Finance Minister Ken Ofori-Atta has announced that government is seeking to re-introduce road tolls on some selected roads to generate revenue for the payment of some debts.
He stated that site works are expected to commence in September 2022 on the
Accra Tema Motorway and Extension PPP Project (27.7km) which is currently at the procurement stage.
“The Government of Ghana has made a strategic decision, in line with the Public Private Partnership Act, 2020 (Act 1039) to procure the Accra-Tema Motorway and Extensions Project through GIIF with a mandate to deliver a GIIF-led PPP financing solution, where maximum funds are raised from the market, but majority ownership of the project remains with GIIF on behalf of the Ghanaian Government,†he said.
The minister also revealed that the draft Concession Agreement (CA) between GIIF and MoRH is currently under review by GIIF, MoRH, the Office of the Attorney-General and the Ministry of Finance after which the collection of road tolls will begin.
“When completed, the CA is expected to be approved by the PPP Committee, Cabinet and Parliament. The completed road will be tolled to recover the whole life cost of the completed infrastructure as well as pay lenders and provide a return for equity investors. The Government of Ghana shall provide funding through GIIF to take equity in the Special Purpose Vehicle to be created by GIIF for the project,†he told Parliament on July 25.
Meanwhile, road tolls were abolished in the 2022 budget after an announcement by the Finance Minister in November 2021.
Finance Minister Ken Ofori-Atta is presenting Government’s Mid-Year Review of the Budget Statement and Economic Policy for the 2022 fiscal year.
The minister is expected to address economic issues, including the measures and policies the government has implemented in various sectors, in order to deal with the current economic crisis that the country is currently experiencing.
The government’s decision to apply for an IMF bailout, the E-failure Levy’s to generate the anticipated revenue, and other problems with revenue performance for the first half of the year are likely to be discussed.
The Mid-Year Budget Review is in accordance with Public Financial Management Act of 2016 and Article 179 of the 1992 Constitution (Act 921).
The Finance Minister,Ken Ofori Atta, risks losing his job as the Minority caucus in parliament is gathering signatures to kick start a vote of censure proceedings against him.
The move seeks to invoke article 82 of the constitution which provides the procedure of removing a Minister of State through proceedings in parliament.
The finance minister has been in the news since the government made a U-turn to seek a bailout program from the International Monetary Fund (IMF). The U-turn came after his earlier outspoken stance against Ghana going for an IMF program.
Many have since called for his removal from office, arguing that doing so could help boost investor confidence.
So far, the Minority in Parliament is reported to have secured over 100 signatures of colleagues to further their quest to secure his removal.
If the motion is admitted, the Minister for Finance will be the second in recent times to have such a motion filed against him following that of the Minister of Health which is still pending in the house.
Finance Minister, Ken Ofori Atta a few days ago told Parliament that all outstanding funds for Planting for Food and Jobs for 2021 had been released.
The minister who was responding to a question about the issue of Financial Clearance to MOFA to clear the large debt owed partners and suppliers, revealed that his ministry has already released money to clear outstanding debts.
“Mr. Speaker, at the end of 2021 an amount of GH¢86.31 million was outstanding, under the PFJ programme. This amount has now been released to MOFA for payment. This year, MOFA has requested an amount of GHC 485.90 million for payment under PFJ programme. An amount of GHC 278.57 million has subsequently been released to MOFA,†Ken Ofori-Atta said on the floor of Parliament.
Suppliers of Fertiliser Unhappy
But Fertilizers Suppliers under government’s flagship Planting for Food and Jobs programme dared the Financial Minister to be clear with his presentation over payment of money to the Ministry of Food and Agriculture for some outstanding debts.
They expressed reservations over his presentations especially, the sector Minister’s claim that an amount of 278.57 million has been released to the MoFA. these owed partners and suppliers insist for over a year now they have not received payment and some payment are even in arrears since 2020 from the implementing ministry.
Finance Minister Misquoted
Addressing this contentious issue, the Minister for Food and Agriculture, Dr Owusu Afriyie Akoto in a one-on-one interview on Peace FM’s morning show ‘Kokrokoo’ said the Finance Minister was misquoted and that the money rather went to the Controller and Accountant General.
“The Minister was misquoted. It is not true that the funds were released to the Ministry of Agriculture. It was released to the Controller and Accountant General to release to MoFA but that’s not the money we’ve received. There was a misquotation; the Minister should have been quoted as saying the amount of money has been released to the Controller and Accountant General because we don’t receive money directly from the Ministry of Finance. We get it upon his instruction to the Controller,” he pointed out.
The failure of the government to pay fertilizer suppliers has made the majority of these contractors face bankruptcy forcing their banks to chase them for their monies.
The country lost an amount of GH¢27 billion to tax exemptions between 2008 and 2020, Finance Minister, Ken Ofori-Atta, has confirmed.
Disclosing this in parliament on Friday, July 15, Ken Ofori-Atta added that through these years, the country’s revenue dipped to about GH¢1.8 billion in only 2020.
He said to avert some of these challenges, it is prudent for the state to protect the public purse to keep the economy on a sound footing.
“It is true, as Ranking Member mentioned that some GH¢27 billion had been lost to tax exemptions. This brings into focus the need for all of us to protect the public purse. That is an important social re-engineering for us, as we lose revenue on many fronts,†he said.
The Finance Minister, however, said Ghana is likely to make some savings of GH¢460 million on tax exemptions this year.
The Tax Exemptions Bill 2020 was considered under a certificate of urgency by the Finance Committee.
The Bill when passed, will set clear eligibility criteria for tax exemptions and provide for the monitoring, evaluation and enforcement of exemptions, Daily Graphic reported.
It will also provide a regulatory regime for monitoring tax exemptions to ensure that exemptions granted are used for the intended purposes, as well as curtail the abuse of the existing exemption regime.
Mr Speaker, on March 11, 2020, the World Health Organisation declared COVID-19 as a pandemic. This moment has marked a defining moment in world history and its impact still reverberates globally.
Mr Speaker, here in Ghana, we recorded our first two cases on March 12, 2020. H.E. President Nana Addo Dankwa Akufo-Addo, immediately put together a task force which spearheaded the development of a bold, comprehensive, and decisive strategy to ensure that we are not overwhelmed by the pandemic. In line with this strategy, the impact of the COVID-19 pandemic on the economy of Ghana was assessed and measures were designed to address its immediate impacts.
However, the impact of the pandemic was even more severe than anticipated both globally and domestically. It has upended and exposed the weaknesses in critical structures and systems in education, health, economic life and communities. The pandemic triggered a sharp and heavy disruption in global supply chains as lockdowns and restrictions led to reductions in demand and production levels.
Mr Speaker, this has required us to undertake major fiscal measures beyond what we programmed prior to the pandemic. To finance the additional expenditure such as support to households, engagement of additional health personnel deployment of security personnel at our borders to enforce the CoVID-19 protocols, as well as the procurement of personal protective equipment, government has had to adopt major fiscal measures to accommodate the increased expenditure and the shortfalls in revenue. Though our response was bold, decisive, and compassionate, it has also been costly.
Mr. Speaker, you may recall that on 30th March 2020, I made a statement to Parliament on the Economic Impact of the COVID-19 Pandemic on the Economy of Ghana, following which the implementation of the Coronavirus Alleviation Programme (CAP) commenced.
With the Finance Minister Ken Ofori Atta appearing before Parliament today, he is expected to answer some 16 questions filed by some lawmakers.
Aside from a statement on how government expended funds meant to fight against Covid-19, Mr Ofori-Atta will also have to respond to the 16 questions.
Urgent Question 1. Godfred Seidu Jasaw (Wa East): To ask the Finance Minister when the Ministry will issue financial clearance to the Ministry of Food and Agriculture to clear the large debt owed partners and suppliers to ensure the availability of subsidised fertilizer in this farming season.
Response
At the end of 2021, an amount of ¢86.31 million was outstanding, under the PFJ programme. This amount has now been released to MOFA for payment. This year, MOFA has requested an amount of ¢485.90 million for payment under the PFJ programme. An amount of ¢278.57 million has subsequently been released to MOFA.
The Ministry of Finance has over the last five years (2017-2021) made budgetary provisions to enable the Ministry of Food and Agriculture (MOFA) to allocate funds to cover all its programmes and projects, including the Planting for Food and Jobs (PFJ) programme.
During this period, there has been, a cumulative release of ¢2.47 billion to the Ministry of Food and Agriculture to pay for commitments under this programme.
Urgent Question 2. Sheila Bartels (Ablekuma North): To ask the Minister for Finance what is the current status of funding for the construction of Phase Two of the Tema Motorway, which has been highlighted as a major issue for commuters
Response
The Government of Ghana completed Phase I of the Tema Motorway Interchange (Tiers one and two) with the grant support of JPY6.259 billion from the Japanese Government and was commissioned by the President on 15th June 2020.
