Ex-Finance Minister Ken Ofori-Atta has defended his tenure, insisting that every decision he made was guided by a commitment to Ghana’s progress.
In a statement issued on February 26, 2025, he reacted to the criminal probe initiated by the Office of the Special Prosecutor (OSP), describing the situation as both perplexing and unsettling.
While addressing the inquiry, he also reflected on his 40-year journey in public and private service, affirming that his efforts have always prioritized Ghana and Africa’s development.
“As you know, I have worked with candor and forthrightness in my personal and professional life these past forty years. As the longest-serving Finance Minister in this Republic (2017 to 2024), and encountering the most far-reaching existential crises in our lifetime, I have always acted in the best interests of Ghana and Africa, and will continue to do so,” Ofori-Atta stated in the letter.
The former minister provided a timeline of his interactions with the OSP, stating that he had been abroad for medical treatment since January 24, 2025, when he was first summoned for an in-person meeting regarding four corruption-related investigations.
He clarified that he was neither responsible for initiating nor executing any of the cases under review but remained willing to engage through his legal team. However, he expressed disappointment that the Special Prosecutor declined this approach, which resulted in armed National Security personnel storming his residence on February 11.
Ofori-Atta also raised concerns over being branded a “fugitive from justice” by the OSP, a designation that has since been withdrawn.
Looking ahead, he expressed hope that discussions through his legal representatives before June would help bring a swift resolution to the matter, particularly as the number of cases under investigation has now increased to five.
“I pray that the Special Prosecutor will agree to meet with my legal team so we can respond to his investigation on the now five cases, in order to resolve the situation expeditiously and well before the June appointment,” he added.
Kenneth Ofori-Atta held the position of Ghana’s Finance Minister for seven years, making him the longest-serving individual in that role.
The deputy finance minister-designate, Thomas Nyarko Ampem, has indicated that, in spite of the minority’s worries, the government will not impose new taxes in the next budget.
In order to raise roughly 200 billion cedis this year, the government intends to impose new taxes, according to the Minority.
But Nyarko Ampem brushed these worries aside, saying that rather than enacting new taxes, the government will concentrate on increasing tax compliance and broadening the tax base.
“The Finance Minister has said this many times—we do not need to introduce new taxes to rake in more revenue. We are going to broaden the tax base. We are actually going to enhance compliance. And you will hear a lot of this in the budget when it is presented. And you’ll see.”
He also emphasized that, because of Ghana’s restricted access to global bond markets, the country must optimize its economic rent from industries.
“In fact, he hinted that as a country, we are not taking advantage of the economic rent that we are supposed to generate revenue from through the exploiting of industry… To be honest with you, because we have been denied access to the international bond market, we have to do two things—enhance revenue and also manage expenditure,” he stated.
Nyarko Ampem reaffirmed that the budget, which is scheduled to be presented to Parliament on March 11, will prioritize bolstering domestic revenue mobilization without imposing additional taxes on the populace.
The Deputy Minister-Designate for Finance, Thomas Nyarko Ampem, has assured that the Free Senior High School (SHS) programme will continue, dispelling any claims of its discontinuation.
Appearing before Parliament’s Appointments Committee on Monday, February 24, 2025, the Asuogyaman MP pledged to support Finance Minister Dr. Cassiel Ato Forson in securing the necessary funds to sustain the policy.
He clarified that his concerns regarding Free SHS are not about financial allocation but rather its execution.
“There is no subtle intention to cancel Free SHS. I will support my minister to provide adequate funding for education. As to the outcome of the education forum, if Ghanaians by consensus agree on a particular direction, and it becomes government policy, I will support it in any way. But like I said, President Mahama gave Ghanaians the indication that he will not cancel free SHS and I know President Mahama is a man of his word,” he stated.
“If I have any concern about free SHS, it is not about the funding it is rather the implementation.”
His remarks come amid discussions at the National Education Forum in Ho, where approximately 300 education experts and stakeholders have convened to deliberate on key challenges and explore ways to make the system more sustainable.
The forum, themed “Transforming Education for a Sustainable Future,” serves as a platform for policymakers and professionals to propose reforms aimed at strengthening Ghana’s educational framework.
The Ministry of Finance has officially released a guide aimed at enhancing the financial management of public investment projects in Ghana.
Titled Methodologies for Preparation and Integrated Appraisal of Public Investment Projects in Ghana, this comprehensive manual outlines a structured approach to managing public projects, from conception to evaluation.
The guide is the culmination of years of work, supported by significant legislative reforms like the Public Financial Management Act of 2016, the Public Private Partnership Act of 2020, and the Public Financial Management (Public Investment Management) Regulations, 2020. These reforms have been instrumental in setting the foundation for the new methodologies.
Minister of Finance, Mr Amin Adam, expressed his pride in the release of the manual, highlighting the crucial role it will play in enhancing the public investment management (PIM) system.
He emphasized the guide’s potential to bring systematic improvement to project preparation and appraisal, aligning with both international standards and Ghana’s specific needs.
“This manual is a pivotal achievement in our efforts to enhance Public Investment Management in Ghana,” the Minister said. “It integrates both academic frameworks and practical insights, offering a step-by-step approach for project managers, government officials, and stakeholders. It is a tool for ensuring the successful execution of investment projects that will propel our nation towards sustainable prosperity.”
The guide is particularly noteworthy for its practical approach, offering readers not just theoretical knowledge but actionable steps for assessing and managing investment projects. It also reflects the contributions of key experts, including Prof. Edgardo Mimica, an international PIM consultant, whose input was invaluable during the reform process.
The Minister further urged stakeholders to actively engage with the guide, describing it as an essential resource that will help unlock the full potential of public investment management in Ghana.
“We must not only learn from the insights in this manual but also act on them to achieve meaningful progress. Let us use this as a driving force to create development that is broad-based and sustainable for all Ghanaians,” he added.
With the release of this guide, the Ministry of Finance has set a new benchmark for effective public investment management, signaling a move towards more efficient and transparent financial practices in the country.
Deputy Finance Minister, Dr. Alex Ampaabeng has suggested that online trading companies should be taxed to support the economy.
He emphasized that both local and international companies generate substantial revenue from Ghanaian clients, making taxation essential.
In an interview with Bernard Avle on Channel One TV’s The Point of View, Dr. Ampaabeng highlighted various potential revenue sources for Ghana, including online businesses and content creation companies.
He questioned why national companies are taxed, but social media platforms like YouTube and Facebook, which run numerous advertisements, are not included in the Ghanaian tax system.
According to Dr. Ampaabeng, these social media companies earn profits from the advertisements they display, and online trading companies also generate income from their products and services.
He mentioned online trading companies such as Jiji, Jumia, and Tonaton, which he believes surpass all physical marketplaces in Ghana in size.
“I can’t think of a country which has not gotten a digital service tax system of some sort, so Ghana is long overdue. Just to make an example so that people will appreciate where I’m coming from. Go to Youtube and play a video, within one or two minutes, you are going to watch about two, or three adverts.
“What it tells you is that Facebook or Youtube is making profits right here in Ghana. Go to your Facebook account, and you are going to see a number of adverts on your right, left. What it is telling you is that Facebook is making profits right here in Ghana and not being taxed. Meanwhile, there are companies operating in Ghana, for jurisdiction reasons, of course, that are being taxed.
“So then, it comes to the question of the application of our tax laws. Revenues generated in Ghana are subject to taxes. We have Facebook, TikTok and all those players, these are digital platform owners.”
He stressed, “Then we have the digital or market players, here we are talking about individuals who are using the digital platforms. We have Jiji, Jumia, Tonaton, these combined, are bigger than all physical marketplaces in Ghana. And it tells you the volume of transactions, that are going on there.”
He pointed out that revenues generated in Ghana are subject to taxes, and digital platforms like Facebook, TikTok, and others should not be exempt. He stressed the importance of taxing digital marketplace operators, such as individuals using platforms like Jiji, Jumia, and Tonaton, which combined are larger than all physical marketplaces in Ghana.
Dr. Ampaabeng expressed his hope that individuals earning online profits from Ghanaian residents would be taxed. He noted that conversations are ongoing, and while changes may not happen soon, he envisions a Ghana where all profit-earning entities pay taxes.
“There are conversations ongoing, I wouldn’t want to pre-empt anything, maybe in the future, it might not be anytime soon, what I would like to see, is a Ghana where people who are earning all forms of profits in the country are subject to taxes. People who are trading online to Ghanaian residents, people who are generating revenue from Ghana are allowed to pay taxes,” he noted.
Additionally, he proposed a collaboration with the government to curb cybercrime by registering and verifying online trading companies.
“We can have a system where the government engages these operators, so individuals will submit their Ghana Card and are registered and verified.”
Finance expert, Joe Jackson has challenged the government’s reported figures concerning the depreciation of the cedi against major trading currencies in 2023.
During a press briefing on May 24, 2024, Finance Minister Dr. Mohammed Amin Adam presented an update on the economy, claiming that the cedi’s depreciation against the US dollar had reduced significantly from 54.2% at the end of November 2022 to 27.8% by December 2023.
He further expressed optimism that the cedi would continue to strengthen in the medium-term following the completion of the Domestic Debt Exchange Programme (DDEP).
“But for recent pressures we are seeing on exchange rate movements, the exchange rate has been largely stabilized with the depreciation of the Cedi against the US Dollar halving from 54.2% at the end of November 2022 to 27.8% at the end of December 2023.
“The Cedi’s stability has continued into 2024, with a cumulative depreciation of 14.2% as of May 20, 2024, compared to 20.7% recorded in the same period in 2023. We expect the Cedi’s stability to improve in the medium term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves over the medium term,” the finance minister stated.
However, Jackson contested these figures, stating that they do not align with data available online, particularly with exchange rate figures provided by the Bank of Ghana.
Referring to the minister’s assertions regarding the cedi’s future stability, Jackson emphasized the importance of this stability translating into tangible benefits for the average Ghanaian.
“The minister may have gotten his figures a little wrong. I don’t think that in May 2023 it was that kind of figure.
“If you go online and you look at the Bank of Ghana rate and other quoted rates; anybody can go to www.xe.com, put the US dollar to cedi rate, you will see that today’s rate is quoted as 14.55 coming from the central bank,” the finance expert said.
He continued, “On May 24, 2024, the quoted rate there is 10.75. Today, the quoted rate is 14.55, the depreciation is around 24%.”
“…As for the cedis being strong, he can’t say that. We feel it in our pockets, we feel it when we buy clothes… you feel it everywhere,” Jackson argued.
Finance Minister Dr. Mohammed Amin Adam has noted that the Ghana Cedi has experienced appreciation and maintained stability against the US dollar throughout 2024 compared to previous years.
During a monthly briefing held by the finance ministry on the state of the economy, Dr. Amin Adam highlighted that the exchange rate has significantly stabilized, with the rate of depreciation against the US dollar decreasing from a substantial 54.2% at the end of November 2022 to 27.8% by the end of December 2023.
The minister expressed confidence that the Cedi would strengthen further in the medium term following the completion of the Domestic Debt Exchange Programme (DDEP).
“But for recent pressures we are seeing on exchange rate movements, the exchange rate has been largely stabilized with the depreciation of the Cedi against the US Dollar halving from 54.2% at the end of November 2022 to 27.8% at the end of December 2023.
“The Cedi’s stability has continued into 2024, with a cumulative depreciation of 14.2% as of May 20, 2024, compared to 20.7% recorded in the same period in 2023. We expect the Cedi’s stability to improve in the medium term as we complete debt restructuring, make more progress on fiscal consolidation, and improve our reserves over the medium term,” the finance minister stated.
