POLICE SNUB RAWLINGS

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Thursday, July 09, 2015

Former President, Jerry John Rawlings is angry over violence-filled Talensi by-election on Tuesday which ruling NDC candidate, B.T. Baba emerged winner.

He wants perpetrators of the violence punished to serve as deterrent to others.

No has arrest has been made by the police betraying the request of Mr Rawlings.

The NDC founder had said “a strong message has to be sent to persons intent on institutionalizing violence, especially during election periods. And the security agencies should enforce the law without fear or favour and without any political bias whatsoever.”

The former President expressed the concern in the wake of violence between supporters of the ruling NDC and opposition NPP during the by-election in the Upper East Region.

He said news about the situation in Talensi was a matter of grave concern and the law enforcement agencies should act with dispatch to apprehend all those known to have participated in the acts of violence, assault, shooting and vandalism.

Members of the NDC and the NPP engaged in a free for all fight amid gunshots in the Talensi constituency leading to some casualties in spite of the huge presence of police cum military as well as other security agencies.

There were concealed weapons in some vehicles that were entering the area and the security agencies were able to intercept some of them even though they surprisingly did not arrest persons possessing the weapons and allowed them to go unpunished.

There were news of attacks on high profile personalities from both the NPP and the NDC.

The NPP’s first Vice Chairman, Freddie Blay, former General Secretary Kwadwo Owusu Afriyie aka Sir John were among those who were attacked while they were monitoring the election in some interior areas on the constituency, by thugs believed to be connected to the NDC’s Azoka Boys.

The Builsa North District Chief Executive’s official car was also vandalized by some youth in front of the NPP constituency office.

NDC’s notorious Azorka boys stormed the constituency with its leader, Sofo Azorka, who is the party’s Northern Regional Chairman, in front and allegedly attacked NPP supporters in a broad daylight in the presence of the police and the Interior Minister, Marko Woyongo who has since justified the attack.

No Arrest

However, the police say nobody has been arrested in connection with the bloody attacks.

“We also mounted snap checks at strategic locations within the constituency and all highways leading to the constituency.  Our intelligence teams were also firmly on the ground.

“Generally, these policing strategies and measures worked perfectly with isolated incidents of violence which we condemn in no uncertain terms.  Indeed, at various snap checks points, a number of offensive weapons including cudgels, cutlasses, daggers, guns and ammunition were seized from a number of individuals.  

“All the holders of the offensive weapons were properly identified for purposes of further investigations and possible prosecution. They were thereafter allowed to participate in the process and exercise their franchise where applicable after we established that they posed no further security threats”, a statement from the Police Affairs Directorate and signed by 

DCOP David Nenyi Ampah-Bennin, Director-General said.

The statement said that all political vigilante groups henceforth would not be tolerated naming such groups as Azorka Boys, Bamba Boys, Invincible Forces and Bolga Bull.

“The Police recognizes the constitutional rights of individuals to form and belong to associations, as provided in Article 21 (1) of the 1992 Constitution.  However, we want to emphasize that it is unlawful for political parties, groups, organizations or individuals to encourage the formation of vigilante groups and other associations that assume the character of a security organization, unless that person, group or organization has been granted a licence for that purpose under Police Service (Private Security Organisation) Regulation, 1992 (LI 1571)”.

NDUOM CONDEMNS NDC VOTE-BUYING IN TALENSI

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Thursday, July 09, 2015

Founder of the Progressive People’s Party (PPP), Dr Papa Kwesi Nduom says the ruling National Democratic Congress (NDC) used state resources to induce voters in the just-ended by-election in Talensi.

In the run-up to the by-election in the Upper East Region, there was accusation that the ruling NDC was deeply engaged in vote-buying, pulling all the stops including fertiliser bribery, cash donations, flat screen TV, mobile phones, 24/7 full electricity supply among others.

Before voting commenced on Tuesday, Dr. Nduom posted on social media platform Facebook, indicting the NDC, which eventually won the by-election, on their vote-buying tactics.

He said “is this the democracy many fought for? What has happened in Talensi is something to be ashamed about.”

“What is most disturbing though is the money very visibly used to influence the people - tons of it. Where did it come from? Is my tax money in there?”

He said “if we let this Talensi situation become the norm, what will be the point? Politics of stealing, bribery, violence will lead to more poverty and despair in a nation with no excuse not to be prosperous. What a shame!”

Dr Nduom asked “and what happened to ideas? Then the threats, intimidation and ultimately violence - so the party that succeeds in showing more muscle gets the vote and that is democracy Ghana style?”

“I got my first hint of this when an NDC man rushed up to us near the Catholic Church in Tongo to ask what I was doing there when his party had booked the place for a rally. It was a Sunday morning. I am a Catholic and was there to attend mass!”

