The caution is to check the over-expenditure that has been perpetuated by the various heads of government institutions leading to the rise in government’s debts.

The potential of such departmental heads to over award contracts the Ministry contends has also been influenced by the lack of adherence to proper procurement procedures.

The Acting Director of Budget at the Ministry of Finance, Ms Eva Mends tells Citi Business News the enforcement of the law should halt the debt overhangs going forward.

“People do not respect the limit Parliament sets on how much government can commit over a period. When we prepare a budget we do not just prepare an annual budget we prepare a medium term expenditure framework which indicates how much revenue we are getting and how much expenditure we intend to make.”

“So when you go ahead and commit government over and above what has been indicated and it falls due, you are breaking the law and appropriation is a law which is also a legal document,” she explained.

Ms Eva Mends made the observation during a response to concerns on measures to reduce government’s accumulating arrears particularly those due contractors.

It also formed part of a stakeholders’ consultation for the 2018 to 2021 budget preparation by the government of Ghana.

The Deputy Roads Minister, Anthony Karbo has lamented the 11.6 billion cedis debt the government inherited from the NDC administration which has made it practically impossible to undertake new road projects.

This Mr. Karbo explains the challenge in repaying the debt has also been as a result of the relatively ‘lower’ amounts accruing to government from the road fund which is 1.2 billion cedis annually.

Already, the Deputy Finance Minister, Kweku Kwarteng had given indication of reviewing the various contracts awarded under the former government to ascertain the validity or otherwise of such agreements.

This also followed a comment from Finance Minister, Ken Ofori Atta that the government will work to pay all outstanding arrears by 2019.

With the effective implementation of the law to punish directors who over award contracts, the Finance Minister is confident of meeting the anticipated expenditure targets and restore macro-economic stability.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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Victor Adawudu said, he is shocked the Attorney General could not provide him with the information when he requested in a letter addressed to her office.

[contextly_sidebar id=”06shLvozbb1Elp5b7c5kwZ5ROo1QJ4D3″]The lawyer had exercised his right to information due to the scanty details provided by the Ministry of Finance on the bond.

But in a response to his letter, the Attorney General, Gloria Akufo said the information being requested were unavailable to her.

“I acknowledge receipt of your letter bearing reference number LL/17/26 and dated 4th May, 2017 on the above subject matter. Please be informed that the information being sought per your letter is not available to me and I am therefore unable to respond to the questions posed therein,” her written response said.

But according to Mr. Adawudu, the response was unsatisfactory.

He contended that the AG could by virtue of her position, solicited the needed information on the bond from the Ministry or agency responsible.

“If the Attorney General, who is the government’s legal advisor, says she is not aware, they [Finance Ministry] should be aware. The Bank of Ghana should also be aware because it is a loan,” he said in Citi News interview.

In an interview on Eyewitness News on Friday, [May 26, 2017], Victor Adawudu said he was not discouraged by the AG’s response but was determined to further pursue it.

“The response of the AG encourages me the more. And tells me that something hasn’t gone right and I’ll probe further and push and get the information that will be for the benefit of me and especially that of the citizenry,” he said,

“I’ll still request for the information. I’ll request from the Minister of Finance, the Bank of Ghana and if I like I’ll get to a different forum and compel them to release the information,” he added.

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By: Jonas Nyabor/citifmonline.com/Ghana

The post I’ll compel gov’t to provide $2.2m bond details – Lawyer appeared first on Citi 97.3 FM - Relevant Radio. Always.

A statement issued by Mr Patrick Nomo, the Chief Director, Ministry of Finance, recounted that the Finance Minister, Mr Ken Ofori-Atta on February 10, requested the Controller and Accountant General (CAGD) to inform all public servants on the Government of Ghana mechanised payroll system, who had not registered on the new SSNIT biometric system to do so by the end of February 2017.

It said this directive came into effect on the April 2017 payroll.

It noted that consequently, the salaries of 26,589 unregistered workers were suspended indefinitely until their SSNIT re-registration is completed.

