The Kumasi Metropolitan Assembly (KMA) is facing a deepening financial crisis, with debts reportedly exceeding GH₵300 million, which is crippling its ability to deliver basic services.

According to the MCE for Kumasi, Richard Agyemang Ofori Boadi, a large portion of the Assembly’s internally generated funds is being swallowed by judgment debts stemming from unresolved contractual disputes and litigation. This, he explained, has left little room for development projects or even day-to-day operations.

Speaking in a yet-to-be-aired interview on JoyNews' The Pulse, Mr Ofori Boadi attributed the ballooning debt to what he described as “irresponsible management” by previous authorities.

"The judgment debt alone will get to GH₵ 300 million, well, not the entire debt of KMA, the entire debt of KMA is way beyond that," he revealed.

“They award contracts without proper negotiations or due process. One such case involved a dam site contract that ended up in court, and now the Assembly is saddled with a massive judgment debt,” he noted.

He revealed that while he has managed to negotiate settlements in some cases, such as a GH₵12 million and a GH₵7 million debt, others remain overwhelming. One of the biggest liabilities, he said, is a GH₵20 million judgment secured by FICO FD, which he described as “virtually killing” the Assembly.

Despite the dire financial position, the KMA boss rejected suggestions that the Assembly could be described as bankrupt.

“I don’t think so. We are in a challenging circumstance. KMA is in a difficult situation, but we are managing. I’ve even had to use my own resources at times to keep things running,” he stressed.