“I was there. Where we were (PPP) was always peaceful. There was productive interchange about what the people needed - better education, infrastructure of all types, healthcare facilities, jobs, jobs, jobs. You could see lights go on in people's faces when we described what can be and how good and different life can become.”

“We could feel the poverty in the land. It was visible, staring us in the face. And this is what is fueling the politics of stealing, violence and bribery. Must it take an election for government to put up streetlights, tar a few yards of road and dress up others?”

GHANA JOINS HAITI IN IMF’S DISTRESSED LIST

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Tuesday July 7, 2015

Economics and finance expert, Dr. Mahamudu Bawumia says Ghana now requires International Monetary Fund (IMF) approval to be able to borrow for projects because of its vulnerability.

Ghana, Dr Bawumia said joins the likes of Haiti, an earthquake ravaged country which Ghana had to support with $3million cash to support them when the quake hit the Central American country.

“Today, the IMF has classified Ghana as a country at High Risk of Debt distress. In this regard, any major borrowing for projects to be undertaken by Ghana would now require prior IMF approval,” the New Patriotic Party (NPP) running mate for the 2016 election said in London at the weekend.

Addressing the Young Executive Forum – UK, a group associated with the NPP on the state of Ghana’s economy, the former Deputy Governor of Bank of Ghana said that other countries similarly classified as being at High Risk of Debt Distress included Afghanistan, Burundi, Central African Republic, Chad, and Haiti and asked “Is this the independence our forefathers fought for?”

Loss Of Confidence

He said that “Ghana appears to be having problems servicing her debts and this is making investors lose even more confidence in the economy,” adding “There is word out there in the international financial markets that Ghana has recently defaulted on its debt to Standard Bank for the financing of the Teshie Desalination project.”

“It is very important that the government quickly denies this if it is untrue or rectify the situation if it is true. Again, this government should remember that Ghana’s international debt obligations cannot be treated in the same way as obligations to the DACF or GETFund where arrears are incurred with impunity.”

He said that the implications of Ghana defaulting on the international debt obligations “are severe for the country’s reputation.”

Repaying Debts

He said that the difficulty in servicing or repaying debts had also led to the recent offer by the Minister of Trade and Industry to the Destination Inspection Companies (DICs) of contracts in exchange for helping government to settle its judgment debt.

“Of course, the Ministry of Finance has denied any knowledge of this incredible offer but I must say that it is highly improbable that the Minister of Trade would make such an offer without consent at the very highest levels.”

Capital Expenditure

Dr. Bawumia said that notwithstanding the massive increase in the debt stock, capital expenditure as a percentage of GDP had actually been on the decline from 9.1% of GDP in 2008 to 4.8% by 2014 and added that capital expenditure as a percentage of GDP averaged 11% for 2001-2008 without oil while that for 2009-2014 has averaged 6% with oil.

“This means that contrary to all the government claims of an increase in infrastructure expenditure on projects all over the country, the reality is that Ghana’s expenditure on infrastructure is declining,” he said.

HIPC Scenario

Dr. Bawumia said that at 67% of GDP in 2015, Ghana’s debt stock had crossed the critical 60% of GDP level that developing countries with limited access to capital flows should worry about in terms of debt sustainability adding “In fact, Ghana is right back to the debt unsustainability that led to HIPC.”

Cedi Depreciation

He said that in 2014, the cedi depreciated by 31% against the US dollar, making it one of the worst performing currencies in Africa in 2014 and the depreciation had continued in 2015, with 27% loss in value between December 2014 and June 2015 thus far notwithstanding the IMF bailout.

“In the last 18 months alone the cedi has depreciated by over 50 per cent! The periods of NDC economic governance has now become symptomatic with the periods of massive depreciation of the currency. Unfortunately, the government appears clueless as to what to do.”

He added: “This reflects a lack of policy credibility on the part of the government and a lack of confidence by investors. This is the price Ghanaians are paying for the government’s lack of policy credibility and weak fundamentals.”

IMF Policy Review

Dr. Bawumia said that even the IMF bailout had not been able to restore confidence by “convincing the markets that the government is committed to turning things around.”

He said the IMF itself has instituted a review of the government performance every four months saying “This is unprecedented for Ghana’s IMF programs and demonstrates a lack of confidence by the IMF itself in the government’s commitment to the program even though they would not publicly say so.”

Rampant Corruption

He said the economy is in tatters because some public office holders are stealing state resources with impunity.

“What we have in Ghana today is not just corruption but corruption with impunity,” adding “it is corruption by people who have no fear for the consequences because they know they can conspire to get away with it.”

