Hon. Richard Acheampong, MP for Bia East and Ranking Member of Parliament’s Finance Committee has emphasized that the Central Bank and the Ministry of Finance have a duty to devise solutions to mitigate the depreciation of the cedi.
Hon. Acheampong asserted that the Minister of Finance should not blame Ghanaians for the government’s inability to find a permanent solution to the cedi’s persistent depreciation.
He pointed out that Ghana’s financial struggles are deepening, as the country’s debt continues to balloon quarterly, driven by the cedi’s downward spiral against the dollar.
“There is no end in sight [as] they don’t have any solution for the problem. He [Finance Minister] came to complain. Leaderships are put there to solve problems. They are not there to complain to us. Because we could not manage it, they were voted to power to take responsibility and manage the currency for us”.
“So if you come telling me that the donor partners are not disbursing funds to you, what accounted for that? We don’t have the credibility. We told them to put some break on the excessive borrowing”.
Hon. Richard Acheampong
Hon. Acheampong observed that, despite cautionary warnings, the Ministry of Finance remains confident that its innovative borrowing strategies will ultimately yield beneficial results, justifying how they were achieved.
He expressed concern about the bloated government structure and its detrimental impact on the economy, particularly in light of the significant resources required to support the 125 ministers appointed by the President.
The Ranking Member charged that the government’s misallocation of borrowed funds, away from productive sectors, is responsible for the country’s current economic challenges.
“First in the history of this country, a government will tell bondholders that it is going to postpone repayment interest and the principal”. – Hon. Richard Acheampong
He strongly condemned the Ministry of Finance and the government for delaying debt payments, emphasizing that such actions have ominous implications for the economy.
MP Questions GH₵ 500m Drought Fund
Furthermore, Hon. Richard Acheampong denounced the Ministry of Finance’s proposal to withdraw GH₵ 500 million from the Contingency Fund to support farmers impacted by the drought, questioning the necessity and efficacy of this measure.
Hon. Acheampong challenged the authenticity of the request, seeking transparency by asking the government to disclose the names of the specific farmers who would supposedly benefit from this initiative.
He claimed that this initiative is a thinly veiled attempt by the NPP government to influence voters and ensure its continued dominance, suggesting that the party is prioritizing its own interests over the needs of the people.
“What the Ministry [of Finance] and the government are doing is they are deferring payment of statutory funds i.e. health insurance, GETFund. Even the Common Fund alone, they [government] owe them close to GH₵ 5 billion. They are not paying those debts so there is room for them to play around to meet the IMF targets”.
“At the local level, officers are there they are not working but every month they draw salaries because there is no resource to work. It’s like everything is just propaganda”.
Hon. Richard Acheampong
He also expressed dismay at the government’s treatment of its contractors, highlighting its consistent failure to settle debts owed to them, which has resulted in significant hardship for these contractors.
Hon. Acheampong implored the government to be candid and reveal the actual financial position of the country, without hiding behind false promises or misleading information.
He further pointed out that even if the GH₵ 500 million requested is approved, the government’s ability to effectively address the challenges faced by drought-affected farmers is hindered by certain limitations and constraints built into the 2024 budget.
He clarified that the Finance Ministry lacks the capability to secure the additional funds needed to execute the initiative, and warned that the GH₵ 500 million if allocated, would likely be diverted for political gain rather than its intended purpose.
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