Road Fund's GH¢6bn debt to contractors sparks call for legislative exemption

Majority Chief Whip, Frank Annoh-Dompreh

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The Ghana Road Fund currently owes contractors over GH¢6 billion, attributing this debt to limited inflows caused by the capping law.

Enacted in 2017, this law restricts the allocation of funds to various statutory funds to a maximum of 25% of tax revenue.

During the launch of a road maintenance app, Frank Annoh-Dompreh, Chairman of the Road Fund, called for the fund to be exempted from the capping law.

In a speech read on his behalf, he highlighted the severe financial strain caused by the current limitations.

"The fund isn’t doing too well, with a debt exceeding GH¢6 billion to contractors for executed works, while revenue from inflows is restricted by the capping act," Annoh-Dompreh noted.

He expressed his intention to engage with the Ministry of Finance and the Cabinet to consider exempting the Road Fund from the Earmarked Funds Capping and Realignment Act 2017 (Act 947).

This exemption would make more funds available to support road maintenance initiatives and settle debts to contractors, enabling them to continue their work on the roads.

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Ghana Road Fund