He said “these acts of corruption are very costly to the nation and take away the opportunities for government expenditure in critical areas.”

“Former President Rawlings has recently noted that the corruption for which he overthrew the government in 1979 is not up to 10% of the corruption we are seeing today,” he said.

NANA GOES TO COURT OVER APAU’S ‘VODOO’ REPORT

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Monday July 06, 2015

New Patriotic Party (NPP) flagbearer for the 2016 election, Nana Addo Dankwa Akufo-Addo has given an indication to challenge the adverse findings purportedly made against him by the Judgement Debt Commission headed by the newly-appointed Supreme Court judge, Justice Yaw Apau.

According to Nana Asante Bediatuo, counsel for the NPP stalwart, they had written to the Presidency to get a certified copy of Justice Apau’s leaked report in order to seek redress in court without delay.

In leaked Sole-Commissioner’s report, Justice Apau is making adverse findings against Nana Akufo-Addo whose tenure as Attorney-General, Ghana National Petroleum Corporation (GNPC’s) Drill Ship Discoverer 511 was sold to defray debts incurred by the Tsatsu Tsikata when he was the boss of the state-run company.

The Justice Apau report on the drill ship has been described by Journalist Abdul Malik Kweku Baako, Jnr as ‘voodoo’, virtually accusing the sole commissioner of pandering to the propaganda whims of the ruling NDC government.

The drill ship was disposed off by the Kufuor administration to defray a $19.5 million judgment debt owed Societe-General Bank in 2001, the Sole-Commissioner’s report concluded that Nana Akufo-Addo’s “miserable” failure to defend the state in a London court led to a judgment debt higher than what Ghana would have paid.

“This Commission holds the view that the payment of $19.5 million instead of the $14 million earlier on agreed, constituted financial loss to the Corporation and Ghana,” the leaked report concluded.

Interestingly, Justice Apau made the adverse finding even though he never invited Nana Akufo-Addo to hear his side of the Drill Ship saga which took larger chunk of the commission’s sitting, despite the fact that the NPP flagbearer was on record to have volunteered to testify in the matter.

Huge Deficit

An incensed Nana Asante Bediatuo told Joy FM news analysis programme Newsfile last Saturday that although Nana Akufo-Addo was yet to lay his hands on the original report, a cursory analysis of what is contained in the leaked report “suffers from a huge deficit.”

“Let me also say that we have written formally to the commission, copied the Chief of Staff at the Presidency for an official copy because we are not sure what is floating around is it,” he said.

Giving reasons why his client has taken the court option, he said: “We cannot allow a report to be hanging and government chooses not to issue a White Paper so that the issues in the report become issues of fact and people can talk about it and use it to exhale Akufo-Addo. That is wrong!”

Go To Court!

He said “I disagree with those saying that if a White Paper is not issued then Akufo-Addo cannot go to court because every person under the constitution has a right of access to the court especially when his human rights are concerned, when we are talking about the rights of natural justice.”

Nana Asante Bediatuo said “the Commission is an inquisitorial commission. It is not like our normal courts that employs the adversarial process. So the Commission has a higher burden of investigating and interrogating every issue that comes up and looking for evidence in support of one particular fact or another.”

Commission Failed!

“I see that in this particular instance the commission has failed in that endeavour. From what I have seen of the report, there is nothing about the actual cause of this debt which is the original GNPC debt to SG and how it came about and so on. There is a big lacuna there and I don’t understand that,” he lamented.

He said that “it is important that even if you are an inquisitorial commission, a person’s right to be heard should never be taken away.”

Apau’s ‘Innuendos’

He said that there was a lot of “innuendos” in the report and said “I find quiet unfortunate because it seems to me that it doesn’t directly name Akufo-Addo but gives innuendos that any person reading the report will obviously attach the AG to a person Akufo-Addo and I think that is also unfortunate.”

He explained that there were a lot of innuendos because for “he mentions other people’s names directly and not their offices like he mentioned KT Hammond and so on.”

“If they had called Akufo-Addo, perhaps the issue for example of why he didn’t go to the London court which is an issue of discretion in the AG to decide whether to go or not would have been adequately explained to full.”

‘Nonsense’ of a report

Nana Asante Bediatuo said that “as a matter of first principle, the denial of the right to be heard makes some bit of nonsense of the report.”

“It is also clear to us that it is not as though the commission had documents or correspondence that made Akufo-Addo’s presence unnecessary but he does not say so. Documents or correspondence in his own hands that clearly he could then make some of these findings or even if he chose not invite him.”

He said that “if indeed this report about Akufo-Addo is to attack his incorruptibility, I think it is futile, and I think people should stop trying to do that. There is nothing in Akufo-Addo’s background, his profession to suggest corruption. They should just give up.”

