- snubs recommendations from three professors
Despite the various recommendations from experts on measures to adopt in rescuing the Ghanaian economy, President Akufo-Addo, is unwilling to take the toughest of all decisions; downsizing his appointees to save cost, but prefers dancing around the hardship Ghanaians are going through with daily rising costs of goods, especially fuel.
The former Board Chairman of the Ghana Revenue Authority (GRA), Prof. Stephen Adei, a senior lecturer at the University of Ghana, Prof. Ransford Gyampo , a former United Nations Senior Advisor, Prof. Baffour Agyeman-Duah among others, have demanded a drastic cut down on the number of appointees in the President in various interviews.
The much-awaited press conference by the Finance Minister on the economic difficulty the country is experiencing, came on yesterday without any significant sacrifices.
The announced reviews on many social interventions, including the Free SHS policy, did not happen, although many government payments, such as statutory, are in huge arrears.
Ken Ofori-Atta, had announced a 10 percent cut on discretionary spending, 50 percent cut on fuel coupon allocation to government appointees, complete moratorium on the purchase on imported vehicles, complete moratorium on foreign travels except with prior approval, elimination of ghost names from payrolls, 30 percent pay cuts for ministers and Chief Executives Officers of State-owned Enterprises and moratorium on new public sector institutions by end of April, 2022.
His comments come after President Akufo-Addo, claimed he had reduced the salaries of all his appointees by up to 30 percent without disclosing how much they were earning and what they will be taking home henceforth.
Members of the Council of State, have also decided to reduce their monthly allowances by 20 percent until the end of the year with its Chairman, Nana Otuo Siriboe II, saying this decision was taken due to the economic difficulties that the country is facing at the moment. Nana Otuo Siriboe II did not mention what they’re collecting and what they’ll be getting going forward.
But Ato Forson, the Ranking Member of the Finance Committee of Parliament, has reacted to the fiscal measures announced by Mr Ofori-Atta, saying they were “just cosmetic and Empty”, adding “it will further erode confidence in the economy”.
He asked that the government should rather “Place a moratorium on new loans”, “Cut 2022 foreign financial projects by at least 50%” and deliver on a promise to review all flagship programs!”
Prof. Stephen Ade,i had stated that the decision to cut down salaries of appointees was not the solution to the economic crisis the country is experiencing, but a symbolic gesture to show that he and his appointees were leading by example and recognizing that the country is going through challenges.
A Senior Lecturer at the University of Ghana, Prof. Ransford Gyampo, had called on President Akufo-Addo, to consider some austerity measures, to salvage the country’s dwindling fortunes stating that, Mr Akufo-Addo, has failed to meet the expectations of many Ghanaians who voted for him.
In an open letter on Facebook, the Political Scientist, added even though the President has done his best, there are still a number of challenges which need to be addressed.
Prof. Baffour Agyeman-Duah, had also recommended that the President reduce the size of his government as a way of demonstrating to Ghanaians that realistic measures are being taken to tackle the economic challenges because in his view, it is too large.
Professor Stephen Adei, who until recent was the Board Chairman of GRA, and who words hold sway in the Akufo-Addo government in an interview with journalists on the sidelines of a special convocation to confer honorary doctorate degrees on four eminent Ghanaians at GIMPA on Wednesday March 23, said that cutting salaries is only a gesture indicating the President and his government are leading by example and recognizing that the country is going through challenges.
“Two weeks ago, I said that the executive, parliament should cut their emoluments by 25 per cent. Let us get it right, even if they do , it is a small amount, it is not going to save us from this situation but it is a leadership example. You are sending the message to the people that we are in difficulty, people are suffering and we want to suffer with you. So that hopefully, in a year or a year and a half, we will all come out.
“So don’t let anybody think that when they cut these salaries then the problem is solved all together because we are talking about half a billion when we need billions.”
He however, stated that he expects the President to “find ways of cutting expenditure, increase revenue, cutting off the size in the government”, amongst others as ways of rescuing the economy.
Prof. Adei further added that, to be able to raise the needed revenue to solve the problem, he said Ghanaians must accept to pay the E-levy.
“I think that even though all of you don’t like it, I think that we should go for the E-levy, it is a tax which we need now to save Ghana from its current situation. The reason is that there are very limited avenues in the short-term to raise revenue. If you and I don’t support the government at this stage we will pay it through the other way – falling Cedi, rising inflation. So people don’t realize when they say they won’t pay the E-levy, you will end up paying,” he said.
Prof Adei further indicated, “I expect [the President] to find ways of cutting expenditure, increase revenue, cutting off the size in the government…”
In advocating for the controversial E-Levy bill, Prof Stephen Adei explained the government generates limited revenue and the E-Levy will help the government generate more revenue to be able to fulfil the promises made to Ghana.
He stressed that if Ghanaians keep saying they will not pay the E-Levy, they will end up paying without even knowing.
“I think that even though all of you don’t like it, I think that we should go for the E-levy, it is a tax which we need now to save Ghana from its current situation. The reason is that there is a very limited avenue in the short-term to raise revenue. If you and I don’t support the government at this stage we will pay it through the other way – falling Cedi, rising inflation. So people don’t realize when they say they won’t pay the E-levy, you will end up paying,” Prof Stephen Adei noted.
Prof. Gyampo, had also called on President Akufo-Addo to suspend some privileges being enjoyed by himself and other government appointees.
