Press Statement
- The NDC Minority in Parliament has taken note of the apology rendered to Ghanaians by the Finance Minister, Dr. Mohammed Amin Adam for the reckless and avoidable Domestic Debt Exchange Program (DDEP) of the Akufo-Addo/Bawumia NPP government that has brought untold hardship on the people of Ghana.
- At a townhall meeting in Accra on Tuesday, 6th August, 2024, the Finance Minister pleaded for forgiveness from the people of Ghana for the unbearable economic difficulties his government has plunged the country into through the Domestic Debt Exchange Program. Yet, in the same speech, the Minister strangely lauded the unpopular and painful DDEP, saying it was highly successful.
- While the Minister admits that the Akufo-Addo/Bawumia NPP government has brought untold hardship on Ghanaians, he attributed this to the DDEP claiming it was painful but necessary for economic recovery. He also failed to acknowledge and apologise for the many other economic sins of his government.
- For the avoidance of doubt, the painful and cruel haircuts that were imposed on Ghanaians including pensioners were unnecessary and unpardonable.
- The haircuts that Ghanaian Banks and individuals suffered were not only from the DDEP but also the restructuring of external debts such as Eurobonds. This government defaulted in servicing debt owed to Eurobond holders since 2022. This caused Ghanaian Banks and individuals to lose about 37% of their investment in Eurobonds.
- The reckless and avoidable DDEP is only one of the woes of the Akufo-Addo/Bawumia NPP government’s reckless economic mismanagement. They also vindictively collapsed indigenous Ghanaian Banks and eroded confidence in the banking sector. As we speak, thousands of Ghanaians cannot access their locked-up funds in the financial sector.
- As far back as 2019, the NDC Minority is on record to have cautioned this Akufo-Addo/Bawumia NPP government against its reckless borrowing binge and unsustainable debt accumulation. They refused to heed our advice and kept on borrowing for consumption purposes. Having inherited total public debt of GHS120 billion in 2017, Ghana’s total public debt is now a staggering GHS742 billion, with very little to show for.
- After borrowing for reckless consumption leading to unsustainable debt, the Akufo-Addo/Bawumia NPP government resorted to deliberate printing of money by the Bank of Ghana to the tune of GHS77 billion to finance more reckless expenditure.
- The uniliteral imposition of a Domestic Debt Exchange is therefore just one of the many sins of the Akufo-Addo/Bawumia NPP government occasioned by their reckless borrowing for wasteful consumption and mismanagement of Ghana’s economy in the past seven years and eight months.
- Ghanaians deserve a genuine and unconditional apology from Dr. Mohammed Amin Adam and the Akufo-Addo/Bawumia NPP government for causing the following:
a. Taking inflation to high and hyper levels of 54% in 2022 (currently 22.8%).
b. High food inflation, leading to high cost of living and shrinkflation.
c. Deliberate printing of money by Bank of Ghana to the tune of GHS77 billion to finance reckless expenditure.
d. An insolvent Bank of Ghana with total Loss of GHS71.3 billion and Negative Equity of GHS55.1 billion.
e. Vindictively collapsing indigenous Ghanaian banks and eroding confidence in the banking sector.
f. Thousands of Ghanaians still cannot access their locked-up funds in the financial sector.
g. Defaulting in servicing of debt owed to Eurobond holders since January 2022
h. Forcing Ghanaian Banks and individuals to lose about 37% of their
investment in Eurobonds.
i. A collapsed COCOBOD with cumulative losses of GHS13.62 billion.
j. Collapsed state-owned enterprises.
k. A bankrupt economy
l. Default (Yentumi ntua) economy
m. Crude and painful haircuts on hard-earned investments of Ghanaians
n. Debt-riddled economy
o. Imposing over 40 crippling taxes on Ghanaians and businesses
p. High monetary policy rate
q. High lending rate
r. Highest unemployment rate of 14.7% under the Fourth Republic
s. Extremely High youth unemployment of 35%
t. Massive uncontrolled corruption.
- It is an undeniable fact that Ghanaians are experiencing unprecedented economic hardship and poverty. The rich have been reduced to middle-class, the middle-class has become poor and the poor have become poorer with the World Bank estimating that one-third (33.3%) of Ghana’s population is expected to be in poverty.
- Time has run out for the Finance Minister, Dr. Mohammed Amin Adam and the failed Akufo-Addo/Bawumia NPP government. They are completely bereft of ideas to turn-around the bankrupt economy they have created. Ghanaians deserve accountability and not apologies for their recklessness, mismanagement and failed stewardship.
***END***CASSIEL ATO FORSON (PhD), MP
MINORITY LEADER