Vodoo Maths

Abdul Malik Kweku Baako, Editor-in-Chief of the New Crusading Guide and a regular panelist on Newsfile said the Sole-Commissioner appeared to have engaged in what he called ‘Vodoo Mathematics’ to conclude that Nana Akufo-Addo cause financial loss in the Drill Ship saga.

He explained that the figures relied on to suggest that Ghana paid larger amount than it would have were not calculated based on any concrete evidence or even sound judgment.

Kweku Baako insisted that there was no evidence to back the claim that the $14million was settled on to warrant a conclusion by Justice Apau that the $19.5 million that was paid SG was $5.5 million more than ought to have been paid, saying “this is voodoo mathematics.”

He read a memo purportedly written by a former Chief Executive of the GNPC, Tsatsu Tsikata, addressed to Board of Directors of the Corporation in 1998 admitting that GNPC owed SG $40 million and the journalist said that the decision of the London High court was not without basis and the burden could not have been placed on the then A-G, Nana Akufo-Addo.

“Let Justice Apau and his Commission produce evidence to the effect of this $14 million settlement agreement,” he dared the Sole Commissioner who has suddenly been promoted to the Supreme Court upon completion of his assignment.

CONTEMPT AGAINST CHIEF QUASHED

Nii Ansah Sasraku II

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Monday July 06, 2015

The Court of Appeal has quashed a decision by an Accra High Court to jail Nii Ansah Sasaraku III, Dzasetse of Nii Arde Nkpa family from Kokrobite, Langma and Tuba in the Greater Accra Region for contempt of court.

The court presided over by Justice Elizabeth Ankamah on June 14, 2013 slapped a 30-day jail sentence because the chief was said to have defied a court order.

In the same ruling, the court had warned James Town Mantse Nii Kojo Ababio IV for his alleged involvement in the case.

However, a three-member Justices comprising of Mariama Owusu, K.N. Aduama Osei and Saeed Kwaku Gyan unanimously set aside the High Court ruling after a successful appeal by Nii Sasaraku III.

Initial decision

What landed the chief in contempt was that a court is said to have ruled that Nii Ansah Sasaraku III was not the legally recognized head of the Nii Arde Nkpa Family but with the aid of Nii Kojo Ababio IV, wrote a letter to Nii Arde Nkpa that he has been destooled as the head of family.

The court held that after the installation of Nii Ansah Sasaraku III as the Dzasetse of the Nii Arde Nkpa family, he allegedly imposed himself as the head of the family against a legalized appointed head of the family, Rev. Nii Tackie Tagoe.

Because of the existing confrontation, Nii Sasaraku III then took the family to court seeking an injunction on the head of the family and Daniel Nii Arde Tagoe, the administrator of Kokrobite, Plerno, Langma and Tuba Lands.

A Fast Track High Court presided over by Justice Offei dismissed the application describing it as frivolous and vexatious but Nii Sasaruku III allegedly failed to abide by the court ruling and continued to operate as the Dzasetse and also the head of family and in the process wrote a letter to Nii Arde Nkpa that he had been destooled.

The Dzasetse even went to the extent of appointing head men in the villages and further wrote a letter to the Municipal Chief Executive of Ga South that he had destooled  Nii Arde Nkpa.

Not able to take it anymore, the family initiated contempt proceedings at the High Court in Cocoa Affairs Division against the two respondents and the court jailed Nii Sasaruku III for 30 days.

Appeal upheld

However, not satisfied with the decision, Nii Sasaraku III appealed against his conviction and the second highest court of the land said “there is no evidence surrounding the purported dismissal of the Mantse of Plerno by the appellant into which an interference in the administration of justice or lowering of the image of the court may be read.

The court held that having gone through the records and bearing in mind that contempt ought to be established beyond reasonable doubt, the court found no justification for the conviction of Nii Sasraku III.

“There is no evidence that the acts complained about, or either by them, denigrated or were intended to denigrate the trial court,” the Court of Appeal held.

The court said that the contempt procedure should not provide “an avenue for a litigant to teach a fellow litigant a lesson when on the facts the integrity of the justice system is not at stake.”

The court said on the evidence in the instant case, the integrity of the court was not at stake and it seemed to the court that the initiators of the contempt process were more interested in ‘teaching’ Nii Sasraku III a ‘lesson’ than proceed with the action and obtain the perpetual injunction they had counterclaimed for.

ST JOHN’S GRAMMAR SUED OVER CONCRETE FACTORY

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Monday July 06, 2015

A group of residents of St John’s area at New Achimota in Accra numbering 48 are suing the Board of Directors of St John’s Grammar Senior High School for allegedly releasing part of the school’s land to a private developer.