Addressing the current depreciation trend of the Cedi against the US dollar, Amin Adam attributed it to various factors including the strengthening of the US Dollar against major trading currencies, seasonal forex demand, elevated corporate institutional demand, payments to contractors and Independent Power Producers (IPPs), high Cedi liquidity, and speculation.
“The recent pressures we are observing on the Cedi are largely due to the strengthening of the US Dollar against major trading currencies, seasonal forex demand including elevated demand from corporate institutions, payments to contractors and IPPs, high Cedi liquidity, and speculation.”
Deputy Finance Minister-designate, Dr. Stephen Amoah has called on stakeholders in the tourism industry to prioritize domestic tourism as a means to stabilize the depreciating cedi.
The tourism sector ranks among the top four sectors bringing foreign exchange inflows into the country.
Speaking at the GIPC Quarter Two CEOs Breakfast Meeting in Accra on Thursday, Dr. Amoah emphasized the need for stakeholders to drive local economic growth through homegrown policies.
“One thing I have seen about Africa is that we have a lot of ideas but sometimes the global models control us too much. We need to build homegrown policy tools that specifically address our needs. So we need to do all these things and make sure that we all repent…let’s begin to show that high level of patronage and keep the money here.”
“We always talk about cedi, cedi, if we change dollars and go there why won’t the cedi suffer? But if you stay here the dollar people come, they will demand our currency. As a country, we have everything at our disposal to develop tourism because God has given us. God has endowed us,” he stated.
Minister of Finance-designate, Dr. Mohammed Amin Adam, expressed optimism about the country’s economic outlook, highlighting positive indicators during his speech at the Health Sector Annual Summit 2024.
Dr. Adam noted a decline in inflation, signaling an improvement in the economy. He conveyed his confidence in this trend continuing, projecting further reduction by the year’s end.
Speaking as the manager of the economy, Dr. Adam emphasized the resilience of Ghana’s economic recovery despite challenges.
He attributed this success to effective policy measures, citing growth surpassing expectations in 2023.
Highlighting the robust economic performance, he revealed that growth exceeded projections, reaching 2.9% compared to the anticipated 1.5% in 2023. Dr. Adam expressed optimism about the year ahead, citing current trends.
“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,” he said.
He also discussed the decline in inflation, which dropped from 54% at the end of 2022 to 25% after 12 months. Dr. Adam outlined the government’s target to reduce inflation to 15% by the end of 2024 and achieve a single-digit rate by 2027.
“As a result of the policies we have implemented, economic growth has become more robust than ever anticipated. Projected to grow by 1.5% last year [2023], we grew by 2.9%.
In conclusion, Dr. Adam reaffirmed the government’s commitment to economic stability and outlined its goals for inflation reduction in the coming years.
“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%,” he explained.
“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.
Société Générale has received notification that Société Générale Group, which holds 60.22% of Société Générale Ghana, has commenced a strategic review.
In a statement, Société Générale Ghana added, “If a concrete development were to be decided, a subsequent communication will be made at the appropriate time according to applicable legislation.”
Société Générale Ghana PLC is a leading bank in Ghana with 42-networked branches and outlets nationwide.
The bank offers dedicated innovative products and services to retail and corporate clients, aimed at satisfying and anticipating customers’ needs.
Recognized for supporting individuals and businesses of various sizes and backgrounds, the bank is an innovator in the banking industry, spearheading key reforms such as Factoring, Cash Management, Foreign Exchange and Commodity Hedging, Consumer Credit Loan, and Bill Payments to meet its customers’ needs.
Societe Generale is a top-tier European Bank with 117,000 employees serving 25 million clients in over 60 countries worldwide. For nearly 160 years, it has supported the development of economies, providing corporate, institutional, and individual clients with value-added advisory and financial solutions.
The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:
French Retail, Private Banking, and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital Bank Boursorama.
Global Banking and Investor Solutions, a top-tier wholesale bank offering tailored-made solutions with distinctive global leadership in Equity Derivatives, Structured Finance, and ESG.
International Retail, Mobility & Leasing Services, comprising well-established universal banks (in Czech Republic, Romania, and several African countries), and ALD / LeasePlan, a global player in sustainable mobility.
Committed to building a better and sustainable future with its clients, Societe Generale aims to be a leading partner in environmental transition and sustainability.
The Group is included in principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).
Finance Minister-designate, Dr. Mohammed Amin Adam, also the Member of Parliament for Karaga, has taken decisive steps to tackle the urgent issue confronting the Tamale Teaching Hospital (TTH).
In response, Dr. Adam donated 10 polytanks to bolster water storage capacity and contributed GHC 100,000 towards refurbishing an outdated underground tank.
These underground tanks, with capacities of 138.6 cubic meters and 65 cubic meters respectively, were decommissioned during Phase 1 of the TTH Project.
The refurbishment, estimated at GHS420,000 as of 2023, presented a significant financial burden, which the Minister pledged to help alleviate.
Moreover, Dr. Amin Adam committed to donating three dialysis machines to supplement the hospital’s current inventory.
During his working visit to the CEO of the Tamale Teaching Hospital, the finance minister announced that these machines would arrive in the country within three weeks, with delivery to the facility expected in a month.
Expressing gratitude for the generous donation, TTH CEO Dr. Adam Atiku reiterated the hospital’s commitment to utilizing the contributions effectively.
Dr. Atiku underscored the strain on existing machines due to the hospital’s monopoly market status in northern Ghana, emphasizing the need for support from individuals and organizations to sustainably address these challenges.
Relatives of patients interviewed by Citi News highlighted the unpleasantness of coping with water scarcity at the facility, particularly for those coming from other parts of the country.
With Minister Adam’s intervention, TTH anticipates enhanced operational efficiency and improved healthcare delivery to the region.
Over the years, the Tamale Teaching Hospital has faced significant challenges, particularly in water storage, impacting its operations.
As the primary referral center for five regions in the North and neighboring countries, TTH grappled with severe water shortages and other issues affecting its ability to provide essential healthcare services.
Patients and their relatives have long struggled with water problems at the Tamale Teaching Hospital, resorting to purchasing water from outside or using sachet water to care for their hospitalized loved ones.
Industry stakeholders are applying pressure to the newly appointed Minister of Finance, Dr. Mohammed Amin-Adam, urging the removal of what they deem as burdensome taxes from the national tax framework.
These stakeholders argue that the upcoming Mid-Year Budget Review, slated for presentation to Parliament in the coming months, presents an opportunity to eliminate taxes such as the Electronic Levy (E-Levy), taxes on electricity consumption, and emission taxes, among others.
Moreover, the proliferation of port charges is significantly impacting importers’ finances, hindering their ability to compete cost-effectively and fully capitalize on the advantages of the African Continental Free Trade Area (AfCTA).
This action, according to them, would not only showcase Vice President Dr. Mahamudu Bawumia’s commitment, as he recently acknowledged the problematic nature of certain taxes in the country’s tax system, but also align with President Nana Addo Dankwa Akufo-Addo’s recent decision to replace his Finance Minister, Ken Ofori-Atta, along with several other ministers.
While numerous ministers were reassigned, the spotlight has predominantly been on Ofori-Atta, whom many hold responsible for the current economic challenges and high levels of national debt. Critics argue that his administration exacerbated the situation by imposing additional taxes in an effort to bridge the revenue deficit.
AGI
Dr. Humphrey Kwesi Ayim Darke, the President of the Association of Ghana Industries (AGI), emphasized that Dr. Amin Adam should align the tax proposals outlined by presidential candidate Dr. Mahamudu Bawumia in his vision statement with tangible actions during the forthcoming Mid-Year Budget Review.
He underscored the importance for Dr. Amin Adam to illustrate the government’s plan to eliminate the E-levy and implement a flat-rate tax system while he holds office.
“We should contextualise this; the vision of the presidential candidate is out; they have changed the Minister of Finance; now let’s see how that reflects in the Mid-Year Budget and in their manifesto, so we should be pushing for how these can be synchronised in their manifesto,” he told the Graphic Business in an interview in Accra on the expectations of AGI of the new Finance Minister.
Engagement
He said his outfit expected the new minister to engage the association to discuss the issue of taxes on industry and how it could be mitigated to ensure their growth and survival.
“His appointment is good. He comes with fresh thinking, fresh perspectives which I believe should be in tandem with that of the current leader of the party, Dr Bawumia,” he stated.
Reflecting more on the Mid-Year Budget Review and the vision of the Vice President, Dr Ayim-Darke expressed the hope that Dr Bawumia’s vision will be reflected, adding that the strategy of the government going forward must align with the Vice-President’s vision.
Dr Bawumia in his address to the nation a fortnight ago announced plans to abolish the E-levy, Emissions tax and other levies as part of a broader tax reform aimed at boosting government revenue and fostering a cashless society if he is elected President.
Expressing concern over significant revenue losses estimated at $24 billion or 13 per cent of GDP due to many individuals and businesses operating outside the tax system, Dr Bawumia outlined his reform agenda, which includes abolishing taxes such as the emissions tax and tax on betting to streamline the tax regime and enhance revenue generation.
“The current tax system, in place since independence, has proven ineffective.” Dr Bawumia admitted in his vision statement which many consider rhetorical.
AGI expectations
Dr Ayim Darke said with Mr Ofori Atta out, Dr Bawumia through the new Finance Minister who is said to be his choice for the position when he becomes President, has the opportunity to now remove the nuisance taxes negatively affecting the members of AGI and other members of society.
“Dr Bawumia should start demonstrating the viability of some of his vision for the country. He should start cutting down on expenditures, and where he believes that he can synchronise and increase domestic revenue, he should start demonstrating it, by rationalising and ensuring the removal of the taxes he promised to do away with if voted as president,” he said, adding that, now is the time to do so through Dr Amin Adam.
Taxes
Dr Ayim Darke told the Graphic Business that taxes were now the big issue and would be the centrepiece of this year’s election.
He charged the presidential candidates of the two major political parties in the country to evaluate how taxes were affecting the competitiveness of factories in the country and proffer solutions to ensure the sustainability of their businesses.
The Finance Minister, Ken Ofori-Atta, has emphasized his dedication to fiscal discipline, pledging to avoid budget overruns in 2024 leading up to the December elections.
Reflecting on the reduction of inflation from 54.1% in December 2022 to 23.2% in December 2023, he emphasized the need for fiscal prudence, stating that the Ministry of Finance prioritizes the nation’s welfare over popularity.
The finance minister acknowledged the Bank of Ghana’s efforts in utilizing monetary policy tools to curb inflation, emphasizing his refusal to authorize expenditure misalignments with the budget.
“We have moved inflation from over 54.1% in December 2022 to about 23.2% in December 2023 and you think that did not come with exercising some fiscal prudence? The Ministry of Finance is not here to be loved, but to make sure that the community crosses the Jordan”, he told George Wiafe on PM Express, Business Edition on January 18, 2023.
“We want to ensure that the right things are done going forward as a country. If the expenditure does not fall in line with the budget, I will not sign the cheque”, he said.
He affirmed the government’s dedication to strict adherence to fiscal policies, striving to achieve targets outlined in the 2024 budget.
Reminding government officials of the importance of fiscal prudence, Ofori-Atta disclosed stringent measures taken to contain spending, contributing to the decline in inflation.
Despite the challenges posed by an election year, he expressed confidence in maintaining fiscal discipline and achieving the 2024 year-end inflation target of 15%.
Optimistic about Ghana’s IMF program, Ofori-Atta addressed the difficulty in introducing new tax measures to boost revenue, citing the necessity to address the country’s tax-to-GDP ratio. While recognizing the challenges, he expressed confidence in the government’s commitment to economic stability and fiscal responsibility.
