Lumuel Zerubbabel Baah, a Ghanaian contractor, disclosed that upfront payments of 10 to 20 percent are routinely demanded to advance public works contracts. These payments are required before any work commences. Baah characterizes these demands as a 'toll' that siphons funds from essential projects.
This systemic corruption means that a significant portion of project budgets disappears before implementation starts. Consequently, insufficient funds remain to complete the intended work. The practice directly leads to widespread unfinished projects and poor infrastructure development.
This issue fits into Ghana’s broader struggle with public sector corruption, which consistently ranks as a major barrier to economic development. Data from Transparency International’s Corruption Perception Index consistently places Ghana lower than desired. Such practices undermine efficient public spending and deter legitimate private sector participation. This culture of 'everybody is doing it' highlights deep-seated institutional challenges despite various governmental anti-corruption initiatives.
Baah recounted his personal experience, stating that his refusal to pay these upfront demands led to retaliation. His payment certificates for completed work were deliberately delayed for six months. He was told by officials that the authorized signatory was unavailable, while other contractors who paid received prompt approvals. Baah said he was informed that his threatened lawsuit would 'come to nothing because everybody is doing it'.
The prevalence of these demands suggests a continuing challenge for Ghana's economic future and public finance management. These practices weaken the rule of law and erode public trust in government and civil service institutions. Decision-makers must address this systemic issue to attract ethical investors and ensure effective use of public funds for national development. The markets will watch closely for any concrete steps taken to combat this entrenched corruption.
Baah also noted that some projects are awarded not based on merit but on payments made to political campaign coffers. He cited one instance where a competitor won a contract after bidding GHS 5 million higher than his company. This specific example demonstrates how corruption distorts fair competition and market efficiency. Such practices inflate project costs and compromise the quality and timely delivery of infrastructure.
More recently, the corruption has evolved; Baah knows someone who was offered a project on condition of paying GHS 8 million upfront. This offer included the option to take on five similar projects if GHS 40 million could be paid upfront. This indicates the increasing scale and sophistication of these illicit financial demands. The contractor emphasizes that this 'architecture of underdevelopment' persists across political administrations, undermining national progress.
The long-term implications are severe, extending beyond financial losses. It teaches a generation that merit is secondary to illicit payments. This erodes the belief in fair processes and public accountability. Rebuilding trust and a culture of integrity is far more challenging than constructing any physical infrastructure. This institutionalized corruption jeopardizes Ghana's economic stability and its ability to achieve sustainable development goals.