The President is hopeful the fiscal discipline measures embarked on by the government’s Economic Management Team will enable Ghana to make prudence use of the country’s natural resources.

Government has embarked on a number of programmes in an attempt to bring some relief to Ghanaians burdened by a number of economic commitments.

Some of the major programmes include; Free Senior High School, Planting for Food and Jobs, One-District, One-Factory, One-Village One-Dam, One-constituency One-million dollars, among others

Reacting to a question in his second encounter with some selected journalist at the Flagstaff House today, [Wednesday], Nana Akufo-Addo explained that, unlike his government, the erstwhile John Mahama administration was not fiscally disciplined.

“My view is that if they [Mahama administration] had been more disciplined in the management of the public finances, we will not have had to recourse to the IMF in 2013 like we did,” he criticized.

According to him, there had not been a case of mismanagement of state resources by his administration so far due to the fiscal and monetary discipline being enforced by the government.

“The most important aspect of it is the discipline that government and the people of the country are prepared to undergo. That will be the best indication as to your capacity to continue, or whether you need to rush to Washington for a bailout”.

He maintained that Ghana will not need to go back to the IMF for a bailout if managers of the economy are prudent with the use of public funds.

He stated that the IMF merely holds government to a system that will prevent budget overruns and overspending.

Nana Akufo-Addo was of the view that with the right people, Ghana can implement all its major social intervention programmes to bring relief to Ghanaians while the country’s resources are prudently used.

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By: Lawrence Segbefia/citibusinessnews.com/Ghana

The post Mahama’s fiscal indiscipline took Ghana to IMF – Akufo-Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.

He said he is fully aware that a decision has to be made on the fate of the two, Mahmud Umar Muhammad Bin Atef and Khalid Muhammad Salih Al-Dhuby, who were brought to Ghana in 2016 for a period of two years.

[contextly_sidebar id=”PO0vSP97pPI7o97XuoWTG2Mn3WMeZePY”]“The GITMO detainees, the period is up, a decision has to be made and that decision is under active examination, we need to be able to say something to Parliament when it resumes,” he said

He noted that government will take that decision as early as possible on whether they will stay or arrangements made for them to leave the country.

“The period under which the agreement was made has come to an end, we have to decide whether or not we are going to grant them permission to stay, whether we are going to make arrangements for them to go somewhere else. Those things are being actively examined as we sit, but I am fully aware that a decision on them has to be made, and it cannot be made in six or five months it has to be made now,” he said.

Background

Ghana’s controversial agreement with the United States of America for the hosting of two former Guantanamo Bay detainees effectively ended on January 6, this year.

The two detainees who were in detention for 14 years after being linked with terrorist group Al-Qaeda, were brought to Ghana in 2016, for a period of two years.

The move to host the two in the country was criticized by many observers including the then-in-opposition New Patriotic Party, who described the two as a security threat despite assurances to the contrary by the US.

Two citizens; Margaret Bamful and Henry Nana Boakye, further sued the former Attorney General and the Minister of Interior contending that the two were being hosted illegally.

The two were justified by the Supreme Court, which declared as unconstitutional the agreement between the Mahama government and the United States.

The apex court ordered the government to send the agreement to Parliament for ratification or have the two detainees sent back to the US.

According to the judgment, the government needed the approval of Parliament before entering into any international agreement, just as in the case of the two detainees.

When the matter came up for discussion in Parliament, the House was informed that the agreement that was reached under a note verbale and Memorandum of Understanding.

A note verbale is a piece of diplomatic correspondence prepared in the third person and unsigned.

Parliament subsequently ratified the agreement for the two for detainees to be in the country.

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By: Farida Yusif/citifmonline.com/Ghana

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The President said this confirms their long held assertion that the Mahama administration inflated contracts and allowed corruption to thrive.

Speaking at a Media Encounter on Wednesday as part of his one-year stay in office at the Flagstaff House, the President said his government is working tirelessly to protect the public purse as he promised prior to election 2016.

“I am being urged to pay contractors and I am paying them. In 2017, nearly Ghc1billion of which the government of Ghana provided Ghc300million and the Road Fund provided some Ghc660 million was paid. In January this year, we have disbursed Ghc125million, out of the remainder of Ghc600million to the contractors. Additionally; we have paid Ghc826million of our Ghc1.2billion loan contracted by the previous administration, which the Road Fund was used as collateral. It’s important to know that all these debts were accrued under the previous administration. I will also point out that much of the statutory arrears that we met have been cleared. That is debts to the NHIS, the District Assemblies Common Fund and the GetFund. We must also point out that the salary arrears paid to our teachers last week, were accrued from 2013 to 2016.”

As part of the prudent financial management, the President noted that, going forward, government will pay public sector bills as they come to avoid accruing arrears.

“We are resisting the temptation to award contracts when funds are not available to pay for the certificates as they come up. Those who conduct business with government will find that things are being done differently. We’ve had to subject Ghc8billion cedis of arrears bequeathed to us at the beginning of 2017, to a process of audit review and validation. The Audit Service has certified payments of Ghc5.5billion, and rejected about Ghc5.7billion, representing a potential savings of 51% on these outstanding commitments.”

