Judgment debts are one of the banes of Ghana’s development process. One would think that with the country’s limited resources, its leaders would make decisions that would protect and preserve these resources and the country’s interests.
But on several occasions, successive governments and their functionaries have taken actions, including the reckless cancellation of Ghana’s contractual obligations, causing the country billions of Ghana cedis in judgment debts.
The manner in which some of the contracts that cause the judgment debts are cancelled and the persons involved in the arbitrations often lead to insinuations of proponents of the government colluding with private individuals to ‘create, loot, and share’ the nation’s scarce resources.
The latest judgment debt that has been slapped on the government of Ghana is the GHS94 million against the Food and Drugs Authority (FDA), to Tobinco Pharmaceuticals Limited over the unlawful destruction of unexpired drugs belonging to the company.
The timing of the ca
se and the defence put out by the FDA has led many to allege that this is another instance of the country’s resources being ‘looted and shared’.
The FDA has indicated that it would appeal the GHS94 million judgement debt.
Now, the things the state could do with GHS94 million which it has to cough up for Tobinco, forms just a tiny fraction of the billions of Ghana cedis in judgment debts awarded against Ghana.
GhanaWeb analyses this amount in terms of projects and presents this article that points to some government projects that this GHS94 million could have funded:
Kwame Nkrumah Circle Interchange (Circle Dubai):
The Kwame Nkrumah Circle Interchange (Circle Dubai), which was constructed under the John Dramani Mahama government, cost the state around GHS75 million.
With the GHS94 million, a similar edifice could have been constructed, and possibly, there could still be some GHS20 million left to attend to other things.
Phase 2 of the University of Ghana Medical Centre (UGMC):
The 2nd phase of the Univ
ersity of Ghana Medical Centre cost the state around $14.5 million in 2022, which is around GHS100 million, using the exchange rate in that year.
So, this GHS94 million the government is to pay to the FDA is nearly enough to cover the cost of the 2nd phase of the University of Ghana Medical Centre, which is today one of the prime hospitals in Africa.
Half of the cost of the 2nd phase of the Tema Motorway Roundabout project:
The government signed the final supplementary financial agreement with Japan for the 2nd phase of the Tema Motorway Roundabout project, which was a ¥3.369 billion grant, about $25 million (equivalent to GHS201 million in 2022).
The GHS94 million the state now has to cough up for Tobinco is almost half the funds it acquired for the 2nd phase of the Tema Motorway Roundabout project.
Alternatively, the GHS94 million Tobinco judgment can be used to pay for a number of government projects below:
Phase One of the rehabilitation of the Sunyani Airport:
Phase One of the rehabilitation of th
e Sunyani Airport is believed to cost around GHS52 million, and the over GHS94 million can be used to finance it.
Road projects the GHS94 million can be used to finance:
1. Construction of 750mm Diameter Concrete U-drain (135m) on Goaso-Akrodie Road (km 0+905-1+040 RHS): Lot 4 – GHS197,098.
2. Construction of 750mm Diameter Concrete U-drain (135m) on Goaso-Akrodie Road (km 1+175-1+310 RHS): Lot 6 – GHS198,455
3. Construction of 600mm Diameter Concrete U-drain (180m) on Goaso-Gambai No. 2 Road (km 32+750-32+930 LHS): Lot 8 – GHS199,207
4. Construction of (1,150m) Concrete Kerbs on Goaso-Gambai No. 2 (km 0+200-0+600 LHS), (km 1+100-1+200 RHS), (km 11+100-11+300 RHS) Road and Goaso-Akrodie Road (km 0+500-0+850): Lot 9 – GHS197,563
5. Construction of (1,150m) Concrete Kerbs on Goaso-Akrodie (km 0+850-1+000) and (Ayomsu-Goaso 500m B/S): Lot 10 – GHS196,875
All these kilometres of road cost the state less than GHS1 million. Imagine the number of kilometres of road GHS94 million can be used for.
Alternativel
y, this money could have been used to pay for the upgrading of the Assin Akropong-Odomasi Asibrem 22.18km road, which is believed to cost around GHS54 million.
It could have also paid for the upgrading of Kyibosohasowodze bungalow feeder road (14.50km), which cost around GHS30 million.
Also, the money could have been used to pay for the rehabilitation of the selected roads in Teshie Camp, Southern Command, Military Academy Training School Roads, and partial reconstruction of selected roads in Accra – LOT 1 (44.49KM); construction of Sunyani By-Pass Outer Ring from Kumasi Berekum Road, which costs around GHS80 million.
One Constituency, One million dollars:
One of the promises of the Nana Addo Dankwa Akufo-Addo government that has not been realised is the One Constituency, $1 million promise.
At least the ‘missing’ $3.5 million could have been used to realise this promise for 3 constituencies.
One Constituency, One Dam:
The government estimated that it costs GHS250,000 to construct ten Small Earth Dams
in its One Constituency, One Dam programme.
With GHS50 million, more than 20,000 earth dams could have been constructed across the country.
Payment of allowance of NABCO trainees:
Trainees of the Nations Builders Corps programme (NABCO), which ended in 2021, are believed to be owed 2 to 9 months arrears of their GHS700 monthly stipends. Even if the number of trainees owed was around 80,000, the $2.9 million could have been used to pay one month’s arrears of the trainees.
Payment of Student Loans:
The government in June 2024 released GHS20 million for the payment of loans to over 10,000 students in various private and public tertiary institutions across the country. This $3.5 million can be used to give loans to more than double the number of students.
BAI/AE
Hassan Ayariga is our guest on the latest edition of Election Desk on GhanaWeb TV with host, Etsey Atisu. Catch the full interview below:
Source: Ghana Web