The Ghana Road Fund owes contractors over GH¢6 billion, attributing this debt to limited inflows resulting from the capping law.
In 2017, a law was enacted by parliament to restrict the allocation of funds to various statutory funds to a maximum of 25% of tax revenue.
Speaking at the launching of the road maintenance app, Hon. Frank Annoh-Dompreh, Chairman of the Road Fund, called for the Road Fund to be exempted from the capping law in a speech read on his behalf.
He stated, “The fund isn’t doing too well, indebted in excess of GH¢6,000,000,000 to contractors for works executed, whilst revenue from the inflows is limited by the capping act.”
Annoh-Dompreh intends to engage with the Ministry of Finance and Cabinet to consider exempting the Road Fund from the Earmarked Fund Capping and Realignment Act 2017 (Act 947).
This exemption would make funds available to support the initiative and address the debt owed to maintenance contractors, enabling them to continue working on the roads.
Source:expressnewsghana.com