The Minister of Roads and Highways, Governs Kwame Agbodza, has referred Indian construction firm JMC Projects to the Attorney-General and Minister for Justice after the company allegedly received $29.6 million in mobilization funds but failed to execute the Tamale-Savelugu-Walewale road project.
According to the minister, the $29.6 million payment represented 20% of the total $158 million contract sum. Yet, the contractor had completed just one per cent of the first phase of the 113 km road, which spans from Savelugu to Walewale. The project, which began in June 2022, was expected to be completed by December 2025.
Mr Agbodza told Parliament that the contractor made efforts to change its name to Kalpatura Projects after receiving the funds. He also disclosed that the company later demanded an additional $14 million, claiming it had mobilized staff and equipment to the site—a request the government rejected.
In March 2024, the company served a notice of contract termination and allegedly attempted to relocate its equipment from the Ghana site to another project in Guinea without the ministry’s approval.
The minister said the contractor cited Ghana’s domestic debt restructuring as the reason for halting the project. He added that this move came after the firm had already drawn down nearly $30 million following a sod-cutting ceremony led by former Vice-President Mahamudu Bawumia on June 17, 2024.
“Unbeknownst to the former Vice-President, who promised the project would resume, the contractor had already notified the ministry of its withdrawal months earlier,” Mr Agbodza revealed.
He expressed frustration over the loss, stating, “At a time Ghana owed contractors over GH¢20 billion, it’s disturbing that we managed to pay $30 million to a firm that delivered no meaningful work.”
The minister warned that JMC Projects would either be compelled to complete work equivalent to the amount paid or face legal consequences based on recommendations from the ministry.
