An audit into government arrears has revealed that 35 contractors engaged under Ghana’s Agenda 111 hospital project received advance mobilisation payments totaling about $7.9 million but failed to begin work or carried out work that did not match the funds paid to them.
The disclosure was made in Parliament when Deputy Minister for Finance, Thomas Nyarko Ampem, delivered a statement on behalf of the Finance Minister, Dr Cassiel Ato Forson.
According to Mr Ampem, the contractors were paid mobilisation advances to enable them move to site and commence construction works under the ambitious healthcare infrastructure programme. However, the audit found that some contractors never mobilised to the project sites, while others undertook work that fell far below the value of the payments received.
He told lawmakers that the Ghana Audit Service has issued surcharge notices to the contractors involved in an effort to recover the funds or compel them to account for the payments made.
The findings have renewed concerns about financial oversight and project management within the Agenda 111 initiative, one of the largest healthcare infrastructure projects introduced under the administration of former President Nana Addo Dankwa Akufo-Addo and the New Patriotic Party (NPP).
Launched in 2021, the Agenda 111 programme was designed to construct 111 district and regional hospitals across the country to improve healthcare access, particularly in underserved communities.
Despite its ambitious goals, the programme has faced criticism over delays, rising project costs and questions regarding accountability in the execution of the projects.
Mr Ampem further disclosed that advance payment guarantees tied to the 35 contracts have already expired, leaving the government with limited contractual protection to recover the money if the contractors fail to comply with the surcharge notices issued by the Auditor-General.
The Ministry of Finance has not yet outlined additional legal steps that may be taken beyond the actions initiated by the Ghana Audit Service.
It also remains unclear how many of the planned 111 hospitals have been completed or are at advanced stages of construction, as scrutiny over the programme’s implementation continues.