“This shows the validity of our criticism, that so much of contracts awarded in the Mahama era were inflated and apparently in some cases non-existent. I have promised to protect the public purse and I am doing just that. Those who have done honest work and have honest rates for the government will get paid and paid on time, so their profits do not get swallowed up in bank interest and thereby threatening the collapse of their businesses” the President stated.

The President, who spoke about the high unemployment figures leading to the thousands of people applying for jobs in the public sector, said the government is on a good course to stabilize the economy, enhance business growth and subsequently create more jobs.

He said the government’s prudent financial management was necessary considering that they inherited a “huge public debt in a country with its macroeconomic fundamentals in disarray.”

“We had to do things differently, and those were my marching orders to all members of the government. We have rapidly had to grow and expand the economy, and that can only happen when the fundamentals are in place. The Economic Management team has risen to the challenge and demonstrated that doing things differently achieves positive results.”

Giving some figures to back his claims of prudent financial management in the first year, the President noted that, in the year 2016, the Public Procurement Authority had 622 sole source requests. 577 of that number amounting to 98%, were approved and there were 25 rejections.

“There were 592 requests made for restricted tenders, of which 587, which is 99.15%, were approved with five rejections. A grand total of zero savings was made through the procurement process.”

He stated that “In 2017, our first year in government, 394 sole sourcing requests were made, out of which 223, that is 56.6% were approved, and 171, that 43.6% were rejected. There were 346 requests for restricted tenders, and 167, that is 48% were approved, and 179, 52% were rejected. The savings made over the year as a result, amounted to Ghc145million ($142million). As my own mathematics teacher use to say, you cannot argue with figures, and such figures surely provide the incentive to open out government procurement”.

On the debt situation, the President said the work of the team has yielded positive results, saying, “Real GDP growth has rebounded, recording a growth from 9.3% in the first quarter of 2017, against a figure of 3.5% for the same period in 2016. Latest information indicates that inflation is at 11.8%, down from 15.6% at the end of December 2016. The debt situation has improved, with the annual average rate of debt accumulation of 36% in recent years, declining to about 13.6% at September 2016. As a result, the public debt stock as a ratio of GDP, is 68.3% against the annual target of 71% for 2017, and end 2016 actual figure at 73.1%.”

“Boring figures I know, but believe me, they spell good news for the economy. Thanks to these boring figures, for the first time in a long while, we’ve been able to give better budgetary support for the constitutionally mandated institutions that hold government accountable such as the Auditor General, the Judiciary, Parliament, the Ministry of Justice, CHRAJ, EOCO and the Police. We’ve also been able to transfer some Ghc3.3billion of tier two pension funds into the custodial accounts of the pension schemes of the labour unions, funds that have been outstanding for six years and the unions have been loudly complaining.”

On the matter of corruption, he said his government is committed to deal with ruthlessly with those found culpable as long as there is evidence to pin people down.

He expressed hope in the yet-to-be approved Special Prosecutor, Martin Amidu, to help in that regard.
–
By: Ebenezer Afanyi Dadzie/citifmonline.com/Ghana

The post Ghc5.7bn saved from Mahama’s “inflated” contracts – Akufo-Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking at a Media Encounter on Wednesday as part of his one-year stay in office at the Flagstaff House, the President, who spoke about the high unemployment figures leading to the thousands of people applying for jobs in the public sector, said the government is on a good course to stabilize the economy, enhance business growth and subsequently create more jobs.

Among other things, he said his government has been managing things differently in order to protect the public purse and ensure value for money in all of its activities.

He said this was necessary considering that they inherited a “huge public debt in a country with its macroeconomic fundamentals in disarray.”

“We had to do things differently, and those were my marching orders to all members of the government. We have rapidly had to grow and expand the economy, and that can only happen when the fundamentals are in place. The Economic Management team has risen to the challenge and demonstrated that doing things differently achieves positive results.”

Giving some figures to back his claims of prudent financial management in the first year, the President noted that, in the year 2016 the Public Procurement Authority had 622 sole source requests. 577 of that number amounting to 98%, were approved and there were 25 rejections.

“There were 592 requests made for restricted tenders, of which 587, which is 99.15%, were approved with five rejections. A grand total of zero savings was made through the procurement process.”

He added that “In 2017, our first year in government, 394 sole sourcing requests were made, out of which 223, that is 56.6% were approved, and 171, that 43.6% were rejected. There were 346 requests for restricted tenders, and 167, that is 48% were approved, and 179, 52% were rejected. The savings made over the year as a result, amounted to  amounted to GHc145 million, $142 million, €1.8 million and £22,400. As my own mathematics teacher use to say, you cannot argue with figures, and such figures surely provide the incentive to open out government procurement”.

On the debt situation, he said the work of the team has yielded positive results, saying, “Real GDP growth has rebounded, recording a growth from 9.3% in the first quarter of 2017, against a figure of 3.5% for the same period in 2016. Latest information indicates that inflation is at 11.8%, down from 15.6% at the end of December 2016. The debt situation has improved, with the annual average rate of debt accumulation of 36% in recent years, declining to about 13.6% at September 2016. As a result, the public debt stock as a ratio of GDP, is 68.3% against the annual target of 71% for 2017, and end 2016 actual figure at 73.1%.”

