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Would this case qualify for Causing Financial Loss?
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A VARI tractor at work
A VARI tractor at work
 
 
 
 
 
 
 
Hundreds of VARI multipurpose mini and compact tractors purchased by the Ministry of Food and Agriculture in 2006 could soon become waste, if the needed spare parts are not shipped into the country.

The Ministry of Food and Agriculture in 2004 entered into a purchase agreement with Czech-based KNIGHTS a.s. to purchase 1000 VARI tractors worth about €10 million.

ASEMPA NEWS has learnt that the local agent for the company managed to purchase the required quantity in Czech, but the government has not been able to raise funds to cater for the entire quantity.

This compelled the supplier to ship only 500, waiting for government to pay the amount for the remaining 500 before the second batch could be shipped.

Another problem is that the supplier did not supply spare parts during the first shipment since it was supposed to be included in the second batch. This could mean that, the 500 VARI Multipurpose Mini and Compact Tractors being used in Ghana currently, may not survive if the second badge does not come.

ASEMPA NEWS´ investigations reveal that, the remaining 500 tractors specially made for the tropical weather cannot be sold in Europe. Moreover, the company is paying interest on a loan facility it took from CITI Bank to facilitate the deal. Meanwhile, the manufacturers say they will not supply the spare parts to Ghana, if government refuses to pursue the contract.

When ASEMPA NEWS contacted the Agricultural Engineering Services Directorate (AESD) where the tractors were parked, over 200 had already been distributed to farmers in various parts of the country.

Director of the AESD, Ing. Joseph Kwesi Boamah said it is inaccurate for one to say that government is not pursuing the contract, explaining that the Ministry ran out of funds, a situation which made it difficult for it to order the shipment of the remaining 500 tractors.

He however said the value for the remaining tractors which is about €5 Million, has been included in the ministry’s budget proposal for the year 2009 which he hopes, would be approved by government to enable them pursue this agreement.



Source: Asempa FM




       

 
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