It said subsequent to the suspension of the salaries of the unregistered workers, the following actions had been taken: 9,375 workers had subsequently been registered and validated onto the payroll.

It said supplementary payroll was run and payment was effected to the validated staff on May 11, amounting to some GHC 11.3 million.

The statement said about 3,000 more were currently being validated and would be paid as part of the May 2017 salaries and would consider validated arrears.

“It is the following roadmap towards cleaning the payroll was hereby communicated to all affected stakeholders, as part of a broader payroll management strategy,” it said.

On staff, who had registered with the Social Security and National Insurance Trust (SSNIT); having valid SSNIT numbers, but have not gone through SSNIT biometric registration:

“Affected staff should visit the nearest SSNIT Branch with their payslips and any one of the under-listed National Identification Cards to be registered: National Identification Authority (NIA) Card, National Health Insurance Scheme (NHIS), Card Passport, Driver’s License and Voter Identification Card.”

Concerning staff who had gone through SSNIT biometric registration but were not paid, the statement said:”Affected staff should visit the nearest SSNIT Branch with their pay slips and their Biometric Cards. If the staff are not able to provide their Biometric Cards, any one of the following could be accepted as proof of Biometric Registration for further validation.

The statement said SSNIT would furnish the Controller and Accountant General with the list of members who have successfully gone through the Biometric Registration and validation process for their salaries to be released.

It said adequate measures had been established to ensure that affected persons who successfully submit to the above guidelines are paid without further delays.

It said labour unions were also encouraged to join the effort to rally their affected members to achieve this objective.

It said the following timelines were hereby communicated for the benefit of affected workers:
“Affected workers to submit to SSNIT for re-enrollment by May 22 to 26.

“SSNIT to complete validation process by May 29 to June 2.

“CAGD to pay supplementary salary to validated staff by June 15.”
It said government would continue to implement strategies aimed at cleaning the payroll and rationalising its payroll cost.

–
Source: GNA

The post Finance Ministry issues validation guidelines for ‘suspended workers’ appeared first on Citi 97.3 FM - Relevant Radio. Always.

[contextly_sidebar id=”c4Ljo7NvFWex7VD56dBYpjoyUlMBLuCO”]It follows appeals by the affected workers for an extension of the implementation date to allow them go through the biometric registration by the Social Security and National Insurance Trust (SSNIT).

The Ministry of Finance in a statement last week, directed that the April salaries of 26,589 workers be suspended for failing to comply with a directive asking them to roll onto the biometric system of SSNIT.

The April ending deadline was arrived at after re-scheduling the deadline twice.

But a new directive from the Finance Ministry and copied to Citi Business News said the affected workers have been given a grace period of three more days.

“All those who are legitimate government workers but have not been able to go through the SSNIT biometric registration are required to do so before their salaries will be released to them. Those who go through the registration before 3^rd May, 2017 will be paid by 15^th May, 2017.”

Meanwhile the Ministry has assured that those workers whose salaries may have been mistakenly blocked would be rectified and paid on the 15^th of May.

“Those who have gone through the SSNIT Biometric registration but have been mistakenly blocked can be assured that by the same 15^th May, 2017 their salaries will be released to them upon resolution of the errors,” the statement added.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Deadline for 26,000 ‘ghost workers’ extended by three days appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to NAGRAT, the directive is too sudden and will be unfair to the affected teachers.

The Ministry of Finance has instructed the Controller and Accountant General’s Department, not to pay salaries to 26,589 employees who have not been captured in the ongoing SNIT biometric registration.

[contextly_sidebar id=”omTPdmoB8r0NtPq8io4gL3CyygY1jAZW”]The Ministry also announced the suspension of payment of SSNIT contribution to some 23,029 employees, because they could not be accounted for in a nationwide head count which ended on the 22nd of October 2016.

The directive if implemented, will affect about 50,000 workers.