I am pleased to inform this House that government has completed negotiations with the Japanese Government for additional grant funding of JPY3.765 billion for Phase II which covers the design and construction of the third tier of the interchange. The procurement process for the selection of the contractor is scheduled to be completed next week.
The Minister for Finance, Ken Ofori Atta, is expected to appear before Parliament later today to answer 16 questions from different Members of the house.
He is also expected to deliver a statement on how government funds have been utilised in the fight against Covid-19.
His absence from Parliament last Thursday caused the Speaker to place a moratorium on business from the ministry until all outstanding obligations to Parliament are fulfilled.
A 75 million Euro facility for a COVID-19 response programme was suspended pending the delivery of the account statement to the House by the Finance Minister.
The Minister was scheduled to answer questions and deliver an important statement on the floor last Thursday before he put in a late request for the session to be postponed.
The Majority Leader, Osei Kyei-Mensah-Bonsu came to the defence of the Minister following the postponement saying Mr. Ofori-Atta was yet to go over the responses to the question he was expected to deliver in Parliament.
“He pleaded that he should see them [the questions] first, read them and appreciate what the technical people have brought and if there are any other matters to be added on he does so becomes to this House so that he will be able to give a comprehensive response.â€
The Majority Leader also stressed that Mr. Ofori-Atta was not running away from the questions.
“For anybody to jump to the conclusion that the minister is running away from responsibility, I shudder to think of how that is coming about.â€
The Speaker of Parliament, Alban Bagbin, has put all business from the Ministry of Finance on ice until all pending questions are answered, and a COVID-19 Expenditure statement is delivered by sector to the Minister, Ken Ofori-Atta.
Already, a 75 million Euro facility for a COVID-19 response program has been suspended pending the delivery of the account statement to the house.
“Until we go through the accountability process, we will not take that motion… Today, he has another request before us. That will also be affected.â€
“Until he comes to respond to the questions and to submit the statement giving an explanation as to how the money has been applied, we will not entertain any business from that Ministry,†Mr. Bagbin said.
The Minister was scheduled to answer questions and deliver an important statement on the floor on Thursday before he put in a late request for the session to be postponed.
The Majority Leader, Osei Kyei-Mensah-Bonsu came to the defence of the Minister following the postponement of the session.
According to Mr. Kyei-Mensah-Bonsu, Mr. Ofori-Atta was yet to go over the responses to the question he was expected to deliver in Parliament.
“He pleaded that he should see them [the questions] first, read them and appreciate what the technical people have brought and if there are any other matters to be added on he does so becomes to this House so that he will be able to give a comprehensive response.â€
The Majority Leader also stressed that Mr. Ofori-Atta was not running away from the questions.
“For anybody to jump to the conclusion that the minister is running away from responsibility, I shudder to think of how that is coming about.â€
Mr. Kyei-Mensah-Bonsu said it has been recommended that the Finance Minister appear before Parliament on Wednesday, June 22.
Finance MinisterKen Ofori-Atta, has underscored the need for the country to pay critical attention to its spiritual development amidst the seemingly rage over the construction of the National Cathedral project using taxpayers’ money.
In an interview with the state broadcaster, Ghana Broadcasting Corporation (GBC), Mr. Ofori-Atta explained that the country had done well in striving for political independence and economic development however was lacking in the area of spirituality.
He stated that the country cannot grow and sustain its transformation without a holistic approach which should include focusing on spiritual development as well.
“The issue of National Cathedral seems to generate in modern times this type of discourse but the questions being asked are one you are a secular state, why are you getting into this and really; is that the question because the Supreme Court answer is that if the nature of the people are religious, then it is incumbent of government to have the infrastructure to do that.
“I think that there are three pillars of nation-building with regards to political independence which our first president did and led to Africa getting independent.
“The second one is being one of investment and trade and to get into economic emancipation which through Nana Akufo-Addo we now have free trade agreement headquartered here.
“So, we are getting these two pillars. The third clearly has to be that spirituality and so with that third leg, we cannot grow and sustain our transformation without a holistic view and I think we need to understand that,†Ken Ofori-Atta said.
The National Cathedral project has in recent weeks come under intense public scrutiny over its funding.
The government reportedly provided seed money for the project despite earlier assurances that it was going to be financed by the Church.
North Tongu MP, Samuel Okudzeto Ablakwa alleged that the Akufo-Addo-led administration has so far dolled out over GH₵190 million in funding for the construction of the National Cathedral.
His comment came after a recent report that the government has released an amount of GH₵25 million for the project.
In a post on his social media handle, Mr. Ablakwa said the government had earlier released an amount of over GH₵142 million bringing the cumulative funding for the project to GH₵199,832,603.00.
He detailed that this latest amount was concealed from Parliament and was additionally hidden from the Auditor-General in his 2020 audit.
In June, the government will launch the multi-year GH10 billion YouStart programme to combat youth unemployment.
During a news conference conducted by the Information Ministry on Thursday, May 12, Finance Minister Ken Ofori-Atta announced the start of the programme.
He informed Ghanaians that the program’s implementation would demonstrate the government’s efficient use of tax resources.
“Nobody likes to pay taxes, though it is difficult but we all begin to get used to it as we apply the use of the taxes for the citizens to see. We should be launching the You Start Programme starting June, and we will be able to immediately see the deployment of those resources to the teeming mass of some 11million youth to get enterprise employment.â€
The government’s main youth employment creation programme was supposed to start in April, but it was delayed due to several issues.
Young entrepreneurs can use YouStart to get funding, training, technical skills, and mentoring to help them create and run their enterprises.
Within the following three (3) years, the Ghana Enterprises Agency (“GEA”), the National Entrepreneurship and Innovation Programme (“NEIP”), and partner financial institutions will implement the initiative.
The project would be funded by revenue collected annually from the Electronic Transaction Levy, according to Pius Enam Hadzide, CEO of the National Youth Authority (NYA) (E-Levy).
“Finally, the E-Levy which is the enabler of the YouStart has been passed. I do know that the YouStart seeks to leverage about ¢10 billion, the government would put ¢1 billion per annum…from the E-levy; that is why the E-levy has been passed, it has been stated,†he said on JoyNews.
Ken Ofori-Atta has previously expressed his optimism that the YouStart scheme will have the same impact as the Akufo-Addo-led government’s free Senior High School policy.
Finance Minister, Ken Ofori-Atta, has noted that the current economic challenges are not only peculiar to Ghana as other African economies are also suffering from high rise of food prices, fuel, financial constraints, among others.
According to him, global inflation has also witnessed a sharp increase of about 60%.
Speaking at a press conference in Accra on Thursday, May 12, Ken Ofori-Atta said, “Today, 41 African economies are severely exposed to, at least, one of three concurrent crisis, rising food prices, rising energy prices, tightening financial conditions. Finance Ministers now call it the dreaded three Fs; Food, fuel and financial conditions.”
“That is just a ripple through in all Africa, and food prices easily about 34 per cent higher, crude oil prices some 60 per cent higher and global inflation has risen, we saw our numbers yesterday moved to 23.6 per cent, a good chunk of it being imported inflation,â€Â Ken Ofori-Atta added.
The Ghana Statistical Service (GSS) on Wednesday, May 11 announced that the national year-on-year inflation rate was 23.6% in April 2022.
This is a 4.2 percentage points higher than the 19.4% recorded in March 2022.
This, according to report is the highest in more than 18 years.
The Ghana Statistical Service noted that the main drivers of inflation were transportation, food, electricity, among others.
With immediate effect, the Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year, Finance Minister Ken Ofori Atta has said.
He said this will affect all new orders, especially 4-wheel drives.
“With immediate effect, Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year. This will affect all new orders, especially 4-wheel drives. We will ensure that the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period,†he said at a press conference on Thursday March 24 while announcing measures introduced to deal with the economic challenges.
“Again, with immediate effect Government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels; Government will conclude on-going measures to eliminate “ghost†workers from the Government payroll by end December 2022;
“Discretionary spending is to be further cut by an additional 10%. The Ministry of Finance is currently meeting with MDAs to review their spending plans for the rest of the three (3) quarters to achieve the discretionary expenditure cuts; ii. these times call for very efficient use of energy resources.
“In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st April 2022,†he added.
Finance Minister Ken Ofori Atta has announced a reduction in the BOST Margin and also a 50 per cent cut in fuel coupons.
He announced the “2pesewas on BOST Margin†and the “50 per cent reduction in fuel coupons†while announcing measures to deal with the economic challenges facing the country.
“These times call for very efficient use of energy resources. In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st April 2022,†he said.
BOST Margin is a tax imposed on petroleum products used to cover the maintenance and operating cost of petroleum product depots and undertaking expansion programs at depots.
