Lack of Formal Contract for Revenue Collection with Fairlift Company Limited at Nkoranza South Municipal Assembly

The review of procurement records disclosed that the management of Nkoranza South Municipal Assembly outsourced the collection of revenue from Tigo, Vodafone Ghana, Airtel, MTN, ACT Towers Ghana limited, Ghana Post and Cocoa Board property rates and other revenue sources to Fairlift Company Limited without signing a contract to indicate the terms and conditions of the engagement.
The Management relied on verbal agreement with the Company and paid a total amount of GHȼ17,751.57 being 30 percent commission on total revenue of GHȼ59,171.24 collected by the Company during the year 2019.
The lapse could be detrimental to the Assembly in the event of any litigation resulting from unforeseeable disagreement.

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Nkoranza South

Citation Source
Report Department Category Date
2019 Audit Report Procurement Compliance Issues 1 Jan. 2020

Citation Impact

The absence of a signed contract for outsourcing revenue collection to Fairlift Company Limited exposes the Assembly to potential legal risks and disputes, jeopardizing the proper handling of funds and the terms of the revenue collection arrangement.

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