Fifteen people made up the first General Legal Council of Ghana, which was presided over by Sir Arku Korsah, who was also the Chief Justice at the time.
The council was established after March 6, 1957, when Ghana gained independence.
On September 1, 1958, Mr. K.S. Yaasi, the Supreme Court’s Acting Chief Registrar, named the first group of members for the legal council.
The General Legal Council, which was established as the primary legal regulating organization, was given the responsibility of conducting and governing legal education and practice in Ghana.
By design, the council has the authority and capacity to decide on the direction and policy for legal education and training, as well as the rules governing professional legal practice and related issues.
This was later published in the Daily Graphic on September 2, 1958.
According to the article, the 15 members were;
Chief Justice, Sir Arku Korsah, Chairman, Mr. A. E. A. Ofori-Atta, Minister of Local Government, deputy chairman, Mr. Justice Van Lare, Justice of Appeal, Mr. Justice Granville Sharp, Justice of Appeal, Mr. Geoffrey Bing, Q.C., Attorney General, Professor J. H. A. Lang, head of the faculty of law, University College of Ghana, Mr. Justice C.S. Acolatse, Puisne Judge, Sir Leslie M’Carthy, retired Puisne Judge, Sir Emmanuel Quist, retired Speaker of the National Assembly, Mr. Kojo Botsio, Minister of Trade and Industries, Mr. Kweku Boateng, barrister-at-law, Mr. A. M. Akiwumi, Speaker of the National Assembly, Mr. R. S. Blay, barrister-at-law, Mr. Cobina Kessie, M.P. barrister-at-law and Mr. Akufo-Addo, barrister-at-law.
The General Legal Council was set up by an Act to consolidate and amend the law relating to the Legal Profession in Ghana. The Legal Profession Act, 1960 (Act 32). The Legal Profession Act among other things is expected to organize legal education and uphold standards of professional conduct and discipline.
A petition filed by the coalition of Individual Bondholders Forum has urged President Nana Akufo-Addo to keep his promise to pay bondholders’ coupons when their bonds mature.
The coalition, made up of the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, said they are owed GHS1,051,548,001.
“We are saddened to have to resort to petitioning you [president] for a resolution to the continuous non-payment of old bonds due”, the petition read, adding: “Your Excellency, you have been categorical in your assurances of payment to individuals who opted to trust your government and invest in its bonds”.
“At your recent state of the nation address, you reaffirmed your honourable position saying: ‘I know it has been said over and over again in the past few weeks, but the voluntary nature of the DDE Programme bears repeating, as is the fact that the government is committed to honouring all coupon payments and maturities in respect of both old bonds and the new bonds in line with government fiscal commitments’”.
“Unfortunately, contrary to your professed honourable position, the government has since the completion of the Domestic Debt Exchange programme (DDEP) failed to honour five out of eight payments due under the old bonds totalling about GHS1bn for individual bondholders. The following payments remain outstanding”, the group said.
It noted: “Your Excellency, we have endeavoured to nurture a very cooperative and healthy relationship with the Ministry of Finance to effectively manage expectations of our membership and sustain a stable social environment relative to the tensions that marked the beginning of the DDEP”.
Unfortunately, the bondholders noted, “our cooperation has been taken for granted”.
“We have, on four occasions, requested the Minister of Finance to advise a payment schedule to provide guidance to investors”, the coalition said.
It noted: “We are disappointed to bring to your notice that none of these requests has been responded to. Neither has our request to meet been honoured”.
“Needless to say, amidst the current economic challenges, savings have become a major source of income for many families to self-sustain”.
“The continuous delay or disregard for these payments is creating undue distress for your fellow Ghanaians”, the group complained.
“Our members depend on these funds to meet pertinent needs like medication, children’s education and the general welfare of their families and include pensioners whose sustenance, health, dignity of independence and honour of responsibility in taking care of their young wards and families are contingent on these savings”.
“We do recognise the fiscal challenges government faces and for which reason we have expressed willingness to cooperate over a mutually viable payment schedule and structure”.
“Respectfully, the non-responsive conduct of the Finance Ministry leaves much to be desired and represents a gross breach of trust not just with us, as creditors, but between the government and the governed”.
“Your Excellency, your fellow Ghanaians are suffering unduly”.
“We urge you to take urgent and necessary steps to rationalise this situation and honour your word to effect payments due to individual old bondholders”.
In order to pass the three revenue bills that are currently before the House, Kojo Oppong Nkrumah, minister of information, has urged the minority in parliament to cooperate with the majority.
They are theIncome Tax Amendment Bill, Excise Duty Amendment Bill, and Growth and Sustainability Amendment Bill.
The government is seeking to pass these bills to generate approximately GH¢4 billion per year to supplement domestic revenue.
Mr Oppong Nkrumah who is also a Member of Parliament for Ofoase Ayirebi told journalists in an interview on Tuesday, March 28 that “To our colleagues in the Minority, I think it is clear that we need to work together to achieve a certain objective for the country.
“Sometimes we are whipped up but let’s look at the country’s interest at this point in time.”
“The world is ready to help us, China, the Paris Club and external creditors are all with us in a good place now and are looking at us to see if we can help ourselves. My appeal to those in government, Minority, economic groups is that, we must ensure that these revenue bills are passed to close this GH¢4 billion gap”, he added.
Governor of the Bank of Ghana (BoG) Dr Ernest Addison also urged the House to prioritize passage of the Bil.
He said that the Monetary Policy Committee noted that the budget statement for 2023 has set fiscal policy on a consolidation path.
He said this was consistent with key elements agreed with the International Monetary Fund (IMF) at the Staff Level in December 2022.
The domestic debt exchange programme launched by the government, new revenue measures, and structural fiscal reforms will provide significant reduction of debt service and help create fiscal space, Dr Addison stated.
Addressing the 111th Monetary Policy Committee (MPC) press conference in Accra on Monday, March 27, he said the fiscal outlook is contingent on financing of the budget and will require the conclusion of the domestic debt exchange programme as well as securing the requisite financing assurances from bilateral donors. Indications are that these discussions are proceeding well.
“Based on the above, it is imperative that Parliament prioritizes the passage of the revenue bills currently before it,” Dr Addison said.
He further intimated that under the Staff Level Agreement with the IMF, the Bank of Ghana and the Ministry of Finance have finalised a Memorandum of Understanding on zero financing to the budget, which will be signed shortly.
“The passage of the relevant revenue bills by Parliament will therefore conclude the required prior actions to advance Ghana’s programme to the IMF Executive Board.
“This will be critical in resetting the economy on the path of recovery, including putting it firmly on a disinflation path and sustained growth,” he said.
Last week, Finance Minister Ken Ofori-Atta, led a high-level delegation from the ministry to China to engage in bilateral talks with his Chinese counterpart and other Chinese officials.
The Finance Ministry said that Mr Ofori-Atta had very positive and encouraging meetings in China.
The Ministry said they were looking forward to securing external assurances very soon.
“So far had very positive and encouraging meetings in China! Looking forward to securing external assurances very soon, even as we pass our outstanding domestic revenue bills back home. Great progress on all fronts…#ResolvingTogether #GhanaFirst,” the Office of the Finance Minister tweeted on Friday.
Mr Ofori-Atta also mentioned to the Chinese Finance Minister Liu Kun the Domestic Debt Exchange Programme that has been introduced by the government as an indication that Ghana was ready to take the necessary action to readjust its fiscal path.
In response, Mr Kun said “we know that these are short-term challenges which we as responsible creditors remain committed to resolving” and that “the long-standing and prosperous relationship between Ghana and China imposes on us, a responsibility to help”.
The Chinese Finance Minister further said it was the hope of his country that Multilateral and Commercial creditors would also fully participate in the interest of burden sharing.
“Chinese authorities have confidence in Ghana’s economic management, and its long-term economic viability,” Mr Kun said.
He added “China believes in promoting debt sustainability and sustainable development,”
He said these when Mr Ofori-Atta, led a high-level delegation from the ministry to China to engage in bilateral talks with his Chinese counterpart and other Chinese officials.
Ghana’s objective to receive a credit facility worth $3 billion from the International Monetary Fund (IMF) by the end of March seems to be on tenterhooks.
This is because, on the IMF Executive Board Calendar, the Fund has not made room for a discussion on Ghana’s request for economic support.
From March 22 to 29, 2023, the IMF will be in Papua New Guinea, Peru and Colombia.
In Papua New Guinea, the IMF Board will be looking at the Request for the Extended Credit Facility/Extended Fund Facility.
The IMF Board will have a 2023 Article IV Consultation Meeting and 2023 Article IV Consultation with Peru and Colombia respectively.
The IMF Board per the calendar has no official business up until March 27, 2023, when it engages Burkina Faso over its Request for Disbursement Under the Rapid Credit Facility.
The Board’s final engagement in March happens on March 29, 2023. It will be providing a World Economic Outlook; Global Financial Stability Report; Fiscal Monitor.
According to the IMF on its website, its calendar is subject to change, however the agenda for each meeting is typically finalized the day before the meeting.
President Akufo-Addo has assured that Ghana would receive support from the IMF by the end of this month.
While presenting the State of the Nation’s Address on March 8, he said “we are on course for the IMF Staff to present to the IMF Executive Board Ghana’s programme request for a $3 billion extended credit facility by the end of the month.”
The Minority Leader, Dr Cassiel Ato Baah Forson, is however, pessimistic about Ghana making headway in its engagement with the Fund.
He argued that Ghana is yet to receive financing assurances from its creditors, hence his posture on the subject.
“We need to get China to give Ghana financing assurance that they are ready to accept a haircut. Aside that, we are also expected as a country to get financing assurance from the Paris club, including Germany, who are telling us to go and cut down the size of our government and reduce government expenditure yet we don’t seem to care,” he said.
It has been eight months since the Akufo-Addo-led government reached out to the IMF – believed to be the seventeenth time Ghana has gone to the Fund.
Meanwhile, Finance minister Ken Ofori-Atta will travel to Beijing on Wednesday to meet Chinese officials to discuss a proposed restructuring of Ghana’s debt.
On February 6, 2023, President Akufo-Addo announced China’s relevance in steps towards the recovery of the Ghanaian economy.
Engaging the Finance Minister of Germany, Christian Lindner, the President asked that he put in a word for Ghana to convince President Xi Xinping to assist the West African country.
“We have good relations with China. We would like you to encourage China to participate in these programmes as quickly as possible,” President Akufo-Addo said.
Fifteen days later, reports emerged that Ghana had personally initiated talks with China.
Finance Minister Ken Ofori-Atta planned to visit China, which it owes about $1.7 billion according to Reuters, and holds $5.7 billion of its external bonds by the end of the week (February 26).
Due to the National People’s Congress of China meeting scheduled for March 5, 2023, the meeting was postponed.
On Monday, March 20, 2023, Mr Ofori-Atta left Ghana for China to resume discussions on a debt cancellation.
Finance Minister Ken Ofori-Atta has revealed that the Ministry of Finance has officially written to the Pensioner Bondholders Forum over their exclusion in government’s Domestic Debt Exchange Programme (DDEP).
Speaking on the floor of Parliament on Thursday, February 16, 2023, the minister said he had presented the said letter to the group’s convener, Dr Adu Anane Antwi.
“Mr Speaker, in seeking to understand the concerns of our Senior Citizens, I have met with them on three occasions. The most recent was yesterday 15th February 2022, where I explained the terms of the new bonds.”
“Mr Speaker, I subsequently wrote to their Convener, letting him know that all pensioners who did not participate in the exchange are exempted and therefore there will be no need for our Senior Citizens to picket at the Finance Ministry. Mr Speaker, I would like to thank all those who helped in those discussions,” he said.
However, it is reported that Dr Adu Anane Antwi is yet to receive the said letter.
“Meanwhile, Myjoyonline.com’s checks with the convenor, Dr Adu Anane Antwi, reveal that he is yet to receive any letter to that effect from the Minister,” MyJoyOnline reported.
The Pensioner Bondholders Forum has held intense protest at the forecourt of the Finance Ministry over the past week over the programme, which they believe will cripple their finances.
Among the protesting pensioners is former Chief Justice, Sophia Akuffo, who has also condemned the programme.
President Nana Addo Dankwa Akufo-Addo on January 6, 2023 asked Finance Minister, Ken Ofori-Atta to serve as the caretaker Minister of Trade and Industry.
The development came after the President accepted the resignation of Trade and Industry Minister, Alan Kyerematen after reports emerged he tendered his resignation on Thursday 5, 2023.
Another school of thought asked why one of Alan’s deputies could not be handed an acting role till the vacancy is filled.
In an explanation as to why none of Alan’s two deputies were ‘promoted’ to acting capacity, Kow Essuman, who is a lawyer for president Akufo-Addo said it had to do with what the law says and also the specific oath an appointee took.
