The World Bank has slashed by half funds it allocated to Ghana Post for the modernization of 50 post offices under the e-transform project.
The slashing of the money from 3.5 million dollars to 1.7 million dollars according to the Communications Ministry, was due to delays by management of Ghana Post to justify the cost of the e-services projects.
Ghana Post is one of the beneficiary state companies to receive funding from the World Bank under government’s e-transform project to revamp its operations electronically by 2020.
Following the slashing of the money, only 25 post offices will be refurbished which will include the acquisition of computers and computer accessories to provide e-services.
“When the World Bank gives you money you need to justify it. The justification from Ghana Post kept delaying, the documentation and the likes. So at the Bank’s mid-year review, it decided we needed funds for other projects which include connectivity and the likes,” Sandra Frimpong, Communications Specialist at the Ministry of Communication explained to Citi Business News.
Other beneficiary state institutions under the e-transform project include the Ghana Procurement Authority, the Meteorology Department, the Judicial Service and Parliamentary service.
“They agreed then that instead of proposing 50 post offices initially, 25 were in good shape so let’s concentrate on the other 25 that needed the modernization,” said Sandra Frimpong.
The e-transform projects is an initiative by government with funding from the World Bank.
It began in 2013. Although it is scheduled to end in 2020, it is not clear if government can meet that target since work is yet to begin in all the beneficiary companies.
Ghana Post has for years not been able to make profit. The new management earlier told Citi Business News that it had made proposals to government seeking support to revamp its operations.
The Communications Ministry believes the World Bank funded e-transform project will help boost the operations of the company.