The BOST Margin has remained at 3 pesewas per litre since 2011.In December 2019, it almost went up to 6 pesewas per litre but the decision was quickly reversed following intense pressure on government by opposition parties as well as CSOs such as the Chamber of Petroleum Consumers (COPEC).
Regarding the cedi, Mr Ofori-Atta said that despite the challenges facing the country at the moment, the Cedi is doing better than it did in 2014 and 2015 when Mr John Dramani Mahama was the President of Ghana.
Announcing measures to deal with the economic challenges facing the country on Thursday March 24, he said “In spite of it all, the cedi has held under these extreme challenges better than it did in 2014 and 2015. This is because the fundamentals are much stronger.â€
The cedi has been going through some troubles over the period. It is currently trading beyond 7 cedis to the dollar. Analysts have predicted it is most likely to cross 8.
Following this situation, the Importers and Exporters Association of Ghana has said consumers in Ghana should prepare to pay more for goods and services.
Government has announced a reduction in the margin for petroleum price-build up by a total of 15 pesewas per litre effective April 1, 2022.Â
The move, according to the Finance Minister, Ken Ofori-Atta is expected to mitigate the impact of rising petroleum prices at the pump covering a three-month period.Â
Speaking at a press briefing in Accra on March 24, 2022 the minister said, “To mitigate the rising price of petroleum products at the pumps for the next three months, government has decided to reduce margins in petroleum price build-up by a total of 15 pesewas per litre with effect from 1st of April,†he said.
“BOST margin reduced by 2 pesewas per litre, unified petroleum pricing fund margin reduced by 9 pesewas per litre, fuel markin margin reduced by 1 pesewa per litre, primary distribution margin reduced by 3 pesewas per litre. These are expected to reduce the price of petrol by 1.6 percent and diesel by 1.4 percent. We anticipate the measures taken to stabilise the currency will help further stabilise the prices at the pumps,â€Â Ken Ofori-Atta added.
The Finance Minister added that the National Petroleum Authority and the Ministry of Energy are in discussions with various Oil Marketing Companies (OMCS) in the country “to reduce their margins in the spirit of burden-sharingâ€.
Meanwhile, prices of petrol at various pumps are selling above GH¢9 while diesel is currently selling between GH¢10 and GH¢11 per litre across the country.
Government could, in the coming days, reduce the salaries of some appointees by between 20 percent and 30 percent, a report from Asaase.com has revealed.
According to the report, the move is to protect the social intervention policy of the Akufo-Addo administration which includes Free Senior High School policy.
This was discussed at the ongoing cabinet meeting being held at the Peduase lodge.
Per the report, “critical among the issues to be discussed is whether to maintain the 20% cut across board or increase it.â€
The outcome of the decision would be made public at the end of the cabinet meeting today
Some of the appointees to be affected by this decision if approved will be ministers, heads of state enterprises as well as heads of municipal and district assemblies.
Meanwhile, Information Minister, Kojo Oppong-Nkrumah has announced that the Finance Minister, Ken Ofori-Atta, will make available details of measures that have been put in place by the government, to mitigate the impact of the global economic difficulties on Ghana.
This comes after the cabinet held its quarterly retreats at Peduase Lodge from March 17 to 20, 2022.
At the meeting, Akufo-Addo approved measures aimed at mitigating the Cedi depreciation, ensuring expenditure discipline, and providing relief in the face of fuel price hikes among others.
The finance minister is expected to share these details with Ghanaians later this week “after consultations with key social and economic stakeholders,†a statement by the Information Ministry read.
You can also watch the last episode of People & Places here:
A survey conducted by the Center for Economics Finance and Inequality Studies has showed that some 81.6 percent of respondents want the proposed Electronic Transaction Levy cancelled and never introduced by the government.Â
According to results from the survey captured on JoyBusiness, 36.4 percent of the respondents on their part, had no knowledge about the tax measure whereas 1,679 out of the 2,650 had knowledge about the E-Levy.Â
In addition to the results from the portal, 13.5 percent of the respondents sampled were of the view the E-Levy should be passed into law and implemented by government.Â
Meanwhile, a small portion of 4.9 percent of respondents held the view that the E-Levy should be passed next year in 2023.Â
The survey was conducted by Professor Anthony Amoah of the University of Environment and Sustainable Development and Dr. Benjamin Amoah of the University of Ghana Business School.Â
Results of the survey counted on Google Online Forms for data collection, of which respondents were automatically restricted to one entry only.
Meanwhile, President Nana Addo Dankwa Akufo-Addo has insisted the passage of the tax measure, also known as the E-Levy, is critical to fill revenue gaps.Â
He contended that the economy has been ravaged by the COVID-19 pandemic which requires the implementation of key tax measures to sustain the economy.Â
But since the announcement of the E-Levy in November last year in parliament by the finance minister [Ken Ofori-Atta], there has been widespread backlash and condemnation over the tax measure.Â
Lawmakers in Parliament and a cross-section of the public have also kicked against the proposed E-Levy and described it as one that is regressive and would place more burden on the ordinary citizen.
Minister of Finance, Ken Ofori-Atta, has admitted to the dire economic challenges Ghana is faced with.Â
According to him, the nation currently is unable to undertake or continue developmental projects, implement salary increments due to a lack of funds.
Making his submission at a Government Town Hall meeting in Wa on Monday, February 21, Ken Ofori-Atta underscored the need for Ghanaians to accept the Electronic Transactions Levy (E-Levy) in order for government to fill revenue gaps and increase development. Â
“I look at teachers and civil servants for example, and I will be the first to admit that the salaries are indecent, nobody will argue with that. At the same time, it is 60 percent of all the revenue we collect from 700,000 people [go into salary payment,] that is also a fact,” Ken Ofori-Atta stated.Â
“So yes, there is a legitimate demand for more and there is a legitimate reality that there is no money. So, what do we do as a society? Then you ask me to give you more salary, which is fine, then I say, but it is your colleague civil servants who collect the money, so how can you responsible for collecting the money, not collect it and then tell me to give you the money. That will be another issue,†he added.
Since the announcement of the E-Levy, government has insisted the tax measure is necessary to generate some GH¢6.9 billion in revenue for Ghana in 2022. Although a decision to approve the E-Levy is yet to materialize in Parliament, the Minority caucus has vowed to kick against approving the E-Levy citing it will place more hardship on the ordinary citizen. Also, a cross-section of the public has bemoaned the introduction of the tax measure.Â
The E-levy is a new tax measure introduced by government in the 2022 Budget on basic transactions related to digital payments and electronic transactions aimed at widening the tax net and increasing revenue.
The tax measure, if approved, would place a charge of 1.75 percent on all electronic transactions that are more than GH¢100 daily (24 hours). This will cover mobile money payments, ATM withdrawals, inward remittances among others.
Members of the clergy who recently visited former President John Dramani Mahama, had held similar talks with members of the Executive and Legislative arms of government.
According to Most Rev. Dr. Paul K. Boafo, the Presiding Bishop of Methodist Church of Ghana, who was leader of a delegation that met Mahama earlier this week, they had met among others, President Nana Addo Dankwa Akufo-Addo and Finance Minister Ken Ofori-Atta.
He also summarized the reason for their intervention as, taking proactive steps to forestall a recurrence of the violent scenes that were witnessed in Parliament during the post-2022 budget debate especially with the matter of the Electronic Transactions tax (E-Levy). Â
“We have come as heads of churches of the various associations and groupings in Ghana. Our history has it that the church has played a very significant role in our development and the welfare of our people.
“And so, the major stakeholders, when things come of concern, we are all to take it up and find answers and resolutions to it, so that at the end of the day what we preach and what governance is all about can be achieved to the glory of God, he added.
On the back of the chaos in Parliament, he added: “Christian bodies became alarmed and said will not sit but see how best we can together, find a solution to it. So we have made various approaches.â€
The list is below:
1 – Minister of Finance on two occasions 2 – Majority Leader, Osei Kyei-Mensah-Bonsu 3 – Some members of the Minority 4 – Speaker of Parliament, Alban Bagbin 5 – President Nana Addo Dankwa Akufo-Addo their last meeting
Why the meeting with Mahama
Rev. Boafo explained that after all those meetings: “We have seen that there are other major stakeholders we need to make approaches to and see how best we can find answers to what is happening to us, looking at all the circumstances and the conditions around us.
“It became very necessary during our series of interventions and interactions … it became necessary that we cannot leave His Excellency the Former President behind but to also make a move to see him.
“And see how best we can all have discussions and look at what is happening to us in our country and if there is a way out by which we can all look at it and come to a resolution,†he added.
Two persons who robbed an Uber driver of his techno mobile phone and cash of GHC600 after pulling out a pistol and cutlass on him, have been sentenced to 25 years imprisonment each by an Adentan Circuit Court.
The two robbers wept uncontrollably after sentence.
The robbers are said to have also compelled the complainant, Emmanuel Kwame Krakani, at gun point to transfer GHS 700.00 from his MTN Momo wallet to an AirtelTigo Cash wallet.
