Managers of the Ghana Education Trust Fund (GETFund), have blamed the Ministry of Finance for its inability to pay contractors who the Fund owes close to GHc 300 million.
This follows a threat by the contractors to embark on a demonstration at the Flagstaff House on Tuesday, to demand the payment of money owed them by the GETFund.
According to the contractors, they are owed over GHc 500 million spanning a period of six months, a situation that is crippling their businesses, as most of them go for loans to pre-finance the projects.
Speaking to Citi News, the Deputy Administrator for GETFund, Stephen Baffoe, indicated that until the Ministry of Finance releases money to the Fund, they cannot pay the contractors. “It is true that some contractors have worked and their claims have been processed for six months or more.
The Ministry of Finance has to release funds for the GETFund to be able to pay.” Mr. Baffoe explained that, the GETFund cannot release funds on its own as “it depends on 2.5 percent VAT and that is credited to the Ghana Revenue Authority, accounted to the Ministry of Finance and released by the Ministry of Finance to all statutory fund receivers including the GETFund.”
“All we are waiting for is the Ministry of Finance to release the monies owed the GETFund from July up to the end of October. We are looking at between GHc 280 million and GHc 300 million,” he added.
The last time some contractors affiliated to the GETFund agitated over the payment of funds was in 2014, when Getfund Contractors Association threatened to lock up all school buildings they had constructed if government failed to pay them outstanding arrears for work done.
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