Business News of Saturday, 2 August 2025

Source: classfmonline.com

Road contractors' unpaid debts claim lives amid financial strain - GPRCA

Road contractors at post Road contractors at post

The Ghana Progressive Road Contractors Association (GPRCA) has sounded the alarm over the devastating effects of delayed government payments, asserting that prolonged financial hardship has led to the deaths of several members.

In an interview on Accra-based Adom FM, the Association’s Vice President, Hammond Larbi, disclosed that some contractors are still owed for projects completed as far back as 2017 and 2018.

“Some contractors are owed as far back as 2017 and 2018. A lot of them have died due to the financial challenges they are faced with,” Larbi lamented.

He explained that the situation has become dire, with banks threatening to seize properties over unpaid loans and contractors struggling to cope with severe economic pressure.

Larbi also accused the previous New Patriotic Party administration of practicing selective payment methods, claiming that funds, when released, were distributed unfairly.

“This previous government promised to pay us, but the problem is that when the money is released, about 10 contractors will be handpicked and given the money, while those undertaking road maintenance are not paid,” he alleged.

He added that many contractors’ certificates for completed work remain unattended in regional ministerial offices, further compounding their frustrations as debts continue to mount.

Meanwhile, the government has acknowledged the outstanding obligations.

Speaking at the Government Accountability Series in Accra on Wednesday, the Minister for Roads and Highways, Governs Kwame Agbodza, disclosed that the government currently owes road contractors over GH₵27 billion under the Road Fund and more than GH₵20 billion under the Government of Ghana (GoG) budget.

Larbi has therefore made a passionate appeal to the government to expedite payments and honor its commitments, warning that continued neglect threatens not only livelihoods but also the survival of Ghana’s local road construction industry.

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