Debts owed local contractors creating unemployment – GhCCI

The Ghana Chamber of Construction Industry (GhCCI) says the government’s inability to pay monies owed to local contractors is compounding the unemployment situation in the country. Speaking on the Morning Starr with Francis Abban the Chief Executive Officer for the Chamber, Mr. Emmanuel Cherry indicated that the government is collapsing the few jobs created in the system through the nonpayment of debts owed them. “The contractor has employed the services of artisan, suppliers and what have you. So just imagine how much employment just one contractor has generated. So, if you deliberately decide to punish them by not paying him just imagine how many jobs have been lost. “Today most of our frontline contractors have laid off workers. I know a contractor who has over 900 full-time employees. He has laid off over 500 and he is still going through the list to lay off more. Already we are struggling with unemployment in the country,” Mr. Cherry stated. He continued: “Now with the contractor who has laid off 500 workers, he may not be able to pay tax for his workers. Which means the government has lost directly. You have lost a lot of revenue from there and the contractor’s withholding tax, service taxes that he is supposed to pay you will also not get it.” Mr. Cherry added that the local banks are also suffering because contractors are unable to pay their debts owed to these banks. “There are a lot of debt portfolios in their books. They are chasing contractors here, left right centre. What kind of business is this, is this the kind of governance we elected our leaders for? Let’s change the status quo and look at national development with a national lens,” he stated.

The Ghana Chamber of Construction Industry (GhCCI) says the government’s inability to pay monies owed to local contractors is compounding the unemployment situation in the country. Speaking on the Morning Starr with Francis Abban the Chief Executive Officer for the Chamber, Mr. Emmanuel Cherry indicated that the government is collapsing the few jobs created in the system through the nonpayment of debts owed them. “The contractor has employed the services of artisan, suppliers and what have you. So just imagine how much employment just one contractor has generated. So, if you deliberately decide to punish them by not paying him just imagine how many jobs have been lost. “Today most of our frontline contractors have laid off workers. I know a contractor who has over 900 full-time employees. He has laid off over 500 and he is still going through the list to lay off more. Already we are struggling with unemployment in the country,” Mr. Cherry stated. He continued: “Now with the contractor who has laid off 500 workers, he may not be able to pay tax for his workers. Which means the government has lost directly. You have lost a lot of revenue from there and the contractor’s withholding tax, service taxes that he is supposed to pay you will also not get it.” Mr. Cherry added that the local banks are also suffering because contractors are unable to pay their debts owed to these banks. “There are a lot of debt portfolios in their books. They are chasing contractors here, left right centre. What kind of business is this, is this the kind of governance we elected our leaders for? Let’s change the status quo and look at national development with a national lens,” he stated.