The robbers are Gordon Dogbatse, a 22 year old casual worker and Isaac Dogbetse, a 23 year old unemployed.
Charged with conspiracy to commit crime to wit Robbery and robbery, Gordon and Isaac pleaded guilty.
Gordon prayed the Court to forgive him and that he will not repeat the act.
Gordon: “If I do that again the Court should kill or cain me.”
Isaac, a father of one, prayed for mercy, saying he did not know Gordon compelled the complainant to transfer money from his (Gordon’s) wallet.
The Court presided over by Mrs Sedinam Awo Balokah convicted them on their own plea.
According to the Court, it took into consideration their quick admission of guilt, and the fact that the convicts had no previous convictions.
However, the Court said, it further considered the alarming rate of robbery cases within the area and sentenced them to serve as deterrent to others.
Prosecution led by (Police) Superintendent Patience Mario narrated that the complainant is a trader residing at Madina.
In the month of February this year, the complainant was in charge of his Chevrolet Cruze Saloon car with registration number GE1046- 21 when accused boarded the car as passengers to Agbogba.
Supt. Mario said on reaching a section of the road at Agbogba Yellow house, accused told the complainant to stop so they could alight and he did.
Prosecution said in the process, accused pulled out a pistol and a Cutlass concealed on them and they robbed the complainant of cash of GHS600, his Tecno mobile phone valued at GHC 1,200.
They further compelled the complainant to transfer money from his MTN Momo wallet to their Airtel Tigo Cash wallet and they fled.
Prosecution said the complainant had been tracking the accused until December 8, this year, at about 2:00pm, the complainant through the assistance of others arrested Gordon who was escorted to the Agbogba Police Station.
Prosecution said on December 9, this year, Gordon led the Police to trace Isaac from his hideout.
Minister of Finance, Ken Ofori-Atta, has justified the government’s GH¢10 billion ‘YouStart’ initiative aimed at providing financial support for the youth of Ghana.
The Minister, presenting the 2022 budget at Parliament, introduced the ‘YouStart’ to address youth employment challenges.
“Mr. Speaker, this understanding of the youth employment challenge, as well as extensive consultations with stakeholders including youth associations and educational institutions across the country, have led to the development of the YouStart initiative which proposes to use GH¢1 billion each year to catalyze an ecosystem to create 1 million jobs and in partnership with the Finance Institutions and Development Partners, raise another GH¢2 billion.
“In addition, our local Banks have agreed to a package that will result in increasing their SME portfolio up to GH¢5 billion over the next 3 years.
“This, Mr. Speaker results in an unprecedented historic GH¢10 billion commitment to the private sector and YouStart over the next 3 years,” he told the House.
He underscored the relevance of the ‘YouStart’, asserting it is “a vehicle for supporting young entrepreneurs to gain access to capital, training, technical skills and mentoring to enable them launch and operate their own businesses”.
On how this initiative will be implemented, the Minister revealed; “YouStart will support youth-led enterprises with the following products:
i. District Level Loans under 10 000 GHC after 2-3 months of training.
ii. Soft loans of up to GH¢50,000 to help start-ups (in particular by young graduates and school leavers) and small businesses to expand;
iii. Starter packs (Soft loans tied to equipment acquisition) of up to GH¢50,000 for individuals and GH¢100,000 for associations/groups;
iv. A standardised loan package of between GH¢100,000 to GH¢400,000 at concessional rates for SMEs through financial institutions.”
Ken Ofori-Atta, having a one-on-one interview with Kwami Sefa Kayi on Peace FM’s morning show ‘Kokrokoo’ on Tuesday, was asked how the government intends to fund the initiative and if the ‘YouStart’ will be feasible.
In his response, he noted that the government is fully committed to implementing the initiative, therefore is currently in negotiation with a private financial institution and various banks for financial assistance.
He assured Ghanaians and the doubting Thomases that, just as the government has made free SHS a reality, the ‘YouStart’ programme will surely come into fruition and become an avenue to empower youth entrepreneurship.
“This is the same thing that was said, the negative language, that we can’t do the (free) SHS. Where will we find the money? But these are choices of a passionate President who believes that every citizen should have his due and be able to use his God-given talent, so we should find the money to do this,” he said.
He commended the Akufo-Addo government touting the ‘YouStart’ initiative is unprecedented and will provide relief to the youth.
“The GH¢10 billion intervention has never been seen in this country and it is bold. It is visionary and liberates us of this albatross.”
Some concessions have been made in the 2022 budget after the minority in parliament rejected it last Friday.
Appearing before the House on Tuesday, November 30, 2021, the Finance Minister, Ken Ofori-Atta, noted that the most talked-about e-levy will be reviewed to 1.50%.
Also, a provision has been made for the Blekusu Coastal Protection Project to combat tidal waves.
The famous Agyapa Royalties deal has also been wiped out from the 2022 budget.
He continued that the Aker narrative has been amended, and the 50% benchmark value policy has equally been reviewed.
He bemoaned that the concessions were not properly laid before the House for approval.
“The Finance Minister is said to have told Parliament that based on the NDC MPs resistance, the following concessions have been made about the 2022 budget: a Provision now made for the Blekusu Coastal Protection Project to combat tidal waves, 2, Agyapa expunged, 3, Aker narrative amended, 4, Benchmarks reviewed and 5, E-levy reduction to 1.50 from 1.75 even though we had insisted on an outright scrap,” part of his post read.
“The point is, there are major concessions that substantially alter the shape and form of the 2022 budget initially presented to Parliament, so what exactly has the sham approval approved? Particularly, when these fundamental concessions are not properly [laid] before the House for approval. Did their unconstitutional conduct purported to approve the rejected budget or they approved a new budget with the said concessions?†he quizzed.
Parliament approved the 2022 Budget Statement and Economic Policy of government presented by Ken Ofori-Atta on Wednesday, November 17.
The budget was approved in the absence of Minority members.
Some concessions have been made in the 2022 budget after the minority in parliament rejected it last Friday.
Appearing before the House on Tuesday, November 30, 2021, the Finance Minister, Ken Ofori-Atta, noted that the most talked-about e-levy will be reviewed to 1.50%.
Also, a provision has been made for the Blekusu Coastal Protection Project to combat tidal waves.
The famous Agyapa Royalties deal has also been wiped out from the 2022 budget.
He continued that the Aker narrative has been amended, and the 50% benchmark value policy has equally been reviewed.
He bemoaned that the concessions were not properly laid before the House for approval.
“The Finance Minister is said to have told Parliament that based on the NDC MPs resistance, the following concessions have been made about the 2022 budget: a Provision now made for the Blekusu Coastal Protection Project to combat tidal waves, 2, Agyapa expunged, 3, Aker narrative amended, 4, Benchmarks reviewed and 5, E-levy reduction to 1.50 from 1.75 even though we had insisted on an outright scrap,” part of his post read.
“The point is, there are major concessions that substantially alter the shape and form of the 2022 budget initially presented to Parliament, so what exactly has the sham approval approved? Particularly, when these fundamental concessions are not properly [laid] before the House for approval. Did their unconstitutional conduct purported to approve the rejected budget or they approved a new budget with the said concessions?†he quizzed.
Parliament approved the 2022 Budget Statement and Economic Policy of government presented by Ken Ofori-Atta on Wednesday, November 17.
The budget was approved in the absence of Minority members.
In their absence, Ken Ofori-Atta re-submitted a revised version of the 2022 budget, which was unanimously approved by the Majority MPs including the first deputy speaker, Joseph Osei Owusu.
Ken Ofori-Atta, Finance Minister, has defended the 1.75% electronic levy (e-levy) which was in the 2022 budget statement presented before Parliament.
Speaking to Joy News during the ongoing Volta Fair at the Ho Sports Stadium, the minister stated that, the e-levy will be the best way Ghana can build an entrepreneurial nation.
He explained, we know that it takes the invisible hand of the state to pick people up. And so this historic 10 billion intervention that we have had and finding ways for burden-sharing.”
So we recognise the problems of youth unemployment, the problem of roads, the problem of debt and we as a nation have decided to burden share,†Ofori-Atta said.
1.75% levy on electronic transactions
Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.
Fees and charges of government services have also been increased by 15%.
The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.
“As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
Ken Ofori-Atta, Finance Minister, has defended the 1.75% electronic levy (e-levy) which was in the 2022 budget statement presented before Parliament.
Speaking to Joy News during the ongoing Volta Fair at the Ho Sports Stadium, the minister stated that, the e-levy will be the best way Ghana can build an entrepreneurial nation.
He explained, we know that it takes the invisible hand of the state to pick people up. And so this historic 10 billion intervention that we have had and finding ways for burden-sharing.”
So we recognise the problems of youth unemployment, the problem of roads, the problem of debt and we as a nation have decided to burden share,†Ofori-Atta said.
