THE KUMASI Metropolitan Assembly (KMA) is currently facing a debt stockpile of a staggering GH¢123,485,021.95, accumulated over the years and having a toll on the financial situation of the assembly.
These troubling debts, which continues to increase periodically, were reportedly accumulated through series of judgement debt and monies that the assembly owe its contractors, among others.
Richard Ofori-Agyeman Boadi, the Chief Executive Officer of KMA, disclosed the unpleasant financial situation of the assembly during his maiden sessional address at the Prempeh Assembly Hall in Kumasi yesterday.
“The KMA is saddled with huge debts and amounts to One Hundred and Twenty-Three Million, Four Hundred and Eighty-Five Thousand, and Twenty- One Cedis, Ninety-Five Pesewas (GH¢123,485,021.95) as at June 30, 2025.
“It keeps growing with the introduction of new debts mostly from judgement debts, and such debts come without notice,” the Kumasi Mayor, who is nicknamed in political circles as ‘Zuba’, disclosed.
According to him, the assembly’s debt is too colossal that his administration has strategically planned an out-of-court settlement on some of the debt cases that look scary for flexible payment plan.
“A strategic measure has been formulated to have the assembly’s legal department lead a drive to have out-of-court settlements on pending cases that looks dire for KMA, and also attain flexible payment plans with already decided cases,” he stated.
Zuba also disclosed that in order for the assembly not to incur such huge debts in future, “A risk assessment policy has been developed to curb the resurgence of such debts in the future.”
Touching on other pressing issues, he said the KMA “currently has forty-four (44) cases pending before the courts. Out of these, ten (10) are active, while the remaining cases are either dormant or in the process of being settled.”
He said seven of the cases have been settled out of court, with negotiations at an advanced stage, adding “there is one case which the assembly intends to settle out of court, and efforts are underway to achieve this objective.”
According to him, these numerous legal actions against the assembly “largely stem from instances of wrongful demolition and breaches or terminations of contract.”
“Such actions, though often initiated at the sub-metro or departmental level, are sometimes carried out without adequate consultation or legal guidance, leading to unintended legal consequences,” he explained.
To prevent future legal battles, the Kumasi Mayor has stated categorically that henceforth key matters including the demolition of properties and others should pass through his office for thorough cross checks.
“In view of this, it is strongly advised that all matters relating to demolition, contract breaches, or terminations be referred to my office, upon which I will seek the advice of the Metro Solicitor for prior approval and proper legal direction,” he emphasised.
FROM I.F. Joe Awuah, Kumasi