“Reduce the size of your government now, by realigning some functionally duplicative ministries and dropping some ministers. Some proposals can be made to this effect, but a government that wants to lead by example in these hard times, should know the ministries that are a complete waste and drain on our limited resources and either realign or scrap them.
Park all the V8 Vehicles, auction some, and let the remaining be used only when appointees are traveling out of the city centers to the remote hinterlands where the real use of these vehicles may be needed. Let these appointees drive their salon vehicles to work. Let us supplant the view that, poor people are extravagant”, portions of the post read.
He also added that, “If necessary, please reduce your own salary and that of your remaining appointees by 30 percent, and reduce or completely suspend the payment of all the allowances and per diems that are given to people who already earn huge salaries (even when reduced by 30 percent).
Apart from the Presidency, please reduce or completely withdraw the fuel coupons that grant free fuel to all appointees, friends and family members, so all will buy fuel and be frugal with the little they have. Let all appointees stay and work here in Ghana. If they have to travel, let them fly with economy class tickets. Your recent flight with a commercial airline to Dubai is commendable and must be emulated”.
To mobilise more revenue, Professor Gyampo, also advised the government to reinstate the scrapped toll booths with an adjustment from 50 pesewas to 1 cedi for salon vehicles, and from 1 cedi to 2 cedis for big engines.
“Scrap some of the ‘nuisance taxes’ on petroleum products to cushion Ghanaians. The 2020 Auditor-General Report suggested that we lost 12.8 billion cedis due to infractions and other irregularities committed by statutory institutions. Please quickly institute measures to ensure we don’t continue to fetch water with basket, even in these hard times”, Professor Gyampo suggested.
In conclusion, he urged the President to consider reshuffling his appointees to make room for “fresh ideas and renewed energies.”
Speaking during a meeting with the President at the Jubilee House in Accra on Tuesday, March 22, Nana Otuo Siriboe II said “Mr President, over the past few weeks, the Council has been deliberating on the current economic conditions of the country and have been collecting views with the view to sharing with you as early as possible.
“As we were going through our routines, you and your cabinet were at a retreat over the same issues. Since yesterday, we have been fed with snippets of information regarding some of the decisions that you have made.
“We are particularly delighted to read that you and your cabinet have decided to reduce some of your emoluments and your allowances. Mr President, in tandem with your decision we as Council of State had also decided that we will reduce our monthly allowances by 20 per cent until the end of this year.”
He said “the Minister for Finance is going to have major engagement with the nation on Thursday where he is going to be in the position to lay out specifically the measures that we have taken or we intend to take to correct or put the ship of sail better.”
Mr Akufo-Addo, further observed that the challenges that are facing Ghana are similar to those pertaining in many countries around the world and noted that it is no secret that Ghana is going through economic turbulence but said the government has the ability of finding solutions to the challenges.
“It is no secret that our economy is going through difficult times. It is also no secret that we are not alone in that exercise. Many of the phenomena that we are facing are phenomena that are apparent in many other parts of the world but that doesn’t therefore mean that the government is impotent in trying to find solutions,” the President said.
Members of the Council of State have also decided to reduce their monthly allowances by 20 per cent until the end of the year.
Reacting to this in an interview with TV3 on Wednesday March 23, Prof Agyemang-Duah, who is also the Chief Executive Officer of the John Agyekum Kufuor Foundation said “I think it is exemplary of the Council of state.
As the chairman said, their decision follows that of the government to reduce allowances of government appointees. So on the two fronts; we are beginning to see some visible changes towards the crisis we have but this is just the beginning.
“Regarding the government’s own decision to reduce salaries of the appointees, I think that is also is good, I hear it is about 30 per cent. But salary reductions are part of what I will call the invisibles because people don’t see, all they know is that salaries have been reduced. So probably, the government can go another step to do more visible illustrations of this new resolve to contain the exploding expenditure of government.
“What do I mean by this? First of all, the size of government itself, as many people have said, is too much and I think if the government were to look critically at overhauling the whole structure of governance it will reduce tremendously the amount that we spend on it. Because if you look at some of the ministries and agencies of government, certainly many of them can merge, some of them can be reduced to low levels.
“I think, first, we can commend the government, we should commend the Council of State but I think they need to take further steps to really dramatize to the public that we are in a crisis mood and that we need to undertake austerity measures.”
The governance expert suggested to the government to go beyond cutting the salaries of the executive to help in stabilising the economy.
In another interview on the Asaase Breakfast Show yesterday, Prof. Agyeman-Duah, said the executive must avoid extravagant lifestyles to save cost.
“As I said earlier they are not adequate. I heard that Parliament has been called upon to make the same move because it cannot be imposed on them and I have heard some discordant voices from that institution, those who said no, and those who said we may upon certain conditions, so it is going to be tough,” he said.
“But I think ultimately it depends on the government itself that is why in addition to the salary reductions there must be other visible tangible measures that will impress on people, one of them for instance is simply for government to begin to avoid opulence lifestyle and be more frugal in how it serves the public.
“And this can be seen in whether the president for instance is going to continue to move around with 40 or 50 cars.
When you know that fuel prices have hit the roof and you are going to line up 40 cars just to take you to a place. So, if the president will say in view of the austerity measures I am going to use 10 cars, that will be dramatic for the public,” Agyeman-Duah added and commended the executive and Council of State members for opting to cut down their salaries and allowances respectively.