1.75% levy on electronic transactions
Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.
Fees and charges of government services have also been increased by 15%.
The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.
“As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
“To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy,†Ofori-Atta revealed.
The Minister for Finance, Ken Ofori-Atta says the Government has rolled out an aggressive vaccination programme to protect Ghanaian lives from covid-19.
According to him, sustained efforts have seen about 2 million Ghanaians receiving a single dose of the vaccine, with 825,706 fully vaccinated as at September 2021.
He said this while reading the 2022 Budget Statement on Wednesday in Parliament.
“We will not relent until our goal of vaccinating 2O million is obtained as supply of some 9 million vaccines are now assured and we will mobilise to meet this goal to protect our people,†he said.
He also said government will accelerate the implementation of Agenda 111, comprising 111 district hospitals, 7 regional hospitals and 3 psychiatric hospitals.
The Minister for Finance, Ken Ofori-Atta says the Government has rolled out an aggressive vaccination programme to protect Ghanaian lives from covid-19.
According to him, sustained efforts have seen about 2 million Ghanaians receiving a single dose of the vaccine, with 825,706 fully vaccinated as at September 2021.
He said this while reading the 2022 Budget Statement on Wednesday in Parliament.
“We will not relent until our goal of vaccinating 2O million is obtained as supply of some 9 million vaccines are now assured and we will mobilise to meet this goal to protect our people,†he said.
He also said government will accelerate the implementation of Agenda 111, comprising 111 district hospitals, 7 regional hospitals and 3 psychiatric hospitals.
He said already, 50 percent of the contractors have been given their industrial plans, hospital sites for them to start work.
Minister of Finance Ken Ofori Atta has indicated that President Nana Addo Dankwa Akufo-Addo cannot sleep due to the current economic challenges citizens are enduring.
According to him, the president is concerned about the current economic hardship citizens are going through.
Delivering the 2022 budget statement on the floor of Parliament, Ken Ofori-Atta mentioned that the president was fully aware of the challenges of Ghanaians.
According to him, thoughts of the economic plight of Ghanaians keep the president awake at night.
“Mr Speaker, we are under no illusions as to the economic challenges facing our country today. How to ease the sufferings of Ghanaians, transform the economy to create jobs and share the expected wealth across all households, such as providing security and education, keeps the president awake at night.
“How to broaden the revenue base, keep a grip on expenditure, protect the public purse and at the same time build with urgency the needed infrastructure, collecting revenue, managing our debt and expenditure commitments, and paying the bills to stimulate economic activity are the orders he has given to us, his Ministers and other appointees, to carry out over the next three years,” he said.
The country has recently experienced an astronomical increase in the price of petroleum products.
This has had a rippling effect on food prices on the market, which has skyrocketed, leading to a high cost of living.
The Chamber of Petroleum Consumers (COPEC) has blamed the rising petroleum prices in the county on the lackadaisical attitude of the Ministry of Energy and the Finance Minister, Ken Ofori-Atta.
According to the Chamber, the Finance Minister who should have taken steps in curtailing the rising fuel prices has been adamant even when prices on the International Market was dropping.
“We started talking about the rising price of fuel sometime in March this year. We had indicated the need to relax some of the taxes in the sector in order that we do not push the cost of living beyond the reach of the average Ghanaian. Sadly, nothing has been done.
“I also blame a section of the media, again the Energy Ministry also tries to rationalize and make the justification on why prices are going up,†the Executive Secretary for COPEC Ghana, Duncan Amoah told Starr FM.
However, a Research Fellow with the Institute of Energy Studies, Fritz Moses has also predicted that Ghanaians should expect an increase in petrol and diesel prices due to the rising price on the International Market.
According to him, if the government does not put in place temporary measures Ghanaians should have no option other than to brace themselves to pay more for fuel.
“We also see the rise in demand as we are getting closer to the winter season in Europe and America for keeping purposes because of that we are expecting prices to go up.
“For us, we are not saying the government should step in now, we think that the government should have stepped in a long time ago. When we see price increase from last year, last year as of 23rd November was GH¢49.50 per liter at local pumps entering the year, we reached 5ghc per liter,†he revealed during an interview on Starr FM.
Meanwhile, some Transport Operators have threatened to increase transport fares from Monday, 8th November 2021.
The Minister of Finance, Ken Ofori-Atta, has stated that he is not in Parliament to beg for money.
He added that he neither is there to announce new taxes, but to present a breakdown of the review of the mid-year budget.
“I am not here today to ask for more money. I have not come to ask for more taxes. I have come to update the House on the performance of the economy for the first half-year of 2021 and our plans for the unexpired term of the year, consistent with section 28 of the PFM Act,” he stated.
He made this known while presenting the 2021 Mid-Year Budget Review to Parliament.
Finance Minister, Ken Ofori-Atta, has disclosed that a total of 1 million Ghanaian youth will be employed in the next three years.
This is to solve the rising unemployment rate among the youth in the country which remains one of government’s major problems.
He said the youth will be sensitized and connected to numerous job opportunities to end this growing menace.
This is done in collaboration with the ministers of Employment and Labour Relations, Youth and Sports, and Lands and Natural Resources.
“I have had extensive discussions with my colleagues Ministers of Employment and Labour Relations, Youth and Sports, and Lands and Natural Resources. New programmes will be introduced and existing ones scaled up and refocused to meet the aspirations of our youth. We will work together to sensitize and connect the youth to the numerous opportunities being made available by government to create jobs and business opportunities for 1 million Ghanaian youth by 2024,” Ken Ofori-Atta said.
He made this known during the delivery of the mid-year budget statement in Parliament on Thursday, July 29, 2021.
Government through the Ministry of Finance and Economic Planning has today, July 29, presented its 2021 mid-year budget review before Parliament.
The presentation is in accordance with Article 179 of the 1992 Constitution and the Public Financial Management Act 921, which offers the opportunity to revise macroeconomic targets and provide a comprehensive economic outlook for the rest of the year.
Finance Minister Ken Ofori-Atta announced some key job creation programmes and projects government intends to undertake over the next three and half years.
He disclosed that government will not be seeking additional funding and supplementary budget for the next half of the 2021 financial year.
According to him, the move is intended to contain the country’s rising debt stock as well as avoiding fiscal revenue slippages.
Making the disclosure during the 2021 mid-year budget review before Parliament, Ken Ofori-Atta however told the House that Ghana’s economy was on its path to recovery.
The Minister of Finance, Ken Ofori-Atta, has estimated that it will cost government US$10 billion to fix all dilapidated roads in Ghana.
The Minister said this when responding to a question from the media on Sunday, during the Minister’s press briefing.
The question was relevant following agitations by the #Fixthecountry. campaigners calling the government to fix the country’s bad road network.
The Minister recounted some of the social intervention services provided Ghanaians, especially the vulnerable during the COVID-19 lockdown including provision of free electricity to one million lifeline consumers, supply of free water to households, free distribution of food packs to the vulnerable and evacuation of stranded Ghanaians abroad.
He reiterated government’s commitment to immunize about 20 million Ghanaians with COVID-19 vaccines, as it had begun bilateral discussions with global partners to secure the vaccines.
Mr Ofori-Atta said government will, this month, start rolling out eight additional interventions under the Ghana’s Coronavirus Alleviation and Revitalisation of Enterprises Support Scheme (Ghana-CARES) programme, to create more jobs and boost the Ghanaian economy.
The 100-billion Ghana cedi programme, also known as “Obaatanpa” would witness the implementation of various projects in the health, agriculture, tourism, trade, digitization and technology as well as housing and social services sectors.
Mr Ofori-Atta said government would also begin the implementation of $250 million Jobs and Skills Development programme to create jobs in the private sector businesses, instead of expanding government employment schemes.
The Minister said, in the coming days, his outfit would collaborate with the Water Resources and Sanitation Ministry to address water challenges, especially in the urban centres to ensure regular flow of potable water from the taps.
It would also work collaboratively with the Ministries of Transport and Roads and Highways to tackle traffic congestion on the highways.
In July this year, he said, a new Development Bank would be set up to provide long-term financing to the private sector through commercial banks.
Mr Ofori-Atta noted that despite the impact of the COVID-19 pandemic on the Ghanaian economy, the rate of growth of the public debt had been lower under the Akufo-Addo-led Government than under previous administrations.
“The rate of debt growth was lower despite massive investments in our flagship programmes such as the Free Senior High School Policy, Planting for Food and Jobs, NABCo, One District, One Factory, One Village, One Dam, restoration of teacher and nursing trainee allowances, while maintaining macroeconomic indicators and exchange rate stability,” Mr Ofori-Atta emphasised.
“We were elected not to complain or compare, but to get things done. To fix what is broken and Government and I are determined and committed to do just that,” he assured.
