Tuesday, 19 August

Gov’t yet to recover $6m from Smart Infraco over E-Govt infrastructure project

Business
Mohammed A. Sukparu

The Ministry of Communications and Digitalisation has disclosed that it has not yet recovered any of the funds owed by Smart Infraco Limited, the contractor engaged for the E-Government Infrastructure Project.

The update was presented during a recent committee session of the Public Account Committee (PAC), where officials outlined the financial obligations and recovery efforts relating to the contract.

According to records, the government initially signed the agreement in 2020 with Libera Ghana Limited, which later transferred its rights and obligations to Smart Infraco.

Under the terms, the contractor was required to pay annual advances to support the operationalisation of the E-Government Infrastructure.

The payment schedule stipulated US$2 million in 2020 and US$1 million annually from 2021 to 2024, bringing the total outstanding amount to US$6 million.

Auditors have since recommended that the Ministry pursue full recovery of the funds, including accrued interest at the prevailing bank rate.

However, the Director-General of the National Information Technology Agency (NITA) confirmed that no payments had been made to date.

Since assuming office in March 2025, NITA wrote to the contractor demanding payment, but Smart Infraco denied owing the amount.

The matter has since been referred to the Attorney-General for legal advice.

Clarifying the contractual relationship, officials explained that the agreement was directly between the Ministry and Smart Infraco, with NITA playing only an indirect role.

Despite several engagement meetings, negotiations with the contractor stalled, prompting the escalation of the case to legal authorities.

 

The Deputy Minister for Communications, Mohammed A. Sukparu,  further confirmed that, beyond referring the issue to the Attorney General, the Ministry had held multiple meetings with Smart Infraco without reaching any resolution.

The Government is now awaiting legal direction on the next steps.

Source: Classfmonline.com/Havilah Kekeli