The Public Accounts Committee (PAC) has issued a directive to the Ministry of Finance to expedite the release of budgetary allocations to the Ministry of Works and Housing and its affiliated agencies, including the Ghana Hydrological Authority and the Department of Rural Housing.
This mandate aims to facilitate the completion of numerous abandoned projects that commenced in 2019. The directive was announced during a PAC sitting in Parliament.
In a detailed report, PAC revealed that over GH¢83 million had been released to the Ministry of Works and Housing. Despite this substantial disbursement, the Committee highlighted a troubling rise in the Ministry’s outstanding bills and commitments, now exceeding GH¢2 billion.
This financial strain has been exacerbated by the inadequacy of the 2023 fiscal year’s budgetary allocation, which falls short of settling the growing outstanding bills.
The PAC’s report underscored the critical shortfall in the Ministry’s budgetary allocation for 2023, deeming it insufficient to address the existing financial obligations.
The report further noted the Ministry’s failure to produce interim payment certificates and address liquidation damages, urging the Minister of Finance to release the necessary funds to enable the completion of the stalled projects.
With the rainy season underway and Accra experiencing frequent flooding, the PAC stressed the urgency of completing these infrastructure projects. The Committee emphasized that finishing these projects is crucial to mitigate flooding, thereby protecting lives and property in the capital city and other affected areas.
In its observations, the PAC identified about thirty projects that had not commenced. The Committee recommended the termination of these contracts due to the absence of justifiable reasons for the delays. This recommendation aims to redirect efforts and resources towards viable projects that can be completed in a timely manner.
Legal Review and Contractual Challenges
Hon. Kojo Oppong Nkrumah, the Minister of Works and Housing, informed the Committee that his Ministry had sought legal opinions regarding the contracts to ascertain whether rate reviews were permissible. He noted that some contracts explicitly prohibited rate reviews, while others allowed for such adjustments.
For contracts where rate reviews are possible, necessary adjustments would be made. For those that do not permit rate reviews, an addendum could be negotiated between the contracting parties to facilitate project completion.
“Nobody gets one hundred percent of their allocation, and the revenue situation in the country is challenging. But we will try to get the rate review done and have the contractors back on site.”
Hon. Kojo Oppong Nkrumah, the Minister of Works and Housing
The PAC continued its session to consider the Auditor-General’s report for 2023, which included assessments of various ministries, departments, and agencies. This ongoing scrutiny is part of the Committee’s broader mandate to ensure fiscal responsibility and accountability within government operations.
The directive from the PAC to release funds for abandoned projects signals a critical move towards addressing Ghana’s infrastructure deficit.
The completion of these projects, particularly those related to flood management and rural housing, is expected to significantly improve living conditions and reduce the vulnerability of affected communities.
The PAC’s insistence on the Ministry of Finance’s prompt release of funds underscores the urgency and importance of completing abandoned infrastructure projects.
As the country grapples with financial constraints and a challenging revenue situation, strategic allocation and efficient use of resources are imperative to ensure the timely completion of critical projects.
The ongoing discussions and legal reviews highlight the complexities involved in managing public infrastructure projects and the need for robust financial oversight.
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