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The CEO of Zoomlion has debunked media reports of a supposed termination of $74m bin distribution contract the company had with government.
The Ministry of Local Government and Rural Development, on November 7, 2016 entered into five separate contracts with five subsidiaries of the Jospong Group to provide the litter bins and bin liners.
The companies, per the contract, were to supply and distribute the items within 12 months after signing the contract.
However, media reports said the two-year contract was terminated by the Local government ministry for non- performance.
Addressing the media Thursday, Mr. Joseph Siaw-Agyepong explained the contract elapsed following government’s inability to raise funds for the supply of the litter bins to households across the country.
He added the company has since secured a facility from Ecobank for a similar exercise known as “One bin, one household.”
“It [the contract] was under investigation and the CID investigated it and what came out of it, nothing,” the waste management boss told the media.
He added: “Because we have passion for doing this business and solving problems, we went to Ecobank and they gave us 10 million. Naturally it isn’t that we didn’t perform, government didn’t have money to pay. Not that it was terminated, the contract elapsed by itself after two years.
“We didn’t supply because government didn’t have money. There is no contract termination and those headlines are mischievous,” Mr. Agyepong said.