But speaking to Citi News, Vice President of NAGRAT, Angel Carbonu, said government must heed their calls to avoid labour unrest in the country.

“We have written to the Ministry of Finance that we will not accept a situation where at the end of this month some workers will not be paid. So long as those workers have worked and were at post working, we will not accept the situation where they will not be paid. If anything at all, let them give us a period, we asked for a one month moratorium, publish the names, let us identify our members and if they have to register biometric, they register biometrically.”

“We have tried to maintain the peaceful labour atmosphere for this month. We would advise ourselves of several labour actions that we would have to take because we feel that it is a legitimate right to pay someone who has worked. The only relationship we have with the controller and accountant general is that, controller pays those who have exercised their duties dutifully and controller should stop allowing other agencies to influence its fundamental responsibility of paying workers,” he added.

NAGRAT writes to Ministry of Finance

NAGRAT had earlier written to the Finance Ministry to suspend it directive saying such a move could result in total chaos in the country.

“Much as we agree that you may have good reasons for that decision, we wish to draw your attention that such an action, if carried out, has the potential of disturbing the peaceful environment we have enjoyed over the past few months,” NAGRAT stated in a letter addressed to the Minister of Finance.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

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According to him, a long-term plan for national development must be limited to ten years due to world economic conditions and the advancement in technology.

[contextly_sidebar id=”7135XIehA0P6uXiWQ36dzv1NMpchfPzg”]Speaking at his vetting in Parliament on Friday, Osafo Maafo said, although he made inputs into the document that was spearheaded by the National Development Planning Commission (NDPC), he made his concerns known about the duration of the plan.

“I don’t believe in planning in excess of 10 years because of the stringency of world economics, and therefore I would prefer that we restrict ourselves to a 10-year development plan. I have made some inputs into it relating to infrastructure and energy.”

“The NDPC met the whole caucus of the NPP at our headquarters to discuss initially the 40-year development plan. The Vice President, Dr. Mahamudu Bawumia and I expressed our views on the length of time.”

Osafo-Maafo noted that, the New Patriotic Party (NPP) will take another look at the plan, and together with the NDPC review it to make it relevant to the nation’s development.

“Now that we are in power, we are surely going to have a critical look at that programme and we are not going to swallow it hook, line and sinker. We’ll look at the 40-year-plan; it is important that every country like Ghana gets a long -term plan, particularly with respect to infrastructure, so that there will be continuity. So we will definitely look at it and where modifications are necessary, we’ll make it after going through.”

‘Mahama launches 40-year development plan’

The former NDC government led by John Mahama, in August 2015, launched a 40-year National Development Plan for Ghana (2018-2057), to provide a framework for national development binding on successive governments.

The National Development Planning Commission (NDPC), which is headed by Dr. Nii Moi Thompson, consulted various stakeholders and considered the global Sustainable Development Goals (SDGs) in the development plan.

‘The Senior Minister role’

The nomination of Yaw Osafo-Marfo as Senior Minister-designate, has seen some social commentators raise issues about the portfolio.

Although the portfolio existed under the erstwhile John Kufuor administration, critics believe it was superfluous with no specific designation.

But according to Mr. Osafo-Maafo, his role as Senior Minister is to coordinate the economic sector ministries including the Ministry of Finance and the Ministry of Trade and Industry, to ensure that the “economy is re-situated in a homogeneous manner.”

‘About Osafo-Maafo’

Yaw Osafo-Maafo is 75 years old, and has had an exemplary career as a banker, consultant, politician and a statesman.

He is a graduate of the Kwame Nkrumah University of Science and Technology, an Engineer and Project Analyst by training, and a fellow of the Ghana Institute of Engineers.

He started his career as an engineer at the Volta Aluminium Company (VALCO).

He went on to head and successfully restructure two major development banks – The Bank for Housing and Construction and The National Investment Bank.

