This marks a significant increase compared to the 2010–2016 period, during which 27% of Ghana’s revenue was used to service debt.

The 15-percentage-point rise in debt servicing from the 2010 – 2016 to the 2017 – 2022 period underscored the increased fiscal pressures the country faced.

Data from the Ministry of Finance reveals a sharp escalation in interest payments over the years. While GH¢36 billion was spent on debt servicing between 2010 and 2016, the amount soared to GH¢152 billion during the 2017–2022 period.

In total, Ghana’s debt servicing between 2010 and 2022 amounted to GH¢189 billion, with a staggering 81% of that paid in the latter five years.

Also, within 2010 and 2022, the nation’s lowest interest payment was recorded in 2010 which is GH¢1.44 billion and recorded its highest interest payment in 2022 which is GH¢45.69 billion as per the data from the Ministry of Finance.

The 2024 United Nations report on Unpacking Africa’s Debt also identified that the steep increase in debt servicing constrained government spending on public services and eventually led to Ghana’s being classified as one of the world’s 10 most debt-distressed nations.

The IMF revealed that, in 2020, Ghana’s debt to revenue ratio reached an all-time high of 127%, the highest in Sub-Saharan Africa at the time.

Despite the debt to revenue ratio dropping to 117% in 2022, Ghana had to default on its external debts in 2022 with the subsequent restructuring of domestic and foreign debt.

ALSO READ:

• Ghana debt restructuring snag just a hiccup – Amin Adam

• Ghana’s high debt distress classification to be reviewed after 2028 – IMF

• Ghana’s debt to GDP ratio to stay above 60 percent till 2027

The Business Development Manager, Dr. Elikplim Apetorgbor, has acknowledged that the government has given assurances to settle the debt.

However, attempts to settle the debt installments have not yielded any significant outcomes, further exacerbating the financial strain on the company.

“We received notification from the Controller and Accountant General’s Department in the first week of our shutdown. They informed us that the Ministry of Finance authorized them to pay us $30 million, but they are having some challenges.”

“It was during the week of salary payments, and they have to split this payment into five or six tranches. We are in November, and not even one tranche has been received, but the assurance was that they would try to pay one tranche during their week of salary payment, with the rest coming before the end of October. Here we are, not even one of the tranches has been paid,” he said in an interview on Accra-based Citi FM.

The Minister of Finance, Dr. Mohammed Amin Adam, announced last week that he has directed the Controller to disburse $30 million to the power supplier. This was in the wake of its decision to shut down its 560MW power plant due to an outstanding debt of $259 million owed by the Electricity Company of Ghana (ECG).

Although the prolonged debt has significantly impacted the company’s ability to operate efficiently, Dr. Amin accused Sunon Asogli of acting in bad faith. However, Dr. Apetorgbor stated that Dr. Amin should have verified whether the payment had been made before going public.

“It is unfortunate that the Ministry of Finance has been reduced to an official propaganda office. It is such a sensitive office to be used for that. I advise that whatever information the Finance Minister provides or shares with the public, he should double-check to ensure that he is dealing with the right information,” he said.

ALSO READ:

• Finance Ministry directs $30m payment to Sunon Asogli amid fears of power crisis

• Finance Minister announces agreement reached with Sunon Asogli

The Finance Minister’s announcement that Eurobond investors have forgiven $5 billion of Ghana’s debt has been received with dismay by these pensioners, who feel left out of the debt negotiations and severely impacted by the restructuring process.

The affected pensioners express that despite following the government’s press releases on the Eurobond restructuring closely, there has been no acknowledgement of the small group of Ghanaian pensioners holding these bonds.

Instead, the focus has been on negotiations with international and commercial bondholders, who, unlike the pensioners, are better positioned to handle the severe financial terms of the restructuring.

Under the current restructuring plan, Eurobond holders face a 37% haircut, reduced interest rates, and significantly extended maturity dates of up to 10 years and beyond.

While institutional investors may have the capacity to absorb these losses, the pensioners argue that the terms are too harsh for individuals who had hoped to rely on their bond investments to support themselves in retirement.

For these elderly citizens, the returns from their Eurobonds were meant to provide financial security in their later years, especially to cover recurring medical expenses.

The pensioners have made several unsuccessful attempts to engage the government on their concerns, submitting letters to the Finance Ministry without receiving any response.

They argue that the restructuring’s adverse financial effects are unbearable, particularly after two years of zero-interest payments, which has already caused significant hardship.

“We, the affected pensioners, write to express our deep disappointment and frustration with this turn of events,” the pensioners stated.

“At our age, and being on retirement, the 37% haircut, reduced interest rates, and longer tenor will affect us adversely, resulting in significant financial losses which we can hardly afford.”

In light of the Finance Minister’s recent call for bondholders to accept the restructuring terms, the pensioners are pleading for exemption, citing their vulnerability.

They urge government to consider alternative solutions that do not further erode their financial stability.

Key among their requests are:

• Exemption from the Eurobond restructuring for pensioners and other vulnerable groups.

• Exploring alternative solutions that safeguard their financial security.

• Meaningful engagement with the government to discuss and address their specific concerns.

The pensioners stress that their numbers are small, and their request for exemption is a reasonable plea given their limited financial resources.

They are calling for the media and the public to take note of their plight and support their appeal for a fairer approach to the debt restructuring process.

Having exhausted other avenues, the pensioners have resorted to the media to highlight their predicament in hopes of finally being heard by the government and achieving a more equitable resolution to their situation.

The group has provided names and contact persons for follow-up responses, which they expect from government.

Source: Myjoyonline.com

READ ALSO:

• ‘I don’t know where they got their data from’ – Agric Minister questions Statistical Service food price report
• SSNIT pays GH¢400m monthly to over 300,000 pensioners to combat old-age poverty
• No need for fear and panic, we have enough LPG – NPA assures

The Ministry of Finance has assured it is on course to pay the $134 million judgment debt owed to Oil conglomerate Trafigura.

In a statement, the Ministry confirmed that the necessary steps had been taken to address the payment issues.

“We have made the necessary arrangements to pay off the outstanding claims agreed with Trafigura after several rounds of negotiations,” the statement read, reassuring the public that the government remains committed to honouring its obligations.

This follows a petition by Trafigura, expressing concerns and threatening to seize Ghana’s assets in South Africa if the $111 million arrears are not settled.

In the letter addressed to the Minister of Finance, Dr Adam Amin, Trafigura urged the government to finalise the settlement this week to avoid further legal action, emphasising their preference for an amicable resolution.

The company has already taken control of one of Ghana’s key commercial properties, Regina House in London, after the government failed to pay a $134 million judgment debt.

This debt arose from the termination of a power purchase agreement, which led to a legal dispute between Trafigura and the Government of Ghana.

 Read the Finance Ministry’s statement below:

ALSO READ:

• Trafigura petitions Finance Minister over $134m judgement debt

• $134m judgment debt : Trafigura ‘seizes’ Ghana’s Regina House in London

The company has already taken control of one of Ghana’s key commercial properties, Regina House in London, after the government failed to pay a $134 million judgment debt.

This debt arose from the termination of a power purchase agreement, which led to a legal dispute between Trafigura and the Government of Ghana.

For four years, Trafigura has unsuccessfully sought payment from the government, prompting it to secure a U.S. court judgment that awarded the company an additional $111.4 million in interest, which remains unpaid.

In its petition, the energy firm requested an immediate settlement and warned of further legal action to recover the funds if the government fails to comply.

The petition was submitted to the Finance Ministry on September 23, expressing frustration over the government’s delay in resolving the debt, despite multiple attempts at negotiation.

The origins of the debt date back to January 26, 2021, when a UK tribunal ruled that Ghana breached its contractual obligations by terminating a power purchase agreement with GPGC, a foreign power company, in 2018.

The tribunal awarded GPGC $134 million in damages, including interest and reimbursement of arbitration fees. Despite the ruling, Ghana made only partial payments, leaving a substantial balance outstanding.

In January 2024, GPGC filed a case in the U.S. District Court, seeking to recover the remaining debt under the New York Convention.

Ghana was served with the petition but failed to respond by the deadline. The court, citing Ghana’s waiver of sovereign immunity and commitment to international arbitration, ruled in favor of GPGC.

The court’s decision added post-judgment interest to the financial burden on Ghana, further complicating the country’s efforts to resolve the debt.

Source: Ernest K. Arhinful

The Ministry attributes this strong economic rebound to the government’s macroeconomic stability and growth initiatives under the IMF-supported Post-Covid-19 Programme for Economic Growth (PC-PEG).

“Overall real GDP growth for the first half of 2024 has shown a significant resurgence, with an average year-on-year growth of 5.8% for the period, a notable increase from the 2.9% recorded during the same period in 2023. This growth includes a 4.8% expansion in Q1 2024 and an impressive 6.9% in Q2 2024,” the statement highlighted.

The Ministry further explained that the 6.9% growth in the second quarter of 2024 is the highest quarterly GDP growth recorded in the past five years.

“Non-oil GDP growth for the first half of 2024 was also robust, recording a 5.6% growth rate, significantly higher than the 3.8% observed in the first half of 2023. This economic expansion was supported by Q1 growth of 4.3% and Q2 growth of 7.0%,” the statement added.

Read the statement below:

FOR: IMMEDIATE RELEASE  

GHANA ACHIEVES REMARKABLE ECONOMIC RECOVERY AMID GLOBAL CHALLENGES AND DEBT RESTRUCTURING PROGRAMME

Accra, Thursday, 19^th September, 2024….The latest GDP statistics released by Ghana Statistical Service (GSS) on Wednesday 18th September 2024, show that the Ghanaian economy is fast recovering amid global challenges and debt restructuring. The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that government is pursuing under our IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).

2. Overall Real GDP growth for the first half of 2024 rebounded strongly, with year-on-year GDP growth averaging 5.8% for the period, significantly higher than the 2.9% recorded in the same period in 2023. The 2024 first half-year growth of 5.8% is supported by a 4.8% expansion in the economy in Q1 2024 and 6.9% in Q2 2024.

3. The 6.9% growth recorded in Q2 of 2024 is the highest quarterly GDP growth recorded in the past 5 years.

4. Non-Oil GDP growth for the first half-of 2024 was equally robust with growth rate of 5.6%, significantly higher than the 3.8% recorded in the first-half year of 2023. The first half-year economic expansion is supported by Q1 growth of 4.3% and Q2 growth of 7.0%.

5. It is instructive to note that the 5.8% overall growth for the first half of 2024 is significantly higher than the 1.5% growth target for 2024 which was later revised to 3.1% during the 2024 Mid-Year Review of Fiscal Policy presented in Parliament in July 2024.  Given that Ghana completed its domestic debt restructuring programme in 2023 and is currently in the process of completing its external debt restructuring programme, the growth performance for the first half-year of 2024 is much higher than growth recorded by countries which have undergone similar debt restructuring programmes in the past. A case in point is Jamaica which recorded average real GDP growth of 1%-2% for about a decade post its debt restructuring.

