Ghanaian Chamber of Construction Industry Warns of Legal Action Over Unpaid Contracts

The Ghanaian Chamber of Construction Industry has issued a warning that the government may face legal action from its members over unpaid contracts. The Chamber’s CEO, Emmanuel Cherry, expressed his concerns to Citi News that the government’s outstanding debt to contractors has reached a critical level of more than GH¢15 billion, with some of the due funds stretching back to 2017.

Despite the Chamber’s efforts to recover payment, its members have been left with no other options but to seek legal action against the government. This situation has resulted in 97 percent of contractors packing out of site due to the government’s indebtedness to the construction industry.

This alarming situation has affected many businesses in the country, and it is critical for the government to take action to prevent further harm to these affected businesses. It is especially worrying since the government has a stated aim to create a Ghana beyond aid, and yet, it is failing to pay its debts to the construction industry.

The construction industry is an essential sector that drives the country’s economic growth and provides employment opportunities for many Ghanaians. Therefore, the government must prioritize paying its debts to the industry to ensure that businesses can operate efficiently and continue to contribute to the country’s economic growth.

The Chamber of Construction Industry has stated that if the government fails to take any action to resolve this issue, its members will have no other choice but to seek legal redress. The situation is a long-haul awaiting the government, and they must take immediate action to avoid legal action from the Chamber’s members.

Last year, the Minister of Roads and Highways, Kwasi Amoako-Atta, promised that the government would clear a “chunk” of outstanding debts owed to road contractors. However, it appears that the government has not taken any concrete steps to resolve the issue.

In conclusion, the Ghanaian government must act quickly to address its outstanding debt to the construction industry. Failure to do so may result in legal action and may have long-term implications for the country’s economy. The government must prioritize the payment of its debts to the industry to ensure that businesses can operate smoothly and contribute to the country’s economic growth.

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