The Ghana Road Fund is grappling with a staggering debt exceeding GH¢6 billion owed to contractors, exacerbated by legislative constraints imposed under the capping law.
Since its introduction in 2017, the capping law has been a major obstacle, restricting allocations to statutory funds to a maximum of 25% of tax revenue. This limitation has severely curtailed the inflows into the Road Fund, directly impacting its ability to settle outstanding obligations to contractors.
Frank Annoh-Dompreh, Chairman of the Road Fund, highlighted these challenges during the launch of a road maintenance app.
In his address, read on his behalf, Annoh-Dompreh underscored the urgent and crucial need to exempt the Road Fund from the earmarked fund capping and Realignment Act of 2017 (Act 947).
“The fund is currently burdened with debts exceeding GH¢6,000,000,000 owed to contractors for completed projects, while our revenue inflows remain constrained due to the capping act,” Annoh-Dompreh stated.
He emphasized his intention to engage with the Ministry of Finance and Cabinet to advocate for this exemption, to secure adequate funds to settle outstanding debts and sustain road maintenance efforts.
The Chairman’s remarks underscored the critical importance of the Road Fund’s work and the need to resolve these financial constraints to ensure that contractors can continue their essential work on road infrastructure across Ghana.
The proposed exemption, if implemented, has the potential to significantly bolster the Road Fund’s financial capacity and support ongoing maintenance initiatives vital for road safety and efficiency nationwide.
