Kwame Governs Agbodza, the Minister-designate for Roads and Highways, has reiterated his commitment to advocating for the de-capping of the road fund, emphasizing that this would help resolve long-standing issues with contractor payments and ensure better infrastructure development.
Speaking during his vetting before the Appointments Committee, Mr. Agbodza outlined his concerns with the current management of the road fund.
He noted that while significant amounts are collected into the fund, only a portion is released for use by the Roads Ministry.
He explained that much of the fund is taken by the Finance Ministry and returned as a Government of Ghana (GOG) fund, rather than being used directly for road sector projects.
“When you see the amount of money collected into the road fund and the amount released to them, it turns out that the Finance Ministry just takes part of the road fund and gives it back as GoG funds. So, they don’t actually put in much money of themselves,” Mr. Agbodza remarked.
The Minister-designate stressed that releasing the full road fund directly to the sector would provide immediate relief for contractors who are owed significant sums, thus preventing the compounding interest that has added to the mounting debt.
“I would still continue to advocate for the road fund to be decapped,” he affirmed. “It is better for them to have that money and pay off contractors that they owe to stop the compounding interest than to keep on taking away more than 60% of their money,” he added.
Mr. Agbodza also pointed out that the current system has contributed to delays in crucial road projects, with many contractors unable to complete their work due to the backlog of unpaid debts.
“The problem stays with all of us, so I will continue to advocate for the decap of the road fund,” he intimated.
By Ernest Kofi Adu, Parliament House