For quite some time now, I have relaxed in writing. Not because I have nothing to write, but because there are too many issues unfolding which are so important and complicates what topic to choose to write on. Today, I have decided to concentrate some attention on the signs that are becoming clear of the next four years of the President Akufo-Addo’s government. Governance is an important part of every nation. Where it goes right, the people benefit, and where it goes wrong, the people suffer. Many were those who were ecstatic about a year ago over what government termed free interventions to businesses and individuals. There is no doubt that some people benefitted from these interventions, but the question remain, how many people really benefited contrary to government claims? And how do we verify the claims of government in the absence of data? This article would raise some critical issues that we all need to reflect over and demand, the basis of which government may just be open to us and make governance better.
It has emerged that the free water to “all” citizens and free electricity to lifeline customers and the proposed 50 per cent reduction for domestic and industrial consumers, were not free after all. We are waking up to a levy in this regard which government hints it intends to use to pay for the expenditure made to the tune of some 19 billion Ghana Cedis (3.16 billion USD). This proposal in the Budget and Economic Statement of 2021 presented before Parliament a couple of days ago, has attracted public uproar with many condemning same. As usual, there are those who would defend it, albeit that they were part of those who trumpeted the goodness and mercies of the president at the time for providing these services for free without any knowledge that Ghanaians would be asked to pay for them after the elections of December, 2020.
We must put the issues in their proper contexts. When in March, 2020 thereabouts, the President decided to impose a lockdown as a result of the country recording Covid-19 cases, some interventions were announced. Before then, proposals were made for the government to access the Stabilization Fund established by the previous government of John Dramani Mahama for the purpose of providing cushion for the Ghanaian people on whose behalf the Fund was set up. Because of the widespread support, including the suggestion coming from the former President John Mahama, Parliament was able to amend the Act establishing the Fund to enable the President through the Finance Minister withdraw USD200 million (the equivalent of Ghc1.2 billion).
In addition, after meeting the conditions set by the World Bank, some initial USD35 million was released to support Ghana (https://www.worldbank.org/en/news/press-release/2020/04/02/argentina-banco-mundial-covid-coronavirus). Subsequently, another USD65 million was released as part of the support for Ghana for the fight against Covid-19 (https://www.worldbank.org/en/news/press-release/2020/11/10/world-bank-group-supports-ghana-to-boost-its-covid-19-response). Soon after, the International Monetary Fund (IMF) advanced a Rapid Credit Facility to the tune of USD1 billion to Ghana to aid in the fight against Covid-19 (https://www.imf.org/en/News/Articles/2020/04/13/pr20153-ghana-imf-executive-board-approves-a-us-1-billion-disbursement-to-ghana-to-address-covid-19). It is significant to note that the IMF facility is an interest-free loan with a 5 year moratorium which simply indicates that the loan repayment begins after 5 years. This again suggest that the Akufo-Addo second term in office would make no repayment on the IMF Rapid Credit Facility. It also means that the President who comes after him in 2025, would be the one to look for money to start repaying the loan.
It is also important to recall that the IMF facility was approved on or about the 13th of April 2020, and by the time disbursement was done, the lockdown imposed for which this fund was badly needed, was lifted on the 20th of April 2020, just 7 days after the money was accessed. Ghanaians went about their businesses with only news of the National Board for Small Scale Industries (NBSSI) providing stimulus packages for businesses.
We must also remind ourselves of some important issues that raise serious questions on the use of the Funds secured. Before that, I must establish that due to the challenges of Covid, the government launched a Covid-19 Relief Fund and solicited for funds from businesses and individuals. It emerged that even state institutions made donations into the fund with questions on the legality of such conducts. As at the last recall, some Ghc50 million was reported to have been donated into the Fund. This Fund was expected to be used to provide relief to those who require it. We are yet to have a full record of its usage.
Government apprised us to the effect that during the lockdown, some 400,000 citizens were provided food.