“As Deputy Minister, you were nominated by the President, vetted and approved by Parliament and swore the Deputy Minister’s oath before the President. You were appointed pursuant to art. 79 to assist your Minister, who participated in Cabinet meetings.
“In your Minister’s absence from Cabinet, his/her colleague Cabinet Minister held his/her brief and provided reports and briefings to Cabinet and not the Deputy Minister,” Essuman explained.
Below are some of the reactions:
Although there are no clear reasons for Alan Kyerematen’s resignation, it is believed that he did so on the basis of contesting in the flagbearership race of the New Patriotic Party (NPP) ahead of the 2024 general elections.
In a statement issued by the Presidency on January 6, 2023 noted that Alan Kyerematen personally informed the President of his decision to resign from his position as Trade Minister.
The statement added that Ken Ofori-Atta will assume the position as caretaker Minister of Trade and Industry until a substantive minister is appointed for the ministry.
Meanwhile, President Akufo-Addo thanked Alan Kyerematen for his services to government, and the country and wished him the very best in his future endeavors.
According to the Special Prosecutor, Kissi Agyebeng, his office has started an investigation into the circumstances surrounding an anonymous, wealthy businessman’s alleged effort to bribe several New Patriotic Party lawmakers to soften their demand for the resignation of Finance Minister Ken Ofori-Atta.
This information can be found in the Office of the Special Prosecutor’s half-year report (OSP).
“The Office has triggered a liaison with the Office of the Speaker of Parliament in this regard,” the report revealed.
The OSP says that the report’s distribution complies with Section 3(3) of the Office of the Special Prosecutor Act, 2017 (Act 959).
The 13-page report provides information on the corruption cases that the Office of the Special Prosecutor (OSP) has looked into and brought to justice as well as highlights of the Office’s work from August 1, 2022, to December 31, 2022.
The Special Prosecutor, Mr. Kissi Agyebeng, outlined the cases that are currently being prosecuted, those that have been resolved, and ongoing investigations in the report.
The anonymous wealthy businessman’s alleged effort to bribe the NPP MPs is one of the continuing instances being investigated.
“The Office has commenced investigation into allegations of an attempt by an unnamed and wealthy businessman to bribe some members of the majority caucus of Parliament,” part of the report read.
It would be recalled that in October last year, some New Patriotic Party (NPP) parliamentarians demanded the sacking of Ken Ofori-Atta as Finance Minister for alleged poor performance.
The MPs, numbering about 80, held a press conference to impress upon the President to relieve his cousin of the responsibility of managing the national purse or risk losing their support for government business going forward.
They also asked that the Minister of State at the Ministry of Finance, Charles Adu Boahen, be subjected to a similar fate.
It was addressed by MP for Asante Akyem North, Andy Appiah-Kubi.
According to him, the call had been communicated to the Presidency through the leadership but to no avail.
“Notice is hereby served that until such persons as aforementioned are made to resign or removed from office, we members of the Majority caucus here in parliament will not participate in any business of government by or for the President [or] by any other minister,” he explained.
Later, in an interview on JoyNews PM Express, the Majority Leader, Osei Kyei-Mensah-Bonso revealed that an unnamed businessman visited Parliament house to mediate the impasse.
He explained that in the heat of the arguments in Parliament, the said businessman met some of the legislators.
“I’m told on authority that some businessman came here and tried to do something,” he told Evans Mensah.
The Suame MP insisted that it was meant to help persuade the members of the house against nudging the Minister out of office.
“I was told that he came here and tried to mediate in his own way what he thinks the problem is,” he said.
“He further narrated that “he was repelled by the people and was told not to involve himself. So he went away.”
This assertion was confirmed by Mr. Andy Appiah-Kubi in a blow-by-blow narration of how the wealthy Ghanaian businessman attempted to influence the Majority Caucus to back off on their request.
The MP in an interview on Top Story, said the wealthy businessman on the day after the Press conference was held to demand Mr. Ken Ofori-Atta’s dismissal, requested to meet the 80 NPP MPs in Parliament.
His request was subsequently granted. According to Mr. Appiah-Kubi, during the meeting, the business tycoon tried to influence the MPs to rescind their request.
The lawmaker said he offered a ‘fat’ envelope which contained some undisclosed amount of money for the MPs to back off from their demand.
However, Mr. Appiah-Kubi noted that the MPs turned down the affluent man’s request and asked him to stay off the matter.
Mr. Kissi Agyebeng says he is poised to find out who the businessman is and take the necessary action.
Prof. Steve Hanke, an American economist, has continued to criticize Minister of Finance Ken Ofori-Atta for using biblical allusions to support his claims of an economic revival.
The Economist cited a reference to Scripture the Minister made late last year in a report headed “Ghana has negotiated a preliminary IMF deal and halted debt payments,” which Hanke wrote on January 2, 2023.
“Ghana’s Finance Minister Ofori-Atta justified defaulting on debt by quoting the Bible: “nothing will be lost, nothing will be missing.”
“The Bible is a poor guide for macroeconomics. It’s time for Ofori-Atta to stop bamboozling Ghanaians and get real,” he emphasized.
When Ofori-Atta launched a Domestic Debt Exchange program, one of the crucial requirements that led to a government and International Monetary Fund (IMF) Staff-Level Agreement days later, he made the biblical allusion.
Ghana's Finance Minister Ofori-Atta justified defaulting on debt by quoting the Bible: "nothing will be lost, nothing will be missing." The Bible is a poor guide for macroeconomics. It’s time for Ofori-Atta to stop bamboozling Ghanaians and get real https://t.co/iY1Q1LTVVC
The intention to include pensions in the Exchange program, which plan has been cancelled with individual bonds now implicated, was a particular point of contention for the administration with labor.
Ghana experienced a disastrous 2022 as a result of an economic crisis that compelled the government to apply for a loan from the IMF at a time when the cedi was fast losing value, inflation was out of control, and the government was subject to many downgrades by rating agencies.
The government has serially blamed the crisis partly on the aftershocks of the COVID pandemic and the ongoing Russia-Ukraine war.
It has promised to turn around the economic fortunes of the country after sealing a Staff-Level agreement with the IMF with the hope that funds from the US$3 billion facility will be released early this year.
The domestic debt exchange deadline has been extended from December 19 to December 30, with a settlement date of January 6, 2023, according to a statement from the Ministry of Finance.
The Ministry claims that the extension is in response to input from the financial industry over the requirement to get internal and Executive Board clearances, which are required considerations for their participation in the exchange.
“The extension also affords Government of Ghana the opportunity to consider suggestions made by all stakeholders with the aim of adjusting certain measures acceptable within the constraints of the Debt Sustainability Analysis,” it added.
The extension comes in response to criticism of the debt exchange program’s structure from participants in the financial sector.
Critics claim that because the financial sector bears the bulk of the burden, the system is biased in favor of the government.
The Ministry declared that it is trying to rework the debt exchange offer with the Bank of Ghana, other financial sector authorities (SEC, NPRA, and NIC), as well as its advisors, including input from various institutions and the Unions.
“We believe this extension will provide enough time for the necessary consultations and analysis to be completed to meet the expectations of local and foreign institutional bondholders while preserving the integrity of the Debt Sustainability Analysis and the Staff Level Agreement,” it concluded.
Stéphane Roudet, the IMF’s Ghana Mission Chief, said in a statement posted on the website of the Fund: “I am pleased to announce that the IMF team reached staff-level agreement with the Ghanaian authorities on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of SDR 2.242 billion, or roughly US$3 billion.
The economic agenda intends to establish the groundwork for higher and more inclusive growth while restoring macroeconomic stability and debt sustainability.
“The Ghanaian authorities have committed to a wide-ranging economic reform program, which builds on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) and tackles the deep challenges facing the country,” the statement read in part.
“Key reforms aim to ensure the sustainability of public finances while protecting the vulnerable. The fiscal strategy relies on frontloaded measures to increase domestic resource mobilization and streamline expenditure. In addition, the authorities have committed to strengthening social safety nets, including reinforcing the existing targeted cash-transfer program for vulnerable households and improving the coverage and efficiency of social spending,” it added.
“Structural reforms will be introduced to underpin the fiscal strategy and ensure a durable consolidation. These include developing a medium-term plan to generate additional revenue and advancing reforms to bolster tax compliance. This will help create space for growth-enhancing measures and social spending. Efforts will also be made to strengthen public expenditure commitment controls, improve fiscal transparency (including the reporting and monitoring of arrears), improve the management of public enterprises, and tackle structural challenges in the energy and cocoa sectors. The authorities are also committed to further bolstering governance and accountability.
“To support the objective of restoring public debt sustainability, the authorities have announced a comprehensive debt restructuring. Sufficient assurances and progress on this front will be needed before the proposed Fund-supported program can be presented to the IMF Executive Board for approval.
“Reducing inflation, enhancing resilience to external shocks, and improving market confidence are also important program priorities. Accordingly, the Bank of Ghana will continue to strengthen its monetary policy framework and promote exchange rate flexibility to rebuild external buffers. As part of the authorities’ debt strategy, a domestic debt exchange has been launched. The authorities are committed to taking the necessary mitigation measures to ensure financial sector stability is preserved.
“IMF staff held meetings with Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison, and their teams, as well as representatives from various government agencies. The IMF team has also continued to engage with other stakeholders. Staff would like to express their gratitude to the Ghanaian authorities, Parliament’s Finance Committee and all the private sector, trade union, and civil society representatives for their open and constructive engagement over the past few months.”
A meeting between President Nana Addo Dankwa Akufo-Addo and members of the Majority Caucus has been rejected by Central Member of Parliament Kwame Anyimadu-Antwi in response to demands for the resignation of Minister of Finance Ken Ofori-Atta.
Despite claims to the contrary made by the majority leader Osei Kyei-Mensah-Bonsu, the call that started with about 60 MPs and eventually grew to 89 MPs was not the position taken by the Majority Caucus.
Amid threats by the ‘Ken Must Go’ MPs to boycott government business led by the embattled minister, the presidency convened a meeting where concessions were made.
Among others that Ofori-Atta should present the 2023 budget and see through the Appropriation Bill and to also conclude ongoing round of talks with the IMF with government eyeing a staff-level agreement for a programme by end of the year.
After the ‘rebel’ MPs reignited their call for the minister’s dismissal, the NPP national leaders also held a meeting with the Caucus where it was agreed that they will stick to the agreement reached with the president.
The IMF “serves as a very good catalytic organization to kick in a lot of international and bilateral support,” the administration claims.
Additionally, it stated that the government’s policy initiatives to reduce debt to manageable levels include the 2023 budget.
The start of a debt exchange programme to reduce the nation’s high debt levels was announced by the finance minister.
He said: “the alternative would be a far worse economic crisis, with protracted closure from international markets (including imported goods and services) and further domestic economic instability both for the real economy and the financial sector. It would also mean depleted fiscal resources to support the neediest.”
“We expect to reach a Staff-Level Agreement soon on an IMF programme aimed at restoring macroeconomic stability and protecting the most vulnerable. To this end, as a government, we are determined to implement wide-ranging structural and fiscal reforms to restore fiscal and debt sustainability and support growth,” he said.
The Minority in Parliament has indicated that it will not accept government’s proposed debt restructuring programme as announced.
Minority leader, Haruna Iddrisu, relayed the Minority’s position during a press conference held today, Monday, December 5, 2022.
Below is a press statement from the Minority
Good morning, ladies and gentlemen of the press.
We welcome you all to this press encounter, prompted by some very disturbing and urgent developments on the economy. Our economy is indeed in crisis.
As is now trite knowledge, the Ghanaian economy has been terribly mismanaged in the last five to six years by the Akufo-Addo/Bawumia administration leading to our request for a 17th IMF program to renew confidence and policy credibility on our failing economy despite haughty initial denials.
The severely ailing economy has been characterized by unsustainable debt, very high inflation, unprecedented and disastrous depreciation of the cedi, high budget deficits and unprecedented credit rating downgrades.
The economic situation is so bad that we are currently ranked side by side with Sri Lanka, which is considered the worst economy in the world and has defaulted on its debt.
Our public debt hovers above the GHS 500 billion mark with a corresponding debt to GDP ratio of about 105% having inherited a total public debt of GHC120billion in 2017.
Inflation for the month of October is 40.4% and is destined to rise for the month of November. The cedi has lost 54% of its value in the last ten months alone.
The combined effect of these grim macro-economic indices has been devastation and disappointment for Ghanaians and households.
DEBT RESTRUCTURING
The Minister of Finance Hon. Ken Ofori-Atta has just this morning announced “Major Policy” blue prints on government’s debt restructuring on domestic debt restructuring promising to announce for extension for debt restructuring in due course.
To put our unsustainable debt on the right path, we were told categorically by the President of the nation, Nana Addo Danquah Akufo- Addo “THERE WILL NO BE HAIRCUT”, at least we now know there is.
