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COVID-19 was a financial bonanza for government

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Dr. Nii Moi Thompson, a renowned economist, has revealed that the COVID-19 pandemic unexpectedly boosted the Akufo-Addo government’s financial fortunes.

The former Director General of the National Development Planning Commission (NDPC) pointed out that Ghana benefited significantly from the pandemic, highlighting the unexpected financial gains the country made during that period.

He emphasised that as a result of the COVID-19 pandemic, the International Monetary Fund (IMF) provided the Ghanaian government with a $1 billion grant without any strings attached.

In an interview with Bernard Avle on Channel One TV’s The Point of View, Dr. Thompson revealed that the IMF also offered an additional $1 billion to Ghana in 2021, which was curiously omitted from the Auditor General’s report on COVID-19 expenditures.

He suggested that the omission of the $1 billion disbursed to Ghana in 2021 from the Auditor General’s report might have been an oversight.

Dr. Moi Thompson further stated that Ghana received a total of GHC27 billion in COVID-19-related funds, but the government only spent 42% of this amount on actual COVID-19-related expenses, leaving a significant portion unaccounted for.

“We turn to look at COVID-19 purely in economic terms, but it was a financial bonanza for the government. You may recall that they actually even said that they exceeded the revenue targets in 2020, despite what everyone else thinks. Even though, revenue went down in certain sectors… the ICT, the telcos and others, they boomed.

“But, as a result of COVID-19, the IMF also gave us a billion dollars in cash in 2020, pretty much, no conditions attached. The significance of that is that in 2015 when we went to the IMF, they pledged, I think $940 million spread over three years.

He stressed, “Contrary to what we got in 2020, it was a billion dollars, go and spend for COVID. There was another billion dollars in 2021, which is critical because it is omitted from the audited general’s report on COVID-19 expenditures… Even though, the Ministry of Finance acknowledges the one billion dollars on its website. But for some reason, it was excluded. Maybe it was an oversight I don’t know. If we include the financial inflows, we got from covid-19 alone it was about GHC27 billion. Out of that, they spent just about 42% on COVID expenditures, the rest, they said went into budget support.”

He raised concerns about the country’s persistent infrastructure funding gaps despite receiving a significant amount of money from the IMF as a result of the COVID-19 pandemic, questioning why the influx of funds failed to adequately address Ghana’s infrastructure spending shortfalls.

“In terms of money, they have had more, than any other government. The question is what happened to all this money? The Eurobonds where did they go? We hear that they were spent on infrastructure, but when you go through the budget, we still have shortfalls in infrastructure spending, except for 2020 and 2021. You drive around Accra and other parts of the country, there’s visible deterioration in physical infrastructure.”

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Politics

Bawumia- “Mahama’s Economic Record Bad”

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The presidential candidate of the New Patriotic Party (NPP), Vice President Dr. Mahamudu Bawumia, has openly criticised former President John Dramani Mahama’s economic management, describing it as the worst among Ghana’s Fourth Republic leaders.

According to him, during Mr. Mahama’s tenure, the economy experienced substantial setbacks across multiple sectors, marked by soaring inflation, sluggish growth, and increasing unemployment.

Speaking at the Ghana CEO Presidential Gala in Accra last Thursday, Dr. Bawumia asserted that his criticism was based on hard economic data rather than partisan views.

He contrasted this with what he described as Ghana’s improved economic trajectory under NPP leadership, asserting that Mr. Mahama’s tenure represented a “decisive failure in economic stewardship.”

Dr. Bawumia stressed that his analysis was intended to highlight the need for sound economic management and that his remarks were meant to shed light on measurable outcomes of Mr. Mahama’s policies, which he said weakened the country’s economic resilience.

The NPP presidential candidate expressed his commitment to building on the progress achieved under the Akufo-Addo administration.

He underscored the importance of data-driven policies and positioned himself as the candidate most capable of navigating Ghana through future economic challenges.

“Despite the impact of global economic challenges, it might surprise some, including the former president himself, that his administration ranks the lowest in economic performance among all Fourth Republic leaders,” Dr. Bawumia reiterated.

