The Minister of Roads and Highways, Mr. Governs Kwame Agbodza, has registered his displeasure about what he describes as unfair and lopsided contract terms involving a foreign contractor who was paid $30 million for road works after no work done.
The Minister during at interview at Joy fm, a local radio station in Ghana said the contract in question was signed under a suppliers’ credit agreement supported by the Indian Exim Bank.
He noted that such agreements usually allow foreign companies to bring in their own contractors and resources, but expressed concern about the conditions tied to the deal.
According to him, Ghana paid about 20 percent of the contract sum as mobilization to the contractor.
However, he claimed that even on the day a public ceremony was held to mark the start of work, some of the equipment on site did not belong to the contractor, raising concerns about their readiness.
Mr. Agbodza explained that under the agreement, if the contractor raised a second payment request and the government failed to pay within a specified time, the contractor could legally terminate the contract and leave with the funds already paid.
“This particular contract was written in such a way that we paid $30 million, but no work has been done so far. If they do not work up to that value, we will have to get our money back. No amount of meetings or conferences can change that” he said.
The Minister emphasized that while Ghana often entered into turnkey agreements due to limited financial resources, care must be taken to protect the country’s interests in such deals.
He called on professionals involved in the contract process, including lawyers and engineers, to uphold national interest and ensure that agreements signed are fair and beneficial to the country.
Mr. Agbodza stressed that the government would explore all legal means to either recover the funds or compel the contractor to deliver work equivalent to the amount paid.
By: Jacob Aggrey
