ministerial press briefing on September 30.
The Minister stressed that the new arrangements do not mean the housing project is being sold. “We reiterate that we are not selling these projects. We are working in the PPP [Public Private Partnership] framework to complete these projects.
The fact that the government of Ghana does not have money in the Treasury to advance for us to finish does not mean these projects should remain stalled,” he said.
Mr. Oppong Nkrumah emphasised the urgency of completing the projects, noting that without action, the state’s significant investments would deteriorate.
To address this issue, he mentioned that the ministry has turned to a public-private Partnership, which is expected to facilitate the continuation of the projects.
“We can’t afford to wait for the government to allocate funds, and we certainly don’t want to see these projects fall into further disrepair. Collaborating with the private sector to secure funding is the most effective approach,” he explained.
He further added that the financing provided by private companies would be reimbursed once the projects are completed and operational.
President Nana Addo Dankwa Akufo-Addo has given the green light for a framework to negotiate with the successful bidder(s) involved in resolving the Saglemi Housing Project.
This approval came following a request from the Minister for Works and Housing, Kojo Oppong Nkrumah.
According to the new framework, the value of the work already completed at Saglemi will be recognized as the government’s equity in the project. The cost required to finish the remaining construction will represent the equity of the chosen partner in a Special Purpose Vehicle (SPV) that will be set up to complete the project.
Profits from the sale of the houses will be divided between the government and the private partner based on their respective shares in the SPV.
The Saglemi Housing Project, which was initially planned to deliver 5,000 affordable housing units, received around $200 million in government funding. However, only 1,506 units were partially finished, and the project was put on hold due to the absence of crucial infrastructure like water, electricity, and sanitation facilities.
Anestimation done by the Ghana Institute of Surveyors indicates that an additional $100 million would be required to complete the unfinished units—funds that the government could not allocate.
Due to this, the Cabinet authorized the pursuit of private-sector funding and expertise, leading to the issuance of a Request for Proposals (RFP) in April 2024.
Government appointed Deloitte Ghana as the Transaction Advisor to assess bids submitted by Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group on July 8, 2024 to ensure a transparent process,
Deloitte Ghana is expected to present the selected bidder(s) to the Ministry of Works and Housing by mid-September. Following this, negotiations will commence to finalize the terms for creating a Joint Venture.
The Special Purpose Vehicle (SPV) established through this partnership will be tasked with completing and managing the 1,506 housing units.
With the President’s approval of the negotiation framework, discussions will move forward once the evaluation process is finalized and the preferred bidder(s) are announced.
Minister for Works and Housing, Kojo Oppong-Nkrumah, is anticipating works on the Saglemi Housing Project to resume in September this year.
He made this known in a sideline interview with the media when he appeared before the Public Accounts Committee on Thursday, August 1, 2024.
He reiterated that five proposals received to complete the project, and Deloitte, one of the new developments, has been selected as an independent entity to evaluate the proposals to identity the best out of the rest.
Deloitte is expected to present the evaluation report within seven days.
Subsequently, the preferred bidder will be selected to finalize the Saglemi Housing project.
Over 1500 units in the Saglemi Housing project are yet to be completed.
Meanwhile, the National Tenants’ Union of Ghana is gearing up for legal action and a series of protests to oppose the involvement of the private sector in finalizing the Saglemi Housing Project.
In a press release signed by its secretary-general, Frederick Opoku, the Union argues that such involvement will jeopardize efforts to provide affordable housing for those unable to afford current market rates.
The Ministry of Works and Housing officially solicited private proposals for the completion and operationalization of the project on April 17, 2024.
The Ministry of Works and Housing has received five bids for the completion of over 1500 unfinished units in the Saglemi Housing project.
These bids are currently pending evaluation by an independent entity selected through assistance from the Public Procurement Authority, as announced by sector minister Kojo Oppong Nkrumah.
The minister stated that the evaluation entity will be chosen on Wednesday to assess the bids, ensuring a transparent process in securing a partner for the project.
Following the submission of bids, Mr. Oppong Nkrumah informed the media that an accounting firm will present the evaluation report within seven days.
Subsequently, the preferred bidder will be selected to finalize the Saglemi Housing project.
“We have received five bids. From today, we have already requested the Public Procurement Authority to help us select an independent evaluation entity. And I do understand that about four organisations have been pre-qualified by the Public Procurement Authority, out of which we will select one.
“On Wednesday, as I mentioned, we will select the independent evaluation entity and we will handle these bids to the independent evaluation entity. And according to our work programme, within seven days we are expecting to receive the revert from the independent evaluation entity, which will tell us which of these five bidders is a preferred bidder.”
Seven potential developers have commenced a comprehensive inspection of the Saglemi Housing Project, marking a significant step in the Ministry of Works and Housing’s efforts to solicit private sector involvement in completing the long-stalled project.
Following the Ministry’s open call for proposals last month, which aimed to attract private sector interest in the redevelopment efforts, several construction firms expressed keen interest in participating.
The visit of these seven developers, four foreign and three local, is a crucial moment for the project, signaling the beginning of on-site inspections necessary for formulating competitive bids.
With the deadline for proposal submissions set for July 8, the developers wasted no time familiarizing themselves with the intricacies of the Saglemi site.
Guided by representatives from the Ministry and previous project consultants, the developers conducted a thorough exploration of the site, gaining valuable insights into the project’s scope, challenges, and potential opportunities.
The Ministry has contracted an independent evaluation entity to ensure transparency and impartiality in the selection process for the Seglemi Housing Project, according to reports. This entity will evaluate the proposals and submit a comprehensive report to aid in selecting the most suitable developer.
The Ministry’s commitment to a fair and rigorous evaluation process prioritizing merit and quality is evident in these measures.
In addition, the Ministry has published a transparency policy, outlining its commitment to disclosing all relevant documents and information in accordance with the proactive disclosure clauses under the Right to Information (RTI) Act.
This policy includes the publication of bids, evaluation reports, and the final conclusion of the selection process, ensuring stakeholders have access to critical information at every step.
The Akufo-Addo government has once again given yet another ‘sweetheart’ contract to Nigerian billionaire Benedict Peters, who is alleged to have amassed millions through shady COVID tests at the airport, as claimed by X (formerly Twitter) user @GhanaCrimes.
In a tweet by @GhanaCrimes on April 18, 2024, the X user asserted that President Akufo-Addo has “handed our Saglemi Housing Project” to the businessman.
“The Nigerian billionaire who made millions throughthe shady COVID tests at the airport has been handed our Saglemi Housing Project,” parts of the tweet read.
The Saglemi Housing Project, which was started in 2012 to address Ghana’s housing deficit, aimed to provide 5,000 affordable units near Prampram.
Despite starting construction, delays, funding issues, and corruption allegations led to its stall.
Discussions now centre on involving the private sector to revive and complete the project.
@GhanaCrimes, continued that Mr Peters may have made prior investments in the political campaign of Ghana’s President Nana Akufo-Addo, which is believed to now yield significant returns, comparing the situation to the success of Tesla for Elon Musk.
“Whatever investment he made in @NAkufoAddo before he won the 2016 elections has paid off more than Tesla did for Elon Musk” he added.
The Nigerian billionaire who made millions through the shady COVID tests at the airport has been handed our Saglemi Housing Project.
Benedict Peters is a Nigerian billionaire businessman with significant investments in the oil and gas and mining industries. He is the founder and CEO of Aiteo Group, which is one of Africa’s largest indigenous oil producers.
Peters has been recognized for his role in the energy sector and has recently been involved in initiatives aimed at supporting Africa’s role in the global green economy.
Minister for Works and Housing, Kojo Oppong-Nkrumah, has reaffirmed the government’s dedication to finishing the Saglemi Housing Project.
Initiated in 2012, the project has faced substantial delays primarily due to government concerns over the contract amount.
Speaking with Bernard Avle on the Point of View on Citi TV, Oppong Nkrumah emphasized the government’s readiness to explore partnerships with potential investors to ensure the project’s successful completion and utilization.
“The buildings and technical expressions are at various stages of completion; some are at the foundation level…and the money is finished. Now as it sits, the state is of the view that it should not be left to rot. That is why the President [Nana Addo Dankwa Akufo-Addo] has asked that we go through a process to identify a private investor and or private investors who have technical and financial competencies to help us finish it and to operationalise it.”
When questioned about the government’s current focus on reviving the Saglemi Housing Project after it was abandoned in 2017, Oppong Nkrumah explained, “Minister Samuel Atta Akyea commissioned the evaluation, which then determined that we need about a $100 million to complete it.
“It was based on his report that prosecution was occasioned somewhere around I think 2021, if my timelines are correct. Minister Asenso Boakye is the one who came to cabinet requesting for funding to continue the project.
“And cabinet did the considerations, went through all the options and said after spending $200m on this, the state couldn’t afford to spend anymore, especially at that time of the beginning of our economic challenges. And so, the decision was made to look for private interest.”
He noted that various stages of construction have been reached, with some buildings only at the foundation level and funding depleted.
In response, President Akufo-Addo has instructed a process to identify private investors with the technical and financial capabilities to complete and operationalize the project.
Regarding the government’s renewed focus on the Saglemi Housing Project, Oppong Nkrumah explained that Minister Samuel Atta Akyea’s evaluation determined a need for approximately $100 million to finish it.
This evaluation led to legal actions in 2021, and Minister Asenso Boakye subsequently sought funding from the cabinet to resume the project.
However, considering the state’s economic challenges, cabinet decided against further state funding, opting instead to seek private investment.
While acknowledging that progress should have been made earlier, Oppong- Nkrumah assured transparency in their operations going forward.
He expressed optimism that despite delays, the project’s revival through the current Request for Proposal (RFP) process, coupled with enhanced transparency, is a positive step forward.
Minister of Works and Housing, Kojo Oppong-Nkrumah, has announced Cabinet’s approval of a plan to finalize the Saglemi Housing Project initiated by the previous administration.
Commencing in 2016, the Saglemi Housing Project had been abandoned due to legal disputes, leading to vandalism and theft of materials such as burglar-proofing and plumbing fixtures.
During a recent visit to Saglemi, Mr. Oppong Nkrumah disclosed that a technical committee had been formed to expedite the project’s completion following Cabinet’s green light.
This committee was tasked with issuing an international expression of interest within five weeks to attract private investment for the project’s completion and utilization.
With an estimated cost exceeding $100 million, Mr. Oppong Nkrumah acknowledged the fiscal constraints and emphasized the need for private sector collaboration to fund the project.
He expressed confidence that within the specified timeframe, the technical committee would finalize the expression of interest, facilitating the selection of private partners to operate or dispose of the housing units.
Addressing security concerns at the site, Mr. Oppong Nkrumah acknowledged existing security measures but highlighted the need for enhancements to prevent further equipment deterioration due to theft. Security reinforcements were implemented to safeguard the site.