He continued, “Yet, he speaks about our economic performance as though his was superior.”

Business Development

Dr. Bawumia also used the opportunity to reaffirm his commitment to strengthening business development in the country, stressing that resilient businesses are foundational to a thriving economy.

He praised the role of the private sector in creating jobs, driving innovation, and fostering sustainable growth.

The NPP flagbearer detailed policies introduced by the current administration to support Ghanaian businesses, including initiatives aimed at enhancing entrepreneurship, expanding access to credit, and advancing digitalisation.

According to Dr. Bawumia, these steps are critical to building a competitive, innovative, and resilient business sector.

He promised that, if elected, he would continue to prioritise business growth in order to ensure the Ghanaian economy remains vibrant and competitive on a global scale.

“Ladies and gentlemen, as you may know, Bawumia means business! From banking to vice presidency, my commitment to business development has been unwavering.

“Strong businesses lead to a strong economy—show me a prosperous nation, and I’ll show you resilient businesses behind it,” he concluded.

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NPP, NDC have mismanaged Ghana – GUM

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The Ghana Union Movement (GUM) has criticised the New Patriotic Party (NPP), and the National Democratic Congress (NDC) for “mismanaging the country” and supervising the sale of state-owned businesses bequeathed by previous governments.

The Party said the sale of state-owned factories to private individuals and failure to revive defunct state enterprises largely accounted for the growing youth employment situation that had bedeviled the country.

These were contained in a news release issued by the Party’s founder and leader, Reverend Christian Kwabena Andrews, and shared with the Ghana News Agency.

The GUM urged the youth to “be concerned about their future” and vote to break the duopoly enjoyed by the NPP and NDC for decades.

“Embracing both NDC and NPP as a party is just endorsement of the continuity of the Ghanaian predicament. Ghanaian youth must rise to vote massively against these parties, because they were the source of our problems today,” it said.

The GUM said the slow pace of development since the commencement of the Fourth Republic in 1992 justified the call for the “total overhaul” of the 1992 Constitution “considering the mess caused by both NDC and NPP government respectively.”

The Party proposed the adoption of what it termed as “Hybrid African Democracy” which it said was suitable governance model for the country.

“The current model was copied line, hook, and sinker from the West, where they have established and structured institutions to make their democracy work,” it said.

The GUM also called for downsizing of Parliament to reduce the cost of running the business of the House.

The Party said that salaries and benefits awarded to 275 Members of Parliament as well as Article 75 Office Holders “drain the national purse than building it.”

“We urge the public to vote for the Ghana Union Movement for a reliable, better Ghana with the Ghanaian youth as its core,” the Party said.

The GUM caused a stir when it placed third in the 2020 presidential election, beating the traditional Convention People’s Party, People’s National Convention, and the Progressive People’s Party.

The party garnered 105,548 votes, representing 0.805 per cent of the total ballots cast.

Rev. Andrews has indicated that the Party would build on its achievements in 2020 and affect the 2024 presidential and parliamentary elections.

The GUM has promised to establish factories in every region and operate a free port to boost economic activities and improve the living conditions of the people.

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Bagbin Addresses Media Today

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In a significant development, Ghana’s Parliament Speaker, Alban Sumana Kingsford Bagbin is set to address the media on Wednesday, November 6, 2024.

The press conference, scheduled for 2:00 pm at the Justice D.F. Annan Auditorium, Job 600, Parliament House, aims to tackle critical issues affecting Ghana’s parliamentary democracy.

Recent Developments

Alban Bagbin’s address comes amidst significant political developments in Ghana.

As Speaker, he has played a pivotal role in shaping the country’s legislative agenda.

His leadership has been marked by efforts to strengthen parliamentary oversight and promote transparency.

The engagement seeks to provide a platform for the media to discuss pressing concerns impacting Ghana’s democratic growth.

The Speaker, Alban Bagbin, is expected to shed light on recent events that have shaped the country’s political landscape.

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