Cost of Ghana card project not bloated – NIA replies Minority

The National Health Insurance Authority has challenged claims by the Minority in Parliament that the cost of the Ghana Card Project has been bloated.

The Minority is demanding a forensic audit into activities of the National Identification Authority  accusing the NIA of bloating the 1.2 billion dollars contract sum for the Ghana card exercise.

Concluding the debate on President Nana Akufo-Addo’s State of the Nation Address, Minority Leader, Haruna Iddrisu, said the 1.2bn dollars budgeted for the exercise defies every similar international exercise.

“Mr. Speaker, it is reported that the national ID card will cost the state 1.2 billion US dollars. Where is the NIA getting its finances from? That would mean that a country of this population is using 42 dollars per person to do its ID card, India with its population didn’t do an ID card even for 20 dollars.

“We are calling for a forensic audit into the financing of the NIA and how a colossal amount of 1.2 billion will be dedicated to the national Identification exercise.”

Reacting to the claim, the NIA in a statement said: ” The NIA wishes to, once again reiterate its earlier position on the subject and to categorically deny that the project cost is bloated. Specifically, the NIA states that: The National Identification System (NIS), project contract is being executed under a Public Private Partnership (PPP) agreement between NIA and Identity Management Systems (IMS), a subsidiary of the Margins Group of companies”.

It added: “The cost of the project is jointly shared by the parties. NIA’s component of the contract sum is $124 million, which caters for operations in both Ghana and abroad to register and issue smart, biometric, chip-embedded ID cards to all Ghanaians aged 15 years and over, and 2-dimentional bar code cards to all Ghanaians under 15 years old. The cost of the project to IMS is $169 million. All subsequent costs will be covered by proceeds from the project over the contract term of 15 years. 3. Unlike other traditional contracts, IMS will not be given any money by the Government of Ghana”.

Below are details of the statement by the NIA

COST OF THE GHANA CARD PROJECT IS $124 MILLION:

REACTION TO MINORITY LEADER’S DEMAND FOR FORENSIC AUDIT OF NIA CONTRACT

The attention of the National Identification Authority (NIA) has been drawn to a story on Ghanaweb titled “Minority demands forensic audit in $1.2bn Ghana Card contract” attributed to the Minority Leader in Parliament, Hon. Iddrisu is quoted as demanding a forensic audit into the activities of the NIA and accusing it of bloating the contract sum for the Ghana Card project.

The NIA wishes to, once again reiterate its earlier position on the subject and to categorically deny that the project cost is bloated. Specifically, the NIA states that:

1. The National Identification System (NIS), project contract is being executed under a Public Private Partnership (PPP) agreement between NIA and Identity Management Systems (IMS), a subsidiary of the Margins Group of companies.

2. The cost of the project is jointly shared by the parties. NIA’s component of the contract sum is $124 million, which caters for operations in both Ghana and abroad to register and issue smart, biometric, chip-embedded ID cards to all Ghanaians aged 15 years and over, and 2-dimentional bar code cards to all Ghanaians under 15 years old. The cost of the project to IMS is $169 million. All subsequent costs will be covered by proceeds from the project over the contract term of 15 years. 3. Unlike other traditional contracts, IMS will not be given any money by the Government of Ghana.

Source: Ghana/Starrfm.com.gh/103.5FM

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