Mr. Emmanuel Cherry, the President of the Ghana Chamber of Construction Industry, has signaled a cautious endorsement of the government’s aggressive drive to “sanitize” the road sector, while issuing a stark warning that administrative reforms must not become a bottleneck for survival.
In a high-stakes dialogue following a major infrastructure announcement, Mr. Cherry emphasized that while weeding out “mediocre” and corrupt actors is essential for a robust industry, the immediate financial health of contractors remains the ultimate litmus test for the Mahama administration’s “Big Push,” agenda.
“The government has shown good faith by trying to clean the system and put it on a good track that is robust, so that it is devoid of corruption. It is also trying to clean the system by making sure that all contractors validate their contracts and their IPCs accordingly.
“If this happens, it will wipe out some mediocres within the system and the corrupt practices within the system. This is a plan we must applaud the government for. But in doing so, don’t forget that we have monies that are supposed to have been paid to us”
Mr. Emmanuel Cherry, President of the Ghana Chamber of Construction Industry
The friction comes as the state attempts to balance a rigorous validation of contracts with the urgent need to inject liquidity into a sector that has been gasping for air under a debt overhang dating back to 2017 – thus its new mandate to validate all road contracts and Interim Payment Certificates (IPCs).
For Mr. Cherry, this exercise is a double-edged sword. On one hand, it promises to professionalize the sector by eliminating unqualified firms and curbing the inflated practices of the past. On the other hand, the rigorous scrutiny threatens to extend the waiting period for contractors who are already facing intense pressure from creditors and commercial banks.
Speaking in the aftermath of President John Dramani Mahama’s sod-cutting for the Sunyani-Atronie-Acherensua Road Project – Mr. Cherry argued that the “good faith,” shown by the government in cleaning the system must be matched by a swift disbursement of funds.
The GHS 1 Billion Directive
During President Mahama’s address at the sod-cutting for the Sunyani-Atronie-Acherensua Road Project, he directed the Ministry of Finance to release GHS 1 billion to road contractors before the Christmas break.
While the Chamber welcomed the move as a significant gesture of intent, the friction remained over the adequacy of the sum. Mr. Cherry and his colleagues argued that given the scale of arrears, a GHS 1 billion injection is merely a “down payment,” on a much larger systemic debt.
The Chamber pushed for a dramatic scaling up of the Road Sector Fund.
“We applaud the directive. We pray that you add actions to it to make sure that the GHS 1 billion is increased to GHS 5 billion in the road sector fund so that something substantial will circulate through the economy.
“If the contractor is paid today, the banks will receive their money, the manufacturers will receive theirs, and the service sector will also get its cut”
Mr. Emmanuel Cherry, President of the Ghana Chamber of Construction Industry
Beyond the boardrooms of construction firms, Mr. Cherry framed the payment of contractors as a “social stabilizer.” He contended that the construction sector acts as a primary engine for the informal economy. When contractors are liquid, they pay suppliers, who in turn pay laborers, who eventually spend their wages in local markets.
This “multiplier effect,” is seen as a key component of the government’s “resetting” narrative.
However, the “clean-up,” exercise remains the gatekeeper. The Ministry of Roads and Highways has maintained that only validated and verified work will be compensated, setting the stage for a tense end-of-year period as firms scramble to meet the new compliance standards.
“If those people get money, they will go to the market to buy items. So if that happens, the economy will be expanded, or boosted, and then you see that our mothers in the markets will also feel the effect.
“The government is trying to clean the system by making sure that all contractors validate their contracts… so that it is devoid of corruption”
Ministry of Roads and Highways
As the December 25th deadline for the GHS 1 billion disbursement looms, the construction industry remains in a state of watchful expectancy. The success of the “Big Push” will depend on whether the government can navigate the “mediocres” out of the system without bankrupting the legitimate firms that form the backbone of Ghana’s infrastructure.
