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NEWS ARCHIVE 2006 - 09
(TSRUKPE) KADJEBI: Local contractors, money shy
Ghanaian road contractors generally shy away from applying for interest on delayed payments on jobs done as contained in their contract documents.
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Date Created : 10/2/2008 2:26:26 PM : Story Author : GhanaDistrict.Com
Ghanaian road contractors generally shy away from applying for interest on delayed payments on jobs done as contained in their contract documents.
Their foreign counterparts however take advantage of that provision.
Mr. Charles K. Twumasi, Director, Monitoring and Evaluation, Ministry of Roads and Transport told members of the Parliamentary Select Committee on Roads and Transport during the inspection of the Vakpo-Tsrukpe road project on Tuesday.
Mr Twumasi urged the contractors to raise invoices on work done quickly to facilitate timely processing and early payments for jobs.
The Committee was on a week-long inspection of some road projects in the Volta region.
The speculation was that the contractors either did not want to be blacklisted for taking advantage of that clause in their contracts or that they still made huge profits despite the delay in paying for work done.
Mr Aaron Mensah Dansu, Managing Director of Esteldam Construction Works Limited, undertaking the Vakpo-Tsrukpe project, said road contractors are “working for the banks,” banks which charged high interests on the loans contracted, whenever government delayed in paying for jobs done.
The Committee members however commended Mr Dansu for doing quality work and hoped other contractors, especially those on feeder road projects in other parts of the country would do likewise.
At Kadjebi the Committee members were unhappy about the delay on the two kilometre Kadjebi town roads being undertaken by Sparkwell Construction Company, who’s Managing Director Mr Herbert Okaija blamed the situation on delays in paying for work already done.
He said huge interests have accumulated on the loans taken from the banks to start the work.
When asked whether he has applied for interest payment from government following delays in paying for the job done, Mr Okaija responded in the negative.
The Committee members were similarly unhappy at the abandonment of the 10 kilometre Kadjebi-Dzindzinso road project, which officials of the GHA said they could not trace the contractor involved.
An official of the GHA said a European Union funding has however been secured for the remaining stretch of that road up to Damanko in the Nkwanta-North district.
The Committee members saw for themselves the deplorable nature of that stretch of road as drivers laboured to traverse it with truckloads of yams.
Their foreign counterparts however take advantage of that provision.
Mr. Charles K. Twumasi, Director, Monitoring and Evaluation, Ministry of Roads and Transport told members of the Parliamentary Select Committee on Roads and Transport during the inspection of the Vakpo-Tsrukpe road project on Tuesday.
Mr Twumasi urged the contractors to raise invoices on work done quickly to facilitate timely processing and early payments for jobs.
The Committee was on a week-long inspection of some road projects in the Volta region.
The speculation was that the contractors either did not want to be blacklisted for taking advantage of that clause in their contracts or that they still made huge profits despite the delay in paying for work done.
Mr Aaron Mensah Dansu, Managing Director of Esteldam Construction Works Limited, undertaking the Vakpo-Tsrukpe project, said road contractors are “working for the banks,” banks which charged high interests on the loans contracted, whenever government delayed in paying for jobs done.
The Committee members however commended Mr Dansu for doing quality work and hoped other contractors, especially those on feeder road projects in other parts of the country would do likewise.
At Kadjebi the Committee members were unhappy about the delay on the two kilometre Kadjebi town roads being undertaken by Sparkwell Construction Company, who’s Managing Director Mr Herbert Okaija blamed the situation on delays in paying for work already done.
He said huge interests have accumulated on the loans taken from the banks to start the work.
When asked whether he has applied for interest payment from government following delays in paying for the job done, Mr Okaija responded in the negative.
The Committee members were similarly unhappy at the abandonment of the 10 kilometre Kadjebi-Dzindzinso road project, which officials of the GHA said they could not trace the contractor involved.
An official of the GHA said a European Union funding has however been secured for the remaining stretch of that road up to Damanko in the Nkwanta-North district.
The Committee members saw for themselves the deplorable nature of that stretch of road as drivers laboured to traverse it with truckloads of yams.