Interest on GHS113 million road debt soars to GHS665 million — Agboza laments

Kwame Governs Agboza, Minister Designate for Roads and Highways, has expressed deep concern over the escalating interest on the road sector’s debt, highlighting the substantial financial burden it imposes on the nation.

During his vetting on Monday, January 20, Agboza revealed that in 2018, the Road Fund owed approximately GHS113 million. By the current year, the interest on this debt has surged to GHS665 million.

He emphasized the unsustainable nature of this situation, stating, “The question is, how do I explain this to the taxpayer…that we owe 113million cedis, and the interest on 113 million is 665 million?”

Agboza attributed the escalating interest to the terms of road contracts, which stipulate that if a certificate is raised and unpaid after a certain period, a 30% interest accrues.

He further expressed concern about the broader implications of the debt, stating, “This is not value to Ghana. This not value to the contractor. This is money being wasted.”

Agboza called for urgent action to address the issue, suggesting collaboration with the Finance Minister to find a sustainable solution.