Roads Ministry to recover US$30 million from Indian contractor JMC over abandoned project

The Ministry of Roads and Highways Ghana has announced plans to take legal action against JMC Projects in a bid to recover approximately US$30 million in public funds over an alleged breach of contract involving a stalled road project.

Speaking on the matter, the Minister for Roads and Highways, Kwame Governs Agbodza, revealed that the contractor received a substantial mobilisation payment but failed to commence any meaningful work on the project site.

According to the Minister, the contract formed part of a larger project valued at about US$158.6 million, which had received parliamentary approval and was expected to be completed by last year. However, despite assurances from the company regarding its technical expertise and financial capacity, the project has seen no progress.

“There is one unfortunate situation, where we paid JMC at the time when Parliament approved, I think US$158.6 million… Almost US$30 million mobilisation, they took the money and didn't even do one per cent of the work,” Mr Agbodza stated.

The Minister described the situation as unacceptable, noting that the failure to deliver on such a critical infrastructure project not only delays development but also represents a significant loss of public funds. He stressed that the government is committed to enforcing accountability and ensuring that contractors meet their obligations.

Although the specific road project in question was not disclosed, the Minister indicated that the lack of progress has forced the government to act decisively. He confirmed that the Ministry is working closely with the Attorney General’s Department Ghana to initiate legal proceedings aimed at recovering the funds.

“We intend next week to work with the Attorney General to further pursue getting our money back within the law,” he added.

The move signals a tougher stance by the government on contract enforcement, particularly in the infrastructure sector, where delays and abandoned projects have long been a concern.

JMC Projects, an Indian-based construction company with operations in multiple countries, has been involved in a wide range of infrastructure developments globally. These include highways, bridges, flyovers, hospitals, power plants, and urban infrastructure projects.

The company has previously highlighted its commitment to quality delivery, cost efficiency, sustainability, and adherence to regulatory standards. However, the current dispute in Ghana raises questions about project oversight, due diligence, and contract management in public infrastructure delivery.

The case is expected to draw significant public and political attention as authorities seek to recover the funds and reinforce accountability in the use of state resources.