Akufo-Addo/Ken Ofori-Atta Being Crucified For The Sins & Fiscal Recklessness Of John Mahama/Seth Terkper | Features

The fiscal recklessness of John Mahama and Seth Terkper between 2013 and 2016 has visited the heads of Akufo-Addo and Ken Ofori-Atta in 2022, and as a part of normal African politics, NDC Members of Parliament are desperately twisting info and altering the narrative to follows their come again to energy on December 7, 2024.

It is true that Ghana is closely in money owed, forcing Credit Rating Agencies to downgrade Ghana, stopping Ghana to borrow from the External Money(or Financial) Market and thereby resorting to bailout from the IMF after Government failed to realize the income goal from the E -levy.

The query many Ghanaians can be asking, is it the fault of Akufo-Addo's Government solely or Playback of the adversarial results of John Mahama's fiscal recklessness?

The NDC Members out of mischief propaganda, and a few NPP Members out of ignorance lack of info are collectively blaming Akufo-Addo's Government to the bigger extent Ken Ofori-Atta for the present financial disaster of Ghana.

But from the attitude of Facts and accuracy of Reports, it's NOT fully True that Akufo-Addo's Government and Ken Ofori-Atta are to be fully blamed for the Fiscal Recklessness of Ghana.

For Monetary Recklessness, it's the sole accountability of the Bank of Ghana and its management. No one can blame the Cedi-Dollar points on Ken Ofori-Atta as a result of that's NOT his accountability because the Finance Minister.

For the aim of this Article, I might restrict myself to the Fiscal Recklessness of Ghana for the reason that interval of 2007 and 2022.

The debt disaster of Ghana is basically because of lending and borrowing(new money owed or loans) not being adequately sufficient to generate enough income or assets to repay them on a well timed foundation. Ghana's Government loses round 30% of income to External Debt Payments annually.

The World Bank and IMF on account of stress from the Global Jubilee Movement arrange two Debt Relief Schemes referred to as the Heavily Indebted Poor Countries Initiative(HIPC) and Multilateral Debt Relief Initiative(MDRI).

Former President Kufuor's Government took benefit of this transfer and went for debt cancellation beneath HIPC. As a results of HIPC transfer by Kufuor, the External Debt of Ghana fell from $6.6 billion in 2003 to $2.3 billion in 2006.

2. Ghana's loans elevated quickly from 2008 to 2011.
Between 2007 and 2015, there have been $18.2 billion of External Loans and $8.7 billion of Debt Payments.

3. External Debt of Ghana grew from $14.7 billion in 2013 to $21.1 billion in 2016(a rise of 44%).

4. The Depreciation External Debt of Ghana gone up from 30% of GDP in 2013 to 56% in 2016(a rise of 87%).

5. In 2013, the worth of the Cedi towards the Dollar fall by 50%, inflicting the dollar-denominated measurement of Ghana's economic system to fall from $47.8 billion in 2013 to $36 billion in 2015.

Because External Debts are owed in Dollars or different Foreign Currencies, this in flip elevated the relative measurement of the Debt and Debt Payments of Ghana.

Ken Ofori-Atta as a Finance Minister wanted to hold this heavy burden created by Seth Terkper and John Mahama's Government.

6. Seth Terkper beneath the instruction of John Mahama borrowed more cash via $1 billion of bond issued every in 2013, 2014 and 2015, all beneath English Law.

According to main Global Experts, this is likely one of the "MOST STUPID BOND TRANSACTION EVER".

The rates of interest on the brand new money owed had been excessive, rising from 7.9% for the 2013 bond issued to 10.75% for the bond issued in October 2015.

A purchaser of John Mahama/Seth Terkper bond in 2015 is already assured of $1.15 billion and Ghana will nonetheless owed $1 billion and Interest Payments of $860 million.

The World Bank has to broke its personal guidelines as a result of incompetence of John Mahama and Seth Terkper by guaranteeing $400 million of funds if Ghana's Government fails to pay.

