By Abubakari Seidu Ajarfor
The President of the Association of Building and Civil Engineering Contractors of Ghana (ABCECG), Martins K. Nnuro said the Association has lost many of its members as a result of delayed payments of monies owed them by government.
Mr. Martins K. Nnuro expressed worry that most local finds it difficult to secure jobs and when jobs are secure they fall on banks for funding.
He said this at an opening event of the executive bureau meeting of the African Federation of Construction Contractors? Associations (AFCCA) held in Accra with members from Morocco, Malawi, Benin, Egypt, Sudan, South Africa, Libya and others with Ghana as a member.
Mr. Martins K. Nnuro said when projects are executed and certified for payments, payments to contractors sometimes take one to two years or more before it is made.
According to him, the long delay in payments has therefore left contractors profitless and impoverished since a lot of interest accrues.
Mr. Nnuro indicated that the Association has lost many of its members because of the delayed payments.
When that happens, he said leads to abandoned projects and delay in job completion. Banks are not willing to give loans to contractors to execute projects citing long delay in payment.
He pointed out that Ghana Revenue Authority (GRA) firmly demands tax payment from contractors even though government owes them, SSNIT also demands payment of workers contribution.
Amongst these challenges, GRA and SSNIT further demands payment of penalty for default.
Mr. Nnuro, who is also the Managing Director of Malkna Enterprises Limited, added that fragmented is another canker that results in disparity among contractors.
According to him, government must champion the course of bringing contractors together through Associations for growth and sanitization and sustainability of the industry.