The form and structure of this debt restructuring is unacceptable to the NDC Minority, we simply cannot agree to this as it has dire consequences on the financial sector, on pension funds and on jobs. We are all at risk.
According to Ken Ofori-Atta, Ghana’s DEBT is UNSUSTAINABLE and we cannot SERVICE it FULLY if we do not restructure some GHC 137 billion of our Domestic debt.
Ghana is the first country in Africa to announce domestic debt restructuring or as they put it domestic debt exchange!
We have OFFICIALLY DEFAULTED in the repayment of the terms of our existing Domestic debt.
Ghana joins Greece and Jamaica in the last 10years.
The NDC MINORITY has been consistent on this matter, we cautioned and warned the government about engaging in reckless borrowing and expending it wastefully! How come contours of this exchange program was not announced in Parliament during the 2023 budget presented on 24th November 2022. Will it require legislation? How come that a major policy step of this dimension was not part of his presentation to Parliament?
While we agree that Government is still negotiating the potential and inevitable IMF Program, it is necessary that conclusive Government plans be brought to the House for approval.
This is consistent with the Constitution:
(a) The terms and conditions of an IMF Program support constitute a loan and finance agreement under the Constitution;
(b) As implied, any other debt restructuring exercise constitutes a variation of the terms and conditions of past loans authorized by the House;
(c) All loans to support the Budget and Appropriation Act approved by the House, to finance Projects and Programs; and
(d) The House needs to know the socio-economic impact of any loan and program agreements, to the extent that these are not appropriately and specifically espoused in the economic policy section of the Budget.
It is now obvious that BoG is heavily financing the Budget, in open defiance of existing laws and policy approvals by the House.
I wish to reiterate my call on the Governor to desist from flouting the laws and for him to appear before the House to explain the form and implications of the Central Banks monetary and, not least, its aggressive and defiant fiscal stance.
The government is simply breaking contracts according to the plans revealed by the Finance Minister this morning. This development will deter investors, without first informing and consulting them. The best way to manage a crisis is to anticipate it, to reduce its impact, or at best to prevent it from happening.
We have been thrust into the worst cost of living and cost of doing business crisis in recent memory and horrendous suffering and pain have been the portion of Ghanaians.
And to be clear, the suffering we are all going through is a direct consequence of recklessness and mismanagement on the part of this government and their appetite for excessive borrowing
It was the expectation of many that the crisis we face would elicit the most urgent and far-reaching steps by government to ensure a reversal of our dismal fortunes.
We had hoped that the opportunity of the presentation of the 2023 budget would seized to show real commitment to proposing and implementing economic policies and measures that will mitigate the suffering.
Instead, we have observed with dismay, a shocking lack of urgency and commitment to tackling the crisis.
To begin with, the Budget was completely devoid of any convincing plan to get us out of the economic mess and turmoil.
The same “business as usual” posture that landed us here in the first place is on display. The Budget to offer comfort to anyone that we will be out of the woods in the short to medium term provided no evidence.
In addition to the lack of convincing proposals, we have been utterly shocked at the show of disrespect and disinterest in the Budget process by the very government that presented it.
We have been left dumbfounded as Cabinet Ministers who double as MPs and who form part of the government that has superintended over the greatest economic crisis of our time abandoned the important Budget debate and approval process only to be seen in Qatar making merry and taking selfies during the world cup.
Never in our history has a government exhibited such poor judgement and they have by this singular act placed beyond any doubt, that they have no respect for the people of Ghana, or the mandate bestowed on them to govern.
We are particularly stunned that President Akufo-Addo allowed this to happen.
EXPENDITURE CUTS
We expect major expenditure cuts to achieve fiscal consolidation. The size of Government must be reduced drastically. We demand responsible spending.
We will not accept the outrageous GHC1.4billion allocation as contingency vote contained at page 209 of the 2023 Budget statement. We note that, this allocation is an additional GHC400million compared with last year’s allocation of GHC993million. This cannot be happening in a period of austerity.
We are also opposed to an allocation of GHS10 million for what has been strangely described as Defense Advisory Services. We also strongly denounce plans to increase the staff strength at the Office of Government Machinery by a staggering 1,570 at Page 230 of the 2023 Budget. This will increase total staff strength at the OGM to 3,681. This is unconscionable at a time Government has announced a total freeze in public sector jobs.
If ever there was proof that this government has lost its way and shown itself unworthy of the trust of the people of Ghana, this would be it.
We in the Minority wish to make it very clear, that if we do not see significant improvement in the attitude of the Majority side and sector Ministers do not turn up to lead the Budget process on their sectors, we will withdraw from the Budget process.
We will no longer countenance this embarrassing gross dereliction of duty to the people of Ghana.
On the Budget itself, we note that far from offering hope and assurance of a quick turn-around in our gloomy economic situation, it is packed with measures that will exacerbate the suffering we are already enduring.
We also note that no lesson has been learnt on how reckless and unrestrained expenditure have undermined the Ghanaian economy.
The 2023 Budget continues on the same spending trajectory that has led to our collective economic doom.
Instead of cutting down on non-essential expenditure, we have rather seen an increase with additional spending of up to GHS 82 billion. Some of the envisaged expenditure items are entirely wasteful and needless.
NATIONAL CATHEDRAL 80 MILLION GHANA CEDIS
Despite huge public outcry and in defiance of prudence, another GHS 80 million has been earmarked for the National Cathedral, which does not constitute a spending priority at this time.
This will bring the total amount spent on the project to about GHS 420 million, the total amount of tax payer funds so far spent. The estimated total cost of the project is around 400million dollars. Is this project a national priority?
For a government that is unable to print textbooks for basic school pupils several years after introducing new curricular unable to pay NABCO arrears and that is indebted to contractors and suppliers to the tune of over GHS 40 billion, this is most imprudent and unacceptable.
2.5 % INCREASE IN VAT
Whilst whittling away the little we have as a country in this intransigent manner, the Akufo-Addo/Bawumia government has decided to pile more hardships on the people of Ghana through the introduction of more taxes in the 2023 Budget presented to Parliament.
The most punitive among these taxes is the addition of 2.5% to the VAT rate bringing it to a cumulative 21.5% (made up of 2.5% GETFund, 2.5% National Health Insurance, 1% Covid Levy and 15% VAT all levied under the terms of Value Added Act, Act 870) the highest in Africa. What moral right does President Akufo-Addo have to increase VAT by 2.5% when he led the “KUMI PREKO” demonstration in 1995 resulting in the loss of five lives.
As sure as night follows day, this will worsen the hardship faced by Ghanaians, as the prices of almost all items will increase instantaneously once this tax comes into effect.
In addition to the increase in VAT, we have detected twenty-two additional tax and revenue measures that will make life even more difficult and unbearable for every Ghanaian.
As Social Democrats, we of the NDC stock have never been against taxation per se, but we are simply unable to agree with the steep increase and timing of the introduction of these tax measures.
At a time when people are facing the worst economic crisis and hardships in their lifetime, the last thing that is desired is further taxation.
The high rate of inflation has already eroded the disposable incomes of Ghanaians and we can no longer bear to give more to a government that is determined to waste our resources on extravagant living
E-LEVY
Our position on E-levy remains unchanged. It is a setback to this cashless economy. We are also astonished to learn in the Budget that the GHS 100 threshold for e-levy deductions has been abolished. How come that the threshold is being abolished. How do we protect the vulnerable poor? At least a 300gh threshold with a reduction in the principal from 1.7 to 1%. You recall my suggestion of a 1% levy at a threshold of 500, which was out-rightly rejected by Government at the negotiations. This was part of the discussion when we rejected “AGYAPA”.
UNPRECEDENTED INFLATION AND DEPRECIATION OF THE CEDI
Again, inflation, which has ballooned from 13% in January to over 40% in October, has diminished the value of GHS 100 and therefore the exemption threshold for e-levy should be increased to GHS 200 and not removed.
This a clear example of insensitivity on the part of the Akufo-Addo/Bawumia government.
We in the NDC have already stated our intention to abolish the e-levy when we come back to power but before then, we wish to serve notice that we will fiercely resist the removal of the GHS 100 threshold.
Inflation has also wreaked havoc on personal income taxpayers and therefore removes any justification for the introduction of the additional band of 35% as announced in the 2023 budget.
Ladies and gentlemen of the press,
Yesterday, Finance Minister, Ken Ofori Atta announced the commencement of a debt-restructuring program, which he cynically dubbed a “debt exchange program”.
The debt-restructuring program launched today, Monday, 5th December 2022 has the following details:
For Domestic Bond holders, there will be a drastic slash in the agreed interests on their existing bonds which have been replaced by four new instruments maturing in 2027,2029,2032 and 2037 as follows,
In 2023, there will be 0% interest paid them on their bonds
In 2024, only 5% interest will be paid
In 2025, 10% interest will be paid until maturity.
This means that for those who have invested their lifetime savings in government bonds and depend on the interests for their livelihood and regular upkeep, you will suffer a drastic reduction in the rate of interest, which will significantly diminish your source of livelihoods.
A few weeks ago, after coming under a barrage of public criticism for failing to show leadership and failing to address the nation in the wake of the harrowing hardships and economic crisis. President Akufo-Addo took to the airwaves and categorically denied every credible information we in the Minority caucus in Parliament, had put out about an impending drastic debt restructuring and very painful haircut for investors in government bonds and other creditors.
The President stated clearly that there would be “NO HAIRCUT”.
The measures referred to above show steep cuts in interest rates and this clearly exposes the falsehood and hollowness of the President’s claims in the said address.
Beyond a terse claim that principals of domestic bondholders would not suffer haircuts, the finance minister failed to provide details of what would happen to the principals.
We have become aware of the emergence of details of a briefing given by the Finance Minister and officials of the Finance Ministry to stakeholders in the Banking Sector.
It was clearly disclosed at the briefing that bondholders who look forward to having their principals paid upon the maturity of their bonds, are also in for a very rough ride as the Akufo-Addo/Bawumia government has decided not to pay in full when the bonds reach maturity.
The principal payments are to be done according to the under listed formula.
In 2027, which is five years from now, only 17% of the principal will be paid.
In 2029, seven years from now, only 17% will be paid
In 2032, ten years from now, 25% will be paid and
In 2037, fifteen years from now, 41% will be paid.
This arrangement is set to derail and disrupt the plans of bondholders who have planned their lives and expenditure around the expected timely and full payment of their principals in consonance with the terms of purchase of the original bonds.
It will no doubt lead to hardships for bondholders, not to mention the breach of the original instruments.
Though the Finance Minister stated that details of treatment of external bonds are yet to be disclosed, it is the worst kept secret in Ghana that in the case of external bondholders, the Akufo-Addo/Bawumia government has decided to cut a staggering 30% off both the interest and principal.
In addition, external bondholders will have the maturity dates of their bonds extended by twenty whole years.
We need to stress that this crude haircut will not only affect foreigners or non-Ghanaians as erroneously believed because there is a significant number of Ghanaians who hold external bonds through various Ghanaian financial institutions who made these investments on their behalf.
These harsh cuts in the interests and principals of bondholders stem from a self-inflicted economic disaster.
Incontrovertible information reaching us indicates that this decision has been reached after a Debt Sustainability Analysis (DSA) carried out under the aegis of the IMF and World Bank showed that we in the Minority have always been right that our public debt is no longer sustainable.
We can also state with absolute certainty, that after years of denial and falsification of our debt numbers through the exclusion of debts owed by SoES, contingent liabilities, and debts on the books of dodgy Special Purpose Vehicles, the Akufo-Addo government has finally capitulated and accepted the reality that we owe far more than they have been admitting.
Contrary to the Finance Minister’s claim in the 2023 budget presented barely a week ago, that our debt to GDP ratio was 76%, government has now admitted that it is actually an unthinkable 105%.
This puts our actual public debt well above GHS 500 billion.
With such astronomical debt and how unsustainable it has become, Government is compelled as a precondition to securing an IMF program to reduce the debt and bring the debt to GDP ratio to 55% over a five-year period.
In the circumstance, the Akufo-Addo/Bawumia government has decided to implement these cut-throat debt restructuring measures that will see it failing to pay government bond holders and creditors up to as much as GHS 200 billion.
These haircuts are a complete disaster for those affected and represents an economic atrocity on an unparalleled scale against the people of Ghana.
All this was very avoidable had the Akufo-Addo/Bawumia government not been so hopeless, incompetent, arrogant and intransigent.
They had absolutely no business collapsing our economy and inflicting such a calamity on our people given all the resources and goodwill placed at their disposal.
We are appalled that this government believes that only the people of Ghana, who had no hand in the criminal mismanagement of the economy that has brought us to this sad juncture, should bear the pain of the supposed corrective measures.
We observe that there is no corresponding level of sacrifice on the part of the incompetent bunch whose puerile mismanagement has resulted in this national tragedy.
