E.T. Mensah, Minister of Employment and Social Welfare
The Government of Ghana is repossessing all the 15 sites it handed over to STX Korea for the construction of the botched affordable housing project.
According to the Minister of Employment and Social Welfare, E.T. Mensah, government has set up a Housing Project Management Committee with a “mandate to receive and review all proposals on housing.”
Speaking at a press briefing in Accra on Wednesday, Hon. Mensah said the decision to close the chapter on the STX housing deal was in Ghana’s best interest.
“Government is therefore considering all available options to ensure that the interest of sovereign Ghana is not compromised in anyway under this deal,” he said. “In due course, government will present to you the specific steps that are being taken to ensure that the housing required for our security personnel is provided.”
The 30,000 affordable housing project was meant to provide accommodation to the country’s security agencies. However, as a result of boardroom wrangling between the parties overseeing the project – STX Korea and GKA Airports Company Limited (STX Ghana) – the deal has hit a dead-end.
Both President J.E.A Mills and his vice John Mahama have expressed their disappointment over the stalled project that was aimed at solving the accommodation crisis of the military and police.
Hon. Mensah told the press that “As a first step, Housing Project Management Committee has been set up with a mandate to receive and review all proposals on housing. The committee has come out with guidelines and criteria for selecting potential investors.”
He added: “So far the ministry has received 40 proposals and four have been identified as credible.”
However, the minister did not say whether government intends to seek legal action against the partners in the STX deal for breaking their side of the bargain, although government has fulfilled its side of the deal.