Electoral Commission (EC) to consider a structured training system for all polling station agents

In order to avoid mistrust and controversies that characterized previous elections in Ghana, the Institute for Democratic Governance (IDEG) has advised the Electoral Commission (EC) to consider a structured training system for all polling station agents assigned by political parties during elections, before the 2016 election is held.

The Executive Director of IDEG, Dr. Emmanuel Akwetey, who gave the advice at a training programme for journalists in Accra a fortnight ago, further stressed that Civil Society groups, journalists and election volunteers should also be trained to help avoid a system where untrained or unqualified people were involved in the organization of elections.

While asking political parties to build consensus among themselves with some guidelines on the mandate of their polling station agents to bring about harmony, Dr. Akwetey also wanted the EC to motivate and provide resources for volunteers it engaged to give up their best.

Referring to a comment made by Justice William Atugba during the 2012 Presidential election petition hearing at the Supreme Court that: “Elections are won at the polling stations”, Dr. Akwetey observed this is a wakeup call to all political parties to train their polling station agents on their mandate, their roles and boundaries in an election.

According to him, some polling station agents used by the political parties did not even know their roles and limits. As a result, actions and inactions of such agents had often brought about confusion at polling stations among electoral officers, political parties and security officers.

The Executive Director observed that Ghanaians were losing the needed trust for state institutions mandated to do their work and this level of mistrust had often been visited on the EC that, led to tension and violation of electoral processes in previous elections.

Dr. Akwetey said there is enough space for all electoral weaknesses and lapses to be identified and discussed now and the necessary reforms adopted before the next general elections were held so as to avoid things that threatened the country’s democratic credentials that had been recognized by international bodies.

He said most of the electoral reforms made by the EC were purely administrative and called for an integrated electoral reform system that would involve all political actors.

This, he believed, could bring about a more improved and efficient system the Ghanaian people would trust.

Other critical issues IDEG’s boss raised included strengthening of state institutions like the Economic and Organized Crime Office (EOCO) and the Police Service and making them impartial and professional to perform their duty, such as protecting the national interest of Ghanaians.

He also said apart from the EC, Parliament, Judiciary, Commission on Human Rights and Administrative Justice (CHRAJ), National Council for Civic Education (NCCE), National Media Commission (NMC) constituted core democratic institutions that should function as pillars on which the success of Ghana’s democracy rested.

However, Dr. Akwetey regretted that these institutions suffered from a serious deficit of trust as the political elite did not trust that these institutions would act impartially by serving all the people, regardless of the individual or group, or political affiliation.

IDEG was making a strong case for its critical proposals for electoral reforms to be considered for inclusion in the constitutional review process before the 2016 general elections.

According to the Executive Director, if these proposals were not adopted in the yet-to-be amended constitution, issues that characterized previous elections would show up in 2016.

But if adopted, there would be a lot of transparency, enhanced democracy and reduced voter apathy.

To this end, he advised Ghanaians to prepare their minds for potential violence in 2016 elections as his institute viewed the electoral process as “not democratic” stressing that the time to act in reviewing the electoral, governance and democratic issues was now since this could only be done throw constitutional review.

He called for the creation of more polling stations to decongest the about 46,002 existing polling stations across the country, a stop to delay in delivering voting materials mainly due to inadequate transportation, creation of multiparty fund, and the need to open up the Executive governance space to allow opposition/minority parties to also be included in the executive.

The programme was the second to have been held in Accra this year by IDEG to build the capacity of selected journalists on Institute’s proposals for electoral reforms and was on the theme; “Towards electoral reforms and the integrity of the 2016 elections”.

Dr. Akwetey believed it was not too late to still make inputs to the review process because if it was not done now, it would jeopardize the transparency and credibility of the 2016 elections and possibly lead to violence.

A Senior Research Advisor at IDEG, Mr. Kwesi Jonah, recalled that in the 1960s, Ghana’s Civil Service was the best in the whole of Africa but today, same could not be said of it, because at that time, there wasn’t much political interference, as is the case today.
He prescribed that for this to be addressed the public sector must be depoliticised, Civil Servants must be impartial, avoid all forms of narrow inward ideologies, restore professional values, restore efficiency and take advantage of technological advancement to be result oriented.

Maj. General Nii Carl Coleman, Chairman of Civil Forum Initiative was also a resource person, with Prof. S.N Woode, Senior Research Advisor and Prof. Kwame Ninsin, Scholar in Science at IDEG, as moderators.

school children in the Ashanti Region have boycotted the meals served by Feeding Programme.

