Zoomlion Ghana Limited Defends YEA Contract Amid Public Backlash and Calls for Reform

Zoomlion Ghana Limited Defends YEA Contract Amid Public Backlash and Calls for Reform

Zoomlion Ghana Limited, a leading waste management company, has issued a detailed press statement addressing mounting criticism over its contractual engagement with the Youth Employment Agency (YEA). The statement, released on April 30, 2025, and shared via X on May 1, seeks to clarify the company’s role, financial arrangements, and contributions to Ghana’s sanitation sector amid accusations of exploitation and mismanagement.

Background of the Controversy

Zoomlion’s partnership with the YEA dates back to 2006, initially under the National Youth Employment Programme (NYEP), which later evolved into the YEA. The program engages young Ghanaians, referred to as beneficiaries, to perform public cleansing activities such as street sweeping, waste collection, and drain desilting. According to the press statement, the YEA is responsible for recruiting beneficiaries, while Zoomlion manages and supervises their work, providing tools, training, and operational support.

Attached image of press release

The contract has come under scrutiny following media reports and discussions on social media platforms, with critics like journalist Manasseh Azure Awuni alleging that Zoomlion exploits workers by retaining a disproportionate share of funds. Under the current agreement, each beneficiary is allocated GHS 850, of which GHS 258 goes to the worker as an allowance, while Zoomlion retains GHS 592 as a management fee. This fee covers equipment such as brooms, gloves, and reflective jackets, as well as administrative costs.

Zoomlion’s Defense and Clarifications

In its statement, Zoomlion emphasizes that it does not control the recruitment or allowance rates for beneficiaries, which are determined by the YEA. The company notes that it has consistently advocated for higher allowances, proposing an increase to GHS 420, though the YEA countered with a GHS 300 offer, which remains under discussion.

Zoomlion also highlights the financial strain caused by delayed government payments, often forcing the company to pre-finance operations and claim interest on late reimbursements—a provision outlined in the contract to mitigate losses.

Beyond the contract, Zoomlion touts its broader contributions to Ghana’s sanitation sector. The company operates 36 waste treatment facilities, including material recovery plants and liquid waste treatment centers, such as the transformation of the notorious Lavender Hill into a state-of-the-art facility.

Zoomlion claims to have created over 200,000 jobs, including 6,000 core positions and 30,000 roles for tricycle riders, while empowering youth through skills training in logistics, safety, and waste management. Additionally, the company supports academic initiatives, sponsoring 120 students to study environmental sanitation abroad and facilitating study tours for YEA beneficiaries to countries like Russia and Thailand.

Public Reactions and Criticism

Despite Zoomlion’s efforts to clarify its role, the press statement has sparked mixed reactions on X. Some users expressed frustration with the company’s operations and the contract’s structure. @krabbMarley called the allocation of funds—GHS 258 to workers and GHS 592 to management—“wicked,” while @Zymzeema criticized Zoomlion for paying workers “meager” salaries while its executives “drive big cars around town.”

@NsemHa went further, accusing Zoomlion of “ripping the country off” and suggesting it may be a front for money laundering, a sentiment echoed by @SDAmegadze, who likened Zoomlion’s operations to past National Service Scheme (NSS) scandals.

Others focused on the contract’s design. @niiwillyjr labeled it a “masterclass on HOW NOT TO WRITE A CONTRACT,” arguing that tools and remuneration should be clearly separated. @bernard_inccom dismissed the press statement, urging Zoomlion to “pay [workers] on time with good money” instead of issuing lengthy justifications.

Broader Implications for Waste Management in Ghana

Zoomlion’s statement also highlights its role in addressing Ghana’s sanitation crisis, a persistent challenge in the country. The company’s investments in infrastructure, such as waste treatment plants and recycling facilities, have earned praise from figures like the Minister of Local Government, Chieftaincy, and Religious Affairs, Hon. Ahmed Ibrahim, who commended Zoomlion’s sanitation efforts in West Africa.

Additionally, Zoomlion claims international recognition, with 19 African countries seeking to replicate its waste management model and Ghana gaining a foothold in the carbon market through the company’s operations.

However, the controversy surrounding the YEA contract raises broader questions about transparency, accountability, and fairness in public-private partnerships. Critics argue that the current arrangement disproportionately benefits Zoomlion while leaving workers underpaid and vulnerable to delayed payments. The company’s reliance on government funding, coupled with persistent delays in disbursements, underscores the need for systemic reforms in how such programs are structured and financed.

Looking Ahead

Zoomlion has expressed its commitment to continuing operations despite the expiration of its contract with the YEA, framing its efforts as an investment in public health and environmental sustainability. The company also welcomed scrutiny, stating it operates within a “strict compliance framework” and is open to improving its processes.

As Ghana grapples with unemployment and sanitation challenges, the Zoomlion-YEA saga underscores the complexities of balancing corporate interests with public good. Whether Zoomlion can address public concerns and secure a renewed contract remains to be seen, but the debate has reignited calls for greater transparency and equity in the country’s waste management sector.

For further inquiries, Zoomlion has directed stakeholders to contact its Corporate Communications Directorate at [email protected].

editor

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1 Comment

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  • Collins Ntiful , May 2, 2025 @ 8:31 am

    Interesting times ahead

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