The National Democratic Congress (NDC) Minority in Parliament has slammed Finance Minister Dr Mohammed Amin Adams over his recent apology to Ghanaians for the economic difficulties resulting from the Domestic Debt Exchange Program (DDEP).
The Minority Caucus, in a statement issued by its leader Dr Cassiel Ato Forson, contended that while the Minister sought forgiveness for the “painful but necessary” program during a town hall meeting, the apology was incomplete and insufficient.
Dr Ato Forson pointed out that the Minister of Finance failed to address the broader economic mismanagement by the New Patriotic Party administration.
“At a town hall 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”.
Dr Cassiel Ato Forson, Minority Leader
The Minority further argued that the government’s actions have compounded the suffering of ordinary citizens, leading to widespread economic hardship and poverty.
The Minority Leader, Dr. Cassiel Ato Forson, condemned the DDEP as both “reckless and unnecessary,” emphasizing that it was part of a broader pattern of poor financial decisions made by President Akufo-Addo and Vice President Dr Bawumia’s administration.
He highlighted that beyond the DDEP, the government has also imposed severe “haircuts” on Ghanaian banks and individuals through the restructuring of external debts, including Eurobonds.
“The government’s failure to service Eurobond debts since 2022 has caused a 37% loss in investments for Ghanaians, further eroding trust in the financial sector”.
Dr Cassiel Ato Forson, Minority Leader
The Banking Sector Crisis
The Member of Parliament for Ajuamko Assiam Enyan Constituency also criticized the government’s role in the collapse of indigenous Ghanaian banks, which he described as “vindictive,” leading to the current lack of confidence in the banking sector.
According to him, thousands of Ghanaians are still unable to access their locked-up funds in the financial sector, a situation that the Minority attributes to the government’s poor economic stewardship.
“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”.
Dr Cassiel Ato Forson, Minority Leader
This unsustainable debt led to what the Minority describes as “reckless consumption,” which in turn forced the government to resort to printing GHS77 billion by the Bank of Ghana to finance its expenditures, further exacerbating the country’s economic woes.
Call for Broader Accountability
In a fervent call for accountability, the Minority Leader Dr Cassiel Ato Forson called for the Finance Minister and the New Patriotic Party administration led by President Akufo-Addo and Vice President Dr Mahamudu Bawumia to apologize for a litany of other economic failures.
These failures, the Minority listed include hyperinflation causing inflation to reach as high as 54% in 2022, and high food prices leading to a sharp increase in the cost of living and the collapse of key state institutions including the Bank of Ghana, which reported a loss of GHS71.3 billion and negative equity of GHS55.1 billion.
He also lamented over the perceived neglect of the financial sector, which led to thousands of Ghanaians being unable to access funds, with the financial sector in disarray, and failed debt servicing, which also led to defaults on Eurobond payments since January 2022.
Other failures according to Dr Ato Forson include high taxation, which he noted include over 40 new taxes imposed on Ghanaians and businesses, rising unemployment, which he noted is the highest unemployment rate under the Fourth Republic at 14.7%, with youth unemployment at a staggering 35%.
The Minority Leader asserted that these failures have led to unprecedented economic hardship in Ghana, reducing the rich to middle-class status, the middle class to poverty, and the poor to even deeper poverty.
According to him, the World Bank report indicates that one-third (33.3%) of Ghanaians are living in extreme poverty.
“It is an undeniable fact that Ghanaians are experiencing unprecedented economic hardship and poverty. The rich have been reduced to the 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”
Dr Cassiel Ato Forson, Minority Leader
The NDC Minority believes that the apology offered by Dr. Amin Adam is insufficient and lacks sincerity.
Dr Ato Forson pointed out that the “government’s recklessness, mismanagement, and failed stewardship require more than just an apology, emphasizing the need for strict accountability.
He insisted that time has run out for the Finance Minister and the New Patriotic Party administration, as Ghanaians deserve concrete actions to rectify the economic damage, not just words of regret.
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