The Caucus for Democratic Governance, Ghana (CDG—Gh), has described the Nana Addo and Bawumia led government rush to International Monetary Fund (IMF)at the least economic difficulty as a mark of hypocrisy after tagging its predecessor (Mahama led admin) as incompetent for seeking a bailout from the IMF.
According to Caucus is shocked to note that, Ghana’s economy which touted by the self-acclaimed ‘economic messiah’ is showing signs of collapse, after just three weeks of mild stresses and strain , as a result of the novel COVID-19 pandemic.
The CDG—Gh said this in press release issued and signed by its Managing Director, Dr E. K. Hayford and copied to the Todaygh.com.
The release stated that members of CDG—Gh have always suspected that the Ghanaian economy is fragile in spite of polished macroeconomic figures put out by the Finance Minister Each time he reads the budget or goes to Parliament with extra budget request.
It further explained that experts on economy have often criticized the macroeconomic figures because, frequent high cost of food and market prices with constant cedi depreciation do not tally with low inflation figures presented by government. “Deception and tricks might be a weapon, but the exchange rate in times of crises will always expose these tricks” the release added.
“On Friday 1st May 2020, during his May Day address on GBC, the President announced that, Ghana will be running to the World Bank (WB) for assistance despite taken about one billion dollars from the IMF. This is surprising because according to President Akufo Addo, Ghana’s economy is one of the best economies in Africa.
Ghana’s economy is proudly described by members of the New Patriotic Party (NPP) as robust and one of the fastest growing economies in Africa at a growth rate of 6.4%. Some of us are therefore worried at the speed with which our economy has run into crises barely three weeks after COVID-19.
How is Ghana`s early call for a life line from the IMF and the WB possible? Where none of the other countries in Africa are yet to come out with any request? It is likely some may do so, but for the managers of the so called robust and strong economy to run to IMF after three weeks of COVID-19, presupposes serious weaknesses in our economy”. The group noted.
Below is full text of the CDG—Gh press release
PRESS RELEASE 5th May 2020
GHANA CRIES TO IMF FOR HELP AFTER 3 WEEKS OF COVID -19.
The Caucus for Democratic Governance, Ghana (CDG—Gh), is shocked to note that, our economy is showing signs of collapse, after three weeks of stresses and strain , as a result of COVID-19.
We have always suspected that our economy is fragile in spite of polished macroeconomic figures. Each time the Finance Minister reads the budget or comes to Parliament with extra budget request, some of his bloated figures are critically examined by members of Parliament. Indeed experts on economy have often criticized the macroeconomic figures because, frequent high food and market prices with constant cedi depreciation, and do not tally with low inflation figures presented by Government. Deception and tricks might be a weapon, but the exchange rate in times of crises will always expose these tricks.
STRONG AND ROBUST ECONOMY
On Friday 1st May 2020, during his May Day address on GBC, the President announced that, Ghana will be running to World Bank for assistance. This is surprising because according to the President, Ghana has one of the best economies in Africa. The economy is proudly described as robust and one of the fastest growing economy in Africa. Some of us are therefore worried at the speed with which our economy has run into crises. Barely three weeks ago, is that before the COVID-19, it was cleverly described as the best in Africa, with one of the highest growth rate of 6.4%.
How is Ghana`s early call for a life line possible ; when all our neighboring countries in Africa have as yet not come out with any request ? It is likely some may, but for a so called robust and strong Ghana economy to run to IMF after three weeks of COVID-19, presupposes serious weaknesses in our economy. One fact is clear; this Government has borrowed heavily, the highest in the history of Ghana. The result is we have a high national debt. Can that be the reason?
The former President, John Mahama has often cautioned the Finance Minister for engaging in creative accounting, indicating that a number of debts are put under the base line to escape accounting. How on earth will a robust and strong economy collapse after three weeks stress from COVID-19, if this creative accounting is not true? Why do we run so quickly back to IMF after receiving $100 billion grant only last month? Where is the Heritage Fund?
Expects contend that our National reserves must be able to keep us floating for about three months, before any rescue attempt.
CONTROL OF IMF
CDG-Gh observes, with concern, that while the President is on his knees begging for IMF support, the same incorrigible Government is encouraging the EC ( in spite of breaches of social gathering and physical distancing law) to compile a new register, that would cost us about 400 million. Where is the money?
EGO AND PERSONAL INTEREST
Where is the wisdom our fore fathers once used to rule our country? Why are we experiencing abject arrogance, incompetence and autocracy in our governance? Why do we seek to put our ego and personal interest above the national interest? Why do we put our friends and relatives in cardinal positions in the Judiciary to pervert true justice, needed to sustain democracy? It’s time for a change.
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Story: Franklin ASARE-DONKOH
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