COST OF METRO MASS BUSES WAS NOT INFLATED, MEDIA REPORTS FALSE – DAEWOO EXPLAINS

KELVIN TAYLOR HAD CLAIMED THAT GOVERNMENT, THROUGH GH-DAEWOO MOTORS LIMITED, PROCURED 50 DAEWOO BUSES FOR THE MMT AT A TOTAL OF $8. 75M, SUGGESTING THAT EACH BUS COST $ 175,000.


Zyle Daewoo Commercial Vehicle, a Korean-based manufacturer of Daewoo branded buses has debunked reports suggesting that the company overpriced the cost of its buses in a deal with the Government of Ghana in 2017, ABC News can authoritatively report.


According to the company, the price of the buses it supplied to the Metro Mass Transit Company (MMT) were not inflated, contrary to reports suggesting that the buses were sold for US$175,000 per unit instead of US$ 75,000.


IN A LETTER DATED OCTOBER 15, 2019 AND ADDRESSED TO THE CEO OF GH-DAEWOO MOTORS GHANA LIMITED, MR OFORI POKU, THE KOREAN COMPANY STATED CATEGORICALLY THAT THE BUSES IT SUPPLIED TO ITS GHANAIAN DISTRIBUTOR WERE INDEED SOLD AT $175,000 PER UNIT, WHICH IS THE ACTUAL COST OF THE MODEL REQUESTED.

The company’s reaction follows a social media publication masterminded by one Kelvin Talylor suggesting that government “deliberately” overpriced the cost of some Daewoo buses it procured for the MMT as his checks had revealed that the price of the model of buses on the market was way lower than the amount paid by the government.


Kelvin Taylor had claimed that government, through GH-Daewoo Motors Limited, procured 50 Daewoo buses for the MMT at a total of $8. 75m, suggesting that each bus cost $ 175,000.


He however claimed that his checks at Alibaba.com had proved otherwise as the same model of buses was sold at $75,000, suggesting that some elements fraud had been perpetuated against the state.


Meanwhile, in a letter dated October 15, 2019 and addressed to the CEO of GH-Daewoo Motors Ghana Limited, Mr Ofori Poku, the Korean company stated categorically that the buses it supplied to its Ghanaian distributor were indeed sold at $175,000 per unit, which is the actual cost of the model requested.


“The attention of Zyle Daewoo Commercial Vehicle has been drawn on a social media publication to the effect that our representative in Ghana GH-Daewoo has been implicated for overpricing the cost of our bus models GL6127HK and GDW6121HK for US$175,000 each instead of US$75,000 as it purportedly shown on Alibaba website. We would like to state for the followings in order to understand the situation more correctly.


“We, Zyle Daewoo HQ state categorically that we sold the models GL6127HK and GDW6121HK to our Distributor GH DAEWOO MOTORS LTD in Ghana at US$175,000 per unit,” it said.


The company added that “we strongly issue a disclaimer and repudiate the claim by Kelvin Taylor that our models GL6127HK and GDW6121HK should have been sold for $75,000.”

It explained that the Guilin GDW6121HK model displayed on Alibaba “is just sample price and lowest and standard price in order to tempt the customer,” adding that “there is no specification fixed. It is an idea price with no adding option price.”


It explained that the price range of the bus models as captured on Alibaba.com does not connote a universal cost of the bus as there will be differences by specification and price with option.


“Our exporting models to GH (GDW6121HK and GL6127 H K) includes many Korean parts such as E/G, TM, Clutch etc. We, Zyle Daewoo HQ supplied to Guilin for assembly. Meanwhile, the Alibaba price is based on only all Chinese components.


“There is no mention about Warranty condition, and training and PDI, parts and dealer margin for additional cost to be included,” it further explained.


Meanwhile, a former Security Coordinator of the Metro Mass Transit Company, Lawal Laah Fuseini, has petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate what he describes as corruption and misappropriation of funds in the purchase of the buses for the MMT.


The petitioner wants a comprehensive investigation into the matter and culpable officials involved in the transaction sanctioned.


Read Daewoo’s letter below:


Credit to Source: ABCNewsgh.com

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