Kumasi Metropolitan Assembly owes over GHS142 million in judgment debt — Kumasi Mayor
The Mayor of Kumasi, Richard Ofori-Agyeman Boadi, has disclosed that the Kumasi Metropolitan Assembly (KMA) is saddled with huge debts running into millions of cedis.
According to him, the Assembly currently owes more than GHS142 million in judgment debts, while its total indebtedness stands at about GHS300 million.
Speaking on Accra-based JoyNews, Mr. Ofori-Agyeman Boadi attributed the debt burden to what he described as irresponsible contract management by previous administrations of the Assembly.
“I have come to meet a judgment debt of over GHS142 million. That is just judgment debt alone; the total debt of KMA is way beyond that; around GHS300 to GHS400 million,” the Mayor revealed.
He explained that the debts largely arose from poorly awarded contracts, particularly in waste management, where agreements were terminated without due process.
Contractors, the Mayor said, resorted to the courts and secured huge judgment debts against the Assembly.
“We award a contract to somebody to manage a particular dump site for seven months. Without proper negotiation, we abrogate the contract. The person goes to court, secures judgment, and because we don’t deal with it early, interest keeps accumulating. It is calculated on an amortisation basis, so it compounds year after year. That is how we have now reached GHS142 million in judgment debt,” he explained.
The Mayor said the Assembly is exploring measures to restructure and clear the debts but noted that the financial strain continues to undermine service delivery and the KMA’s development agenda.