Additionally, the minister toured Kpone and Michel Camp, where TDC Development Company Limited had constructed over 2,000 affordable housing units.
He praised TDC’s contribution to tackling the housing deficit and pledged support for master developers like TDC to undertake larger projects. This strategy aimed to accelerate efforts in bridging the housing gap.
Mr. Oppong Nkrumah emphasized the ministry’s commitment to collaborating with TDC to reduce construction costs and invited them to participate in the National Affordable Housing Project at Pokuase. Regarding cost and affordability, he assured the implementation of market mechanisms to ensure that affordable housing reached the intended beneficiaries.
The opposition in Parliament has vehemently opposed the government’s proposal to collaborate with a private developer to address the issues surrounding the Saglemi Housing Project.
This stance follows the revelation by the Minister for Works and Housing, Kojo Oppong-Nkrumah, that an estimated $100 million is needed to make the area suitable for occupancy.
During a visit to the project site on Tuesday, Oppong-Nkrumah outlined the government’s plan to engage a private partner within five weeks.
“I gave instructions to the technical working group that within the next five weeks, it should go ahead with an international expression of interest that is designed to attract private developers who can come in and complete this project for us so that we can put it to use.”
However, the Ranking Member on the Works and Housing Committee, Vincent Oppong Asamoah, expressed reservations, alleging that the government aims to transfer the Saglemi Housing Project to its political allies.
Asamoah further criticized the current administration, stating, “the only thing is that they just want to reduce the price, and then they will sell it to their cronies. They are saying, Oh, we are bringing in partners here, and at the end of it, it is their people that are going to come in.”
He further criticized the current administration, claiming, “If you go out there, all state lands and every property are going for sale under the NPP administration. Every property, landed property, is going for sale. Let’s see the end of the NPP administration, and we will see the rot,” citinewsroom.com quoted him.
Initiated in 2012 during the National Democratic Congress (NDC) government’s tenure, the Saglemi Housing Project aimed to build 5,000 housing units.
However, the project has been embroiled in controversy, with allegations of financial mismanagement leading to its suspension.
“I gave instructions to the technical working group that within the next five weeks, it should go ahead with an international expression of interest that is designed to attract private developers who can come in and complete this project for us so that we can put it to use.”
“The only thing is that they just want to reduce the price, and then they will sell it to their cronies. They are saying, Oh, we are bringing in partners here, and at the end of it, it is their people that are going to come in.”
Deputy minister-designate for Works and Housing, Dr. Prince Hamidu Armah, has revealed the government’s intentions of partnering with the private sector in the completion of the abandoned Saglemi Housing project.
Dr. Armah highlighted the importance of finishing the project, considering the significant investment already made by the state.
He said the government has established a technical committee to expedite the completion of the housing project during his appearance before Parliament’s Appointments Committee for vetting.
“The state has already invested so much money in Saglemi, and I think that it is important that we bring the original intent of the project to fruition.
I understand that the ministry has already constituted a technical working committee to look at private sector participation in offloading the project and to ensure that the project is completed for it to be used,” Dr. Armah said.
The Saglemi Housing project was initiated in 2012 under the erstwhile John Dramani Mahama government for the delivery of 5,000 housing units at a total cost of US$200 million under an Engineering-Procurement-Contracting (EPC) Agreement with Messrs Construtora OAS Ghana Limited.
According to the government, by the end of the stipulated project execution period in 2016, only 1,506 out of the planned 5,000 housing units had been initiated and approximately US$196 million, representing 98% of total project funds, had been expended.
He aims to prioritise rural housing, drainage systems, and the Saglemi project, in line with President Nana Addo Dankwa Akufo-Addo’s objectives.
In a significant ministerial reshuffle on Wednesday, February 14, President Akufo-Addo relieved Finance Minister Ken Ofori Atta of his duties.
The reshuffle affected a total of 13 ministers of state, including 10 cabinet ministers and two regional ministers.
Speaking on expectations when he assumes office, the outgoing Information Minister told Umaru Sanda Amadu in an interview on Eyewitness News on Citi FM on Wednesday that “the president’s priorities for this new era include, in particular, giving more attention to rural housing associated with the Agenda 111 project.”
“He also wants some attention on the drainage system that has the potential to occasion flooding in some of the major parts of the country.
Deputy Attorney-General Alfred Tuah Yeboah has reassured the public that the recent death of contractor Andrew Clocanas, a key figure in the Saglemi Affordable Housing Project trial, will not impact the ongoing prosecution’s case.
Clocanas, who passed away in October 2023, was facing trial alongside former Minister of Water Resources, Works and Housing, Collins Dauda, and three others in connection with the Saglemi Affordable Housing Project.
Deputy A-G Yeboah emphasized that the core of the case remains unaffected by the contractor’s death, and the trial will proceed as planned, as reported by graphic.com.gh.
During the recent court proceedings on Monday, November 20, 2023, Collins Dauda was noticeably absent.
His lawyer, Thaddeus Sory, explained to the court that Dauda had received an emergency invitation to attend a pan-African conference in South Africa as part of parliamentary duties, emphasising that his absence was not intentional.
The Director of Public Prosecutions, Yvonne Atakora Obuobisa, raised concerns about Dauda’s absence, questioning how he managed to travel outside Ghana when his passport was supposed to be in court custody.
Thaddeus Sory responded by stating that an application had been filed for Dauda to have access to his passport, leading to the withdrawal of the application.
“The notice came to him impromptu and he instructed us to make the application but apparently travel arrangements had been made and were required to leave before the hearing of the application,” he added.
The court further inquired about Dauda’s ability to travel without the required passport. Sory explained that the invitation was sudden and travel arrangements had been made before the hearing of the passport application.
The court proceedings also featured the first prosecution witness, Rev Stephen Yaw Osei, the Acting Chief Director of the Ministry of Works and Housing. He is set to read his witness statement to the court and undergo cross-examination on Tuesday, November 21.
Collins Dauda, Dr. Kwaku Agyeman-Mensah, Alhaji Ziblim Yakubu, and Nouvi Tetteh Angelo are currently on bail and have pleaded not guilty to 72 counts related to willfully causing financial loss to the state, misapplying public property, issuing false certificates, and dishonestly causing loss to public property.
The contractor behind the controversial Saglemi Housing Project, Andrew Clocanas, has been laid to rest.
He passed away at his Airport Residential Apartment, with reports indicating that his body was discovered in the bathroom under a shower on Saturday, October 20, 2023.
A Requiem Mass, followed by cremation, took place at the Lashibi Funeral Home on November 7, 2023.
According to a funeral brochure detailing the ceremony, Clocanas’ “mortal remains will be sent to the United Kingdom for a funeral service and burial alongside his late father Nikolaos.”
Meanwhile, the Ghana Police Service conducted inquiries into his death, questioning individuals at his residence as part of their ongoing investigation.
Trial prior to death
Andrews Clocanas, currently under trial in connection with the Saglemi Affordable Housing Project, is joined by co-defendants including Dr. Kwaku Agyeman-Mensah, a former Minister of Water Resources, Works, and Housing; Alhaji Ziblim Yakubu, a former Chief Director of the ministry; Collins Dauda, former Minister of Works and Housing, and Nouvi Tettey Angelo, Chief Executive Officer and owner of Ridge Management Solutions Ghana Limited.
The group collectively faces a total of 70 charges, accused of willfully causing financial loss to the state in relation to the approved $200 million for the Saglemi project.
All defendants have pleaded not guilty and have been granted bail.
A convener of the Arise Ghana movement has aligned with the calls made by several civil society groups and Ghanaians urging the government to relocate the victims of the Akosombo Dam spillage to the unfinished Saglemi Housing Project.
According to Mr. Bernard Mornah, these nearly completed houses would offer a more suitable alternative to the current living conditions of the displaced victims. He stressed that the government bears full responsibility for the plight of the people in the Volta Region and should therefore take significant measures to alleviate their suffering.
Mr. Mornah expressed these views during an appearance on the JoyNews AM Show.
“It is government’s decision to spill and government went around saying they did stakeholder engagement. You are asking people to move and evacuate. They should move to where? Have you made any alternative arrangements? Evidently, the government failed. Now you are telling me that I should relocate, so I should relocate to where?
“Even the chiefs have said we were swept away by the water, give us Saglemi houses so that we can live there. Saglemi housing is over 90 % complete in some of the areas. Those places will even serve as five-star hotels for the people given their current state of living and if you are failing to do that and you are failing to declare a state of emergency one will think that government is deliberately punishing the people for no crime of theirs particularly when the President said they have not been voting for him. So I will conclude that for not voting for the NPP, this is your punishment.”
Saglemi Housing project
Mr. Mornah’s statement is in line with the numerous pleas from individuals and various organizations for the government to contemplate the permanent relocation of the victims.
Many have argued that, given the housing project’s capacity and proximity, it represents the most viable solution. However, the government has not yet responded to this request.
Addressing this matter, the former People’s National Convention (PNC) National Chairman suggested that the government’s handling of the situation appears to be influenced by partisan considerations.
“We are being partisan in this particular instance because politics is about the general well-being of our society but in this instance partisanship has taken place, where the President can utter that you have not been voting for me, but I know one day you will vote for me.
“In crisis of this nature the President is thinking about future votes and not thinking about the conditions of our people, then it has moved from being political to the realm of being extremely partisan to inflicting more harm and pain on the suffering people of the Volta Region.”
Bernard Mornah also emphasized the necessity for the government to declare a state of emergency.
“In such circumstances, no one should come and tell you to declare a state of emergency. In declaring a state of emergency, it also brings international attention on you and given the fact that NaDMO in particular is under-resourced then we can use that to launch an international appeal to support our brothers and sisters to overcome their current situation.
“Failing to do that means, that we deliberately did this. We deliberately did the spilling of the water and knew that the volumes will consume our people in the manner that it has and that is why government is not ready to declare a state of emergency,” he added.
On September 15, the Volta River Authority (VRA) initiated the release of excess water due to rising levels at the Akosombo and Kpong hydro dams.
Several weeks after the spillage began, numerous residents residing along the Lower Volta Basin have witnessed the loss of their homes and farmlands to the floods brought about by the spillage.
At present, nine districts are grappling with the impact of the swift-moving spillage, and the people living in these areas are confronting a significant humanitarian crisis.
Communities like Battor, Tefle, Mepe, Sogakope, Adidome, and Anlo have been submerged, with their existence nearly engulfed by the relentless floodwaters.
It’s important to note that this year’s spillage exercise is not the first time that the VRA has released water from the Akosombo Dam. Similar exercises, per reports, were carried out in 1966, 1967, 1968, 1969, 1970, 1971, 1972, 1974, and 1991, with the most recent one taking place in 2010. These releases were made to prevent water from overflowing the dam.
The embattled Executive Chairman of Constructora OAS Ghana Ltd., the company responsible for overseeing the controversial Saglemi Affordable Housing project, Andrew Clocanas, has reportedly passed away, as reported by ABC News.
