Former Minister of Finance, Dr. Mohammed Amin Adam, has dismissed claims that the previous New Patriotic Party (NPP) administration misused funds from the Tax Revenue Account, insisting that all expenditures were legally executed.

He insisted that the former NPP government was fiscally responsible by all standards and managed government expenditure expeditiously and without recklessness, especially regarding excess money from the tax revenue set aside for tax refunds.

“It (the money) is set aside to pay tax refunds and to the extent that part of it is not used for tax refunds, the law allows that to be used as regular revenue of the government and you know that, as we say often, money is tangible”
Dr. Amin Adam, Former Finance Minister

Dr. Amin Adam firmly rejected the claims, arguing that the funds in question have always been part of government revenue and were used in accordance with legal provisions.

He explained that while six percent of government revenue is set aside for tax refunds, any portion not utilized for that purpose is legally reallocated for general government expenditure.

“Well, I didn’t know what the Minister of Finance wanted to say because the Tax Refund Account has the revenue in it. It’s part of government revenue.
“Right? It’s always been part of government revenue collected by the Ghana Revenue Authority, except that six percent of that revenue is set aside”
Dr. Amin Adam, Former Finance Minister

He emphasized that Ghana operates a “single treasury account system”, allowing for movement of funds between different accounts. According to him, this structure ensures efficient management of government finances.

“You move money around from different accounts because it’s a pool. We are running a single treasury account system. Right? So irrespective of what the account name is, the Controller and Accountant General can fall on it when the need arises”
Dr. Amin Adam, Former Finance Minister

His response comes after the current Minister of Finance, Dr. Cassiel Ato Forson, alleged that the NPP government had spent GHS 16 billion from the account in a manner inconsistent with its intended use. He challenged his critics to prove that the money was spent outside of legally designated channels.

“If he says 16 billion has been spent, was it spent through the Consolidated Fund or not? What did we spend it on? Well, I’m waiting for them to come out with what they think we have spent it on”
Dr. Amin Adam, Former Finance Minister

Defending the Use of Government Funds

Dr. Amin Adam also addressed concerns that some of the funds had been used for contract payments, including payments to Strategic Mobilization Limited (SML).

He argued that government funds are routinely used for contractual obligations, making such expenditures lawful.

“The Consolidated Fund is used to pay for the execution of contracts. All the projects that are being done across the country are done through contracts. And when the contracts are executed, they are paid for – road contracts, services contracts”
Dr. Amin Adam, Former Finance Minister

He dismissed any notion that such payments amounted to misappropriation of funds, stressing that as long as they were routed through the Consolidated Fund, they were justified.

Addressing Tax Policy Decisions

The former finance minister also weighed in on the debate over recent tax policy changes, including the removal of some taxes by the current administration.

He defended the NPP’s approach to taxation, stating that adjusting tax policies based on economic conditions is a common practice.

“Every government, depending on the times, can bring in a tax or scrap a tax. This is not the first time taxes have been scrapped in this country. In 2017, we scrapped about 17 different taxes”
Dr. Amin Adam, Former Finance Minister

He further stated that some of the recently removed taxes were not even being collected in the first place.

“The emission tax was not being collected. The tax on lotto winnings was not being collected.”

He banked on this to dismiss claims that some taxes have been scrapped when the reality was they were not being collected in the first place.

“And in addition to this, he has also introduced new taxes,” the former Finance Minister said, drawing attention to some taxes Ghanaians should expect under the new regime.

Growth and Sustainability Levy Concerns

Dr. Amin Adam also revealed that several corporate entities have raised concerns over the Growth and Sustainability Levy, which the government has extended beyond its original sunset period.

He confirmed that some chief executive officers (CEOs) would be meeting with Parliament’s Finance Committee to discuss their grievances.

“They want to come and meet the Finance Committee on Wednesday because they have issues with that. And I’m saying that apart from this, there are other industries that are affected by that very tax, the Growth and Sustainability Levy, because they have also extended the period. The sunset clause was removed and extended to 2028”
Dr. Amin Adam, Former Finance Minister

He outlined the industries affected by the extended levy, including banks, insurance companies, telecommunications firms, breweries, and bulk oil distribution companies.

While some have claimed that the levy primarily targets the mining sector, Dr. Amin Adam clarified that it affects both mining and upstream oil and gas companies.

“Mining covers both those doing solid minerals and oil. You can see that from the law. That’s Category B. It refers to mining companies and upstream oil and gas companies”
Dr. Amin Adam, Former Finance Minister

The debate between Dr. Amin Adam and Dr. Cassiel Ato Forson underscores the deep political and economic divisions surrounding Ghana’s public finances.

While the NPP defends its management of tax revenue and overall fiscal policy, the current government remains critical of past expenditures.

As discussions continue in Parliament and among key stakeholders, the controversy over tax revenue allocation and government spending remains a crucial issue in Ghana’s economic landscape.