The Minister underscored the need to keep the healthy conversation and dialogue on fixing the economy going so that “we can have a collective action to deal with the country’s challenges”.
He announced a hashtag ‘Fix this together and save our country’.
Head of Financial Advisory at Deloitte Ghana Yaw Appiah-Lartey has stated that approval of the Finance Minister Ken Ofori-Atta is not surprising since he was able to prove to the appointments committee that he is worth the position.
In an interview with JoyNews, monitored by GhanaWeb, Mr Larety said the Minister was able to respond to various questions asked him concerning the Agyapa deal and others, where he was able to provide solid documents that support his claims.
“To be fair the Minister of Finance has gone through a lot to get to this point, so some of the questions that were asked are not surprising. We expected them to be asked covering the financial cleanup, all the issues around Agyapa, taxes and contracts that have been awarded related parties or related entities. For the first time, we have a minister who was vetted in two days, a lot has gone in and I guess the minister also provided some necessary documents to allow for some form of consensus-building ahead of the final approval today,†he said.
Speaking on his expectation in the next four years with Ken Ofori-Atta as the sector Minister, Mr. Lartey stated that, government needs to take some hard decision to help economic rebound due to the severe impact of COVID-19 on the national purse.
“If you look at the target that has been set by government, as we look at the main target or the major macro-economic indicators, we are looking going to a deficit of less than 5% which the law mandates us to get to by the end of 2024…So we are not even seeing the deficit going below the physical responsibility gap of 5% anytime soon. So that is the difficult one particularly in the year 2021 where we are in now, we expect to end the year at a deficit of 9.5% [but] that is not too ambitious,†he said.
He further noted that “there is going to increase in the price of goods and services and if we are not careful some unintended consequences will arise. We have also had instances where some taxes have been introduced particularly for the banking sector, where we are having profit before tax increase by 5 percentage points, the national stabilization levy of five per cent so we have the banking community also complaining about that…So I know that is not going to be a smooth year, like the minister himself rightly said, if you are a finance minister and you are liked by the people then you are probably not doing your work. So we expect the minister to take the hard decisions.â€
The economist, however, noted that government needs to pay attention to the banking sector since the country has signed on to the Africa Continental Free Trade Area (AfCFTA).
On Thursday, during the first day of the vetting of Ken Ofori-Atta, finance minister-nominee, he tried to justify the need for the introduction of new taxes by the Akufo-Addo administration despite the negative impact of the novel Coronavirus on businesses and individuals.
“We need to create a society that we share the opportunities as we grow and also be able to share the burden,†he said.
“We have proposed a number of taxes that would affect petroleum which will lead to revenue for a delta fund for energy – for capacity charges – because we continue to have a gap between what ECG should be paying and what the rates are. So, that was to make sure that we get the energy sector operations. We also have a huge sanitation problem that you all know about and I think that is a health hazard for the years ahead.â€
The 2021 budget and economic policy of the government was characterised by several new taxes and levies meant to shore up revenue for 2021.
While delivering the 2021 budget statement, Osei Kyei-Mensah-Bonsu announced that the government wished to introduce a Covid-19 Health Levy of one per cent into the VAT Flat Rate Scheme (VFRS) and an additional one person on the National Health Insurance Levy (NHIL) as part of revenue measures to help the economy recover.
He also introduced a Sanitation and Pollution Levy at 10 pesewas per litre of diesel and gasoline (commonly called petrol in Ghana) under the Energy Sector Levies Act (ESLA).
There will also be an increase in the energy sector recovery levy and road tolls.
Minister-designate for Finance, Ken Ofori-Atta, has said the welfare of head porters, locally called “kayayei†is an issue of top priority to government.
According to him, the government will initiate measures to improve the well-being of head porters across the country.
Taking his turn at the Appointments Committee of Parliament on Thursday 25 March 2021, Ofori-Atta said government is embarking on a series of investments in the northern parts of Ghana to improve the livelihoods of people up north in order to prevent en masse migration from that part of the country.
“The welfare of Kayayei is important to us. Our investment in the North like irrigation and agriculture is to reverse this trend of Kayayei and it is top on our agenda,†Ofori-Atta said.
He was responding to questions from the Member of Parliament for North Tongu, Okudzeto Ablakwa on the status of hostels for Kayayei.
Ofori-Atta acknowledged that Kayayei are one of the most vulnerable groups in the capital and therefore required attention. He said there was an urgent need to support such groups in the long-term to enhance their living conditions.
He assured that as part of measures to tackle the menace, government is developing a multi-sectoral policy to help solve the issue going into the future.
He also hinted that government will welcome suggestions from well-meaning Ghanaians to help improve their conditions.
The President’s nominee for Finance, Ken Ofori-Atta is currently before the Appointments Committee of Parliament for his ministerial vetting.
The development comes after Mr Ofori-Atta had to reschedule his vetting over health complications as a result of testing positive for coronavirus in December 2020.
Ken Ofori-Atta returned to Ghana on Saturday, March 20 after seeking further medical attention in the United States of America.
Ken Ofori-Atta is said to have spent about thirty days at the Mayo Clinic in Minnesota, USA, where he received specialized treatment for post-COVID-19 complications.
Due to his absence, the president appointed Minister for Parliamentary Affairs, Osei-Kyei-Mensah-Bonsu to present government’s 2021 Budget and Economic Policy statement before Parliament on March 12, 2021.
Government has indicated it intends to raise an amount up to $5.0 billion to support growth-oriented expenditures in the 2021 Budget for this year.
The Ministry of Finance, which made this known in a request for expressions of interest (EoI) for some appointments for the 2021 Medium Term ICM Programme, said it also wants to conduct liability management including refinancing domestic debt and a buyback of some selected outstanding Eurobonds.
It is for this reason that it said it was considering to launch a 2021 International Capital Market (ICM) funding programme for the medium term.
According to the Ministry of Finance, it was requesting EOI from qualified and reputable co-managers to partner the international transaction advisors for the various instruments under the programme.
MoFEP continued that in accordance with the requirements and responsibilities of primary dealers and bond market specialists, the co-managers would be sourced from those who qualify as bond market specialists and/or investment advisors.
The ministry said the instruments for the programme consisted of some broad group of instruments. These included Eurobonds, Diaspora Bonds; Sustainable Bonds (Green Bonds and Social Bonds); and Syndicated Term Loans.
President of IMANI Africa, Franklin Cudjoe, has called for Finance Minister, Ken Ofori-Atta and one of his deputies, Charles Adu-Boahen, to recuse themselves from the Agyapa deal.
The deal has been temporarily suspended following a corruption risk assessment by the Office of Special Prosecutor that found numerous infractions of law about the deal.
Franklin Cudjoe told Citi News on Saturday that calls for the resignation or dismissal of the Finance Minister over the matter is a bad call.
“So I think right from the onset, the Finance Committee did a thoroughly shoddy job. Either they decided to be sleepy on the job or decided not to pay attention to the basic evaluation mathematics. We could have avoided this shame. We have entered this deal badly and I think the call on the Finance Minister is not necessarily proper.
“I rather wish he together with Charles Adu-Boahen recuse themselves from the deal. The president has enough other competent men to put together the deal and then they can be approached at later stages after widely consultative stages,†Mr Cudjoe is quoted in a Citi News report.
There have been many proposals for the dismissal of the Minister of Finance over the Agyapa Minerals Royalties deal.
Presidential Running Mate of the PPP, Mr Asamoah Siaw, said Mr Ofori-Atta engaged in “conflict of interest, bid-rigging and violation of procurement rules” in his attempt to transfer Ghana’s mineral royalties into private hands under the guise of creating value for natural resources.
The deal is expected to be taken back to Parliament next year for the issues raised about the deal to be resolved.
The Member of Parliament for Yapei-Kusawgu Constituency, John Jinapor, has noted that Ghana is broke at the moment considering the budget statement presented to Parliament by Finance Minister Ken Ofori-Atta for the first quarter of 2021.
He explained that out of the GH¢27 billion the Finance Minister is requesting from Parliament, GH¢10 billion will be used to service debts.
This, he said, indicates that the country is broke.
Mr Ofori-Atta was seeking parliamentary approval for over GH¢27 billion for the first quarter of 2021.
He said this amount is for the purpose of meeting expenditure necessary to carry on the services of the government in respect of the coronavirus period.
In his budget statement presented to Parliament on Wednesday, October 28, Mr Ofori-Atta asked the House to approve an estimated GH¢27,434,180,520.00 to be withdrawn from the Consolidated Fund.
“For the purpose of meeting expenditure necessary to carry on the services of the of the Government in respect of the period expiring three months from the beginning of the financial year or on the coming into operation of the Appropriation Act in respect of the 2021 Financial year.â€
But speaking to journalists on the budget presentation, Mr Jinapor said: “In 2016 when Honourable Seth Terkper, the then Finance Minister came here, he requested for about GH¢10 billion.
