Do you need Doctorate degree in Economics to understand this?
Hmmm. Folks, it appears some of you do not have the full facts about the UBA saga. Let me attempt to set the records straight.
1. Two years ago, Government of Ghana through the finance ministry sought approval from parliament to raise One billion dollar loan through eurobond.
2. The supporting documents attached to the proposal clearly indicated how the amount was to be used.
3. Among other things, 250 million dollars was to be paid into the Ghana Infrastructure Investments Fund (GIIF).
4. The parliament of Ghana, made up of representatives from ndc, npp etc duly approved the loan.
5. When the money was released, the minister of finance ensured that the 250 million dollars was duly paid into the GIIF account with bank of Ghana (BOG).
6. After 18 months, the minister detected the the amount was still seated idle in the BOG account, without accruing any interest.
7. The minister of finance has the responsibility under the laws of the land, of ensuring that all government funds are prudently invested.
8. Upon further consultations with the various stakeholders, including legal luminaries, the minister concluded that it was not prudent to Keep the idle fund with BOG.
9. The GIIF, has other accounts with commercial banks, including the United Bank for Africa (UBA).
10. Consequently, the minister ordered for the transfer of the idle fund from the BOG into one of the commercial accounts for the GIIF, so it could generate some returns. UBA was selected.
11. Barely after 4 months, the 250 million dollars, accrued an interest of 23 million dollars for the GIIF and the government of Ghana. This means that if the money had been deposited there 2 years ago when it was released, it could have generated over 100 million dollars profit.
12. Strangely, instead of Dr Bawumia and the rest of us to commend the minister for this wonderful decision and to question the GIIF why they are not utilizing the fund for the intended purpose, we are rather crucifying the minister.
13. The same Bawumia and the rest of us would have criticized the minister and labeled him incompetent if he had not taken such a step.
It is my candid opinion that I have better explained the situation to you at least not from Bawumia’s Doctoral theoretical perspective, but from a Palmwine tapper’s practical point of view.
By: Captain Smart
Adom 106.3 Fm