According to a source, Andrew Clocanas was discovered lifeless at his residence in Airport Residential Apartment, possibly due to a heart attack, as he was found in his bathroom near a shower.
The source also indicated that his body has been transported to the Lashibi funeral home, and law enforcement officers have visited the residence to conduct interviews.
Further developments on this matter are anticipated.
It is worth noting that, at the time of his passing, Mr. Clocanas was still on trial in connection with the Saglemi Affordable Housing Project.
Others who were standing trial alongside him included Dr. Kwaku Agyeman-Mensah, a former Minister of Water Resources, Works, and Housing; Alhaji Ziblim Yakubu, a former Chief Director of the ministry; Collins Dauda, former Minister of Works and Housing, and Nouvi Tettey Angelo, Chief Executive Officer and owner of Ridge Management Solutions Ghana Limited.
The group faced a total of 70 charges, as they were alleged to have willfully caused financial loss to the state in relation to the approved $200 million for the Saglemi project. All the accused parties had pleaded not guilty and were granted bail.
Minister for Works and Housing, Francis Asenso-Boakye, has responded to recent claims by former President John Dramani Mahama concerning the Saglemi housing project.
During a radio interview on Okay FM, the minister refuted all allegations suggesting that the government had left the project unattended.
Instead, Asenso-Boakye clarified that the government is steadfast in its dedication to finishing the Saglemi project.
He emphasized that both he and the president had reiterated this commitment during the launch of a new housing project in Pokuase.
According to him, the government is taking necessary steps to ensure the revival and completion of the project.
To address the challenges faced by the Saglemi project, the minister revealed that the government is considering involving the private sector in its implementation.
He disclosed that this decision was made after careful consideration and extensive consultations, with Cabinet convening three times to review the project’s complexities and its financial challenges.
He further stated that the conclusion reached was that private sector participation would offer the most viable approach to ensure the project’s successful completion.
Asenso-Boakye further elaborated on the financial analysis conducted by the government.
“Despite an initial investment of nearly US$200 million, the Saglemi project still requires substantial additional funding. Approximately US$46 million is needed for off-site infrastructure development, covering essential amenities such as water, electricity, drainage works, among others. Moreover, an additional US$68 million is required to complete on-site works, which include the repair and completion of the existing units, sewerage system, civic amenities, among others. This brings the total additional costs to a staggering US$114 million, on top of the funds already spent,” he said.
In light of the ongoing court case surrounding the project, the minister disclosed that he had taken proactive steps to continue the Saglemi project.
He added that he had sought approval from the Attorney General’s office, which was granted, allowing the government to proceed with the necessary actions to ensure the project’s eventual completion.
This demonstrated the administration’s unwavering dedication to delivering on its promise of reviving the Saglemi Housing Project.
Regarding the decision to initiate a new housing project in Pokuase, he clarified that it is part of a fresh strategy involving collaboration with the private sector for housing development.
Drawing inspiration from successful models in other African countries, he said the government aims to work alongside private sector entities in constructing houses for citizens.
This approach not only ensures cost-effectiveness but also capitalizes on the expertise and experience of private sector partners.
“Since becoming Minister, we have studied the approach adopted by many other African countries, including South Africa, Morocco, Côte d’Ivoire, Kenya, among others, where the government collaborates with the private sector in developing houses for the citizens.
“This not only saves the government a significant amount of financial stress but also allows us to benefit from the expertise and experience of the private sector,” he added.
The Ningo Prampram Constituency’s Member of Parliament,Sam Nartey George, has alleged that the Tsopoli Police Command in the Greater Accra Region has failed to take legal action against certain police officers who were apprehended for their alleged involvement in the theft of construction materials worth US$7 million from the abandoned Saglemi Housing Project.
Speaking on JoyNews’ AM Show on Tuesday, August 8th, George claimed that constituents from his area caught these police officers red-handed as they were taking construction materials from the Saglemi Housing Project site.
Although the suspects were surrendered to the police, no legal measures were initiated. The implicated officers argued they were following superiors’ orders.
Sam George had disregarded earlier theft reports from constituents, doubting their credibility.
Nonetheless, a late-night call from associates informed him, prompting him to rush to the scene of the ongoing theft.
He recounted, “At 1 am, my guys called me and said, ‘Honourable, we’ve been telling you, you said we are lying, now we’ve caught them.’ So, I drove to the site at 1 am and caught police officers with a KIA Bongo truck that had loaded tiles, sanitary wares, toilet bowls and all from the site.”
The suspects were taken into custody and transported to the Tsopoli Police Station, then subsequently to the Tema Regional Command.
Despite this, no further action has been observed, and Sam George attributed the inaction to the suspects’ claims of following orders from their superiors.
The MP went on to emphasize that this misconduct transpired under the current government’s watch. He highlighted that security forces, including police officers, were stationed at the Saglemi Housing Project site, ostensibly to safeguard it. However, a considerable amount of valuable building materials, including tiles, cables, and pipes, were reportedly stolen.
The Saglemi Housing Project, initiated in 2016, experienced a hiatus after the government asserted that the project did not align with the best interests of Ghanaians.
Former government officials are currently facing charges related to alleged financial loss to the state in the execution of the project. In contrast, the present administration has launched a new housing project at Pokuase.
Former President John Dramani Mahama criticized President Akufo-Addo for abandoning the Saglemi Housing project, which was initiated during his tenure. Mahama labeled the decision to abandon the project while allocating significant funds to the controversial National Cathedral as “unacceptable.”
He accused the Akufo-Addo government of prioritizing personal interests over the welfare of ordinary citizens.
Sam George echoed this sentiment, asserting that it was inappropriate for the government to spend substantial resources on the National Cathedral project while neglecting to allocate funds to complete the Saglemi Housing Project, which could benefit numerous Ghanaian families.
He concluded by highlighting the government’s apparent misplaced priorities, questioning their inability to raise funds to finalize the Saglemi housing project while concurrently allocating resources to what he referred to as “the largest civil excavation in Africa.”
The allegations of theft and the failure to prosecute alleged perpetrators have added to the discourse surrounding the Saglemi Housing Project and raised concerns about accountability within the security forces.
The United Nations appeal judges have issued a directive that Rwandan genocide suspect Félicien Kabuga be promptly evaluated for potential release, and concurrently, the war crimes trial against him be indefinitely halted.
In a previous ruling in June, judges from a UN war crimes court had determined that Mr. Kabuga’s dementia rendered him unfit to stand trial. Nonetheless, they recommended that alternative proceedings be explored.
Presently, these alternative suggestions have been dismissed by the appeal judges.
The judges assert that the UN war crimes tribunal erred in June by deciding that despite his health condition, Mr. Kabuga should undergo an alternative simplified trial process. Consequently, a lower trial chamber has been tasked with overseeing efforts towards his release.
Félicien Kabuga, a businessman and owner of a radio station, who is now in his late 80s, was among the final suspects sought by the tribunal responsible for prosecuting crimes committed during the Rwandan genocide of 1994.
He stands accused of disseminating hatred through his radio station and inciting the perpetrators who were responsible for the deaths of over 800,000 individuals in a mere 100 days.
Having been apprehended in Paris in 2020, following a two-decade-long evasion, Mr. Kabuga pleaded not guilty.
The court acknowledges that this recent ruling might bring disappointment to the victims and survivors of the genocide. However, it underscores that justice must be administered with unwavering adherence to the rights of the accused.
The representative of the Ningo Prampram constituency in Parliament has made a resolute commitment to address any private developer attempting to approach the Saglemi housing project.
In his perspective, he sees the government’s choice to hand over the project to private developers as a stratagem to perpetrate theft against the nation.
During an appearance on JoyNews on August 8, 2023, Sam George expressed the emotional impact of witnessing the current state of the project, given that he had been present alongside former President John Mahama to inaugurate Saglemi.
“Saglemi is a pain in my heart, every time I drive by the place and I see the structure because, in 2016, I was with President Mahama when he took us there to commission Saglemi. When we got there, we saw it, there was life. And now to see the footage that shows the state of Saglemi is painful, it is heartbreaking.
“I am the member of Parliament for Ningo-Prampram, any private developer that comes there should be prepared to fight with me. We will fight them. I will carry out the warning that has been sounded by the flagbearer. Any private developer who thinks he is taking this as a gift from the government and wants to sell this to themselves,” he said.
Commenced in 2012 with the aim of providing 5,000 housing units at an overall expenditure of US$200 million, the Saglemi Housing project’s progress has been modest, with only 1,506 of the intended 5,000 units underway.
Concurrently, the government has unveiled a new housing endeavor, involving private developers, that seeks to erect 14,000 housing units.
This scenario has sparked apprehensions regarding the perceived neglect of the Saglemi Housing project.
Member of Parliament for Ningo-Prampram, Sam Nartey George, has alleged that police officers were caught by his constituents stealing building materials worth $7m dollars from the site of the Saglemi housing project.
He explained that the site was abandoned while some police and national security officers were deployed to protect the project.
But it came out that they were rather stealing items like tiles, cables and pipes that were meant for completing the project.
He narrated how his constituents were constantly complaining about the theft case to him but he refused to believe them until one day at 1:00am, when they finally managed to get hold of the officers in the act of stealing.
Narrating the incident, the outspoken MP said he received a call, drove to the site, and matched the officers to the police station.
“Over $7m of building materials has been stolen by this government. They abondoned the site, put national security and police officers on the site that they are protecting the site.”
“At 1:00am, so called police officers with a KIA bongo truck had $7m loaded tiles, sanitary wears, toilet bowls and all from the site. We took them to the Tsopoli police station. From there we matched them to the regional police command.”
But according to Sam George, “the case died” because the officers confessed to police authorities that their commander sent them to come for the items.
This revelation was made during an engagement with the media on Tuesday, August 8, 2023.
The MP, thus, has accused the Tsopoli police command of failing to perform their duties since they did not ensure the prosecution of the perpetrators.
Saglemi Housing Project is a public housing project located in Prampram in the Ningo Prampram District in the Greater Accra Region.
It was initiated in 2012 by the National Democratic Congress (NDC) under the John Mahama-administration to ease the accommodation deficit in Ghana.
In April 2019, the former Minister for Works and Housing, Samuel Atta Akyea, hinted at the government’s decision to terminate the housing project.
But President Akufo-Addo, on Tuesday, August 1, held a sod-cutting ceremony to kickstart the construction of 8,000 units of affordable houses with support from the private sector.
Former President John Dramani Mahama has strongly criticized President Akufo-Addo over his decision to abandon the Saglemi Housing Project while allocating over GHc500 million to the National Cathedral project.
In a post on his Facebook account, the former President alleged that the government’s decision to abandon the Saglemi Housing project was solely motivated by the fact that it was initiated during his own administration.
President Akufo-Addo conducted a sod-cutting ceremony on August 1st to launch the construction of 8,000 units of affordable houses with support from the private sector.
