Zoomlion says YEA contract ended naturally, ready to bid under new sanitation model

Zoomlion Ghana Limited has clarified that its contract with the Youth Employment Agency (YEA) under the Street Sweeping Programme ended naturally in September 2024 and was not cancelled or terminated by the government.

The company made the clarification in a statement issued on Sunday, June 15, 2025, in response to public discussion following a letter from the Office of the President dated June 11. The letter referenced the expired contract and outlined changes to how future sanitation services will be awarded.

Zoomlion explained that the contract was originally expected to expire in March 2024 but was granted a six-month extension, making September 2024 its final end date.

“The contract has therefore reached its natural conclusion and expired,” the statement said. “Contrary to claims in some media reports, this expiration does not constitute a termination or cancellation of the agreement by the government, and that is not what the Office of the President stated.”

The company added that the letter from the Presidency did not refer to any cancellation of its other agreements with the YEA or within the wider sanitation programme.

According to Zoomlion, the government’s position represents a decision not to renew a completed contract, not a punitive action against the firm.

Zoomlion stated that it is willing to participate in new competitive processes for future sanitation contracts.

“We are well prepared and eager to actively participate in any forthcoming competitive procurement processes,” the company said.

The letter from the Presidency, signed by Secretary to the President Dr Callistus Mahama, instructed the Chief Executive Officer of the YEA to end the national-level sweeping contract and instead introduce a district- or region-based procurement model.

It also directed an audit of all payments made to Zoomlion after the expiry of the contract, with instructions to recover any unauthorised payments.

The Presidency’s action followed a petition by investigative journalist Mr Manasseh Azure Awuni, who had questioned the legality of payments made after the contract expired and raised concerns about the performance of aspects of the agreement.

According to the letter, the government is also considering plans to increase the wages of sanitation workers using savings from the new contract model.

In its statement, Zoomlion said it supports better conditions for sweepers and other workers, describing them as central to improving public health and cleanliness. The company also said it continues to value transparency in its operations.

Zoomlion has worked with successive governments in Ghana on sanitation-related initiatives for close to two decades.

It stated that the 2019 YEA street sweeping contract was awarded through a competitive process, and that it is open to the government’s plans to use open tendering for future contracts.

The company further clarified that the end of the street sweeping contract does not affect its other contracts in Ghana.

It also said its sanitation model has drawn interest from 24 other African countries, some of which have entered into formal agreements or studies with the company.

Zoomlion ended its statement by indicating its support for President John Dramani Mahama’s “RESET” agenda and restated its intention to continue working with the government and other partners to improve environmental management in Ghana.