News:
March 24, 2025
Ministry of Defence is facing a significant debt crisis, as food suppliers threatened to withdraw their services over outstanding payments.
The government owes these suppliers GH¢275 million, an amount accumulated over 17 months, raising concerns about the sustenance of the Ghana Armed Forces.
Beyond food supplies, the Ministry’s total liabilities have surged to GH¢3.7 billion, covering various financial obligations, including the supply and repair of equipment, as well as the procurement of essential machinery.
The scale of the debt has prompted urgent discussions on how to stabilize the Ministry’s financial standing.
Sector Minister Dr. Edward Kofi Omane Boamah on the floor of the House on Friday, March 22, 2025, revealed that the Finance Ministry is actively working to clear the arrears.
The Minister recognized the gravity of the situation, and stressed the need for immediate intervention to prevent disruptions within the Ghana Armed Forces.
“It must be placed on record that the outstanding indebtedness in terms of claims is almost GH¢3.7 billion, and this includes debt owed to food suppliers, costs related to equipment supply and repair, and the provision of machinery,” Dr Boamah stated.
He further highlighted the food suppliers’ warning, emphasising, “Mr Speaker, we all know soldiers should not and must not march on empty stomachs.
However, food suppliers have threatened to halt supplies due to the government’s indebtedness, which dates to August 2023.”
Despite these financial challenges, Dr Boamah assured Parliament that efforts are underway to resolve the crisis.
He expressed confidence in the Finance Minister’s commitment to keeping up with current financial obligations while implementing measures to gradually settle the substantial arrears.
Kwaku Sakyi-Danso/Ghanamps.com