Former Deputy Minister of Energy John Jinapor has accused the Akufo-Addo-led government of using the COVID-19 pandemic as an excuse to drain the country’s reserves and called on government to prioritise expenditures in order to protect the public purse.
This follows the recent announcement by Finance Minister, Ken Ofori that the Central Bank had decided to grant government a GHS10 billion.
Mr Ofori-Atta on Friday, 29 May 2020 in a statement presented to Parliament confirmed the BoG’s decision to lend GHS10 billion to government with a 2 year moratorium for 10 years.
Governor of the Central Bank had earlier confirmed before the appearance of Mr Ofori-Atta in parliament that the first tranch totalling GHS5.5 billion at the rate of 14.5 percent had been made to government.
However, the former Deputy Minister has decribed the action by the Central bank as “illegal and a clear violation” of the Bank of Ghana (BOG) Act.
In a write up by the former Deputy Minister, Mr Jinapor noted that: “the Akuffo-Addo led Government has certainly run out of ideas and hiding behind the COVID-19 pandemic to deplete our reserves including the Petroleum Funds.”
He further called on Parliament to “ensure that the Executive Arm of Government does not engage in a reckless management of our financials as we approach the 2020 elections.”
According to Mr Jinapor, “Rather than engaging in such wasteful and frivolous expenditures, the Akufo Addo/Bawumia Economic Management Team must prioritise expenditure in order to protect the national purse.
Current statistics reveal the country’s debt as a percentage of GDP is in excess of 60% with the IMF projecting end of year 2020 Debt to GDP at about 67%.