The group led by one Isaac Ofori-Poku has also added G&E Grup Limited – the private company engaged in pre-mix concrete supplies, the Ghana Education Service (GES) – manager of public schools, the Board of Directors of St John’s Grammar SHS – custodians of the said land, Environmental Protection Agency (EPA) as well as the Ga West Municipal Assembly in the suit.

Reliefs

The plaintiffs are seeking a declaration that the lease of part of school lands to G&E Grup Limited for private business by the school’s Board of Directors “is unlawful and invalid.”

They want a further declaration that the operations of G&E Grup Limited’s pre-mix concrete in a purely residential area at New Achimota “would have dire and serious issues” as well as an order that operations of the private company “is having or likely to have serious adverse health effects on the health and wellbeing of residents of the area.”

The plaintiffs want another order for perpetual injunction against G&E Grup Limited’s operations and additional order restraining the EPA as well as the Ga West Municipal Assembly from granting G&E Grup Limited permit to operate in the area.

They also asked for an order directing the EPA and the Ga West Municipal Assembly to abrogate the lease agreements they have with G&E Grup Limited.

The plaintiffs are claiming that G&E Grup Limited had allegedly refused to procure all the necessary permits from the EPA and the Ga West Municipal Assembly before commencing operations and claimed the company did not take into consideration the health and safety of students of the school and families living in the area into consideration.

They further averred that the GES and the school’s Board of Directors should have known that the purpose for which they leased the land to G&E Grup Limited would have caused a lot of nuisance and harm to the students and staff of the school and residents of the area and should not have leased to the company.

“The operations of G&E Grup Limited’s operation is in breach of the laws of Ghana and should be prevented from operating this kind of business in a purely residential area.”

It is unclear if the defendants had filed their statements of defence as at press time.

JUDGE FIGHTS APAU REPORT

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Friday, July 03, 2015

It has emerged that Justice I.O. Tanko Amadu, the trial judge who caused the payment of a whopping GH¢51.2million judgment debt to National Democratic Congress (NDC) bankroller, Alfred Agbesi Woyome did not order payment of the entire amount.

Rather it was the decision by then Attorney General, Betty Mould-Iddrisu and her deputy Ebo Barton-Odro to authorize the payment after an out-of-court agreement with Mr. Woyome was reached without recourse to the court.

AG’s Application  

According to the document, in granting a stay of execution September 6, 2010 which the Attorney-General applied for, Justice Tanko Amadu had ordered that only GH¢17,094,493.53 out of the total sum of GH¢51,283,480.59 be paid to Woyome.

The trial judge went further to direct that an undertaking be extracted from Woyome as a condition precedent to the partial payment, so that shall he lose the final case, he will refund the sum together with all accumulated interests and costs following any future judicial event.

Woyome’s Obligation

The trial judge unequivocally ordered a stay of execution of the balance of GH¢34,188,987.06 which Betty was not obliged to pay until the fresh case filed by the same Attorney - General was concluded.

“It is therefore obviously inaccurate as the Commission’s leaked report is suggesting that it was the trial judge who ordered the payment of the whopping total sum of GH¢51,283,480.59,” the document claimed.

Entire payment

According to DAILY GUIDE sources, not only did the Attorney–General fail to ensure that Mr. Woyome posted the undertaking, she went ahead to pay the entire sum to him without reference to the court, adding “indeed, all the payments the Attorney – General made in favour of Alfred Woyome were done outside the normal procedure of payment of judgement debts through the court system.”

“Having failed to post the undertaking, Alfred Woyome was not entitled to even the GH¢17,094,493.53 the trial judge ordered the Attorney – General to pay conditionally.”

“It is now clear that these vital matters available to the Sole-Commissioner were deliberately suppressed or that the commissioner simply failed to be diligent but only picked and chose those facts that support other motives than truth and fairness,” the document added.

Leaked Report

The latest revelation appears to contradict a leaked report by the just-ended Judgement Debt Commission headed by the newly-appointed Supreme Court justice, Justice Yaw Apau that accused Justice Tanko of any wrongdoing.

A copy of the report of the Sole-Commissioner tasked to look into the payment of various judgment debts by the state reportedly raised serious issues about the basis and propriety to award and order the payment of judgment debt to Woyome, who thumps his chest as NDC bankroller.

Woyome claimed that the state owed him for job done in the stadia refurbishment for CAN 2008 tournament, the Sole Commissioner rubbished the claim indicting the trial judge for doing a shoddy job as well as Mrs Mould-Iddrisu.