6. All three sectors of the economy, namely Agriculture, Industry, and Services contributed to the robust growth recorded in the first-half of 2024:

1. The Industry sector recorded an average growth of 8.0% in H1 2024 up from the contraction of 2.0% recorded in H1of 2023. The 8% growth is supported by growth of 6.8% in Q1 and 9.3% in Q2. The sector’s strong recovery in the first half of 2024 was driven mainly by growth recorded in the following sub-sectors:
   1. 13.9% growth in Mining and Quarrying supported by 12.9% growth in Q1 and 14.8% in Q2;
   1. 9.9% growth in Oil & Gas supported by 13.8% growth in Q1 and 5.8% in Q2;
   1. 8.3% growth in Construction supported by 8.2% growth in Q1 and 8.4% in Q2; and
   1. 2.8% growth in Manufacturing supported by 2.0% growth in Q1 and 3.9% in Q2.
2. The Agriculture sector expanded by 5.0% in the first half of 2024 supported by Q1 growth of 4.7% and Q2 growth of 5.4%. The Agricuture sub-sectors that contributed the most to growth in the sector for the first half-year of 2024 includes:
   1. 5.6% growth in the Crops sub-sector underpinned by 5.0% growth  in Q1 and 6.4% in Q2;
   1. 4.7% growth in the Fishing subsector supported by 4.7% growth  in Q1 and 4.7% in Q2; and
   1. 4.7% growth in the Livestock subsector supported by 4.6% growth in Q1 and 4.7% in Q2.
3. The Services sector expanded by 4.4% in H1 2024 supported by growth of 3.2% in Q1 and 5.8% in Q2. The Services sub-sectors that contributed the most to the H1 2024 growth include:
   1. 15.3%  growth in Information and Communication underpinned by 17.9%  growth in Q1 and 12.8% in Q2;
   1. 7.4% growth in the Accommodation & Food Service Activities subsector supported by 7.9% growth in Q1 and 4.9% in Q2;
   1. 6.5% growth in the Financial & Insurance Activities subsector supported by 5.5% growth in Q1 and 7.6% in Q2;
   1. 3.4% growth in the Transport & Storage sub-sector  supported by 3.3% in Q1 and 3.6% in Q2;
   1. 2.9% growth in the Real Estate sub-sector supported by 3.9% growth in Q1 and 2.3% in Q2;
   1. 2.5% growth in the Professional, Admin & Support Service activities  sub-sector underpinned by 4.1% growth in Q1 and 1.9% in Q2; and
   1. 2.8% growth in the Trade, Repair of Vehicles, Household Goods sub-sector underpinned by 2.5% in Q1 and 3.2% in Q2.

7. Government will continue to prioritise the restoration and sustainance of macroeconomic stability which is necessary for the promotion of our inclusive growth agenda. It is expected that the implementation of government’s growth strategy including the Planting for Food and Jobs Phase 2 Programme, the SME Growth and Opportunity Programme, the 1 District 1 Factory Programme, the Economic Enclave Programme under the Ghana CARES Programme will further consolidate the gains we are making in economic recovery to improve the living conditions of the Ghanaian people.

END

Source: Adomonline

READ ALSO:

This response follows recent publications alleging that the government is engaged in restructuring debts with these entities.

In a statement released on Monday, the MoF clarified, “The Ministry categorically denies any such restructuring being considered, either during or after the domestic debt restructuring program, which began in December 2022 and concluded in October 2023.”

The Ministry explained that during the Monthly Press Briefing on the Economy held on August 29, 2024, a question about external commercial debt restructuring was misinterpreted, leading to reports that obligations to local contractors would be restructured.

“To clarify, debt restructuring pertains to reorganizing Ghana’s debt portfolio, which consists of loans and bonds. Liabilities to domestic contractors are payment claims, not loans or bonds, and therefore are not subject to restructuring,” the statement emphasized.

The MoF also noted that it has never engaged contractors in debt restructuring discussions, a fact confirmed by contractors in a recent interview with JoyNews.

“The Domestic Debt Exchange Programme (DDEP) covered only domestic bonds held by the Central Bank, Pension Funds, and retail debt investors, and did not include payments to contractors.

“Following the DDEP, the Ministry has made significant strides in external debt restructuring, including finalizing an MOU with the Official Creditor Committee under the G20 Common Framework, launching the Consent and Exchange Solicitation process for Eurobond debt, and engaging with external commercial creditors to reach a resolution soon,” the statement concluded.

Source: Adomonline

READ ALSO:

• T-bills auction: Gov’t target falls short again; interest rates up marginally
• Government borrowing on domestic market too high – IEA
• Over 100,000 acres of Cocoa farms destroyed by illegal mining – Farmers demand action

After successfully negotiating a deal with its bilateral and Eurobond holders, the government has now turned its attention to private banks and suppliers.

The negotiations with these creditors who form part of the country’s commercial creditors are aimed at providing some debt relief to the country.

Responding to a question from the Graphic Business at its monthly economic update, Minister of Finance Dr Mohammed Amin Adam said the government has sent an offer through its advisors.

He said the government has also engaged physically with these creditors in Ghana and China.

“We visited China and we engaged some of them. We have also engaged some here in Ghana and we have shared our offer with them for their consideration.”

“Hopefully, they will accept the terms that we are offering to them,” he stated.

Eurobond holders

This comes weeks after the government’s deal with Eurobond holders to restructure a $13 billion debt.

The deal with holders is expected to lead to a debt cancellation of $4.7 billion and debt service relief of $4.4 billion between 2023 and 2026.

It also comes months after the government formalised its agreement with bilateral creditors to restructure its $5.1 billion debt. This deal is also expected to result in a debt service relief of $2.8 billion between 2023 to 2026.

The government has also concluded negotiations with five of the seven Independent Power Producers, which will lead to a saving of some $6.6 billion over the lifetime of the Purchasing Power Agreements (PPAs).

Dr Amin Adam said the government would in the coming days launch the exchange offer for its Eurobonds.

He said the exchange offer, which would be opened for 21 days, reflected the terms agreed in principle with bondholders on 24th June including important concessions from bondholders, ensuring a fair burden sharing between domestic, official and commercial external creditors.

“We count on the full support of our bondholder community, both abroad and in Ghana, to reach high participation levels.”

“We expect that all of our outstanding bonds will be exchanged for our new bonds where investors can choose between two options: a PAR option – with no nominal haircut but low interest rates, and a Disco option with a 37% nominal haircut but higher interest rates,” he stated.

Strategic infrastructure

The minister said the government had taken steps to ensure the completion of strategic infrastructure that has been impacted by the debt operations.

“Our efforts have enabled us to complete the Prempeh (I) International Airport, Afari Military Hospital in Kumasi as well as the Yakubu Tali International Airport in Tamale.”

“This week, the President cut sod for the Accra-Tema Motorway redevelopment project. Two (2) days ago, I also visited the Kasoa-Winneba Road, which is being fully funded from the national budget,” he mentioned.

He said the government was also working with its partners to implement the Economic Roads Improvement Programme, which includes the Accra-Kumasi Road.

He said that was part of a broader strategy to open up the country for trade, tourism and regional integration.

Third review

The minister also announced that the government was currently preparing for the third review of the IMF-supported Programme after successfully concluding the second review of the programme on June 28, 2024.

For the third review, the IMF has programmed a staff mission for the period September 24 to October 4, 2024, to, among others, assess the performance of the country about the performance targets agreed with the fund under the programme.

The review will assess the six Quantitative Performance Criteria (QPCs), four Indicative Targets (ITs), and a number of
Structural Benchmarks (SBs) are due by the end of June 2024.

Dr Amin Adam said preliminary data for the first half of 2024 indicated that the counter was on track to meeting the targets for the 3rd Review.

It is expected that the IMF Executive Board will consider Ghana’s 3rd Review for approval by the end of December 2024, which will enable the Board to immediately disburse the 4th Tranche of US$360 million, bringing the total disbursements to US$1.92 billion.

World Bank support

The government is currently in a US$900 million Development Policy Operation (DPO) Programme with the World Bank for a period 3 years to support the budget and the implementation of key reforms aimed at restoring fiscal and debt sustainability, supporting financial sector stability and private sector development, improving energy sector operational and financial performance, and fostering resilience to shocks and climate change.

Dr Amin Adam said following the achievement of the first set of reform actions, the first tranche of financing under the DPO amounting to US$300 million was disbursed by the World Bank in March 2024 to support the budget.

“Government is currently implementing the second set of reform actions that will result in the disbursement of the second tranche of the funding under the DPO series.”

“Significant progress has been made by all implementing MDAs towards the achievement of the reform actions. Five out of the 10 actions under DPO2 have been achieved, with the remaining at various advanced stages of completion,” he said.

He said there were, however, four legislations pending Parliamentary approval that were critical to the approval and disbursement of the second tranche of the DPO series.

These are the Social Protection Bill, the Environmental Protection Authority Bill, the Amendment to the GIPC Act (Act, 865, 2013), and the LI on Independent power purchase.

“We are working with Parliament with the expectation that all these outstanding legislation will be passed by the House during the recall to help fast-track the achievement of all actions necessary for the disbursement of the next tranche of US$300 million,” he said.

Source: Graphic Business

ALSO READ:

• COCOBOD attributes profit to impact of debt restructuring of cocoa bills

• We mustn’t downplay the importance of debt restructuring – Danquah Institute

This was during their protest at the Ministry on Wednesday, September 4 over alleged financial mismanagement under the Akufo-Addo-led government.

However, the cause of the chaos is not immediately known.

The group’s action is to demand accountability and the recovery of funds allegedly misappropriated in questionable transactions.

The group said their action has been prompted by opaque deals, including the US$34.9 million Ambulance Spare Parts contract, the GRA-SML deal, and expenditures related to the All-African Games.

Emphasising the need to restore public confidence, the members are calling for a thorough investigation into these transactions to ensure that public funds were used appropriately.

They are also demanding full disclosure of the expenditure for the 2023 All-African Games.

ALSO READ:

• NDC Youth group to picket at Finance Ministry

• Akufo-Addo directs Finance Ministry to raise GH₵8bn to deal with dry spell

In response, the government has mobilized funds, temporarily banned grain exports, and prioritized grain imports.

Finance Minister, Dr. Mohammed Amin Adam announced that the government has secured a $1 million insurance policy to safeguard smallholder farmers in the northern region against future droughts. The policy guarantees a $5 million payout in the event of a drought.

“The government has purchased an insurance policy against future droughts in the northern region. We are paying a premium of one million dollars, with a potential payout of five million dollars if we experience a drought. This will cover smallholder farmers in the northern region,” he stated.

