The Ghana Real Estate Developers Association (GREDA) wants government to pay local contractors on time.
This, they say will enable government successfully implement its policy of ceding 70 percent work to local contractors.
The Minister for Procurement Sarah Adwoa Sarfo has announced that government is working on a policy document that will see 70 percent of government contracts going to local contractors.
There are however concerns of delay in the payment of local contractors when projects are executed.
The Minister for Roads and Highways, Mr. Kwasi Amoako-Atta, early this year announced GH¢20 billion was owed contractors.
A category “A” member of GREDA, Baffuor Osei speaking to Citi Business News said though the policy is a good one, government must ensure all debts are rightfully paid for work done.
“Payment is a fundamental underlined factor. None of this will work if the government is not paying them and I can list it for you that the eastern corridor road between Asikuma going to Ha-ve junction when government is not paying the foreign contractor, then the road is in trouble. Even let’s look at our own Nsawam junction when government was not paying the foreign contractor the job was not been delivered” he said.
He further advised government to ‘walk the talk’ to ensure positive work output.
“So when government does not pay the contractors the job will not get delivered and all we are going to do is talk because we need to borrow. So they should endeavor to do the honorable thing to avoid any issue,” he stated.
Meanwhile, the Road Contractors Association of Ghana says the news of the policy has come as a surprise since government has failed to pay all debts owed them.
The debt, according to them, has hindered the financial capacity of most contractors.
National Chairman for the Road Contractors Association of Ghana, Dan Agro, who spoke to Citi Business News earlier said government should ensure timely payment of all contracts.
“What we the contractors are saying is that we cannot continue to be given the blame for our capacity when government owes us and this debt is affecting our capacity as road contractors.
“Who are the people going to be given 70 percent of the contracts, it is still us the contractors, yet government has not paid us and we owe the banks. Now you want to come up with this policy” he lamented.
He advised government to first pay off all debts owed them before implementing the policy.
“How does government expect us to perform, because they owe us, so if they really want to go ahead with this policy and ensure its sustainability then they must first clear the debt,”.
By: Jessica Ayorkor Aryee/Anita Arthur/citibusinessnews.com/Ghana