The Kumasi Metropolitan Assembly (KMA) is grappling with a severe financial crisis, with debts reported to have exceeded GH₵300 million, crippling its ability to deliver essential services and pursue new development projects.
According to the Metropolitan Chief Executive (MCE), Richard Agyemang Ofori Boadi, a significant portion of the Assembly’s internally generated funds is being drained by judgment debts, mostly from protracted contractual disputes. This, he explained, has left the KMA unable to sustain critical operations.
“The judgment debt alone will get to GH₵300 million. Well, not the entire debt of KMA; the entire debt of KMA is way beyond that,” he said.
Mr. Ofori Boadi squarely blamed the ballooning liabilities on what he described as “irresponsible management” by past administrations, accusing them of awarding contracts without proper negotiations or adherence to due process.
“One such case involved a dam site contract that ended up in court, and now the Assembly is saddled with a massive judgment debt,” he disclosed.
While some progress has been made in reducing the burden through settlements—including the resolution of GH₵12 million and GH₵7 million cases—the MCE admitted that larger obligations remain daunting. He singled out a GH₵20 million judgment debt awarded to FICO FD, which he said is “virtually killing” the Assembly.
Despite the staggering liabilities, Mr. Ofori Boadi rejected suggestions that the KMA is bankrupt, insisting that the Assembly remains operational. “I don’t think so. We are in a challenging circumstance. KMA is in a difficult situation, but we are managing. I’ve even had to use my own resources at times to keep things running,” he stressed.
The crisis comes at a time when Kumasi, Ghana’s second-largest city, is struggling with mounting urban challenges, including waste management, traffic congestion, and deteriorating infrastructure. With limited resources and ballooning debt obligations, the KMA faces an uphill task in restoring confidence and delivering on its mandate to residents.
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