Some school children in the Ashanti Region have refused to eat food served by caterers of the School Feeding Programme.

The pupils, who have been sharing their experiences with Nhyira News, claim they have endured persistent stomach upsets caused by poor quality of food served in the school.

The School Feeding Programme is in its eighth year of implementation, but it has in recent times been grappling with funding.

About 50 caterers are owed over 100 million Ghana cedis nationwide.

Deputy Local Government Minister, Nii Lantey Vanderpuye, recently told Parliament a monitoring and evaluation team has been set up to ensure children eat high-quality food.

But less than two weeks after the minister's disclosure, pupils of Danyame Metropolitan Authority Basic School in Kumasi say meals served under the programme are bad.

An angry pupil in her response on what she made of the food served them by the Ghana School Feeding Programme said “sometimes they cook food as if we are animals”.

She continued; “the food that they cook is not sweet at all. Sometimes the salt is not in. Sometimes they cook gari with stew," she said.

A class six pupil said her parents have forced her to stop eating food served by the feeding programme.

Her harrowing account of how she develops stomach upset anytime she eats from the School Feeding Programme kitchen is a worrying one.

“My mother told me not to eat it again. I know it is not nice but some of my friends ate the food and they became sick”. She said.

School authorities say although service has been regular; the same cannot be said about quality.

Teachers who used to enjoy meals under the project have stopped eating in the school.

Children were being served jollof rice at the time Nhyira News visited the school. The pupils are forced to eat the light-yellowish grain without meat or egg.

That is the best the caterer could manage for the 256 pupils who are on a daily feeding fee of 50 pesewas.

Like several of her colleagues, the caterer has not been paid for her services for weeks.

A caterer in another school complained bitterly about soaring food prices and meager feeding fees.

She queried officials on their decision to peg feeding fee at 50 pesewas for each child while still expecting quality food.  

Headmaster of Danyame M/A Basic School, Eugene Asante Bekoe, said he understood his pupils who have boycotted the meals

Dr. Anthony Akoto Osei, Is Championing To GetTthe 2015 Budget Rejected

Minority spokesperson on finance, Dr. Anthony Akoto Osei, is championing a crusade in Parliament to get the 2015 budget rejected by the House.

The Member of Parliament for Old Tafo, for instance cited the failure of government to remit workers contributions to the pensions fund as stipulated under the Pensions Act as one of the reasons why the budget should not be approved.

According to him, information available to him suggests that the government has not transferred the deducted amount into the appropriate kitty since the beginning of 2014. This, he said, is a violation of the Pensions Act.

The Pensions Act stipulates that if an employer fails to transfer workers’ contributions within 14 days from the end of each month it would be liable to a 3% penalty.

Early this month, Joy News intercepted a report by the National Pensions Regulatory Authority (NPRA) to Parliament revealing that government through the Controller and Accountant General has failed to transfer more than 200 million cedis of workers’ pension contributions to the designated Bank of Ghana account.

Dr. Akoto Osei also argued that the budget should not be approved because the government failed to achieve all the targets it set for itself in 2014.

The MP decried the rising inflation and the increasing public debt and appealed to his colleagues to reject the budget many have described as an austere budget. For 2014, the government predicted an inflation target of 9.5 percent, plus or minus 2 percentage points.

Government also targeted economic growth of 8 percent in 2014 as well as to trim its budget deficit to 8.5 percent of gross domestic product.

But the Ghana Statistical Service announced that inflation for October 2014 has hit 16.9

The development, according to them, has shot up the country’s current public debt stock from GH¢51.6 billion in December 2013 to GH¢58 billion.

The Minority Spokesperson on Finance, Dr. Anthony Akoto Osei, told journalists at a news conference in Parliament House yesterday, that the huge debt “does not include the entire $3 billion China Development Bank (CDB) facility, and even the $1 billion Euro bond the country recently borrowed from the capital market.

“This means that today, every Ghanaian owes GH¢2,150. We are borrowing at a rate of GH¢2 billion every month,” he reiterated. He lamented that the public debt had progressively risen from GH¢9.56 billion in 2008 to the current GH¢58 billion, which is an increase of over 510% in 5½ years, emphasising that “the debt to Gross Domestic Products (GDP) ratio is about 58% today.”

The Mills–Mahama administration inherited a total public debt of $8billion, the equivalent then of GH¢9.5billion, at the beginning of 2009″. The figure, he continued, represented 33% of GDP. “Within 5½ years, this debt has escalated to GH¢58 billion, which is more than 4½ times, or, indeed, [a] 510% increase in debt stock over 5½ years.

