Wi-Fi for Schools: Report that gov’t paid a service provider GHS56m for no internet in schools inaccurate, erroneous

The Ministry of Education (MoE) has issued a press release to address a Fourth Estate report that alleged that government has paid a service provider, Lifted Logistics, formerly Busy Internet Ghana a whopping GHS56 million despite failing to provide schools with internet under government’s Wi-Fi for Schools Programme.

In a report on Monday, June 3, the Fourth Estate revealed that although 53 Senior High Schools did not enjoy Free Wi-Fi between 2021 and July 2023, government paid the service provider.

Responding to the allegation, the Ministry of Education said the Fourth Estate Report which suggests a failure in service delivery and misuse of public funds, is inaccurate and does not represent the facts.

“Service compensation for the payment of any monthly cost is prorated as required by the terms of the contract. Specifically, the contract provides that the supplier shall be compensated on a pro-rata basis. The effect is that any downtime up to and exceeding half of a particular month will not be paid for.

“This means that despite the approved amount of recurring expenditure, the Ministry does not pay a pesewa if services does not reach the 50% (less than half of the month) threshold in a particular month,” the Ministry explained.

The release said the Ministry of Education, under the leadership of the Hon. Dr. Yaw Osei Adutwum, is committed to ensuring value for money in all its initiatives and reassures the public of the government’s dedication to improving education to achieve socioeconomic transformation.

The Ministry wants the public to disregard what it describes as an erroneous impression created by the publication from the Fourth Estate Media and any such.

Below is a copy of the Ministry of Education's response to the Fourth Estate.

PRESS RELEASE
THERE IS NO SCANDAL AT THE MINISTRY OF EDUCATION REGARDING WI-FI PAYMENT

The Ministry of Education wishes to address the claims made in a recent report by The Fourth Estate Media regarding the Wi-Fi for Schools Programme. The report, which suggests a failure in service delivery and misuse of public funds, is inaccurate and does not represent the facts.

For purposes of clarity, the facts of the matter are as follows:

BACKGROUND
In line with the Government's Education transformation agenda, the Ministry of Education undertook a significant initiative to boost internet connectivity in educational institutions in 2019. This programme extended internet access to Senior High Schools, Colleges of Education, Regional and District Education offices across Ghana, thereby enhancing learning, administration, and research capabilities.

CONTRACT OVERVIEW
The Ministry secured Public Procurement Authority (PPA) approval for two phases of the project.

Phase one (1), in August 2019, to engage Busy Internet Ghana Limited for Wi-Fi provision in 717 Senior High Schools at a cost of Ghs 59,909,658.00. This covered supply, installation, and maintenance of hardware devices, with a recurring sum of dedicated internet not exceeding GHS 2,673,013.44.

Phase two (2) of the project expanded the scope to include all 16 Regional Education Directorates/offices, 46 Colleges of Education, and 260 District Education Offices of GES at a cost of GHS 24,500,000.00 plus a recurring monthly dedicated internet of an amount not exceeding GHS 3,700,000.00. The total contract sum amounted to GHC 84 million, covering hardware supply, installation, maintenance, training, and testing across 1,013 institutions (sites) including SHSs, Colleges of Education, Regional, and District Offices of Education.

In line with the review clause in the contract signed in 2019, an upward review of monthly recurring costs was approved by the PPA and capped to an amount not exceeding GHS 11,522,661.81 in 2023 due to the prevailing inflation, and foreign exchange rates.

Despite the approved amount of recurring expenditure, it is important to understand that the Ministry only pays for the accessible dedicated internet and not necessarily the total capped monthly cost.

WIFI FUNCTIONALITY
Wi-Fi functionality depends on multiple components, including routers, cables, and access points. Any malfunction in these components can affect service. Similarly, Wi-Fi access is primarily limited to specific areas within schools (library blocks, administration blocks, and ICT Laboratories).

PAYMENT
Service compensation for the payment of any monthly cost is prorated as required by the terms of the contract. Specifically, the contract provides that the supplier shall be compensated on a pro-rata basis. The effect is that any downtime up to and exceeding half of a particular month will not be paid for. This means that despite the approved amount of recurring expenditure, the Ministry does not pay a pesewa if services does not reach the 50% (less than half of the month) threshold in a particular month.

MONITORING MECHANISMS:
The Ministry employs various monitoring mechanisms, including reporting lines from ICT coordinators in schools, Wi-Fi monitoring tools, and a Network Operating Room. These measures aim to ensure timely detection and resolution of connectivity issues in the institutions nationwide. It also helps the Ministry to know how much of the service to pay within a particular month.

Additionally, the contract provides for a committee made up of MoE, GES, NaCCa and NCA to vet all invoices and certify before payment is made to Lifted Logistics Limited (formerly, Busy Internet).

There is also Validation Committee set up by the Minister for Education to equally vet all invoices before payment is made to the vendor. For instance, in February 2024, despite an invoice of GHC 6,498,827.90 submitted, the Ministry ended up paying GHC 3,637,569.20 after vetting.

TERMINATION OF CONTRACT
The Ministry upon evaluation is considering terminating aspects of the contract in schools that are experiencing satellite connectivity challenges, a situation which had been attributed to the failure of Lifted Logistics' Limited (formerly Busy Internet) to pay its providers.

CONCLUSION
The Ministry of Education, under the leadership of the Hon. Dr. Yaw Osei Adutwum, is committed to ensuring value for money in all its initiatives and reassures the Public of the Government’s dedication to improve education with the aim of achieving socioeconomic transformation.

The Ministry urges the public to disregard the erroneous impression created by this publication from the Fourth Estate Media and any such.