Minister for Food and Agriculture, Bryan Acheampong defended the government’s request to withdraw GHS 500 million from the contingency fund, explaining how the funds will be allocated as part of the total GHS 8.3 billion required.

The money will be used for seeds and fertilizers, feed grants, cash transfers, rice and maize imports, and poultry feed.

“We have a commitment of 500 million from the contingency fund, and we will allocate it accordingly. Not in equal proportions, as some items are being imported. Whatever we receive from the agreed budget, contingency fund, and other Ministry allocations, we’ll distribute to address the situation.”

Chair of the Finance Committee of Parliament, Patrick Boamah, assured that the funds would be promptly approved once all release criteria are met, despite concerns raised by the Minority.

Source: Adomonline

READ ALSO:

• GIBA president decries emergency handling of Broadcasting Bill; says it’s unfair
• Dry Spell: Peasant Farmers Association frustrated over govt’s export ban [Audio]
• Minority questions Minister’s request for GH₵500m from Contingency Fund to combat dry spell

The action is to demand accountability and the recovery of funds allegedly misappropriated in questionable transactions under the NDC’s Operation Recover All Loot Brigade (ORAL).

The convener of ORAL, Osman Ayariga explained that, the picketing is to kickstart series of planned actions at various public offices.

The group said their action has been prompted by opaque deals, including the US$34.9 million Ambulance Spare Parts contract, the GRA-SML deal, and expenditures related to the All-African Games.

Emphasising the need to restore public confidence, Mr Ayariga and the ORAL members are calling for a thorough investigation into these transactions to ensure that public funds were used appropriately.

“In view of the Oral objectives, we are organizing a picketing at the Ministry of Finance and subsequently at the Jubilee House and any government establishments involved or suspected to be involved in corruption or corruption-related matters to demand immediate and decisive action regarding several troubling financial improprieties that have recently come to light.”

“As a result, on the 4th of September, the Oral Brigade will be assembling at the Ministry of Finance to voice our demands and ensure that our concerns are heard. Again, our purpose is to urge the Minister for Finance to take immediate action to investigate these matters thoroughly, halt any questionable payments, and recover funds where necessary,” he stated.

They have vowed to continue to occupy and picket government establishments suspected of corruption until their demands are met.

“We believe that this picketing is vital to restore public confidence in our financial management system, to reinforce the principle that public resources must be managed with the highest levels of integrity and transparency.

“This is just the first and beginning of many planned protests by the National Conscious Oral Brigade aimed at demanding accountability in public financial management,” he added.

ALSO READ:

• NDC’s 24-hour economy mere slogan – Former NPP Chairman [Audio]

• NDC MP’s 16 billboards, 25K posters destroyed in Cape Coast North constituency [Audio]

This allocation is part of a larger GH¢1.5 billion fund approved by the Cabinet to compensate customers whose funds were locked up, including those affected by the collapse of Blackshield Fund Management Company.

During a press briefing, Dr Amin Adam revealed that the GH¢700 million has been processed and is ready for disbursement by the Securities and Exchange Commission (SEC) to the affected customers.

“I am pleased to inform you that the Ministry of Finance has processed the release of the first tranche of GH¢700 million out of the additional GH¢1.5 billion for SEC to further support the remaining Asset Management Companies (AMCs), including Blackshield Fund Management Ltd. Yesterday, I instructed the Controller and Accountant-General to release the funds to alleviate the stress on the affected individuals,” he stated.

He further explained that, the payment schedule was outlined in the 2024 Mid-Year Review of Fiscal Policy presented in July 2024, where the Cabinet granted approval for the disbursement.

Dr. Amin Adam noted that, the GH¢1.5 billion will be disbursed in three tranches.

He highlighted that this payment will bring the number of fully settled investors under Blackshield to 82,096, representing 92%, and 12,069, representing 78% of the remaining fund management companies.

“This intervention will bring the total number of investors fully settled under the bailout scheme to 94,165 (representing 90%) out of the total validated claims of 105,178. This effort, despite the tight fiscal space, demonstrates the Government’s commitment to providing relief to investors of the defunct AMCs, particularly pensioners,” he added.

Source: Adomonline

READ ALSO:

• Ministry of Finance to introduce 36 double taxation agreements
• Total value of secured loans by banks, SDIs in quarter 2, 2024 estimated at GH¢10.8bn
• Ghana ranked 2nd most attractive country in SSA in power supply – Fitch Solutions

He pointed to the recent request by the Finance Minister to withdraw GH¢500 million from the Contingency Fund as evidence of poor governance.

“After prioritizing corruption, waste, and empty slogans over the proper management of the economy and agriculture sector, the failed NPP government has driven our nation to this low point,” he stated.

This statement follows a letter from the Ministry to Parliament’s Finance Committee, seeking approval for the amount to mitigate the potential impacts of drought in eight regions.

The Ministry informed the Committee that the government cannot fully fund the required GH¢8.36 billion, as directed by the President, solely by reallocating existing budget lines in the 2024 budget.

Therefore, the request is intended to “complement this withdrawal, as the government mobilizes support from development partners and realigns approved fiscal operations in the 2024 budget.”

In a response dated August 28, Sammy Gyamfi said “This is the same administration that spent a staggering $58 million (GHS928 million) on digging the world’s biggest pit under the pretence of building a cathedral.”

He argued that, the government has wasted considerable resources on initiatives that do not benefit the citizens.

“Despite wise counsel, they splurged millions of taxpayers’ money on renting luxury private jets so the President could enjoy lavish comforts in the skies. They also recklessly spent millions on other frivolous expenditures at the presidency, as if there were no consequences,” he added.

Find the full statement below:

After prioritizing corruption, waste and empty sloganeering over prudent management of the economy and the agriculture sector, this is how low the failed NPP government has sunk our dear country.

Our dear nation has been rendered bankrupt such that today, the government cannot even afford GHS500 million to address the imminent food crises the nation is faced with.

This is the same government that spent a whopping $58 million (GHS928 million) on creating the biggest pit in the world under the guise of building a cathedral.

Against wise counsel, they wasted millions of taxpayers money on the rental of luxury private jets so the President could bath in the skies. They squandered millions of taxpayer money on other useless expenditures at the Presidency like there was no tomorrow.

Today the chickens have come to roost.

This is how low we have sunk as a country after all the sweet mouth-watering rhetorics about “One Village one Dam”. This is how low we have sunk after the NPP government spent a colossal GHS3 billion on their much-touted “Planting for Food and Jobs” program.

Oh, what a shame; what a disgrace!
Cry, my beloved Ama Ghana, cry!!!!

SAMMY GYAMFI ESQ.

Source: Adomonline

READ ALSO:

• Charging Ghanaians to check names on voters’ register illegal – NDC
• NDC accuses EC of inflating voter register by over 3,000 in Ajumako Enyan Essiam
• NAPO slams NDC’s “reset” Agenda

The amount is for implementing the Emergency Response Programme to address the impending food security crisis amidst the dry spell experienced in eight regions of Ghana.

This was contained in statement signed by Dr Amin and addressed to the Finance Committee of Parliament.

“Considering that we are eight (8) months into the implementation of the 2024 Budget and the proposed interventions are unplanned expenditure occasioned by a “force majeure”, Government cannot fund the request of GH¢8.36 billion solely from a reallocation of existing budget lines in the 2024 Budget,” the statement read in parts.

The request follows President Akufo-Addo’s directive for the Ministry to raise GH₵8 billion relief package to assist farmers.

“In light of the foregoing, we write to request approval from the Finance Committee for the withdrawal of GH¢500 million from the Contingency Fund, in accordance with Article 177 subsection 1 of the 1992 Constitution, Section 36 subsection 1 of the Public Financial Management Act, 2016 (Act 921) as well as Section 227 subsection 1 of the Standing Orders of Parliament of Ghana,” it added.

This amount is expected to “complement this withdrawal, as government is mobilizing support from Development Partners as well as realigning approved fiscal operations in the 2024 Budget.”

Meanwhile, the Minister for Food and Agriculture, Bryan Acheampong has announced an immediate ban on the export of key grains, including maize, rice, and soybean.

ALSO READ:

• Akufo-Addo directs Finance Ministry to raise GH₵8bn to deal with dry spell
• How farmers can benefit from GH₵8 billion dry spell relief package [Listen]

The Finance Minister, Dr Mohammed Amin Adam disclosed this at a press briefing on Monday.

The relief package will include cash transfers, food supplies, and other essential items for the affected farmers.

A technical task force, comprising officials from the Ministries of Finance and Food and Agriculture, will oversee the distribution to ensure fairness and accountability.

“Our response may not entirely neutralise the extent of the problem. But our response certainly will help in stabilising the situation until we get out of the crisis. And so, as the Minister for Food and Agriculture said, we are seeking to raise about $500 million, the equivalent of GH₵8 billion, to fund the crisis response programme,” he stated.

Expressing worry over the phenomena, Dr Amin said the funds are to be raised at a time when the buffers are almost depleted.

“This is difficult but we have to raise the funds. As a responsible and sensitive government as we are, the President has directed that we do everything within our power to find the money and fund the government response,” he added.

Giving the sources of the relief package, the Minister explained government has been able to secure up to $160 million which is about GH₵2.5 billion from the contingency fund.

Additionally, GH₵2.4 billion will come as support from development partners, including the World Bank.

For the assistance from the World Bank, Dr Amin noted its primary focus would be cash transfers and the provision of agricultural inputs to aid recovery efforts while that from the contingency vault will be used to bring in more grains to provide relief to farmers.

“So out of the GH₵8 billion we are seeking to mobilise, we can say that we have visibility of about GH₵5 billion that we want to use quickly to respond to the crises,” he added.

Preliminary assessment has revealed massive destruction of farm crops in the Bono, Bono East, Oti, Northern, North East, Savannah, Upper-East, and Upper-West regions

The prolonged lack of rain has left farms parched and crops withered, endangering the livelihoods of farmers and posing a serious threat to food security in the northern regions

It has also led to wilting crops and significantly reduced harvests, forcing many farmers to abandon their fields altogether.

Source: Adomonline.com

ALSO READ:

• Farmers count their losses as dry spell jeopardizes crop yields

• Agric Minister reveals massive destruction of farm crops in 8 regions due to dry…

The unions involved in this potential strike are the Senior Staff Association-Universities of Ghana (SSA-UoG), the Federation of Senior Staff Associations of Ghana (FUSSAG), and the Teachers and Educational Workers Union of the Trade Union Congress (TEWU-TUC).

These groups have expressed concerns over the Finance Ministry’s delay in issuing a letter to effect the payment of the Vehicle Maintenance Allowance (VMA) and other related allowances.

In a statement dated Monday, August 5, the unions issued an ultimatum to the government, demanding that the allowances be settled by August 8, or they would embark on a strike the following day.

