The Ministry of Roads and Highways has confirmed that over GHS5 billion has been disbursed to contractors nationwide following a detailed audit and va
The Ministry of Roads and Highways has confirmed that over GHS5 billion has been disbursed to contractors nationwide following a detailed audit and validation of outstanding Interim Payment Certificates (IPCs).
The move, according to Minister Kwame Governs Agbodza, was part of efforts to prevent financial leakages and ensure only legitimate claims were honoured.
The announcement follows months of growing discontent among contractors, who had accused the government of failing to meet payment timelines for completed road projects.
The Ghana Chamber of Construction Industry (GhCCI) had, in a letter dated September 29, 2025, expressed concern that the government had yet to fulfil President John Dramani Mahama’s earlier assurance that all arrears owed to contractors would be cleared by July 2025.
According to the Chamber, the delay had plunged several contractors and suppliers into financial distress, threatening ongoing projects and putting thousands of jobs at risk.
Many firms were reportedly unable to service bank loans or continue work on critical infrastructure nationwide.
Responding to these concerns on the Citi Breakfast Show on Tuesday, October 14, Kwame Agbodza disclosed that the ministry undertook a rigorous review of all payment certificates before releasing funds.
He said the validation process, conducted in collaboration with the Auditor-General’s Department, uncovered discrepancies between the amounts initially claimed and the verified sums.
“As of Friday, October 10, the Finance Minister had begun releasing payments amounting to GHS5 billion out of the more than GHS21 billion owed to contractors,” Agbodza stated.
“If we had rushed the payments without proper checks, the state would have lost significant sums. The audit revealed that some of the figures presented during the transition were inflated.”
He further explained that the ministry’s findings showed a substantial increase in the total arrears compared to what was declared by the previous administration under former President Nana Akufo-Addo. “At the time of transition, we were told contractor arrears stood at GHS21 billion, and road fund indebtedness at GHS5.1 billion. Today, those figures have climbed to over GHS8 billion,” he revealed.
Kwame Agbodza also disclosed that some road contracts—valued at over GHS 120 billion—had been awarded without proper commencement certificates or funding sources, raising further concerns about accountability.
“Some contractors never even appeared on site after being awarded contracts in 2022,” he noted, adding that the Mahama administration was determined to restore order to the sector.
The minister said his office had held engagements with the construction industry and received renewed commitments from contractors to resume stalled projects.
“Government has demonstrated good faith by beginning payments for verified projects. For instance, over GHS800 million has been released for the Ofankor project, and the contractor has since returned to the site,” he said.
The Roads Minister emphasized that the government’s current strategy aims to balance fiscal prudence with development needs, ensuring that funds are directed toward genuine, value-for-money projects.
He assured contractors that the Ministry of Finance was committed to progressively clearing the remaining arrears as outlined in the 2025 Budget Statement presented to Parliament.
COMMENTS