The Defense Ministry is reported to have over spent about 9 million cedis more than expected on the construction of houses for the Ghana Armed Forces.
The Ministry spent 25 million cedis instead of 16 million, on the housing project. This was revealed at the Public Accounts Committee (PAC) sitting on Thursday.
The amount for the construction of the 18 houses which started in 2007, changed to Ghc25 million without any justification according to the 2011 Auditor General’s report.
The Ghana Armed Forces has subsequently explained that the new figures were as a result of structural changes and rates to the original plan.
The Head of Engineering at the Ghana Armed Forces, Colonel Isaac Nyarko, says his outfit cannot be blamed sorely for the differences. “What actually escalated the cost was the review rates. For instance in 2007, if I take a particular item like a reinforced concrete, the rate at the time was 130 per meter cube, today the rate is 370 per meter cube an increment of 284%.
There are some items which are even up to about 800%. So if you look at these increments over the period, you will realize that price changes have resulted in the escalation of the contract sum.”