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Home Top Story

Protecting Public Purse; A myth or a reality

by Eric Boateng
June 8, 2021
in Top Story
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Caucus for Democratic Governance, Ghana (CDG-GH) has been observing closely one of the many rhetoric promises given by President Akufo Addo since 2016 : that is, “Protecting Public Purse”.

“Fix the Country”
Indeed Ghana is bleeding and struggling for breath. Corruption has become a national disaster of extraordinary dimension, and an epitome of dysfunctional leadership, amid brutal suppression, culture of silence, “clanism” and state capture. The President has to examine himself and his leadership traits, if any. Of late angry youth, out of desperation, are pressing the President to “Fix the Country”.
The economy is sick, struggling for survival at the Intensive Care Unit and the rate at which the public debt is increasing is scary. Our domestic and foreign debt, add up to 320 billion ; 70.2% of our GDP. Nana Addo alone has borrowed 250 billion ghc, within five years, with nothing to show. Every Ghanaian as a result owes more than 10,000 ghc. From Our total revenue and grants which is 56,96 billion ghc, can not even pay for our internal obligations. We have to borrow to pay for debt and interest on debt.

Suffering Masses
25% Ghanaians live below the poverty level. Prices of foodstuff, fuel, water, electricity and transportation have all gone up; making the ordinary Ghanaian nervous. Roads are bad, affecting transportation of foodstuff, cocoa and timber from hinterland. The rivers are highly polluted as a result of galamsey. In spite of all these, taxes are being slapped even on the jobless, who are “making ends meet” along the streets. The unemployed, and 600,000 graduates being chained out of our schools and Universities every year, enter the arena of joblessness and hopelessness not knowing what to do. There is lack of opportunities, and every sector is in a mess. Companies are folding up, releasing their workers on the streets. The Ministry of Finance and the Bank of Ghana, as a result of bad and infantile financial reform, closed down 7 banks ; 23 savings and loans financial institutions and 70 money lending and microfinance companies. The result was loss of about 7,000 jobs and hardship among thousands of family members.

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Affluent trip@4 million
With the above concern in focus, the President flew to France Belgium and South Africa. It is a paradox that the Presidential Jet, bought by former President Kufuor, refurbished and used by late Prof Mills and former President Mahama is for President Akufo Addo not good enough. For his flight, he chartered a luxurious class aircraft offered by Acropolis Aviation; one of most expensive, aircrafts costing 15,000 pounds an hour. The aircraft was used for 23 hours. It thus cost the Ghanaian tax payer a colossal 345,000 pounds, which gives a net cost of 2, 828,432 .00 ghc. The total cost of the trip is 4.0 million ghc. The trip would have cost Ghana less than 15% of 2.8 million ghc (= 420,000 ghc) if he had opted for Ghana`s available presidential jet which is in top condition. It is important to get the President to explain the causal relations between the myth of protecting public purse and the 4.0 million ghc affluent trip to France Belgium and South Africa.

Misuse of Taxpayer`s Money
In 2017, President Akufo Addo chose 124 Ministers. 55 more than former President Mahama and 998 presidential Staffers, 398 more than former President Mahama. A quick look at other countries, show we have the highest number of Ministers. They are as follows :
Ghana, (population 30 million) has 124 Ministers
Nigeria (population 173.6 million) has 36 Ministers
Japan (127.3 million) has 20 Ministers
Britain (64.1million) has 22 Ministers
USA (population 318.9 million) has 23 Ministers.

“Almighty” Ghana has not only 124 Ministers; she has also 998 Presidential staffers, the highest ever. Now the question is : How much does 124 Ministers cost the tax payer in 1 year? Following are the calculations :
Minister`s salary = 15,900 per month
Deputy Minister`s salary = GHc 14,800 per month
50 Min x 15,900 per month x 12months = GHc 9,540,000
74 Dep Min x 14,800 per month x 12months = GHc 13,142 000
Total = GHc 9,540,000 + GHc13,142,000 = GHc 22,682,400
Now their allowances, perks, per diems, fuel allowances, 4-Wheel-Drive, housing allowances , garden boys etc has not been factored into the equations. We have also not factored the cost of the 998 Presidential Staffers into the equation, and yet the calculated amount alone is about 60% of the entire wage bill of all Civil Servants in Ghana.

Corruption
Deceit, lies and fraudulent activities, leading to corruption are many and diverse. 800 million AMERI scandal ; collection of $100,000 “cash for seat”; $20,000 cash before you see the President. The ESSLER scandal, the KELVIN GVG scandal, ; the Digital Addressing System leading to the loss of $2.25million ; The China Times scandal; the army worm advancement chop- chop, leading to loss of millions of tax payers money; the fertilizer scandal; BOST scandal; Ken Bond of $2.25 million ; the 500 missing galamsay tractors and the reckless burning of excavators, all depleting the already struggling economy.

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Presidential Budget
COMPARATIVE FIGURES FOR PRESIDENTIAL BUDGET
2015 (NDC) 326 million GHc
2016 (NDC) 453 million GHc
2017 (NPP) 1.5 billion GHc
2018 (NPP) 1.9 billion GHc
2019 (NPP) 2.4 billion GHc
2020 (NPP) 3.1 billion GHc
The above table shows how extravagant and wasteful President Akufo Addo is. The largest budget allocation of his Government goes to the presidency. The result is that very little is left for important areas such as Health and Education, while luxurious chattered jets consume exorbitant 4.0 million ghc.

Conclusion
The President`s pledge to protect public purse, has now turned into a pledge for reckless dissipation of public purse. His Presidential budget of 3,1 billion, in 2020 leaves woefully inadequate budget allocation for strategic MDA`s development projects. The 88 hospitals promised last year did not see the light of day, and is now one of the many lies and deceit by Nana Addo`s Government. CDG-GH warns, that Ghana cannot continue this way. We do not need Presidents who are more British then Ghanaian with divers connection to International Agencies and Organizations. We need a paradigm shift. We need comitted leaders who come to offer true services and development to Ghana; not those who come on pleasure trips, to plunder, rape and destroy the country. Indeed Ghana is worse off than we were in the 60`s. Ghana is running backwards.

Dr E.K.Hayford
EXECUTIVE DIRECTOR, CDG-GH

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