“Inflation for August, meanwhile, was 15.9%. It has been on the upward swing since January. Inflation is no longer in single digit, and the nation has been spared the cacophony associated with it, instead of concentrating on relevant matters,” Dr. Osei noted.

Growth And Cedi Woes

He noted: “The GDP growth rate, which was inherited by Kufuor, was 3.7%. In 2001, the GDP grew at 4.2%. In 2002, it grew at 4.5%, rising to 5.2% in 2003, and to 5.6% in 2004. It rose to 5.9% in 2005; 6.4% in 2006; 6.3% in 2007 and to 7.3% in 2008, which later became 8.4% after the rebasing of the economy.

“This steady growth happened without the benefit of crude oil exports. This is how a really sound economic growth aggregate looks like.” However, Dr. Osei said if one was to consider the full set of economic aggregates that constitute what was properly called economic fundamentals, then the facts cannot be distorted.

He further told the journalists that the cedi depreciated by 17.6% in the first quarter alone this year, compared with a depreciation of 1.1% in the first quarter last year. “As at the end of August 2014, the cedi had depreciated by some 40% since December 31, 2013. The second worst performing currency in the world this year!!

“In the eight-year administration under President Kufuor the cedi, from GH¢0.72 – GH¢1.1 to $1, depreciated by 53%. Less than 6 years into the NDC administration, the cedi has depreciated by 245.5%, and still counting,” he stressed.

On interest rates, which now hover around 30%, Dr. Akoto Osei stressed the country’s gross international reserves in months of imports had dwindled to 2.2 months of imports, and the net reserve was for just seven days; its trade deficit was now well over $4 billion; the fiscal deficit was 10.8% in 2013 or about GH¢12 billion.

This was against the target of 9.0%. The fiscal deficit was 11.8% of GDP in 2012, against the target of 6.7%; our current account deficit in 2013 was 12.8% of GDP, or $5.7 billion (i.e. GH¢17 billion); it was $4.9 billion in 2012.

In 2011, the nation’s trade deficit was $3.1 billion; it escalated to $4.2 billion in 2012, and in 2013 it hit $4.1 billion. The worsening balance of trade position contributed to the massive current account deficit of $5.8 billion in 2013, the Minority MPs stated. 

Manently Delete Names Of Government Employees Without Relevant Bank Details

The Controller and Accountant General's Department (CAGD) has served notice it may be compelled to permanently delete names of employees without relevant bank details from the payroll after the close of work tomorrow.

The CAGD notes in a statement that despite a directive requesting bank details of civil and public servants, some of them have not complied. 

It could not be immediately confirmed how many workers would be affected by this latest directive, but about 20,000 public sector employees had their salary payments suspended last month.

Head of the public pay roll administration body, Grace F. Adzroe  told Graphic in October, “the department for some time now has requested employees through circulars, radio announcements, press releases and notices on individual employees’ payslips to update their bank records, but only a few employees complied with the directives”.

This compelled the CAGD to suspend the salaries of public sector employees without bank accounts as part of government measures to clean the payroll system of ghost names.

At least 20,000 civil servants in Greater Accra, Volta, Central, and Western regions did not receive their September salary.

In October, CAGD stretched this measure to include the remaining regions - Eastern, Ashanti, Brong Ahafo, Northern, Upper East and Upper West regions.

Affected employees were required to complete a form and attach the requisite information and submit to their relevant district office or the controller and accountant general’s department for validation before their salary could be restored.

Employees with no bank account details have been asked to present themselves to the district office of the Auditor General for verification.

Public sector workers have until tomorrow November 14 to do or risk being deleted from the payroll system permanently.

- See more at: http://www.myjoyonline.com/news/2014/November-13th/names-of-public-civll-servants-without-bank-accounts-to-be-deleted-permanently.php#sthash.qa7xD7OK.dpuf

Attempts Blackmail Of National Organisers Of NPP

Talks by a delegation to persuade Alan Kyerematen, one of four candidates contesting the party’s flagbearship slot to step aside for Nana Akufo-Addo on October 18, has fallen on deaf ears.

According to Mr. Kyerematen's spokesperson, Nana Ohene Ntow, the attempt by the delegation of Regional Organisers to talk Mr Kyerematen out of the race is part of a scheme to blackmail his presidential aspirations.

The delegation was led by the party’s National Organiser, John Boadu.

Ohene Ntow condemned the delegation on grounds that it runs counter to the party’s constitution.

