CONTRACT DOCUMENT

BETWEEN

LA NKWANTANANG-MADINA MUNICIPAL
ASSEMBLY
AND

MELCHIA INVESTMENTS LIMITED

AGENCY CONTRACT FOR

BUSINESS OPERATING PERMIT REVENUE

COLLECTION SERVICES

February 2019
 CONTRACT AGREEMENT

THIS AGREEMENT is made on the …………day of

………………………………............. between the LA NKWANTANANG-MADINA
MUNICIPAL ASSEMBLY of Post Office Box M130, Madina in the Greater Accra
Region of the Republic of Ghana, acting by its authorized representative (hereinafter
called “THE ASSEMBLY”) which expression shall where the context so admits or
requires include his successors-in-office, agents and assigns of one part and
MELCHIA INVESTMENTS LIMITED of Adjrigano Accra, in the Region aforesaid
being represented by its authorized representative (hereafter called “THE AGENT”)
which expression shall where the context so admits or requires include his
successors-in-title, agents and assigns of the other part.

WHEREAS under the Assembly’s Establishment Instrument and other relevant

statues, the Assembly has the authority, either directly or through authorized agents
to;
a) collect data on Enterprises and Businesses
b) rate Enterprises and Businesses for Business Operating Permits (BOP)
c) and also collect Business Operating Permits (BOP) revenue from Enterprises
and Businesses for development within its area of authority hereinafter
referred to as (‘Services’) .

AND the Assembly believes that this arrangement will tremendously enhance its
revenue mobilization efforts in respect of BOP of Enterprises and Businesses, the
effect of which is to strengthen, provide and maintain the necessary infrastructural
services and facilities that will facilitate and sustain economic growth as well as
improve the socio-economic welfare of the general public and the rate payer.

The Assembly, in furtherance of the enforcement of the said regulations, is desirous

of appointing a qualified Agent to provide the said Services; and

The Agent has also presented to the Assembly that it has the requisite expertise,
human and technical resources to provide the said Services,

The Assembly has agreed to grant franchise in respect of the Services stated above to
the Agent upon the terms and conditions set forth in this Agreement.

NOW THIS AGREEMENT WITNESSES AS FOLLOWS:-

1. APPOINTMENT
1.1 THE ASSEMBLY hereby appoints MELCHIA INVESTMENTS LIMITED as
the Authorized Agent to partner with the La Nkwantanang-Madina
Municipal Assembly to collect revenue on Business Operating Permits
(BOP) of Enterprises and Businesses through an effective and efficient rate
administration AND also update data on the revenue items.

1.2 The specific area and revenue items assigned to you for the collection of BOP
Revenue of Enterprises and Businesses is specified in the attached Appendix
marked Appendix 1 and Appendix 2 which are integral part of this
agreement

1.3 No part of this agreement shall be construed by the Agent to mean the
collection other revenue from other areas and revenue items, fees and
permits without express authorization by the Assembly

2. DURATION AND RENEWAL

2.1 This Agreement shall remain in force for a period of one (1) year; starting
from the date the contract is executed to the end of the financial year.

2.2 Subject to satisfactory performance, the Contract may be renewed by the

Assembly of at the end year and in each case upon such terms and conditions
as may be agreed by the parties until terminated in the manner provided in
this Agreement.

3. SCOPE OF SERVICE

3.3 The Agent shall serve the La Nkwantanang-Madina Municipal Assembly as

a Revenue Collection Agent to collect revenue on BOP of Enterprises and
Businesses within the jurisdiction of the Municipality using approved bills
generated by the Assembly ;
3.4 The Agent shall keep and update records on the Enterprises and Businesses
within the Municipality and report monthly to the Assembly
3.5 The Agent shall enforce the collection of all revenue due the Assembly using
all avenues including court action at the cost of Agent
3.6 This Agreement relates to and covers all BOP of Enterprises and Businesses
located and operating within the boundaries of the La Nkwantanang-Madina
Municipal Assembly;
3.7 The Agent shall perform the services between 8:00 am and 5:00 pm daily
excluding Sunday and Public Holidays unless otherwise specifically directed
in writing so to do;
4. ENFORCEMENT OF RATES

