The Speaker of Parliament, Alban Bagbin, yesterday rescued the beleaguered Finance Minister, Ken Ofori-Atta from the jaws of the Members of Parliament on the Minority side of the House, who were ferociously baying for this blood, accusing him of mismanaging the Ghanaian economy, leaving people poor, hungry and hopeless.
Speakers, including the Minority Leader, Ato Forson, Eric Opoku, Isaac Adongo, John Jinapor, Samuel Okudzeto Ablakwa, Mahama Ayariga, did not minced words at all, pointing to the Finance Minister his abysmal management of the economy and asking him to resign, because he has failed the people of Ghana.
They also accused him of excessive borrowing in the form of bonds to run the economy, pushing Ghana’s total debt stock to GH¢450 billion in 2022 from a total of GH¢120 billion in 2017 with nothing to show.
However, members of the Majority side, came out gun-blazing supporting the Finance Minister, saying although the economy is in turmoil, he must be given the needed support to turn things around. They included, Osei Kyei Mensa Bonsu, Alexander Afenyo Markin, Steven Amoah, Dr John Ampontuah Kumah and Abena Osei Asare.
But at the end of what Mr Bagbin said, was a mere commentary on Mr Ofori-Atta’s brief to MPs on the controversial debt swap process, the speaker words sought to pour cold water on the heat generated by the MPs from the National Democratic Congress (NDC), assuring the Finance Minister of the House support in all his endeavours.
“Honorable Minister, let me assure you that this house and the honourable members are always more than prepared to support you to turn things around for the whole of the country, because we are all affected by what happened, despite our different political colours, Mr Bagbin said.
John Jinapor, Member of Parliament (MP) for Yapei/Kusawgu, likened the government’s Domestic Debt Exchange Programme (DDEP) to the infamous Menzgold debacle.
He maintains that the entire programme spearheaded by the Finance Minister, is not only obnoxious, but one that does not bode well for holders of government bonds or, more broadly, financial sector confidence.
The legislator, said that the Minister’s decision to subject bondholders to a debt exchange is similar to the Menzgold Ponzi scheme that hit the country several years ago.
“If you digest all these, the most important thing the Finance Minister has told the people of Ghana is very simple. If you evaluate what he is doing, and evaluate what NAM 1 of Menzgold did, the two are synonymous and the same. There is no difference”, he emphasized.
The MP, has also advised Leonard Chumo, who has been appointed by the International Monetary Fund (IMF) as a financial adviser to the Bank of Ghana, to exercise extreme caution.
Mr Jinapor, stated that Mr Chumo, must thoroughly review all documents provided to him by the Central Bank.
“I welcome Mr Chumo, but please open your eyes at the Bank of Ghana…read and scrutinise the documents,” Mr Jinapor said.
Following an economic downturn and difficulties in servicing its debt, the government implemented the domestic debt exchange programme to give itself more time to meet its fiscal obligations.
Isaac Adongo, MP for Bolgatanga Central Constituency, has asked Ken Ofori-Atta, to resign on the floor of Parliament.
He demanded the immediate resignation of Mr Ofori-Atta before going out of the House, insisting that the Finance Minister, has failed woefully in the discharge of his duty.
According to Adongo, the Finance Minister has increased the risk of government bonds, while continuing to quote the Holy Bible to conceal his incompetence. He cautioned Ghanaians to beware of public officers who do not demand payment for their service, alluding to the no-salary arrangement for Mr Ofori-Atta.
He said everything shows that the Finance Minister has failed in discharging his duty, adding Mr Ofori-Atta, has made government bonds riskier than they used to be, to the extent that he says lending to him may be safer.
Mr Adongo, said the Finance Minister only continues to quote the Holy Bible to cover up his incompetence.
Mr Adongo, said such state officials like Mr Ofori-Atta are dangerous to the health of the country and that is where the current Finance Minister has taken Ghana to.
The MP for North Tongu, Samuel Okudzeto Ablakwa, found it troubling that the government has refused to take responsibility for the country’s current economic woes.
He maintains that government single-handedly, dragged the nation into the mess it is in through its fiscal recklessness.
