President John Dramani Mahama has officially terminated the long-standing contract between the Youth Employment Agency (YEA) and Zoomlion Ghana Limited, citing concerns over financial inefficiencies and unfair wage distribution.
The decision, announced on June 11, 2025, follows years of criticism regarding the contract’s structure and its impact on sanitation workers.
Background of the Controversial Contract
The YEA–Zoomlion agreement, which had been in place since 2006, allocated GHS850 per sweeper for sanitation services. However, under the contract terms, Zoomlion retained GHS600, leaving sweepers with only GHS250 per month.
This arrangement sparked widespread criticism, with investigative journalist Manasseh Azure Awuni leading calls for its cancellation due to alleged corruption and mismanagement.
In response to these concerns, President Mahama confirmed that the contract would not be renewed, stating that the government would redirect funds to ensure higher wages for sweepers.
Government’s New Approach
The termination of the contract is expected to result in cost savings, which will be used to increase the salaries of sanitation workers. The government has proposed a direct payment system, eliminating the need for a third-party contractor. This move is aimed at ensuring transparency and fair compensation for workers.
Additionally, the government plans to introduce competitive bidding for sanitation contracts, allowing local assemblies to oversee operations rather than relying on a single private entity.
Public and Industry Reactions
The decision has been met with mixed reactions. While many sanitation workers have welcomed the prospect of higher wages, others have expressed concerns about job security and operational efficiency following the contract’s termination.
Zoomlion Ghana Limited, which has managed sanitation services for nearly two decades, has yet to issue an official response. However, industry analysts predict that the company may seek legal action or renegotiate terms to remain involved in Ghana’s sanitation sector.
What’s Next?
With the contract officially terminated, the government is expected to roll out new policies to ensure a smooth transition for sanitation workers. The YEA will work closely with local assemblies to implement a direct payment system, ensuring that workers receive fair wages without intermediaries.
President Mahama’s decision marks a significant shift in Ghana’s approach to public sanitation management, signaling a move toward greater accountability and efficiency in government contracts.
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