They emphasized the urgency of the situation, highlighting their frustration with the government’s inaction.

The unions accused the government of employing Machiavellian tactics to deny them their rightful dues.

They stressed that their patience had worn thin and that they were prepared to take necessary action to ensure their demands are met.

The unions reiterated their commitment to protecting the rights and welfare of their members, urging the government to act swiftly to avoid disruption.

They called on the Ministry of Finance to honour its commitments and avoid the impending industrial action.

“The Unions have given the government (Ministry) up to the close of work on Thursday, August 8, to release the letter. Failure to do so will result in the Unions being forced to take industrial action on the 9th of August 2024. The SSA-UoG, FUSSAG, and TEWU (TUC) are committed to fighting for the rights of their members and will not rest until justice is served.”

“The Fair Wages and Salaries Commission has done what is needed by writing to the Ministry of Finance for payment to be effected. We have tried to engage the Ministry on several occasions to release a letter to that effect so our members could be paid, but the Ministry has refused,” an excerpt of their statement said.

This comes in response to calls from the Minority in Parliament and sections of the public for the government to scrap taxes like the COVID levy and e-levy to alleviate the financial burdens on Ghanaians due to the high cost of living.

Addressing the issue at the Public Accounts Committee hearing on Wednesday, July 24, Madam Osei Asare emphasised that although the pandemic may be over, the government still needs to finance COVID-19 vaccines to build citizens’ immunities.

“COVID is no more, but we still feel the impact of COVID. There are many things that we did during COVID-19 that we are now having to take care of,” she explained.

Asked when the COVID levy would be discontinued, she could not provide a specific timeline. She however, noted that when the tax was introduced in Parliament, it was agreed it would be subject to a review after a certain period.

“What I know is that COVID-19 vaccines are still in the system and, Mr. Chairman, they are not for free. We still have to service the 10 million bond loans we took from the Bank of Ghana.”

The leader of the Movement for Change, Allan Kyerematen has also called for the abolition of the COVID-19 levy and the Ghana Health Service disinfection fee during the launch of his Great Transformation Agenda.

He questioned the relevance of these fees in 2024, asking, “How can we be collecting COVID fees and disinfection fees in 2024?”

Additionally, he outlined plans to phase out taxes and charges on imported spare parts within two years if his administration is established under a government of National Unity.

ALSO READ:

• We want to see a stable cedi – GUTA President
• MIIF targets 1000 Women in Engineering and STEM with mining scholarships

His response came after Dr. Ato Forson criticized the introduction of new taxes during the 2024 Mid-Year Budget Review, arguing that they had worsened the economic situation and deterred investors.

Dr. Amoah dismissed these claims as “intellectual dishonesty,” attributing them to political motivations rather than factual analysis.

Dr. Amoah argued that, tax policies are complex and are adjusted based on economic conditions.

“Taxes are a primary source of revenue for the government, and with only 2 million out of 34 million Ghanaians paying direct taxes, the tax base is insufficient to meet the country’s financial needs. This results in a deficit that the government must address,” he said.

Dr. Amoah emphasized that, the government has implemented measures to reverse negative economic trends and foster growth.

“We have put initiatives in place amounting to approximately 8.2 billion cedis to support the growth of SMEs and create sustainability in the job sector,” he  stated.

The Deputy Minister further called for a focus on common national interests rather than politicizing economic issues.

“We need to define common interest and stop politicising everything” he added.

Listen to the Deputy Finance Minister below:

READ ALSO:

• Mid year budget review: Government is bereft of ideas – Minority Leader [Video]
• You did nothing to reverse negative trend; scrap the taxes – Ato Forson to government

The Ministry clarified that, since the programme is overseen by the Office of the President, all grievances should be directed to that office.

In a response dated July 11, the Finance Ministry advised the trainees to submit any additional documentation that could support their claims for payment.

The Ministry stated that, once these documents are reviewed and validated, the outstanding payments will be processed.

It emphasized the importance of following proper channels to address financial issues related to the NABCo programme and outlined the procedural steps necessary to resolve payment delays.

According to her, the amount was committed by the ministry to ensure that the National Cathedral project had the necessary funding.

Addressing Parliament on July 3, she said “From the onset the Ministry of Finance mentioned that our contribution to the National Cathedral would be the land and some seed money and this was in the previous year’s budget.”

Although the project has stalled for months and still at the foundation level, she assured that there has been value-for-money per an audit of the project so far.

“Value-for-money audit was done on the project in 2021.

“Statutory audit of the National Cathedral of Ghana’s accounts by Deloitte Ghana was started began in July 2023 and is ongoing.”

“The auditors have concluded the audit for the 18 months accounts ended December 31, 2020. Preparations are in place for the auditors to complete the remaining accounts for the years ending December 31, 2021, 2022, and 2023.”

Madam Asare emphasized that records exist showing how much has been paid for the project, asserting that the process is transparent.

This demonstration is aimed at demanding the release of their locked-up funds from NDK Finance and three other deposit-taking institutions.

The group indicated that their persistent requests to meet with the Finance Minister, Dr. Mohammed Amin Adam, or his deputies to discuss their demands have yet to materialise.

Speaking to JoyNews, the group leader, Dr. Adu Anane Antwi said that they are demanding the Bank of Ghana (BoG) and Finance Ministry declare as insolvent and revoke the licenses of four deposit-taking institutions that have failed to release their funds to them.

“We will be picketing every Wednesday until our demands are met. The demand is for the Ministry of Finance to make financial provisions to enable the Bank of Ghana to revoke the licenses of four insolvent financial institutions namely NDK Financial Services, SIC Life Savings and Loans, Bond Savings and Loans and SDC Financial Services,” he told Kenneth Gyasi.

He explained that the BoG has indicated these banks have become insolvent and their licenses need to be revoked.

According to Dr Antwi, the BoG requires the Ministry of Finance to make financial provisions before revoking the licenses to ensure that deposited funds can be paid back.

“Our demand is that the Bank of Ghana is waiting for the Ministry of Finance to make financial provisions so that they can revoke the licenses of these four institutions and pay deposited just as they did in 2017.”

Dr. Antwi maintained that the bondholders forum will continue to picket the Finance Ministry until they receive a clear response on what measures are being taken to address their demands.

She disclosed this to Joy Business on the side-lines of the AFREXIM Bank Annual Meetings in Nassua Bahamas.

She made the pledge after inflation for May 2024 declined to 23.1 percent from the 25.0 percent recorded in April 2024.

“Government is committed to working with the Bank of Ghana to ensure that things do not get out of hand, in the area of slowing inflation to hit the end of year target”, she said.

She stated that government is collaborating with the Bank of Ghana to support the monetary policies of the central bank with prudent fiscal policies to achieve price stability.

“Some measures that the Bank of Ghana has implemented are already getting the required support and we are also committed on the fiscal side to consolidate the gains made”, she reiterated.

“We have all seen how high inflation rate impacted badly on the economy and we are committed to making sure that we don’t get there again” she added.

Inflation rate developments

Inflation rate dropped from 25 percent in April 2024 to 23.1 percent in May this year, the lowest in 26 months.

According to the Ghana Statistical Service, the slowdown in the May Inflation rate can be linked to favourable developments on the food component of inflation.

The Bank of Ghana is projecting inflation to end the year at a lower band of 13 percent and a higher band of 17 percent.

Madam Osei Asare noted that, government’s intervention in the agriculture sector is beginning to show in the reduction of food inflation.

She pledged that government will do everything on the fiscal side to ensure that inflation declines further.

Debt deal with bilateral creditors

Madam Osei Asare revealed that government will now be turning its attention to individual countries after getting a deal with bilateral creditors.

“We should not forget that we now have a broad framework at the Official Creditor Committee level. That is good to guide our engagement with each bilateral country”, she said.

Describing the development as a positive step, Madam Osei Asare said government is expecting more donor partners to support the country.

“We expect more donor partners to react positively with some fresh funding to support the recovery of Ghana’s economy, and also some of the projects that have stalled because of these negotiations”.

ALSO READ:

• Abena Osei Asare leads Ghana’s delegation to Afreximbank AGM

• 2024 polls: We’ll control our expenditure – Abena Osei-Asare

The gesture, the Ministry explains, is its contribution to the Heal Komfo Anokye Project.

It is in response to an appeal from the project for an import duty tax waiver on items meant for the renovation of the hospital.

The project topped the donation up with about GH¢600,000  to clear the 10 containers from the Tema Port meant to rehabilitate the KATH.

Recall

In April this year, the management of KATH appealed to the government through the Ministry of Health for a waiver on all imported items meant for the Heal Komfo Anokye Project.

At the time of the appeal, the project had taken delivery of 10 containers of hospital tiles with an import duty amounting to a little over GH¢1.70 million cedis.

Following the appeal, the Ministry of Finance donated the cheque for more than GH¢1.20 million to the KATH to enable it to clear the tiles before they attracted demurrage.

The Heal Komfo Anokye Project is one of the legacy projects marking the 25th anniversary of the enstoolment of the Asantehene Otumfuo Osei Tutu II.

The project intends to raise a total of $10 million to give the 70-year facility a facelift befitting the status of a tertiary facility.

Support

The Chairman of the Project Committee, Samuel Adu-Boakye, in an interview with the Daily Graphic expressed his appreciation to the ministry for the timely intervention which enabled the project to clear the goods on time.

He said even though they did not get the waiver they expected, the support from the ministry had greatly assisted the project “and we are grateful for the support.” He was also grateful to corporate Ghana and all those who had so far donated towards the project.

“To have raised close to $4 million within five months was no mean achievement, particularly when things are not looking that good in the country”, he said.

Currently, he said the project had been able to achieve about 41 per cent of its target of $10 million and appealed to corporate Ghana and individuals to help the committee achieve its objective.

“We know the government must do what we are doing but we all know government alone cannot do it and we need to support it with our widow’s mite.”

Donors

So far, 15 companies, five financial institutions, eight churches and one telecommunication company have made contributions towards the project.

“The number of individuals who have contributed through the mobile money platform is yet to reach 1000 with the donation ranging from 50p to GH¢1200.00,” he said.

Challenge

Mr Adu-Boakye explained that the challenge of space to move the patients and allow the contractor to work was affecting the pace of work at the facility.

He said the hospital was operating almost at full capacity alongside the renovation and this “is affecting the pace because we don’t have anywhere to move the patients to allow for unimpeded pace of work.”

ALSO READ:

• Asenso-Boakye donates GH¢100k to support ‘Heal Komfo Anokye Project’

• Freemasons make grand donation towards Otumfuo’s ‘Heal Komfo Anokye Project’

These measures, he said, include fast-tracking the fiscal consolidation process through rationalizing spending and enhancing revenue mobilization; intensification of the gold-for-oil programme, and the appropriate foreign exchange interventions by the Bank of Ghana.

