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Sun, Aug

FINANCE MINISTER AUTHORISES RELEASE OF GHC42 MILLION TO PAY ROAD CONTRACTORS

Business & Economy

The Ministry of Finance has directed the Controller and Accountant General (CAG) to release a total of GHC5,647,869.23 as payment to Messrs Lomenf for construction of specified roads in Accra.

The Ministry of Finance has directed the Controller and Accountant General (CAG) to release a total of GHC5,647,869.23 as payment to Messrs Lomenf for construction of specified roads in Accra.

GHC20,521 888.16 is also to be released to pay Messrs Jungheung Construction Company Ltd for construction of named roads in the Volta Region.

In addition, the ministry has directed the release of GHC17,007,927.90 to the Ghana Highway Authority by way of part payment of the sum due Messrs China International Water & Electric Corporation for the Accra-Kumasi Highway Dualisation Project Lot 6, involving the section of road between Kwafokrom and Apedwa.

Withholding tax

The total sum involved is estimated to be GHC42 million. In three separate letters addressed to the CAG and signed by the Minister for Finance, Ken Ofori-Atta, the ministry directed the CAG to ensure that all withholding taxes are deducted before payment is effected.

Mr Ofori-Atta further directed all ministries, departments and agencies and metropolitan, municipal and district assemblies to note that “henceforth Section 96 (1) of the Public Financial Management Act 2016 (Act 921) is included in all Contracts/Agreements in order for them to be paid”.

The Finance Minister ordered that a clause be inserted in all contracts as follows: "Pursuant to Section 96 (1) of the Public Financial Management Act, 2016 (Act 921), it is an offence to make an unauthorised commitment resulting in a financial obligation to the Government.”

Rasta road

The Minister’s letter stipulated that the sums to be released to enable the director of the Department of Urban Roads to pay Messrs Lomenf Company Ltd are GHC5,002,690.60 (for construction of the GIMPA bypass phase 4), GHC397,393.94 (for the GIMPA bypass phase 3) and GHC247,784.69 (for construction of the Teshie Rasta Area road).

The Minister further directed the release of the monies to enable the Ghana Highway Authority (GHA) to pay Messrs Jungheung Construction Company Ltd for construction of the Kpando-Worawora-Dambai roads, all in the Volta Region.

With the Accra-Kumasi Highway, the release is to enable the GHA to make part payment of the amount due Messrs China International Water & Electric Corporation for work done on the Kwafokrom-Apedwa section of the same road.

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