The Finance Committee of Parliament has recommended the suspension of all payments related to the government’s contract with SML starting from the beginning of next year.
This decision comes as part of a broader move to conduct a thorough parliamentary probe into the said contract.
The committee asserts that, upon a comprehensive review of the contract, it has become apparent that parliamentary approval, in accordance with the Financial Management Act, is necessary.
Consequently, the Ghana Revenue Authority (GRA) is expected to be duly notified about this statutory requirement.
This development unfolded during the deliberations on the budget approval concerning various government obligations for the upcoming year, 2024.
Speaking on behalf of the Minority, Dr. Cassiel Ato Forson addressed journalists regarding the contract, stating, “As part of the report, the Parliament of the Republic of Ghana has resolved that the Ghana Revenue Authority (GRA) must immediately stop all payments to SML beginning January 1, 2024.”
He continued, “Again, parliament resolves that GRA must be aware that the contract that the Ministry of Finance has with SML constitutes a multi-year commitment and section 33 of the Public Financial Management Act is clear on the matter that all multi-year commitments must be presented to parliament for consideration and approval.”
Highlighting the current status of the contract, Dr. Ato Forson emphasized, “So the contract in its current shape is not valid and must come to Parliament for approval. It is also important to note that the same Finance Committee working with Parliament has resolved to initiate a probe into the SML. I urge the Committee of Finance to conduct this probe diligently and in a manner that will show transparency.”
Through a number of reforms, the Federal Inland Revenue Service, or FIRS, claims to have raised Nigeria’s tax share of GDP from 6.0 percent to 10.86 percent in 2022.
This information was presented yesterday at the FIRS’s Lagos Mainland West region’s awareness session by Mrs. Saidatu Yero, Director, Taxpayer Services, Abuja.
She added: “The Management is committed to improve the country’s tax to GDP ratio to 16.5 percent which is the Africa’s average and subsequently 18 percent in the next three years.”
She stated: “Some laudable reforms had been embarked on by the Service which has changed the narrative of the tax administration in Nigeria thereby improving our revenue collection into the coffers of government”.
She stated further, “One of the four (4) cardinal goals of the Management of FIRS is to be “customer centric” and our major customers and critical stakeholders in the tax ecosystem as a Tax Authority are the Taxpayers.
“Therefore, if the Taxpayers must understand their tax obligations and rights, it is imperative to keep them informed, sensitized, engaged and educated to enable them to fulfil their tax obligations without any hitches”.
Speaking on the theme:”The Finance Act as an innovation to the Nigerian tax system”, Director, Tax Policy and Advisory Department, FIRS, Mr. Temitayo Orebajo noted that the 2023 Finance Act amended seven tax laws, four non tax laws and 30 Sec.
Founder and current Chairman of CWG Plc, a prominent systems integration company in sub-Saharan Africa, Austin Kwesi Okere, has emphasized that artificial intelligence (AI) will emerge as the primary distinguishing factor between successful and struggling financial services providers in the evolving landscape of global finance.
Mr Okere, highlighted AI’s crucial role in areas such as product development, corporate governance, and fraud prevention, which have gained heightened importance in light of recent economic developments. He also noted the potential for malicious actors to exploit AI for their own gain.
“When it comes to trusting banks, it’s all about safety – keeping your money secure from risks, fraud and cyber threats.
“People often lose sleep worrying about whether their funds are safe from unauthorised access or impersonation. But things keep changing, and now artificial intelligence poses a new threat by making it easier to fake identities. So, we’ve got to up our game and use that very same tool to improve security.
“Security in banking is always evolving and our job is to bring in the latest and best practices to protect your money. As the world gets more complicated, these safety measures become even more crucial. CWG leads the way in creating these solutions,” he added.
These remarks were made during the launch of CWG’s 20th-anniversary celebration of its operations in Ghana. They underscore the increasing importance of artificial intelligence (AI) across all sectors of the economy. Projections indicate that the global AI market is set to reach a value of $1.35 trillion by 2030, potentially contributing $15.7 trillion to the global economy in the same year.
Highlighting the relevance of AI, the Bank of Ghana’s fraud report disclosed that banks and specialized deposit-taking institutions (SDIs) incurred losses of approximately GH¢56 million due to fraud in 2022. In contrast, the global financial sector experiences annual losses in the trillions of US dollars due to fraud.
Harriet Attram Yartey, Managing Director at CWG Ghana and Vice-President for its regional operations, also emphasized how technology has created a unique opportunity for local institutions to achieve significant growth.
She noted that in the past, the cost was a major barrier for firms looking to embrace cutting-edge technology. However, CWG’s solutions have made technology more accessible, leading to substantial cost savings through improved efficiency and reduced risks associated with potential digital security breaches.
“We have successfully shifted the perception that technology is prohibitively expensive, and our customers are now expanding their operations while reaping the benefits of these savings,” she elaborated.
The 20th anniversary, with the theme “Positioning Africa to Maximize the Future,” she continued, “serves as a testament to CWG’s lasting contributions to the information, communication, and technology sector over the past two decades.”
“CWG has consistently set the standard for excellence in Africa and has diligently pursued its vision and mission, making a profound impact on Ghana and Africa’s digital ecosystems,” she added.
Officials, have reported that, Russia’s unmanned Luna-25 spacecraft has met with an unfortunate end, crashing into the Moon after losing control. This marked Russia’s inaugural lunar mission in nearly five decades.
Originally intended to make history as the first craft to touch down on the Moon’s southern pole, the mission encountered complications as it transitioned into its final approach, ultimately leading to its failure.
The objective of the mission was to investigate a Moon region speculated by scientists to harbor frozen water and valuable elements.
In a statement released on Sunday morning, Roscosmos, Russia’s state space agency, disclosed the loss of communication with Luna-25 shortly after 14:57 pm (11:57 GMT) on the previous Saturday. Early assessments indicated that the 800kg lander had collided with the Moon’s surface, resulting in its dissolution.
The agency outlined its intention to establish a specialized committee to delve into the causes behind the mission’s downfall.
The setback of Luna-25 is a significant setback for Roscosmos, as Russia’s non-military space initiatives have faced decline due to a redirection of state finances towards military endeavors over recent years.
Russia had been in a race with India to reach the Moon’s southern pole, with India’s Chandrayaan-3 spacecraft slated to make a landing and dispatch a rover for the purpose of exploring the lunar landscape, gathering vital data and images for transmission back to Earth.
The perpetual shadow cast over portions of the Moon’s southern pole has piqued interest due to its potential to house water.
A spokesperson for the Indian space agency Isro described the Luna-25 crash as “unfortunate”.
“Every space mission is very risky and highly technical. It’s unfortunate that Luna-25 has crashed,” they told the BBC.
Roscosmos had acknowledged that the Luna-25 mission was risky and could fail. The craft launched from Vostochny Cosmodrome in the far eastern Amur region of Russia on 11 August, and then successfully entered the moon’s orbit on Wednesday of this week.
It was expected to make history by making a soft landing on Monday or Tuesday, just days before the Indian touchdown.
No country has ever landed on the Moon’s south pole before, although both the US and China have landed softly on the Moon’s surface.
Luna-25 was Russia’s first Moon mission since 1976, when it was part of the Soviet Union. That mission, Luna-24, landed successfully.
An aspirant for the position of flagbearer within the New Patriotic Party (NPP) and a Member of Parliament representing Assin Central, Kennedy Ohene Agyapong, has expressed his dissatisfaction with the disregard for his counsel and expertise within Ghana’s Parliament.
He attributes this lack of attention to his background and financial status.
With a parliamentary tenure spanning 35 years, Agyapong has conveyed his frustrations during an interview. He highlighted that despite his extensive practical experience and meaningful contributions, his input is often dismissed.
He attributes this dismissive attitude to his educational background, having attended a public school in his hometown of Assin.
Mr. Agyapong believes that his suggestions, rooted in practicality, are overlooked by the Finance Minister, who leans more toward theoretical approaches in economic matters.
He provided instances where his advice was overlooked, including his counsel on agricultural and fisheries matters. Agyapong pointed out that he had recommended specific cold storage conditions for fish preservation and had also highlighted the potential for yam exports. Despite these suggestions, he believes they were disregarded primarily due to his perceived lack of financial influence that might draw more attention.
Agyapong underscored his determination to demonstrate the efficacy of practical strategies in reshaping the country’s prospects. He expressed his aspiration to assume the presidency with the goal of effecting change through a pragmatic approach, challenging the prevailing notion of exclusively relying on theoretical knowledge.
As a part of his campaign to secure the NPP flagbearer position, Agyapong is embarking on a nationwide tour across all 16 regions of Ghana to garner support from party delegates.
He firmly believes that his business acumen and parliamentary experience position him favorably to generate employment opportunities and instigate positive transformation within Ghana.
The NPP has scheduled a Super Delegates Conference for August 26, during which the final candidate will be elected from a pool of 10 aspirants contending to lead the party in the 2024 general elections.
Finance Minister, Ken Ofori-Atta, has responded to calls for his dismissal, characterizing them as a manifestation of democracy and freedom of speech.
Speaking with the media on August 6, 2023, Ofori-Atta addressed the criticism he has faced from both his party members and opposition lawmakers regarding the country’s economic challenges and his decision to seek assistance from the International Monetary Fund (IMF).
Despite facing pressure to resign, Ofori-Atta emphasized that during challenging times, his focus remained on alleviating the economic difficulties faced by Ghanaians.
He highlighted the recent parliamentary censure vote, which upheld his position, as a testament to the democratic process in the country.
Ofori-Atta expressed his commitment to his role and his determination to steer the country’s economy in a positive direction.
He acknowledged the urgency of the situation and the efforts his team made to meet the requirements set by the IMF.
Regarding his potential removal from office, Ofori-Atta noted that such decisions ultimately rest with the President and that he is dedicated to restoring confidence in the country’s economy.
Former Liberian President, Ellen Johnson Sirleaf has emphasized female education’s pivotal role in propelling African development.
She calls for free education across the continent, ensuring young women access quality learning regardless of location.
In an interview with the media, Sirleaf underscores the importance of aligning free education initiatives with a country’s budget.
In Ghana, she highlights the Finance Minister’s role in successful implementation while maintaining fiscal balance.
Sirleaf emphasizes the necessity of education for women, noting its significance in shaping individual paths and fostering societal well-being. She asserts that resource allocation towards education correlates with successful development.
While endorsing free education, Sirleaf also acknowledges the need for clear criteria and parameters to identify eligible beneficiaries. Academic performance, household dynamics, and support systems must be considered to ensure effective implementation.
Sirleaf’s stance highlights education as a fundamental right and a driving force for equitable development across the African continent.
Finance Minister Ken Ofori-Atta has indicated that Government’s efforts to restore the economy to a stable situation is on course.
Presenting the Mid-year Budget Review to Parliament on Monday, July 31, the Finance Minister indicated that “the economy is showing signs of recovery.”
“As I have indicated, we have made significant progress on restoring macroeconomic stability and the narrative is changing,” he added.
According to him, the exchange rate has stabilised, inflation has softened, and interest rates have declined since December, 2022.
This follows government’s agreement with the International Monetary Fund (IMF) for a $3 billion Extended Credit Facility.
