Roads Minister-Designate Flags GHS 665 Million Interest on GHS 113 Million Debt
The Roads and Highways Minister-designate, Governs Kwame Agbodza, has disclosed staggering figures about Ghana’s debt obligations during his vetting by Parliament’s Appointments Committee.
Mr. Agbodza revealed that the outgoing government is leaving behind GH¢113 billion in financial commitments, a situation he described as a severe burden on the country’s fiscal health.
Unpaid Certificates and Ballooning Interest
The Minister-designate highlighted GH¢20 billion in unpaid certificates as one of the most pressing concerns, warning that this figure poses a critical challenge for the incoming administration.
More alarming, however, is the GH¢665 million in accrued interest on these debts. Mr. Agbodza attributed the high interest rates to the nature of contracts tied to the debt, which have significantly inflated the overall financial burden.
Urgent Call for Fiscal Responsibility
Mr. Agbodza emphasized the need for immediate action to address the unpaid certificates and the soaring interest rates, cautioning that failure to resolve these issues could exacerbate the country’s fiscal challenges.
“At the transition committee as of today, the NPP government is leaving a minimum of GH¢113 billion commitments. What we should be worried about, though, is that in that same document, they are saying that certificates unpaid as of today from the Government of Ghana amount to about 20 billion, and more worrying is that the interest on this GH¢113 billion is GH¢665 million due to the nature of the contracts,” he stated.
Future Implications
Mr. Agbodza’s revelations highlight the fiscal challenges facing the incoming administration and the need for urgent reforms to manage the country’s debt obligations effectively. The focus will likely shift to addressing contract inefficiencies and implementing measures to ensure fiscal stability.
