Kwame Governs Agbodza, Minister of Roads and Highways, revealed that the government owes road contractors an estimated GH₵21 billion in arrears.
The sector minister blamed the widespread contractor pullout from project sites on the government’s protracted nonpayment of finished work during a news briefing on Tuesday, July 8.
He claimed that a large number of contractors were compelled to take out loans in order to pre-finance projects in the hopes of receiving payment.
However, ongoing activities were no longer viable due to the lack of timely payments.
“At the time of transition, we are told that the majority of road contractors were actually off-site simply because they did some work, raised a certificate, and were not paid. Some of them, as far back as 2018. Their certificates were not honoured, and so while they borrowed money, put in the work, and were not paid, it was not feasible for them to continue to work.
“At the time of transition, we are told that the amount of money owed to contractors is about GH₵21 billion. So you can imagine the scale of the problem we have in terms of why contractors are not on site,” Mr. Agbodza stated.
The current administration is taking proactive measures to address the problem, the minister reassured.
He disclosed that GH₵4 billion of the GH₵21 billion will be paid by the government so that contractors may go back to work.
“If you listened to His Excellency the President, yesterday he indicated that toward the end of this month, the Finance Minister will be taking steps to retire some of the debts owed to contractors so that they can go back to the site and complete the work. On record, we are intending to pay some GH₵4 billion towards retiring part of the GH₵21 billion from this month,” he reiterated.
Source: newsthemegh.com