They continue to be arrogant and unrepentant and are unwilling to accept responsibility for mismanaging the economy.
Even as it is abundantly clear that the managers of the economy like Alhaji Bawumia, Ken Ofori-Atta and the entire membership of the Economic Management Team have lost credibility, proven to be incompetent and cannot be relied upon to salvage the situation, they continue to cling on and are taking more damaging decisions that continue to bring suffering to our people.
President Akufo-Addo is also refusing to show leadership by outlining more credible and deeper cost cutting measures that will signal a departure from the old ways.
He has refused to reduce the size of what has become the largest and most inefficient government in our history.
Government is required to bring both the budget estimates and debt-restructuring plan to parliament for approval.
We wish at this juncture, to state emphatically, that we in the NDC Minority Caucus in Parliament will vigorously oppose and refuse to entertain both the budget estimates and any bill on debt restructuring until the follow conditions are met.
The resignation of the entire Economic Management Team and in particular Alhaji Bawumia from his position as Chair of that obviously moribund body.
The immediate resignation or dismissal of the Finance Minister, Ken Ofori-Atta
Immediate reduction in the number of Ministers and political appointees at the Office of the President by half.
Removal of all non-essential expenditure in the 2023 budget including the GHS 80 million allocated to the National Cathedral
Reinstatement of the GHS 100 exemption threshold for e-levy payment
We are aware that the Akufo-Addo/Bawumia government have become desperate and is compelled after reckless mismanagement of the economy to achieve fiscal consolidation.
Fiscal consolidation also involves deep expenditure cuts and prudence in the use of scarce resources.
The people of Ghana alone cannot be called upon to withstand the worst of the economic mismanagement and attendant hardships while those responsible for the crisis continue as if nothing happened or they did nothing.
We wish to assure the good people of Ghana that we will continue to fight to preserve their interests and prevent the hopeless Akufo-Addo/Bawumia government from doing more damage to the economy and bringing more pain and hardships upon us.
Government has said it is setting up a financial stability fund with the help of development partners to provide liquidity support to banks, pension funds, insurance companies, fund managers, and collective investment schemes to ensure that they are able to meet their obligations to their clients.
As part of the debt restructuring, Finance Minister, Ofori-Atta at a press conference over the weekend said “domestic bondholders will be asked to exchange their instruments for new ones”.
Also, “existing domestic bonds, as of December 1, 2022, will be exchanged for four new bonds maturing in 2027, 2029, 2032 and 2037”.
“The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity”, he announced Sunday evening December 4, 2022.
Coupon payments will be semi-annual, he said.
He noted that the government’s commitment to Ghanaians and the investor community, in line with negotiations with the IMF, is to restore macroeconomic stability in the shortest possible time and enable investors to realise the benefits of this debt exchange.
Government has allocated an amount of GH1.4 billion to the Contingency Vote in its 2023 budget statement and economic policy.
Per information from Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, the allocation to the Contingency Vote has increased by over GH400 million from GH993 million in 2022.
According to him, the allocation made at a time when the government has appealed to Ghana to burden share in an economy in crisis is “mind-boggling.”
“Significant and logical questions that arise are: why this astronomical increase in the Contingency Vote when putting priority concerns aside, a separate and legal allocation of GHS80million has this time been made for the Cathedral?
Should that not have led to substantial decreases in the Contingency allocation? What new scheme of create, loot and squander is brewing for which a record breaking GHS1.4billion Contingency is required?” the MP asked in a Facebook post.
Finance Minister, Ken Ofori-Atta informed the ad hoc committee instituted by Speaker Alban Bagbin to probe into a censure motion against him revealed that an amount of GHS339,003,064.86 was taken from the Contingency Vote to facilitate the construction of the National Cathedral project.
For Mr Ablakwa, it is unacceptable how money allocated to the Contingency Vote has skyrocketed since 2021.
Per the 2021 budget statement, an amount of GH186.2 million was allocated to the Contingency Vote.
Mr Ablakwa added that it is unacceptable that the recent allocation to the Contingency Vote significantly exceeds the budget allocation made to Parliament, Judiciary and a number of ministries.
“Let’s put the current GHS1.4billion in proper perspective — the amount is more than twice the entire 2023 allocation to Parliament which is some GHS645.8million; the scandalous Contingency Vote provision is also three times higher than the entire 2023 allocation to the Judiciary (including judicial service) which is GHS437.3million; the outrageous GHS1.4billion is also far higher than allocations to several ministries including National Security, Attorney General, Works and Housing, Communications, Railway Development, Chieftaincy, Employment, Transport, Fisheries, Lands and Natural Resources, Trade and Industry, Tourism, Environment, Energy, Foreign Affairs, Information and Parliamentary Affairs.”
Again, he was against the idea that the “insensitive” GHS1.4 billion Contingency Vote allocation “is higher than 14 out of Government’s 16 Flagship Initiatives.”
The monies allocated for government’s 16 flagship initiatives include; Roads Infrastructure (GH2,639,473,980), Free Senior High School Programme (GH2,957,502,092), Water and Sanitation Initiative (GH74,484,764), School Feeding Programme (GH969,000,000).
The others are; Planting for Food and Jobs (GH660,562,919), Railways Development (GH164,579,149), Infrastructure for Poverty Eradication Programme (GH526,573,888), Livelihood Empowerment Against Poverty (GH395,070,000).
The remaining initiatives are Nursing Trainee Allowances (GH265,200,000), Teacher Trainee Allowances (GH241,913,000), One District One Factory Programme (GH200,417,720), Regional Reorganisation and Development (GH38,800,000), National Identification Authority (GH37,600,000), Fish Landing Sites (GH26,304,000), Zongo Development Fund (GH24,409,600) and Micro Finance and Small Loans Centre (GH14,400,000).
The total cost for the initiatives is GH9,236,291,111.
The allocation made to the Contingency Vote, according to Mr Ablakwa, indicates that the government is not sincere about cutting their expenditure.
“They ought to be dealing with this Contingency Monster and not trivials such as hampers, diaries and workshops,” he suggested.
Government has directed public sector workers, Municipal Metropolitans and District Assemblies (MMDAs) not to give out hampers to their stakeholders this Christmas as part of efforts to cut down its expenditure.
“It beats my imagination that government has GHS1.4billion to spend in just one year as contingency, and yet refuses to use that money to employ the youth in critical sectors such as Education, Health and The Interior even as millions of jobless Ghanaians languish at home, particularly as unemployment has now reached an all-time high according to latest population census figures,” Mr Ablakwa further lamented.
The MP is of the assertion that “government is escalating on a grander scale instead of departing from its gross economic mismanagement and insatiable appetite for reckless expenditure which has created the current economic crisis, debt overhang, and the resultant painful and crude haircuts.”
Mr Ablakwa has therefore pledged that the Minority will resist the approval of the allocation to the Contingency Vote.
“This sleazy, sordid, shady, selfish and scandalous GHS1.4billion Contingency Vote allocation will only worsen ongoing labour agitations for better working conditions and lead to widespread justifiable refusal by the suffering Ghanaian people to burden share with a regime that is unhinged and irredeemable,” he concluded.
But reacting to that particular tweet, Economist and Political Risk Analyst, Dr. Theo Acheampong, explained that the view of Gabby and the Minister was misleading.
Quoting Gabby’s tweet that read: “There will be no haircut on the principal of your domestic bonds,” Mr. Acheampong clarified: “That’s NOT TRUE, boss.
“The Fin Min said treasury bills are protected (full redemption) but other local debt instruments (e.g. fixed dep., bank debt holdings) are to to be exchanged for 4 instruments with different maturity dates & coupon payments. So there are implicit haircuts!”
The other two key points in Ofori-Atta’s announcement relative to domestic bonds were: “Treasury Bills are completely exempted and all holders will be paid the full value of their investments on maturity,” and “Individual holders of bonds will not be affected.”
What Ofori-Atta said:
The Minister of Finance announced a number of measures under government’s Domestic Debt Exchange (DDE) programme late Sunday.
He stated in a 4-minute address that the announcement was in line with government’s Debt Sustainability Analysis as contained in the 2023 budget he presented to Parliament on November 24.
The Minister laid out among others the exchange of existing domestic bonds with four new ones as well as their maturity dates and terms of coupon payments.
He also addressed the overarching goal of the government relative to its engagements with the International Monetary Fund as well as measures to minimize impact of domestic bond exchange on different stakeholders.
“The Government of Ghana has been working hard to minimize the impact of the domestic debt exchange on investors holding government bonds, particularly small investors, individuals, and other vulnerable groups,” he said before outlining three main measures:
• Treasury Bills are completely exempted and all holders will be paid the full value of their investments on maturity.
• There will be NO haircut on the principal of bonds.
• Individual holders of bonds will not be affected.
Mr Haruna Iddrisu, Minority Leader, says the group will resist the approval of budget estimates for ministers who fail to move the motion of the ongoing debate of the 2023 Budget Statement and Economic Policy of their respective ministries in the House.
He expressed concern about how ministers of the various ministries were not taking the business of the House seriously.
“Mr Speaker, going forward, we will resist the approval of any estimates coming from ministers who absent themselves from such exercises,” he said.
Mr Iddirsu said this on the floor of Parliament on Thursday.
Parliament is expected to conclude a debate on the 2023 Budget Statement and Economic Policy presented by Mr Ken Ofori-Atta, Finance Minister, Tuesday, December 6, 2022.
The House is thus expected to subsequently approve the Appropriation Bill.
Mr Iddrisu, the Member of Parliament for Tamale South on the ticket of the National Democratic Congress, further cautioned sector ministers to avail themselves to the House for the approval of their budgets.
“When we get to the approval of budget estimates and ministers don’t appear in person in Parliament by themselves, we will not support the approval of the budget allocations to those ministries.
“Ministers must take this House very seriously, and only ministers so appointed by the President to oversee the sectors of those ministries must rise from their seats to move motions to ask for budget allocations and approval by this House. Failure to do so will mean that we will stump down a number of those motions,” Mr Iddrisu said.
He noted that Parliament and the minority would hold the government accountable, adding that “we intend to strengthen oversight, and it begins with this our decision. If ministers don’t appear in person to move motions for budget allocations, then they should expect the fiercest resistance from this side of the House.”
Since the debate on the 2023 Budget Statement and Economic Policy began on Tuesday, November 29, the MPs on the Majority side have silently protested without showing up to contribute to the debate compared to the Minority side of the House.
The group had also called for the timely debate of the censure motion against Mr Ofori-Atta since it was not captured in the Business Statement for the following week.
“On the motion of censure against the Finance Minister, the words in Article 82 do not give Parliament perpetuity to discuss the matter, we are within defined time limits to consider the motion and take decisions as appropriate so whatever committee has been set up, we need to bring closure to it,” he said.
The TUC thinks the ruling is unjust because the government vowed not to do it.
In his presentation of the 2023 budget statement on Thursday, Finance Minister Ken Ofori-Atta highlighted the government’s decision as one of several steps to rein in the spiraling public spending.
“I am really disappointed about the freeze of employment in the civil and public services in 2023, because this is something that the TUC has spoken about it all this while. When the IMF team came to this country, we had the opportunity to meet with them and one of the issues we raised with them is about the freeze of employment that always becomes their conditionality anytime they access their programme, we were assured that that was not going to happen,” he stated.
Mr. Ansah noted that the TUC will discuss this issue with its Social Welfare Committee and respond appropriately.
Meanwhile, government has introduced a number of measures to cut its expenditure for the year 2023.
Below is the full text of implementation of the Cabinet directives on expenditure measures
Mr Speaker, as a first step toward expenditure rationalisation, Government has approved the following directives which take effect from January 2023:
• All MDAs, MMDAs and SOEs are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit systems, and fuel depots. Accordingly, 50% of the previous year’s (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOES;
• A ban on the use of V8s/V6s or its equivalent except for cross-country travel. All government vehicles would be registered with GV green number plates from January 2023;
• Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, the purchase of new vehicles shall be restricted to locally assembled vehicles;
• Only essential official foreign travel across government including SOEs shall be allowed. No official foreign travel shall be allowed for board members.
Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;
• As far as possible, meetings and workshops should be done within the official environment or government facilities;
• Government-sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year;
• Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;
• A freeze on new tax waivers for foreign companies and review of tax exemptions for the free zone, mining, oil and gas companies;
• A hiring freeze for civil and public servants
• No new government agencies shall be established in 2023;
• There shall be no hampers for 2022;
• There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024;
• All non-critical projects must be suspended for the 2023 Financial year.
Public sector workers, Municipal Metropolitans and District Assemblies (MMDAs) have been asked not to give out hampers to their stakeholders this Christmas.
Finance Minister, Ken Ofori-Atta announced this decision on Thursday while presenting the 2023 Budget in Parliament.
The decision forms part of the government’s measures to rationalise its expenditures in the wake of the prevailing economic hardship.