During the ceremony, President Akufo-Addo defended the decision to halt the Saglemi Housing Project, citing concerns about increased national debt if it were to be completed.
In response, former President Mahama criticized the government’s approach, asserting that the inability to secure funding for the Saglemi housing project while channeling significant funds into the National Cathedral project is a “stinging insult to Ghanaians.”
He argued that the government’s priorities appear skewed, as it appears willing to invest in the grand National Cathedral initiative but neglects a housing project that aims to provide economical housing solutions for the people of Ghana.
“It is unacceptable for Akufo-Addo to spend over half a billion cedis on a national cathedral project that has ultimately failed due to corruption and is now abandoned, yet refuses to commit funds to complete a housing project that will benefit thousands of Ghanaian families.
“Knowing the NPP government, they did not want to complete the Saglemi housing project simply because it was initiated by John Mahama and an NDC administration.
“Leaders must always prioritise the well-being of their citizens and ensure that they benefit from government resources and projects, regardless of who initiated them.
“The misplaced priorities of a government that claim it is unable to raise money to complete the Saglemi housing project and yet is willing to spend half a billion cedis on the largest civil excavation in Africa is a humiliating slap in the face of Ghanaians who entrusted Akufo Addo with their mandate.
“Just think about the countless number of Ghanaian families who could have had decent living conditions over the past 7 years and the individuals who could have had a place to truly call home in Saglemi.
Discussions hovering around government’s National Affordable Housing project at Pokuase on Twitter indicates that the goal of providing homes at a feasible rate may not be realised.
The project cost tens of thousands of dollars which can also be sold in cedis at the prevailing rate.
A studio goes for $13,800 (GHS165,600); one bedroom – $20,700 (248,400); two bedroom – $34,500 (GHS414,000) and three bedroom – $42,550 (GHS510,600).
The Ministry of Works and Housing says developers cannot sell above the agreed price ceiling but they can sell below.
According to a report by StatsGH on Twitter, majority of Ghanaians will not benefit from this project due to their current economic standing.
StatsGH indicates that about 90% of Ghanaians employed earn salaries below GHS5000, adding that “only 10% of Ghanaian workers have a salary above GHS5000.”
As section of the public have criticised the government over the matter, arguing that government should have invested in completing the Saglemi Housing Project began by the erstwhile Mahama government.
Sometimes you feel sad to be a Ghanaian, we are just wasting our resources. The government should have thought of how to complete the Saglemi project before starting any other housing project- Caller on the National Affordable Housing Programme#TV3NewDaypic.twitter.com/yX2VtJFVuB
“National Affordable Housing”.. pricing in dollars.. are the citizens a joke to these people?..my goodness, it gets more frustrating as each day passes by.. https://t.co/fYXddFdTm5
The Pokuase Affordable Housing Project saw its commencement marked by a sod-cutting ceremony held by the government on August 1, 2023.
The Ministry of Works and Housing highlighted that the government facilitated the affordability of the houses within the Pokuase Affordable Housing Project by subsidizing the expenses.
This was achieved through the allocation of land and the establishment of on-site infrastructure.
Reason for pricing in dollars
Communications director of the National Disaster Management and a member of the New Patriotic Party (NPP), George Ayesi, has justified why government has priced the Pokuase housing project in dollars.
According to him, the prices instill confidence in investors due to the stability of the currency, which contrasts with the uncertainties surrounding the local cedi.
Pokuase Affordable Housing Project
The project is structured into two phases. The initial phase will consist of 4,000 units and is projected to conclude within 18 months. Subsequently, the second phase will encompass the remaining 4,000 units and share a similar timeline of 18 months for completion.
Five reputable developers have been tasked with executing this endeavor: Rehoboth Properties, State Housing Company Limited, Devtraco Group Limited, FrankPauls Ventures Company Limited, and Douja Promotion Addoha Groupe Limited. Each of these entities boasts extensive experience, expertise, and ample resources.
The initiative boasts an authorized Master Plan designed to encompass a broader catchment area, extending beyond Pokuase to encompass the adjoining four local assemblies.
Within this scope, various amenities are envisaged, including football fields, tennis courts, volleyball courts, basketball courts, swimming pools, and children’s playgrounds, all intended to serve the neighboring communities.
Additionally, as part of the revised program, an additional 6,000 housing units will be constructed on a 200-acre plot in Dedesua, located in the Ashanti Region. This expansion is currently undergoing feasibility studies.
The Public Procurement Authority (PPA) has granted approval for the appointment of a transaction advisor to facilitate the sale of the Saglemi Housing project to a private sector entity.
This move came after a directive from Cabinet to the Minister of Works and Housing to explore the possibility of disposing of the project.
The objective is to sell the project to a private sector entity at its current value, with the responsibility of completing the housing units and selling them to the public without any further cost to the government.
To oversee and manage all the necessary engagements for the project’s completion, the Ministry of Works and Housing has formed a technical working group comprising representatives from various state and independent professional institutions.
The Saglemi Housing project, originally planned to provide mortgage arrangements for 5,000 housing units to be sold to employees through the Ghana Home Loans Company, faced variations during execution, resulting in only 1,506 housing units being completed.
President Nana Addo Dankwa Akufo-Addo emphasized the importance of transparency and ensuring value for money in executing the Cabinet’s directive.
Valuable lessons learned from the Saglemi project have influenced the approach and execution of the new housing initiative.
Acknowledging the delays and setbacks in the Saglemi Project, President Akufo-Addo revealed that issues regarding its scope of work and expenditure are under investigation by the criminal investigations division of the Ghana Police Service.
To prevent further deterioration, the Ministry of Works and Housing has been actively engaging with Cabinet, the Minister of Finance, and the Office of the Attorney General.
An additional $56 million will be required for completing offsite infrastructure works such as water, electricity, and storm drains to mitigate flooding. Moreover, $68 million is needed for finalizing the buildings and essential on-site infrastructure, including a waste holding bay, sewage treatment plant, and the development of socio-economic and civic infrastructure like a basic school, a clinic, and shops.
The sale of the Saglemi Housing project to a private developer is expected to enable its completion and successful integration into the Revised National Affordable Housing Programme.
According to him, this additional amount is on top of the $198 million already invested in the project.
During the sod-cutting ceremony for the Pokuase Housing Project today, August 1, 2023, the President stated that the Ministry of Works and Housing has been working in partnership with the Ministry of Finance, the Attorney General’s office, and Cabinet to revive the Saglemi Housing Project.
According to him, the additional money required will be used to take care of some off-site essentials such as water, electricity, and storm drains to mitigate flooding.
“However, in the meantime, to fore store the project from deteriorating, the minister for works and housing, has actively engaged the cabinet, the ministry of finance and the office of the attorney general on the completion of the project.
“It has been established that in addition to the $198million already spent on the project, government has to raise additional financing to the tune of $46million to complete the off-site frustration work that is water, electricity and storm drains to mitigate flooding,” he said.
“Further, $68million is required to complete the buildings and other essential onsite infrastructure works like the waste holding bay, sewage treatment plants and the development of socioeconomic and civic infrastructure such as basic school, clinic and shops,” he stated.
Acknowledging delays and setbacks encountered during its execution, President Akufo-Addo emphasised that the government is committed to preventing further deterioration of the Saglemi Project while the investigation proceeds.
“It is important also to address the challenges faced by the Saglemi Housing Project which the minister for housing alluded to.
“We are aware of the delays and setbacks encountered during the execution of this project. The issues about the scope of work and the monies spent on the Saglemi Project have been taken to the criminal investigations division of the Ghana Police Service for investigation. Which has resulted in a criminal judicial proceeding,” he said.
The Saglemi Housing Project has been a significant undertaking for the previous government. It aimed at providing affordable housing and reducing the housing deficit in Ghana.
However, the project has faced a lot of scandals and procurement breaches. As a result, even though the project has been completed, it has been left to deteriorate.
The Nana Addo-led government claims that it is investigating these scandals before the project can be utitlised.
Ghana’s housing crisis is a well-known problem that has persisted for decades. Despite the government’s efforts to tackle the issue, many Ghanaians still struggle to find affordable and quality housing. One of the reasons for this is the exorbitant prices charged by developers for their houses.
Presently, Ghana has a staggering housing deficit of about 1.8 million according to the Ghana Statistical Service (GSS). This is partly due to higher rental rates, mortgages, building materials, etc.
President Akufo-Addo has justified the government’s decision to initiate a new housing project instead of continuing with the Saglemi Housing project, which was started during the previous John Mahama administration.
The Saglemi Housing Project, launched in 2016, faced delays and stagnation as the government deemed it not in the best interest of Ghanaians.
Speaking at the sod-cutting ceremony in Accra for the National Affordable Housing Project, which aims to construct 8,000 units with private sector support, President Akufo-Addo explained that proceeding with the Saglemi project would have incurred additional debt.
He acknowledged the challenges and setbacks encountered during the Saglemi project’s execution, and certain matters regarding scope of work and expenditures have been referred to the Criminal Investigations Division of the Ghana Police Service for investigation and subsequent criminal judicial proceedings.
“We are aware of the delays and setbacks encountered during the execution of this project. The issues about the scope of work and the money expended on the Saglemi project have been taken to the Criminal Investigations Division of the Ghana Police Service for investigation which has resulted in criminal judicial proceedings.
“However, in the meantime, to forestall the project from deteriorating the Minister of Works and Government has actively engaged government, cabinet, the Ministry of Finance and the office of the Attorney General on the completion of the project.”
“It has been established that in addition to the $198 million already expended on the project, the government has to raise additional funding to the tune of $ 46 million to complete the infrastructural works. That is water, electricity, and drains to mitigate flooding.
“Further, $68million is required to complete the buildings and other essential onsite infrastructure works like the waste holding bay, sewage treatment plants and the development of socioeconomic and civic infrastructure such as basic school, clinic and shops,” he stated.
While those investigations are underway, the Minister of Works and Government has actively engaged with the government, cabinet, Ministry of Finance, and the Attorney General’s office to address the completion of the Saglemi project.
President Akufo-Addo highlighted that beyond the $198 million already spent on the project, an additional $46 million is required to complete infrastructural elements such as water, electricity, and drainage to prevent flooding.
Moreover, an extra $68 million is needed to finish the buildings and other essential on-site infrastructure, including waste holding bay, sewage treatment plants, and the development of socio-economic and civic facilities like schools, clinics, and shops.
Considering various assessments and project location, the cabinet instructed the Minister of Works and Housing, Francis Asenso-Boakye, to explore the possibility of involving the private sector to complete the Saglemi housing project at its current value without further cost to the government.
Findings by a poll conducted by the Institute of Liberty and Policy Innovation (ILAPI), a public research think-tank, indicates that the government has wasted a staggering 73 billion cedis on its programmes and key decisions.
