Sources close to the New Patriotic Party (NPP)’s side of the Transition Team have told BUSINESS GUIDE that the previous National Democratic Congress (NDC) administration had increased the country’s debt from GH¢9.5 billion to GH¢120 billion as at November 2016.
The amount, which is contrary to that released by the Bank of Ghana’s Monetary Policy Committee (MPC), showed that the NDC administration borrowed over GH¢110.5 billion during its eight-year tenure.
Under the leadership of former President Mahama, the country was spending over GH¢10 billion every month to service the national debt, which is more than amount of money set aside for government’s recurrent expenditure.
Monies released to most Ministries, Departments and Agencies (MDAs) were far below those budgeted for because of the development.
From BoG’s website
As at the time of handing over power to the New Patriotic Party (NPP) administration, led by President Nana Addo Dankwa Akufo-Addo, the NDC had succeeded in borrowing GH¢9,050.1 million from both domestic and foreign investors through securities traded on its behalf by the Central Bank from the beginning of December 2016 to date.
This was made up of GH¢6,970.06 million (i.e. close to GH¢7 billion) for December 2016 and GH¢2,080.04 million (i.e. over GH¢2 billion for the first week of January to date.
Layman’s computation
If this should be grossly added to the total national debt of GH¢112.4 billion as announced by the Central Bank in November last year, Ghana’s total national debt should be GH¢121.4 billion, above the 71 percent current debt-to-GDP ratio quoted by Seth Terkper, former Minister of Finance.
Misty projects
Messers Terkper and Mahama continuously told Ghanaians that the monies were used to construct roads, schools and other projects in the NDC’s green book, which are yet to be fully investigated by the incumbent.
GoG securities trading
Tender 1519 held on 6th January, 2017 for Government of Ghana Securities to be issued on Monday, 9th January, 2017, Mahama administration borrowed GH¢2080.04 million (over GH¢2 billion), made up of 91-day T-bills (GH¢712.28 million); 182-day T-bills (GH¢189.19 million) and 2-year notes (GH¢1,178.57 million).
Also, results of Tender 1518 held on 30th December, 2016 for Government Of Ghana Securities issued on 2nd January, 2017 totaled GH¢1220.08 million, comprising 91-day T-bills component of GH¢767.98 million); 182-day T-bills component of GH¢97.05 million and 1-year note component of GH¢355.05 million.
Tender 1517 held on 23rd December, 2016 for Treasury Bills (91-day and 182-day) raked in GH¢985.25 million while results of Tender 1516 held on 16th December, 2016 for Government of Ghana securities issued on 19th December, 2016 yielded a total of GH¢1220.71 million.
Also a summary of Tender 1515 held on 9th December, 2016 for Treasury bills and Note produced GH¢1595.56 million for Government while that of Tender 1514 held on 1st December, 2016 for Treasury bills and note amassed GH¢1948.46 million.
Paradox
Mr Terkper recently stated that the NDC had left Ghanaians with “a stabilized economy for the incoming administration.”
Speaking to Citi Fm recently, he said his government had “managed to bring the economy to a point of stabilization and where, as we have been indicating, we have seen a clear turnaround. Growth is increasing; the Cedi has also stabilized considerably since last year. We have seen inflation begin to come down.”
Oil sector boastings
“We have made significant investments also in oil and gas, in particular, the World Bank partial loan guarantee… Ghana will start a robust growth as a result of these investments.”
According to Mr. Terkper, these investments have led to the production of crude oil at the Tweneboa, Enyenra, Ntomme (TEN) field along with the expected production of gas from the third FPSO at the offshore Cape Three Point Sankofa, which is near completion.