Others include the intensification of the gold for reserve programme; the disbursements of the 3rd tranche under the 2nd Review of the International Monetary Fund-supported PC-PEG after the IMF Executive Board approval in June 2024; the disbursement from other ongoing projects including the $150 million World Bank loan; the expected disbursement of $300 million under the World Bank DPO2, possibly in the 3rd quarter of 2024; among others.

“We wish to assure Ghanaians that there is enough foreign exchange supply. Hence, there is no need to rush and buy forex”, the Minister said.

He mentioned that the fiscal consolidation programme is holding, as primary balance on commitment basis improved by about 4 percentage points to a deficit of 0.3% of Gross Domestic Product (GDP) at the end of 2023.

Preliminary fiscal data for quarter one 2024 showed that the primary balance (on a commitment basis) was a deficit of 0.6% of GDP, against the deficit target of 0.2% of GDP. This was largely on the back of delays in the implementation of some of the 2024 revenue measures approved for the 2024 Budget.

“We plan to fast-track revenue mobilisation in subsequent quarters to enable us to achieve our primary balance target of a surplus of 0.5% in 2024 and 1.5% of GDP in the 2025-2028 period”, Dr. Amin-Adam stated.

In addition, he said “We are working to restore debt sustainability by 2028. The Public Debt trajectory is already showing signs of improvement, as the debt-to-GDP ratio reduced to 71.4% of GDP at the end of 2023 from 73.5% of GDP at the end of 2022”.

The cedi has come under severe pressure in the past eight weeks, losing almost 20% in value to the US dollar.

It is presently going for about GH15.02 to the dollar on the retail market.

ALSO READ:

• Cedi depreciation pressures slowdown on improved foreign exchange liquidity
• Cedi depreciation shot up cement prices – COCMAG

Emphasising the positive trajectory, Dr Adam noted a significant decrease in inflation in recent months, signalling a promising path towards economic recovery.

Dr Adam expressed optimism that inflation would continue its downward trend, projecting a considerable reduction by the end of the year.

He attributed this positive outlook to the pragmatic policies implemented by the government aimed at revitalizing the Ghanaian economy and alleviating the hardships faced by citizens.

Highlighting the effectiveness of these policies, Dr Adam cited available data indicating a speedy rebound of the economy.

He stressed the government’s unwavering dedication to sustaining this momentum, ensuring continued progress and prosperity for the nation.

“The economy is rebounding strongly, and I can tell you as manager of the economy that our recovery is really strong. We face serious challenges, but the future is looking brighter and brighter.”

“As a result of the policies we have implemented, economic growth has become more robust than ever anticipated. Projected to grow at 1.5% last year [2023], we grew at 2.9%.”

“The signs of growth we’re seeing from the data also show that this year will be strong, and so, when I say the economy is strong, I mean it. Inflation has also been on the decline, from a peak of 54% at the end of 2022, and 12 months later, it came down to 25%.”

“We are working to ensure inflation reaches 15% by the end of this year. And by the end of 2027, inflation comes with a single digit,” he said.

ALSO READ:

• ECOWAS Bank to inject $200m into Ghanaian economy

• The worst is over for Ghana’s economy – IMF Mission Chief

The demonstration aims to pressure the Minister of Finance to allocate funds for the Bank of Ghana to revoke the licenses of insolvent finance houses and savings & loans companies and pay depositors their funds.

In a May 13 statement, the forum, recounted previous efforts to retrieve their locked-up funds which have been fruitless.

Despite staging a public protest and submitting a petition to the Minister of Finance in March and April, respectively, they are yet to receive a response.

“On 28^th March 2024, we sent a petition to the Minister for Finance appealing to the Minister to provide funds for the payment of depositors’ funds with the insolvent Finance Houses and Savings & Loans Companies to enable Bank of Ghana to revoke their licences and pay depositors, in line with the Government’s commitment to protect depositors’ funds. We sent a reminder to the Minister on 18^th April 2024, but still have not received any response from the Minister.”

The convener of the forum, Dr. Adu A. Antwi expressed disappointment at the lack of government action and emphasized the urgency of their demand.

As a result, they have scheduled a picketing exercise at the Ministry of Finance starting from 9 am.

The demonstrators will march from NDK Financial Services to the Ministry’s premises, using designated routes, and will disperse at 12 noon.

They plan to continue picketing every Wednesday until their demands are met.

Speaking at a press conference following the Spring Meetings in Washington on Sunday, April 21, 2024, Dr. Adam emphasised the significant improvement in Ghana’s economic indicators.

The Karaga MP noted that the primary deficit, which stood at 4.3% of the Gross Domestic Product (GDP) at the end of 2022, had decreased substantially.

By the end of 2023, Dr. Adam highlighted that the primary deficit had reduced to a mere 0.3%, marking a remarkable four-percentage point decrease.

He expressed optimism, anticipating a surplus of 0.5% of GDP by the end of the current year, with further growth to reach 1.5% of GDP by the following year.

Dr. Adam underscored the positive trajectory of Ghana’s economy, attributing it to the government’s efforts in implementing sound economic policies and fostering an environment conducive to growth.

He also credited the resilience and hard work of Ghanaians for contributing to the country’s economic recovery.

“For example, the primary deficit by the end of 2022 was 4.3% of GDP. By the end of 2023, the primary deficit had reduced to just 0.3% which is about 4 percentage point decline in the primary deficit. We are expecting to end this year with a surplus of 0.5% of GDP and then next year to 1.5% of GDP.”

“And so Progress is good, recovery is strong, and we are heading very quickly to stabilisation which is what we need to generate growth,” he said.

ALSO READ:

• Isaac Adongo dismisses IMF’s ‘positive’ assessment on Ghana’s economy

• Ghana’s economy to slowdown in growth in 2024 – World Bank

Speaking on Adom FM’s Burning Issues, the convener of the Locked-up Investment Holders Forum questioned why they would be snubbed despite an assurance by the Minister.

To the former Director-General of the Security and Exchange Commission (SEC), they were treated as school boys which was not to be the case.

“Everybody we had to meet was duly informed. I personally submitted a letter to the BoG secretary and the Ministry of Finance’s secretary just last Friday.

“So it was quite surprising we were turned away and the minister also didn’t make any arrangements for a representative to meet us even if he wasn’t available. We are not school boys but aged people who have served the nation. Some are even sick but we all left our homes to come and see you,” he bemoaned.

The group on Wednesday hit the streets of Accra again to mount pressure on the Bank of Ghana (BoG) to resolve issues related to investments locked up in financial institutions it has licensed and regulating.

They wielded placards with inscriptions of their plight, lamenting the central bank has not demonstrated good faith and urgency in the matter.

However, they could not submit their petition to the Finance Minister, Dr Mohammed Amin Adam as the security guards would not allow them inside the premises.

ALSO READ:

• Locked-up Investment Holders hit the street [Video+Photos]

• Locked-up Investment Holders protest to demand payment of fund

The Bekwai MP has also demanded a comprehensive report by the same timeline.

The message of caution follows concerns raised by Ho Central Member of Parliament (MP), Benjamin Kpodo over the Ministry’s GH¢6 billion outstanding debts due to irregular fund disbursements.

Deputy Finance Minister, Abena Osei-Asare pledged the government’s commitment to settling these arrears, but Mr Osei-Owusu insisted on tangible evidence and a reconciliation of financial figures.

He emphasised the need to promptly resolving the arrears to ensure that the financial needs of the assemblies are met efficiently.

“I have listened to the Minister of Finance designate but I want to see evidence and be satisfied that the figures put out by Kpodo and the Ministry of Finance have been reconciled and we can put our hearts to it that these are the exact figures, otherwise, we will have to stand against the Ministry of Finance. Because when it comes to the Common Fund, we must assert our authority as a House.

“So, we are looking forward to a report and I hope that by the end of June, we will have a report and all the arrears will be available and the assemblies will get sufficient funds,” he stated.

ALSO READ:

• Gov’t owes Common Fund over GH¢6bn – Ho Central MP alleges

• Common Fund administrator borrows to pay assemblies -NPP MP alleges

According to him, this is due to the delay in releasing funds by the Finance Ministry.

Speaking during a parliamentary session on the proposed formula for distributing the DACF for year 2024, the legislator said the Ministry of Finance’s failure to disburse the common fund quarterly violates the Constitution.

“The Ministry of Finance has been violating the Constitution. Article 252(2) clearly states that the disbursement should be done on a quarterly basis, which they were not doing. As we speak now, the Common Fund is owed some GH¢3.5 billion over the past two years.”

Mr. Kpodo, who is also a Deputy Ranking Member on the Local Government Committee of Parliament, added that “For 2023, the debt has again risen by another GH3 billion. So, I don’t know where the Ministry of Finance is keeping the money meant for the District Assembly Common Fund.”

But taking her turn, the Deputy Finance Minister, Abena Osei-Asare, explained that government is working on settling the Common Fund.

She added that while the arrears exist, the government has not violated any Supreme Court ruling regarding fund disbursement.

“I want to put on record that, Mr. Speaker, yes, we do owe the Common Fund some arrears, and we are working very hard to make sure we pay those sums of money. But I also want to put on record that we haven’t defaulted or that we haven’t gone against the Supreme Court’s ruling.

“That is a fact that I should put on the table. We have come to the Finance Committee to explain how we arrive at revenue numbers for DACF. So I just want to put it on the table that we haven’t gone against the ruling of the Supreme Court. But I want to assure the House that we will work together to make sure we clear any outstanding debt that we have with DACF,” he added.

ALSO READ:

• Akropong MP Dokua under fire over Common Fund use

• Kofi Adams proposes public education on Common Fund utilisation

According to him, the government’s indebtedness to ECG is to blame for the ongoing power crisis known in local parlance as ‘dumsor’.

Speaking on Adom FM’s morning show, Dwaso Nsem Monday, the former MP attributed the ongoing power outages to financial constraints emphasizing that the nation’s power generation capacity is currently sufficient.

“Dumsor was solved before NPP took over and they acknowledged it. As of now, we don’t need additional power generation. There is no need for dumsor now, it is a financial problem and the losses are many. The government owes ECG more than anyone else and if the government can pay there won’t be as many power outages,” he stated.

Mr. Sorogo further called on the government to allocate funds and promptly settle its debts to ECG to resolve the power crisis.

“The Ministry of Finance allocates budget for government agencies to settle these things so they should find money and pay ECG,” he asserted.

READ ALSO:

• Police arrest suspect for personation and possession of police uniform unlawfully

• Any man who is sexually attracted to another man needs help – Sefa Kayi on LGBTQ…

This he believes will ensure a more prosperous future for all Ghanaians.

His comments follows the arrival of the Managing Director of the IMF, Kristalina Georgieva, in Ghana last night.

