The Minister-Designate for Roads and Highways, Kwame Governs Agbodza, has raised alarm over the significant debt burden within the road sector, which he says poses a major challenge to the country’s development efforts.
Speaking during his vetting before the Appointments Committee of Parliament on Monday, January 20, 2025, Agbodza disclosed that the road sector’s total debt stands at a staggering GH₵100 billion in commitments.
This includes GH₵20 billion in unpaid government certificates and an additional GH₵15 billion owed to the Road Fund.
The Minister-Designate attributed the ballooning debt to the previous New Patriotic Party (NPP) administration, highlighting the need for urgent financial restructuring.
“In 2017, my predecessor expressed concerns over a GH₵17 billion commitment debt and GH₵1.5 billion in unpaid certificates left by the NDC government. However, as of January 2025, the NPP government has left a minimum of GHS 100 billion in commitments, GH₵20 billion in unpaid certificates, and GH₵15 billion in Road Fund debts,” he stated.
Kwame Agbodza also revealed that a GH₵113 million debt in 2018 has now ballooned to GHS 665 million due to accumulated interest. By 2020, the debt had grown to GH₵424 million, with accrued interest pushing it to GH₵1.5 billion.
“These figures are alarming. How do I explain to taxpayers in Adaklu that interest alone on debts from previous years now amounts to billions? This is unsustainable,” he said.
He further outlined the need for better contract management and financial accountability within the sector, pointing out that wasteful spending has exacerbated the financial strain.
Mr Agbodza pledged to collaborate with the Finance Ministry, should he be approved, to address the growing debt and ensure more prudent management of resources in the road sector. He concluded emphatically, “This cannot continue.”
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