Nana Slams Mad Rush For Loans

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Friday September 2, 2011.
Nana Addo Dankwa Akufo-Addo, flagbearer of the New Patriotic Party (NPP) has cautioned government to check its reckless borrowing habit because “we may have to revisit our HIPC experience if we don’t borrow responsibly.”

He said the NDC government within a period of about two years has managed to borrow a whopping GH¢10.8 billion, representing an increase of 30.4 per cent in terms of foreign loans but it has not had any meaningful impact on the economy and the lives of Ghanaians.

“This NDC government has had plenty of resources at its disposal because of the expanded economy it inherited, record cocoa and gold prices on the world market, together with revenues from this newfound wealth, oil. To borrow a famous phrase: Na Sika No Wo He? What has been the impact of these massive resources on the lives of the people? Where are the projects?”

The NPP flagbearer was speaking at the maiden edition of the Liberty Lecture in Accra organized by Danquah Institute (DI), a media, research and policy analysis group under the theme “Building a society of opportunities”.

According to DI, the lecture has been instituted to celebrate and recognize “the contributions of the several people and many others that led to March 6, 1957, the birth of Ghana from the Gold Coast.’

Addressing a packed audience including former President John Agyekum Kufuor at the College of Physicians and Surgeons auditorium, Nana Akufo-Addo said “there appears to be a mad rush for billions of dollars of loans, and we mention billions as if we are still in the era of the old billion Cedis.”

The former Attorney General and Foreign Minister who took 1hour and 18 minutes to complete his lecture said even though the newfound oil gives the government a ‘fiscal space’ to borrow more money to speed up development it has to “proceed responsibly” so that the external debt would not overwhelm the country’s ability to ensure accelerated development.

He described as unfair the criticism leveled against the minority in parliament for seeking the properly scrutinize mega loan agreements entered into by the government insisting “minority deserves commendation rather than condemnation for living up to their responsibility of insisting on financial scrutiny.”

Nana Akufo-Addo said “their (minority) warnings against the $1.5 billion STX Supplier’s Credit Facility were dismissed as the shrill cries of a jealous and jilted group who are not interested in the welfare of the security forces. Now, we are told that the Castle has become the Alternative Dispute Resolution centre for the estranged partners of STX, while the only developments at the commissioned sites for the STX housing are growing weeds.”

“We must welcome the readiness of the world’s fastest growing large economy to provide Ghana with the needed credit to accelerate our development. But, since it is a relationship of mutual needs, ‘I have oil you have money’, it is the duty of our government to get the best deal for Ghana.”

He said a careful scrutiny of the $3billion Chinese loan facility, plus $450 million (or 15%) counter-funding from Government appears to him that the country has been shortchanged in the deal saying “a commercial loan facility such as this that guarantees a minimum of 60 per cent Chinese content, rather than a minimum of 40 per cent local content, cannot be the best.”

Nana Akufo-Addo who also touched on virtually all issues impeding the country’s accelerated growth said the provision of quality and accessible education, job creation, improved agriculture and the creation of a congenial atmosphere for the private sector flourish would be the next NPP government’s main agenda.

He said the provision of quality infrastructure, improved health facilities, water and sanitation problems would be solved and added that the welfare of women, children, physically challenged and the vulnerable would not be left out.
He said free education from basic to secondary school is still strong on his card.

He also promised to show commitment towards his 2008 promise to set up a development fund for the three northern regions and added that the 2012 Manifesto of the NPP will set vivid, detailed goals for the future and get Ghanaians to own it and have the discipline, dedication and determination to make it happen.

“I believe that Ghanaians are not fated to be a mere audience at the theatre of great performance and achievement. We are capable of mounting the stage and putting up our own show. We have a choice to admire what others do or to motivate ourselves to do what we admire. It is our choice. We can choose to watch and marvel or to take up the challenge and opportunity to be counted. This country can be better than we ever thought it could be,” he said to a wild applause.