He has also worked as a consultant for international development organisations such as the World Bank, African Development Bank (ADB), United Nations Development Programme (UNDP) amongst others

Yaw Osafo-Maafo was a Member of Parliament for Akyem Oda Constituency for 3 terms and the Minister of Finance and Economic Planning for 4 years from 2001-2005, a period which saw the dramatic turnaround of the Ghanaian economy.

His achievements were recognised internationally in 2001 when he was adjudged the best Finance Minister of the year in Africa by the Banker Magazine, a Financial Times Publication.

Along with the Finance Minister of Canada, he was also named the Finance Minister of the Year in November 2001 by the World Economic Forum in Davos.

He served as Minister for Education and Sports from 2005 to 2006, a period which saw the implementation of significant reforms in education and sports sectors, including the introduction of the Capitation Grant.

Ghana for the first time qualified for the World Cup following the reforms under his leadership.

Osafo-Maafo has served on the boards of various financial institutions and corporates, and was the past Vice-President of the Executive Committee of the West African Bankers Association.

He was a founding Deputy Chairman of the Ghana Stock Exchange, and was instrumental in setting up Donewell Insurance Company and the Methodist University College Ghana.

He also represented the Institute of Engineers at the Consultative Assembly that drew up the 1992 Constitution of the Republic of Ghana.

He is currently the Co-Chairman of the Transition Team, representing His Excellency the President, for the newly elected Government of Ghana.

He is married with four Children.

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By: Jonas Nyabor/citifmonline.com/Ghana
Follow @jnyabor

The post We don’t need a 40-year national development plan – Osafo-Maafo appeared first on Citi 97.3 FM - Relevant Radio. Always.

The protesting contractors gathered at the GETFund head office and later made their way to the Ministry of Finance.

The contractors say government owes them over GHc 300 million spanning a period of six months.

Managers of the GETFund have however blamed the Ministry of Finance for its inability to pay contractors who the Fund says it owes close to GHc 300 million.

Managers of the Fund have indicated that, until the Ministry of Finance releases money to them, they cannot pay the contractors.

When the contractors made their way to the Finance Ministry, one of the protesters, Daniel Tanor, said they had heard from the Deputy Finance Minister, Casiel Ato Forson, and he said his ministry only owed the “GETFund GHc 106, 000 and that they have released that money.”

Speaking to Citi News’ Philip Nii Lartey, Mr. Tanor, however, expressed doubt in Mr. Forson’s assertion saying “it is never true that is what the Ministry of Finance is owing the GETFund… We believe what Ato Forson is saying is really not the issue.”

He maintained that the protesters may finally march to the presidency as thier last resort.

“The President is the last person and we are trying all within in our capacity to meet the relevant authorities, and if it fails then we will hit the President’s premises, the FlagStaff House,” Mr. Tanor said.

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Photos: Philip Nii Lartey

By: Delali Adogla-Bessa/citifmonline.com/Ghana

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Service personnel will from January 2017 be paid a monthly allowance of GH¢559 from the GH¢350 they currently receive.

A letter sighted by citifmonline.com from the Ministry of Finance indicated the ministry gave the approval last week.

About 70,407 service personnel are currently serving in various institutions in the public and private sectors.

The acting Executive Director of the National Service Secretariate (NSS), Dr Michael Kpessah Whyte said the increment followed series of complaint from service personnel who said the current allowance was woefully inadequate considering their expenses and cost of living.

‘NSS not withholding January allowance’

The National Service Secretariat last month denied withholding allowances of personnel for December 2016 and January 2017.

The secretariat, reacting to rumours in sections of the media that it will withhold allowances for December and January, said it will duly pay all personnel on time without delay.

In a statement signed by the Head of Public Relations, Ambrose Entsiwah Jnr., the secretariat said the government has already released funds for the payment of all personnel till the end of December 2016, and has also approved its budget for the year 2017.

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By: Jonas Nyabor/citifmonline.com/Ghana
Follow @jnyabor

The post Gov’t increases NSS allowance by 60% appeared first on Citi 97.3 FM - Relevant Radio. Always.