As Ghana approaches the much-anticipated December 7 elections in 2024, concerns over government spending have been reignited, with allegations of extravagant projects and profligate expenditures taking centre stage.

The latest revelation, as brought to light by Member of Parliament for North Tongu Constituency, Samuel Okudzeto Ablakwa, sheds light on what he describes as a ‘shockingly profligate spending spree’ by the President Akufo-Addo and Vice President Dr Mahamudu Bawumia administration during the 2020 electioneering campaign.

A key example highlighted by Honorable Ablakwa is the construction of a 50-bed guest house in Tamale, a project that took precedence even during the global COVID-19 pandemic.

Honourable Ablakwa’s revelation further underscores the questionable decision-making surrounding the allocation of funds during crucial periods. According to him, the cost of the guest house amounted to a staggering GHS139.9 million, with the procurement process being characterized as a single-source arrangement with De Simone Limited.

“Consider this classic example (as attached) of how during the 2020 elections, and at the peak of COVID-19 when other central banks across the world were focused on monetary policy interventions to mitigate the adverse economic impact of covid, our Addison-led central bank shockingly made the construction of a 50-bed guest house in Tamale a priority”.
Samuel Okudzeto Ablakwa

Single-Source Procurement and Lack of Competition: A Troubling Trend

Furthermore, the North Tongu Member of Parliament expressed concerns about Dr. Ernest Addison, at the helm of the central bank inclination toward single-source and restricted tendering practices.

Honourable Ablakwa asserted that documents in his possession revealed a consistent pattern of non-competitive procurements under Dr Addison’s watch as the Governor of the Bank of Ghana.

According to Honorable Ablakwa, the trend of events under the Governor of Ghana’s central bank raises concerns about transparency, accountability, and the judicious use of public funds, particularly when considering the severe economic impacts of the COVID-19 pandemic on Ghanaians.

“The venerable Togbe Afede XIV was obviously right when he wrote in his latest op-ed that the BoG has failed us”
Samuel Okudzeto Ablakwa

Moreover, the Ranking Member of the Parliament Committee on Foreign Affairs posited that the issue of single-source procurements becomes particularly contentious when juxtaposed with President Akufo-Addo and Vice President Dr Bawumia ticket’s pre-election stance against such practices.

According to him, the shift from the condemnation of single-source procurements to its widespread adoption by President Akufo-Addo’s administration is a clear departure from principle and a disconcerting trend toward unchecked government spending.

“Remember that in opposition, the Akufo-Addo/Bawumia ticket condemned single-source procurements and argued that it was a veritable conduit for corruption”.
Samuel Okudzeto Ablakwa

It is important to mention that profligate spending during election years can jeopardize the country’s financial stability and fiscal discipline as the allocation of exorbitant funds to projects with questionable necessity raises concerns about the responsible use of public resources.

Again, profligate spending can have long-term economic consequences, potentially leading to inflationary pressures and an unsustainable debt burden. Evidence over the past years proves that Ghana’s economic woes mostly worsen years after every general election mainly due to election year expenditure by the incumbent government, the obvious reason the country often seeks support from the International Monetary Fund.

It is therefore important to emphasize that as Ghana heads into the 2024 elections, Honorable Ablakwa’s revelations must serve as a clarion call for fiscal prudence and enhanced accountability as the dangers of profligate spending are clear, hence the need for the government to adhere to budgetary estimates, prioritize essential needs, and maintain a transparent procurement process.

Again, in the spirit of fostering a healthy democracy, citizens and stakeholders must remain vigilant, demanding accountability from political leaders as the 2024 December 7 general election undoubtedly presents an opportunity for Ghanaians to scrutinize and hold accountable those seeking leadership positions, ensuring that fiscal responsibility remains a cornerstone of governance.