“The move that was made by the [National Organiser] and the Regional Organisers yesterday [Thursday] is not just in isolation of all the campaign and apparent orchestration that has been going on.

“Even before nominations were open, there were all sorts of calls that Alan should not contest. [But] nominations were opened and he picked up his form. Even after vetting, there were still calls for him [Alan Kyerematen] not to contest,” Ohene Ntow said on Joy News' Top Story Friday.

Nana Addo Dankwa Akufo-Addo, the two-time flagbearer of the party, became the lead contender after the Special Delegates’ Conference on August 31. It was to prune the number of aspiring candidates from seven to five.

Nana Akufo-Addo polled more than 80 per cent of the 740 valid votes cast.

A day after results were declared, Joe Ghartey, one of the aspirants stepped down from the race.

Calls by party members asking the remaining candidates to step down and support Nana Akufo-Addo, according to Ohene Ntow were all part of the scheme to thwart Alan Kyerematen's bid.

The spokesperson further said those calls were all directed at Mr Kyerematen, who obtained about 8 per cent of votes in the Special Delegates' Conference held across the country.

He said the delegation's visit to Alan Kyerematen was the height of all the attempts “to blackmail Alan from contesting”.

In a rebuttal, John Boadu said it was unfortunate that a “private discussion” between the party’s organisers have become public.

He explained the delegation decided to pay courtesy calls on all the aspirants, who would be contesting in the National Delegates' Conference on October 18 to inquire about their plans for the party.

He said claims by the Alan camp to stampede his presidential aspirations were unfounded

Corruption Is Putting Ghana Out Of The World Map

We have to make it a sustainable process on the part of the individuals themselves.”

So what really is the problem? Why is leadership capacity and effectiveness such an elusive virtue at levels of our social and political life? How do we begin the process of reform that could be embedded into all relevant aspects of our national experience? I have wrestled with these fundamental questions, given its far reaching implications for public policy, quality of governance and the soundness of our collective psyche as a people searching for true freedom and economic advancement. This article therefore, is an invitation to a place of solemn introspection in order to challenge the state of the Ghanaian mind as reflected in our political leadership, the materialistic church, the dysfunctional university system and a youth demographic that is slipping fast into an abyss of moral decadence and social media addiction. In the wake of deep factionalism in the New Patriotic Party (NPP), policy credibility issues with government, and the proliferation of churches without commensurate social transformation, it is a critical imperative to have this discussion now, in order to provoke a renewal of commitment to growth and collective responsibility. For the purpose of this article, I find it quite useful, the trait-based approach to leadership definition since it provides insight into the attitude and behavioral component of leadership. Within a democratic context, essential leadership qualities needed for good governance may include, but not limited to - responsibility, strength of character and emotional maturity. Fiscal discipline, timely policy adjustments and human rights protection are all under girded by these essential competencies.

Cultural and Cognitive Gaps 

Part of conducting any root cause analysis of a problem, is to start from the symptoms and trace back to the roots by following or using the why-why fish bone approach. It is a well-known principle in psychology that our words and actions betrays our belief and assumptions about important aspects of life. In subsequent paragraphs, I have recapped some views of certain highly placed personalities who I deem to have sufficient decision-making authority in their respective fields of endeavor. My goal in rehashing such publicly reported views, is to demonstrate this claim of words and actions expressing belief and assumptions, as a basis for making an argument for change. The theme of my argument clearly suggests linkage between the state of Ghana’s socio-economic progress and the pattern of thought that has influenced public policy in Ghana within the last fifty-seven years.

 The subsequent comments are expression of views on a broad range of policy issues:

While plying the motorway on the Accra-Tema side of traffic one Monday morning, I flipped through radio channels searching for inspiration in order to change the texture of what was clearly threatening to be a morning of blues and stone-cold lethargy. Many things had happened leading to the week ending August 22^nd 2014 that had power to evoke a spectrum of emotions in any attentive observer; emotions that ranged from bewilderment and amusement to confusion and hopelessness. As I continued my scanning spree, fate will have my restless misery rewarded with yet another news item of the Vice President of Ghana, putting boots on the ground to champion a charge against garbage dump sites from Agbobloshie to Kokomlemle. “Lord Jesus, please give me good news today”, I desperately pleaded, all the while contemplating the nexus between my private stress and public policy. The discussants, bawling through my radio frequency were debating whether Vice President Amissah Arthur’s action were to be interpreted as micromanagement, leadership by example or just another example of leadership failure at all levels; the political executive, local government, the church, traditional leaders and at community level. Being a student of critical thinking, my thoughts raced to inquire of all known theories and models in a bid to contribute intelligently to this important policy debate. In the wake of cholera outbreak, sanitation seemed to be the immediate flash point of this debate, however, upon deeper inquiry, other development gaps that have erupted throughout our national experience in the area of education, energy sufficiency, and food security amongst many, seem to provide an inkling into a curious phenomenon that I have termed, leadership bankruptcy.

