Debt Exchange: Help yourself first by accounting for the debts, then we can also help you – Sophia Akuffo tells govt

The government must, first of all, take steps to show that it is serious in addressing the economic challenges before asking the people to assist, a former Chief Justice of the Republic of Ghana, Sophia Akuffo has said. 

She criticized the government for not being able to account for the borrowings done over the years.

Speaking to journalists after joining a group of pensioners to picket at the Ministry of Finance in Accra on Friday February 10, she said “These are all people who have worked, they have worked very hard, they could have left the country when others were going but they stayed, they worked for the nation.

“We have had our ups and downs. A lot of us were from generations where we were encouraged to save for tomorrow and all that. We have been through times where all your savings become nonsense because of some government policies, then over the years, bit by bit, people have become more confident in the economy and investments.

“Quite a number of people here today, when they retired last two years they have put everything into government bonds, it is a contract and now all of a sudden, you virtually want to force them to agree with you that the repayment of the yield of their investment should be as you dictate it. Why?”

She added “Why are we in the mess? Nobody has fully explained to us, yes we took debt, what was it used for? and where is the accountability? Exactly what was it used for? You are not telling us about how you are going to be able to make things better but just that ‘help me and I help you’, no, you help yourself first, let me see you doing something serious because we have seen these sort of things too many times.

“I am over 70 years now, I am no longer government employed, my mouth has been ungagged and I am talking and I am saying that we have failed and it is important that the elderly should be respected. I find this wicked, I find it disrespectful, I find it unlawful, I find it totally wrong.”

The pensioners have been picketing at the Ministry since Monday, February 6 to be exempted from the Programme.

Deadline for voluntary subscribers to join the Programme is Friday after the Ministry gave another extension from Tuesday, February 7.

Already, government has reached agreements with banks, insurance companies and securities companies to join the Programme, which is meant to be part of the country’s debt restructuring exercise ahead of an extended credit facility from the International Monetary Fund (IMF).

Government had assured all active workers of exempting their pension funds from the Programme but is said to have included pensioners’ funds in its revised memorandum.

Most of the pensioners say the bonds with government is their only source of livelihood, having worked to save those monies.

Government’s seeming nonchalance to their demands forced them to begin an action, which sees them come to the Finance Ministry between 10:00am and 11:00am each day to press them home.

The Finance Minister Ken Ofori-Atta earlier pleaded with the pensioners to accept a 3.5% cut and accept the new terms of 15% coupon rate and 5% maturity.

“We really feel that government has listened, there is humanity to us, we are protecting the destitute, widows and the orphans and the older people who have worked for this nation. We are in a crisis, we cannot put our heads under the sun and pretend that we are not.

“We need to be mindful that we really need to be successful in going to the fund by this March to avoid what we all experienced last year which we all don’t want to experience again,” he said addressing Pensioner bondholders who have resisted their inclusion in a domestic debt exchange programme on Monday, February 6.

In a subsequent statement released on Monday, February 6, Mr Ofori-Atta said that as a government, the singular motivation “for taking this rather difficult road is to restore macro-economic stability, achieve debt sustainability and get the economy fully back on track. We know that these are necessary pre-conditions for creating jobs; safeguarding and enhancing incomes; fostering inclusive growth; and restoring hope to Ghanaians.”

 

Through collective hard work and discipline, coupled with the abiding and abundant grace of the Almighty God,  he said the government has been focused on avoiding a full-blown economic crisis.

“Indeed, the Grace of God assures us that ‘Surely there is a future, and your hope will not be cut off.’ Proverbs 23:18 ESV,

“Our remarkable progress with the on-going International Monetary Fund Programme is a significant boost to our recovery efforts. Continuous progress will steer us further away from the slippery precipice we recently faced. Therefore, the momentum must be sustained,” he said.

Considering the importance of a sustained economic recovery backed by an approved International Monetary Fund (IMF) programme in the first quarter 2023, he said, it is crucial for groups and individuals to consider the merit of the enhanced DDEP, as well as the need for economic stability; and sign up by tomorrow to make it a successful one.

“Let every Ghanaian be encouraged that the DDEP will bring us to a place of stability, economic recovery and transformational growth. We must do this together.

“Government on its part is resolved to continue to undertake all necessary fiscal adjustments that would ensure that our sacrifices will pay-off and the collective good is upheld. Let each and everyone play their part.

“These are difficult times, no doubt, but if we hold on together, we can and we will emerge from this more resilient and more united than before. Then we shall, together, continue rebuilding our economy again; and enable businesses to thrive again; and bring back hope and cheer to our homes again.”

Source: 3news.com|Ghana