4.1 Where the Enterprises and Businesses are located within the jurisdiction of
the Assembly, the Agent shall collect the approved rates from the respective
owners or companies in accordance with the Fee-Fixing Resolution or for the
particular year, and where an owner of the specified Enterprise and Business
fails or refuses to pay the specified amount, the defaulting owner shall be
given a notice on the default payment.
4.2 Where a notice is served on the owner of BOP of Enterprises and Business for
defaulting, the approved fine determined by the Assembly in its Fee-Fixing
Resolution for the particular year shall be applied according to the mode of
payment stipulated in Section 4 of this Agreement.
4.3 Where the owner of a BOP of Enterprises and Business refuses or fails to pay
after being served with a notice, the Agent shall hand the matter over to the
Assembly for an appropriate legal action.
4.4 The schedule of fees as agreed upon before the commencement of this
Agreement shall be reviewed periodically in the Assembly’s Fee-Fixing
Resolution or Fee-Fixing Guidelines from MLG&RD to reflect the prevailing
economic trends.
4.5 Agent shall compile a schedule of all defaulters and furnish to Assembly by
31st October of every year and the Assembly reserves the right to mobilize
revenue and carry out enforcement based on the defaulters list starting
November 15th of every Year.
4.6 In the event that Assembly through its own means collect revenue during
revenue mobilization and enforcement, that revenue shall not be credited to
the Agent.

5. MODE OF COLLECTION AND PAYMENT TO THE ASSEMBLY

5.1 The Assembly shall generate and provide Bills and Demand Notices BOP of
Enterprises and Business that are rateable and same given to Agent to serve.
Only Authorized Bills and Demand Notices shall be served to Enterprises and
Businesses
5.2 The Agent shall use the Assembly’s authorized receipt booklets duly issued
from the office of the Municipal Finance Officer.
5.3 The Agent shall in addition to the Authorized Receipt Book Use the Point Sale
Device which has been approved and authorized for the collection of revenue
5.4 The Agent shall collect and receive from a person or company liable to pay
rates in the area specifically assigned to him and issue authorized receipts
from the GCR and the BOP Device
5.5 The Agent shall pay the amounts of money collected to the Assembly or its
designated Bank Accounts and agents within 24 hours of collection. Under no
circumstance shall Agent keep any money collected on behalf of the Assembly
for more than 24 hours
5.6 The Agent shall provide weekly reports of revenue mobilized and activities as
well as make its books available for inspection anytime at the request of the
Assembly.
5.7 The Agent shall provide update of data on Enterprises and Businesses and
also capture newly identified ones to aid in the Billing of the Enterprises and
Businesses

5.8 Collection of Revenue

i The Revenue Agent shall assist the client to mobilize and collect revenue
using personnel approved by the client.
ii The Agent may make a written request for the Assembly to make available
Revenue Collectors who shall be remunerated by the Agent .
iii All Revenue Collectors shall be bonded before they can commence work and
shall be under the authority of the Assembly.
iv The revenue collection shall be done with consideration of the following;
v All revenue collectors shall use the General Counterfoil Receipts (GCR) and
Tickets provided by the Assembly in addition to other receipts generated for
payment
vi The Revenue collectors may use handheld Point of Sale (PoS) Devices
vii Each revenue collector shall be assigned specific areas of operation and
specified items of revenues to be collected. These areas are specified in the
schedule Divisions and Block Schedule attached to this Agreement
viii Revenue collectors shall be monitored and managed by the client with the
Revenue Agent Providing Technical Support to the collectors
ix Agent shall be assigned revenue monthly Targets and also targets per
Divisions and Blocks
x All Revenue Collectors shall be assigned to Revenue Supervisors and they
shall report to the assigned revenue supervisor
xi Revenue Collector shall keep counterfoils of bills and complete Bill Service
forms and submit same to the Assembly after serving the Bills to Rate Payers
xii The revenue Collectors shall only collect fee approved by the Assembly as
captured in the appropriate Fee Fixing Resolution
xiii All Revenue Collectors shall pay all revenue collected on behalf of the
Assembly to designated bank accounts within twenty four hours (24hrs) of
receipt of revenue.
xiv All revenue payment effected through third parties and other digital channels
must be lodged into designated accounts and reports submitted to the
Assembly within 24 hours
xv Revenue Agent shall submit to the Assembly returns on all revenue collected
and payments made to designated bank and channels to the Assembly on
every first working day of the ensuing week.
xvi In the event of objections and inaccuracies on the Bills, the agent shall return
the bill to the Assembly within 24 hours for replacement of rectification.
6. OBLIGATIONS OF THE ASSEMBLY

