The Ministry of Finance has started auctioning some 86 Hyundai galloper vehicles that were abandoned at the Institute of Local Government Studies at Madina in Accra for almost two decades.
Government had in the past paid a huge judgement debt as a result of disagreements over the procurement of the vehicles.
Only eleven of the Gallopers were at the site when Citi News’ Ann-Shirley Ziwu visited on Thursday, confirming reports that the auctioning had started.
Government paid judgement debt to the importers — Africa Automobile Limited — due to disagreements between previous governments on the payment to the importers.
The vehicles were ordered by the Rawlings administration and arrived in the country in 2001.
The Hyundai Galloper vehicles were expected to be distributed to the various Municipal, Metropolitan and District Assemblies but the then John Agyekum Kufuor administration which came into office after the 2000 election failed to do so citing absence of a written contract in the purchase of the vehicles.
It is however unclear how much the cars were sold for considering the many years of deterioration spanning a period close to 2 decades.
As at 2012, the amount demanded by the importers was in a region of $1.5 billion with reports suggesting a daily interest of GHc50 on each of the 86 vehicles.
After the controversy and the blame game between the NDC and the NPP, the NDC in 2018 under former President John Dramani Mahama decided to auction them after a valuation test was carried out.
Ann-Shirley Ziwu reported that only 11 of the vehicles were left at the Institute of Local Government Studies.
Citi News could however not confirmed whether the vehicles were being sold for as little as GHc200 and GHc500 as has been reported in a section of the media.
According to some valuation experts, the vehicles have lost 80% of their street value and could be only sold out at a scrap value of 20%.
The cars have been rusty having suffered the consequences of the weather for nearly 2 decades.
Some have their parts missing and seats worn out.
Source: citinewsroom.com
