This TheFourthEstatereport sheds light on the critical issues surrounding the government contract awarded to Busy Internet, emphasizing the need for accountability and transparency in public procurement.
In 2018, Busy Internet, a failing internet service provider, found itself on the brink of collapse. Struggling to compete with industry giants, the company faced plummeting revenues, increasing liabilities, and growing staff discontent. Adding to its woes, Busy Internet owed millions of cedis in unpaid taxes and social security contributions.
When all seemed lost, Busy Internet’s fortunes appeared to change dramatically. The company was acquired by Lifted Logistics, and shortly after, it won a major government contract to supply Wi-Fi services to secondary schools and Ghana Education Service offices nationwide. This turn of events stunned staff, as Busy Internet was ineligible to bid for the contract due to its significant tax and social security arrears.
Despite lacking the necessary tax and SSNIT clearance certificates, Busy Internet secured the multi-million cedi contract through a sole-sourcing arrangement. A former employee, who wished to remain anonymous, confirmed the company’s lack of mandatory clearance certificates at the time. Additionally, Busy Internet was not registered with the Public Procurement Authority (PPA) as required, and the contract was awarded without parliamentary approval, violating Ghana’s Public Financial Management Act.
The Chief Executive of Aguila Holdings, Horpe Omotayo-Ojo, assured employees that their jobs were secure and that the company’s debts would be addressed. However, these promises were short-lived as layoffs ensued, and Busy Internet began installing connectivity devices in schools.
Interestingly, despite being chosen over major providers like MTN and Surfline Ghana Limited, Busy Internet subcontracted the service provision to MTN Ghana and AirtelTigo. While the Wi-Fi system initially worked, connectivity issues soon arose. A 2023 investigation by The Fourth Estate found that out of 50 schools visited, 48 had been without internet for several months, with complaints to Busy Internet going unresolved.
The initial project cost was GHS84.4 million, with a monthly recurrent cost of GHS6.4 million. However, financial records submitted to Parliament revealed that the Ministry of Education paid GHS56 million for inconsistent services. In 2023, the PPA approved an increase in the monthly cost to GHS11.5 million and allowed a name change from Busy Internet to Lifted Logistics Ghana, even though Lifted Logistics lacked an ISP license until February 2024.
Procurement consultant Collins Agyemang Sarpong highlighted that sub-contracting parts of a project is not uncommon, but the transfer of the contract to an unlicensed company like Lifted Logistics raised serious concerns. Despite these issues, the Ministry of Education paid GHS63.7 million to Lifted Logistics between December 2019 and December 2022, as per a leaked Economic and Organized Crime Office report.
Lifted Logistics, owned by Nigerian businessman Horpe Omotayo-Ojo, offers various technological solutions but lacked the necessary ISP credentials. Former employees raised concerns over the attempted license transfer, but the NCA confirmed that Busy Internet’s license had not been reassigned.
The Fourth Estate reached out to the PPA for clarification on approving a contract for an unqualified company and the subsequent cost increase but received no response. This case raises significant questions about the transparency and accountability of government procurement processes in Ghana.
The award of a crucial government contract to a financially unstable and unqualified company like Busy Internet, followed by its transfer to Lifted Logistics, underscores the need for stricter oversight and adherence to procurement regulations. As Ghana strives to improve its educational infrastructure, ensuring fair and transparent contracting processes remains paramount.
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