According to the group, the amount covers a range of programmes, decisions and policies, including presidential travels, Saglemi Housing Project, National Cathedral, establishment of the Office of the Special Prosecutor, government appointees, Planting for Food and Jobs, fighting galamsey etc., which are all areas that Ghanaians perceive as government waste of taxes.
The group made the revelation at the launch of a research report by the institute, dubbed “Government Wasteful Spending: Crumbs of Government Waste Report, 2022.”
“On average, the Government wastes GHc0.70 out of every GHC1.00 received as revenue. This denotes that 70 percent of every GHC1.00 of taxpayers’ contributions goes into wasteful spending,” the findings said.
The report also mentioned that a key factor that contributed to the wastage of public funds was the lack of transparent and accountable procurement processes, which included inefficient bidding systems, inadequate oversight mechanisms and instances of corruption, leading to inflated contract prices.
Additionally, the presence of redundant or obsolete government programmes and agencies, which often duplicated functions, resulted in inefficient resource allocation and unnecessary administrative costs. Insufficient evaluation of project feasibility, unrealistic cost estimates and poor monitoring of expenditures often amounted to cost overruns and improper allocation of resources.
Touching on the duplication of institutions performing the same function, Executive Director for ILAPI, Peter Bismark Kwofie said that, for instance, the office of the Attorney General was allocated funds to fight corruption. In the same vein, CHRAJ and the Office of the Special Prosecutor, which were also mandated to fight the canker, were allocated funds.
The perception poll was conducted across the country between August and November 2022 with 2000 respondents on its website, Twitter, Facebook, Instagram and WhatsApp pages through random sampling.
Mr Kwofie averred that the poll provided primary information on the perception of Ghanaians about how their taxes were being utilised to solve problems and enhance economic prosperity.
Its Conceptual Review, Definition and Methodology were prepared by ILAPI’s Executive Director, Peter Bismark Kwofie. Poll and Data Analysis were conducted by Stephen Dansu and a public policy contribution was made by Dr Mohammed Jamal of the Koforidua Technical University.
Mr Kwofie believes that the amount would be more if the research had been conducted over a longer period.
“If we had conducted the research sector by sector and we had done it on almost all the government flagship programmes from 2014 up to date, we would be receiving more than 73 billion Ghana cedis as waste,” he noted.
Touching on other revelations in the poll, Mr Kwofie indicated that 92 per cent of respondents were of the view that the government was wasting taxes; this, he noted, influenced the citizens’ degree of trust in the government.
He said, “statistically, 90.5 percent of Ghanaians have lost trust in the Government due to corruption and a lack of accountability and transparency in the implementation and execution of policies and programmes.”
Providing recommendations on how to mitigate wasteful spending and gain citizens’ trust, the Report suggested that strengthening of budgetary processes and introducing effective oversight mechanisms in promoting a culture of fiscal responsibility within the government financial architectures.
It went on to suggest fiscal covenant responsibility laws and rules, which would regulate government spending to enhance transparency and accountability. Additionally, ILAPI suggested a comprehensive review of government programmes to identify redundancies and inefficiencies. It explained that eliminating or merging redundant entities or institutions can result in cost savings and improved service delivery.
The Ministry of Works and Housing is optimistic that a Housing Authority will bring closure to all the challenges associated with housing in the country.
The Ministry also believes that with the help of the authority, there will be effective implementation of housing policies as well as a curb on the rate at which housing projects are abandoned after the government that initiated them leaves office.
Speaking on behalf of his outfit, deputy House and Works Minister, Abdulai Abanga, who lamented about the situation, said this trend (of stalled projects as a result of the change of government) should be a thing of the past.
“The conception, management, and planning of these projects were not handled by professionals but rather influenced by political considerations,” he said. “So we are hoping that when the Ghana Housing Authority is established, we will have highly qualified professionals to undertake affordable housing implementations.”
“The government led-housing projects which normally suffer in implementation, causing them to be stalled and abandoned when there is a change of government, should be a thing of the past,” Mr. Abanga said.
The comment follows the controversy surrounding the abandoned Saglemi Housing Project, which the government intends to sell to a private sector entity.
Government has clarified that the sale of the project (which was
to provide affordable housing to
Ghanaians upon completion) is the best option given the current circumstances.
However, this has been widely contested by many who believe the decision is not in the best interest of the country.
Addressing a gathering at the 2022 Ghana Property Awards, Mr Abdulai Abanga, said the authority will ensure that professionals undertake affordable housing projects in the country.
Meanwhile, the government maintains that the sale of the project is the best. Speaking on Saturday, November 26, 2022,the deputy finance minister, John Kumah, explained that “the Saglemi Housing project is no longer affordable per the arrangement that has happened to it because if you divide $200 million by 10,000, you are going to get it at $10,000, and they reviewed it to 1,500 (housing units) which makes it up (from) $40,000 to $50,000 per
unit. So how affordable can that be?”
“So in the present circumstances, the best option is to bring the private sector in,” he said.
The Member of Parliament (MP) for Ningo-Prampram, Sam Nartey George, has alleged that personnel of the Ghana PoliceService deployed to protect the Saglemi Housing project are the ones behind the theft of materials meant for the completion of the project.
According to Sam George, whose constituency hosts the Saglemi Housing Project, some of his constituents caught some policemen transporting materials meant for the project.
Speaking in a Good Morning Ghana interview monitored by GhanaWeb on Thursday (November 26), the MP added that the policemen said they were given orders from above to transport the materials when they were caught.
“By the time they (the current government) took office, almost all the fittings for all the 1520 apartments that were completed were there – toilet bowls and tiles. You know the police people that were put in charge as security, went and stole the things.
“I am saying this on record because my boys arrested them. The police people who were sent there as national security to protect the property stole the tiles, stole the toilet bowls. My own boys in Tsopoli arrested them.
“We took the case to the Tema (Police) Regional Commander. And when we arrested them, they claimed that they were instructed to remove the things from the top,” he said.
He also said that the attempt by the Nana Addo Dankwa Akufo-Addo government to sell the project to private developers is a form of state capture.
He added that the John Dramani Mahama government contracted a loan to build the project which it has fully paid.
Government has defended its decision to privatise the Saglemi Housing Project.
According to the deputy Finance Minister, John Kumah, the decision is the best, given the current circumstances.
Speaking on Saturday, November 26, 2022, during Newsfile, he
explained that “the project is no longer affordable per the arrangement that has happened to it because if you divide $200 million by 10,000, you are going to get it at $10,000, and they reviewed it to 1,500 (housing units) which makes
it up (from) $40,000 to $50,000 per unit. So how affordable can
that be?”
“So in the present circumstances, the best option is to bring the
private sector in,” he said.
He, however, assured the citizenry that the government will be transparent in choosing a buyer.
The Saglemi Housing Project was initiated by the erstwhile Mahama Administration.
It was originally meant to be a 10,000 residential unit later
reviewed as a 5,000 unit facility to address the country’s housing
deficit.
However, after the Mahama administration left office, the project was abandoned and left to rot, despite various assurances by the current administration to complete it.
Government initially blamed its failure to complete it on lack of
financial resources.
In the latest development, the government, through the Works
and Housing Minister, Francis Asenso Boakye announced plans to privatise the project.
“Government has decided to – Explore the possibility of selling the Saglemi Housing Project, covering the 1,506 housing units, at the current value to a private sector entity to complete and sell the housing units to the public, at no further cost to the State,” Mr
Asenso-Boakye said at a press briefing in Accra.
“In furtherance of the above, and to facilitate the processes, a Technical Working Team has been set-up, comprising professionals and experts to oversee and spearhead all engagements required for the completion of the project.
This is being done with the goal of ensuring transparency and accountability, while guaranteeing value for money in the completion of the project,” he added.
Subsequently, the Minority in Parliament issued a caution to the
government to rescind its decision.
Minority Spokesperson for Works and Housing, Vincent Oppong
Asamoah argued that the project is viable therefore, “government should be compelled to look for funds to complete the project instead of privatisation.”
The anticipated action has drawn criticism and resentment, but according to Dr. John Kumah, deputy minister of finance, the decision is the best one the government can make given that the project has turned out to be less economical than initially thought.
“The project is no longer affordable per the arrangement that has happened to it because if you divide $200 million by 10,000, you are going to get it at $10,000 and they reviewed it to 1,500 (housing units) which makes it up (from) $40,000 to $50,000 per unit. So how affordable can that be?” he is quoted by Joy Business.
“So, in the present circumstances, the best option is to bring the private sector in,” the deputy finance minister insisted.
The Saglemi Housing project started under the erstwhile John Mahama administration. It was originally expected to see the construction of 10,000 residential housing units but was later reviewed to 5,000 units in order to ease construction cost, among others.
The housing project is situated on a 300-acre land and has courted controversy over the years which has led to two former government officials being prosecuted by the state.
Following the announcement by Works and Housing Minister, Francis Asenso Boakye, to sell the project to a private developer, minority lawmakers in parliament have cautioned against the intended sale.
They believe government must rather look for funds to complete the project instead of resorting to privatisation.
The ranking member of the Works and Housing committee of parliament, Vincent Oppong Asamoah, has cautioned private developers against buying the Saglemi Housing Project from the government.
According to him, the project will be taken from them when the NDC government assumes power if they go ahead to acquire it.
“We the minority are stating our position very clearly that we wouldn’t want any private developer to come in at all. In 2025 we are very confident that the NDC will form the next government, so any private developer that will partner the government to complete this project, project will be taken from them because it should remain affordable and the mortgage system.”
On November 13, 2022, the minister for Works and Housing, Francis Asenso Boakye, revealed that the government has decided to wash its hands off the Saglemi housing project to allow a private developer refurbish the housing units and sell them to potential owners.
The Saglemi housing project was started in 2012 under the NDC government to build 5000 housing units at affordable prices.
The project was meant to give Ghanaians affordable housing in a bid to bridge the housing deficit in the country.
However, the minority is against this development stating that they will resist any attempt by government to profit from poor taxpayers unduly as the government has not explained why the project should not be given to the public or civil service but instead of some faceless people.
The caucus believes that the project must remain government-run in order enable employees of the government, including MPs, to purchase the homes at reasonable prices.
On Tuesday, November 22, 2022, as the minority members of the committee were touring the site, Mr. Vincent Oppong Asamoah, the ranking member of the select committee on works and housing, told journalists, “We are stating our position clear that we wouldn’t want any private developer to come in at all.”
“In 2025, we are very optimistic that the NDC will form the next government, so, any private developer that will partner the government to complete this project; the project will be taken away from him because it should remain affordable and the mortgage system; it should go to the workers of Ghana”, he warned.
“So, we came around for you to know that this government has neglected it and caused so much financial loss to the state [and] the people of Ghana because you have taken shots of what has happened here [removal of doors, burglar proofs and cables]; as to whether it was even organised by the government so that while we see the level of deterioration, that will give them the energy and confidence to tell Ghanaians that the project has failed so that they can sell it to themselves, but, at least, we have seen it; there’s still a way out”, he noted.
