The Roads and Highways Ministry has directed all contractors who abandoned project sites due to delayed release of funds to return immediately or risk being sacked.
This follows the release of some ¢800 million by government for the payment of arrears owed contractors last month.
Addressing a community durbar of chiefs and people at the Anyaa Sowutuom Constituency, Deputy Minister for Roads and Highways, Stephen Pambin Jalula, said the release of the monies to the contractors must be accompanied by a swift return to complete the work.
He said, "All the contractors who have left the site due to nonpayment should be back to site any moment from now.
"And let me add that if any contractor doesn’t come to the site after receiving payment, the engineers within the urban roads will write to them warning letter, and if they fail to come, their contracts will be terminated."
He, however, admitted that the progress of major road projects which started earlier in 2020 has stalled due to the delay in payment of contractors.
But with the inauguration of the road fund board and the subsequent release of the ¢800 million by government, work is expected to pick up again.
"From the beginning of the year, payment to contractors was not forthcoming. But as we speak now, government is paying and for that matter the road fund board has been set up about one month ago and has also started payment to contractors," he added.
The sector Minister, Kwesi Amoako Atta, had inaugurated the Road Fund Board earlier in August, assuring the immediate release of cheques after the completion of the necessary documentations.
The minister explained that the government had been settling its indebtedness to contractors for the past one-and-a-half months and expressed optimism that the contractors themselves would, in the next few months, appreciate efforts made to settle the payment, as a substantial amount had already been made been paid to some of them.
On the delayed payment, the minister indicated that most road projects were paid for by government of Ghana and the Road Fund, but unfortunately, the previous administration in 2016 used the fund as collateral and borrowed ¢1.3 billion from UBA.
The situation left the fund on its knees as the interest in the facility kept on increasing until the previous board, and other stakeholders took a bold decision and approached three banks to pre-finance the debt.
He added that “they were fortunate to be given a 12-months moratorium which helped the fund to begin making payments regarding its debts.”
Latest Stories
-
Boeing strike ends as workers accept new contract
31 mins -
GAF will not relent in its quest to counter external threats – GOC Southern Command
35 mins -
Election 2024: Bawumia reiterates commitment to promote sustainable mining practices
36 mins -
Ensign Global College promotes health and community well-being at Ngmayem Festival 2024
38 mins -
Bobrisky reveals reason for leaving Nigeria
1 hour -
Tiwa Savage discloses ‘craziest thing I’ve ever done for love’
1 hour -
US states worried about election unrest take security precautions
2 hours -
Modi condemns violence after Canada temple incident
2 hours -
Barcelona hit by new flood as rescuers search Valencia basement car park
2 hours -
Labadi Beach Hotel pays over GH¢16m as dividend to SSNIT
2 hours -
Elon Musk can keep giving $1m to voters, judge rules
2 hours -
Election must not divide us, government will protect each citizen – Akufo Addo
3 hours -
Novel way to beat dengue: Deaf mosquitoes stop having sex
3 hours -
Trial begins over beheading of teacher who showed Prophet Muhammed cartoon
3 hours -
‘See you soon’ – Bobrisky jets out of Nigeria
3 hours