“There shall be no hampers for 2022,” the Minister stated.
Mr. Ofori-Atta further announced the ban on the printing of diaries, notepads and calendars by MMDAs and SOEs from 2024.
“There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024,” he added.
“All non-critical projects must be suspended for the 2023 financial year.”
The Minister said the move is geared towards expenditure rationalisation, in the wake of the economic woes.
In addition to the reduction in expenditure, MDAs, MMDAs and SOEs have been directed to reduce fuel allocations by 50% to government appointees.
“All MDAs, MMDAs and SOEs are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit systems, and fuel depots. Accordingly, 50% of the previous year’s (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs, and SOEs,” he directed.
Broadcaster Bridget Otoo has bemoaned the move by the government to remove the daily limits to electronic money transfers that will attract the Electronic Transfer Levy (E-Levy).
The Minister for Finance, Ken Ofori-Atta, has announced a proposal to review the Electronic Transfer Levy (E-Levy) from its current rate of 1.5 per cent to 1.0 percent.
In addition to the reduction of the rate, Ofori-Atta also proposed the removal of limits on transfers that will attract the levy.
“Review the E-Levy Act and more specifically, reduce the headline rate from 1.5% to one percent (1%) of the transaction value as well as the removal of the daily threshold,” he said.
Reacting to this in a series of tweets on Thursday, November 24, Bright Otto said that the government, after promising that the poor would not be affected by the levy, now wants to charge all transactions.
She berated persons who supported the government’s implementation of the level when questions were raised about how it would affect the poor.
“All the town hall meetings about e-levy protecting the poor were just a waste of public funds to feed lies to an already impoverished people.
“When we called gov’t out on its 100 cedi threshold lies, fool soldiers were up on their key boards defending. Here we are!
“So, the footsoldiers I hope you heard him? E levy was already being charged on 5 cedis. Now 1 pesewa sef, it would be charged,” parts of her tweet read.
This information was announced by Finance Minister, Ken Ofori-Atta, when he presented the 2022 budget statement in Parliament on Thursday.
Prior to increase, VAT – standard rate was at the rate of 12.5%, National Health Insurance Levy (NHIL), 2.50%, Ghana Education Trust Fund (GFL), 2.50%, 1% COVID-19 Levy, 1%, (VAT) on NHIL and GFL and 1% COVID-19 Levy was 0.75%.
From 19.25%, VAT will now hit 21.75%.
“Mr. Speaker, the demand for roads has become the cry of many communities in the country. Unfortunately, with the current economic difficulties and the absence of dedicated source of funding for road construction, it is difficult to meet these demands. In that regard we are proposing the implementation of new revenue measures,” he said.
According to him, the increase in VAT is expected to yield GHc2.70 billion which will be used to augment funding for the road infrastructure development.
“This will be complemented by a major compliance programme to ensure that we derive the maximum yields from existing revenue handles,” he added.
The investigative journalist who is the founder of Tiger Eye P.I is urging CHRAJ to look into allegations that the private companies of Finance Minister, Ken Ofori-Atta and former Minister of State at the Finance Ministry, Charles Adu Boahen, benefitted from loans and bonds entered into by Ghana.
Earlier, Mr. Ken Ofori-Atta had been accused of employing the services of a company he co-founded, Data Bank Financial Services – as advisors for some of Ghana’s international loan transactions.
While Black Star Brokerage, a company belonging to Charles Adu Boahen has also been accused of benefitting from transactions on government bond issuance.
Both companies have allegedly been acting as financial advisors and Bond Market Specialists to the Ministry of Finance.
Confirming the development to JoyNews, CHRAJ Commissioner, Joseph Whittalsaid the Commission has received an official complaint from the Tiger Eye PI team and is assessing the materials presented to it.
“The allegations are that there is conflict of interest in terms of their official duties as public officers and the companies in which they have interest in terms of government bonds and so the case is going through the standard process of assessment in order to make sure that it meets procedural requirement under the Commission’s regulation as well as whether it is really within the mandate of the Commission. Based on that, we will then decide what next steps to take,” Mr. Whittal said.
Meanwhile, the Office of the Special Prosecutor has also commenced investigations into the same corruption allegations levelled against Charles Adu Boahen in an exposé after President Akufo-Addo’s referral of the matter to the Office.
Background
The Member of Parliament for Bolgatanga Central, Isaac Adongo in 2018 accused Ken Ofori-Atta of conflict of interest following the appointment of Databank Financial Services as transaction advisors to the Ministry and the Bank of Ghana (BoG) in the issuance of government bonds.
The MP in a letter titled: ‘Databank must be withdrawn as TA to Ministry of Finance,’ said industry watchers and well-meaning Ghanaians needed to be “concerned” about the development, “especially given the things that unfolded at the Ministry of Finance with regard to public bond issuance since the assumption into office of Mr Ofori-Atta.
“It lends credence to growing disquiet in the financial sector that family and friends are having a better part of government-related businesses, not track record, competence and clout,” he stated.
According to him, Barclays Bank, Ghana, Standard Chartered Bank, Ghana and Strategic African Securities (SAS) used to be the book runners for the BoG. However, he said Databank was replaced with SAS given the relationship between the Finance Minister and Databank.
“It is disgusting to note that Databank, which is the baby of the current Finance Minister, is now a book runner at the Bank of Ghana (BoG). It is instructive to note that the presence of Databank in the Transactions Advisor team puts the Minister of Finance in a potential conflict of interest situation,” he mentioned.
Mr. Charles Adu Boahen while appearing before the Parliament’s Appointment Committee in 2021, said he was no longer involved in the running of Black Star Brokerage, which he owns. Mr Adu-Boahen said he had resigned from the company in 2017 and had since not engaged in any of its activities.
“As I mentioned earlier, I resigned from the board and the management of Black Star Brokerage in 2017. I have no role and do not participate in its business dealings,” he stated.
Meanwhile, the Ministry of Finance dismissed such claims that Databank and Black Star Brokerage were handpicked by the Finance Ministry and the Bank of Ghana to act as Bond Market Specialists for government bond issuance, hence benefiting from those transactions.
In a statement, the Ministry said, it is incorrect the claim that these two firms have been appointed as advisors to the Ministry of Finance (MoF).
“The selection of the Primary Dealers [PDs] and Bond Market Specialists [BMSs] is an automatic process based on market performance and historical secondary market trading activity which is publicly available and cannot be manipulated by the Ministry of Finance [MoF] or the Bank of Ghana [BoG]”.
“Since 1996, the Ministry of Finance with the Bank of Ghana has developed and implemented various policies which affect the issuance and trading of Government of Ghana debt securities (Treasuries and Bonds). The ultimate objectives of these policies are to develop an efficient fixed income market, strengthen the capacity of local institutions and deepen financial intermediation”, it added.
Furthermore, it pointed out that Databank and Black Star Brokerage are two out of nine firms that have been selected by BoG/MoF as Bond Market Specialists and not Advisors to MoF.
The Majority in Parliament has rescinded its decision to be absent from the Chamber when Finance Minister, Ken Ofori-Atta, presents the 2023 budget and economic statement.
Mr Ofori-Atta is scheduled to present the 2023 budget tomorrow, November 24.
The Majority’s earlier position was that Mr Ofori-Atta could no longer be the face that represents the economy, thus should be replaced.
As part of measures to ensure the president accepts their request, some 98 NPP MPs threatened to boycott the budget reading.
Their actions prompted an intervention by the ruling New Patriotic Party. The leadership of the NPP on November 22 engaged the Caucus to find an amicable resolution to the impasse.
According to an NPP communique signed by the Majority Chief Whip, Frank Annoh-Dompreh, and the NPP General Secretary, Justin Kodua Frimpong, “the Leadership of the Parliamentary group and the Leadership of the Party counseled the Honourable Members of the Parliamentary Party to resort to the Caucus communications channels and, to the largest extent possible, work together as one Caucus unit,”
The statement also stated that the Party has resolved that the President will act on the earlier demands of the MPs after the 2023 budget has been read and appropriated.
The leadership of the Caucus has therefore entreated its members to attend to all government business in the house, particularly, the 2023 Budget Statement and Economic Policy and all related matters.
He thought Databank was among the top contenders for federal contracts.
And before Ken Ofori-Atta was appointed finance minister, Databank was already conducting business with the government, he said.
“And as far as I’m aware, Databank has never received anything on a silver platter.
Asaasenews.com quotes him as saying, “Databank has always had to compete with any other organization to be a part of what the Ministry of Finance does.
“Ministry of Finance has for a few years now, had the policy to encourage local participation, and to do this we always tendered when there were projects available, and we evaluated and picked the best responses, and Databank happened to be one of those companies that we picked.
“And this is not only during this Finance Minister’s tenure but, this was before this minister’s tenure,” Ghanney clarified.
Andy Kwame Appiah-Kubi, a spokesperson for Members of Parliament on the Majority Caucus who are demanding the dismissal of Finance Minister, Ken Ofori-Atta, insists they will not participate in the 2023 Budget hearing and passage if Mr. Ofori-Atta is not kicked out.
Mr. Appiah-Kubi, the Member of Parliament for the Asante-Akim North constituency, does not think Ken Ofori-Atta is as indispensable as he is being portrayed to be.
“If he is not there, can’t others present the budget? No one is indispensable. We have completely lost confidence in him because, in the 2022 Budget, he [Ofori-Atta] promised that with an E-levy and Property Rate, there will be no need to go to the IMF for support… As we speak now, that has not happened, and the property rate is even yet to take off.”
“We are not convinced that it should be Ken Ofori-Atta and nobody else. It is our political decision that Mr. Ofori-Atta must go for the collective interest of the NPP,” he added.
Mr. Appiah-Kubi reiterated that his group still stands by the position that the vote of censure being spearheaded by the Minority side would not yield any results since, after that move, they will still need to appeal to the President to remove him.
He maintains that the majority MPs are not demanding Ofori-Atta’s removal on grounds of economic mismanagement, but because Ghanaians have lost confidence in him.
Mr. Ken Ofori-Atta is expected to present the 2023 Budget Statement of government to Parliament on Thursday, November 24, 2022.
A Ranking Member on the Finance Committee of Parliament has opposed calls for the Finance Minister, Ken Ofori-Atta to resign as a result of the prevailing economic woes.
Speaking in an interview on JoyNews’ Newsfile on Saturday, Dr Stephen Amoah said the Finance Minister cannot be blamed for the economic hardship being experienced by Ghanaians.
“…This whole brouhaha as a matter of fact was based on the fact that our economy is not doing well and that it is his [Ofori-Atta’s] fault …. But is that a fact or not? In my opinion, that is not true. The fact that he is the cause of our economic decline, I don’t think that is true,” he said in Mr Ofori Atta’s defense.
The Nhyieso MP added that “to the best of my knowledge GDP had grown from about 3.2, 3.4 averagely to about 7%. The policy rate was about 25.5 it had reduced to about 12.5, Treasury bills were about 22 point something, it has been reduced in about the same period to about 14. Reserve has been increased to about 5.8 to about 7.4. All these were happening. Globally, did anything happen or not? Factually, globally, something happened.”
For this reason, Dr Stephen Amoah said asking the Finance Minister to resign due to economic hardship alone is unfair.
“Were we asking the Finance Minister to step down based on the economic performance today or not? …I am saying that if it is the economy alone, then that will be very unfair,” he stressed.
His assertion was in reaction to several calls from the public for the Finance Minister to resign because of economic hardships.
In a related development, the Minority in Parliament has filed a censure motion to that effect. They cited seven claims.
The claims are; conflict of interest, unconstitutional withdrawals from the Consolidated Fund, illegal payment of oil revenues into offshore accounts, deliberate and dishonest misreporting of economic data to Parliament, fiscal recklessness, alarming incompetence and gross mismanagement of the Ghanaian economy.
Meanwhile, Finance Minister, Ken Ofori-Atta, has apologised to Ghanaians for the hardship being suffered in recent times.
According to him, the brunt borne by the populace due to the ongoing economic turmoil is unfortunate.
He said this when he appeared before the Ad-hoc Committee hearing the motion of censure against him.
“Let me use this opportunity to say to the Ghanaian people what I believe, with courage, every Finance Minister around the world may wish to say to their people now. I am truly sorry,” he told the Committee on Friday.
The Chairman of the opposition National Democratic Congress (NDC), Samuel Ofosu Ampofo, says elements within his own party are behind his leaked audio tape, based on which he is currently standing trial.
Speaking in a yet-to-air exclusive interview on Adom TV, the embattled Chairman told host, Daakyehene Nana Yaw Asante, that the leaked audio is an evidence of how cruel the NDC can be when they want to destroy one of their own.
Substantiating his claims, he said the in-house traitors secretly recorded his comments in a closed door meeting and leaked the recording to the New Patriotic Party for him to be prosecuted.