However, government failed to meet a number of its targets for 2022.
i. Overall Real GDP growth was 3.1 percent compared to the revised target of 3.7 percent;
ii. Non-Oil Real GDP growth was 3.8 percent compared to the revised target of 4.3 percent;
iii. End-December inflation rate was 54.1 percent compared to the projected 28.5 percent.
iv. Total Revenue and Grants for the period amounted to GH¢96.7 billion (15.8 % of GDP) compared with the revised target of GH¢96.84 billion (16.4 percent of GDP).
v. Total Expenditure on commitment basis amounted to GH¢165.1 billion (27.0% of GDP) against the revised target of GH¢133.8 billion (22.6% of GDP).
vi. Overall Budget deficit on commitment basis was 11.8 percent of GDP against the revised target of a deficit of 6.3 percent of GDP.
vii. Primary Balance on commitment basis was a deficit of 4.3 percent of GDP against a revised target of a deficit of 0.7 percent of GDP.
viii. On cash basis, the Overall Budget deficit was 10.7 percent of GDP against the revised target of a deficit of 6.6 percent of GDP.
ix. The corresponding Primary Balance on cash basis was a deficit of 3.2 percent of GDP against a revised target of a surplus of 0.4 percent of GDP; and,
x. Gross International Reserves was equivalent to 2.7 months of import cover.
The Director of Operations at Dalex Finance has strongly emphasized the drawbacks of using treasury bills as a means to finance the country’s debts.
According to him, relying on treasury bills, which are short-term debt instruments, to finance long-term debts could lead to a “disaster waiting to happen.”
Joe Jackson, as reported by norvanreports, expressed concern over the government’s lack of determination in addressing the escalating expenditure, which has resulted in high interest rates in the treasury bills market.
In the government’s latest auction, interest rates on treasury bills have reached 30%.
Despite the increasing interest rates, the government has managed to surpass its targets recently.
However, looking ahead to the mid-year budget review, which is scheduled to be presented by the finance minister on July 25, 2023, Joe Jackson, the analyst, is urging the government to be transparent and forthcoming about fiscal matters.
He also called for clarity on the government’s strategy to tackle the GH¢60 billion budget deficit
The Ghana Chamber of Telecommunications has, as of today, January 11, 2023, commenced the implementation of a 1% charge on all electronic transfers.
This is in line with the announcement of the revision of the Electronic Transfers Levy rate from 1.5% to 1% during the presentation of the 2023 budget statement in parliament by the Minister for Finance, Ken Ofori-Atta.
Parliament subsequently debated and passed the revised E-Levy rate before the house went on recess in December 2022.
“As captured in the Electronic Transfer Levy (Amendment) Act, 2022, Act 1089 which has been passed by parliament and assented to by the President, the levy on electronic transfers has been reduced from 1.5% to 1%, while the GHS100 threshold remains unchanged,” the Chamber of Telecommunication stated in a statement ahead of the implementation.
Meanwhile, the Chamber has assured of its collaboration with the Ghana Revenue Authority and other key institutions to ensure a seamless implementation of the revised rate.
As part of the amendment of the E-Levy law, the government had sought to remove the GHC100 threshold as exempted by the initial act.
However, that failed as the minority in parliament which was opposed to the proposal won a vote against it.
A New Patriotic Party (NPP) Member of Parliament, Eugene Boakye Antwi, has wondered why the country is continuously entertaining the Minister of Finance, Ken Ofori-Atta.
Describing it as “nonsense,” the Subin MP said that if this was happening in another jurisdiction, such things would never have been allowed to fester.
According to a myjoyonline.com report, the MP, who is part of some rebel parliamentarians who are seeking the sacking of their party member, the Minister of Finance, made this known while speaking in an interview on JoyNews.
He stated that they are determined to keep President Nana Addo Dankwa Akufo-Addo’s promise of removing the minister after he completes his tasks of presenting the 2023 budget to parliament and leading the conclusion of the IMF talks.
“…these are major policy failures that in any civilized democracy, Ken Ofori-Atta will not stand on his feet. Why are we entertaining such nonsense? Excuse my French.
“… what have we got against him as a person? You brought something to us; we are talking about those issues, and you forget about this and say that we want to unseat somebody in the constituency just because you have failed?
“You saw us in the Chamber fighting our NDC guys to pass the e-levy. So, what have we not done for Ken Ofori-Atta to succeed as a finance minister and I say posterity will judge us if this is personal,” he said.
Eugene Antwi further said that he was elected as an MP by his people and as such, all he is seeking is in their interest first, just as it is for the good of the country, far more than anything that will please the president.
“Nobody made me an MP, Akufo-Addo did not make me an MP. God made me an MP. I was elected just as Akufo-Addo was elected so nobody should dare threaten anybody. When you veer into that realm you even muddy the waters more… I contested the primaries like Akufo-Addo contested the primaries to become president.
“The fact that we have taken this position does not mean that it is directly directed at President Akufo-Addo, no. We are talking about the supreme interest of the party. No individual is bigger than this party including Nana Akufo-Addo.” he added.
Over 80 MPs from the majority party have openly declared their opposition to Ken Ofori-Atta, calling on the president to fire him.
The MPs have recently reactivated their demands after the minister fulfilled the requirement of President Nana Akufo-Addo to have him stay on a little longer to complete the IMF deal and present the 2023 budget to parliament.
Private legal practitioner and member of the opposition National Democratic Congress, Godwin Edudzi Tamakloe has questioned the basis of the continued stay in office of the Minister for Finance, Ken Ofori-Atta.
According to Edudzi, the minister for finance should find a reason to leave his job based on the current state of the economy
“You are the same minister of finance who told the whole world that you will never go to the IMF, principle and consistency. Now you have run the system so badly…. So then you go back for your own voice and on principle, you have to say I will let go.
“You took over an economy that was so strong at the time that you were able to borrow US$11 billion in Eurobonds on the strength of the economy that you took over. Today, six years down the line, the same economy cannot borrow GHC1 from the Eurobond Market. So on principle, you tell yourself that thank you Mr President for the confidence you reposed in me but I am leaving the scene,” he told Kwame Nkrumah Tikese on Okay FM’s Ade Akye Abia morning show.
Referencing the government’s decision to close down some banks during the 2017 banking sector cleanup exercise, Edudzi emphasised that Mr Ofori-Atta should resign on the same principle.
“You see, his continues presence in the financial system is hurting people. Ken Ofori-Atta and Governor Addison decided to collapse banks when he came into office. What was the reason for cleaning up the banking sector? They said it was due to mismanaging and that the banks were on the verge of insolvency. Is this country not insolvent? So if you; Ken Ofori-Atta, governor Addison, Nana Addo and Dr Bawumia can collapse banks on the strength that those banks have been mismanaged why are you still in office?” he questioned.
Ghana is currently plunged into serious economic distress with the nation’s debt shooting through the roof.
The minister for finance has announced a debt sustainability program aimed at controlling the country’s debt.
There is a public frenzy about Ghana’s current economic status with several concerns being shared about the impact of the announcement.
Minister of Finance Ken Ofori-Atta announced a Domestic Debt Exchange on December 4, 2022; with the view that details of the said programme will be presented today, December 5.
One of three key points he put out in his four-minute address was the fact that there “There will be NO haircut on the principal of bonds.”
In the wake of back and forth about whether there will be haircuts on domestic bonds, Gabby Asare Otchere-Darko who was posting snippets of Ofori-Atta’s address on Twitter highlighted the NO haircuts point.
But reacting to that particular tweet, Economist and Political Risk Analyst, Dr. Theo Acheampong, explained that the view of Gabby and the Minister was misleading.
Quoting Gabby’s tweet that read: “There will be no haircut on the principal of your domestic bonds,” Mr. Acheampong clarified: “That’s NOT TRUE, boss.
“The Fin Min said treasury bills are protected (full redemption) but other local debt instruments (e.g. fixed dep., bank debt holdings) are to to be exchanged for 4 instruments with different maturity dates & coupon payments. So there are implicit haircuts!”
The other two key points in Ofori-Atta’s announcement relative to domestic bonds were: “Treasury Bills are completely exempted and all holders will be paid the full value of their investments on maturity,” and “Individual holders of bonds will not be affected.”
What Ofori-Atta said:
The Minister of Finance announced a number of measures under government’s Domestic Debt Exchange (DDE) programme late Sunday.
He stated in a 4-minute address that the announcement was in line with government’s Debt Sustainability Analysis as contained in the 2023 budget he presented to Parliament on November 24.
The Minister laid out among others the exchange of existing domestic bonds with four new ones as well as their maturity dates and terms of coupon payments.
He also addressed the overarching goal of the government relative to its engagements with the International Monetary Fund as well as measures to minimize impact of domestic bond exchange on different stakeholders.
“The Government of Ghana has been working hard to minimize the impact of the domestic debt exchange on investors holding government bonds, particularly small investors, individuals, and other vulnerable groups,” he said before outlining three main measures:
• Treasury Bills are completely exempted and all holders will be paid the full value of their investments on maturity.
• There will be NO haircut on the principal of bonds.
• Individual holders of bonds will not be affected.
The Finance Minister Ken Ofori-Atta was excellent in the delivery of the 2023 budget statement.
He described the presentation as ‘fantastic, excellent.”
Kamal Deen further said that the government acknowledges that times are hard for Ghanaians hence, drastic measures taken in the 2023 budget statement.
Speaking on the Big Issue with Roland Walker on TV3 Friday November 25 while discussing the budget presentation, he said regarding the embargo placed on employment into the public and civil service that it means “those who have reached retirement age must go for them to be replaced.”
He added “drastic measures needed to be introduced, times are are hard, we have had the president acknowledging that fact, Finance Minister acknowledging, Vice President acknowledging that we are not in normal times.”
The Minister of Finance Ken Ofori-Atta announced in the 2023 budget a freeze on employment into the civil and public service.
He also said there shall be no new government agencies established in 2023.
He said these while presenting the budget in Parliament on Thursday November 23.
Mr Ofori-Atta said as a first step toward expenditure rationalisation, government has approved a number of directives which takes effect from January, 2023.
These are “All Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs) and State-Owned-Enterprises (SOEs) are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit system, and fuel depots. Accordingly, 50% of the previous years (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOEs;
“A ban on the use of V8s/V6s or its equivalent except for cross country travel. All
government vehicles would be registered with GV green number plates from
January 2023; Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;
“Only essential official foreign travel across government including SOEs shall be
allowed. No official foreign travel shall be allowed for board members.”
The Finance Minister added “Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff; As far as possible, meetings and workshops should be done within the official environment or government facilities; Government sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year; Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;
“A freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies; A hiring freeze for civil and public servants, No new government agencies shall be established in 2023; There shall be no hampers for 2022; There shall be no printing of diaries, notepads, calendars and other promotional, merchandise by MDAs, MMDAs and SOEs for 2024; All non-critical project must be suspended for 2023 Financial year.”
The government has frozen the hiring of public and civil servants for the 2023 financial year.
According to the Finance Minister, Ken Ofori-Atta, this is part of expenditure cut measures being adopted by government to address the current economic challenges.
“A hiring freeze for civil and public servants. No new government agencies shall be established in 2023,” Ken Ofori-Atta said.
Ken Ofori-Atta made this known while presenting the 2023 budget before parliament on Thursday, November 24, 2022.
The presentation of the budget in parliament is in pursuance of the Public Financial Management Act, 2016 (Act 921).
This allows the Finance Minister to review the budget statement and economic policy of the government and supplementary estimates for the 2023 financial year.
Dr. Richard Amoako Baah, a Political Science Lecturer at the Kwame Nkrumah University of Science and Technology (KNUST), has indicated that the majority of New Patriotic Party (NPP) Parliamentarians have lost their credibility.
His accusation relates to a recent U-turn on the part of the lawmakers who had on two occasions in the last month demanded the immediate dismissal of Minister of Finance Ken Ofori-Atta over economic hardship.
