Some of the financial institutions, particularly Gold Coast/Black Shield, that have been affected by government’s so-called reforms, had strongly stated that their liquidity challenges were as a result of their funding of state projects.
These projects were undertaken by certified contractors who accessed funds from some fund managers to prosecute infrastructural developments on behalf of state departments and agencies.
After initial scepticism, government came to appreciate that indeed most of Ghanaian contractors constructed most state projects and therefore needed to pay them.
This was after government had re-evaluated projects undertaken by the contractors and became convinced and satisfied with the work done. They were thus issued with certificates that suggested that they were due for payment.
Unfortunately, despite assurances from the President of the land and the Roads and Highways Minister, nothing seems to be done about those assurances.
A number of contractors have therefore resorted to the court to retrieve their monies. Last week Friday (Feb., 14, 2020), a contractor who is owed by the Roads and Highway Authority, towed away vehicles of the directors of the agency after securing a court judgment that gave him the permission to seize properties of the Authority to defray some of his cost.
The contractor is Big Ben, a credible contractor who has prosecuted both private and public projects in the past with no problems.
The contractor stormed the premises of the roads and highways in Accra to carry away a number of vehicles belonging to the ministry.
His action comes in the heels of several calls by many of the affected contractors nationwide to government to pay them for work done for state departments and agencies.
These contractors have been very civil in their calls—appealing to the appropriate authorities and at the very last call organising press conferences to state their frustration at the way government was handling their issue.
These calls were made long before both the president and the roads minister assured the contractors of payment of work done in many public sectors of the country.
These include road construction, markets, schools, sea defence projects etc.
Gold Coast/Black Shield had maintained that if government were to pay the contractors who they supported their work with funding, they would be liquid enough to avoid being declared insolvent by the Security and Exchange Commission (SEC) and subsequent revocation of their license.
The parent company of Gold Coast—Groupe Nduom—has maintained that government owes it some GHC2.4 billion in support funding of many state projects. Majority of the amount went into projects being prosecuted by some of these contractors.
Groupe Nduom is currently in court challenging government’s call that it owes Groupe Nduom only GHC30 million.
Story: Richmond KEELSON, Managing EDITOR