“Today Mr Ken Ofori Atta is requesting GH¢27 billion. Out of that GH¢27 billion over GH¢10 billion of that amount will be used to service debts it tells you that this country is broke.â€
Finance Minister, Ken Ofori-Atta, has asked Parliament to approve GH¢27.4 billion to spend between January to March 2021.
The Finance Minister presented the budget statement to cover only three months of 2021 because 2020 is an election year, with the possibility of a change in government, hence the budget for the following year must be limited to just the first quarter.
This is to prevent possible expenditure challenges in case of a change in government.
“Mr Speaker, we will require an amount of GH¢27.4 billion to carry on the services of government until the expiration of three months from the beginning of the 2021 Financial Year,†he told Parliament on Wednesday, October 28, 2020.
Ken Ofori-Atta explained that the total amount will cover government operations, such as:
1. Compensation of Employees – GH¢7,708,960,148
2 Goods and Services – GH¢1,595,571,683
3 Interest Payments – GH¢7,002,221,941
4 Subsidies – GH¢259,087,194
5 Grants to Other Government Units – GH¢4,340,216,517
6 Social Benefits – GH¢41,271,000
7 Other Expenditure – GH¢813,610,025
8 Capital Expenditure – GH¢1,903,658,408
– Total GH¢23,664,596,915
9 Arrears Clearance – GH¢350,000,000
10 Amortisation – GH¢3,419,583,605
– Appropriation – GH¢27,434,180,520
“For the purposes of the 2021 Expenditure in Advance of Appropriation, we have projected the 2021 first-quarter total revenue and grants at GH¢13.3 billion while total expenditure including the clearance of arrears is projected at GH¢24.0 billion. This results in the projected fiscal deficit of GH¢10.7 billion for the period,†he said.
He revealed further that to support the 2021 budget and liability management, his Ministry plans to source funding from the international capital market.
According to the Minister, the sourcing of funds from the international market will include the issuance of sovereign bonds of $3 billion, with the option to increase it to $5 billion, if market conditions are favourable.
He said out of this amount, $1.5 billion will be used to support the 2021 budget and $3.5 billion for liability management.
Ken Ofori-Atta, the finance minister, says the Akufo-Addo administration has made resources available for the December 7 elections.
Presenting the 2021 first-quarter budget to Parliament on Wednesday, Ofori-Atta noted, “We have made adequate provision to ensure that the elections are conducted in a safe and secured environment.â€
He added that security measures have also been set out by the administration to ensure that the election is violent-free.
Ofori-Atta observed that the financial provision made in the budget is “to ensure that we have peaceful elections and effectively contain all threats.â€
The Finance Ministry of Ghana under the leadership of Ken Ofori-Atta has been able to put together more than 50 Bills passed into law by Parliament within the last four years.
According to Ken Ofori-Atta, his outfit together with Parliament are grateful to the Speaker of Parliament and its Honourable members for achieving the feat since 2017.
“Together with this Parliament, the Ministry of Finance alone has passed more than 50 Bills into law in the last four years. I, and all of the team at the Ministry of Finance, humbly thank you, Mr Speaker and Honourable Members.â€
The Finance Minister said this while he presented the 2021 Expenditure in Advance of Appropriation budget before Parliament on Wednesday, October 28, 2020.
Meanwhile, some of the laws passed under the Finance Ministry in Parliament are; The Tax Amnesty Act 2017, Customs (Amendment) Bill, 2020, Earmarked Funds Capping and Re-alignment Bill, 2017, Payment Systems and Services Act and others.
Meanwhile, an amount of GH¢27.4 billion has been requested by the Finance Minister from the government intended towards the expenditure of the first quarter of 2021.
The Minister making a case for the approval before Parliament said, “that this Honourable House approves by resolution, the withdrawal of the sum of twenty-seven billion, four hundred and thirty-four million, one hundred and eighty thousand, five hundred and twenty Ghana cedis (GH¢27,434,180,520.00) from the Consolidated Fund.”
“This is for the purpose of meeting expenditure necessary to carry on the services of the government in respect of the period expiring three months from the beginning of the financial year or on the coming into operation of the Appropriation Act in respect of the 2021 financial year,†he added.
The request made by the Finance Minister is intended to prevent transitional encounters in the affairs of the central government for the first three months after the general election.
Finance Minister Ken Ofori-Atta has assured Ghanaians government has made appropriate budgetary allocations to ensure that the upcoming December 7 polls is conducted safely and in all transparency.
According to him, even though the economy has suffered some major setbacks as a result of the outbreak of coronavirus, government is on track in delivering quality elections.
Presenting the 2021 budget statement on the floor of parliament October 28, 2020, Mr Ofori Atta said “Mr. Speaker, I want to reassure the House that, despite the set-backs from the pandemic, we are on-track to recover. We have made adequate budgetary provision to ensure that the elections are conducted in a safe and secure environment.â€
In terms of security, Mr Ofori-Atta announced that government has put necessary measures in place to contain all possible threats and acts of violence.
He remarked, “Government has also instituted various security measures to ensure that we have peaceful elections and effectively contain all threats.â€
Ghanaians will on December 7, 2020, head to the polls to elect new leaders for the next four years.
Finance Minister, Ken Ofori-Atta, will in a few hours present the budget for the first quarter of 2021, as stipulated by the law.
The Public Financial Management Act (2016) requires the Finance Minister to present the budget for the upcoming year to Parliament for approval before that year begins.
For instance, the 2020 budget was brought to Parliament in November 2019 and the 2021 budget is being presented just before 2020 ends.
However, because 2020 is an election year, with the possibility of a change in government, the law states that in an election year, the budget for the following year must be limited to just the first quarter January to March.
The Expenditure in Advance of Appropriation, January to March, 2021, which the Minister will present to Parliament, is to prevent possible expenditure challenges in case of a change in government.
And then later, in March of 2021 (or generally in March of the year preceding an election year), whoever is Finance Minister will be expected to present the full year’s budget.
What to expect
At the presentation on the floor of Parliament on Wednesday, October 28, 2020, the Finance Minister is expected to request the House to approve for government to spend about GH¢27 billion between January and March, 2021.
He is also expected to detail the projected revenue and expenditure between the same period.
Deputy Minister of Agric in Charge of Perennial Crops, Kennedy Osei Nyarko, told Journalists in Parliament that the presentation may cover the wages and salary and other minor expenditure of the government.
“I am not sure you are going to see any huge thing…like the construction of buildings. No that is not going to happen. It is going to be a normal recurrent expenditure of government,†he said.
Minister of Finance, Ken Ofori-Atta is expected to present to Parliament on Wednesday, October 28, 2020 the Expenditure in Advance of Appropriation from January to March 2021.
Besides, the House is also expected to consider the report of the Finance Committee on the Appropriation and thus take the consequential Parliamentary action.
Majority Leader, Osei Kyei-Mensah-Bonsu announced this on the floor of the House when he presented the Business Statement for the Fourth Week ending Friday, 30th October 2020.
Mr Kyei-Mensah-Bonsu also announced that the House was scheduled to sit on Monday, October 26, 2020, as recommended during the presentation of the previous Business Statement.
He explained that sittings of the House may also be extended beyond 1400 hours as stipulated in Order 40(2) to enable the completion of scheduled business for each day of the week under consideration.
He entreated all Committees with referrals, which required Parliamentary consideration within the brief period to expedite work on same and report to plenary as soon as practicable.
Special Prosecutor Martin Amidu has called on the Finance Ministry to hold on with its scheduled initial Public Offer (IPO) on the Agyapa royalties deal until he is done with his corruption risk assessment on the transaction.
“This Office would have wished to complete its corruption risk assessment on the Agyapa Royalties Transaction soonest but for the non-submission of the information and documents pending to be submitted by your Ministry. The information and documents you supplied concerned mainly the processes for and the appointment of the Transaction Advisors which goes to the root of any corruption risk assessment,†Mr Amidu said in a letter to the Finance Ministry.
The letter added: “Information and documents relating to the identification and recommendation by the transaction advisors to your Ministry for appointment a list of other services providers and or underwriters that may be required to complete the transaction as provided in clause 2.2.1 of the mandate agreement amongst others, that are critical to any through corruption risk assessment are also outstanding. The legal opinions particularly of the principal legal advisor to the government under the Constitution are relevant to ensure compliance with her recommendations as part of any corruption risk assessment.â€
“In the circumstances, this Office wishes to urge you to abide by the results of the corruption risk assessment it is undertaking on the transaction before moving to the launching of the IPO transaction. This Office makes this suggestion on the grounds of prudence on your part and to also not give the impression that the mandate of this Office on prevention of corruption is of no consequence to the transaction,†it noted.
About the Agyapa deal
Parliament August 14th approved the controversial Agyapa Mineral Royalty Limited agreement with the government of Ghana despite a walkout by the Minority.