The Leadership Lacuna

Leadership has become yet another platitude of management literature that is bandied around with little appreciation for its true character as a complex construct and strong catalyst for political change, economic transformation and social progress. One hardly needs to closely examine our civic interactions at any level to draw a conclusion consistent with the refrain that “our attitude as a nation needs to change.” Indeed the Vice President was reported by the Daily Guide’s online news on August 6^th 2014 as having affirmed that view point, asserting that “as a people, we have to manage ourselves and our sanitation. Attitudinal change is required On Government Succession

Former President J.J Rawlings is reported to have made the following comments during the launch of Nsawam Food Cannery that was bought by Carridem Development Company (CDC), a limited liability company, for 2.9 billion cedis in 2000.

“Had the government continued from where we left off in 2000, quite frankly, I don’t think Ghana will be in the condition she is today.”

On WASSCE Results for 2014

CITI FM through their online portal reports…, “A Deputy Minister for Education in-charge of tertiary, Samuel Okudzeto Ablakwa has described the 28.11 percent pass rate in the West African Senior School Certificate Examination WASSCE as one of the best performances by Ghanaian candidates in the last decade.”

… “meanwhile, the Acting Director of the Ghana Education Service, Charles Aheto Tsegah also told Citi News that it is not automatic that all students who graduate from the Senior High School (SHS) would make it to the university.”

On Intra-party Conflict

The Crusading Guide newspaper reported on August 22, 2014 that Dr. Arthur Kennedy, a leading member of the New Patriotic Party, blamed Nana Addo Dankwa Akufo Addo for the current trend of in-fighting the party was experiencing. According to Dr. Arthur Kennedy, “It is obvious, upon reflection that these hooligans – from [President] Kufuor’s house, through Tamale to the party headquarters are being organized, encouraged, inspired and motivated by or on behalf of the 2012 Presidential Candidate, Nana Addo Dankwa Akufo-Addo.”

There are many more instances of such views, skewed in my view, from academia, religious circles and regular folks, which essentially point to gaps in thought patterns and character weaknesses which are inconsistent with the pre-requisites of good leadership.

So what is the Problem, Really?

In all of the aforementioned instances, there may be arguments to support their validity or even the speaker’s democratic rights to take those positions, and yet all of these instances, without exception have done very little to provide sustainable solutions as a way of addressing the policy questions that they sought to comment on. That, essentially is a common denominator of leadership purpose; problem solving. A common thread in all of these comments (essentially policy-related) is the woeful lack of personal responsibility being taken for events and situations, be they crises, ill-conditions, losses and the like. Competitive pressure and fear of ceding ground to opposition are few of the destructive influences that is re-defining responsibility as democratic virtue into a strategic nonsense. In order words, there is no virtue in taking responsibility if it devalues one’s political power, dents your credibility and compromise your electoral fortunes. I am truly convinced, that every one of these examples presented a unique opportunity to demonstrate remarkable leadership by accepting responsibility and saying “yes, government has not done well in this area, but we have recognized our gaps and limitations and have renewed our commitment to solving this problem by taking these specific steps; a, b and c.

President Kufuor’s administration, notwithstanding the remarkable performance record, missed it on corruption. Former President Rawlings, notwithstanding his record on national security and rural development, I will argue, also missed it on the same count and more. The policy response of current political administration to exchange rate depreciation, fiscal deficit and political governance, to name a few, is suggestive of the proposition that the lessons of Rawlings, Kufuor and the Mills administration has not found its way into the policy cycle. The urgent imperative for a new kind of leadership in our politics cannot be overemphasized.

In The Next Issue …

Contrary to the popular refrain, that too much politics in Ghana is our problem, I am persuaded beyond any shred of doubts, that politics is the solution. My reasoning is simple; politics is a higher order discipline and practice, out of which social order, secular peace and economic opportunities evolve. A rational and growth-centred political philosophy is a major step in creating a free and just society. If our politics is right, all else will fall in place. But our politics cannot be right, if civil society actors refuse to, or are lukewarm about engaging the political establishment to demand reforms and the exercise of Godly values and responsible leadership in the administration of our common wealth.

