Government’s GHC35b indebtedness crippling construction sector – Cherry

Ghanaian road contractors are calling on the government to settle outstanding debts totaling GH?35 billion

They have cautioned that the construction industry is on the verge of collapse due to non-payment.

Speaking on the KeyPoints wih Alfred Ocansey, the Chief Executive Officer of the Ghana Chamber of Construction Industry, Emmanuel Cherry, described the dire financial strain on contractors, many of whom have abandoned projects due to lack of funds.

“As we speak, most contractors have parked from sites; they are not working. Some of them have been bedridden, others have lost properties they used as collateral to financial institutions,” he stated.

According to Mr. Cherry, the government owes over GH?15 billion in the Road Fund portfolio and approximately GH?20 billion in Government of Ghana (GoG) obligations. “If you put the two together on the road sector alone, we are looking at GH?35 billion,” he added.

The situation is further compounded by a GH?4.5 billion debt in the cocoa sector, worsening financial woes for businesses and workers dependent on the construction industry.

“If government should pay us today, the economy could have grown at least a bit, and balloon a bit higher than what we see today,” Mr. Cherry emphasized.

Contractors who took loans to finance projects are now struggling to repay them, with banks such as NIB and Fidelity bearing the burden of unpaid debts.

“The construction industry is a major player in Ghana’s economy. If we are not paid, the economy shrinks,” he warned, calling for immediate government action.

The post Government’s GHC35b indebtedness crippling construction sector – Cherry first appeared on 3News.

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