Notorious Case

It said “this Commission finds as a fact that there was no basis for the payment of the sum of over GH¢51million to the plaintiff, Alfred Agbesi Woyome”, describing the case as “the most notorious of all judgment debt cases that this commission was tasked to look into.”

This, the report said was because “he was not entitled to any such payment as the Economic and Organised Crime Office (EOCO) rightly found and stated in its interim report dated February 1, 2012.”

“The fact is that, Alfred Agbesi Woyome did not demonstrate in any way in his statement of claim that he ever brought into the country, through his alleged financial engineering expertise, the sum of (€1,106, 470,587) for the construction of stadia and medical facilities in the country as he claimed in his action”, it stated.

Barton-Odro’s justification

In one of the documents cited, former Deputy AG Mr. Barton-Odro justified the payment to President John Evans Atta Mills whose office had requested for an explanation in the wake of the scandal.

The document which Woyome reportedly relied heavily during his criminal trial, was written and signed by then deputy AG on December 16, 2011 and it set out “the background and facts of the matter.”

It said that Mr. Woyome’s claim was based on a proposal by a consortium of Vamed/Watervile which would have brought in funding for Sports stadia and facilities at 764,117,646.00 , Hospital and Wellness Centre at 329,411,765 as well as GAEC, Cobalt 60 Irradiation Plant and Tissue Culture facilities at 12,941, 176.00,  all in Euros totaling 1,106,470,587.00.

“It was based on the advice received that the AG gave the opinions dated 13^th March, 2010 and 11^th April, 2010 respectively  that Alfred Agbesi and Austro-Invest should be paid 2% of the total amount syndicated in 2005,”the then deputy minister said.

According to the NDC MP for Cape Coast South, “the High Court had no option than to give default judgement in favour of Mr. Woyome on May 24, 2010, which the AG’s Office tried unsuccessfully to set aside.

Commission’s Proceedings

It will be recalled that the Judgement Debt Commission ended its proceedings last year without the appearance of some powerful people tagged by critics as ‘architects’ of modern day judgment debt payments.

Former ministers under whose tenure most of the ‘dubious’ and ‘frivolous’ judgment debts were paid were not called to give testimonies about how the ‘monster’ called judgement debt suddenly gained root in Ghana’s politico lexicon but the leaked report indicated that the commission had relied on documents made available.

The two ministers who were on the lips of the public as having supervised some of the alleged payments that somewhat triggered the setting up of the commission by President John Mahama were Mrs. Mould Iddrisu and Barton-Odro, now deputy Speaker of Parliament.

MAHAMA HAS FAILED SAYS TUC

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Friday, July 03, 2015

The Trades Union Congress (TUC) has issued what looks like a ‘no confidence vote’ on the President John Dramani Mahama-led National Democratic Congress (NDC) government.

The General Council of the TUC at its 33rd Bi-annual meeting held in Tema from 25th and 26th June 2015, issued a damning verdict on the government’s performance after a Mid-Year review of the economic and social situation in the country.

Stunted Economy

“Economic growth has slowed considerably and is expected to be around 3.5 percent in 2015, the lowest recorded growth in more than a decade,” its Secretary General Kofi Asamoah said in a release on Republic Day.

“Inflation is rising faster than projected. In fact, for most basic products, the situation in our markets shows far steeper price increases than the headline inflation figures reveal.”

According to the labour union, the Bank of Ghana’s decision to raise its policy rate meant to curb inflation increased the costs of borrowing for domestic businesses rendered most of them uncompetitive even on the domestic market.

“The current account deficit remains large and growing. The national currency, the cedi, continues its downward slide against all major currencies in the world. These have imposed excessive economic and social costs on Ghanaians,” TUC said.

Ghanaians Suffering

They said “jobs are disappearing as domestic companies fold up or reduce operations to stay afloat. Most of our graduates have been without jobs long after completing their national service. With prices rising faster than incomes, the cost of living has become unbearable for the working people.”

Failing Interventions

According to the TUC, social intervention programmes like Capitation grants, School Feeding Programme, national youth employment programmes, Livelihood Empowerment Against Poverty (LEAP) and even the National Health Insurance Scheme (NHIS) intended to cushion vulnerable sections of the population are failing.”

Senchi vs IMF

The TUC accused the government of ‘jettisoning’ the Senchi Consensus after which it turned to the IMF for what it called ‘economic salvation’, saying “in doing so, government recognised that it faces a credibility crisis and that it needed the IMF to fix that crisis.”

“Foreign investors with short-term outlook would most likely be spurred by IMF programming to invest in short- to medium-dated government treasuries. But it is very unlikely for any investor to invest long-term in domestic production merely because of a three-year IMF bailout programme.”