Two years ago, the House passed the Minerals Income Investment Fund Act 2018 which establishes the Fund to manage the equity interests of Ghana in mining companies, and receive royalties on behalf of government.
The fund is supposed to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country.
The law allows the fund to establish Special Purpose Vehicles (SPVs) to use for the appropriate investments. Last month, government introduced an amendment to the act to ensure that the SPVs have unfettered independence.
The approval will enable the country to use a special purpose vehicle, Agyapa Royalties Limited to secure about $1 billion to finance large infrastructural projects.
The Ministry of Finance has debunked claims that the Agyapa Royalties transaction has been suspended.
“The Ministry wishes to state that the Agyapa Royalties transaction has not been suspended as is being reported,†a statement from the Public Relations Unit of the Ministry said.
It said Mr Mark Agyemang, the Technical Manager of the Public Interest and Accountability Committee, who is purported to have spoken about the suspension, was not in the meeting with the Civil Society Organisations (CSOs).
“The main outcome of the meeting as acknowledged by both sides was that the Government had fulfilled the requirements of the law. There was, however, the need for broader consultations to ensure the buy-in of all Ghanaians,†it said.
The statement said the meeting with the CSOs was one such consultation and the Ministry agreed with them to further broaden the consultations and to solicit further input from them and other Ghanaian constituencies going forward.
A number of concerns raised by the CSOs included registration of the entity in a tax haven, transparency, how the values were arrived at and what the country stood to benefit from the Agyapa Royalty transaction.
“After their concerns were aptly addressed by the Minister of Finance and his Deputy, they called on the Government to engage other institutions and stakeholders. At no point was there any suggestion that the transaction is being halted as being reported,†the statement said.
“It is regrettable for a media house to publish such a story and wrongfully attribute it to people who contributed meaningfully at the meeting with the Minister of Finance. The Ministry sees the media as a major stakeholder and wishes to call on them to seek clarity, especially on such emotive issues, before publishing.â€
Ghana’s Finance Minister, Ken Ofori-Atta has stated the government of Ghana cannot compromise on the economy of the country.
He said we have to maintain a stable economy and move into an era of stronger Ghanaian companies, stronger financial institutions, and stronger health systems.
The government, he said has put in place measures to ensure the economy remains strong despite the outbreak of the coronavirus outbreak.
The Minister added only Ghanaian contractors would embark on projects initiated by government and from there; we will pivot into a massive housing scheme nationwide.
“So you are going to see work in the sense of enterprise going on, and that will lead to the whole concept of Ghana as a regional hub which we area going to push hard to make Ghana a world class economy.”
He asked Ghanaians to retain the NPP because with the NPP, we have a brighter future.
Mr. Ofori-Atta was speaking at Cape Coast where the party is expected to launch its manifesto for the 2020 general elections.
Mr Ken Ofori-Atta, the Finance Minister has told Parliament on Wednesday, July 29, that during the lockdown period the government budgeted GH¢40.3 million for basic uncooked food items but spent GH¢42.2 million.
He also clarified that government used GH¢12 million to feed the vulnerable in the Greater Accra and Ashanti regions during the three-week COVID-19 lockdown period. He said that: “It is truly unfortunate that an attempt has been made to politicise the issue of providing food for our brothers and sisters in need during the lockdownâ€, adding: “It is also unfortunate that the impression has been created that the total amount of GH¢54 million was used for hot meals over the three-week lockdown period.â€
Mr Ofori-Atta explained: “We estimated we would need an amount of approximately GH¢40 million to provide hot meals to the vulnerable at GH¢5 per pack during the lockdown period. However, we spent GH¢12 million on hot meals including the cost of distribution.â€
He noted that the “government budgeted GH¢40.3 million for basic uncooked food items. We spent GH¢42.2 millionâ€.
“It is this GH¢12 million spent on hot meals and the GH¢42 million spent on uncooked food items that gave a total of GH¢54 million as stated in the mid-year reviewâ€.
“The GH¢12.1 million for hot meals served 150,000 people during the lockdown [period], including the cost of transportation and other operational cost.â€
Minister of Finance, Ken Ofori-Atta says the Government of Ghana has no regrets over the collapse of some financial institutions in the country.
Following a move by the Central Bank and the Securities and Exchange Commission (SEC), fifty-three (53) fund management companies and over twenty banks, as well as Savings and Loans companies, had their licences revoked over issues of financial mismanagement and unfair treatment of their customers.
Banks like the uniBank, GN Bank, Heritage Bank, Sovereign Bank Limited and Capital Bank among others were taken over by the Central Bank.
Five of the insolvent banks namely The Royal Bank, Beige Bank, Sovereign Bank Limited, Construction Bank and Unibank were amalgamated into a Consolidated Bank Ghana which is chiefly owned by the State.
Speaking in an interview with host Kwami Sefa Kayi on Peace FM’s ‘Kokrokoo’, Hon. Ofori-Atta sent no apologies to the collapsed banks.
According to him, he believes in the banking reforms by the financial authorities resulting in the revocation of the licences of the banks.
Responding to accusations of wrongdoing on the part of the government regarding the banks, the Finance Minister said he doesn’t expect every Ghanaian or opposition political party members to like him or the government for doing the right thing.
Finance Minister, Ken Ofori-Atta has expressed hope in the administration of President Nana Addo Dankwa Akufo-Addo to revamp the economy despite the ravages of the COVID-19 pandemic.
According to the Minister, although the pandemic has had adverse effects on the nation, the Akufo-Addo government has made significant plans to confront the impact of the pandemic and ensure a robust economy.
Speaking in an interview on ‘Kokrokoo’ on Peace FM, Hon. Ofori-Atta noted the government’s ”Obaatan Pa Ghana Cares” initiative which he announced in his 2020 mid-year budget review in Parliament yesterday is part of the development measures.
The initiative is to raise about 100 billion cedis to cushion the economy.
The Minister was extremely optimistic that Ghana will stand on her strong feet under the leadership of President Akufo-Addo.
“Since we came into power and inheriting arrears, the IMF programme and so forth; still since 2017, we have spent 900 million cedis on teacher trainees and nurses trainees which the NDC said it can never happen. In addition to that, feeding of children everyday, it used to be about 1.7 million children but we have reached almost 3 million that we feed everyday. We’ve been able to do that too. And when you take the free education that the opponents said we couldn’t do but now 1.2 million Senior High School…that also amouts to about GHC 3 billion. Someone will ask where did we get the money? Look at our introduction of NABCO that has created jobs for students who were stayed home for about 3-4 years without employment . . .
” . . you can’t give up and when you don’t and you keep thinking and you care deeply about the people as a government that cares, things come up. Because one can get people to work, then you have innovation, you have productivity and you get more and different ideas. My hope is also rarely a deep, deep belief in the capacity of the Ghanaian if he’s supported,” he stated.
Government says it intends to use the development in the automobile industry as a catalyst for import substitution and exports of Ghanaian products within the African region.
Speaking at the Mid-Year Policy Review in Parliament yesterday, Finance Minister said the automobile industry is considered by the government as a strategic anchor and one that has the potential to transform the economy.
“Ghana is well positioned to become the new automobile manufacturing hub in Africaâ€, Ken Ofori-Atta stated.
Giving details on the sector, he said the Ministry of Trade and Industry policy on Industrial Transformation Agenda is a significant step towards import substitution and boost exports within the context of the African Continental Free Trade Area (AfCTA).
The introduction of a comprehensive Automotive Manufacturing Development Policy, government sources say, have attracted leading global automobile companies to the country.
In March this year, the Volkswagen Group rolled out the first VW locally assembled vehicle in the country. VW Ghana is currently producing six different brands of vehicles, namely Tiguan, Teramont, Amarok, Passat, Polo and Caddy,
Sinotruk, a leading global manufacturer of Heavy Duty Trucks is also assembling a variety of trucks in the country through Zonda Tec Ghana Limited.
The only indigenous Ghanaian company, the Kantanka Group has also been formally granted a license to continue their auto assembly operations in Ghana and to benefit from incentives under the Ghana Automotive Manufacturing Development Policy, Mr Ofori-Atta disclosed.
To consolidate these gains so far, the government, the Finance Minister noted, will establish an Automobile Industry Development Center in the country.
The Centre will among other things, coordinate the technical processes for licensing vehicle assemblers and manufacturers and monitor their compliance with industry regulations and standards.
The Center will also coordinate the implementation of a Vehicle Financing Scheme which will link financial institutions to individuals and groups interested in purchasing newly assembled vehicles in Ghana.
Furthermore, it will manage an Automotive Skills and Technology Upgrading Programme to provide requisite skills for the industry.
“The continued and successful implementation of these interventions is delivering real relief to our people. Effectively, we are gradually building a stronger foundation for a more inclusive transformation of our countryâ€, the Minister concluded.