6.1 The Assembly shall provide Bills and Demand on BOP of Enterprises and
Business to the Agent
6.2 The Assembly shall pass an Annual Fee-Fixing Resolution to specify fines,
charges and rates to be exacted under this agreement and put in place
measures reasonably required to give full effect to this Agreement.
6.3 The Assembly shall provide a map or a legal document showing its boundary
demarcations to ensure that the Agent operates within the confines of their
assigned areas.
6.4 The Assembly shall arrange and also bear the full cost of organizing
stakeholder’s meetings as and when necessary to educate rate payers.
6.5 The Assembly shall provide assistance to the Agent to enforce collection
6.6 The Assembly shall provide authorized receipt books to Agents and inspect
them weekly or as and when required
6.7 The Rate Demand Notices shall be signed by both the Municipal
Coordinating Director and the Municipal Finance Officer of the Assembly.

7. OBLIGATIONS OF THE AGENT

7.1 At the commencement of the Agreement, the Agent shall register with the
Assembly and obtain a Business Operating Permit which shall be renewed at
the beginning of every year.
7.2 The Agent shall operate under the laws and regulations of the Assembly as
well as the Country and shall exercise due diligence, care and precaution in
the provision of the services specified under this Agreement.
7.3 Agent s shall collect revenue solely based on bills and demand notices issued
by the Assembly and signed by Authorized officers
7.4 Agent shall undertake Data Collection and update as part of the assignment
shall include the following
a. Conduct a survey of on BOP of Enterprises and Businesses within the
municipality with the view to classify them according to their
appropriate categories for rating purposes.
b. The Assembly shall provide comprehensive data requirements,
however data shall consist of Name of Owner, Contact Phone , Billing
Address, Category of Business and Size of Business
c. All data on BOP of Enterprises and Businesses collected during the
execution of this contract shall remain the property of the Assembly
7.5 Undertake public education/stakeholder’s forum on BOP of Enterprises and
Businesses the Municipality.
7.6 Train key personnel of the Assembly in the use of systems and technology
deployed by the Agents
7.7 The Agent shall submit weekly returns to the Assembly in addition to books,
records and documents at the end of each month.
7.8 Designated Officers authorized by the Assembly shall be given access to
books, records and documents.
7.9 Under no circumstances shall direct expenses be made from revenues
collected

8. MONITORING

8..1 The activities of the Agent as specified under the Agreement shall be subject
to performance monitoring by such officers as shall be designated by the
Assembly and the Agent shall cooperate fully with these officers;
8..2 The Agent shall allow the Assembly or its designated officers to have access
at all times to inspect work being carried out, under the Agreement, all
relevant books, records and documents maintained by the Agent in respect of
its operations.
8..3 Agent shall be assigned revenue monthly Targets and also targets per
Divisions and Block
8..4 Performance monitoring shall generally include activities such as prior
inspection of the data being used in the provision of the services, verification
of actual receipts from rate-payers and record verification of payments
affected to the Assembly.
8..5 The Agent shall submit to the Assembly Monthly reports in a format
acceptable to the Assembly.
8..6 The Agent shall, at the request of the Assembly, attend monthly or periodic
meetings where operational and other issues of mutual interest may be
discussed.
8..7 Poor revenue Mobilization performance as per the contract constitute
grounds for termination of contract

