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.

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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.

This promise comes at a time when Ghanaians are questioning the President’s commitment to cut down on excessive spending after appointing some 110 ministers to serve in his government.

[contextly_sidebar id=”JcVZqkMRojNEHakuJDcxnZW1V60bo9IO”]But speaking to Abdul Moomen of GTV, the President said government had already kick-started processes, including a directive for Ministers to declare their assets to check profligacy.

“We want a situation where political office holders are the first to recognize that they serve the public interest not their own personal interest. I have said it time again that those of my party in adherence, like-minded people, who think that coming into the public sector is going to be an avenue for making money are going to be disappointed. To the extent that my eyes and ears can see what is going to happen, I am not going to allow it to happen. For instance, as we sit today, in the record time, all the first appointments that I made have all declared their assets, all 36 Ministers have all declared and filed their assets with the Auditor General.”

“It is part of the process of reassuring the Ghanaian people of the commitments that we made to protect the public purse. The commitments that we made to ensure that we live with the political system that minimizes corruption which has really ravaged our country and brought us to this low level of economic decline, there is going to be a systematic attempt to deal with it.”

I need men for unprecedented challenges – Nana Addo

In response to the criticism over the size of his government, the President said the unprecedented problems confronting Ghana demand a large government, hence his decision.

“I don’t believe that my government in the Fourth Republic has big numbers in view of the swollen challenges,” the President said in an interview with the Daily Graphic and Ghana Television.

In President Akufo-Addo’s view, the end will justify the means, as he assured that his government was going to work for the people.

“We have a problem, and what is the best way? It is better to have men and women capable of serving the nation’s interests and to work to grow the economy… If I succeed, you will soon find out the brouhaha is nothing compared to the success.”

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By: Marian  Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post I’ll protect the public purse – Nana Addo reiterates appeared first on Citi 97.3 FM - Relevant Radio. Always.