Minority Leader, Haruna Iddrisu, has disclosed that the economy of Ghana is on the brink of bankruptcy.
According to him, the current state of the economy isn’t one to write home about, albeit, President Akufo-Addo insists Ghana is having a “robust” economy. Mr Iddrisu explained that the President is not accepting the reality of the challenge the country is faced with.
Reacting to the downgrading of the country to a B- by international ratings agency, Fitch, Mr Iddrisu expressed the President’s unwillingness to yield to the true situation on the ground.
“Truth is, Ghana’s economy is stuttering on the precipices of bankruptcy. When you have an economy where you have borrowed 450 billion and your deficit is likely to be around 40 percent of GDP, you cannot describe that economy as a robust economy. Particularly when you still have unaccounted arrears. Some ministries, departments and agencies have committed, it’s just that government has not been able to pay them. We need to know our outstanding arrears. How much is it?”
Haruna Iddrisu
Despite the downgrade, the Finance Ministry released a statement insisting the country’s debt situation is still sustainable. According to the ministry, the current loss of patience on the part of investors, alluded to by the Bloomberg’s article is not as a result of the economy plunging into debt distress, but rather due to the impasse in Parliament over the E-levy.
In reaction, the Minority Leader revealed that two years ago, the minister of finance came to parliament to say that “I have good grading from Fitch and Moody’s”, questioning why the finance minister is “not able to accept the simple truth today”.
“That the same persons who hailed you yesterday are dissatisfied with your performance in order that we can engage and have a national conversation on redeeming the economy. Because it will affect the quality of life, it will affect employment and it will affect lives. So, I think that this posture of the President that all is well when it is not well, that deception must cease”.
Haruna Iddrisu
Minority Leader calls for industrial peace
Commenting on the nationwide strike impasse by teachers, Mr Iddrisu called for “industrial peace and harmony” given the state of the economy. Nonetheless, he alluded the current situation to conditions of service of teachers are “not the best”.
“For a majority of Ghanaian workers, if university teachers are not happy, government must only engage to appreciate the issues. This is not the first time UTAG has been on strike. I have worked with Fair Wages and Salary Commission in order to deal with matters affecting UTAG… Their conditions of service, compared to others and maybe other allied institutions is not the best. But what do we do?”
Haruna Iddrisu
Given the opportunity to rectify the situation, the minority leader opined that he would engage thoroughly with the university council, Fair Wages and Salary Commission and the executives of UTAG. Mr Iddrisu however conceded that sometimes it is not just the “question of engagement”.
“I recall as minister for labour, one of the finest words of President John Dramani Mahama as he then was… ‘Haruna hold the line, keep strong and be firm’. I’m sure the minister for labour current, maybe doing his utmost best. His nemesis or problem will be at the ministry of finance”.
Haruna Iddrisu
Last year, Mr Iddrisu noted that he predicted the country will suffer a number of “industrial disputes and conflicts” given the fact that, COVID has worsened the country’s unemployment situation. Thankfully, he revealed that the public sector hasn’t undergone similar fate as no “redundancies of persons losing jobs” as a result of COVID, has been recorded.
“But the negotiations of public sector wages are problematic. Probably even today and tomorrow, something significant will happen in Ghana because the workers would have to go and get their salary and then appreciate what it meant by 4% adjustment travelling towards a 7% adjustment. I just hope that the Controller and Accountant General gets it right so it doesn’t get persons worried to want to embark on strike actions which can affect productivity”.
Haruna Iddrisu
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