9. REVENUE AGENT PERSONNEL

9..1 The Revenue Agent shall employ and provide such qualified and experienced
Personnel and Sub- Revenue Agent as are required to carry out the Services.
The titles, agreed job descriptions, minimum qualifications, and estimated
periods of engagement in the carrying out of the Services of the Revenue
Agent Key Personnel are described in Appendix 3.
9..2 The Agent may make a written request for the Assembly to make available
Revenue Collectors who shall be remunerated by the Agent.
9..3 Except as the Client may otherwise agree, no changes shall be made in the
Key Personnel submitted and approved and collectors. If, for any reason
beyond the reasonable control of the Revenue Agent , such as retirement,
death, medical incapacity, among others, it becomes necessary to replace any
of the Key Personnel, the Revenue Agent shall provide as a replacement a
 person of equivalent or better qualifications upon submission of name and
bonding of the replacement .
9..4 If the Client finds that any of the Personnel have;
a. committed serious misconduct or have been charged with having
committed a criminal action, or
b. have reasonable cause to be dissatisfied with the performance of any of
the Personnel, then the Revenue Agent shall, at the Client’s written
request specifying the grounds thereof, provide as a replacement a
person with qualifications and experience acceptable to the Client.
9..5 The Revenue Agent shall have no claim for additional costs arising out of or
incidental to any removal and/or replacement of Personnel.

10. REVENUE AGENT ACTIONS REQUIRING CLIENT’S PRIOR APPROVAL

10..1 The Revenue Agent shall obtain the Client’s prior approval in writing before
taking any of the following actions:
a. entering into a subcontract for the performance of any part of the Services,
b. appointing such members of the Personnel not listed by name in
Appendix C, and
c. any other action that may be specified in the Contract
10..2 The Agent shall not assign its responsibilities under the Agreement except
with the prior written consent of the Assembly.

11. DOCUMENTS PREPARED BY THE REVENUE AGENT TO BE THE

PROPERTY OF THE CLIENT

a. All revenue data ,bills , plans, drawings, specifications, designs, reports,

other documents and applications submitted by the Revenue Agent under
this Contract shall become and remain the property of the Client, and the
Revenue Agent shall, not later than upon termination or expiration of this
Contract, deliver all such documents to the Client, together with a detailed
inventory thereof.
b. The Revenue Agent may retain a copy of such documents and software.
Restrictions about the future use of these documents, if any, shall be specified.

12.PAYMENTS TO THE REVENUE AGENT

12..1 The Agent shall be paid commission in lieu of revenue collection. A

commission of 15% shall be paid upon submission of returns and
subsequently request for payment.
13. INDEMNITY

13..1 In the performance of the services under this Agreement, the Agent acts as
the Agent of the Assembly and shall not be held liable for any offence that
may arise as a result of carrying out the services, unless such liability arose
out of the negligence of the Agent , its servants or workmen.
13..2 For the avoidance of doubt, the Agent shall be responsible for all its negligent
acts of omission or commission and any liabilities arising there from, and
shall indemnify the Assembly against any claims, expenses or liabilities
incurred by the Assembly.

14. FORCE MAJEURE

14.1 Definition

If the performance of this Agreement or any obligation hereunder is restricted or

interfered with by reason of any circumstance generally known as force majeure, the
party so affected upon giving prompt notice to the party, shall be excused from
performance to the extent of the prevention, restriction or interference but the party
so affected shall use its best endeavors to avoid or remove the causes of non-
performance.

14.2 No Breach of Contract

14.2.1 The failure of a party to fulfill any of its obligations under the contract shall
not be considered to be a breach of, or default under, this contract in so far as
such inability arises from an event of force majeure, provided that the party
affected by such an event:
a. Has taken all reasonable precaution, due care and reasonable alternative
measures in order to carry out the terms and conditions of the Contract: and
b. Has informed the other party as soon as possible about the occurrence of such
event.

14.3 Extension of Time

Any period within which a party shall pursuant to this contract complete any action
or take, shall be extended for a period equal to the time during which such party was
unable to perform such action as a result of force majeure.
 14.4 Notice

Any notice required to be served under this Agreement shall be sufficiently served if
delivered at the registered offices of either party or sent by registered post to the last
known address or official electronic mail of either party.