In the next edition, a sequel to this piece, I shall attempt to analyze the work of the Constitutional Review Commission and how its seminal effort to engender structural alignment would help correct some of the hindrances to governance and the exercise of proper leadership in our current political dispensation

Should Ghana Be Under Military Rule

2012 presidential candidate of the Great Consolidated Popular Party (GCPP) Dr. Henry Herbert Lartey is calling for a return to military rule as the surest way to accelerate the development of the country.

He believes if the nation was under military rule, rampant corruption in the country would not be in existence for the nation to experiencing economic challenges. 

The leader and Chairman of the GCPP, Dr. Henry Herbert Lartey believes a return to military rule will instill some discipline in Ghanaians who steal the country’s resources for their personal benefit and that of their friends.

He also took a swipe at government for mismanaging the economy. According to him, Ghanaians are feed up with the current economic hardship bedeviling the country which he said keeps worsening by the day as he puts the blame squarely at the doorstep of leadership.

Dr. Henry Lartey in an interview said the leadership needs to think about an innovative way to deal with corruption to save the country.

“Leadership is not rulership. Leadership is not kingship. Leadership is when you have creative mind. Leaders need to think on their feet and bring out sterling ideas to change lives”, he said.

He also cited the rising cost of transportation, accommodation, food among others, resulting from the sharp fall of the cedi against the major international currencies as a major problem that needs to be tackled.

Dr. Lartey said the present economic doldrums are having adverse implications on the salaries of workers, which demands an immediate intervention from the central government. “Ghanaians are facing difficult times; I think urgent steps are needed in solving these problems,” the 2012 presidential candidate asserted.

He lamented: “Sadly, the managers of our national economy have chosen to ignore the advice of the local professionals and many other brilliant suggestions that have been put forward by civil society organizations. Instead, those in charge of our economy have chosen to rely on the economic policy advice of experts at the International Monetary Fund and the World Bank.”

He reiterated the need for a policy of domestication that his late father, Dan Lartey preached as the long term solution to the country’s economic woes. “Eat what you grow. Grow what you eat, stockpile and export. Domestication can end the dollarisation of Ghana’s economy,” Dr. Lartey said.

“We have to earn more from our exports such as oranges, pineapples, pawpaw, mangoes as well as other fruits and vegetables by value addition. Ghana cannot rely on cocoa alone for a lifetime at the expense of other products”, he advised.

He said: “We should encourage the large production of rice, maize, palm oil, rubber and sugarcane for the production of sugar”, and warned that: “If we don't promote domestication to change our current import and export orientation, then the light at the end of the tunnel will continue to elude us”.

He explained “When the total dollar value of a country's imports exceeds the total dollar value of its exports, the county has a trade deficit. This means the country is exporting fewer goods than it is importing. When a country's trade deficit increases, the value of that country's currency depreciates against the currency of its trading partner countries.”

Despite all these suggestions on how to deal with the problems of the economy, Dr. Lartey maintained: “A short-term solution to Ghana’s woes is returning to military rule.”

On how the Great Consolidated Popular Party (GCPP) is faring, he said the party has begun strengthening its structures at the grassroots level as part of the party’s preparations ahead of the 2016 elections.

IMF (International Monetary Fund) To Support Ghana’s Ailing Economy

The government of Ghana has directed the Ministry of Finance to open discussion with the IMF (International Monetary Fund) to support Ghana’s ailing economy.

The Ghanaian currency, the Cedi has been continuously depreciating against most of the foreign currencies despite measures from Bank of Ghana to save it. 

In its annual review of the Ghanaian economy, the IMF in May warned that under current policies, the fiscal deficit would stay at about 10.2 per cent this year and 9.3 per cent in 2015, far below the official target.

If you may recall, Dr. Mahamudu Bawumia, 2012 running mate for the opposition New Patriotic Party (NPP) on March 25, 2014 at the Distinguished Speakers Forum organized by Central University College, stated: “Mr Chairman, in conclusion, I would like to repeat without exaggeration that the Ghanaian economy is in a crisis. It is time for serious action. If government does not take the right decisions and soon, then Ghana would likely have to approach the IMF for a bail out before the end of the year.

This statement however created various controversies and criticisms from government.

However, a statement issued and signed by Communications Minister, Dr Edward Omane Boamah indicated that government has decided to go for an IMF bailout.

Read the statement below

President John Mahama met the Presidential Advisory Committee on the Economy on 1st August, 2014 at the Flagstaff House to reflect further on the range of issues affecting the Ghanaian economy.