The visit revealed that security doors, burglar proofs, power and phone cables have been “stolen” from the housing units.
The caucus’ visit followed a recent announcement by the Minister of Works and Housing that the government intends to sell the project to a private investor.
Speaking at a press briefing a couple of weeks ago, Mr Asenso-Boakye said that the decision was taken after an assessment of the project and some consultations were done.
According to the minister, the “government will have to provide additional financing to the tune of approximately US$46 million to provide off-site infrastructure, i.e. water, electricity, and storm drainage systems to make the housing units habitable.”
“Additionally, there is the need to invest approximately US$68 million to complete the buildings and other essential on-site infrastructure works,” Mr Asenso-Boakye told journalists.
He said after spending US$196 million on the project, the government has decided against sinking any further taxpayer money into it.
“After a painstaking period of assessment, verification and consultations, the government has decided to explore the possibility of selling the Saglemi housing project, covering the 1,506 housing units, at the current value, to a private sector entity to complete and sell the housing units to the public, at no further cost to the state,” Mr Asenso-Boakye said.
Mr Asenso-Boakye said the proceeds from the sale would be reinvested into other affordable housing projects.
The minority is, however, suspicious of the government’s intention, thus, its visit to the site on Tuesday, 22 November 2022.
Speaking to the media at the site of the project during the minority’s tour, Mr Emmanuel Kwadwo Agyekum, a member of the select committee on works and housing, said the houses were even more habitable than some residences in the prime areas of Accra and wondered why the government abandoned it for so long
“I have not seen double lanes in even in Trasacco, I haven’t seen dual carriageways; in fact, one lane here can take three vehicles. You can see the vegetation here; everything is perfectly done”, he observed.
He said the stripping bare of the buildings could only be an organised crime.
“You see the way the cables are cut off, you have to be professionals to be able to cut these cables. It’s not about any ordinary thief moving in to say: ‘I’m going in to steal’. Even removing the windows, it will take them more than one month to remove all the windows here [and] all the burglarproof.
“The security gates here were fixed and they have been removed. So, count the number of security gates or doors that were removed. How many articulated trucks will be able to move it out? Where were they sent to? Where were they sold? Plus the burglar proofs. These are aluminium ones. How were they removed? Where were they taken to? How many articulated trucks drove in here to come and pick them up?” he wondered.
“Apart from that, telephone cables, electricity cables [were] removed. The rest of the things: the fittings in the kitchens and everything removed. It means it is organised”, he pointed out.
Thieves, reptiles take over Saglemi housing project after years of government neglect
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“I’m inviting the clergy to come here, I’m inviting the council of state members to come here, I’m inviting whoever matters in this country to come here and look at it yourself”, he added.
In his view, “people have actually organised to commit a crime [against] the state just to make money and I’m telling you, they are going to sell them so cheap to their brothers and sisters. Check it; there would be somebody buying this linked to the government and that is the thing they’ve been doing”.
The 2,172 acres on which the Saglemi housing project is situated were procured in 2002 during the era of President John Agyekum Kufuor.
On August 15, 2012, the late President John Evans Atta Mills gave executive approval to the Ministry of Water Resources, Works and Housing to implement the project.
The project involved the construction of 5,000 housing units for sale to public members through mortgages provided by Ghana Home Loans.
The project was implemented by Constrastora OAS Ghana Limited through a buyer’s credit of up to $200 million.
By the end of the stipulated completion date, the original contract of the project had been amended three (3) times, with the project scope reducing from the initial 5,000 housing units to 1,506 housing units, although US$195,854,969.52 representing 98% of the project funds had been expended.
That notwithstanding, the 1,506 housing units were at various stages of completion.
None of these 1,506 housing units was habitable because the project currently lacks basic amenities such as water and electricity and other related amenities.
At the same time, a technical assessment report by the Ghana Institution of Surveyors in September 2020, valued the total cost of on-site works at US$64,982,900.74.
There is an ongoing criminal prosecution at the High Court to determine the discrepancies with the funds expended on the project vis-à-vis the valued cost of works and original project scope.
No Phasing
In 2021, former Works and Housing Minister E.T. Mensah denied claims that the $200-million project was planned to have been executed in phases.
The council of state member told Paul Adom-Otchere on Accra-based Metro TV’s Good Evening Ghana programme on Tuesday, 3 August 2021: “I was not involved in any phasing system”.
“We knew that we wanted to build – that is 5,000 houses to be built for workers – and it was approved”, he said.
According to him, “executive approval was given and parliament approved it, so, if anything at all, if I wanted to change something, I had to go through the same process again”.
Collins Dauda Charged
Mr Mensah’s successor, Mr Collins Dauda, was charged with causing financial loss to the state in connection with the Saglemi housing project.
The opposition politician is accused of intentionally misapplying the project sum of $200 million “by causing the said amount, which had been approved by the parliament of Ghana for the construction of 5,000 housing units, to be applied toward the payment of 1,412 housing units”.
In 2020, Mr Dauda’s successor, Samuel Atta Akyea, disclosed that all former government appointees and officials involved in the project were being investigated by the Criminal Investigations Department of the Ghana Police Service.
Mr Atta Akyea, who described the project as a rip-off, noted that it does not measure up to the cost purported to have been invested in it.
Mr Atta Akyea disclosed this while speaking to the parliamentary press corps on Thursday, 8 October 2020.
He also condemned the habit of new governments discontinuing projects started by previous administrations.
“In relation to Kufuor’s uncompleted housing structures, the evidence is clear that the Mills government and the Mahama government did not continue it. Then, I was met with this jejune argument that we have abandoned Saglemi. I say, ‘no, we have not abandoned Saglemi,” the minister said.
Mr Atta Akyea further noted that the Mahama-led administration ripped the country off in executing the project.
He stated: “Saglemi is tainted with embezzlement”.
“There’s no dispute about it, and I could tell you that the Ghana Institution of Surveyors has come out with a conclusive report to the effect that Saglemi is a rip-off and the amount of money that has been blown in Saglemi is over USD100 million and the housing structures over there do not measure up to the money they’ve collected”, he said.
“So, I’m not here to embarrass anybody; I’m here to say that if you didn’t go into the legalities of it, how do you continue? So, now that we’ve surrendered the report of the Ghana Institution of Surveyors to CID, now, we can deal with the issue of going to continue”, he added.
Mr Atta Akyea noted at the time that: “We’re pushing so hard to deal with the issue of Saglemi; it’s not abandoned. It doesn’t give this nation credit at all.”
“They’ve invited several of them, including Honourable Collins Dauda. They’ve invited them but you see how civil NPP is; we don’t make it like a drama, so, the police are dealing with them. We’re not going to parade people like: ‘Look at how they’ve arrested this man or they’ve arrested that man’”.
“That is what civility is all about. You do not try to embarrass somebody because you think that he’s been investigated by the police. Eventually, the police might say that they do not have anything against the person and you would have embarrassed him”.
“So, all those people who were involved in Saglemi, they’ve started inviting them. I’m telling you and even people working in my Ministry, they’ve started inviting them. So, investigations are ongoing, let’s leave the police to do its work. There’s no propaganda or party issues about theft, theft is theft,” the minister added.
Charges Against Collins Dauda ‘Frivolous, Trumped-up, Political’ – Haruna Iddrisu
Minority Leader Haruna Iddrisu, in 2021, said the 52 charges levelled against Mr Dauda and four other persons for causing financial loss to the state in connection with the project, were frivolous and trumped up.
Mr Iddrisu, who led other minority MPs to court on Thursday, 5 August 2021, to solidarise with the Asutifi South MP, told journalists: “It is instructive that they are being charged when the courts are themselves on vacation”, wondering: “What is the hurry and what is the desperation in this?”
Concerning the alleged financial loss, Mr Iddrisu asked: “Whose value?”
“The Attorney General says it is $64 million. I believe that these are frivolous, trumped-up charges intended to politically persecute and politically harass”, he said.
“We remain undoubted. I do not think that these charges can stand the test of the law. I am very convinced about this,” he said.
Mr Dauda and Kweku Agyeman Mensah, also a former housing minister, appeared in court on Thursday, 5 August 2021 and were granted separate bail bonds.
Mr Dauda was granted a self-recognisance bail after pleading not guilty in the matter of causing financial loss.
Mr Agyeman Mensah and a third accused person, Alhaji Ziblim Yakubu, Chief Director of the ministry of housing, were each granted bail of $65 million.
They were both to produce three sureties each, one of which must be a public officer.
Another accused person, Mr Andrew Clocanas, an Executive Chairman of Constructura OAS Ghana Limited, was also admitted to a bail bond of $179 million with three sureties, one of whom should be a public servant.
A fifth accused person, Nouvi Tetteh Angelo, was also admitted to a bail bond of $13 million with three sureties.
The court, presided over by Justice Comfort Tasiame, seized the passports of all the accused persons.
Per the facts of the case presented by Attorney General Godfred Dame, Mr John Mahama, as president, granted an executive order for the construction of 5,000 affordable housing units in August 2012 at Saglemi in the Ningo Prampram the constituency of the Greater Accra region.
Parliament approved the deal, which had funding from Credit Suisse.
The houses were to be sold to workers through mortgage arrangements provided by the Ghana Home Loans Company as it was at the time.
A Brazilian company, Construtora OAS Ltd, was the contractor.
The AG said the borrower, the Ministry of Finance, and the lender, signed a facility agreement on January 4, 2013, for the release of $200 million to fund the construction of the 5,000 housing units, the day on which the Housing Minister also signed the EPC agreement with Construtora OAS, represented by Clocanas, the fourth accused.
According to the AG, the project was to be executed in four phases on 2,172 acres of land at a contract price of $200 million, including consultancy services.
An Escrow Management Agreement, a condition precedent to the release of the facility to the borrower, was also signed, pursuant to the facility and the EPC agreements, he said.
Mr Dame further stated that on February 27, 2014, Mr Dauda, without parliamentary approval, reviewed the EPC agreement and signed both the original and the revised (restated) agreement with Construtora OAS, represented by Clocanas.
The revision allegedly changed the scope of works and the application of the $200 million approved by Parliament.
This new agreement required the contractor to execute the project in three phases over a site of 1,272 acres, while the $200 million was now to be applied towards the execution of only the first phase of the project, comprising just about 1,502 housing units.
This was contrary to the executive and parliamentary approvals, as well as the facility and Escrow Management agreements.
On December 21, 2016, according to the facts, the Chief Director, Yakubu, again reviewed the original and revised the (restated) agreement and signed them (second and his revised or restated), without recourse to Parliament.
That led to a further reduction in the scope of works to 1,412 housing units at a revised price of $181 million, and extended the completion period to July 31, 2017, the prosecutor alleged.
According to Deputy Information Minister Fatimatu Abubakar, the Saglemi Inexpensive Housing Project won’t be affordable after it’s finished.