They said “yet, Ghana requires long-term investment to grow the economy, to rebalance the current account, and to strengthen the cedi and, most crucially, to create decent jobs.”

Borrowed Credibility

The statement said the TUC is holding the view that Ghana cannot develop on what it called “borrowed credibility”.

“What will happen when the programme ends in 2017? How would the current programme resolve the perennial fiscal irresponsibility that has become the hallmark of governments in Ghana?” they queried.

“If past trends are anything to go by, then one would expect a return to the status quo where fiscal imprudence ushers this country into further fiscal austerity with or without the IMF-sponsored programmes.”

It called on the government to address “the governance and systemic policy failures manifested in pervasive corruption and impunity at the highest echelons of our society.”

IMF bailout

The TUC said that the IMF bailout programme will not change Ghana’s economic situation adding “in the last 16 years, Ghana has negotiated three different IMF extended credit facility programmes, similar to the current programme, and over 40 technical assistance programmes. These programmes have failed to address the vulnerabilities inherent in the Ghanaian economy.”

Real Wages

They served notice to the government that organized labour would not allow a further decline in real wages saying “given the general economic hardships prevailing in the country, the Council finds it unacceptable that government would agree to reduce real wages despite the sacrifices public sector workers are making, including accepting a cost-of-living allowance in 2013 instead pay increase.”

In particular, we will continue to resist unreasonable increases in utility and fuel prices and other such policies and measures that undermine our efforts to improve the living standards of the working people of Ghana and their families. Working people and ordinary Ghanaians cannot continue to absorb any further increases that lead to higher cost of living.

CABINET CONFIRMS SPIO’S $35M OFFER

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Friday, July 03, 2015

Minister of Communications Edward Omane Boamah says his colleague Trade and Industry Minister Dr. Ekwow Spio-Garbrah should not be hanged by the public over the controversial Bankswitch saga.

According to Dr Omane Boamah, the trade minister was only exploring ways and means to get the judgement debt to Bankswitch settled without the IT firm shortchanging Ghana in the process and added that he did not see how Dr. Spio-Garbrah could have erred.

The Communications Minister said on Metro TV last week that “the Ministry of Finance and Economic Planning (MOFEP) is saying that government has not taken a decision on how to explore to pay the debt and Dr. Spio-Garbrah was only operationalizing one of the ways to derive the money.”

Team work

“When it comes to the Bankswitch issue and the resolution, let me state that a team comprising the MOFEP, and the Attorney General worked on settling the judgement debt brought some positions to cabinet and cabinet rejected that mode of settling.

He said the mode included “the payment of the $4 million plus which has already been done and then the new payment which will also include a contract,” adding “cabinet rejected that outright and said we should avoid the hazard of rewarding when a contract had been terminated, judgement debt had arisen that had been settled and then you go ahead and award the contract.”

Dr. Omane Boamah said “cabinet said ways should be looked at settling the debt. So if you read the position of the MOFEP and that of Dr. Spio-Garbrah and you don’t have this information it will sound contradictory.

He corroborated Dr. Spio-Garbrah’s position that the Trade Ministry forwarded the new payment plan to the AG and MOFEP and said “if they find it appropriate it will be done,” adding “government rejected the position that we should reward Bankswitch with another contract.”

Letter to DICs

In recent times, Dr. Spio-Garbrah has hit the news for writing to five DICs to pay $35 million each to settle the GH¢197 judgement debt to Bankswitch in exchange for contracts at the ports, a move which appears to have ruffled the feathers of the minister’s political opponents.

It means that the government will receive $175 million from the five DICs should they be able to afford the amount to settle GH¢ 197 million.

With current exchange rate of cedi to dollar at interbank rate as at Friday pegged around GH¢4, the NDC government will be raking in about GH¢840million far in excess of the GH¢ 197 million judgement debt to Bankswitch.

The letter signed on Wednesday June 3, 2015 asked the DICs with the capacity to contribute $35 million each towards repaying the judgement debt to assist government.

“To pay this debt, government of Ghana is informing all destination inspection companies that any of them who can advance government of Ghana an amount of 35 million dollars would be awarded a contract of 0.35 per cent of free on board values on all Ghana’s imports for at least a period of five years to enable that company recover its investments,” it said.

The DICs were given until midday of June 8, 2015 to respond with an expression of interest.

Spio breaks silience

Dr Spio-Garbrah confirmed on radio last week that the contract was awarded by the Kufuor government on 2007 and abrogated by the Mills administration and that brought the debt.

He said details of how the deal with the DICs would work was before the Ministry of Finance and the Attorney General and insisted that he was not acting alone.

“On details of how many years or how much money the DICs are going to make; we are not there yet. We have not signed any contract yet. At this stage it is only an expression of interest.”

