The new mayor of Kumasi, Mr Osei Assibey Antwi, has revealed that the Kumasi Metropolitan Assembly (KMA) was indebted to the tune of over Gh¢100 million.
According to him, beyond the Gh¢119,213,333.22 accumulated debt spanning several years, the assembly’s judgement debt portfolio increased from Gh₵6,427,287.75 to Gh₵50,602,874.43 between the period of October to December in 2016 alone.
Just last week, Meskworld company limited, one its contractors through their solicitors, LithurBrew and company served notice on the KMA that it would sue if the assembly fails to pay the sum GHC3,171,866.04 owed since 2008.
The visibly distraught Mr Assibey Antwi, made the revelation in Kumasi on Thursday at a meeting of the Kumasi assembly.
He told the gathering that the KMA is currently standing at the edge of a cliff and if it does not tread with caution, tact and quickly evolve a turnaround strategy to manage its debt stock, it shall fall into an abyss of insolvency.
Subsequently, he said the assembly was to seek legal opinion including the option of resorting to Alternative Dispute Resolution (ADR) to deal with all the outstanding court cases.
It is also to be guided by the Financial Management Act 2016 (Act 921), which seeks to “regulate the financial management of the public sector within a micro economic and fiscal framework; to define responsibilities of persons entrusted with the management and control of public funds, assets, liabilities, and resources, to ensure that public funds are sustainable and consistent.”
The KMA new boss is also to set up a project monitoring and control mechanism to ensure that the business of the assembly was run with a high sense of discipline and responsibility.
Mr Osei Assibey Antwi said his recent engagements with some of the contractors as well as site visits gave a clear indication that some of the service providers have not been living up to expectation.
And in order to accelerate progress on the backlog of projects whose completion times have elapsed, the KMA shall review all existing contracts including those that are pending.
The KMA boss said in order to succeed in the coming months, the assembly needed to forge partnership with central government, the Kumasi Traditional Council, the private sector, civil society organisation and all well-meaning individuals who have the growth and development of the metropolis at heart.
Among the steps being taken is to embark on a collective effort to mobilise resources, mutual accountability for delivery of service and programmes and effective communication and mutual respect to all.
As part of his initiative, Mr Antwi is to discuss with members for the construction of an office complex to house all its scattered units under one roof.
It is to be built under a public-private partnership relationship. Indeed, he indicated that since 2012, steps have been taken to have Messrs Hai Hong ETS Limited for the office complex to be constructed at US$33.3million.
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Source: Graphic.com.gh