In a post shared this morning on his X social media handle, @oofm, Dr Adam stated that he was looking forward to “bilateral discussions and stronger collaboration towards building Ghana’s economic resilience,  and accelerating sustainable and inclusive growth, to ensure a more prosperous future for all Ghanaians.”

Kristalina Georgieva would hold of bilateral talks with President Akufo-Addo, Vice President Dr. Mahamudu Bawumia, Finance Minister Mohammed Amin Adam, Bank of Governor Dr. Ernest Addison, and other high-ranking officials from the Ministry of Finance and the Bank of Ghana.

Upon her arrival on Saturday evening, March 16, 2024, Madam Georgieva was warmly received at the Kotoka International Airport (KIA) by the Finance Minister, Dr. Mohammed Amin Adam, alongside other senior state officials.

During her two-day stay in Accra, Madam Georgieva is expected to engage with top government officials. These discussions aim to foster dialogue towards strengthening collaboration between Ghana and the IMF, particularly in the context of Ghana’s ongoing IMF programme.

In addition to her official engagements with government leaders, Madam Georgieva will also meet with a cross-section of influential Ghanaian women and leaders of civil society organizations (CSOs). These meetings underscore the IMF’s commitment to working with countries to strengthen institutions and foster inclusive growth.

A key highlight of Madam Georgieva’s visit is her participation in the upcoming “Accra AI Conference” being organised by the Ministry of Finance and the IMF. The conference, slated for Monday, March 18, 2024, will delve into the transformative potential of Artificial Intelligence in driving economic growth and development in Ghana.

The conference proceedings will be live-streamed from 10am on Monday, March 18, 2024, via the Ministry of Finance’s X page, @MoF_Ghana.

The IMF MD’s visit comes at a significant time for Ghana, as the nation progresses steadily with  the implementation of its IMF programme.

Ghana embarked on this programme in 2023, securing a $3 billion credit facility to help address macro-economic vulnerabilities exacerbated by the COVID-19 pandemic and other external shocks.

With the IMF’s support, Ghana aims to strengthen fiscal management, enhance economic resilience, and promote inclusive growth, ultimately paving the way for a more prosperous future for all Ghanaians.

The Ghana Pentecostal and Charismatic Council (GPCC) has expressed shock with the Finance Ministry’s plea to President Nana Akufo-Addo not to assent the anti-LGBTQ+ bill into law.

In an interview on Adom FM Burning Issues, the General Secretary of GPCC, Reverend Immanuel Tettey stated the Ministry’s caution was out of place and must be resisted.

According to him, the proposed legislation is crucial to upholding Ghana’s cultural values and independence from external influence.

Reverend Tettey stressed that there are countries with worse forms of punishment for people who engage in LGBTQI+ activities, but are doing well and have kept their relationships with other multilateral agencies.

“Kenya, Senegal and other countries have more stringent measures yet the IMF is lending its support. So I can’t fathom why the Ministry of Finance will come out with this. Besides this Bill was in parliament way before the IMF negotiations started and it was not part of the conditions,” he stated.

The Bill which criminalizes and prohibits LGBTQI+ activities, was approved on Wednesday, February 28, 2024.

It has sparked criticism from various quarters, including prominent figures like Professor Audrey Gadzekpo, the Board Chair of the Ghana Center for Democratic Development (CDD-Ghana), and other groups coupled with threats of legal action.

It is expected to land on the President’s desk within the week, but the Ministry on Monday cautioned Ghana could lose more than 3 billion dollars in external financing if passed into law.

Meanwhile, Akufo-Addo has said he is awaiting a ruling of the Supreme Court to decide on the Bill as it is currently being challenged.

ALSO READ:

• Burning Issues: Akufo-Addo yet to receive anti-LGBTQI+ bill – MP

• Don’t assent to Anti-LGBTQ+ Bill – Finance Ministry tells Akufo-Addo

Listen to Reverend Tettey in the video attached above:

The senior lecturer at the University of Ghana Business School (UGBS) says he cannot comprehend why the Ministry will put money ahead of protecting the Ghanaian culture and values.

“We must show the Western world we can be independent economically. If they say they won’t lend support, we will not starve to death. There is no cause for alarm,” he said.

In a statement on March 4, the Ministry asked the President not to sign the Anti-LGBTQ+ Bill into law following its passage on February 28.

The statement bemoaned this could lead to severe repercussions on the country’s financial support from international organisations like the Bretton Woods institutions.

The statement highlighted concerns that the expected US$3.8 billion financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support), currently awaiting Parliamentary approval, might not be disbursed.

But speaking on Adom FM Burning Issues, Prof Mensah admitted every action comes with economic repercussions.

However, it will be in the best interest of Ghana to lose US$3.8 billion now instead of a generational cost which will be incurred if the bill is not passed.

“The Ministry is panicking given the amounts they are mentioning. There are always economic repercussions but is it is too early to tie the IMF deal to this or predict in this direction

“Losing that money is nothing compared to the generation cost that the LGBTQI+ will create for Ghana. Do we know how much it will cost us to import adult diapers or the medical cost to treat people? We can’t even deal with bed syndrome so how are we going to handle the consequences of LGBTQI+ activities?” he quizzed.

Prof Mensah admonished President Akufo-Addo to be bold in his stance on LGBTQI+ to send a clear signal to the Western world.

“We have our own values and why should we sit for someone in their country to dictate to us? it is not a sign of respect and this goes a long way to prove our dependence on foreign inflow.

“We should take the bull by the horn for the president to sign and he must be bold too because he seems to be wobbling. His statement of waiting for a Supreme Court ruling on the bill is just to buy time and protect his indecision,” he admonished.

ALSO READ:

• Don’t assent to Anti-LGBTQ+ Bill – Finance Ministry tells Akufo-Addo

• Anti-LGBTQI+ bill: Finance Ministry’s statement a lobbying attempt – Prof Gatsi

The bill is expected to land on President Akufo-Addo’s desk this week, but the Finance Ministry says Ghana could lose more than 3 billion dollars in external financing if the bill becomes law.

Meanwhile, the Member of Parliament for Sagnarigu, Alhassan Bashir Alhassan Fuseini, has urged Ghanaians to take action in support of the anti-LGBTQ+ bill.

The MP stated that the proposed legislation is crucial to upholding the country’s cultural values and independence from external influence.

Speaking to JoyNews on March 4, 2024, he said “Let’s rise up. I am telling you that the streets must be flooded. Everybody must be prepared on this matter, to come onto the streets. Thousands and millions of people must be prepared to flood the streets on this matter to protect our independence and sovereignty.

“We are not going to sit there and allow these external bodies to come and dictate to us and bring policies that are so perverse, that are so backward as far as our culture is concerned.”

Mr Fuseini stated that the European Court of Human Rights says that LGBTQ is not a human right but rather a sexual preference.

According to him, the fact that there is democracy does not mean all things that are punishable by law should be given the freedom to operate.

“Go to the western countries, do they allow people to exercise polygamy? If I want to marry a second wife in any of those countries, would they allow me? And is that not an infringement on my fundamental human rights? Why do they not talk about that in their communities?

According to the MP, these external forces only choose countries that are vulnerable to impose their will on.

“Why are they picking and choosing Ghana as a basis upon which to launch their crusade? It is unacceptable.”

In addition to Mr Fuseini’s comments, the MP for Tamale North, Alhassan Suhuyini, also voiced his opinion on the issue.

He said that the Ministry of Finance has pointed out some potential losses that the passage of the bill could cause.

Mr Suhuyini also pointed out that, there are countries with worse forms of punishment for people who engage in LGBTQ activities, but are doing well and have kept their relationships with other multilateral agencies.

“So I’m surprised that we are afraid that this law will isolate us and affect our relationship with these bilateral institutions. I think that if we rather remain forthright and remain proud of who we are and this law reflects who we are, then we’d be given the respect that we deserve and we will not in any way lose relationships that are mutually beneficial,” he said.

“It is unfortunate that we seem to be focused more on what we may lose and I stress potential and may because there is no evidence that these loses may actually manifest. It’s unfortunate that we seem to be focusing on what we may lose and not thinking of what they may lose if they pursue whatever agenda that they intend to pursue against us.”

Also, the MP for Bole-Bamboi, Yusif Sulemana, expressed disappointment in the Finance Minister, Dr. Amin Mohammed.

The Ministry of Finance in a statement urged President Akufo-Addo to refrain from signing the anti-LGBTQ+ Bill into law.

In the Monday, March 4 release, the Finance Ministry cautioned that such an action could lead to severe repercussions on the country’s financial support from international organisations like the Bretton Woods institutions.

Mr Sulemana went on to say that Dr Amin Adam seems to be more focused on financial considerations than on moral values.

“He should be concerned about the moral decay of this country. He should be concerned about the moral impact that the LGBTQ would bring on us if we allow it to go on. He should be concerned about the children yet to be born and their future. He should be concerned about his children.”

Mr Sulemana also revealed that there is a plan to repeal the bill if it is signed into law.

“They will organise or plan with the judiciary, go to court and then it will be thrown out. We are aware of all these things and calling on morally upright people in the country to stand up.”

The MP noted that the National Democratic Congress (NDC) flagbearer, John Mahama, has taken a stand on the LGBTQ matter publicly and called on the current Vice President, Dr Mahamudu Bawumia, to do same.

“Are you saying that when he [John Mahama] comes into power, he won’t need foreign aid? He is aware of the implications but he has juxtaposed the harm this will cause us vis-à-vis the income or wealth we are going to get from foreign aid, and that’s the perspective from which we have to look at it. It is so shameful, and I am very sad today,” he said.

ALSO READ:

• Don’t assent to Anti-LGBTQ+ Bill – Finance Ministry tells Akufo-Addo

• Reject anti-LGBTQI+ bill – Akufo-Addo told

According to him, there is no portion of the deal with the International Monetary Fund that says that if Ghana enacted such legislation, it would be a breach of contract.

Speaking on JoyNews’ the Pulse on March 4, he elaborated that upon close examination of the country, no advocacy group was potent enough to obstruct the President from assenting the bill.

Therefore, this was somewhat a form of blackmail from the Finance Ministry, anticipating potential hindrances to securing funds.

Again, he added that this was also a way to sort of justify the President’s intention to not sign the bill.

“This thing is just trying to keep the momentum about lobbying. We do not have those things as conditions in engaging with the World Bank or IMF. There are other minority issues, there are other vulnerable issues in our countries. It is based on those things that we are getting development funding from the World Bank to fund benefit all these classes of people.

“So the World Bank cannot say that because of the Anti-LGBTQ+ issues they will not extend money to us, which of course is a loan that will be paid over – I do not see that.

“What I see is a strong force of lobbying that the law should not be passed. That is where we are now. I am not sure that there is any pressure on us about that. It is all about lobbying. So lobbying is scaling up seriously at the last hour because the bill is on its way to the presidency.