“Boring figures I know, but believe me, they spell good news for the economy. Thanks to these boring figures, for the first time in a long while, we’ve been able to give better budgetary support for the constitutionally mandated institutions that hold government accountable such as the Auditor General, the Judiciary, Parliament, the Ministry of Justice, CHRAJ, EOCO and the Police. We’ve also been able to transfer some Ghc3.3billion of tier two pension funds into the custodial accounts of the pension schemes of the labour unions, funds that have been outstanding for six years and the unions have been loudly complaining.”

“I am being urged to pay contractors and I am paying them. In 2017, nearly Ghc1billion of which the government of Ghana provided Ghc300million and the Road Fund provided some Ghc660 million was paid. In January this year, we have disbursed Ghc125million, out of the remainder of Ghc600million to the contractors. Additionally; we have paid Ghc826million of our Ghc1.2billion loan contracted by the previous administration, which the Road Fund was used as collateral. It’s important to know that all these debts were accrued under the previous administration. I will also point out that much of the statutory arrears that we met have been cleared. That is debts to the NHIS, the District Assemblies Common Fund and the GetFund. We must also point out that the salary arrears paid to our teachers last week, were accrued from 2013 to 2016.”

As part of the prudent financial management, the President noted that, going forward, government will pay public sector bills as they come to avoid accruing arrears.

“We are resisting the temptation to award contracts when funds are not available to pay for the certificates as they come up. Those who conduct business with government will find that things are being done differently. We’ve had to subject Ghc8billion cedis of arrears bequeathed to us at the beginning of 2017, to a process of audit review and validation.”

“The Audit Service has certified payments of Ghc5.5billion, and rejected about Ghc5.7billion, representing a potential savings of 51% on these outstanding commitments. This shows the validity of our criticism, that so much of contracts awarded in the Mahama era were inflated and apparently in some cases non-existent. I have promised to protect the public purse and I am doing just that. Those who have done honest work and have honest rates for the government will get paid and paid on time, so their profits do not get swallowed up in bank interest and thereby threatening the collapse of their businesses” the President stated.

On the matter of corruption, he said his government is committed to deal with ruthlessly with those found culpable as long as there is evidence to pin people down.

He expressed hope in the yet-to-be approved Special Prosecutor, Martin Amidu, to help in that regard.

–

By: Ebenezer Afanyi Dadzie/citifmonline.com/Ghana

The post I am protecting the public purse as I promised – Nana Addo appeared first on Citi 97.3 FM - Relevant Radio. Always.

President Nana Addo Dankwa Akufo-Addo responded to a number of questions posed by journalists at the Flagstaff House on a wide range of issues including corruption, the economy and galamsey.

[contextly_sidebar id=”onoeIMOs9WQ97vop1ht54OTBdHsckrTs”]However, he directed a few questions to other members of his government, including a question from Citi Breakfast Show Host, Bernard Avle, which the Vice President, Dr. Mahamudu Bawumia responded to.

According to Mr. Adom-Otchere, this move by a President in an interaction with the media was a welcoming initiative and gave a reason for those officials to be present at these encounters in the first place.

“We’ve always wondered since Kufuor’s time with Ministers of State at the conference whether they should be there or not and should the President be speaking directly to the people? Often they come and say they don’t have anything to say at all,” he said on Eyewitness News on Tuesday.

“Today was different when he invited the Vice President [to answer questions] on two occasions. He also invited the Attorney General to deal with the controversial issues about State Attorneys and qualification to the Ghana Law School. That was a significant difference from what we’ve seen in the past”

He also dismissed assertions by some sections of the public who believe that the President delegated the questions because he did not have a full grasp of the situation in his government.

According to him the President demonstrated respect for the media and the general Ghanaian public by getting the responsible Ministers to provide up to date information on specific sectors.

“I don’t think it’s because he doesn’t have a full grasp of what’s happening, he’s the leader of the team. I’m calling his invitation for others to participate as positive. These Ministers come to these press conferences from Kufuor’s time and they leave after. If they are not there to help the journalists and public get specific and direct answers to certain questions, why do they come? This was different because President Akufo-Addo gave us a reason why they showed up.

“The President of the Republic of Ghana, will not have the specific answers to everything. Some of the questions invited direct answers, others were macro questions discussing general policies and some were political which he could answer. But questions are asked about figures and direct mathematical things to the point like Bernard Avle’s question – and you recall that when Dr. Bawumia was answering the question, he said the calculation of the GDP was actually one figure. Those are not things you expect the President to know because it changes on a month to month and quarter to quarter basis. When the questions are direct like the question about the one district, one factory, the President delegated it to the Trade Minister. With the specific questions, it was exciting to see him invite the people who were responsible to give the accurate, up-to-date report and that shows a lot of respect to the Ghanaian people and a lot of respect for the media,” he added

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By: Edwin Kwakofi/citifmonline.com/Ghana

The post President’s delegation of questions ‘positive’ – Adom-Otchere appeared first on Citi 97.3 FM - Relevant Radio. Always.