The Committee’s discussions focused on measures aimed at restoring macroeconomic stability, promoting growth and improving the living conditions of the people.

Arising out of the deliberations, the President reaffirmed the Government’s continuing commitment to a liberal Foreign Exchange regime that provides, among others, incentives for Ghanaians, both at home and abroad, as well as Foreign Investors to invest in Ghana.

The President further decided that as a matter of urgency, measures must be taken to stabilize the Cedi in order to bring about greater predictability to the business environment.

With respect to the energy situation in the country the President directed that urgent measures be taken to expedite the coming on stream of domestic gas supplies to provide cheaper fuel for power generation as well as minimize the foreign exchange burden of crude oil imports.

Lastly, the President directed that immediate initiatives be taken to open discussions with the International Monetary Fund and other Development Partners in support of our programme for stabilization and growth.

The Strong Opposition Party In Ghana Are Calling For A New Flagbearer

Former General Secretary of the New Patriotic Party (NPP), Nana Ohene Ntow, says he strongly believes Alan Kwadwo Kyerematen is best qualified to be the President of the Republic and not only as flag bearer of the opposition party.

Speaking in relation to the blatant open declaration of support to Nana Akufo-Addo, the party’s 2008 and 2012 Presidential Candidate by some NPP Regional Chairmen and Members of Parliament (MPs), Ohene Ntow said, in his estimation, Mr Kyerematen is the only candidate with the charisma to make the dream of the NPP regaining power become a reality in 2016.   

The former NPP Chief Scribe, who expressed grave displeasure after reports emerged that some MPs graced the campaign launch of the twice defeated presidential hopeful and declared their unflinching support for him, described the brazen backing of Nana Akufo-Addo by the MPs as an infringement of the party’s constitution.

According to reports, the MPs, numbering about 107, claim their action is borne out of mounting pressure from their constituents who claim they will not vote in the 2016 general election if Akufo-Addo is not made flagbearer.

Additionally, delegates in the Upper East Region have unanimously declared their total support for Nana Addo Dankwa Akufo-Addo's bid.

All 37 delegates who will vote in the August 31 Special Electoral College, as well as over 500 delegates made this declaration at the Assembly Hall of the Bolgatanga Secondary Technical School, when Nana Akufo-Addo arrived in the region earlier this week to campaign. 

When asked by Dr. Mahamudu Bawumia, who was addressing delegates, to indicate by the show of hands the number of delegates who will vote for Nana Akufo-Addo, the delegates leapt from their seats with spontaneous cheers of "Nana oo Nana", indicating a 100% support for Nana Akufo-Addo.

But Ohene Ntow, who also doubles as spokesperson for Alan Kyerematen believes this violates the party's own guidelines for the upcoming presidential primaries in October 18th and wants the party to take disciplinary action all those who have violated the guidelines.

Nana Ohene Ntow told the host of “Adeakye Abia” on Okay Fm that such lawlessness should not be countenanced by the leadership of the party.

He also pointed out that though the NDC rigged the 2000 elections, Mr John Agyekum Kufuor beat all odds to win the presidency, adding that Alan Kyeremanten is the right material for the party since he can end the bickering and discrimination within the NPP.

“I want to tell my party faithful and the delegates that it is not a candidate we need in NPP; we need a President and if we vote for Alan Kyerematen, he will not only become a candidate but rather a President because he knows the job and he is very humble to work with anybody irrespective of one’s Presidential allegiance within the party. He respects people and does not discriminate; he is the only person who can bring unity to end the bickering in the party…...it should be established that if winning elections is about big rallies and lot of noise making then NDC would not have won the 2008 elections and NPP should not be staying in opposition till now. It is true that NDC stole the elections but Kufuor won the 2000 elections despite the fact that NDC rigged that election too; that should tell us something as delegates who want power in 2016,

Ghana Currency Is Losing It Value

In recent weeks, there have been suggestions by government spokespersons that the current problems of the economy, especially the rising inflation and the depreciation of the cedis, are traceable to the denominational of the cedis by the Bank of Ghana in 2007, and that the Bank should consider re-introducing the zeroes back in our currency.

We urge the Bank of Ghana to ignore these suggestions. It has to be remembered that since the economy started showing signs of crisis, several explanations have been given by spokespersons of government and the ruling party.

i. First, we were told that the fall of the cedis was being caused by the activities of dwarfs, and this was said with all seriousness.

ii. After some time, we were told that the fall of the cedis and the rising inflation could be coming from the many tall buildings and skyscrapers emerging in the country, especially in the national capital.

iii. Then later, we were told that the fall of the cedis was coming from the work of satanic forces, and that the solution was to intensify prayers to arrest the cedis.