“The President made statements to the extent that he has not seen a force in the country built up in relation to LGBTQ. So if we can have something measured in this form that the Finance Ministry has done then that will be understandable for the President to say, I will not sign the law.

“And for me, that is how I see it. We don’t have a legal relation that says that if you pass anti –LGBTQ then we will not give you money,” he said.

In a press release issued on Monday, March 4, the Finance Ministry cautioned that such action could lead to severe repercussions on the country’s financial support from international organisations like the Bretton Woods Institutions.

The statement highlighted concerns that the expected US$300 million financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support), currently awaiting Parliamentary approval, might not be disbursed if the bill is signed into law.

ALSO READ:

• Akufo-Addo speaks on anti-LGBTQI+ bill

• Don’t assent to Anti-LGBTQ+ Bill – Finance Ministry tells Akufo-Addo

In a meeting with the Finance Minister, Asantehene emphasised the importance of collaboration with the Ministry’s staff and urged Mr. Adam to consider their insights.

He commended the former Minister, Ken Ofori-Atta for initiating measures to address the economic difficulties and encouraged the new Finance Minister to build upon those efforts for the benefit of all Ghanaians.

Expressing confidence in Dr. Adam’s ability to lead an economic turnaround, Otumfuo encouraged him to implement effective strategies and measures.

He highlighted the high expectations placed on financial leadership and underscored the President’s trust in the Finance Minister’s capabilities.

“The President expressed confidence in you and has given you a mandate as the Finance Minister. Although the country is going through economic difficulties, there is hope for an economic turnaround if the right measures are implemented. Your Predecessor has put in place some measures as part of efforts to address the economic conditions I will urge you to continue from where he left off.

“You are not a new person at the Finance Ministry, you were there already. I will also urge you to work closely with the staff at the Ministry so you can share ideas to achieve the goals that have been set. Ghanaians are now looking up to you when it comes to finance issues because the President has put you in that position.”

In response, Finance Minister Dr. Mohammed Amin Adam stated that President Akufo-Addo has assigned him the responsibility of overseeing the completion of all stalled infrastructure projects in the Ashanti Region.

“But you are also aware that, we have faced some challenges as a result we had to stall for some time, but you also know that the President is determined to make sure that these projects are completed for the benefit of our people.

ALSO READ:

• I will soon visit ports to weed out corrupt activities – Finance Minister

• Amin Adam vows to complete unfinished projects in Ashanti Region

In view of this, the Ministry of Finance has directed the Electricity Company of Ghana(ECG) and the Northern Electricity Distribution Company(NEDCo) to put the charging on hold.

A statement issued by the Ministry of Finance on Wednesday, February 7, 2024, explained the suspension is pending stakeholder engagement.

“On behalf of the Government, MoF would like to inform ECG and NEDCO to suspend the implementation of the VAT directive pending further engagement with key stakeholders, including Organised Labour.

“The Ministry expects that these engagements will birth innovative, robust, and inclusive approaches to bridging the existing fiscal gap while bolstering economic resilience,” the statement read in parts.

Meanwhile Organised Labour, which has threatened a nationwide demonstration over the levy has warned that nothing short of a total withdrawal will avert the protest set for next Tuesday, February 13.

ALSO READ:

• Gov’t to extensively engage stakeholders on electricity VAT

• 15% VAT on electricity: Can government afford a withdrawal?

Read the full statement below:

In statement, the Ministry said the story attributed to the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa sought to create the impression that the Minister for Finance created an illegal Contingency Vault in 2023 and took money from it without Parliamentary approval.

“We wish to state categorically that these allegations are inaccurate and unfounded. It is incorrect to state that the Contingency Vault was illegally created by Ken Ofori-Atta in 2023. The Contingency Vault (vote) is always part of the Appropriation Bill which Parliament passes annually to support execution of national Budgets and therefore does not require the Ministry to go back for approval from Parliament to access it”, the statement said.

It explained that the Vote enables government to meet critical expenditure challenges, which arise during budget implementation but are not covered by the approved and appropriated budget of Ministries, Departments and Agencies.

“However, there is also a Contingency Fund which is the creation of Article 177 of the 1992 Constitution and reiterated by Section 36 of the PFM Act (2016) Act 921”, the statement clarified.

It pointed out that the Contingency Fund is set up with the approval of Parliament to enable the State cover urgent and unforeseen expenditure for which no allocation exists in the Annual Appropriation.

“A recent occasion during which this legislative provision was utilised was the Covid-19 Pandemic. Hence, there is a clear distinction between the Contingency Vote and the Contingency Fund”.

“For the avoidance of doubt and the education of the public, the Contingency Vote, unlike the Contingency Fund, does not require going back to Parliament for approval whenever there is a need to access it. We hope that this also clarifies the fact that our public Finance architecture does not have any such nomenclature as Contingency Vault”, it pointed out.

ALSO READ:

• ChaLoG threatens legal action against removal of 24 MDCEs

• ‘I no longer attend public events’ because… – ECG MD

This was announced in a statement issued by the Finance Ministry on Monday.

“The Ministry of Finance has noted the concerns of Organised Labour on the implementation of VAT on the consumption of electricity by residential customers. Extensive dialogue will be held with Organised Labour and other key stakeholders in the coming weeks, to ensure stakeholder buy-in,” portions of the Ministry’s statement read.

In a letter dated January 1, Finance Minister, Ken Ofori-Atta, directed the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) to implement the VAT, aiming to raise revenue for the COVID-19 recovery programme.

But Organised Labour has strongly kicked against it amidst threats to embark on an industrial action if it is not withdrawn by January 31.

The Trades Union Congress (TUC) also gave the government a 7-day ultimatum to withdraw the directive.

However, the Finance Ministry appealed to all the stakeholders to exercise restraint to facilitate constructive dialogue towards a quick resolution of the impasse.

RELATED:

• Electricity VAT: We can’t implement a directive that has bottlenecks – ECG MD

• Organised Labour threatens industrial action over electricity VAT

Below is the full statement:

According to him, an amount of GH¢62 million was paid to the Ministry last week and GH¢30 million this week. They are also expecting another GH¢62 million next week.

“So far, last week was GH¢62 million, this week is GH¢30 million and we expect another GH¢62 million. So, you can look at the quantum of money. The number of nurses has increased significantly to close to 150 percent. So where you have to admit 30,000 students every year, that should tell you that in the next three years, you have  30,000 students coming out.” He said.

Mr Offei Baah appealed to the trainees to be patient with the government as all their arrears are paid.

“The only reason why it is delaying is because we all know the situation in which we earlier found ourselves. By the will of God, we are getting out of this situation, and so the government has started giving out funds is one of the reasons we can say our nursing trainees and nurses should exercise some bit of patience for us, we will get the money for them, we have started paying them as agreed and this week another tranche is gone, next week another tranche will also go” he pleaded.

Read also:

• Allotey Jacobs exposes Bawumia’s campaign team
• JFK gifted me money after my dismissal – Hopeson Adorye
• Ghana’s engineers propose solutions to building collapses

The Pru East MP’s comment follows a viral video in which some staff of the Ministry of Finance were seen in a supposed praise and worship session to welcome the Finance Minister after the 2024 budget presentation in Parliament.

This action has infuriated the legislator who described the civil servants’ action as ‘unfortunate’.

Speaking in an interview on Joy FM’s Midday news, Dr. Donkor said the staff must be called to order.

“I call on the Head of the Civil Service to stamp out this behaviour. The Chief Director of the Ministry of Finance must issue a stern warning to such civil servants,” he requested.

According to him, it is inappropriate for civil servants to “adopt partisan positions contrary to their oath of service.”

He added, “Indeed, every civil servant swears an oath and encompassed in the oath is political neutrality so when you have civil servants being reduced to cheerleaders, it is most unfortunate.”

Dr. Donkor said that when civil servants tow this line, “they make it extremely impossible for any incoming government to work with them.”

This, he explained is the reason why since the colonial days, the cardinal principle of civil servants has been neutrality.

“We must not countenance this. This partisanship displayed by paid civil servants goes against the state.”

ALSO READ:

• Ofori-Atta’s rousing welcome at Finance Ministry after 2024 budget presentation

• Ghanaians react to Ofori-Atta’s rousing welcome after 2024 budget

They claim the budget did not live up to expectations and failed to address key factors necessary to ensure the country’s economic growth and recovery.

Despite the negative reaction to the budget, staff at the Ministry engaged a praise and worship session to welcome the Finance Minister after the presentation in Parliament.

In a video that has since gone viral, the staff were lined up on the forecourt of the Finance Ministry singing songs of victory to welcome the Finance Minister.

This action has not gone down well with some members of the public including the Member of Parliament of Pru East, Dr. Kwabena Donkor who was infuriated by the action.

According to him, civil servants should not be seen engaging in such activities that are clearly politically motivated.

He said the actions of the staff should not be countenanced and the Head of the Civil Service should immediately call them to order.

Meanwhile, the video has triggered an X storm with Ghanaians expressing their displeasure.

ALSO READ:

• Inflation declining because we’ve turned the corner – Ofori-Atta

• 2024 budget: Ken Ofori-Atta outlines tax relief measures

Read some reactions below:

The Finance Minister, Ken Ofori-Atta on Wednesday received a rousing welcome at the Ministry following his presentation of the 2024 budget in Parliament.

The staff lined at the premises of the Ministry, hoisting Ghana flags amidst singing and clapping.

To appreciate the gesture of the staff, Mr Ofori-Atta beamed with smiles as he stepped out of his car.

The 2024 budget was themed Nkunim to wit, victory.

It outlined the government’s interventions for social protection, job creation and tax relief measures.

Though the Majority caucus in Parliament has expressed satisfaction with it, the Minority has said it is empty and will only worsen the plight of Ghanaians.

In a viral video, the staff who appeared to be happy with the presentation sung several local gospel songs, while jubilating on the premises of the Ministry.

Play video above:

ALSO READ:

• 2024 budget not inspiring – GNCCI

• The tax reliefs in 2024 budget are ‘highfalutin’ – John Jinapor

Some tollbooth workers who picketed the premises of the Ministry of Roads, have been picked up by the Ghana Police Service.

The group spent the night at the Ministry to demand the payment of their two years salaries following the cessation of tolls collection which has rendered them redundant.

They are currently at the Central police station in Accra.

The disgruntled people noted their peaceful action was on the back of an assurance the Finance Minister, Ken Ofori-Atta gave them.

The Deputy National Communication Officer of the National Democratic Congress (NDC), Godwin Ako Gunn who has been working to secure the release of the people confirmed this on Adom FM midday news, Kasiebo is Tasty.

Mr Gunn explained that, the group decided to sleep at the premises due to the lack of money for transportation but to their respective homes.

They were therefore hopeful they could seek audience with Mr Ofori-Atta on Wednesday morning but they were picked up.

