Contractor threatens to sue KMA… Over construction of New Tafo market

REPORTS REACHING The Chronicle indicate that the ongoing construction of an ultra-modern market at New Tafo, by the Kumasi Metropolitan Assembly (KMA), may suffer a jolt, following the decision by a construction company to sue the Assembly for breach of contract.

Snippets of information gathered by the paper, indicate that the management of ALKABOAT Construction Limited, were contemplating dragging the KMA to court for failing to honour its part of an agreement reached between the two parties in 2004, towards the construction of the ultra-modern market.

Reports say the management of the Accra-based construction company would be seeking an interim injunction, restraining any firm from going ahead with the construction of the modern market, until all outstanding issues are cleared.

According to reports gathered by the paper, Alkaboat Construction entered into an agreement with the Assembly for the construction of the market in the year 2004, for which the KMA was expected to provide land title and permit for construction works to begin, after the company had paid GH¢10,000, through the Amalgamated Bank, as commitment fees towards the agreement.

The paper has also sighted a Memorandum of Understanding (MOU) reached between the two parties on May 12, 2004, which was signed on behalf of the KMA by then Metro Chief Executive Officer, Mr. Maxwell Kofi Kumah, and the Managing Director of Alkaboat Construction Limited, on behalf of the firm.

In the said agreement, the KMA was supposed to provide the construction firm with the land title and building permit before the company could commence business.

But the Assembly, according to reports, failed in its responsibilities to provide the documents, thus resulting in the company incurring huge financial losses.

Source within the construction firm, told the paper that the company had incurred a lot of damage as a result of the failure on the part of the Assembly to provide the requisite documents, and said the firm had agreed with a Finnish Consulting Group (FCG), which was going to provide funds through the Finnish International Development Agency (FIDA) for the construction of the market.

Meanwhile, the former KMA Boss, and now Member of Parliament (MP) for the Asokwa constituency, Mr. Maxwell Kofi Jumah, confirmed to the paper in a telephone interview that the Assembly entered into the said the agreement with the construction firm, but said the KMA could not provide the land title and the permit because it was not within the power of the Assembly at that time.

He explained that during his tenure of office, the Assembly invited offers from interested parties for the development and expansion of existing markets at New-Tafo, Bantama and Asafo, in order to provide alternate places for hawkers who would be affected by the decongestion exercise.

Mr. Jumah said he was very much aware that Alkaboat Construction Limited presented a proposal, including a design of the New-Tafo market, and said subsequent to that, the Assembly entered into an MoU with the company for the construction of the market, but quickly added that as at the time he was leaving office as the Metropolitan Chief Executive (MCE), work had not begun, because of certain issues which were beyond the ability of the Assembly.

Meanwhile, solicitors of Alkaboat Construction Limited, Kofi Addo and Associates in Kumasi, has confirmed to the paper it was in the process of filing a writ in court on behalf of its clients.