Government has begun paying road contractors with up to GH5 million validated claims, persons close to the transaction have told Joy Business.<\/p>\n
According to government sources, this is in a bid to get road contractors back on-site to address the poor state of some road network in the country.<\/p>\n
This move is coming on back complains by some contractors over delays in securing payments for road projects done as well as those that are ongoing.<\/p>\n
How is this payment being done?<\/b><\/p>\n
The payment JoyBusiness has learned\u00a0was being done through Fidelity Bank and it is being\u00a0done through a zero per cent discount\u00a0for contractors owing under \u00a25 million cedis.<\/p>\n
\u201cThis also means that all contractors owed over \u00a25 million will be paid up to \u00a25 million by government covered at a 0% discount\u201d a source added.<\/p>\n
Persons close to the paying bank have indicated that it can be described as zero discounting, which they believe would provide an avenue providing liquidity to contractors.<\/p>\n
Background<\/b>
\nGovernment since 2018 midyear budget review expressed a strong eagerness to implement a financing strategy that will facilitate the payment of debts owed to contractors, going as far back as\u00a0\u00a02013.<\/p>\n
The number of contractors that have been paid as at the October 10 is\u00a0\u00a063 out of 192 contractors that have signed up for the interim payment certificates IPCs.<\/p>\n
Government is there force calling on contractors with validated claims to come forward starting from\u00a0Friday\u00a0for their payments.<\/p>\n
The payments are expected to cover a historical\u00a082%\u00a0of government\u2019s outstanding validated debts with road contractors, 1226 in total, from road fund.<\/p>\n
Government will honour all arrears under \u00a25 million, which constitutes 80% of contractors owed (192 in total).<\/p>\n","protected":false},"excerpt":{"rendered":"
Government has begun paying road contractors with up to GH5 million validated claims, persons close to the transaction have told Joy Business. According to government sources, this is in a bid to get road contractors back on-site to address the poor state of some road network in the country. This move is coming on back […]<\/p>\n","protected":false},"author":4,"featured_media":11346,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_post_source_name":"","_post_source_url":"","footnotes":""},"categories":[61],"tags":[7358,5249,8364,2961,11356,9643,2264,1654,10917,9134,3980,8840,3954],"class_list":["post-11629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-bank","tag-budget","tag-cedis","tag-contractors","tag-delays","tag-fund","tag-government","tag-mr-ken-ofori-atta","tag-poor","tag-road-contractors","tag-road-fund","tag-strong","tag-will"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/11629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/comments?post=11629"}],"version-history":[{"count":0,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/11629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media\/11346"}],"wp:attachment":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media?parent=11629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/categories?post=11629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/tags?post=11629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}