According to him, he has been to court on seventy separate occasions as a result of the internally orchestrated treachery.
“When NDC wants to disgrace you, they first tag you as anti-Mahama. My own party folks recorded me at a meeting that I held with the party, with the people and went to sell the recording to the NPP, for which reason I’m standing trial. I’ve been to court 70 times”, he stated in a trailer to the yet to air interview.
In addition to tagging an individual as anti-Mahama, he said some elements within the party can travel all length to cause disaffection for someone they do not like.
The interview will be aired on Saturday, November 19 at 10:00pm on Adom TV’s weekend current affairs programme, Sɛdea Ɛteɛ Nie.
Meanwhile, ahead of the airing of the interview, some supporters of the NDC have expressed disgust over the comments of the party’s National Chairman.
According to his critics, his sentiments are unnecessary, as they will wreak more havoc for himself and the party at large.
Others have however sympathized with him, and expressed solidarity with the alleged treachery he was subjected to.
In their view, the revelations by the NDC Chairman is understandably from a place of pain, and therefore he should not be chastised.
Currently, Mr. Ofosu Ampofo’s role as the NDC’s National Chairman is also being threatened by the decision of the party’s General Secretary, Johnson Asiedu Nketia to unseat him.
In what has been described as the main contest in the party’s upcoming national delegates election, Mr. Asiedu Nketia is frantically taking steps to take control of the party as National Chairman ahead of the 2024 general election.
Touching on this development, Mr. Ofosu-Ampofo stated in the yet-to-air interview that, the move by Asiedu Nketia to unseat him is politically inexpedient.
According to him, notable personalities within the party, including the party’s Council of Elders and the NDC’s 2020 flagbearer, John Dramani Mahama, all made efforts to prevent the contest, but to no avail.
The upcoming national delegates conference will however take place on 10th December, 2022, in the Ashanti Regional capital of Kumasi.
Eligible party delegates will elect a new crop of executives to man the affairs of the party at the national level for the next four years.
Ghana’s total debt stock has shot up to GH¢450 billion in 2022 from a total of GH¢120 billion in 2017, Finance Minister Ken Ofori-Atta has revealed.
The current debt stock means Ghana has borrowed over GH¢300 billion since the Akufo-Addo-Bawumia-led government assumed power in January 2017.
Appearing before the ad-hoc committee probing the grounds of censure filed by the Minority in Parliament, Mr Ofori-Atta said despite the astronomical increase in Ghana’s debt stock, the focus should be on what the loans have been used for and its benefits to the nation.
Mr Ofori-Atta stated that the GH¢330 billion loan has been invested in One-District-One Factory, education, interchanges, Planting for Food and Jobs and other sectors that he claims have benefitted the state.
The Finance Minister also dismissed suggestions that he has mismanaged the country’s finances.
“Fiscal recklessness leading to the crash of the Ghana cedi which is currently the worst performing currency in the world” was one of seven grounds put forward by the Minority to demand the removal of Mr. Ofori-Atta.
He added that on the contrary, the government’s “strenuous efforts to protect the public purse is what has helped”.
He argued that he has as required of him always presented government revenue and expenditure propositions to Parliament, who have in turn raised no concerns.
The ad-hoc committee tasked by the Speaker of Parliament to probe the censure motion filed against the Finance Minister, Ken Ofori-Atta, is requesting for more time to file its report.
The request was announced by a co-chairman of the committee, Dominic Ayine after the committee, concluded its proceedings on Friday, November 18, 2022, after hours of grilling the Finance Minister.
“Today is the last day that was given to us by Mr. Speaker, hopefully we will apply to the Speaker for extension of time to be able to file our report next week, and the purpose of the report is to simply continue the debate on the motion for the vote of censure. And the report will be laid in Parliament hopefully next week Tuesday,” he concluded in his remarks.
KT Hammond, another co-chair, announced that the committee would have to present a draft copy of the report to the Finance Minister to ensure that his responses are properly captured before the full report is tabled before Parliament for debate.
Seven allegations have been levelled against the Finance Minister by the Minority in Parliament, calling for his removal from office.
The Minister is accused of conflict of interest, gross mismanagement, recklessness of the economy among others.
The committee was given seven days by the Speaker to probe the censure of motion, which ended today.
The Committee was set up by the Speaker of Parliament Alban Bagbin, chaired by Dominic Ayine and K.T Hammond.
The fate of the Finance Minister will be known after the committee had presented its report to the Speaker, as to whether the censure of vote will go in his favour or otherwise.
Finance Minister Ken Ofori-Atta has clarified that he has at all times provided Parliament accurate information pertaining to the state of the economy.
The Ministry in Parliament who argue otherwise have accused Mr Ofori-Atta of misreporting economic data to the House.
Appearing before the eight-member committee tasked to probe into the censure motion against him, the Finance Minister described such comments as “unfortunate” and “false”.
“The Ministry of Finance has never misreported data to Parliament,” he said.
The Minority say that information on Ghana’s deficit are contradictory, but the sector minister says this is not so.
Mr Ofori-Atta also revealed that the government has provided accurate data to the International Monetary Fund (IMF) so far in their engagements.
Asaase radio, a pro-NPP media outlet, said in a report that Anas’ agents met with the Finance Minister in Dubai. They claimed that during their five-minute conversation, the minister became annoyed when the Tiger Eye team tried to ‘entrap’ him with a financial gift.
According to the report, Tiger Eye P.I. agents pretended to be investors looking to make investments in Ghana and required a meeting with the minister to explore potential and other business-related matters.
It further established that the investigators had earlier met with Charles Adu Boahen, Ofori-Atta’s deputy back in 2018, in a hotel suite in the United Araba Emirates, UAE, where the now dismissed Adu Boahen was given monies in lieu of helping the investors get access to among other Vice President Mahamudu Bawumia.
After their meeting, they then proceeded to meet with Ken Ofori-Atta briefly at the Dubai airport while he was on transit to Tokyo on an official assignment.
The report said neither the minister nor his PA accepted the money gift from the Tiger Eye P.I. team.
“Mr. Ofori-Atta was informed the meeting was with the Chairman of Al Baraka Islamic Bank of Bahrain, whose interest was to invest $500m to set up an “ethical” bank in Ghana.
“The meeting, per our checks, lasted some five minutes. Ken Ofori-Atta left very irritated when he was offered a “gift”, which he refused to accept, and walked out with his PA who was also offered a gift that was rejected as well,” the Asaase radio report added.
“The last time I checked, Tiger Eye has no video depicting any interaction with Ken Ofori-Atta! None!
“Assuming without admitting that there were attempts to “entrap” Ken Ofori-Atta, and the attempts proved unsuccessful? What would that mean? That Adu Boahen failed the “test of integrity” while Ofori-Atta succeeded? Or?” he quizzed.
Baako, however, explained that documentaries are to tell a story and not exhibits in criminal investigations but rather the “raw footages” of the documentary are what can be used as exhibits in criminal proceedings.
He said, any time a project of Tiger Eye P.I. has become a subject of criminal prosecutions, the Tiger Eye P.I. team submits the “raw footages” as part of their exhibits in court.
“By the way, documentaries are not exhibits in criminal investigations and/or prosecutions. The RAW FOOTAGES are. And the latter have always been submitted to the relevant statutory authorities for the purposes of criminal investigations and prosecutions that were triggered by undercover ops by/of Tiger Eye!
“People are entitled to ask questions of Tiger Eye and its “methodologies”. That’s fair game. No problem. Tiger Eye will continue to unearth any and all “negatives” applying its “methodologies” whether its critics like it or not!
“For now, Tiger Eye has indicated its readiness to assist the investigation announced by the Special Prosecutor; upon the presidential referral of the conduct of Mr. Adu Boahen to the OSP! DUE PROCESS is underway. That’s where Tiger Eye’s FOCUS is!
“Those who want to continue asking questions and criticising “methodologies” and perceived/alleged omissions of Tiger Eye, are entitled to continue! FREE SPEECH!!” Kweku Baako stressed.
Finance Minister Ken Ofori-Atta has rendered an apology to the good people of Ghana over the current economic hardship they are facing.
Appearing before the ad hoc committee instituted by Speaker Alban Bagbin, the Finance Minister on Friday noted that it has been the vision of the Akufo-Addo-led government to develop the country.
“Since the Akufo-Addo government came into office, it was the dream of making the lives of the people better. In the first four years, our efforts were leading to the realization of the vision,” he said.
However, he noted that the success chalked by the government has been erased by the COVID-19 pandemic and other external factors.
Nonetheless, he took responsibility for the current economic situation and said “I am sorry.”
According to Mr Ofori-Atta, “as a person President Akufo-Addo has put in charge of this economy, I feel the pain personally, professionally and in my soul.”
Despite the challenges being faced, the sector minister noted that “government remains focused on its vision.”
The Minority in Parliamentargue that Mr Ofori-Atta has among other things; made unconstitutional withdrawals from the Consolidated Fund, illegal payment of oil revenues into offshore accounts, misreported economic data to Parliament, mismanaged the economy, leading to the depreciation of the Ghana cedi.
On November 18, 2022, Finance Minister Ken Ofori-Atta will testify before an eight-person ad hoc committee of Parliament looking into a vote of censure against him.
The minority in Parliament brought the motion of censure against Ken Ofori-Atta.
Seven claims were made against the minister, including extravagant spending, conflicts of interest, financial irresponsibility that caused the Ghana cedi to plunge, and egregious economic mismanagement.
On Tuesday, November 18, 2022, when the first sitting was held, the minority was represented by the Minority Leader, Haruna Iddrisu, and, Minority Spokesperson on Finance, Cassiel Ato Forson, proponents of the motion.
Director of Advocacy and Policy Engagement at the Centre for Democratic Development Ghana (CDD-Ghana), Dr. Kojo Pumpuni Asante, is dissatisfied with how Finance Minister, Ken Ofori-Atta’s censure hearing is being conducted.
He says the hearing has so far been frustrating, contrary to public expectations.
“It has just become like a courtroom. It was meant to be a debate; an establishment of facts in parliamentary style, but it has just become like a courtroom,” he said.
The committee’s Tuesday hearing got off to a rough start as its members disagreed about how the minority members should present their case against the Finance Minister.
Some committee members wanted the hearing to be handled like a quasi-judicial process.
However, Dr. Asante contends that given the current economic situation, such discussions are not necessary.
“I don’t know whether it is because there are too many lawyers leading these processes. It becomes a thing about needing evidence and so on… That is not helpful. Part of that, I find very frustrating.”
“This could have been dealt with a long time ago if the President had listened to all of us. Unfortunately, we are now in the space of this tug of war, and still, our crisis hasn’t gone anywhere,” he added.
The Minority in Parliament is seeking the removal of the Finance Minister, Ken Ofori-Atta, from office over what they describe as “despicable conflict of interest, unconstitutional withdrawals from the Consolidated Fund, illegal payment of oil revenues into offshore accounts, deliberate and dishonest misreporting of economic data to Parliament, alarming incompetence and frightening ineptitude, gross mismanagement of the Ghanaian economy, and fiscal recklessness leading to the crash of the Ghana Cedi.”
They have accused the minister of displaying gross incompetence while in office.
The Finance Minister is also expected to appear before the Committee today, Friday, November 18, 2022, following his lawyer, Gabby Asare Otchere-Darko’s request for some time to prepare based on the evidence tendered to the committee by the Minority.
Meanwhile, former United Nations Senior Governance Advisor, Professor Baffour Agyeman-Duah, shares a similar opinion. He said the hearing was unnecessary.
“I think we’ve come to a point where this matter should be resolved. It’s not necessary to go through this whole process. And I do agree with Amoako Baah and the others that look, this matter should have been settled right on the floor of Parliament. All this process of committee and… I don’t think it’s necessary. We are prolonging something that is inevitable,” he said.
He further entreated the Minister to either willingly resign from his post or be dismissed by the President.
He claims that the government’s failure to heed the calls and terminate the minister’s appointment will not only exacerbate the economic crisis, but could also lead to a constitutional crisis.
“Well, my hope is that we will not get there. What I expect to happen in the coming days or weeks is perhaps the Finance Minister taking himself out of this dilemma, or the President just announcing that he’s displacing the Finance Minister because it will just be tragic for these two individuals to lead the country into such a constitutional jam. We don’t want that.
“We all know the difficulties we face, and in fact what we’re not even thinking about is the very negative impact of this crisis, or this stalemate I should say on our international partners and our financial relations with the outside world. Somewhere else our market would have plummeted further.
“So in fact we are doing ourselves a lot of ill if in fact the President and the Finance Minister continue to be intransigent on this matter and not to appropriately respond to the ground swell of public demand for the displacement of the Finance Minister,” he said.
Kwesi Pratt Jnr, managing editor of the Insight Newspaper, has expressed concern about the composition of the ad hoc committee set up by Speaker of Parliament Alban Bagbin to investigate a censure motion against Finance Minister Ken Ofori-Atta.
