Kwame Governs Agbodza is the Minister of Roads and Highways

The Minister of Roads and Highways, Kwame Governs Agbodza, has referred Indian construction firm, JMC Projects, to the Attorney General and Minister of Justice for questioning after the company received $29.6 million but failed to execute the Tamale-Savelugu-Walewale Road project.

According to a graphic.com.gh report on June 9, 2025, the amount paid represents 20 percent of the full contract sum of $158 million.

However, the company has reportedly completed only a fraction of the first phase of construction, intended to upgrade the 113-kilometre stretch between Savelugu and Walewale in the Northern Region.

Agbodza further disclosed that after receiving the mobilisation fund, JMC Projects attempted to rename itself as Kalpatura Projects, raising concerns about transparency and accountability.

Authorities are expected to take further action to ensure compliance and progress on the critical road project.

The project, which commenced in June 2022, was originally slated for completion in December 2025.

Agbodza’s response was to answer a question from the Majority Leader, regarding the status of the design-build contract for the Tamale-Savelugu-Walewale road, during a parliamentary session on Friday, June 6, 2025.

Expressing his frustration, Agbodza revealed that the Indian contractor had attempted to claim an additional $14 million for purportedly mobilising equipment and staff to the site.

However, the government declined to approve the payment.

“The Indian construction firm later issued a notice of termination of contract on March 11, 2024 and attempted to clandestinely transport its construction equipment at the project site in northern Ghana to another project site in Guinea, without the explicit consent of the Ministry of Roads and Highways,” graphic.com.gh quoted Agbodza.

Addressing the reasons behind the Indian contractor's abandonment of the project, Agbodza stated that the company attributed its decision to ongoing debt restructuring, which had stalled the progress of the project.

He further noted that this occurred despite the contractor having already drawn down nearly $30 million following the sod-cutting ceremony by former Vice-President Mahamudu Bawumia on June 17, 2024.

The minister added that, on that day, the former Vice-President assured the nation that the project would resume once the debt restructuring exercise was completed.

However, unknown to him, the contractor had already issued a notice of termination on March 11.

“So, the Vice-President then did not even know that the contractor had already served notice to terminate the project in March,”he said.

Agbodza further disclosed in Parliament that this issue occurred at a time when Ghana owed contractors more than GH¢20 billion saying that “So, for us to be able to find $30 million and pay a contractor, when he did absolutely no work, is worrying.”

“This contractor will be asked to either do the work up to $30 million or we make the necessary recommendations for actions to be taken within our country,” the minister warned.

Legal action

Other media reports have indicated that the roads minister stated that, having completed only one percent of the work, the Indian construction firm must either fulfill its obligation of executing the road project or face legal action as the government seeks to recover the funds paid.

He expressed surprise that, despite the New Patriotic Party (NPP) government's outstanding debt of GH¢21 billion to Ghanaian road contractors, it was able to mobilise nearly $30 million for a foreign contractor, without any tangible work completed.

The $158 million contract, awarded in 2022, was slated for completion within 42 months by December 2025.

However, as at the time of filing this report, the contractor has abandoned the site.

VKB/VPO

Also, watch the latest news in Twi on GhanaWeb TV