Today in History: Contractors going bankrupt, pay them – Nduom

On August 10, 2019, President of Groupe Nduom, Dr. Paa Kwesi Nduom, entreated government to settle its debts owed local contractors.

He explained that government's failure to pay contractors [customers, investors] led to the lock-up of GH¢2.2 billion from Gold Coast Fund Management.

In a social media post sighted by GhanaWeb, Paa Kwesi Nduom said, “When we keep fighting for Ghanaian contractors to be paid, we are fighting for customers/investors to get their money. How much? GH¢2.2 billion is currently locked up in the process from Gold Coast Fund Management alone."

Read the full story originally published on August 10, 2019 by ClassFM.

Chairman of Groupe Nduom, Dr Paa Kwesi Nduom, has said the delay by the government in paying local contractors, some of whom, he said, are customers or investors, has led to the lock-up of GHS2.2 billion from the Groupe’s Gold Coast Fund Management, alone.

Other Ghanaian financial institutions, he said, “Have funds locked up in infrastructure projects. The contractors are going bankrupt. The customers have it worse. They are suffering. When a contractor is not paid after three years of completing a job, the financial institution does not get paid. The customers who invested their monies with the financial institutions don’t get paid”.

“Who should fund infrastructure – roads, bridges, schools, etc. – in Ghana?”, the former presidential candidate asked, adding: “Gold Coast has been doing it for 15 years. Over 14 billion Ghana Cedis invested. Now with a portfolio of 2.2 billion Ghana Cedis”.

“It is the government that stopped giving advance payment to contractors and asked them to pre-finance projects. Gold Coast stepped in to support our indigenous Ghanaian contractors and has funded over 600 projects. This is a good thing the company has done.

“Our concern is to get the payment process going so contractors can complete projects, get them certified, get paid so they can pay back what they owe to Gold Coast so that Gold Coast can pay back money to its customers/investors.

“This is not Nduom’s money. It is not politics. It is pocket-level economics. The money is in Ghana with government agencies and in infrastructure projects”, he said.

Dr Nduom added: “This is not the only investment made by Gold Coast, which is why it paid back over 1 billion Ghana cedis in 2018 and has paid about GHS100 million this year”.

Recently, a coalition of local contractors threatened to lock all public schools and facilities they built if the government delayed further in paying them their funds.

ESA/MA