The Bane of Ghana’s Development vs Judgment Debts: The GH¢94m Tobinco case

Judgment debts are one of the banes of Ghana’s development process. One would think that with the country's limited resources, its leaders would make decisions that would protect and preserve these resources and the country’s interests.

But on several occasions, successive governments and their functionaries have taken actions, including the reckless cancellation of Ghana’s contractual obligations, causing the country billions of Ghana cedis in judgment debts.

The manner in which some of the contracts that cause the judgment debts are cancelled and the persons involved in the arbitrations often lead to insinuations of proponents of the government colluding with private individuals to “create, loot, and share” the nation’s scarce resources.

The latest judgment debt that has been slapped on the government of Ghana is the GH¢94 million against the Food and Drugs Authority (FDA), to Tobinco Pharmaceuticals Limited over the unlawful destruction of unexpired drugs belonging to the company.

The timing of the case and the defence put out by the FDA has led many to allege that this is another instance of the country’s resources being ‘looted and shared’.

The FDA has indicated that it would appeal the GH¢94 million judgement debt.

Now, the things the state could do with GH¢94 million which it has to cough up for Tobinco, forms just a tiny fraction of the billions of Ghana cedis in judgment debts awarded against Ghana.

GhanaWeb analyses this amount in terms of projects and presents this article that points to some government projects that this GH¢94 million could have funded:

Kwame Nkrumah Circle Interchange (Circle Dubai):

The Kwame Nkrumah Circle Interchange (Circle Dubai), which was constructed under the John Dramani Mahama government, cost the state around GH¢75 million.

With the GH¢94 million, a similar edifice could have been constructed, and possibly, there could still be some GH¢20 million left to attend to other things.

Phase 2 of the University of Ghana Medical Centre (UGMC):

The 2nd phase of the University of Ghana Medical Centre cost the state around $14.5 million in 2022, which is around GH¢100 million, using the exchange rate in that year.

So, this GH¢94 million the government is to pay to the FDA is nearly enough to cover the cost of the 2nd phase of the University of Ghana Medical Centre, which is today one of the prime hospitals in Africa.

Half of the cost of the 2nd phase of the Tema Motorway Roundabout project:

The government signed the final supplementary financial agreement with Japan for the 2nd phase of the Tema Motorway Roundabout project, which was a ¥3.369 billion grant, about $25 million (equivalent to GH¢201 million in 2022).

The GH¢94 million the state now has to cough up for Tobinco is almost half the funds it acquired for the 2nd phase of the Tema Motorway Roundabout project.

Alternatively, the GH¢94 million Tobinco judgment can be used to pay for a number of government projects below:

Phase One of the rehabilitation of the Sunyani Airport:

Phase One of the rehabilitation of the Sunyani Airport is believed to cost around GH¢52 million, and the over GH¢94 million can be used to finance it.

Road projects the GH¢94 million can be used to finance:

1. Construction of 750mm Diameter Concrete U-drain (135m) on Goaso-Akrodie Road (km 0+905-1+040 RHS): Lot 4 - GH¢197,098.

2. Construction of 750mm Diameter Concrete U-drain (135m) on Goaso-Akrodie Road (km 1+175-1+310 RHS): Lot 6 – GH¢198,455

3. Construction of 600mm Diameter Concrete U-drain (180m) on Goaso-Gambai No. 2 Road (km 32+750-32+930 LHS): Lot 8 - GH¢199,207

4. Construction of (1,150m) Concrete Kerbs on Goaso-Gambai No. 2 (km 0+200-0+600 LHS), (km 1+100-1+200 RHS), (km 11+100-11+300 RHS) Road and Goaso-Akrodie Road (km 0+500-0+850): Lot 9 - GH¢197,563

5. Construction of (1,150m) Concrete Kerbs on Goaso-Akrodie (km 0+850-1+000) and (Ayomsu-Goaso 500m B/S): Lot 10 - GH¢196,875

All these kilometres of road cost the state less than GH¢1 million. Imagine the number of kilometres of road GH¢94 million can be used for.

Alternatively, this money could have been used to pay for the upgrading of the Assin Akropong-Odomasi Asibrem 22.18km road, which is believed to cost around GH¢54 million.

It could have also paid for the upgrading of Kyibosohasowodze bungalow feeder road (14.50km), which cost around GH¢30 million.

Also, the money could have been used to pay for the rehabilitation of the selected roads in Teshie Camp, Southern Command, Military Academy Training School Roads, and partial reconstruction of selected roads in Accra – LOT 1 (44.49KM); construction of Sunyani By-Pass Outer Ring from Kumasi Berekum Road, which costs around GH¢80 million.

One Constituency, One million dollars:

One of the promises of the Nana Addo Dankwa Akufo-Addo government that has not been realised is the One Constituency, $1 million promise.

At least the ‘missing’ $3.5 million could have been used to realise this promise for 3 constituencies.

One Constituency, One Dam:

The government estimated that it costs GH¢250,000 to construct ten Small Earth Dams in its One Constituency, One Dam programme.

With GH¢50 million, more than 20,000 earth dams could have been constructed across the country.

Payment of allowance of NABCO trainees:

Trainees of the Nations Builders Corps programme (NABCO), which ended in 2021, are believed to be owed 2 to 9 months arrears of their GH¢700 monthly stipends. Even if the number of trainees owed was around 80,000, the $2.9 million could have been used to pay one month's arrears of the trainees.

Payment of Student Loans:

The government in June 2024 released GH¢20 million for the payment of loans to over 10,000 students in various private and public tertiary institutions across the country. This $3.5 million can be used to give loans to more than double the number of students.

BAI/AE

Hassan Ayariga is our guest on the latest edition of Election Desk on GhanaWeb TV with host, Etsey Atisu. Catch the full interview below:



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