The NDC communicator indicated that, the police have taken their statements but are yet to level any charges against them.

The Minister of Roads and Highways, Kwasi Amoako Attah directed the cessation of road tolls effective Thursday, November 18, 2021.

Mr Ofori-Atta subsequently assured that the workers would be retrained and reassigned, adding none of them would lose their jobs, as they would continue to draw their salaries.

However, after two years on, the workers say they are yet to hear from the government though they now have no source of livelihood.

ALSO READ:

• Tollbooth workers stage demo; petition Parliament over closure [Video]

• Three tollbooth workers die after being rendered redundant

Play video above:

In a statement responding to a Myjoyonline publication, the Finance Ministry claimed there is no November 1, 2023 timeline for disbursement of the second tranche of the IMF funds and that the timeline has not been missed.

So did the government miss a November 1^st IMF specified timeline or not?

We have details from multiple IMF documents detailing the timeline and highlighting government’s main challenge in meeting a critical condition.

The Ministry made a number of claims in the November 10 press release.

CLAIM 1

There is no 1st November 2023 timeline for the disbursement of the second tranche of the IMF funds

VERDICT 1:

This is FALSE. There is a November 1 timeline with two conditions to be met by the government to trigger the release of $600 million. This is both on Page 45, table 9 and page 72, table 1 contained in the official IMF programme document for Ghana.

In Table 9 of page 45 titled; Ghana: Access and Phasing Under the Arrangement, 2023-26, there are two conditions government of Ghana is expected to meet to trigger the release of the second tranche of $600 million.

First: The observance of end-June 2023 performance criteria.

Second: Is to complete the first review.

CLAIM 2

No deadline has been set by the IMF for the second tranche disbursement, which is due to take place after the IMF Executive Board approves the first review.

VERDICT 2:

Myjoyonline never used the word ‘deadline’ in the story. One may notice the Ministry imported the word deadline when they had acknowledged in their first sentence that Myjoyonline’s reference was to ‘timeline‘.

So in the first sentence the Ministry’s statement says ‘timeline’. In the very next sentence, it talks of a ‘deadline’. The fact is, the IMF specified a timeline for a series of conditions to be fulfilled to trigger the release of funds.

In this case, that timeline was specified as November 1, 2023, by which date Ghana should have fulfilled two conditions:

• Observance of end June 2023 performance criteria
• Completion of the first review

It is only when Ghana fulfills these – according to the IMF on page 45 [Table 9] and page 72 [Table 1] – that the fund will release the second tranche of $600 million.

CLAIM 3

The publication by Myjoyonline references Table 9 on page 72 of the Memorandum of Economic and Financial Policies (MEFP) published on 17th May 2023 by the IMF.

VERDICT 3:

FALSE! There is nothing like Table 9 on page 72 in the official IMF extended credit facility programme document published on 17th May, 2023.

CLAIM 4:

The November 1 stated in this table is an indicative timeline for completion of the first review, based on the observance of the end-June 2023 performance criteria. This first review was successfully completed on 6th October, 2023, culminating in a Staff Level Agreement (SLA) on the same day.

VERDICT 4:

This is FALSE! At best, it’s misleading.

First, the IMF’s press release issued on October 6, 2023, titled ‘IMF Reaches Staff-Level Agreement on the First Review of the Extended Credit Facility and Conducts Discussions of the 2023 Article IV Consultation with Ghana’ which the Finance Ministry’s statement refers to indicated that;

“Ghana will have access to about US$600 million in financing once the review is approved by IMF Management and formally completed by the IMF Executive Board. To ensure timely completion of the review, the country needs official creditors to quickly reach agreement on a debt treatment in line with the financing assurances they provided in May 2023.”

From this direct quote, the review is not complete by any stretch of the Finance Ministry’s imagination. According to the IMF itself, for “the timely completion of the review the country needs official creditors to quickly reach agreement on a debt treatment in line with the financing assurances they provided in May 2023.”

Again in that same release, Stéphane Roudet, the IMF Mission Chief for Ghana stated “this staff-level agreement is subject to IMF Management approval and Executive Board consideration once the necessary financing assurances have been received.

An agreement with official creditors on a debt treatment in line with programme parameters would provide the needed financing assurances. Upon completion of the Executive Board review, Ghana would have access to SDR 451.4 million (about US$ 600 million)”

So the IMF Mission Chief for Ghana again emphasizes the point in direct contradiction of the ministry’s claim of having successfully completed the first review, in stating emphatically that the SLA is subject to IMF Management and Executive Board consideration which is dependent on “the necessary financing assurances” and “an agreement with official creditors on a debt treatment” which will trigger the release of the second tranche of 600 million dollars. The IMF Mission chief himself says that categorically.

The question to ask the finance ministry is, if they had indeed “successfully completed” the first review and there was no other condition, why has the IMF still not disbursed the $600 million?

The Myjoyonline.com story was accurate in referencing the timeline stated in the IMF programme document for the fulfilment of conditions and the disbursement of the second tranche by November 1 2023.https://www.youtube.com/embed/_w3GzMpdRfk

Again, to emphasize the point that Ghana has not completed a successful review to trigger the release of the second tranche, Mr. Roudet stated in that same press release;

“In light of Ghana’s compelling performance under the Fund-supported programme, the critical next step is to secure an agreement with official creditors on the terms of a debt treatment consistent with the IMF Executive Board-approved programme parameters and debt targets. We urge official creditors to move forward and agree on an appropriate debt treatment in line with the financing assurances they provided in May 2023.”

To be clear, this condition to trigger the disbursement of the $600 million was referenced at least 3 times in the IMF press release announcing the SLA on October 6.

This is the reason, the November 1 timeline stated in the IMF programme document has been missed because Ghana is yet to secure what the IMF describes as an “agreement on a debt treatment” with our external creditors in line with the financing assurances they provided in May 2023.

In fact, the Ministry’s statement acknowledged this point when they stated that “External debt restructuring negotiations are progressing smoothly.”

They stressed that “the government of Ghana is making good progress in accordance with its strategic plan to engage the Official Creditor Committee (OCC) of the Paris Club; secure a Memorandum of Understanding on debt restructuring; and go before the IMF Executive Board for approval of the first review.”

Myjoyonline only reported the facts as it relates to the timeline specified in the IMF programme document for Ghana published on 17th May 2023 that details the conditions to unlock the remaining funds.

ALSO READ:

• IMF transaction is not a solution to our problems – Oppong Nkrumah

• Ghana misses out on IMF’s Nov. 1 timeline for 2nd tranche as external debt…

A viral letter purported to have been issued by the Ministry suggested that, all shipments to Ghana, including transit shipments are required to obtain an Electronic Cargo Transit number (ECTN/SPN) and submit same to Antaser Afrique BVBA for verification.

However, in a statement dated October 31, 2023, the Ministry has denied the content of the letter.

“The letter alleged that as of 15th September 2023, all shipments to Ghana, including transit shipment are required to obtain an Electronic Cargo Transit number (ECTN/SPN) and submit same to Antaser Afrique BVBA for verification.

“The Ministry wishes to inform all shippers and stakeholders that the letter and its content are fake and should be ignored,” the Ministry noted.

The Ministry has further expressed appreciation to shipping agents and stakeholders who prompted them on the purported letter, assuring them to inform the public of any government’s intended new tax policy.

“We thank all stakeholders who alerted us and made inquiries and wish to assure them that, as is done with all policies, extensive consultation will be done with relevant stakeholders whenever the government wishes to introduce a new policy or tax,” the Ministry noted.

Below is the statement:

• Finance Ministry donates GH₵2m to Akosombo dam spillage victims

• Gold Coast Fund Management customers spend night at Finance Ministry [Photos]

Below is the full statement:

According to the group an amount of GH¢8.6 billion which was approved by Parliament to settle its members, has not yet been given to them, hence the protest.

The customers, who had come from different parts of the country, vowed to picket at the Finance Ministry for 48 hours to drum home their demands.

The group’s convener, Charles Nyame said the decision to spend the night at the Ministry is to send a strong signal to the government to fulfil their financial obligations.

ALSO READ:

• Aggrieved Gold Coast Fund customers to picket at Finance Ministry today

• Statement: Aggrieved Gold Coast fund customers hail Mahama over promises to pay them

• Aggrieved customers of defunct Gold Coast Fund threaten to sue govt

The group says that GH¢8.6 billion approved by Parliament to settle their members is yet to get to its members.

The Securities and Exchange Commission revoked the company’s operating license in 2019 as part of the government’s financial sector clean-up.

Convener of the aggrieved customers, Charles Nyame said over 800 of their members have died in the last five years due to the government’s refusal to pay their monies.

Mr. Nyame made the disclosure on Accra-based Citi FM ahead of the group’s picket.

“It has been five years, and we have over 800 of our colleagues who were old people and are now dead. We have evidence of their obituaries that is the reason why we are going to the Finance Ministry to picket for 48 hours non-stop. We demand that the Finance Ministry release monies to the commercial banks to credit our accounts before we will leave the place” he stressed.

Mr. Nyame said the group would only leave the Ministry’s premises once their locked-up funds are paid.

“We are going to picket in front of the Finance Ministry. We will converge at the Obra Spot, and we will wait for all our members from other regions. Buses will pick us all up and we will go to the Finance Ministry to picket for 48 hours” he added

Mr. Nyame assured members of the group that the police have not opposed the planned picket and urged them to converge at the Obra Spot on Tuesday to be bused to the Ministry of Finance.

“In the letter we wrote to the police, we indicated that we were going to hold a 48-hour picket within the premises of the Finance Ministry. The police raised no issue to that effect, so we expect that we will hold our picket at the Ministry’s premises” he stated.

ALSO READ:

• Statement: Aggrieved Gold Coast fund customers hail Mahama over promises to pay them

• Aggrieved customers of defunct Gold Coast Fund threaten to sue govt

• SEC assures Gold Coast Fund investors of payment of locked-up funds

In a statement, the Ministry said the opportunity is specifically extended to holders who were unable to participate in the February 2023 exchange due to certain delays.

“We are aware that a number of holders of Eligible Bonds did not participate in the February 2023 Exchange on time and, as a result, were left with their holdings of the Eligible Bonds. Mindful of this development, we are proceeding with an administrative reopening of the February 2023 Exchange,” portions of the statement read.

The statement emphasised the invitation is exclusively available to registered holders of Eligible Bonds, excluding Pension Funds.

In light of this, individuals who have previously tendered Eligible Bonds in prior GHS-denominated invitations in 2023 are no longer eligible.

The Ministry has therefore called upon holders of domestic notes and bonds to actively and voluntarily partake in this opportunity.

Read the full statement below:

ALSO READ:

• BoG’s role in Debt Exchange Programme defended amid GH¢60bn losses

• Govt targets pension funds in renewed debt exchange