In what appears to be a direct reply to his vice, President Nana Akufo-Addo yesterday, unambiguously accepted responsibility for the country’s current economic challenges, emphasizing that executive powers are ultimately vested in the hands of the president.
In his address to Parliament on the 2024 State of the Nation (SONA) the president, acknowledged that the accountability for challenges rests squarely with the president.
The President’s statement comes amid recent remarks by Vice President Dr Mahamudu Bawumia, at the University of Professional Studies – Accra (UPSA) who clarified that the Economic Management Team (EMT), under his leadership, lacks decision-making powers and serves solely in an advisory capacity to the cabinet.
Dr Bawumia, highlighted that the EMT provides counsel, but doesn’t wield decision-making authority.
As the head of the EMT, he had previously faced criticism for the economic challenges confronting Ghana leading to numerous taxes, levies, and tariff adjustments among other draconian measures.
Akufo-Addo underscored that, as the leader, he or she assumes the blame for the difficulties faced by the nation.
“Under the Constitution, the executive power of the state is vested in the President of the Republic. He or she is the Executive. There is no ambiguity about where the buck stops when it comes to responsibility for what happens in the government. It stops with the President, he or she has ultimate responsibility. It would be an unwise President that would pretend to have all the answers and refuse the advice of his officials, but the fact remains that, the President holds the executive power.
“The Cabinet, and the Ministers of State, all act in an advisory manner. Of course, a member of the government might take an idea, be it generated by the President or the official or a committee, and turn it into a huge success, and the honours would be claimed or shared where public perception falls. But, ultimately, the President is responsible, and, therefore, takes the credit or the blame for whatever happens in his or her government.”
President Akufo-Addo, also emphasized the government’s intentional efforts in strategic planning to ensure the safety and security of Ghana.
He highlighted that, Ghana has remained unaffected by the extremism witnessed in neighbouring countries due to meticulous planning.
Akufo-Addo underscored the commitment to the well-being of the armed forces and all security agencies, emphasizing the allocation of resources to ensure their readiness.
President Akufo-Addo, declared that the country is turning a corner, having overcome its challenges and preparing for the future.
The President expressed confidence that, despite past difficulties, Ghana is now on the path to recovery.
“Mr Speaker, we stumbled, but we are rising again. We were bruised, but we are healing. We have recovered our footing. We have dusted ourselves off, and now we face tomorrow with confidence. Every day we pray and hope that adversity may spare our families, our communities and our dear nation.”
“But should we be confronted by misfortune; we must face it like people with a proud history who fight and do not flee. Yenim ko; yen nim adwane. That is the Ghanaian spirit. That is our armour and our shield. This is our ethos,” he stated.
The President as part of his speech, also revealed that the government would soon introduce a Performance Tracker, a tool aimed at ensuring transparency and accountability in the execution of infrastructure projects across the country.
According to him, the tracker, will be launched in March this year.
He said the tracker will help address longstanding concerns about the accuracy and reliability of project presentations, particularly the use of artist’s impressions to depict outcomes.
Speaking about the initiative, the President emphasized the need to uphold standards and deliver tangible results to the people.
The President assured that the recent change in leadership at the Ministry of Finance, will not impact the terms agreed with the International Monetary Fund (IMF) regarding the three-year US$3 billion Extended Credit Facility (ECF).
The ECF is aimed at supporting Ghana’s economic policies and reforms.
On February 14, President Akufo-Addo, relieved Ken Ofori-Atta of his duties as Finance Minister and appointed Mohammed Amin Adam as his replacement.
Despite this change, President Akufo-Addo emphasised that the government remains committed to implementing the terms agreed with the IMF.
“Mr Speaker, it is important to underline that the recent change in the leadership of the Finance Ministry will not affect the Government’s commitment to implementing the terms agreed with the IMF to ensure that we restore the economy to healthy growth as soon as possible.”
He revealed that the government has fulfilled its financial obligations by settling the last coupons owed to bondholders.
The government announced a domestic debt exchange programme in 2023 targeted at individual and pension bondholders as part of its revenue target to reach an agreement with the International Monetary Fund (IMF).
President Akufo-Addo, disclosed that GH¢5.8 billion has been paid to the bondholders.
“For the last leg of the domestic debt exchange on September 5, 2023, a week ago last Tuesday, on February 20, 2024, the second coupon of GH¢5.8 billion was paid to domestic bondholders. This is the largest coupon paid in a day in Ghana’s history.
“On the external debt side, we have achieved a significant milestone by reaching an agreement with our bilateral creditors and I will use this occasion to thank the Republic of China and France, co-chairs of the official creditors committee for their positive roles in this achievement.”
He added that, having successfully paid the domestic bondholders, the government is currently engaging Ghana’s external creditors to achieve a successful implementation of the extended credit facility with the IMF.
“We have also intensified our engagement with our external bondholders on the principles of transparency, fair treatment consistent with the IMF debt sustainability analysis and good faith. We are focused and committed to accelerating the process.”
Bondholders kicked against the announcement of the programme, but it was eventually rolled through, which led to months of picketing at the Finance Ministry.
The groups, made up of the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, lamented that the government, had failed to honour a Memorandum of Understanding meant to guide an agreed payment plan.
