Former President John Dramani Mahama said that when the government decided to borrow $30.5 billion over six years, President Nana Addo Dankwa Akufo-Addo’s cabinet, which also included Vice President Mahamudud Bawumia, did not know what to do. He also stated that he was unable to show any results.
He said government officials, including Dr Bawumia, cannot escape responsibility for economic challenges.
“You know the situation this economy is in, and now all the people who contributed to the mess are trying to run away as if they were not part of it. They are starting to say that they are not listening to what they are saying.
“All of them, Jack Toronto and his brothers, are all ‘inside’ part of the mess we’re going through. No one can escape responsibility because they were all sitting in the cabinet together.” . Whenever we seek to borrow from the Eurobond market, we have approved it in cabinet,” the NDC standard bearer said at a town hall meeting in Tamale on Thursday, February 8.
He added: “You can’t come here today and tell us you weren’t in because you borrowed $30.5 billion over six years and did nothing. When we realize… They are all part of the mess and Ghanaians are going to pack up and send them away as compensation for the hardships they have imposed on us, the debts they have swallowed us up. I miss learning the lessons.The NDC will come back winning this election.We have the talent to restore this country’s economy and finances to health.
Although he did not mention Dr Bawumia by name, his comments came at a time when the head of the Economic Management Team (EMT) said EMTs do not have decision-making authority.
Dr Bawumia said they were only advising the cabinet. As head of the paramedics, he was responsible for the economic challenges facing Ghana.
However, Dr Bawumia, the flag bearer of the New Patriotic Party (NPP), speaking at the Accra University of Professional Studies (UPSA) on Wednesday, February 7, said: -Cabinet Committee Although we do not have decision-making authority, we are very proud of the quality advice we have provided to Kynet over the years. As Vice President, I was asked by the President to help solve the problems that are holding back the economy. My approach was to support the formalization of the economy through digitalisation, as outlined in the 2016 manifesto. ”
Dr Mahamudu Bawumia further said that the accusations that the Bank of Ghana (BoG) received for supporting the government during the economic crisis were unnecessary.
He said the central bank was fully responsible in prioritizing the interests of Ghanaians by deciding to support the government in dealing with the crisis.
It will be recalled that the minority in Parliament strongly criticized the Bank of Ghana, saying it was not fit for purpose.
They lamented the inability of central banks to conduct monetary policy without printing money.
In its recent audit report, the Bank of Ghana disclosed that the following records were found: GH¢60 billion The company suffered losses from the debt restructuring campaign.
Mr Isaac Adongo, a senior member of the Finance Committee, said: “All the funds in our banks that were forced into savings with the Bank of Ghana (which we call the Prudential Reserve) have gone to waste.
“All the money they borrowed from abroad in foreign currency to support the cedi is gone and in fact, even if you remove the government debt of GH¢48 billion they incurred, the bank still owes Ghana GH¢22 billion. There is a ¢ hole. What this means is that the Bank of Japan is not fit for purpose because it has no money and cannot conduct monetary policy without printing money.”
However, Bawumia said in his speech that “the Bank of Ghana provided the government with the necessary funds at a critical moment. What the central bank has done is very responsible in putting the interests of the people first.” “It was,” he said.
Dr. Bawumia further said that one cannot ignore the fact that the outbreak of the coronavirus pandemic and the Russo-Ukrainian war had a devastating impact on the global economy, including Ghana.
He recalled that despite the challenges inherited from the Mahama administration, the Akufo-Addo government had succeeded in stabilizing the economy with all economic indicators pointing in the right direction.
However, he said the pandemic and war had a negative impact on these indicators.
“Despite the difficulties we have inherited, we have had to carry on…among other things, we have had to carry on, fixing the financial crisis, fixing the National Health Insurance, eliminating arrears and making education free and accessible. We had to make it easier.”
“From 2017 to 2019, indicators such as economic growth, industrial growth, fiscal deficits and exchange rates were all moving in the right direction.
“In 2020 and 2022, we experienced several challenges caused by the pandemic that brought the world to a standstill,” he said in a speech at the Accra University of Professional Studies (UPSA) on Wednesday, February 7. Stated.