Kwesi Pratt questioned the consideration that went into the selection of the committee members during a Good Morning Ghana panel discussion on November 16.
He also stated that the committee members have been engaging in unnecessary confrontations, which is sending the wrong message to the general public.
“…if you look at the members of the ad hoc committee… I’m sitting back as a citizen, and I’m just wondering what went into the selection of these persons as members of the ad hoc committee. And I can’t make up my mind. What went into the selection?
“What consideration went into the selection of KT Hammondas co-chairman of this committee… Normally, if you look at such committees as laypersons, you will be able to tell what went into the selection of certain people based on their background, their practices, and so on.
“Now I am totally confused. There is the other co-chairperson, and I am also asking why. A considerable amount of time on the committee is being spent on needless contestations. Why that is happening, I don’t know. All of us who are watching this drama play out have to be exceedingly careful about the signals we send out there into the public domain,” he said.
The 8-member ad hoc committee started work on Monday, November 14, and it is expected to make a determination on the removal of Ofori-Atta within 7 days.
The committee is co-chaired by Members of Parliament (MP) for Adansi Asokwa, Kobina Tahir Hammond, and Bolgatanga, Dominic Ayine.
The members of the committee from the minority caucus include the MP for North Tongu, Samuel Okudzeto Ablakwa; the MP for Korle Klottey, Zanetor Agyeman-Rawlings; and the MP for Akatsi South, Bernard Ahiafor.
The other members from the majority caucus are MP for Okaikwei Central, Patrick Yaw Boamah; MP for Asante-Akim Central, Michael Kwame Anyimadu-Antwi; and MP for Sekondi, Andrew Kofi Agyapa Mercer.
It has now been established that the ‘Galamsey Economy’ documentary by Anas Aremeyaw Anas had footage from 2018 forming the juiciest part, an alleged bust of a Minister of State soliciting bribes for others and and receiving same for himself.
In opening up on the extent of his involvement in the episode that has since gotten him fired by President Nana Addo Dankwa Akufo-Addo, embattled Charles Adu Boahen, said his encounter with investigators clothed a business men was on 8 February 2018.
Whereas he accepted a gift of undisclosed amount of dollars, a pro-government radio station, Asaase Radio, is reporting that the Finance Minister, Ken Ofori-Atta turned out to be the major target of the Tiger Eye PI agents.
Read relevant portions of the Asaase Radio report of November 14 below:
After the meeting with Charles Adu Boahen, Tiger Eye, was not satisfied and wanted to trap the bigger fish, Finance Minister, Ken Ofori-Atta.
They were to have their chance, they thought, when after several attempts Mr. Ofori-Atta agreed to meet them at the airport in Dubai on transit to Tokyo, Japan.
In the company of his then Personal Assistant (PA), Michael Bediako, Mr. Ofori-Atta met the supposed investors (investigators) at the Dubai terminal hotel (Dubai International Airport) on 5 April 2018 at around 6:30am.
Mr. Ofori-Atta was informed the meeting was with the Chairman of Al Baraka Islamic Bank of Bahrain, whose interest was to invest $500 million to set up an “ethical” bank in Ghana.
The meeting, per our checks, lasted some five minutes. Ken Ofori-Atta left very irritated when he was offered a “gift”, which he refused to accept, and walked out with his PA who was also offered a gift that was rejected as well.
Background
Charles Adu Boahen, then a deputy Minister of Finance was implicated in the ‘Galamsey Economy’ investigative documentary released by investigative journalist Anas Aremeyaw Anas on November 14.
The now dismissed minister was captured on tape making comments to the effect that access by investors to Vice President Mahamudu Bawumia could be facilitated at a cost of US$200,000.
Bawumia has dispelled the allegations and insisted that his integrity remains his most cherished asset in life.
“My most cherished asset in life is my integrity and I will not allow anyone to use my name to engage in corrupt activities,” Bawumia said in a post calling for the minister’s dismissal.
President Nana Addo Dankwa Akufo-Addo has since terminated Adu Boahen’s appointment and referred the contents of the investigation to the Office of the Special Prosecutor.
The NPP MP for Sekondi Constituency in the Western Region, Andrew Kofi Egyapa Mercer, has said that the Minority in Parliament is rehashing old and debunked allegations against the Minister of Finance, Ken Ofori-Atta.
Mr Mercer said the allegations of misreporting were first raised in May 2020, and rejected by the International Monetary Fund (IMF) as being untrue.
He, therefore, wondered why the Minority would use the same issues as bases for a motion of censure against Mr Ofori-Atta.
The MP made the statement at the first hearing of the Ad Hoc Committee on the motion of censure brought against the Finance Minister.
Egyapa Mercer’s claim was also in response to Dr Cassiel Ato Forson’s presentation which was centred on the misreporting of the fiscal deficit, fiscal treatment of expenditures above or below the line and general public sector accounting.
The MP said the past Country Representative of the IMF, Dr Albert Touna Mama, had debunked the allegations on Joy News File in May when he was called to respond to them when first raised by Dr Forson.
“Indeed, the said Dr Touna Mama was the Country Representative of the IMF. He was called to respond to allegations on misreporting of figures that the Finance Ministry had presented to IMF and he said all the figures were known by the IMF and therefore it was untrue that there was misreporting,” Mr Mercer said.
Meanwhile, in May 2020, Dr Touna Mama said that whilst his outfit tried “as much as possible to stay out of debates” they felt compelled to clarify statements made by Fact Check Ghana concerning the $1 billion IMF COVID-19 relief fund to the government.
Fact Check Ghana, an affiliate of the Media Foundation for West Africa, through its website, stated that government of Ghana presented data to the IMF which was different from figures in the annual budgets for 2018 and 2019.
But speaking on Joy FM’s News File Programme in May 2020, the IMF Country Representative to Ghana, Dr. Albert Touna Mama suggested that Fact Check Ghana misrepresented the facts because the government was not the one that presented the figures that the IMF published in its statements as Fact Check Ghana reported.
The IMF Country Director explained that the difference in figures was as a result of a difference in the methodology of calculation, adding that the figure in fiscal deficit in their statement was a figure they generated themselves from the data government presented to them, having added financial and energy sector payments in line with their methodology, which is different from government’s methodology.
Earlier, Mr Ofori-Atta, asked the committee for a fair hearing.
He asked that he be furnished with the documents that they intended to rely upon, to execute the motion of censure initiated against him.
The minister’s lawyer, Gabby Asare Otchere-Darko, said the rules of natural justice and fair hearing required that the accused was not only heard but also necessarily be furnished with the documents that formed the bases of the allegations made against him.
Finance Minister, Ken Ofori-Atta, has been sighted dozing off at the maiden hearing of the eight-member Committee set up to probe the censure motion brought against him by the Minority in Parliament.
Barely two hours into the hearing which began today November 15, the visibly tired Finance Minister was captured on national television sleeping away an all-important hearing that could otherwise revise his fate as the manager of Ghana’s economy.
The hearing which is still underway, Ranking Member on the Finance Committee of Parliament, Dr Cassiel Ato Forson is making submissions as the star witness to the no confidence motion against Ken Ofori-Atta.
As part of his argument, Dr Ato Forson asserted that the huge debt overhang is the principal precipitator of the current economic crisis culminating into untold hardship Ghanaians endure daily.
Some Twitter users have shared their opinions on Mr Ofori-Atta being unable to give his full attention during the sitting.
If not for greediness, wickedness, family affairs and selfishness, why would Ken Ofori-Atta still be the Financial Minister? The person seated there clearly is not physically fit. I’m not surprised. The President himself is just like the Finance Minister. pic.twitter.com/dPDWuY9lCp
Minority leader Haruna Iddrisu and Gabby Otchere Darko, the lawyer of the Finance Minister, also appeared before the Committee.
Today’s sitting comes after the Minority moved a censure motion against the Finance Minister. They argue that Ghana’s economic woes should be pinned on Mr Ofori-Atta.
Following a heated debate in Parliament last week, Speaker Alban Bagbin instituted an ad hoc committee to be co-chaired by MP for Bolga East, Dominic Ayine and Adansi-Asokwa legislator, Kobina Tahir Hammond to look into the matter.
Other members of the committee include North Tongu MP, Samuel Okudzeto Ablakwa, Klottey-Korle, the Dr. Zanetor Agyeman-Rawlings, and Okaikoi North MP, Emmanuel Ahiaku, from the Minority side.
Representatives from the majority side are Okaikwei Central MP, Yaw Boamah, Asante-Akim Central legislator, Kwame Anyimadu- Antwi, and Sekondi MP, Egyapa Mercer. The clerk to the committee is Mr Boamah Camilo, the Speaker added.
The 8-member committee tasked by Speaker Alban Bagbin to probe into the censure motion filed by the Minority against Finance Minister, Ken Ofori-Atta, has commenced its sitting.
The sitting co-chaired by MP for Bolga East, Dominic Ayine and Adansi-Asokwa legislator, Kobina Tahir Hammond is being broadcast live.
Minority leader Haruna Iddrisu is expected to testify today.
Other members of the committee include North Tongu MP, Samuel Okudzeto Ablakwa, Klottey-Korle, the Dr. Zanetor Agyeman-Rawlings, and Okaikoi North MP, Emmanuel Ahiaku, from the Minority side.
Representatives from the majority side are Okaikwei Central MP, Yaw Boamah, Asante-Akim Central legislator, Kwame Anyimadu- Antwi, and Sekondi MP, Egyapa Mercer. The clerk to the committee is Mr Boamah Camilo, the Speaker added.
According to Mr Ablakwa, the public sittings will ensure “transparency and accountability:.
Deputy General Secretary of the National Democratic Congress (NDC), Lawyer Barbara Serwaa Asamoah, has urged the wife of Finance Minister Ken Ofori-Atta, Prof Angela Ofori-Atta, to advise her husband to step down from his position.
According to her, Prof Ofori-Atta should advise her husband to resign because everything shows that Ofori-Atta has lost control of Ghana’s economy, and he is now becoming an embarrassment.
Lawyer Serwaa Asamoah added that Ofori-Atta had made enough money that can take care of his generation yet to be born and so he should not be worried about losing his job.
“… he (Ofori-Atta) can’t do the job; none of his actions shows that he can do the job, so why is the president keeping him at post. So, should Ghana collapse because of one person?
“For the past six years, the money you have made can take care of your children, your great-grandchildren and your great, great-grandchildren. So, why all this fuss? What does he (the finance minister) want in addition?
“… he is disgracing his wife and his children. The woman who is the wife of Ofori-Atta is being disgraced too much. You (the Ofori-Atta family) must speak to him so that he will accept that he has to resign,” she said in Twi in an XYZ TV interview monitored by GhanaWeb.
Meanwhile, the over 80 New Patriotic Party (NPP) Members of Parliament who demanded that President Nana Addo Dankwa Akufo Addo relieve Finance Minister Ken Ofori-Atta have reiterated their decision.
According to the MPs, they are not in agreement with President Akufo-Addo’s request for Ofori-Atta to read and see the 2023 budget through appropriation.
The MP for Effiduase-Asokore, Nana Ayew Afriyie, who spoke on behalf of the over 80 MPs in Parliament on Thursday (November 10), said that they have decided that Ofori-Atta should not be the one to read the budget or lead the subsequent process.
“Over the days, we have heard the finance minister speaking, and his speaking has influenced majority of us in the caucus, not only to state that we are back to the original position that we took, and that position is that the minister of finance must not be the one to read the budget, and must not be the one that would do the appropriation.
“We are here to tell you this morning that our position will be very soon for you to see, and we will be positively defiant about that posture until action is taken,” he said.
A member of the National Democratic Congress, Alfred Ogbamey, says the Finance Minister, Ken Ofori-Atta may be out of office by next week.
According to him, following recent agitations from the Majority side in Parliament and the Minority filing a motion of censure against the Minister, it is expected that Ken Ofori-Attawill step down sooner than is expected.
“Well my information is that the Finance Minister may not be around. If my information is right, by next week he may not be around. They were looking at end of November but given the stance of his own MPs as well as the Minority it is highly unlikely that he may present the budget,” he said on JoyNews’ Newsfile Saturday.
Earlier, Majority MPs in Parliament had threatened to boycott the reading of the 2023 budget if Finance Minister, Ken Ofori-Atta was not sacked.
Addressing a press conference, the NPP lawmakers stated that they are displeased with the management of the economy under Ken Ofori-Atta.
The MPs have therefore signed a petition urging the President to sack his cousin, Ken Ofori-Atta.
“We have made our great concern to the President through the Parliamentary leadership and the leadership of the party without any positive response.
“We are by this medium communicating our strong desire that the President changes the Minister of Finance and the Minister of State at the Finance Ministry without any further delays, in order to restore hope in the financial sector and reverse the downward trend in the growth of the economy”, MP for Asante Akim North, Andy Appiah-Kubi said.