15.TERMINATION
15.2 In the event of non-compliance with the obligations accepted by the Agent to
be performed, or unsatisfactory performance contrary to the provisions of this
Agreement, the Assembly shall be at liberty to terminate this Agreement
upon giving the Agent One (1) month prior notice in writing of such
intention.
15.3 Prior to the determination of this Agreement as in the foregoing provision, the
Assembly shall have given a written notice to the Agent to rectify the default
and the Agent shall have neglected, failed and/or refused to do so.
15.4 The following shall constitute specific breaches that can form the basis of
termination of this contract:
a. Refusal to submit books for examination, auditing and inspection
b. Refusal to return GCR 3 days upon request in writing
c. Collusion with rate payers and other third parties to undercut rates
d. Refusal to bank all revenue collected after more than 48 hours
e. Direct expenditure without written authorization from the Assembly
f. Instances of under-carboning
g. Collection of Revenue over and above amount stated on the Bill
h. Refusal to issue GCR to rate payers
i. Refusal to provide data records and documents upon demand from the
Assembly after three reminders
15.5 Either party may terminate this agreement by giving the other one (1) month
prior notice in writing of such intention.
15.6 Terminations shall be without prejudice to such payments or claims as may
be due from one party to another.
15.7 Upon Termination, the Agent shall return all data, records , documents , GCR
, Bills, Demand Notices, legal briefs and any other property or information in
possession of the Agent acquired through the execution of this contract.

16.SETTLEMENT OF DISPUTES

15.1 Amicable Settlement

The parties shall use their best efforts to settle amicably disputes arising out of or in
connection with this Agreement or the interpretation thereof.
 15.2 Right of Arbitration
Any dispute between the parties as to matters arising pursuant to this Agreement,
which cannot be amicably settled within 30 days after receipt by one party’s request
for such amicable settlement, may be referred by either party to arbitration agreed
upon by the party in accordance with the Arbitration Act, 1961 (Act 38).

15.3 Waiver of Breach

The waiver by a party of a breach of any provisions of this Agreement shall not
operate or be construed as a waiver of any subsequent breach by either party.

17.LAW GOVERNING AGREEMENT

This agreement, its meaning, interpretation and the relations between the parties
shall be governed by the applicable laws of Ghana.

17.1 Fairness and Good Faith

The parties undertake to act in good faith with respect to each other’s right under
this Agreement and to adopt all reasonable measures to ensure the realization of the
objectives of this agreement.

17.2 19.0 Operation of the Agreement

The parties recognize that it is impractical for this Agreement to provide for every
contingency which may arise during the life of this Agreement and the parties
hereby agree that it is their intention that this Agreement shall operate fairly as
between them and without detriment to the interest of either of them, and that, if
during the period of this Agreement either party believes that this Agreement is
operating unfairly, the parties will use their best efforts to agree on such action as
may be necessary to remove the causes of such unfairness.
Any contingency, which arises after the execution of the contract, shall be annexed
as agendum to this Agreement.

IN WITNESS WHEREOF the parties hereto have hereunder set their respective
hand and seal the date and year first above written.
 LA NKWANTANANG – MADINA MELCHIA INVESTMENTS LIMITED
MUNICIPAL ASSEMBLY

By (signature): [_____ _______ ]

By (signature): [_____ _______ ]

Name: [ KLU ]
Name: [HON. JENNIFER DEDE AFAGBEDZI]

Title:
Title: MUNICIPAL CHIEF EXECUTIVE
Date: [ ]
Date: [ ]

WITNESSES

LA NKWANTANANG – MADINA MELCHIA INVESTMENTS LIMITED

MUNICIPAL ASSEMBLY

By (signature): [_____ _______ ]

By (signature): [_____ _______ ]
Name: [ KLU ]
Name: [CHARLES ASHALLEY DJANE)]
Title:
Title: MUNICIPAL COORDINATING
DIRECTOR
Date: [ ]
Date: [ ]