Speaking to Accra-based Joy FM, the lecturer questioned why the MPs did not rescind their decision earlier and wondered further why the party executives did not approach the MPs early on when they decided to boycott the 2023 Budget reading should the Finance Minister present it.
“What is it that made them disagree before and how did they come back to this decision? They have brought party politics into the government … If you were going to change your mind, then you should do this earlier and why didn’t the party elders talk to them at an earlier time instead of this last minute?” Dr. Amoako Baah asked.
He noted that the latest decision taken by the anti-Ofori-Atta NPP MPs has also destroyed the credibility of the party.
“They [NPP MPs] have destroyed NPP’s credibility, they have separated the supporters, grassroots people of the party from themselves. Now it is very difficult for people to even see anything they say possible,” he observed.
Dr. Amoako Baah’s sentiment comes after some 98 NPP MPs rescinded their decision to boycott the 2023 budget presentation.
GhanaWeb earlier gathered that the finance minister, Ken Ofori-Atta, risked meeting an empty Parliament when he appears before the House to present the budget.
According to our sources, both Caucuses were likely to be absent themselves, which would have made it impossible for the minister to present the budget because there will be a lack of quorum as required by the Constitution.
The MPs made this U-turn after meeting with the national leadership of the party, who urged them to hold off on their demand until the 2023 Budget statement was read and appropriated.
But Dr. Amoako Baah is of the view that the Parliamentarian’s action is not a good thing.
He explained that this is because the MPs represent the party more than the executives and therefore could have maintained their stance.
The national executives of the New Patriotic Party (NPP) have stepped in to resolve the impasse between some 98 members of the Majority Caucus in Parliament and the President over the demands for the sacking of the Finance Minister, Ken Ofori-Atta.
The NPP legislators had threatened to boycott all business brought to the house by the Finance Minister, including the budget presentation expected to take place on Thursday, November 24, 2022.
In view of this, the NPP national executives, held a meeting with the Members of Parliament to ensure that, they do not carry out their threat.
A statement jointly signed by the Majority Chief Whip, Frank Annoh-Dompreh and the General Secretary of the NPP, Justin Koduah as resolution to the ongoing impasse, urged the majority members to put their demands on ice until negotiations for the International Monetary Fund (IMF) bail-out are completed.
After the said meeting, the NPP says it has been able to get the MPs to heed to the request by the President and will attend all government business brought to the house.
Mangowa Ghanney, a former director, legal division of the Ministry of Finance has refuted claims suggesting that Databank has been favoured and handed contracts from the ministry without merit.
Finance Minister Ken Ofori-Atta has recently come under fire for allegedly using his office to make money through Databank at the expense of the government.
According to Ghanney, all contracts awarded to Databank prior to Ken Ofori-Atta’s tenure was based on merit, adding that there was no conflict of interest.
Speaking to sit-in host of The Asaase Breakfast Show on Monday (21 November), Ghanney said: “And as far as I know, nothing has ever been handed over to Databank on the silver platter. Databank has always had to compete with any other institution to be part of what the Ministry of Finance does.”
Encouraging local participation
“Ministry of Finance has for a few years now, had a policy to encourage local participation, and to do this we always tendered when there were projects available, and we evaluated and picked the best responses, and Databank happened to be one of those companies that we picked.
“And this is not only during this Finance Minister’s tenure but, this was before this minister’s tenure,” Ghanney stated. “The Ministry of Finance has worked with Databank, and we have worked with them and with other local financial institutions because they presented themselves as able to present the task.”
The political scientist at the University of Ghana, Professor Ransford Gyampo has said most of the charges levelled against the Finance Minister Ken Ofori-Atta by the Minority were propaganda.
Ofori-Atta on Friday (18 November) appeared before the ad hoc committee of Parliament over a motion of censure against him.
Reacting to Ofori-Atta’s response to the grounds for censure by the Minority in Parliament, Gyampo said the Finance Minister rendered the Minority incompetent with his answers.
“They have been at it again in their recent probe of Ken Ofori-Atta. They were simply uninspiring, and it appears many of the charges they chose to level against the man, were more propagandistic,” Gyampo wrote on Facebook.
“The kind of things to say, and the charges to level in censoring a minister, are not like political party rally talk, that are usually not subjected to strict proof. You cannot censor a minister and set the kind of precedent we want to set in our drive towards democratic maturity, without being well grounded, detailed, thorough and water-tight in your charges,” he added.
Below is the full statement of Gyampo:
It appears our minority group has the penchant for hyping public expectations of them, in their dealings in Parliament, and failing to live up to such expectations when it matters most. In their vetting of Ken Ofori Atta, they made all Ghanaians believe they were going to shoot his nomination down, for various reasons. Yet they couldn’t do this when the man appeared before them. Indeed, apart from one or two of them, on the then vetting committee who abstained, the rest voted to sing the praises of Ken Ofori Atta, and approved his nomination as minister.
They have been at it again in their recent probe of Ken Ofori Atta. They were simply uninspiring, and it appears many of the charges they chose to level against the man, were more propagandistic. The kind of things to say, and the charges to level in censoring a minister, are not like political party rally talk, that are usually not subjected to strict proof. You cannot censor a minister and set the kind of precedent we want to set in our drive towards democratic maturity, without being well grounded, detailed, thorough and water-tight in your charges.
Yesterday, Ken Ofori Atta made them look so incompetent, as he nearly extricated himself from the shallow charges levelled against him. He simply knew how to answer questions without incriminating himself, and he also knew how to appeal for public sympathy.
Regardless, Ken must go, at least for the optics of good governance. The law, and using it in the defense of one’s self is only minimum, but conscience is the upper most. He himself admits that things are hard, and of course, harder in Ghana than elsewhere in Africa. His own party people know why they have passed a vote of no confidence against him in their hearts.
There certainly should be better managers of our economy among the echelons of the NPP, and the indubitable truism that, Ghana and the management of our economy would not grind to a halt when Ken is no longer in charge, should point to the dispensability of all human beings, including the minister.
The fresh experience and innovations introduced in managing the STC by Nana Akomea, and in governing Accra, by Henry Quartey, should be a great lesson that must guide anyone who is anti-reshuffle. We cannot run the nation like spiritual churches, whose activities hover around their leadership, and die when their leaders are no more. The impression being insinuated that, there can be no successful management of our economy without the current minister, is unproductive and only serves to dissipate our scarce brains, talents and Human Resources that must be brought on board to help.
Finance Minister Ken Ofori-Atta has defended the process he used to withdraw money from the consolidated fund to sponsor the national cathedral project by saying former President John Mahama’s government used the same process to approve funds for Ghana’s participation in the 2014 World Cup in Brazil.
Testifying before the ad hoc parliamentary committee that investigated some seven allegations against him in connection with a censure motion filed by the minority caucus in an attempt to remove him from office, Mr Ofori-Atta said: “Hon. Co-chairs, in preparing the annual budgets, the practice is that provision is made for indicative expenditures that have not been fully costed (sic) at the time of the budget presentation”.
“Provisions are made in the Contingency Vote to cater for such expenditures”, he explained, citing, for example, “in 2014, there was no specific allocation in the 2014 budget for Ghana’s participation in the FIFA World Cup in Brazil. The Cabinet of President John Mahama, in March 2014, at the time, approved some $9.622 million for that tournament, including that amount which was flown to Brazil in a private jet for the players”.
“A more current example is Ghana’s participation in Qatar. The Black Stars qualified for the 2022 FIFA World Cup, way after the 2022 budget, presented on 16 November 2021, was approved by parliament. No specific amount was budgeted for it but through the Contingency Vote, we have been able to provide funds legitimately for the team to participate in the competition”, he noted.
According to him, “expenditures in respect of the National Cathedral were made from the Contingency Vote under the ‘Other Government Obligations’ vote as has been the practice before my tenure (I have copies of several payments from the Contingency Vote dating back to 2015 to share)”.
Mr Ofori-Atta said “as finance minister, I am fully aware of the approval procedures for the use of the Contingency Fund and have not breached its requirement”, adding: “The national cathedral is 100% owned by the state and is not the president’s cathedral as described by the proponents”.
“Indeed, the Attorney General issued an opinion on 6 January 2022, that the national cathedral is a state-owned company limited by guarantee, under the Ghana Museums and Monuments Board”, he added.
The eight-member ad-hoc committee probing the censure motion against the Finance Minister, Ken Ofori-Atta is expected to present its report to the plenary on Tuesday, November 22, 2022.
This follows its conclusion of public hearing into allegations levelled as the basis for the censure motion against the Finance Minister last Friday.
In his concluding remarks, a Co-Chair of the committee, Dr. Dominic Ayine announced plans to seek an extension of time from the Speaker of Parliament, Alban Bagbin to finalize its report.
“We will apply to the Speaker for an extension of time to be able to file our report and the purpose of the report will simply be to continue the debate on the motion for the vote of censure and the report will be laid in Parliament hopefully on Tuesday.”
KT Hammond, another co-chair, announced that the committee would have to present a draft copy of the report to the Finance Minister to ensure that his responses are properly captured before the full report is tabled before Parliament for debate.
Seven allegations have been levelled against the Finance Minister by the Minority in Parliament, calling for his removal from office.
The Minister is accused of conflict of interest, gross mismanagement, recklessness of the economy among others.
The committee was given seven days by the Speaker to probe the censure of motion, which ended today.
The Committee was set up by the Speaker of Parliament Alban Bagbin, chaired by Dominic Ayine and K.T Hammond.
The fate of the Finance Minister will be known after the committee had presented its report to the Speaker, as to whether the censure of vote will go in his favour or otherwise.
The embattled Finance Minister says the controversial National Cathedral project belongs to Ghana fully.
Ken Ofori-Atta said the project does not belong to President Akufo-Addo as asserted in some circles.
According to him, Ghanaians will enjoy the full benefits of the project and not the President.
“National Cathedral is 100 per cent owned by the state and is not the President’s cathedral as described by the proponents,” he said when he appeared before the Ad hoc Committee hearing the censure motion against him on Friday.
Touching on the expenditure for the controversial project, he said he has not breached any laws in that regard.
He disclosed that the monies that have been disbursed for use for the project were from the contingency vault.
According to him, this practice is not new as was done by the previous Mahama-led administration.
Mr Ofori-Atta said he has in his possession several pieces of evidence to prove his claim.
“Expenditures in respect of the National Cathedral were made from the contingency vault under the other government obligations vault as has been the practice before my tenure.
“I have several copies of payments from the contingency vault dating back to 2015 to share.
“Honourable co-chairs as Finance Minister I am fully aware of the approval procedures for use of the contingency funds and I have not breached its requirements,” he added.
The embattled Minister of Finance, Ken Ofori-Atta, says he has not taken any money from the contingency fund for the construction of the National Cathedral contrary to what the Minority in Parliament is accusing him of.
The Minister of Finance disclosed this while responding to accusations by the proponent of the motion of censure against him that he has taken monies from the Contingency Fund for the Construction of the National Cathedral project without approval by Parliament.
“There is a difference between the contingency vote and contingency fund the proponents refer to. Contingent vote under Article 177 constitutes monies voted by Parliament and advance on this must be authorized by the Parliament finance committee,” he told the eight member Ad-hoc Committee hearing the Censure Motion against him.
He said no specific allocation in the 2014 budget for were made for Ghana’s participation in the FIFA World cup in Brazil.
“The cabinet of John Mahama in March 2014 then approved some $9.22 million dollars for that tournament in a private jet for the players.
