Ghana’s oil cash funded Ghc3.6m bus re-branding

The amount of Ghc3, 649, 000 that was used to re-brand 116 buses belonging to the Metro Mass Transit (MMT), was money from Ghana’s petroleum revenue.

This is according to the 2015 report by the Public Interest Accountability Committee (PIAC) which monitors the use of the country’s oil revenue.

According to Ghana’s Petroleum Revenue Management Act, 2011(Act 815) which was amended to (Act 893), 70% of the revenue is to be allocated into the Annual Budget Funding Amount (ABFA), whiles the 30% of it goes into the Petroleum Holding Fund.

Due to the non-existence of a national development plan, government is mandated to select five priority areas where the funds are to be expended.The priority areas included transport infrastructure, where government allocated an amount of Ghc41.799, 389. 39, out which the amount of Ghc3, 649, 000, was expended on re-branding the 116 buses.

A detailed pro-forma invoice for the re-branding of buses has revealed that stickers on each bus cost Ghc11, 000.

The pro-forma invoice dated 17th July 2015, from Smarttys Management and Productions and copied to the Ministry of Transport; put the total cost of branding for each bus at Ghc30, 420.00.

Smarttys Management and Productions is owned by Selassie Ibrahim, an actress cum entrepreneur and TV personality.

Meanwhile Citi News’ checks on the market prices for such services indicate that, the prices quoted by Smarttys, have been doubled in most cases, except for the amounts quoted for labor cost for spraying a bus, and labor cost for stickers.

Government has been criticized for spending such colossal amount on re-branding buses, at a time when the country is facing a difficult energy crisis among other challenges.

The buses, which are in the national colors of Ghana, have been embossed with the pictures of all Ghana’s former Presidents, and the current President, John Dramani Mahama.

Minority Leader in Parliament, Osei Kyei Mensah-Bonsu, has kicked against the expenditure and has demanded explanations from the Minister of Transport, which is to be given later.

Previously, the branding on the buses raked in money for the state as businesses used the space for advertisement.

– See more at: http://citifmonline.com/2015/12/17/ghanas-oil-cash-funded-ghc3-6m-bus-re-branding/#sthash.I5HXCPfz.dpuf