By Edward Dankwah
Accra, Aug. 5, GNA – Some contractors within the Ghana Chamber of Construction Industry (GhCCI) have appealed to the Government, through the Ministry of Roads and Highways, to expedite the payment of outstanding arrears owed them for road and construction projects executed under the previous administration.
The contractors said the Government owed them substantial amounts for works carried out across various sectors of the construction industry.
Speaking in an interview with the Ghana News Agency (GNA), they acknowledged ongoing efforts by the Government to settle the debts but expressed concern that payments made so far had benefited only a few contractors, leaving many others without compensation.
They also alleged that the leadership of the Chamber had not paid adequate attention to the concerns of affected members.
According to the contractors, the delay in payments has resulted in severe financial hardship, as reports of Government’s release of funds have prompted creditors, including banks and other financial institutions, to intensify efforts to recover outstanding loans and other obligations.
Responding to the concerns, Nana Opare Kwafo, Chairman of the GhCCI, said although the Government had begun settling debts owed to road contractors, a majority of contractors were yet to receive payment.
He said more than GH¢3 billion had been released to address arrears under the Ghana Road Maintenance Trust Fund, but noted that the amount represented only a fraction of the over GH¢10 billion owed to contractors and suppliers.
Nana Kwafo said there was a misconception that all contractors had been paid following the Government’s announcement of fund releases.
“Construction financing and payments are complex issues, and the concerns being raised by contractors are genuine. I am personally affected, but that does not mean that the government has not made any payments,” he stressed.
He explained that while payments were ongoing, many contractors were yet to benefit from the disbursement process. He added that the funds released had not been fully disbursed and remained inadequate compared with the total amount owed.
The GhCCI Chairman appealed to President John Dramani Mahama to intervene and ensure that the concerns of contractors received urgent attention, noting that many had secured loans from banks and suppliers to execute projects on behalf of the State.
He said delays in payments had worsened the financial difficulties of contractors, as suppliers of construction materials, including iron rods, cement blocks, sand and stones, together with financial institutions, had intensified debt recovery efforts following reports of Government payments.
Nana Kwafo described the situation as frustrating and humiliating for contractors who had completed projects but remained unable to meet their financial obligations due to delayed payments.
Drawing a parallel with the Government’s swift response to recent flooding incidents, he said contractors who had invested resources in executing State projects also deserved timely support.
“The government has demonstrated its willingness to address the issue, but more needs to be done to ensure that payments reach the majority of contractors who are still awaiting settlement,” he added.
He disclosed that the Chamber would engage its members to discuss the matter and consider appropriate measures to address the concerns being raised within the industry.
Nana Kwafo expressed confidence that the Minister for Roads and Highways would convey the concerns of contractors to the President for the necessary action to be taken.
GNA
Edited by Lydia Kukua Asamoah