GH¢3.7bn debt crisis hits Defence Ministry, food suppliers consider halting services

The Defence Ministry is grappling with a significant debt crisis, as food suppliers threaten 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 stabilise the Ministry’s financial standing.

Addressing Parliament on Friday, 21st March 2025, Defence Minister Dr Edward Omane Boamah revealed that the Finance Ministry is actively working to clear the arrears.

He acknowledged the gravity of the situation, stressing 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 back 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.

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