Ghana is taking steps to recover nearly $30 million from Indian construction firm JMC Projects over an alleged failure to commence work on a major road project despite receiving mobilisation funds.
The announcement was made by the Minister for Roads and Highways, Kwame Governs Agbodza, who said the government will initiate legal proceedings in collaboration with the Attorney General’s Department Ghana.
According to the Minister, JMC secured the contract after demonstrating its technical and financial capacity and appealing for consideration during the procurement process.
However, despite receiving close to $30 million as mobilisation payment, the company allegedly failed to begin any substantive work on the project.
“There is one unfortunate situation… almost US$30 million mobilisation, they took the money and didn't even do one per cent of the work,” Mr Agbodza revealed.
Government Moves to Recover Funds
The Roads Minister emphasised that the lack of progress on the project has compelled the government to act to safeguard public funds.
He indicated that legal measures are being prepared to ensure the recovery process follows due legal procedures.
“We intend next week to work with the Attorney General to further pursue getting our money back within the law,” he stated.
While the specific road project was not disclosed, the Minister stressed that the government would not tolerate breaches of contract that delay critical infrastructure delivery.
The move signals a tougher stance on contractor accountability, particularly for projects financed with public funds and approved by Parliament.
Company Background
JMC, an Indian construction firm with operations across multiple countries, has been involved in projects ranging from highways and bridges to power plants and urban developments.
The company has historically promoted its commitment to efficiency, timely delivery, and compliance. However, the Ghanaian authorities’ action underscores growing scrutiny over contractor performance in major infrastructure projects.
The outcome of the legal process is expected to set an important precedent for enforcing accountability in Ghana’s infrastructure sector.
READ ALSO: Weija Paediatric Hospital Delay Linked to Procurement Issues