“The more current example is Ghana’s participation in Qatar, the Black Stars qualify for the 2022 FIFA World Cup. We after the 2022 budget was presented on the 16 November 2021 was approved by parliament. A specific amount was voted for it (Black Stars) but through the contingency vote we have been able to provide funds for the team to participate in the competition,” Mr. Ofori-Atta stated.
He added that expenditure for the National Cathedral was from the contingent vault as has been the practice before his tenure.
Mr. Ofori-Atta further added that he is aware of the process in getting money from the contingent fund and he will not do the contrary.
The Minister of Finance Ken Ofori-Atta has denied allegation that he withdrew funds from the Contingency Fund for the National Cathedral project.
He told the 8-member ad hoc committee that is investigating the allegations made against him by the Minority, that it was rather funds from the Contingency Vault that were used for the project.
The Contingency Fund and the Contingency Vault, he said, are two different thing altogether which should not be confused.
“I did not withdraw funds from the Contingency Fund for National Cathedral,” he told the committee on Friday November 18.
He added “The withdrawals were lawfully done from the Contingency Vault and not from the Contingency Fund as alleged by the proponents.”
The committee dropped two out of the seven charges against him.
This was after the Ghana National Petroleum Commission (GNPC) which was called upon by the committee to testify on Thursday did not say that the Finance Minister authroiused payment of oil revenues into offshore accounts.
During proceedings on Friday November 18, Co-chair of the committee Dr Dominic Ayine said “…They also did not say anything to the effect that you gave the instructions with respect to that payment. On account of the evidence adduced which kind of contradicted the evidence that was led by the proponent of the motion, the committee has taken the view that you will not be called to deal with this matter.”
He added “…So in essence, there are now five grounds that you will have to deal with. Those are grounds 2, that is the unconstitutional withdrawals in relation to the national for national cathedral, then we have ground 5, 6 and 7 to deal with.”
Mr Ofori-Atta appeared before the committee on Friday November 18 to answer the charges against him.
In his initial submission, he told the committee that “I am certain Ghanaians will have amore balance view of what has led us here.”
It is clear now that the number of Members of Parliament on the Majority side of parliament who want their own, the Minister of Finance, Ken Ofori-Atta, out, have increased.
From the initial 80 New Patriotic Party (NPP) MPs, the number has been reported to have risen to 98 in the last few days, owing from a revamped decision by the lawmakers to have the embattled minister step down.
In that first press conference to call on the president, Nana Addo Dankwa Akufo-Addo, to heed to their call, the MPs also threatened to boycott government business in parliament in protest, should their request be refused.
But a few hours later, something major happened that got the ‘angry’ MPs to relax their stance.
Akufo-Addo meets NPP MPs calling for Ken Ofori-Atta’s dismissal:
Following the public declaration of disapproval of the finance minister by the MPs, an emergency meeting was conveyed at the behest of President Akufo-Addo to deliberate and understand the misgivings of the MPs towards the minister.
The major fallout from the meeting was the president’s requests to the MPs to allow the finance minister three weeks to prepare the 2023 budget and conclude negotiations with the International Monetary fund.
Speaking to Oyerepa TV, the Member of Parliament for Efiduase Asokore, Nana Ayew Afriyie, stated that President Nana Addo Dankwa Akufo-Addo promised to act in a manner that will not require the MPs to come back to him.
“He [Akufo-Addo] promised us this way, after the end of the budget it won’t be necessary for us to come to him because of what he would do about the finance minister, because by then, there will be no need to come back to him,” he said.
Ayew Afriyie said the president also mentioned four decisions he will take with regard to the matter.
“He can do any of the following: sack the finance minister, reshuffle, re-assignment, or a replacement. He will do something that will not require us to come back to him,” Ayew Afriyie said.
He however added that: “Even if the economy bounces back, we still want Ofori-Atta and Charles Adu Boahen to be gone.”
And then after a while – when the NPP MPs seemed to have been living by the request of the president, they returned to state that they want him out again.
This time, the number shot up to 98.
And while this happened at a time an ad hoc committee in parliament, put together by the Speaker of Parliament, Alban Bagbin, to look into a vote of censure on the finance minister, the MPs insisted on still pushing for Ofori-Atta to be sacked.
President Kufuor meets with 98 NPP MPs:
According to a starrfm.com.gh report, former President John Agyekum Kufuor has reportedly invited the 98 NPP MPs threatening to boycott the 2023 budget presentation should the current finance minister go ahead to read it in parliament.
The meeting Starr News understands is for the former leader to resolve the standoff that has prevailed over the past weeks.
Spokesperson for the agitating MPs, Andy Kwame Appiah-Kubi, publicly announced the decision and stated that they have resolved to get Ken Ofori-Atta out this time.
He stressed that they are convinced it is time for the beleaguered finance minister to leave, amid the minority censure motion laid in the House against him.
“We’ve gone back to (our demand for the President to) sack him now and therefore should the budget be presented under the stamp of the finance minister, we’ll not participate because as far as we’re concerned we’re never going to do business with him.
“And if we’re not going to do business with him, he does not participate in any process from the Presidency to the House. We will not participate in deliberations too,” Appiah-Kubi said.
It remains to be seen whether the group will compromise its position the second time after the former president’s intervention.
This creates space for Mobile Money (MoMo) merchants, the number of whom has been rising, to “milk” the government of anticipated revenue from the Electronic Transactions Levy (E-levy), as merchants bargain with clients for a charge, forcing them to avoid paying tax.
According to the Bank of Ghana’s (BoG) 2021 Payment Systems Oversight Annual Report, the overall number of active mobile money users climbed by 2.4% year over year, while the number of active mobile money agents increased by 29%.
Some MoMo merchants in Accra who spoke on anonymity with the Ghana News Agency as well as mobile money users admitted going into such agreement to avoid paying taxes, especially on transactions amounting to GHS1,000 and above.
The Electronic Transactions Levy Act, which was introduced in May 2020, comes with a 1.5 per cent charge on transactions exceeding a cumulative GHS100 per day in addition to charges by service providers (MTN and AirtelTigo).
The revenue from the E-levy is to support the Government’s YouStart entrepreneurship programme, digital infrastructure, and cybersecurity, and increase Ghana’s tax-to-GDP ratio to 20 per cent by 2024 for national development.
CEFIS observed that “in many commercial transactions, the parties involved negotiate based on a ‘gentleman’s agreement’, where the sender deposites cash into the wallet of the receiver through a MoMo merchant account to avoid the payment of its corresponding e-levy charge.”
Prof Anthony Amoah, a co-author of the study, who spoke to GNA, said: “We observed that consumers have created a gateway to avoid the tax, giving that tax avoidance is not criminal.”
He said that the strategy of using the e-levy as a conduit to get the informal sector to contribute to national revenue had failed, as the informal sector, the most active group, was exploiting the loopholes.
“Those who do transactions like GHS50 and GHS100 are already exempted from paying the tax but those who pay above the cumulative GHS100 are avoiding it and it’s actually those who are doing bigger transactions that do it more,” he said.
Prof Amoah added that: “This means that it is the agent that benefits and not the Government, and we found that the number of agents is going up because it’s more profitable to be in that business, but it is very discouraging to the Government.”
“If the Government reduces the rate from the 1.5 per cent to 0.5 per cent and people don’t feel the impact, then you’re going to rake them in,” Prof Amoah, who is a Development Economist, said.
The evidence from the simulations suggested that if the levy was revised to 0.5 per cent, and 54 per cent of the existing active users patronised MoMo transactions, the expected revenue for 2022 would be GHS2,640,600,000.81.
That revenue would rise by 21.4 per cent to yield GHS3,205,688,401.01 in 2023, and in 2024, reach GHS3,635,234,306.60, and by 2025, the projected revenue from e-levy would reach GHS4,043,980,051.74.
The Speaker of Parliament, Alban Bagbin, has ruled that an ad-hoc committee will be set up to probe the allegations for the motion of censure raised by the Minority Caucus against the embattled Minister of Finance, Ken Ofori-Atta.
According to the Speaker, setting up a committee will provide an opportunity for the Finance Minister to respond to issues of conflict of interest raised by the Minority Leader, Haruna Iddrisu.
“The evidence will be placed before the committee. The Minister will have the opportunity to defend himself. A report will be presented to the House, and we will debate that report,” the Speaker of Parliament Alban Bagbin said.
Bagbin made the ruling after the Minority Leader, Haruna Iddrisu, moved the motion for the vote of censure against Mr Ofori-Atta on the Floor of the House on Thursday, November 10, 2022.
According to Haruna Iddrisu, the record inflation rate, the depreciation of the cedi, the excessive borrowing and the reckless spending and the failure to control fuel prices are clear indications that the Finance Minister is not fit to continue in his role.
The Tamale South MP added that “Ghana’s economy is currently in a ditch” and called on the Majority side of the House to join the motion to remove the Finance Minister to regain the confidence of investors and save the economy from total collapse.
But the call by the Minority Leader was turned down by the Majority side, with the Deputy Majority Leader, Alexander Afenyo-Markin stating the call by the Minority Leader is in bad faith and not procedural.
According to him, issues raised by the Minority Leader border on criminality. He said Parliament cannot arrogate to itself judicial powers to try the Finance Minister, and called on the Speaker to allow Mr Ofori-Atta to defend before any decision is made.
The Majority MPs had earlier indicated their unwillingness to back the Minority’s vote of censure against the Finance Minister.
At a press conference held Thursday morning, the Majority group led by the MP for Effiduase/Asokore, Nana Ayew Afriyie said despite the fact that they still stand by their decision for the Finance Minister to be removed, they refuse to support the motion by the Minority.
“We are not going to support the course of the NDC this morning. The course of the NDC is premised on falsehood, propaganda and reasons which are not justifiable. Their position might look like ours, but ours is different,” Ayew Afriyie said.
Musician Sarkodie is not going back on his word regarding his stance on certain national issues.
The award-winning artiste has been at the receiving end of criticisms that his creative expression of sentiment against political ills has reduced.
Some songs such as ‘Inflation’, ‘Masses’ and others addressed political leaders and their role in economic mismanagement.
But his latest commentary which came on Kuami Eugene’s ‘Happy Day’ song, raised eyebrows.
On that 2021 collaboration, Michael Owusu Addo as he is known outside music circles, trumpeted the benefits of the NPP government’s flagship Free Senior High School programme.
Since this line, the economy has taken a downward turn, the cost of living has skyrocketed and the Finance Ministry is currently negotiating with the International Monetary Fund (IMF) for a bailout.
Some music lovers were hoping to get another epistle as characteristic of ‘The Highest’ which has never seen the light of day.
According to the 37-year-old, his conviction during ‘Happy Day’, for example, came from a need that the specific government policy had satisfied among his close relations.
Explaining his ‘Nana Toaso’ line on 3 Music, he said “I think I benefitted from Free SHS directly and I have the right to say I endorse that. This is directly.”
“My mum has these girls that she supports. At first, she calls me [about their school fees]. I’m not saying it’s much but just the fact that you’re not getting that call anymore… It came from that place and I was specific about what I was endorsing.”
He says he knew the verse would be controversial but still stands by his word and won’t apologise for it.
The musician also said that compelling him to do so may conflict with his creative process.
“You might think you’re doing a good thing trying to get me to do it, but you are actually interfering in [my] creative feel,” he said on Thursday.
He however conceded that the country was experiencing a very difficult time adding that the conditions highlighted in his previous politically-inclined songs, remain unchanged.
“The country is worse… people are really suffering,” the VGMA Artiste of the Decade concluded.
Tamale Central Member of Parliament, Alhassan Suhuyini, has advanced a reason why embattled Dome-Kwabenya lawmaker, Sarah Adwoa Safo, is returning to Parliament after a long absence.
