Audio By Carbonatix
The Roads Minister nominee, Governs Kwame Agbodza has reiterated his call for decapping statutory funds, particularly the Road Fund, to improve the efficiency of project financing and reduce the government’s debt to contractors.
Speaking during his vetting on Monday, January 20, Mr Agbodza noted that the Ministry of Finance retains a significant portion of the funds collected for the Road Fund and later reallocated as part of the government budget.
This practice, he argued, undermines the purpose of the fund and exacerbates the financial strain on contractors.
“I’ve been a consistent advocate for the decapping of statutory funds, especially the Road Fund. When you analyze the money collected into the Road Fund versus the amount released, it’s clear that the Finance Ministry takes a substantial portion, only to return it as GoG [Government of Ghana] funds. This approach limits the fund’s effectiveness.... so I'll continue to advocate for decapping of road fund,” he stressed.
The Adaku MP explained that allowing the Road Fund to retain its full revenue would better position it to settle outstanding debts owed to contractors.
This, he said, would prevent the accumulation of compounding interest and address longstanding issues in the road construction sector.
“It’s more practical for the fund to have full access to its money to pay off contractors, rather than withholding over 50% of its revenue. The current system keeps the burden on all of us,” he argued.
Mr Agbodza also pledged to focus on completing all ongoing road projects across the country, emphasising that this aligns with the president's commitment to making these projects a priority.
While acknowledging the need for some new projects to address urgent issues, he assured the committee that his primary focus in the first year would be on reviving and completing critical road infrastructure that has been delayed or abandoned.
He recognised challenges in the sector, including incomplete projects, but reaffirmed his ministry’s determination to overcome these obstacles and improve road safety and accessibility for the public.
“We are committed to completing ongoing projects – that will be our top priority,” he stated, adding that these projects would be completed to fulfil their original objectives.
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