By: Yaw Sarpong
The Association of Building and Civil Engineering Contractors of Ghana (ABCECG), will next week petition the Minister of Water Resources Works and Housing, urging the sector ministry to deduct 0.5% development levy at source from payment certificates.
The payment certificates are monies paid to the contractors after executing government contracts.
In an interview with the National President of the association, Mr. Martins Anim Nnuro said the members of the association took the decision the 6th Annual General Meeting (AGM) held in Accra.
According to him the decision was to empower the association financially. ‘Our focus is raise money for the association. Members dues alone cannot continue to support the association, and that was why we took that decision,’ he added.
‘What we are asking the sector ministry to do is that, anytime we execute a project for the government, 0.5% development levy should be deducted from the (payment certificates) money to be paid to any contractor, whether an individual or the association,’ said Mr. Nnuro.
He stated that when they work and put in claims, small percentage of the claim should deducted for the association to be able to run it effectively and also be able to stand firm.
He said if the money is deducted from source the governmental level, it is better than members paying to the association after they have been paid by the government.
Daily Express gathered that the association has been discussing this issue with the sector ministry for the past three years.
However, the Ministry was okay with the association decision, and asked the leaders of the association to do a research and comes out with finding or resolutions to support their decision, so that the ministry will take it final decision on that.
The ABCECG found out that, their sister association, Association of Road Constructors (ASROC) are already into it and that has helped ASROC a lot. According to ABCECG, it is the 0.5% development levy which has helps ASROC for all the years.
“ASROC also deduct 0.5% development levy at source from the payment certificates for over 10 years now,” he noted.
Mr. Nnuro said their decision will help the association go a long way in developing the association and equipping its members as well. “It is our hope that the deduction will take effect before the close of the year,” he added.
The association has a membership of over 2,000 across the country.