“We keep blaming external factors. Why are we the only country in Africa going through a Debt Restructuring Programme? Are we saying these external factors did not affect others? We have a Finance Minister who refuses to take responsibility.”
“Instead of him [Finance Minister] to tender in a resignation, he has come here to offer dubious explanations,” he said on the floor of Parliament yesterday.
He further indicated that, his records show that government expenditure has gone up by GH¢82 billion between last year and this year.
“How can this be the case, especially at a time government is demanding money from pensioners and individual bondholders?”
“I support a demand for a resolution by this house that the pensioner bondholders, individual bondholders should be exempted from this draconian Ken Ofori-Atta, Bawumia, and Nana Addo inflated debt exchange programme.”
He further indicated that his records show that government expenditure has gone up by GH¢82 billion between last year and this year.
“How can this be the case, especially at a time government is demanding money from pensioners and individual bondholders?”
Mr Bagbin, noted that the government can solve the economic challenges without touching their funds.
“The pensioners were with us yesterday and poured out their hearts. I am happy they met you too and you were able to assure them that they will be exempted.
“They are here today, they had even programmed to picket not only at your Ministry, but also in Parliament. I am happy to hear that they are exempted.
“What I can tell you is that, leave our pensioners alone. You can solve the problem without touching the small money we have given to them,” he said in Parliament after the Finance Minister briefed the House on the Debt Exchange programme.
“And so anytime you have these challenges, this is your home. This is where you should come to. The Jubilee House or the Flagstaff House, represents the state. This house, represents the people, this is where the powers are and this where the sovereignty resides, because the sovereignty is in the people and we represent the people and the powers of government are also with the people and we represent them. So anytime there is any key issue, like a key policy you need the approval of this house. Very important.
“You can get the go ahead form the Jubilee House or Flagstaff House, but this house, is the one that will have to approve and say, it is in the interest of the people, go ahead to implement it. And so at any time, you’re having challenges, we are always prepared to receive you and to share views with you.
“Sometimes, on the floor, the members may not be that… but we meet outside the floor and discuss things dispassionately, I can tell you that members on both sides of the house, propose solutions and some of those solutions could have helped us in approving some things that we ourselves without having the full facts of the situation, including the budget we approved.
“We have information like you have given us today, that some areas in the budget, that we could have touched to help in the domestic debt restructuring, and so you’re always welcome, I am fully aware that members know the challenges that we have in this country; major challenges such as waste, major challenges such as ignorance, and major challenges such as agreed and this House is properly positioned to assist any government to reduce these things.
“Waste, ignorance, and greed, we know how to do it and we are elected to do so and can always support to do a better job. We are not saying you’re not doing a better job, but can always support you to do a better job than you’re doing now.
He asked that, the motion be submitted for a thorough debate, but asked that “the IMF and the World Bank, must be more democratic than they are because in negotiating for these things, they should hear from this House; Parliament and get our stamp then they carry the whole country along. When it is only with the executive, then it means that the post-war structures that we established, have lived the usefulness and we now have to get new structures, including the United Nations, we have to challenge those structures to responds to the current realities. That is notice to the IMF and World Bank”.
Mr Ofori-Atta, had told Parliament that he has met the pensioners who have been picketing to protest their inclusion in the Domestic Debt Exchange Programme (DDEP) three times.
He said, he has explained to them the terms of the new bonds.
He said “government is committed to the wellbeing of our senior citizens and pensioners. The government will honour their coupon payments and maturing principles.”
He added “I have met with them on three occasions where I explained the terms of the new bonds. I subsequently wrote to their convener to let him know that all pensioners who did not participate in the bond offerings are exempt.”
Finance Minister, Ken Ofori-Atta, has said all pensioners who failed to tender their old bonds for new ones under the DDEP, have been exempted from the programme.
Mr Ofori-Atta said “Government remains committed to the wellbeing of our senior citizens. It has caused me great distress that a number of them have picketed at the premises of the Finance Ministry since Monday, I have said that government will honour their coupons…all pensioners who didn’t participate in the debt exchange are exempted.”
