Kwame Governs Agbodza, the Minister-Designate for Roads and Highways, has voiced serious concerns about the escalating debt within the ministry, attributing much of it to poor financial management under the previous administration.
Speaking before the Appointments Committee of Parliament on Monday, January 20, 2025, Agbodza revealed that the New Patriotic Party (NPP) government left behind a commitment debt of at least GHC100 billion. He also disclosed that as of January 20, 2025, unpaid certificates from the Government of Ghana (GoG) amounted to GHC20 billion, with an additional GHC15 billion in unpaid road fund obligations.
He highlighted the stark contrast between previous and current debt levels. “In 2017, our colleague [Amoako Atta], who is no longer in Parliament, expressed concern over a commitment debt of GHC17 billion left by the NDC government, with GHC1.5 billion in unpaid certificates. Fast forward to today, the NPP government is leaving a minimum commitment debt of GHC100 billion,” Agbodza said.
Rising Debt Due to Accrued Interest
Agbodza also outlined how accrued interest has exacerbated the ministry’s financial woes. He noted that a GHC113 million debt in 2018 has ballooned to GHC665 million due to interest accumulation. Similarly, a GHC424 million debt in 2020 now stands at GHC1.5 billion in 2025.
“Take 2018, for instance. We owed GHC113 million, but today the interest alone is GHC665 million. For 2019, the debt was GHC210 million, with interest now at GHC960 million. By 2020, the debt had risen to GHC424 million, and the interest has skyrocketed to GHC1.5 billion,” he explained.
The debt levels for subsequent years have also significantly increased, with 2021 figures showing a GHC616 million debt accruing an interest of GHC1.69 billion.
Agbodza expressed frustration over the financial mismanagement, questioning how he could explain this situation to his constituents in Adaklu.
Call for Improved Contract Management
To address the crisis, Agbodza emphasized the need for better contract management within the road sector, citing inefficiencies and waste as key contributors to the debt crisis. “This cannot continue,” he stated firmly, adding that the current trajectory is unsustainable and requires urgent intervention.
Agbodza’s revelations underscore the critical need for fiscal discipline and reforms to prevent further deterioration of the country’s road infrastructure financing.