Suhuyini in an interview on TV3, November 8, 2022, said it was curious that the lawmaker’s much-awaited return was coinciding with a vote of censure motion the Minority Caucus was due to move against Finance Minister, Ken Ofori-Atta.
According to him, the latest development is akin to the last time that she was in Parliament, that is to help with the passage of the 2022 Budget statement of the government.
“You know there is an important vote coming up?” Suhuyini asked New Day host Berla Mundi before adding: “The finance minister’s vote of censure, she has showed up. When did she last show up last minute? On the budget.
“They knew where she was, they could bring her, they just didn’t want to,” he submitted.
“When it is important to this government…remember Adwoa Safo told us the president is aware of her absence and the president understands her and the president has never denied it.
“For me, it is curious that an important vote is coming up….and the president has found a way and remember the president wants to save the Finance Minister at all costs, Adwoa is back,” he stressed.
Adwoa Safo makes no-show in Parliament
On Tuesday, November 8, when proceedings in Parliament started at about 11.38 am, her seat was empty indicating that she was not in the Chamber.
Journalists and even her colleague MPs were expecting to see her join the debate which was going on at the plenary but that did not happen.
Sarah Adwoa Safo’s seat remained empty till the end of the day’s proceedings at 2.00 pm.
It is, however, unclear why the MP, after her return to the country failed to show up in the House.
The MP was relieved of her ministerial post despite having been given extended leave from last year and her seat in Parliament is the subject of a heated debate between the Speaker and Leader of the Majority Group.
After referring her absence from Parliament to the Privileges Committee of Parliament, the Speaker of Parliament said he investigated their work and was not satisfied with it and has since referred it to the floor of Parliament for a decision to be taken.
Flagbearer hopeful of the opposition National Democratic Congress(NDC) and former Finance Minister, Dr. Kwabena Duffuor, says he was serious about paying arrears to contractors and other persons who had worked for the government while he was in office.
According to him, the regular payment of arrears went a long way in boosting the growth of the economy.
“We never joked with expenditure. I was not making payments when there was not enough money. But as soon as money hit government account, I paid off people who government owed. We managed government bill very well. I never joked with arrears. I never denied contractors their money. I ensured I paid regularly in bit until all the debt is cleared,” Dr Kwabena Duffuor said on Ghana Kasa show on Kasapa 102.5FM/Agoo TV on Monday.
He added: “When we paid contractors, their work also progressed, and we also took the taxes. You pay arrears with your right hand, and you take taxes with your left hand. That is how it is done. If a contractor has executed a project worth GHC10m and you say you’ll not pay him, how does he take care of the workers? The money is not for him; it is for the workers. When he pays them, then you also take the tax from them. That helps the economy to grow very fast, and a lot of taxes are paid. If government does not pay contractors, their businesses collapse, and there’ll not be enough taxes to build the country.
Parliament will this week give effect to the vote of censure filed by NDC MPs in the House to determine the fate of Finance Minister, Ken Ofori-Atta.
The debate and vote on the censure motion will be taken on Thursday 10th November, 2022 following the expiration of the seven-day notice mandated by the Constitution.
Speaking to Journalists, Deputy Minority Whip, Ahmed Ibrahim said all NDC MPs have been instructed not to miss sittings in order to get the required number to carry out their objective, thus removing the Finance Minister, Ken Ofori-Atta from office.
According to Mr. Ibrahim, there would be consequences if a member fails to show up.
“The Minority Chief Whip, Muntaka Mubarak has sounded a note of caution to all Minority MPs that all the 136 MPs must be in the chamber on Thursday, so any member who absents himself on Thursday is at his own risk…On Thursday, whether we want Ken Ofori-Atta to be impeached or censored, the opportunity is being given to us,” he said.
According to him, the Finance Minister will also be allowed to defend himself on the same day.
For the vote of censure to succeed, 183 MPs must vote for it. With the Minority having only 136 MPs, 46 NPP MPs must join them.
Mr. Ahmed Ibrahim believes the NPP MPs will not back down on their calls to get the Finance Minister sacked.
“Whether the Majority is going to walk the talk to make sure that the motion that they staged, they still stand by it, is over to them. But I strongly believe that per the information and signals I am picking this morning, they are still going to walk the talk,” he said.
The Banda MP said it is important to remove Mr. Ofori-Atta now before the economic situation worsens. He urged the Finance Minister to step down before the vote of censure.
A member of the Finance Committee in Parliament has laid the country’s current economic crisis solely on the doorsteps of President Akufo-Addo.
John Jinapor said the woes is due the unprecedented and reckless borrowings by his government.
According to him, despite the global economic situation, there is nothing to show for the huge borrowings.
President Akufo-Addo
“The [crisis] is a Nana Akufo-Addo problem. There is a problem and what we are witnessing now is unprecedented. Something must be wrong somewhere because of excessive borrowing. We are borrowing as if there is no tomorrow. Going forward, government must move away from reckless borrowing”, John Jinapor said in an interview with Citi TV on Monday.
The Yapei Kusawgu MP added that the government’s failure to invest in productive sectors is sinking the economy.
“Managing an economy is not only about today but the short, medium and long term. If you borrow and invest it in productive sectors, it spurs economic growth, creates jobs and generates more revenue and can deal with the headwinds”, the MP added.
Recent international ratings that saw Ghana’s economy downgraded to reflect the country’s inability to fix its liquidity and debt challenges.
With limited access to the international financial market and challenges with domestic revenue mobilization to rescue the situation, Ghana has now turned to the International Monetary Fund (IMF) for a US$ 3 billion bailout.
However, President Akufo-Addo addressed the nation on Sunday, October 30, about measures his government was taking to curtail the current economic crisis.
In his address, the President hinted at possibly securing a deal with the IMF by the end of the year.
According to him, the country is likely to arrive at an agreement by December to get the crucial bailout it seeks.
Amidst the general economic difficulties facing Ghanaians, the President in the address to the nation on Sunday insisted that the government is committed to ensuring that the economy is back on track.
A Governance Expert Professor Baffuor Agyeman-Duah has said he supports the call by the New Patriotic Party (NPP) Members of Parliament to the President to sack his Finance Minister Ken Ofori-Atta and the Minister of State at the Finance Ministry Charles Adu Boahen.
Prof Agyemang Duah said he personally made this call in the past when the economy started deteriorating.
Speaking in an interview with TV3’s Alfred Ocansey on the Ghana Tonight show, the CEO of the Kufuor Foundation said “I will be a hypocrite if I say I don’t agree [with the calls] because personally, I have made this call over the past several months since the economic started nose down.”
Pressure is being mounted on President Akufo-Addo by some Ghanaians including his own Members of Parliament, to sack the Finance Minister Ken Ofori-Atta and Mr Adu Boahen.
The Majority caucus in Parliament have threatened to boycott the presentation and debate on the 2023 budget statement if President Akufo-Addo does not remove Mr Ofori-Atta and Adu Boahen.
The NPP MPs believe that the prevailing economic situation in the country does not make it right for the two gentlemen to remain in office hence the President must ask them to go.
Addressing a press conference in Parliament on Tuesday, October 25, a lawmaker for Asante Akyem North, Andy Appiah Kubi said “We are unhappy with the developments in the country, we consulted our constituents who also expressed same sentients.
“We want the President to remove Ken Ofori and Chares Adu Boahen.
“We are by this medium communicating our strong desire that the President changes the Minister of Finance and the Minister of State in the Finance Ministry without further delay.
“We want to serve notice, and notice is hereby served that until such persons as aforementioned are made to resign or removed from office, we members of the Majority Caucus here in Parliament will not participate in any business of Government by or, for the president by any other Minster.
“We hope that those of us in the back bench and members of the Majority caucus will abide by this prayer.
“We are saying that if our request is not responded to positively, we will not be present for the budget hearing neither will we participate in the debate.
Minister for Information, Kojo Oppong Nkrumah has stated that President Akufo-Addo’s engagement with identifiable economic groups and institutions in the country has been fruitful and smooth and the deliberations has largely focused on the need to restore economic stability.
He said this when he addressed the press at the Jubilee House on 26 October 2022, at the end of two days of broad consultations between the President and multiple groups and stakeholders in the country’s economic space.
Amongst the groups the President held meetings with are; Association of Ghana Industries (AGI), Ghana Association of Bankers, Ghana Private Road Transport Union (GPRTU) and Transport Operators.
The rest are Forex Bureau Association of Ghana, Forex Bureau, Market Women, Ghana Employers Association, Private Enterprise Federation, and the leaders of the Trades Union Congress (TUC).
In his interaction with the identifiable bodies, President Akufo-Addo, according to Kojo Oppong Nkrumah, briefed them on the state of negotiations between his government and the International Monetary Fund (IMF) and the implications of a possible programme with the fund on the country’s economy in the coming weeks and in the long term.
“Cost of living has been big on the agenda, the currency is being big on the agenda but item number one has been stability, restoring economic stability and then on the back of that, looking to how we can bring back so growth and expansion on the Ghana economy. These discussions have gone very smoothly” Oppong Nkrumah said.
“Our expectation is that all of these will form a part of what the President and cabinet will be considering over the weekend prior to making some decision and then on Sunday, he [President Akufo-Addo] will have the opportunity to address the nation and we take the steps from there” he added.
President Akufo-Addo’s engagement with economic groupings in the country and the upcoming Cabinet retreat follows the challenging state of the country’s economy as a result of the hit it has suffered from the COVID-19 pandemic and the impact of the geo-political war ongoing between Russia and Ukraine.
The entire global economy according to financial expects is slipping into recession as the World Bank warns that it will take all the countries of the world several decades to pay off the debts they have accumulated over COVID-19 spending in the last two years alone.
The Majority Caucus in Parliament on Wednesday issued a tempered statement following a surprise announcement on Tuesday by some of its members who had called for the removal of Finance Minister Ken Ofori-Atta and Minister of State for Finance Charles Adu Boahene.
Wednesday’s press statement by the Majority Caucus, signed by Osei Kyei-Mensah-Bonsu, MP, Majority Leader and Minister for Parliamentary Affairs, confirmed a much anticipated, but quick, meeting between President Nana Akufo-Addo and his party’s MPs about the surprise announcement, with Members of Parliament (MPs) of the governing National Patriotic Party (NPP) pledging to back the President.
Sources at Jubilee House had earlier indicated that the call for the removal of the Ministers for Finance had caught the Presidency by surprise.
According to the statement, the President has requested that the matter be delayed and “acted upon” after “the conclusion of the round of negotiations with the International Monetary Fund (IMF)” as well as the next presentation of the budget statement and economic policy”. This is to be followed by the passage of the Appropriation Bill, which is also a few weeks away.
The Majority Caucus, in their press statement, said that after internal discussions among their rank and file on Wednesday, they had “agreed to accede to the President’s appeal”.
In the meantime, analysts have pondered over the timing of Tuesday’s surprise announcement with looming fears over the uncertainty of the state of the country’s economic health should the Finance Ministers step aside, especially at a watershed moment. The two are currently leading negotiations on Ghana’s 17th return to the IMF. They are also in the middle of a yet-to-be finalised debt restructuring programme.
President of the Republic, Nana Addo Dankwa Akufo-Addo, in an emergency meeting with leadership and members of the New Patriotic Party (NPP) majority caucus in Parliament Tuesday, expressed regret on the approach taking by some 80 of them in their call for the removal of Ken Ofori-Atta and Charles Adu Boahen, as Minister of Finance and Minister of State in charge of Finance, respectively.
In a meeting that was cordial but tense, both sides, sources say, ended the meeting with deeper understanding of each other’s standpoint, with the common belief that the interest of the government, party and nation are paramount and need not be in conflict.