Ladies and gentlemen, this latest diagnosis that the problems of the economy are coming from the 2007 re denomination of the cedis falls into this category of economic explanations. It is coming from superstitious minds who have no scientific understanding of how the economy works.

The re denomination of the cedis in 2007 has served Ghana's economy so well. But for the re-denomination, we would have needed polythene bags today to carry a GH¢100 (the equivalent of ¢1,000,000 at the time). Our currency had before the re denomination become so bulky that traders who carried GH¢5,000 (the equivalent of ¢50,000,000 at the time) had to hire taxi to carry that amount at the car booth.

Thanks to the 2007 re-denomination, we can now easily conceal GH¢5,000 in our purses or in our breast pockets.

Similarly, we do not have to write so many zeroes when recording amounts of money. This has been very good for records keeping and for communication.

In short, the re-denomination has eased transacting business with the cedi. And throughout the world, re-denomination remains the only solution to bulky currency or excessive zeroes in a currency.

The suggestion that, until the re-denomination, price changes came in small increments is deliberately false. Indeed, it was after the re-denomination that we were told our economy enjoyed a long and unprecedented period of single digit inflation, something which never happened before the re-denomination. Again, it was after this re-denomination that we were told our economy enjoyed the highest economic growth in Ghana's history.

So, how can we turn round and claim that the re-denomination is the cause of our current economic problems?

The truth is that, Ghana's economy is on its knees because of economic mismanagement, excessive borrowing, excessive spending and corruption.

The Bank of Ghana is respectfully advised to ignore all suggestions that the re-denomination is the cause of Ghana's economic woes. Any attempt to reverse it will make Ghana a laughing stock internationally. Even a partial reversal of it will be suicidal for our economy.

Political Leaders Never Think about Ghana

In the past few weeks, we have witnessed the ascendancy of strident voices from workers, civil society and faith-based organizations reminiscent of the interludes in our history when Ghana was under military rule. 

This is significant because the ban on political activity has been lifted for almost a generation! As much as this is a feather in the cap of these Ghanaian entities and to our democracy, it remains a sad indictment of the official opposition in this country. The ascendancy of these non-political party voices is indicative of the degree to which Ghana’s opposition has abdicated its role.

If he, who pays the piper, calls the tunes, then any “deep pocket” can literally “get any type of government they want”! It appears that both political parties are in constant competition, not only for votes, but also for funds. Is this what is rendering their politics to increasingly look like a competition to please powerful multinational interests at the expense of Ghanaians? What is even more alarming is this miasma of culpable silence instead of speaking up, complicity in the place of opposition, that we keep seeing from the largest opposition party, the new Patriotic Party, NPP, when it comes to crucial issues such as the imposition of GMO’s on Ghanaians, or the EPA! 

There is no doubt that there is an orchestrated attempt by those who stand to benefit from the monopolization of our seeds, to “Manufacture the consent” of Ghanaians through the sheer monopolization of the political space currently available to Ghanaians. The rise of the voices of workers, faith-based and civil society organizations, is an indication that this shall fail. So far, the only viable choice open to Ghanaians is either the NPP or the NDC. With both political parties singing from the same hymn sheets when it comes to critical issues such as the Economic Partnership Agreement, they must both be seen as part of the problem rather than the solution.

The main opposition party, the NPP, has failed woefully to take full advantage of the crisis by making itself increasingly irrelevant. 

They continue to commit the same mistakes and expect different results. Only yesterday, just before the demonstration started, NPP MP for Assin-Central, Kennedy Ohene Agyapong was quoted as saying, “Kofi Asamoah is part of the problems in the country and must be beaten by workers when he appears at the demonstration grounds”! 

Meanwhile, it has since been reported that, “Kofi Asamoah, the Secretary General and convener of the historic demonstration was cheered and buoyed by his men at the Independence Squared!

The NPP has failed to rise to the occasion. One is reminded of Sir John’s last-minute efforts at the NPP congress in Tamale, where he adopted the slogan, “Vote for Sir John and Shame Atuguba!” well, we all know what happened. That is why it pays to be politically relevant. 

That is why it pays to be honest with the people and let them know clearly whether or not they can count on you! Just like Sir John, the elephant can go on pretending that European Union sponsored Economic Partnership Agreement is not an issue worthy of their attention, and keep thinking on behalf of the people! They are surely going to have a hard time voting for themselves on behalf of the people!