The Vice President, Dr Mahamudu Bawumia has noted that Ghana has been hit by a quadruple whammy in the last few years resulting in the country’s quest to seek support from the International Monetary Fund (IMF).
Dr Bawumia said the country will not be going to the IMF for support had it not been for the fiscal impact of this quadruple whammy.
He indicated that the energy sector excess capacity payments, the banking sector clean-up, COVID-19 and the Russia-Ukraine war are events that have pushed the country to seek the support of the Bretton Woods institution.
Speaking at the Accra Business School on Thursday (July 14), under the theme: ‘The Role of Information Technology Education in the Government’s Digitalisation Agenda’ Dr Bawumia said, the excess capacity payments of GHC 17 billion relate to a legacy of take or pay contracts that saddled the country’s economy with annual excess capacity charges of close to US$1 billion.
Reacting to the Vice President’s reasons for Ghana’s return to the IMF, Economist, Dominic Anarigide explained that the former President, John Dramani Mahama should not be blamed for the government’s decision to return to the IMF. He spoke on A1 Radio’s Day Break Upper East Show.
“On the contrary to pray officials and party communicators, he [the Vice President] admitted that the problem can not be exclusively external. There are some domestic aspects of it just like some of us have been saying all along. What he did was to shift that external blame to someone else but not him and the government. That is where I disagree totally with him.”
“He [the Vice President] went on to offer some solutions to the problem. My question is that, you have been in government for six years, what prevents you from implementing those solutions [to the problems] that have landed us where we are. After six years in government, why do you still find it convenient and fair to blame the one you took over from especially when you have touted your good economic credentials while in opposition.”
“The things he said were not different. If you follow the lectures he held while in opposition and juxtapose them to what he said, it was the same,” he said.
That being said, Mr. Anarigide commended the VEEP for admitting that some of the problems were internal. He also commented on the Vice President’s attitude while delivering the lecture saying that the VEEP’s posture is an admittance of the tough times the country faces.
Source: A1radioonline.com|101.1MHz|Mark Kwasi Ahumah Smith|Ghana