The President, in a passionate, eloquent but sober manner, told the NPP MPs that he would have expected those among them calling for removal of the two men to have first come to him directly on the matter.
There he could have also put his viewpoint and if they were not satisfied with his response then they would have been perfectly understood to advise themselves otherwise.
He told them, the nation was going through economic difficulties and the Presidency was open to ideas from an important arm of the ruling party, such as MPs, on the best way forward. But, the approach may matter as much as the message itself.
Majority Presser
In a press conference held at the foyer in Parliament Tuesday, Andy Appiah Kubi, MP for Asante-Akim North, the spokesperson for the group, demanded the resignation of Ken Ofori-Atta, and Charles Adu-Boahen over the management of the economy.
According to the group of MPs, they will not participate in any government business that involves the Ministry of Finance or have any dealings with the Finance Minister or the minister of state for finance, until both men leave the government.
“We have had occasion to defend allegations of conflict of interest, lack of confidence and trust against leadership of our Finance Ministry. The recent developments within our economy are of great concern to the greater majority of members of our caucus and our constituents.
“The summary of our concern leads to the plea that the Minister of Finance, Ken Ofori-Atta, and the minister of state at the Ministry of Finance, Charles Adu Boahen, should be removed from office.
“Meanwhile, we want to serve notice that until such persons as aforementioned are made to resign or removed from office, we members of the Majority Caucus here in Parliament will not participate in any business of government by or for the president or by any other minister” Appiah-Kubi said when he addressed the press.
“If our request is not responded to positively, we’ll not be present for the Budget hearing, neither would we participate in the debate,” Appiah-Kubi added.
Wrong approach
The President made it clear to his MPs and the party delegation led by National Chairman Stephen Ntim, that his office has no record of any petition or request for a meeting by the MPs themselves, through the party leadership or the leadership of the majority side in Parliament on the subject matter.
Yes, he has been aware of murmurings, but the approach adopted took him by surprise and that was not the best. An Asaase News source who attended the meeting held also on Tuesday 25 October 2022, at the Jubilee House, says the President also described the timing of the resignation call as ill.
There have been growing calls for the removal of the Finance Minister due to the high levels of anxiety as a result of the persisting economic challenges exacerbated by the steep cedi depreciation.
The timing for the dismissal call, President Akufo-Addo, stressed, was not optimal due to the following reasons:
His government has 20 days more to present the 2023 Budget, which is intrinsically linked to the IMF negotiations. So there is a the need to appropriately reflect the priorities of the IMF negotiations in this critical budget. He called on his MPs to not lose sight of the importance of maintaining focus.
Both Ofori-Atta and Adu Boahen have been leading Bilateral/ Multilateral Negotiations to secure additional funding to support the budget and Ghana’s development programme in line with the manifesto promise of the party.
The President was also clear that the ruling party could not afford any delay in either in concluding the debt sustainability agenda of the country or in securing the IMF programme itself.
He was in doubt over the duo’s determination to conclude the IMF negotiations, secure additional funding and finalise the 2023 budget and appropriation to bring relief to Ghanaians. “You do not change a captain who is steering the ship out of a storm”, he stressed.
There are also concerns over likely negative reaction of the market to new leadership who may not be privy to earlier discussions.
Inspite of all the challenges With the wealth of network and experiences built over the years and on the job, he asked for the two be allowed to finish with the budget and IMF negotiations, and if at the end the vast number of them are still not happy, he has no problem with listening to their concerns and taking the appropriate steps to address them.
For the President, given the exigencies of recent challenges, while he understands the anxieties this is also the time for calm heads.
Consultation
Majority leader, Osei Kyei Mensah-Bonsu, according to the source, welcomed the sentiments expressed by the President and told him that the leadership of the majority caucus of Parliament will meet with the MPs demanding the resignation of the Finance Minister and they will consult the “old lady” and revert to him.
NPP MPs are meeting Wednesday afternoon on the matter. Asaase News is gathering that some of the ringleaders are still adamant that the duo must go.
However a large number of the backbenchers who were also for the removal are now shifting to the side of the argument that the two must be allowed to first prepare the budget and conclude the IMF negotiations.
Asaase News further learns that some are even planning another press conference to say the position stays and there are moves to organise a demonstration against the duo.
Party position
The Chairman of the New Patriotic Party (NPP), Mr Stephen Ayensu Ntim, who was present at the meeting, said the party was fully behind both the Government and the Majority Caucus.
However, he added that the party will await the outcome of the proposed consultation between leadership and the MPs to determine the way forward.
On Tuesday, October 25, about 80 Members of Parliament within the governing New Patriotic Party (NPP)were reported to have signed a petition demanding the removal of Ken Ofori-Atta as finance minister.
The group, through a press conference, also demanded the removal of Charles Adu Boahen, who serves as a Minister of State at the finance ministry; a close ally of Ken Ofori-Atta.
The MPs explained that their position follows several concerns over the poor management of the economy, which has forced the government to seek IMF assistance.
The group added that should the president fail to heed to their call, they will no longer do business with the government nor support the 2023 budget.
The MP for Asante-Akim North, Andy Kwame Appiah-Kubi, who introduced himself as the spokesperson for the Majority Caucus, said that several concerns raised on economic management have been sent to government, but are all yet to yield the intended results.
In the wake of the development, some Ghanaians on social media have lauded the confidence of the majority MPs.
Although President Nana Addo Dankwa Akufo-Addo has on numerous occasions backed down against calls to change his finance minister, the pressure now appears to be mounting from within his own party.
Some citizens have also already concluded that the president would likely not dismiss Ken Ofori-Atta, basing their assumption on the close family ties Akufo-Ado has with the finance minister.
While this is yet to come to fruition, GhanaWeb Business has compiled a list of potential candidates who are likely to be the best replacements if Ken Ofori-Atta is taken off the job at the Ministry of Finance.
Dr Mark Assibey Yeboah
Dr Assibey-Yeboah is a former Chairman of the Finance Committee of Parliament. During his tenure as chair, he led many engagements toward sound economic indicators of government.
He has also earned himself a reputation for being an economic guru among his peers.
Prior to Ghana returning to the IMF, Dr Assibey-Yeboah warned of harsh economic conditions and therefore called on the government to resort to the Fund at an earlier time ahead of its July 1, 2022 decision.
He also cast doubts on the government’s ability to raise the projected GH¢6.9 billion revenue target from the controversial Electronic Transfer Levy (E-Levy), insisting they would not be able to realise the intended target – a prediction which came to be.
Dr. Assibey-Yeboah holds a BSc (Hons) in Agricultural Economics degree from Kwame Nkrumah University of Science and Technology (KNUST). He also holds an MS (Agricultural and Resource Economics) from the University of Delaware, USA.
He has earned an MA and a Ph.D. both in Economics from the University of Tennessee, USA specializing in International Macroeconomics, Monetary Economics and Econometrics.
Dr Assibey-Yeboah has worked in various capacities, locally and abroad. He has served as lecturer at the University of Tennessee, USA and worked in a similar capacity as an Adjunct Faculty at Milligan College, Tennessee-USA.
The former lawmaker has also served as a senior economist at the Bank of Ghana and has been a lecturer at the Ghana Telecom Technology University College and Ghana Institute of Management and Public Administration (GIMPA).
Professor Gyan-Baffour
Prof. George Yaw Gyan-Baffour is a Ghanaian development economist. He was in charge of the former Ministry of Planning, Monitoring and Evaluation.
He is credited for the introduction of Ghana’s first Monitoring and Evaluation mechanism which was used for assessing the progress of national development and dubbed the ‘Annual Progress Report’.
Despite the ministry no longer being in existence, the mechanism continues to be used in the monitoring and evaluation tool of Ghana’s development agenda.
He also supervised the preparation of the Coordinated Program for the Economic and Social Development of Ghana (2002-2012), which is a constitutional requirement for the President of the Republic of Ghana.
Prof. Gyan Baffour is also credited for leading the team that prepared Ghana’s first compact under the Millennium Challenge Account.
Prior to leaving for the USA to further his education, Prof. Baffour worked at the Ministry of Industrial Science and Technology from 1974 to 1984.
He is a fellow of the Institute of Chartered Economists of Ghana and has served on various boards of institutions, including the Bank of Ghana.
He holds a Ph.D. from the University of Wisconsin, Madison in Industrial Relations; a Post Doctorate diploma from Harvard University, John F. Kennedy School of Government; an MA in economic policy from University of Wisconsin, Madison; a BSc. (Hons) degree in Economics from the University of Ghana.
Kwame Pianim
Kwame Pianim is not a stranger when it comes to finance and economic management in Ghana.
The renowned economist is a management and investment consultant who has served in various capacities in government and the private sector.
He served as an Economic Research Officer of the United Nations-USA, from 1964 to 1970.
He was the Acting Principal Secretary of the Ministry of Finance and Economic Planning from 1970 to 1972 and served as Deputy Managing Director of Ghana Aluminum Products Limited, Tema. He was also Chief Executive Officer of the Ghana Cocoa Marketing Board from 1978 – 1979.
The veteran economist also served as the Chairman of Ghana Financial Services Limited at Bayport Financial Services Limited and was the Chairman of the Public Utilities and Regulatory Commission (PURC).
Kwame Pianim attended Achimota Secondary School and holds a B.A. Double Honors in Economics and Political Science from the University of New Brunswick, Canada (1963) and M.A. in Economics from Yale University (1964).
With additional files from the Chamber of Independent Power Producers
Dr. Ernest Addison
Dr. Ernest Kwamina Yedu Addison is an economist and the 15th Governor of the Bank of Ghana.
He attended the Methodist College and the Mfantsipim School for his primary and secondary education. Dr. Addison then proceeded to the University of Ghana and earned a Bachelor of Arts Degree in Economics from 1982 to 1986.
From 1987 to 1989, he obtained an M.Phil in Economics and Politics from the University of Cambridge in England and later a Doctor of Philosophy degree in Economics from McGill University in Canada.
Before he was appointed Governor of the BoG, Dr. Addison served as the former Director of Research at the Bank of Ghana from 2003 to 2011, as well as an Economist at the African Development Bank.
He specializes in financial policy and economic management.
One person has been injured and at least one vehicle has been set on fire following a dispute over a piece of land in Central Dzorwulu, Accra.
The police in a Facebook post on Tuesday, October 25, 2022 , indicated that the burnt car belonged to two men who hired some thugs to destroy a four-bedroom flat.
“The Police responded to the scene to restore calm. Police later had information that one of the vehicles belonging to the suspects, Nana Owusu Banahene and James Quainoo, run into a ditch and was attacked by a mob who pelted them with stones, injured one of the suspects, James Quainoo, and set his car ablaze,” the police added.
The thugs in an attempt to flee from the police whilst executing the assigned task entered into a ditch.
Information gathered by the police shows that before the demolishing began, the perpetrators attacked the occupants of the house.
On Monday, October 24, 2022, a video which saw a middle-aged man driver bleeding profusely in the middle of the streets went viral on Twitter.
A voice was heard from the video stating that someone had been shot.
However, the police have thus far established that nobody was shot during the incident as per what has been circulated.
The law enforcement body, have also stated that the two culprits are in police custody.
In the meantime, while efforts are being made to apprehend all of the other culprits, the injured suspect is receiving medical care at the hospital.
Also, the police has asked the public to maintain calm adding that it is in control of the situation and would update the public on any development.
“The Police are in control of the situation and calm has since been restored. We, therefore, wish to urge the public to remain calm. Further developments will be shared in due course,” the police added.