One unit can “cost in excess of $205,000,” she said during a panel discussion on Peace FM’s “Kokrokoo” morning show on Monday, November 14, 2022.
“The truth is that it will be deceptive on my part to say this project will be affordable because already government has invested $160m and we need an additional $114m . . . one apartment of a two-bedroom house will cost in excess of $205,000 per unit,” she added.
The project was initiated in 2012 under the erstwhile Mahama government for the delivery of 5,000 housing units at a total cost of US$200 million under an Engineering-Procurement-Contracting (EPC) Agreement with Messrs Construtora OAS Ghana Limited.
The original contract of the housing project, he revealed, was amended by the Mahama government from the initial aim of constructing 5,000 houses to 1,500 houses at the same cost.
“Even with the 1,500 that I am talking about, they were not even complete. They said it is at various stages of completion. Some were 90% complete and some 20%, so the 1,500 were not all completed. Also, it was inhabitable because there is no electricity connection to the place. There is no water connection to the place and other important amenities that, without them, will make living there very difficult,” he expounded.
Mr Asenso-Boakye said because the current administration is committed to completing the project, his ministry has tasked the Ghana Institution of Surveyors to evaluate the housing unit and the findings pointed out that the Mahama government had spent $196 million representing 98% of the project funds without providing the basic amenities that will make it possible for people to live in the houses nor had they completed the 1,500 houses to make it available for people.
The Minister for Works and Housing, Francis Asenso-Boakye, has said that the Saglemi Housing Project, which was started by the government of former President John Dramani Mahama to provide affordable housing to Ghanaians, is a complete failure.
He said that even though over 90 percent of the cost of the project had been expended, the revised 1500-unit affordable housing project is nowhere near completion.
He added that an evaluation of the project conducted by the government revealed that it will require at least $100 million to complete the project, which he believes makes no economic sense, necessitating the government’s decision to sell it.
“…We need $46 million to provide offsite infrastructure for the project to get basic amenities like water and electricity. Beyond that, when it comes to the completion of the units, our estimate shows that we need about $68 million.
“So, in all, we realised that we needed over $100 million for the project, and it will be very difficult for Ghanaians to accept this… Meanwhile, the government’s commitment to the Pokuasi and Diasia projects that we have initiated will cost us $55 million, with a total housing unit count of 12,000.
“So, if you are a manager and you have limited resources, why would you want to invest $100 million to complete just the Saglemi project? Whiles, you are looking for money to finance the $55 million project whose benefit is enormous, much better than the Saglemi Housing Project which is a complete failure,” he said in a Peace FM interview monitored by GhanaWeb.
The housing minister further stated that the Attorney General and Minister of Justice, Godfred Dame, had given an indication that there was nothing legally wrong with the project continuing, even though it is the subject of an ongoing criminal prosecution.
Two former Ministers of Works and Housing, Alhaji Collins Dauda and Kweku Agyeman Mensah, and three others, have been arraigned in court over the Saglemi Affordable Housing infractions.
The five were charged on August 5, 2021, with 52 counts, including causing financial loss to the state.
They are facing charges of intentionally misapplying public property, causing financial loss to the state, and issuing false certificates in the Saglemi Affordable Housing Project, which involved the sum of $200 million.
Alhaji Collins Dauda, together with Kweku Agyeman Mensah, Alhaji Ziblim Yakubu, Chief Director of the Ministry, Andrew Clocanas, Executive Chairman of Constructura OAS Ghana Limited, and Nouvi Tetteh Angelo, have pleaded not guilty to all 52 charges.
While Alhaji Collins Dauda was admitted to self-recognizance bail, Kweku Agyeman Mensah and Alhaji Ziblim Yakubu were granted bail in the sums of $65 million each. In addition, they were to produce three sureties, one of whom should be a public officer.
Andrew Clocanas, the fourth accused person, was also admitted to bail in the sum of $179 million with three sureties, one of whom should be a public servant. Nouvi Tetteh Angelo, the fifth accused person, was admitted to bail in the amount of $13 million with three sureties.
He contends that it is a commendable move to transfer the project to a private organization due to the different concerns surrounding it.
“I think it is a good call, at least it would bring us to a point for us to transform it into a usable project,” he is quoted as saying by citinewsroom.com. “This [announcement] has clearly shown the intentions of the government to do something with that project; they have committed a lot of funds to it and they don’t want to incur any other cost and want to dispose of it by selling it to a private investor.”
He continued by saying that legal issues and the explanation for the project’s location in that area should be revealed.
“This calls for a whole assessment, apart from the project itself going to be sold, one has to find out the assessment that was made for the project to be cited at that place.
“The most important thing is the legal concern, you have to look at the contractual agreement that existed and how the project was supposed to be executed, who the parties involved are because the current government has taken some past ministers to court on this matter so you need to really consult on the legal position,” he said.
The Minister for Works and Housing Asenso Boakye revealed that the 1500-unit Saglemi Housing Project was going to be sold to private developers in order to derive the project’s intended benefits.
On this basis, “we’re allowing for a private sector developer to take up the initiative to build and sell the housing units,” he said on November 13, 2022.
However, the GREDA Executive Secretary has asked the government to consider the sale of single units of the projects to interested buyers as it may be impossible for a sole developer to acquire.
South Dayi Member of Parliament Rockson Nelson Dafeamekpor has said the plan by the government to sell the Saglemi Housing Project to a private person is the most economically depressing piece of policy he has seen from this government.
He questioned whether the Attorney-General aware that the Saglemi Housing Scheme, which is a subject of Criminal Prosecution of the Hon Collins Dauda & others in court is being sold to a private person?
The Minister of Works and Housing, Francis Asenso Boakye has announced the government’s intention to explore the sale of the Saglemi Housing project to private sector investors for completion.
This is at no cost to the State and to reinvest the proceeds of the transaction into other affordable housing projects, he said.
Addressing a press conference Accra on Sunday November 13, he said the decision was taken after a painstaking consultation verification and assessment.
The Bantama lawmaker said “After a painstaking period of assessment, verifications and consultations government has decided to explore the possibility of selling the Saglemi Housing project, covering the 1506 housing unit , at the current value to private sector entity to complete and sell at no further cost to the state.
“Proceeds from the sale will come to the state and reinvested into affordable Housing project.
“To facilitate the process a technical working team has been set up, comprising professionals and experts to oversee and spearheads all engagements required for the completion of the project.”
The project was initiated in 2012 for the delivery of 5000 housing units at a total cost of 200,000,000 under and Engineering-Procurement-Contracting (EPC) Agreement with Messrs Construtora OAS Ghana Limited.
By the end of the stipulated completion date the original contract of the project had been amended three times with the project scope reducing from the initial 5000 housing units to 1506housin units although $195,854969.52 representing 98 % of the project funds had been expended, he further stated.
Commenting on this in a tweet, Mr Dafeamekpor said “This is the most economically depressing piece of policy I’ve seen from this Govt. Is the Attorney-General aware that the Saglemi Housing Scheme, which is a subject of Criminal Prosecution of the Hon Collins Dauda & ors in court is being sold to a private person?”
This is the most economically depressing piece of policy I’ve seen from this Govt.
Is the Attorney-General aware that the Saglemi Housing Scheme, which is a subject of Criminal Prosecution of the Hon Collins Dauda & ors in court is being sold to a private person? pic.twitter.com/ZnNKavHPFM
The Minister of Works and Housing, Francis Asenso Boakye has said the funds that will be generated from the sale of the Saglemi Housing project will be reinvested into another affordable Housing project.
He announced the government’s intention to explore the sale of the Saglemi Housing project to private sector investors for completion on Sunday November 13.
This is at no cost to the State and to reinvest the proceeds of the transaction into other affordable housing projects, he said.
Addressing a press conference Accra, he said the decision was taken after a painstaking consultation verification and assessment.
The Bantama lawmaker said “After a painstaking period of assessment, verifications and consultations government has decided to explore the possibility of selling the Saglemi Housing project, covering the 1506 housing unit , at the current value to private sector entity to complete and sell at no further cost to the state.
“Proceeds from the sale will come to the state and reinvested into affordable Housing project.
“To facilitate the process a technical working team has been set up, comprising professionals and experts to oversee and spearheads all engagements required for the completion of the project.”
The project was initiated in 2012 for the delivery of 5000 housing units at a total cost of 200,000,000 under and Engineering-Procurement-Contracting (EPC) Agreement with Messrs Construtora OAS Ghana Limited.
By the end of the stipulated completion date the original contract of the project had been amended three times with the project scope reducing from the initial 5000 housing units to 1506housin units although $195,854969.52 representing 98 % of the project funds had been expended, he further stated.
The Minister for Works and Housing, Francis Asenso Boakye has revealed that the government is looking into selling the Saglemi Housing Project to a private entity.
Speaking at a press briefing on Sunday, Mr Boakye said that the decision was taken after some assessment of the project and broader consultations.
According to him, the government could not ignore calls by the people to complete the project. This resulted in government actively engaging Cabinet, the Ministry of Finance (MoF), the Office of the Attorney-General and the Ministry of Justice.
However, upon assessment, it was revealed that the “government will have to provide additional financing to the tune of approximately US$46 million to provide off-site infrastructure, that is, water, electricity, and storm drain, to make the housing units habitable.”
“Additionally, there is the need to invest approximately US$68 million to complete the buildings and other essential on-site infrastructure works,” Mr Boakye added.
The Minister explained that after expending approximately US$196 million on the project, the government does not intend to expend additional tax-payers money towards the completion of the project.
Hence “after a painstaking period of assessment, verification and consultations, Government has decided to – Explore the possibility of selling the Saglemi Housing Project, covering the 1,506 housing units, at the current value to a private sector entity to complete and sell the housing units to the public, at no further cost to the state,” Mr Boakye said.
He noted that the proceeds from the sale will come to the state and be reinvested into other affordable housing projects.
Saglemi Housing Project
The 2,172 acres on which the Saglemi housing project is situated were procured in 2002 during the era of President John Agyekum Kufuor.
On August 15, 2012, the late President John Evans Atta Mills gave executive approval to the Ministry of Water Resources, Works and Housing to implement the project.
The project involved the construction of 5,000 housing units for sale to public members through mortgages provided by Ghana Home Loans.
The project was implemented by Constrastora OAS Ghana Limited through a buyer’s credit of up to $200 million.
By the end of the stipulated completion date, the original contract of the project had been amended three (3) times, with the project scope reducing from the initial 5,000 housing units to 1,506 housing units, although US$195,854,969.52 representing 98% of the project funds had been expended.
That notwithstanding, the 1506 housing units were at various stages of completion.
None of these 1506 housing units were habitable, because the project currently lacks basic amenities, such as, water and electricity, and other related amenities.
At the same time, a technical assessment report by the Ghana Institution of Surveyors in September 2020, valued the total cost of works on-site at US$64,982,900.74.
