The Minister for Roads and Highways, Kwame Governs Agbodza, has revealed that the government currently owes road contractors arrears amounting to GH₵40 billion.
In an interview on Accra-based Citi FM, Mr. Agbodza outlined the financial difficulties the government faces in addressing the debt accumulated under the previous Akufo-Addo administration.
He praised President John Dramani Mahama and Finance Minister Dr. Cassiel Ato Forson for settling GH₵5 billion of the arrears within just a few months of assuming office.
“Without a doubt, we’re close to about GHC40 billion, which was the work done and unpaid across the road sector. The GH₵5 billion is the biggest single payment made to contractors at a particular time in recent history.
“We’re doing this without borrowing from international sources. I think President Mahama and the Finance Minister should be commended for this commitment,” he stated.
Mr. Agbodza emphasized that the payments were made without resorting to external borrowing, describing the move as a reflection of prudent fiscal management and effective leadership.
The Roads Minister reaffirmed the government’s dedication to gradually clearing the remaining arrears owed to contractors nationwide.
“It’s only through prudence and effective leadership that we have been able to do this. We owe lots of money, but we will pay as much as the government can raise and from other sources,” he added.
His remarks follow concerns from the Ghana Chamber of Construction Industry (GhCCI) over delays in releasing funds for outstanding Interim Payment Certificates (IPCs). The Chamber cautioned that the continued delays were endangering thousands of jobs and key infrastructure projects across the country.
Source: Adomonline