Financial Effects of Ghana Road Fund Misappropriation: A Case Study on the Ghana Highway Authority

Abstract

The study on the financial effect of road fund had to be conducted because of the problem of limited attention and literature committed towards this aspect of research in Ghana’s knowledge space. Following this problem the current study investigated financial effects of Ghana road fund misappropriation in the Ghana Highway Authority. The specific objectives include; to help identify the causes of the misappropriation funds to projects by the road agencies, to run a comparative analyses of funding road developmental projects as against road rehabilitation projects, to assess the effect of funds misappropriation within the road construction sector of Ghana. The study adopted the quantitative method of research. The study used descriptive and cross sectional designs. The data was sampled from staff, consultants and contractors from the Ghana Highway Authority. All together 35 responses were gathered. The instrument used for data gathering is well-structured questionnaire as well as an annual report spanning 2015-2018. The study was concluded based on the key objectives outlined in this study. The study therefore concludes that the causes of the misappropriation of road funds include the delays in monthly payment of vital projects, Inflation rates, Project disputes/project litigation, schedule completion slippage and government interference. In comparing developmental projects to rehabilitation road projects respondents indicated that the later was less expensive- over GHS 99,135,117.27 was lost through developmental projects alone. Also government role in misappropriating road funds can lead to corruption.