Consequently, there is an ongoing criminal prosecution at the High Court to determine the discrepancies with the funds expended on the project, vis-à-vis the valued cost of works and original project scope.
The Member of Parliament for Ketu South, Abla Dzifa Gomashie, has descended on two sector ministers, Owusu Afriyie Akoto and Francis Asenso-Boakye, over their performances in their respective sectors.
The MP, in separate posts on her Facebook page, questioned the outputs of the Minister of Agriculture and the Minister of Works and Housing, respectively, asking how they can prove to Ghanaians that they are working.
In posts, which included photos and videos she captured from Morocco, the National Democratic Congress (NDC) MP wondered why, in the case of Afriyie Akoto, he was yet to show physical evidence of his successes with the government’s Planting for Food and Jobs.
“Dear Minister of Agriculture, people are working without the slogan in other African countries. In these pictures and videos are green houses in Morocco… PLANTING FOR FOOD AND JOBS!
“Where is your scorecard?” she quizzed.
Dzifa Gomashie also quizzed the Minister of Works and Housing on why he has not allowed Ghana’s Saglemi Housing Project to become operational, regardless of the existing allegations.
“Dear Minister for Works and Housing,
“This could be our SAGLEMI after 6 years. Even if what you alleged was true, 6 years is long enough for you to have given Saglemi life.
A new High Court judge, Justice Elfreda Amy Dankyi, has taken over the case involving a former Minister of Works and Housing, Alhaji Collins Dauda, and four others facing 52 counts of causing financial loss of $200m to the state over the Saglemi Affordable Housing Project.
This is because, Justice Comfort Tasiame, who presided over the case when the accused persons first appeared in court during the legal vacation, is on leave and as a result, Justice Dankyi will be the presiding judge to determine the merits of the case in order not to delay the wheels of justice.
Graphic Online’s Justice Agbenorsi who was in the courtroom Monday morning (October 25) reports that, when the case was called this morning, the state, represented by a Chief State Attorney, Mrs Evelyn Keelson, informed the new judge that prosecution will need six weeks to file its disclosures and witness statements.
The presiding judge, ordered prosecution to file all relevant documents before December 22, 2021, a date set by the court for Case Management Conference (CMC).
Not guilty
In August 2021, the former minister, his successor, Dr Kwaku Agyeman-Mensah; the Chief Director at the ministry from 2009 to 2017, Alhaji Ziblim Yakubu; the Executive Chairman of Construtora OAS, the Brazilian company which constructed the affordable housing project at Saglemi, Andrew Clocanas, and a director of RMS, the Engineering, Procurement and Construction (EPC) consultancy subcontractor, Nouvi Tetteh Angelo, pleaded not guilty to the charges against them and were admitted to bail in various sums under various conditions
The changes include willfully causing financial loss to the state, misapplying public property, issuing false certificates and dishonestly causing loss to public property.
Alhaji Dauda is currently on self-recognisance bail.
Dr Agyeman-Mensah and Alhaji Yakubu are on a bail of $65 million each with three sureties.
Clocanas is on a bail in the sum of $179 million with three sureties while Angelo is on a $13 million bail with three sureties.
Two former Ministers for Water Resources, Works, and Housing, who are facing trial for their alleged fraudulent roles in the abandoned Saglemi affordable housing project, have been granted bail by the High Court.
Alhaji Collins Dauda was granted a self-recognizance bail, while his successor, Dr. Kwaku Agyeman-Mensah, was granted bail to the tune of $65 million with three sureties, one being a public servant.
The two former ministers and three others are facing 52 counts of criminal charges for intentionally misapplying public property, wilfully causing financial loss to the Republic, and dishonestly causing loss to public property.
Alhaji Collins Dauda, a former Minister for Water Resources, Works and Housing, and his successor Dr. Kwaku Agyeman-Mensah, have been accused of spending over $196 million on the Saglemi housing project when investigations revealed that the cost of works executed on the site, including consultancy services, was about $64,982,900.77.
The third accused person who was a Chief Director at the ministry was also granted bail to the tune of $65 million or its cedi equivalent with three sureties.
The accused persons who were all present in court pleaded not guilty to the charges. The case has been adjourned to October 13, 2021.
Facts of the case
According to the facts of the case presented by the Attorney General, Godfred Dame, an executive order approving the construction of 5,000 affordable housing units, to be known as the Saglemi Affordable Housing Project, was granted by then-President, John Dramani Mahama in August 2012.
The project, which had parliamentary approval, was funded by Credit Suisse, and the housing units were to be sold to workers through mortgage arrangements provided by the then Ghana Home Loans Company. The contractor for the project is a Brazilian company, Construtora OAS Ltd.
In the facts presented to the court, the Ministry of Finance [borrower], and the lender signed a facility agreement on January 4, 2013, for the release of $200 million to fund the construction of the 5,000 housing units, the day on which the Housing Minister also signed the EPC agreement with Construtora OAS, represented by Clocanas, the fourth accused.
According to the AG, the project was to be executed in four phases on 2,172 acres of land at a contract price of $200 million, including consultancy services.
An Escrow Management Agreement, a condition precedent to the release of the facility to the borrower, was also signed, pursuant to the facility and the EPC agreements, he said.
He further stated that on February 27, 2014, Dauda, without parliamentary approval, reviewed the EPC agreement and signed both the original and the revised (restated) agreement with Construtora OAS, represented by Clocanas.
The revision allegedly changed the scope of works and the application of the $200 million approved by Parliament.
This new agreement required the contractor to execute the project in three phases over a site of 1,272 acres, while the $200 million was now to be applied towards the execution of only the first phase of the project, comprising just about 1,502 housing units.
This was contrary to the executive and parliamentary approvals, as well as the facility and Escrow Management agreements.
On December 21, 2016, according to the facts, the Chief Director, Yakubu, again reviewed the original and revised the (restated) agreement and signed them (second and his revised or restated), without recourse to Parliament.
That led to a further reduction in the scope of works to 1,412 housing units at a revised price of $181 million, and extended the completion period to July 31, 2017, the prosecutor alleged.
It has emerged that the government of Ghana paid $179 million to the company that executed the Saglemi Housing Project despite only $64 million worth of work on the ground.
This was revealed by the Attorney General in a fact sheet submitted to the Accra High Court and sighted by www.ghanaweb.com.
The Attorney General details that the contractor managed to work on 651.75 acres of land as opposed to the 2172 acres of land for which the entire project was billed for.
The court papers revealed further that of the 668 housing units executed by the contractors, not a single of them is suitable for residential use.
“Even though a total amount of $196,428,891.66 has been spent on the Saglemi Affordable Housing Project, with the contractor having been paid $179,904,757.78, investigations revealed that the cost of works executed on the site, including consultancy services, is about $64,982,900.77. Only 651.75 acres of land out of the 2,172 acres of land made available by the MWRWH to the contractor for the project has been developed.
“Investigations further revealed that only 668 housing units were completed by the contractor. These houses are however not habitable. Not a single house under the project has been sold and the facility remains unpaid, resulting in huge financial loss to the Republic of Ghana.â€
Five persons including forme Works and Housing Ministers Collins Dauda and Kwaku Agyeman Mensah have been charged with 52 counts of willfully causing financial loss to the state over their roles in the execution of the Saglemi Housing deal.
The Executive Chairman of the company that undertook the project, Andrew Clocanas and former Chief Director of the Ministry Alhaji Ziblim Yakubu and Tetteh Angelo, the majority shareholder of Ridge Management Solutions DWC-LLC are the other accused persons.
Managing Director of the Accra Digital Centre, Kofi Ofosu Nkansah has called on the general public to disregard claims that the Saglemi housing project has been abandoned.
His reaction follows concerns that the Akufo-Addo-led government has left the project to rot in the bush despite the country having a huge housing deficit.
According to the Accra Digital Centre MD, engineers are already on-site working on structural integrity tests for the project. He, therefore, advised all and sundry to dismiss reports that state otherwise.
“Update on Saglemi Housing Project: The Minister of Works and Housing, Hon. Francis Asenso-Boakye has toured the Project site and given assurance work will soon commence to complete the project.
Engineers are already on-site doing structural integrity tests. Ignore the noise from Hassan Ayariga and othersâ€, he wrote on Facebook.
The Ministry of Works and Housing has said it will ensure the completion of work on the abandoned Saglemi housing project started by the previous government.
The sector Minister, Francis Asenso-Boakye during his tour at the facility said despite the difficulties associated with the project, strategic investors are being sought after to help complete it, including all uncompleted housing projects across the country.
While describing the Saglemi project as a great idea, he said the conception, design, and implementation of the project were not well executed, “and that is why we find ourselves in this situationâ€.
Mr Asenso-Boakye, however, said he was committed to putting the past behind him and charting a way forward by ensuring the early completion of the project and others across the country through innovative means of raising funds.
The Saglemi housing project was initially planned to deliver 5,000 housing units. However, the scope of works was revised, which has become a subject for police investigation.
Eleven (11) aggrieved contractors of the affordable housing project in Effiduase in Koforidua in the Eastern region have commenced a suit against government over re-awarding the contract to different contractors without paying them for work done on the project since 2007.
The contractors are Kwality construction Investment Ltd, Josam Company Ltd, Osajoe Enterprise, Udaway Company Limited and Okoampa Ltd.
The rest are Malkana Enterprise, Bomaf Ventures, Umaco Ltd, Soadjei Construction, Kwadjei Construction and Agya Agyena Ltd.
The reliefs being sort by the contractors are; Payment of retention, payment of additional works after last payment certificate, compensation, damages, interest on payment and punitive cost.
A letter of notice of intention to commence suit written to the Minister of Works and Housing, Atta Akyea and State Housing Company, by Lawyer of the aggrieved constructors intercepted by Starr News, explained that, about 18 contractors signed an agreement with the Ministry of Works and Housing individually on July 10, 2007 to commence work on the Affordable Housing Project in Koforidua Effiduase, an intervention by then John Agyekum Kufuor-led government to provide cost-effective housing projects to Government workers.
They were awarded contract letters dated June 8, 2007.
The aggrieved Contractors say, they embraced the project with zeal and worked to reach various stages of completion. However, due to inability of the Ministry to supply the needed materials for the project, same was stalled, having sank in their own resources to reach the present stage of the project.
The Contractors said, “not long ago at site meeting in Koforidua with the President of the Republic and subsequently, in another meeting with the Deputy Minister of the Ministry in Accra, my clients were given assurance to exercise patience as the Government was sourcing for funds to continue with the project, but nothing was heard on the matter againâ€.
The letter continued that “surprisingly, however, it has come to the notice of my clients that the project has been re-awarded to the state Housing Company without any notice or reference to my clients “.
Some of the contractors told Starr News their properties have been seized by their bankers for defaulting loan payment.
The financial difficulty has also ruined their families.
One of the affected contractors bedridden with stroke is struggling to get money to seek healthcare.
