By Prince Ahenkorah
After months of mounting pressure from the construction sector, Ghana’s Ministry of Roads and Highways has confirmed the release of GHS5 billion to contractors—part of a broader effort to contain ballooning arrears and restore credibility to the government’s infrastructure commitments.
Roads Minister Kwame Governs Agbodza disclosed the payments on 14 October, following a forensic validation exercise conducted in collaboration with the Auditor-General’s Department.
The review uncovered significant discrepancies between contractor claims and verified entitlements, raising fresh questions about procurement discipline under the previous administration.
At the time of transition, the Akufo-Addo government had declared contractor arrears at GHS21 billion and Road Fund liabilities at GHS5.1 billion.
Agbodza now says those figures have surged past GHS28 billion, with some contracts valued at over GHS120 billion awarded without commencement certificates or funding sources. “Some contractors never even appeared on site after being awarded contracts in 2022,” he noted.
The announcement comes amid growing unrest in the sector. The Ghana Chamber of Construction Industry (GhCCI), in a letter dated 29 September, warned that delays in clearing arrears had pushed firms into financial distress, jeopardising ongoing projects and threatening thousands of jobs.
Many contractors were reportedly unable to service loans or maintain operations, despite President Mahama’s earlier pledge to settle outstanding payments by July 2025.
Agbodza defended the delay, arguing that rushing payments without verification would have exposed the state to significant financial losses. “If we had rushed the payments without proper checks, the state would have lost significant sums,” he said on the Citi Breakfast Show.
The GHS5bn release includes GHS800 million earmarked for the Ofankor project, where contractors have since resumed work. The Roads Ministry has also held consultations with industry stakeholders, securing commitments to restart stalled projects under tighter oversight.
The move is being read as part of the Mahama administration’s broader effort to reassert control over a sector plagued by opaque contracting and fiscal indiscipline.
With the 2025 Budget Statement pledging progressive clearance of arrears, the government is attempting to balance development imperatives with fiscal restraint a delicate act as it seeks to rebuild trust with both contractors and voters.
Whether the payments will be enough to stabilise the sector remains to be seen. But for now, the release signals a shift from rhetoric to action and a warning to contractors that the days of unchecked invoicing may be over.