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…over Non-Payment for work done
Pido Transport and Construction Enterprise; the Contractor who built one of the administration blocks at the Mampong Technical College of Education in the Ashanti Region has threatened to lock up the building because he has not been paid for two last two years since the project was completed.
Even though the contractor has since handed the facility over to the school for use all efforts to have his money paid him have proved futile, hence his decision to lock up the place.
According to documents sighted by ghananewsonline.com.gh, the project was initially awarded to Frimtim Ltd, with Star Assurance Company led providing insurance bond as guarantee for the contract.
However, Frimtim defaulted in its performance, as a result, the contract was duly terminated. Subsequently, Messrs Star Assurance, which granted the performance bond per the terms of guarantee, was asked to take over the project.
Star Assurance then engaged the services of Pido Transport, Trading and Construction Enterprise which completed the project within time and same handed over to the college on April 19, 2016.
Strangely however, certificates raised for the payment of the projects are yet to be honoured. Following the delay in the payment, the contractor’s bankers and other creditors have threatened to seize his house to defray the cost of the facility given towards the project. Meanwhile, interest on the loan keeps on rising by the day.
Not happy with developments, Rev. Dr. Nyuieko Avotri, Principal of the College in a letter dated September 14, 2017 appealed to the Ghana Education Trust Fund (GETFund) to, as a matter of urgency, consider payment of the outstanding balance to the contractor.
Meanwhile, fed up with the frustration in the payment of his claims, and threats from his creditors, Ahmed Mohammed, Managing Director of Pido Transport, Trading and Construction Enterprise has written to the Principal of the College to notify the school of his intentions to lock up the block.
In turn, the Principal, Rev. Avotri, in another letter dated January 23, 2017, has informed Star Assurance of the contractor’s notification letter, and charged them (Start Assurance) to facilitate payment.
“Since certificates are raised in your company’s name, we would appeal to you to expedite action to facilitate the payment of the outstanding balance,” the letter stated.
In a yet another letter to GETFund dated June 6, 2018, Rev. Avotri, stated that “We forward herewith a letter from Start Assurance Company on the above subject matter. We do confirm that the above-mentioned project has been fully completed by the contractor. The delay in payment had resulted in their creditors threatening legal action to retrieve all outstanding claims.
“They (the contractors) have in turn threatened to lock up the premises if their outstanding claims are not paid. It is in the light of the above that, as a beneficiary institution of the project we humbly appeal to your high office, as a matter of urgency to consider payment of the outstanding claim”.
Start Assurance, also in a letter dated June 6, 2018, to the Principal and copied the Director, Council for Scientific and Industrial Research admitted the undue delay in payment of the said balance, and the extent to which it has affected not only their finance, but also the
Inconvenience caused them by their creditors.
The letter urged the heads of these institutions to ensure that GETFund, as a matter of urgency settles this debt.
All efforts to get GETFund’s response on phone proved futile.
However, when Mr. Eldon M.A Otu, Chief Manager (Northern Sector) for Star Assurance was contacted, he stated that the matter could not be discussed on phone.
Lawyer Join the Fray
Meanwhile, Sarfo Gyamfi & Associates, Solicitors for the contractors, in a final letter dated June 25, 2018, demanding the payment, has warned Star Assurance that if by July 4 2018, it does not get the remaining balance paid in full, they will take legal action against them (Star Assurance).
“Sir, our client recons that the project was actually commissioned by GETFund but it was your outfit that contracted our client, hence you must make payment to us,” the letter indicated.
Source: S. O. Ankamah