This follows a huge public outcry over financial impropriety and malfeasance on the part of the companies.
The contracts that have been cancelled include Rlg Communication’s training module, Asongtaba Cottage Industry & Exchange Programme (ACI&EP) and the Better Ghana Management Services Limited, a subsidiary of Jospong Group, the parent company of Zoomlion.
The decision to cancel the contracts was reached following a series of meetings between government and the parties, a letter signed by the Chief Director of the Ministry of Youth and Sports, Alhaji Abdulai Yakubu, and addressed to the service providers, said.
The letter dated January 9, 2014 read in part, “I am directed to convey to you, Government’s decision to discontinue or terminate the contract with immediate effect”.
“You are hereby requested to continue to have engagements with the Attorney General’s Department and Ministry of Justice on your liabilities to GYEEDA and ensure the refund of same to Government”, it added.
Serialised investigative report by Joy News had indicated some of the contracts with GYEEDA were not only awarded under dubious arrangements but also lacked value-for-more assessment.
The report of an investigative committee set up by the Minister for Youth and Sports, Elvis Afriyie Ankrah, confirmed some of the reports.
The committee recommended the cancellation of some contracts it said should never have been awarded in the first place.
The report which was presented to President John Mahama by Mr. Afriyie Ankrah at the Flagstaff house on Tuesday, July 7, 2013 also recommended that the companies refund some money to the state.
The President assured Ghanaians that his Government will, “…in the next few days, weeks, implement those recommendations in a very firm manner”.
But the government did not immediately abrogate the contracts as recommended by the committee, prompting accusations that it was complicit in the financial malfeasance.
In response to the accusations, the government said due diligence was being done to ensure that when the contracts are cancelled, the affected companies will not have recourse to the courts.
Mr. Afriyie Ankrah Tuesday confirmed to Myjoyonline.com that some contracts with Zeera, Rlg Communications and Jospong Group have been cancelled.