The Minister of Roads and Highways, Governs Kwame Agbodza, has referred Indian construction firm JMC Projects to the Attorney-General and Minister of Justice for failing to execute construction works on the Tamale-Savelugu-Walewale road despite receiving $29.6 million in payments.
According to the Minister, JMC Projects was paid 20 per cent of the total $158 million contract sum but had only completed one per cent of the first phase of the 113 km road upgrade from Savelugu to Walewale.
Mr. Agbodza revealed that after receiving the mobilisation fund, the company attempted to change its name to Kalpatura Projects.
The project, which commenced in June 2022, was scheduled for completion in December 2025. However, speaking in Parliament on Thursday, Mr. Agbodza expressed concern over the contractor’s attempt to secure an additional $14 million for mobilising equipment and staff—an amount the government refused to pay.
“The Indian construction firm later issued a notice of termination of contract on March 11, 2024, and attempted to clandestinely transport its construction equipment at the project site in northern Ghana to another project site in Guinea without the explicit consent of the Ministry of Roads and Highways,” the minister disclosed.
The contractor cited debt restructuring as the reason for abandoning the project, despite having drawn down almost $30 million, following a sod-cutting ceremony by former Vice President Dr. Mahamudu Bawumia on June 17, 2024.
Mr. Agbodza noted that the Vice President had assured Ghanaians that work would resume after the debt restructuring, unaware that the contractor had already issued a termination notice months earlier.
“So, the Vice President then did not even know that the contractor had already served notice to terminate the project in March, and he was promising in June that the work would be resumed,” the minister stated.
At a time when Ghana owes road contractors over GH¢20 billion, Mr. Agbodza expressed frustration at the situation. “So, for us to be able to find $30 million and pay a contractor, and he did absolutely no work, is worrying,” he lamented.
The Minister warned that the contractor must either complete the project up to the amount received or face legal consequences. “This contractor will be asked to either do the work up to $30 million, or we make the necessary recommendations for actions to be taken within our country,” he cautioned.
With only one per cent of the work completed, Mr. Agbodza reaffirmed that the government would pursue all legal avenues to retrieve the funds if the project is not completed.
He further criticised the previous New Patriotic Party (NPP) government, questioning how it could mobilise $30 million to pay a foreign contractor while still owing Ghanaian road contractors GH¢21 billion.
