WORLD BANK: GHANA’S DEBT FOURTH HIGHEST IN AFRICA …. Excessive government spending in 2012 elections to blame

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Created on Wednesday, 09 October 2013 00:00

WORLD BANK: GHANA’S DEBT FOURTH HIGHEST IN AFRICA …. Excessive government spending in 2012 elections to blame

09 October 2013

Ghana has been ranked as the fourth country in Africa which has the highest public debt in relation the total value of the economy, following countries like Cape Verde, The Gambia, and São Tomé and Principe.

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The Africa Pulse Report by the World Bank tracks the economic growth of various countries. According to figures from the Bank of Ghana, Ghana's debt as at August this year stood at GH¢43.9 billion, representing 49.5% of Ghana’s GDP which is valued, provisionally at GH¢85 billion.

Data from the Monetary Policy Committee of the Bank of Ghana has revealed that President John Dramani Mahama alone has added a whopping GH¢15.6 billion to Ghana’s total public debt stock since being sworn into office as caretaker and substantive President within the period from July 2012 to August 2013.

The 18th of September 2013 edition of the MPC Report revealed that Ghana’s total public debt stock “increased to GH¢43.9 billion (49.5% of GDP) at end of August 2013.” The September 2012 MPC report also noted that “The total public debt at the end of July 2012 was GH¢28.3 billion, equivalent to 44.4 per cent of GDP.”

It is recalled that Ghana’s total public debt stock stood at GH¢9.5 billion when the ruling National Democratic Congress government took over the reins of government.

According to a lead Economist at the World Bank, the Ghana’s current predicament can be attributed to an excessive spending during the elections, last year.

This statement vindicates the New Statesman story of December 6 titled “Mahama in last minute chop chop”, where we reported that for the months of October and November, alone, President John Dramani Mahama had approved and overseen the reckless dissipation of state funds to the tune of GH¢500 million.

The New Statesman revealed that this money had been spent by President Mahama on projects such as renovating his office, “oil and lubricants” for National Security, “special operations” and also GH¢3,111,844.66 on “allowances for staff of the electoral commission.”

The paper reported that on the 1st of October 2012, the National Security Council Secretariat received a whopping GH¢4,452,450 on “goods and services.” Intriguingly, the request was made on the 1st of October 2012 and the amount was released on the same day from Account “2210106.” Ten days later, on the 11th October 2012, an extra GH¢2,226,225 was allocated to the National Security Council for “oil and lubricants.”

Similarly, on the 12th of October 2012, GH¢100,000 was disbursed from Ghana’s coffers for “payment of special operations.” Fast forward to 21st November 2012 another GH¢3,000,000, was disbursed from account “2111001” for “special operations budget.”

Also, a whopping GH¢10 million was made from account “3112207” for the purchase of laptops and computers for MEST to meet the Mathematics and Technology Scholarship Scheme.”

Indeed, at a time when senior high schools were yet to receive their subsidies, President John Mahama authorised the payment of GH¢58 million to RLG communications “for payment of arrears to NYEP beneficiaries”. This payment was made on the 21st November 2012 from account number “2111001.”

By Fiifi Arhin

Source: thestatesmanonline