He said that the government had started paying the debt to Bankswitch but when the IT firm wanted to renegotiate the deal that could make them receive  a whooping GH¢1 billion spread in five years from the state, his ministry decided to intervene.

When asked whether the DICs move was not in contravention of the procurement laws, the minister said he had not broken any law, saying “it is for the avoidance of paying GH¢1 billion that we are engaging the DICs.”

“I have done my part. I have forwarded everything to the Ministry of Finance and the AG to determine whether we should proceed with the deal.

"Which law has been broken here? Cite the law which I have offended.  Have I stolen something or paid illegal money? I am working in broad day light with as much transparency and as open as possible."

Rather, Mr Spio-Garbrah said his action was in the best interest of the country and to protect the public purse.

He repeated a statement released by the ministry at the weekend the debt had been caused by ‘evil politicians.’

BAWUMIA EXPOSES NDC CEDI PROPAGANDA

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Thursday, July 2, 2015

Economics and finance expert Dr. Mahamudu Bawumia has said the ruling National Democratic Congress (NDC) is ‘playing’ propaganda with the Cedi and warned it could prove costly to the country.

“Rather than facing up to and dealing with this collapse in the currency, the NDC propaganda in the villages is that Ghanaians should be happy because they are getting more Cedis for the dollars and pounds their relatives send them from abroad,” the New Patriotic Party (NPP) running mate for the 2016 election said in London at the weekend.

Addressing the Young Executive Forum – UK, a group associated with the NPP on the state of Ghana’s economy, the former Deputy Governor of Bank of Ghana said “for the NDC, the management of the economy boils down to propaganda.”

Mismanagement

“The NDC mismanagement of the economy has definitely been monumentally exposed by the cedi exchange rate. It is the one variable that cannot be manipulated in the long run.” 

He said that “imagine that a worker earned GH¢1000.00 at the beginning of 2009. This was worth some US$840. Today the same GH¢1,000.00 is worth some US$227.”

Cedi Downfall

He said that in 2014, the Cedi depreciated by 31% against the US dollar, making it one of the worst performing currencies in Africa and added that the depreciation of the cedi had continued in 2015, with 27% loss in value between December 2014 and June 2015.

He said the Cedi situation was notwithstanding the IMF bailout adding “this reflects a lack of policy credibility on the part of the government and a lack of confidence by investors.”

In the last 18 months alone the cedi has depreciated by over 50%! The periods of NDC economic governance has now become symptomatic with the periods of massive depreciation of the currency.”

Dr. Bawumia said that the massive depreciation of the exchange rate has been very costly for the economy – for businesses and individuals alike saying “For any worker, the depreciation has been devastating for the cost of living as utility, petroleum and other prices of goods and services have shot up.  The cost of doing business has also increased significantly.”

He said “but as I have said before, if you try manage the economy with propaganda, the exchange rate will ultimately expose you.”

Policy Credibility

He said that unfortunately, the government appeared ‘clueless’ as to what to do and added “this is the price Ghanaians are paying for the Government’s lack of policy credibility and weak fundamentals.”

“Even the IMF bailout has not been able to restore confidence by convincing the markets that the Government is committed to turning things around. The IMF itself has instituted a review of the government performance every four months!”

“This is unprecedented for Ghana’s IMF programs and demonstrates a lack of confidence by the IMF itself in the government’s commitment to the program even though they would not publicly say so

Declining Growth

He said that economic growth in the country was on a steep decline since record showed real GDP growth had declined from 15% in 2011 with the onset of oil production to a projected 3.5% in 2015 including oil and the decline in economic growth is reflected across all sectors of the economy.

Dr. Bawumia said in 2015, interest payments alone on the country’s debt stock would amount to GH¢9.57 billion and added that interest payments had increased from GH¢679 million in 2008 to a projected GH¢9.57billion in 2015 which is an increase of 14 fold.

“Ghana’s total debt in 2008 was GH¢9.5 billion but interest payments in 2015 alone would amount to GH¢9.5 billion. Interest payment as a percentage of GDP has also increased from 2.8% in 2008 to 7.1% in 2015.”

He said the indebtedness of government had reflected in other sectors of the economy.

“In the energy sector for example, government is highly indebted to VRA and ECG. Government owes ECG some GH¢700million and owes VRA GH¢1.0 billion. This has compromised the balance sheet of VRA  and its ability to import crude oil for the generation of power.”

He said the situation had in turn forced VRA to over use the Akosombo dam by 30% more than recommended since 2012 thereby causing the drop in the level of the dam adding “ultimately, the dumsor problem is more of a financial problem than a technical one.”