President John Dramani Mahama has directed the Ministry of Finance to release GH¢1 billion before Christmas to pay contractors who have been owed by the state since 2017, offering what he described as long-overdue relief to firms and families affected by years of delayed payments.
The announcement was made at the sod-cutting ceremony for the Sunyani Outer Ring Road and other auxiliary road projects in the Bono Region, being executed under the government’s flagship Big Push infrastructure initiative.
Addressing contractors, traditional leaders, and residents at the event, President Mahama said the payment was intended to ease the financial distress faced by contractors whose certified works had remained unpaid for several years. He acknowledged that the accumulation of arrears had disrupted businesses, stalled projects, and, in some cases, left families of deceased contractors without compensation for work already completed.
“I have directed the Finance Minister, Dr Ato Forson, to release GH¢1 billion to settle debts owed to contractors since 2017 before Christmas. All the contractors will be paid, and the deceased families should follow up to receive the money”.
President John Dramani Mahama
He stressed that the directive reflected the government’s resolve to confront legacy challenges directly while restoring confidence in public sector contracting. President Mahama explained that the payments would be guided by ongoing audits aimed at verifying outstanding claims.
He said the government was focusing on certified works carried out in previous years, particularly those executed under the former administration, to ensure that only legitimate claims were honoured. According to him, accountability and transparency would remain central to the settlement process.
Submission of Documentation
He urged contractors to act quickly in submitting their documentation to avoid unnecessary delays. “I want to urge contractors to hurry up with their certificates to receive your money. Your money will only be delayed if you are lazy,” the President said, emphasising that the government’s readiness to pay must be matched by prompt action from claimants.
Beyond the immediate GH¢1 billion disbursement, President Mahama assured contractors that additional resources had been set aside under the Big Push programme to support the resumption and completion of stalled infrastructure projects nationwide.
He said the goal was not merely to clear arrears but to ensure that contractors returned to site and delivered projects that communities had waited for over many years. The Christmas payout forms part of a broader, structured plan by the government to clear contractor arrears estimated at about GH¢68 billion.
The Ministry of Finance has outlined a four-year settlement strategy spanning 2025 to 2028, designed to balance fiscal discipline with the urgent need to inject liquidity into the construction and infrastructure sectors.
Under the 2025 budget, GH¢13.8 billion was programmed for the payment of arrears, with approximately GH¢12 billion already disbursed by mid-November 2025. The 2026 budget, according to government projections, has earmarked an additional GH¢25 billion to accelerate the clearance of outstanding obligations.
Officials say the phased approach provides predictability for contractors while allowing the state to manage its financial commitments responsibly. A central pillar of the settlement framework is the government’s insistence on mandatory audits.
No Audit, No Payment Policy
The administration operates a strict “no audit, no payment” policy, meaning no claim is paid without confirmation from the Auditor-General. President Mahama said this safeguard was necessary to protect public funds and prevent the payment of inflated or fraudulent claims, even as the government works to resolve genuine arrears.
The road sector accounts for a substantial share of the outstanding debts. Of the estimated GH¢67.5 billion in total government arrears recorded by late 2024, about GH¢21 billion was attributed to road construction and maintenance projects. Many of these projects stalled after contractors withdrew from site due to prolonged non-payment, leaving key transport links incomplete.
President Mahama noted that the Big Push programme was partly designed to address these disruptions. He said funds had been deliberately allocated to revive stalled projects and restore momentum in the infrastructure sector.
According to him, several major road projects that had been dormant for years had already resumed following assurances of payment and improved financing arrangements.
Projects such as the Ofankor–Nsawam and Takoradi–Agona–Nkwanta roads have seen contractors return to site, while others, including the PTC Interchange in Takoradi and the Suame Interchange, are expected to resume by the first quarter of 2026.
Settlement of Contractors Essential for Resumption of Projects
Government officials say these resumptions depend on the completion of audits and the final parliamentary approval of debt restructuring agreements. The President said settling contractor arrears was essential to achieving the broader objectives of the Big Push, which seeks to close Ghana’s infrastructure gap, stimulate economic growth, and create jobs.
He argued that prompt payment for certified work was fundamental to sustaining construction activity and ensuring value for money in public investment. With Christmas fast approaching, the planned release of GH¢1 billion is expected to provide immediate relief to contractors and inject much-needed liquidity into the construction sector.
President Mahama said the move symbolised his administration’s commitment to fairness, continuity, and disciplined public finance, while laying the foundation for a more reliable and transparent system of infrastructure delivery in the years ahead.
READ ALSO: Tema Oil Refinery Roars Back to Life After Prolonged Shutdown