The legislator continued, “meanwhile we want to serve notice, and notice is hereby served that until such persons as aforementioned are made to resign or removed from office, we members of the Majority Caucus here in Parliament will not participate in any business of government by or for the President by any other minister.”
Following an intervention from the Presidency and the New Patriotic Party officials, the NPP MPs relaxed their ultimatum after being assured that their concerns will be revisited after an IMF deal has been reached and the 2023 Budget statement read and appropriated.
The grounds for the Minority’s motion include mismanagement of the economy, alleged withdrawals from the Consolidated Fund, and illegal payment of oil revenues into offshore accounts among other reasons.
The Speaker of Parliament has since directed the motion to be presented to an adhoc committee to interrogate the reasons for the vote of censure against the Minister.
According to him, the figures change when the Minister is asked to present to international bodies such as the World Bank and the International Monetary Fund.
He made the comments during a debate on the floor of parliament on a vote of censure against the Finance Minister, Ken Ofori-Atta.
He said: “In 2018 he reported to this house that the fiscal deficit was 3.9% of GDP when he had to report to the World Bank the actual was 7.1% of GDP
In 2019, he reported that the fiscal deficit was 4.8% when the actual to be reported to the International Monetary Fund the actual was 7.1% to GDP
In 2022, he reported that the fiscal deficit was 11.7% of GDP when the actual was 17.2 %. In 2021 he reported 9.2% when the actual was 12.4%.”
“What are we waiting for, from this Minister before we will now believe the time has come for him to exit? I am reliably informed that he is part of the impediment that is not making us conclude the negotiations with the IMF,” he said.
On November 10, 2022, the NPP side of parliament boycotted the vote of censure to remove Ofori-Atta.
According to the MPs, they are not in agreement with President Akufo-Addo’s request for Ofori-Atta to read and see the 2023 budget through appropriation.
The MP for Effiduase-Asokore, Nana Ayew Afriyie, who spoke on behalf of the over 80 NPPs at Parliament on Thursday (November 10), said that they have decided that Ofori-Atta should not be the one to read the budget or lead the subsequent process.
“Over the days, we have heard the finance minister speaking and his speaking has influenced majority of us in the caucus, not only to state that we are back to the original position that we took, and that position is that the minister of finance must not be the one to read the budget, and must not be the one that would do the appropriation.
“We are here to tell you this morning that our position will be very soon for you to see, and we will be positively defiant about that posture until action is taken,” he said.
The MPs, however, stated that they will not support the vote of censure being spearheaded by the minority caucus of the House because they do not agree with the reasons the National Democratic Congress (NDC) MPs cited.
Speaker Alban Bagbin has instituted an eight-member committee to look into the censure motion filed by the Minority in Parliament to facilitate
the dismissal of Finance Minister, Ken Ofori-Atta.
On Thursday, the Minority, led by Tamale South MP, Haruna Iddrisu, moved a censure motion against Mr Ofori-Atta despite calls by the Majority to have the Minister present to defend himself.
Following a heated debate, Speaker Bagbin decided on establishing an ad hoc committee spearheaded by two co-chairmen, MP for Bolga East, Dominic Ayine and Adansi-Asokwa legislator, Kobina Tahir Hammond, to look into the matter.
The Speaker came to the decision in accordance with Order 106 of the Standing Order, which states, “The House may pass a resolution to remove the President, the Vice President, Mr. Speaker, and Deputy Speakers, and a vote of censure on a Minister of State.”
“The House may consider such motion and come to a decision or refer it to a committee on a motion made by any member,” it continues.
In his submission, Speaker Bagbin directed the committee to report to the House in the next seven days.
Other members of the committee include North Tongu MP, Samuel Okudzeto Ablakwa, Klottey-Korle, the Dr. Zanetor Agyeman-Rawlings,
and Okaikoi North MP, Emmanuel Ahiaku, from the Minority side.
Representatives from the majority side are Okaikwei Central MP, Yaw Boamah, Asante-Akim Central legislator, Kwame Anyimadu-
Antwi, and Sekondi MP, Egyapa Mercer. The clerk to the committee is Mr Boamah Camilo, the Speaker added.
On October 25, 2022, the Minority in Parliament filed a censure motion against the Finance Minister, Ken Ofori-Atta.
This occurred at the same time that the majority MPs, numbering around 80, held a press conference to demand the removal of the
Finance Minister and Minister of State in charge of Finance at the Ministry of Finance, Charles Adu Boahen, for their inability to manage the economy.
However, the NPP MPs have failed to support the NDC MPs in their quest. The Majority explained that their justification for the Minister’s
removal does not tally with that of the Minority’s.
“Over a few days, we have had the Finance Minister speaking, and his Ghana to receive $50m for carbon emission
reduction speaking has informed the Majority not only to state that we are back to the original position that we took and that original position is to say that the Minister of Finance will not be the one to read the budget and its appropriation.”
“However, we are not going to support the cause of the NDC in the chamber this morning. The cause of the NDC is premised on falsehood,
propaganda and reasons that are not justifiable. Their position might look like ours but it is not the same,” the Majority said.
Meanwhile, President Akufo-Addo has asked that the Finance Minister be allowed to complete Ghana’s negotiations with the International Monetary Fund (IMF) and present the 2023 budget and economic statement.
The Speaker of Parliament, Alban Bagbin, has referred a vote of censure motion filed by the minority cause of Parliament for the removal of Finance Minister, Ken Ofori-Atta, to an 8-member ad hoc committee.
The committee is expected to make a determination on removal of Ofori-Atta within 7 days.
The speaker announced that the committee will be chaired by Member of Parliament (MP) for Adansi Asokwa, Kobina Tahir (K.T.) Hammond and the MP for Bolgatanga Dominic Akuritinga Ayine.
The Ningo-Prampram MP says the Minority Caucus will not accord the honourable title to his colleagues on the Majority side should they fail to vote against the Finance Ministerin a censure vote today.
Samuel Nartey George said any contrary action by the NPP MPs will mean they lack honour and thus do not deserve to be treated as such.
Speaking on Metro TV on Thursday, the NDC MP said they will refer to the NPP MPsby their regular names and not honourable.
He thus urged them to earn the title honourable today.
“Today, it is a matter of honour. It is a matter of the title we so fight for. So they (NPP MPs) must earn their title today.
“This is a call to the 137 on the Majority side. Earn your title. Else we will not call you honourable members of the rest of the term.
“We will refer to you by your regular names because you are going to show Ghanaians that you lack honour,” he threatened.
Mr Nartey George added the motion by his caucus has no partisan motive.
According to him, it represents the general demands of the majority of Ghanaians.
“Ghana is at the crossroads today. Today Parliament has the opportunity to distinguish itself and ensure that we are masters of our own craft and ensure that we care about the people we represent.
The motion of censure that stands in the name of the Minority leader is not a motion that is to seek a partisan or political or parochial interest. It is simply in response to the calls by Ghanaians,” he added.
The Minority Caucus’s censure motion against the embattled Finance Minister, Ken Ofori-Atta is expected to be moved today.
The motion which was filed on October 25, per the constitution is to be debated upon and voted on the same after 14 days of its receipt by the Speaker of Parliament.
Today, Thursday, November 10, is the fourteenth day, after the motion was received by the Speaker.
The grounds for the Minority’s motion include mismanagement of the economy, alleged withdrawals from the Consolidated Fund, and illegal payment of oil revenues into offshore accounts among other reasons.
Ahead of that, the New Patriotic Party has ordered its Members of Parliament (MPs) to abstain from the vote of censure against the embattled Finance Minister.
The party has thus asked the chief whips of the Caucus to ensure the order is complied with.
In a press release issued on Wednesday, November 9, and signed by the General Secretary of the party, Mr. Justin Kodua Frimpong, he said the decision was taken after wider consultation with major stakeholders.
“The leadership of the New Patriotic Party, following a broader consultation and engagements with stakeholders has resolved and hereby directs all members of the Majority Caucus in Parliament to abstain from a scheduled vote of censure being sought by the Minority Caucus against Mr Ken Ofori-Atta, Minister for Finance.
Meanwhile, the Minority Chief Whip, Muntaka Mubarak, has warned that members of the Majority Caucus who had rebelled against the Finance Minister may face dire consequences should the vote of censure fail.
According to him, in the event the vote of censure fails, the 80 Majority Caucus members would be at the mercy of their party officials and this will not bode well for them.
Already, all NDC MPs have been instructed not to miss today’s sitting in order to get the required number to carry out their objective.
The Deputy Minority Whip, Ahmed Ibrahim has warned that there will be consequences should any member fail to show up.
Board Chairman of the National Theatre, Nana Fredua Agyeman Ofori-Atta, has refuted suggestions that the Nana Addo Dankwa Akufo-Addo government has nothing to show for all the monies it has borrowed.
Speaking in an interview on GHOne TV, which was monitored by GhanaWeb, Agyeman Ofori-Atta said that unlike the era of John Dramani Mahama, all the monies Finance Minister Ken Ofori-Atta borrowed have been used for projects that are visible to every Ghanaian.
He added that it is true that Ofori-Atta has borrowed a lot, but all the monies he borrowed were put into strategic sectors of the economy that will help propel the development of Ghana.
“The difference between the NDC government’s borrowing and the NPP government’s borrowing is in the purpose. The monies they (the NDC) borrowed, where did it go? How many things do we remember they used the money for?
He added that for the Akufo-Addo government the monies borrowed have been invested in “agriculture, health, education, industry, transport, the list goes on. You can see it. Let them list theirs, and let’s see.”
“So, that is the point; the point is the money has been borrowed, these are matters of fact, you can twist it. (The problem) is what it (the borrowed funds) has been spent on. Are we going to see the benefit?” he queried.
He added that the Akufo-Addo government had invested so much in railway infrastructure, which is critical in expanding Ghana’s economy.
Economist, Professor Lord Mensah, has said the Minister of Finance, Ken Ofori-Atta must resign for a new person to take over the management of the economy.
According to him, the Finance Minister is trying to dissociate the economic dynamics from its management adding that what Mr. Ofori-Atta is doing is not real and it doesn’t happen anywhere.
The Economist explained that economic management goes with economic dynamics.
“Obviously it has to do with management so if the entire population is calling for his head. It sends the signal that what is on the grounds is not good. So for him to say that we should focus on the IMF and possibly restore the economy it’s uncalled for.
“For me his understanding of the management and influence of economic dynamics, he should understand that the economy is not on autopilot, the economy must be managed. If at the end of the day those that are supposed to feel the impact of the economy are saying that things are not going well with them that he should resign, he has to. He is not the one to come and explain and tell us that we have to focus on how we can restore the economy,” Prof. Mensah told Starr News.
He further stated that a new hand can give Ghanaians breathing space.
“I think his resignation will bring about some confidence to the economy and as a result of that maybe the economy will head in the right direction. Trust me you cannot dissociate human thinking when it comes to economic dynamics from the real numbers that are on the ground. We are waiting for him to resign so that we can have breathing space. As we speak now his presence as a Finance Minister has brought about a whole lot of uncertainty in the economy.
“People cannot even plan, investors cannot even look ahead and look at the next moment. As we speak now there are so many things going on at the back side of the economy that we don’t even know.”
Embattled Finance Minister, Ken Ofori-Atta, has spoken about how invested he has been in the management of Ghana’s economy citing the exertions that he has been going through.
In an interview posted on Joy FM’s social media handles, the Minister is heard stressing that the managers of the economy understood the task at hand.
He stressed that they were dealing with incessant challenges and taking cognizance of the available resources.
“Just to assure you that you have a finance minister who has gone through all the pains and aches and nobody can really come and say we don’t understand what we are doing.
“The question is what resources do we have and how we are going to deploy them in the nation that we have in very difficult circumstances but being very confident that the nation is purposed for greatness and we are blessed to have the opportunity to lead where we are going,” Ofori-Atta added.
“Let me assure you all that your best bet is still Ghana,” he told the gathering believed to be a group of investors but the time of the meeting is, however, unknown.
Calls for Ofori-Atta, Adu Boahen to be axed
A group of NPP MPs, numbering over 80, on October 25 held a press conference demanding the removal of the Finance Minister and Minister of State at the Ministry, Charles Adu Biahen, over management of the economy and hard times that citizens were facing.
President Akufo-Addo intervened and got a concession on two grounds, that the Ofori-Atta be allowed to conclude initial talks with the International Monetary Fund and present the 2022 budget and see to the passage of its appropriation.
The president has also addressed the nation on the economic challenges and how the government intends to tackle them.
The Majority Leader, Osei Kyei-Mensah-Bonsu, has recently stated that the view advanced by the Ken Must Go MPs is now the Majority position.
Meanwhile, the Minority Caucus is pushing a vote of censure t remove Ofori Atta from office.
