Gov’t Releases GH₵11.6m to Ease Railway Salary Crisis After Months of Arrears

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Gov’t Releases GH₵11.6m to Ease Railway Salary Crisis After Months of Arrears

The government has begun releasing GH₵11.6 million to partially settle outstanding salary arrears owed to railway workers, according to Dr. Frederick Appoh, Chief Executive Officer of the Ghana Railway Development Authority.

The move comes in response to recent protests by the Railway Workers Union over delays in salary payments, which had stretched up to 14 months.

Speaking on Citi Eyewitness News on March 26, Dr. Appoh revealed that when the current management took over, they found that the unpaid salaries dated back to as far as 2024.

He explained that although official records suggested a workforce of around 1,300 employees, a forensic audit later confirmed the actual number to be 960 workers.

To address the financial strain, the Authority, working alongside the Ghana Railway Company Limited, explored internal revenue options, including the sale of scrap materials, which generated about GH₵21.5 million.

However, part of these funds had to be used to settle claims from contractors who reported unpaid consignments worth approximately GH₵10 million, reducing the amount available for salaries.

Dr. Appoh confirmed that the Ministry of Finance has now approved the release of GH₵11.6 million, which has been forwarded to the Ministry of Transport to facilitate payments to workers.

He noted that the amount is expected to cover about seven months of arrears for the entire workforce.

To prevent future occurrences, the Authority plans to collaborate with key stakeholders, including the Trades Union Congress, the Railway Workers Union, the National Labour Commission, and the Ministry of Transport to develop a fair and sustainable payment structure.

He also indicated that efforts are ongoing to identify additional funding sources to fully clear the remaining arrears.

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