Local contractors have impressed on government to pay all accumulated interests on all outstanding debts owed them.
They believe this will relieve their plight of meeting huge financial commitments to their respective banks.
The Chairman of the Construction sector of the Association of Ghana Industries (AGI), Rockson Kwesi Dogbegah remarked in an interview with Citi Business News that,
“Generally, I’m aware that government indicated that they will make available a 20% of all debts to be paid contractors and they will take time to pay the rest. Now they say by 2019 they intend to pay all of the debt. Beyond that one, it’s about compensation bills that government paid by way of paying interest on the delays and that is where the big challenge is.”
“Some contracts do not have the interest payment elements so it might be necessary for government to consider paying interest on the delays,” he added.
The Finance Minister, Ken Ofori Atta in his midyear budget review disclosed government will complete payments of all arrears owed contractors by 2019 after undertaking the necessary validation.
According to him, the settlement of the debts should afford some respite to meet other expenditure needs of the government.
A Deputy Finance Minister, Kweku Kwarteng also explained to Citi Business News that the ministry is hoping to complete the auditing of the arrears by October.
“We are validating some of them and so far some of them have proven to be illegitimate…the validation is being led by the Auditor General. Already, we have started with the statutory ones like the NHIS and GETFund” he said.
Mr. Dogbegah was confident government will heed its promise.
“I’m optimistic that government will do as promised” he said.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana