Some cocoa road contractors in Ghana have given the government and COCOBOD 14 working days ultimatum to settle all outstanding Interim Payment Certificates (IPCs).

The contractors threatened that the failure of the government to meet the deadline will attract their wrath.

According to the aggrieved cocoa road contractors, projects that were awarded in 2015/2016 under the COCOBOD CEO Dr. Stephen Opuni totalling a little above 4.7 billion Ghana Cedis are yet to be settled.

These contracts, the statement indicated, were being executed by various contractors nationwide and payments were being made steadily by Cocobod according to their payment regime.

These projects, however, were stalled in 2017, when the new government under His Excellency Nana Addo Dankwah Akufo-Addo took over.

Two years later, contractors were asked to go back to the site which resulted in a huge financial burden. COCOBOD however put a fiat on payment of interest on delayed payment.

Below is the statement:

COCOA ROAD CONTRACTORS GIVE GOVERNMENT 14 DAYS ULTIMATUM OR FACE THEIR WRATH

BACKGROUND

Some cocoa road contractors in Ghana have given the government and Cocobod 14 working days ultimatum to settle all the outstanding Interim Payment Certificates (IPCs) and failure to do so will attract their wrath.

According to the aggrieved cocoa road contractors in a statement released on August 8th, 2022, they made reference to cocoa road projects awarded in 2015/2016 under the CEO Dr. Stephen Opuni totaling a little above 4.7 billion Ghana Cedis.

These contracts were being executed by various contractors nationwide and payment were being made steadily by Cocobod according to their payment regime.

These projects however, were stalled in 2017, when the new government under His Excellency Nana Addo Danquah Akuffo Addo took over.

Two years later, contractors were asked to go back to site which resulted in a huge financial burden of contractors mobilizing back to site. Unfortunately, Cocobod has put a fiat on payment of interest on delayed payment.

The recent projects awarded by the current management of Cocobod, headed by Hon. Joseph Boahen Aidoo amounts to a little over 14 billion Ghana Cedis. In spite of payment challenges, contractors were on site working to ensure completion of these projects.

It will interest you to note that for more than two years, Cocobod has ceased making prompt payment to contractors which has created a huge financial vacuum on the projects.

This information is important to the general public, the Ministry of Roads and Highways and the Presidency because these contracts were signed in good faith and contractors were expectant of prompt payment but recent developments in the payment schedule of Cocobod leaves much to be desired.

Payment of IPCs raised are expected to be paid within 90 days but here we are, some IPCs have been in the system for over two years.

This situation has forced over 95% of Cocoa Road contractors out of site in recent time with no hope of returning to continue or complete these projects.

It is worth mentioning that, considering the rise in inflation and materials, it is extremely difficult for contractors to manage the huge financial burden. Based on these frustrations and hardships, we wish to petition the Chief Executive Officer of Cocobod to effect payment of outstanding IPCs within 14 working days from today. If this ultimatum elapses without any concrete evidence of payment, Cocobod will face the wrath of cocoa road contractors.

Signed by

Emmanuel Cherry

CEO Ghana Chamber of Construction Industry

Source: Ghanaweb