The ongoing debate regarding the performance of Akuffo Addo’s administration compared to that of John Dramani Mahama’s has reached a point of contention.
Former Minister of Finance, Seth Tekpe has revealed that assertions made by the ruling New Patriotic Party are misleading and fail to acknowledge the financial buffers and funds left by Mahama’s government, including the remainder of the 2015 IMF Extended Credit Facility (ECF).
Critics argue that the alleged non-performance of Mahama’s administration is being overshadowed by the New Patriotic Party’s (NPP) accounting practices, such as the controversial 2.3% of GDP “offset” added to the 2016 deficit.
“From 2014 to 2016, the Mahama government was actively reducing debt, utilizing mechanisms like the Sinking Fund to manage obligations, including the NPP’s 2017 bond. In stark contrast, the forecasted legacy at the end of 2024 under the current administration appears grim. Issues such as default, debt “haircuts,” and the suspension of debt obligations, which will burden future governments and generations, are becoming increasingly prominent.
The government has been repeatedly reminded to cease making false claims regarding their economic management. The Energy Sector Levy Act (ESLA) and GETFund, which have been generating revenue since the 2015 ECF, were collateralized and are now in default. Additionally, the Enhanced Road Levy, intended to support contractors through government bonds, is also in default following the debt “haircuts” He added.
Additionally, he explained that the Sinking and Contingency Funds, along with reserves managed by the Ghana Infrastructure Investment Fund (GIIF), were not central to the 2015 ECF because they were “home-grown” initiatives, not dictated by the IMF. Furthermore, it is worth mentioning that commercial and other lenders did not exhibit leniency towards Ghana on the path to Board approvals and reviews.
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https://x.com/SethTerkper/status/1817738451640283611
