Finance minister Dr. Mohammed Amin Adam
The Public Accounts Committee has directed the Ministry of Finance to release the budgetary allocation to the Ministry of Works and Housing and its agencies, including the Ghana Hydrological Authority and the Department of Rural Housing, to complete abandoned projects started in 2019.
The directive was issued during the Public Accounts Committee sitting in Parliament on Thursday, 1 August.
The report indicated that over GH¢83 million was released to the Ministry of Works and Housing. However, the Committee noted an increase in outstanding bills and commitments of the Ministry, amounting to over GH¢2 billion.
The Committee observed that the budgetary allocation to the Ministry of Works and Housing for the 2023 fiscal year was inadequate and could not settle the outstanding bills. The report further cited the Ministry's lack of interim payment certificates and liquidation damages, urging the Minister of Finance to adequately release funds to the Ministry to complete the projects.
PAC was of the view that with the rains setting in, and Accra experiencing flooding whenever it rains, completing these projects is essential to save lives and properties.
The Committee also indicated that about 30 projects have not started and recommended terminating those contracts due to the lack of explanation for their failure.
The Minister of Works and Housing, Kojo Oppong Nkrumah, stated that they have sought a legal opinion on the type of contracts signed to determine whether rate reviews are allowed.
Some contracts explicitly state that rate reviews are not possible. Where rate reviews are applicable, they can be applied. Where they are not, an addendum can be made as an agreement between the two parties, considering all the facts, so that the projects can proceed accordingly.
“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,” he said.
