You are here: HomeNews2020 12 13Article 1132223

General News of Sunday, 13 December 2020

Source: Starr FM

Affordable housing project contractors to sue gov’t over non-payment since 2007

Eleven (11) aggrieved contractors of the affordable housing project in Effiduase in Koforidua in the Eastern region have threatened commenced a suit against the government over re-awarding the contract to different contractors without paying them work done on the project since 2007.

The contractors are Kwality construction Investment Ltd, Josam Company Ltd, Osajoe Enterprise, Udaway Company Limited and Okoampa Ltd.

The rest are Malkana Enterprise, Bomaf Ventures, Umaco Ltd, Soadjei Construction, Kwadjei Construction and Agya Agyena Ltd.

The reliefs being sort by the contractors are; Payment of retention, payment of additional works after last payment certificate, compensation, damages, interest on payment and punitive cost.

A letter of notice of intention to commence suit written to the Minister of Works and Housing, Atta Akyea and State Housing Company, by Lawyer of the aggrieved constructors intercepted by Starr News explained that, about 18 contractors signed an agreement with the Ministry of Works and Housing individually on July 10, 2007, to commence work on the Affordable Housing Project in Koforidua Effiduase, an intervention by then John Agyekum Kufuor led the government to provide cost-effective housing projects to Government workers.

They were awarded contract letters dated June 8, 2007.

The aggrieved Contractors say, they embraced the project with zeal and worked to reach various stages of completion. However, due to the inability of the Ministry to supply the needed materials for the project, the same was stalled, having sunk in their own resources to reach the present stage of the project.

The Contractors said, “not long ago at site meeting in Koforidua with the President of the Republic and subsequently, in another meeting with the Deputy Minister of the Ministry in Accra, my clients were given assurance to exercise patience as the Government was sourcing for funds to continue with the project, but nothing was heard on the matter again”.

The letter continued that “surprisingly, however, it has come to the notice of my clients that the project has been re-awarded to the state Housing Company without any notice or reference to my clients “.

Some of the contractors told Starr News their properties have been seized by their bankers for defaulting loan payment.

The financial difficulty has also ruined their families.

One of the affected contractors bedridden with stroke is struggling to get money to seek healthcare.

Join our Newsletter