The increased rate of interest and assure by World Bank signifies that if Ghana had been to pay the curiosity yearly till 2024 then Default on all different funds from 2025 together with the Principal, the Bond Speculators would nonetheless have made a revenue of $90 million from Ghana's Government greater than if that they had sluggish to the Government of the United States of America.

This implies that, the Bond Speculators lent to John Mahama's Government realizing and believing that, there was a better probability that they'd not be absolutely repaid by Mahama's Government.

Ken Ofori-Atta when took over because the Finance Minister has to hold this unlucky burden created by John Mahama and Seth Terkper.

7. Akufo-Addo's Government inherited Huge Debt created by John Mahama/Seth Terkper within the Energy Sector on account of power-purchase settlement.

Ken Ofori-Atta has up to now paid over GHS 12 billion as the price of extra power capability costs inherited from John Mahama's Government.

8. John Mahama's administration signed a monopoly contract beneath the Sankofa Gas Pipeline Deal for 20-25 years. Per the phrases and situations of this monopoly contract, Akufo-Addo's Government had no alternative however to proceed with the contract funds. This has created a nasty monetary scenario for the Country as a result of Government is unable to cut back the price of energy/electrical energy for thermal technology.

Ken Ofori-Atta has been paying $46 million month-to-month and $552 million yearly as a debt for Sankofa Gas Pipeline Project left behind by John Mahama and Seth Terkper.

Ken Ofori-Atta on behalf of Government has paid $3.6 billion previously nearly six years for the Sankofa Gas Pipeline Deal.

9. Akufo-Addo's Government inherited GHS 1.2 billion NHIS Debt from John Mahama/Seth Terkper.

The GHS 1.2 billion NHIS Debt was accrued between 2013 and 2016. Akufo-Addo's Government via the Finance Minister cleared all of the GHS 1.2 billion Debt brought on by John Mahama/Seth Terkper.

10. John Mahama/Seth Terkper left behind a deteriorated Banking/Financial Sector.

Akufo-Addo's Government offered options to the inherited Banking/Financial Crisis.

The Banking/Financial Sector Clean-up Exercise price Akufo-Addo's Government of GHS 25 billion and this protected the Savings of over 4.6 million Depositors who're largely Ghanaians.

11. Akufo-Addo's Government is anticipated to pay in full over GHS 10 billion debt to Contractors beneath the Ghana Chamber of Construction Industry(GhCCI). Larger a part of this debt was left behind by John Mahama's Government.

12. It took Ken Ofori-Atta to abolished 11 Nuisance and Killer Taxes in addition to reviewing 4 different killer taxes imposed by Seth Terkper that had been negatively affecting companies in Ghana on the time coupled with 5 years of Mahama's Dumsor.

Moving away from the Fiscal Recklessness of John Mahama/Seth Terkper, it is vital as a Country we think about CANCELING the Payment of EX-GRATIA to Members of Parliament and different Public Office Holders. This is as a result of the Ex-gratia is severely contributing to the Fiscal Recklessness of Ghana thereby placing pointless stress on the nation's purse and Finance Ministry.

1. 275 Members of Parliament who served in Parliament between January 2017 and January 2021 obtained roughly GHS 452,000.00 per head as Ex-gratia.

You can do the easy calculation by multiplying 275 Members of Parliament by GHS 452,000.00.

Ken Ofori-Atta beneath stress from Members of Parliament went to borrow to pay the 275 Members of Parliament, every receiving
GHS 452,000.00.

2. Again in 2017, every of the 275 Members of Parliament obtained a mean quantity of GHS 305, 992.00.

Interestingly, some Members of Parliament who've been in Parliament since 1992, 1996, 2000, 2004, 2008, 2012, 2016 and 2020 have been receiving funds of Ex-gratia on the detriment of the poor lots.

Finally, it's worthy to deliver to the eye of Ghanaians that, Free SHS Policy alone has costed Akufo-Addo's Government over GHS 7.62 billion since its implementation in 2017.

Currently, the financial scenario in Ghana will not be one of the best however we have now to understand the truth that, Akufo-Addo's Government has accomplished effectively in a number of sectors of the economic system.