Kwahu Online Radio | The pride of Kwahu

Energy expert Kojo Opoku says the blame for the failure of due diligence to be done over the concession agreement between government and Power Distribution Services (PDS) Ghana Limited must be laid at the doorstep of the Minister of Finance and not any other.

He says it took a Qatari company to alert government of the fraudulent documents tendered in by PDS to win the bid.

No due diligence was done, he stressed on 3FM‘s Hot Edition on Wednesday.

Government in a statement on Tuesday suspended the whole agreement after it said further due diligence was conducted.

Fundamental and material breaches were detected with the demand guarantees that enabled PDS to manage the assets of the Electricity Company of Ghana (ECG).

Already, Energy Minister John Peter-Amewu has confirmed the suspension of the official behind the “fraudulent documents”.

Official behind PDS’ ‘fraudulent documents’ suspended – Energy Minister confirms

But speaking on the issue on Hot Edition, Mr Opoku said no official other than the Minister of Finance should lose his or her job.

He argued that what PDS presented were insurance bonds and not payment securities or demand guarantees, as it should be, and this could have been easily detected by an efficient Finance Minister.

“They have to stop this bickering and lies to Ghanaians,” he said about the government’s position on the latest outcome.

“It was a company in Qatar that came to inform Ghana that it was fraud.

“If anybody should lose their job, it should be the Finance Minister.”

Ghana is set to lose $190 million as a result of the latest development.

Government says “full inquiry” has already been launched into the deal to “inform the next course of action”.

Mr Opoku says there should be criminal investigations into the whole deal.

DON’T RUSH TO PRAISE ALL OF AFRICA’S “POPULAR” BUT FISCALLY UNSUSTAINABLE PROGRAMS

Introduction

– Context is 2019 Mid-Year Review and the need to be realistic about the fiscal prospects for the country—based on past views in interviews and articles.

– A general call on those who relate to Africa and its leaders not to ingratiate or praise all “popular policies and initiatives”, even if well-meaning, that eventually lead to waste of fiscal and economic resources—even disaster.

– The call goes for domestic leaders (e.g., chiefs, experts, clergy) and foreigners (e.g., multilateral and bilateral institutions, development partners, CSOs, professionals, etc).

Background

– Even the President now concedes (e.g., Oxford University lectures) that the Free Senior High School (F-SHS) will take a lot of resources, including:

– diversion of petroleum revenues from the path of investment to consumption

– including early hints of the use of “Heritage Fund” for F-SHS;

– accumulation of arrears (e.g., pensions, roads, bailouts cost, etc) at May Day Speech;

– higher levels of borrowing than the government had anticipated; and

– despite three (3) (two (2) additional) oil fields with almost 3 times the output since 2017 and recovery of prices that has tripled revenue from petroleum.

– It will involve serious long-term commitment—merit only in leaving a legacy that future leaders will grapple with for decades.

– Note that the Minister for Finance also highlighted the point but was quickly shouted down by hawks within the Cabinet and the Party.

The “unsustainable promise” of F-SHS and other political promises

F-SHS appeared sustainable because—

Unlike the original promise of a “big bang” during elections (starting with all students), SHS program was “staggered” to start with only Year 1 students:

– Years 2 and 3 students continued to pay fees—while program remained “untargeted”, with even middle-class and affluent parents benefitting;

– additional petroleum (oil and gas) revenues provided initial buffer from 2017—but these one-time inflows are against expanding expenditures (F-SHS and other very expensive electoral promises such as 1D1F);

– averting global and SSA recession and investments in energy sector

Ghana among few SSA states to avoid recession

– reverse rate of accumulation of national debt from positive to negative;

– investing directly and supporting private-sector investments in TEN and Sankofa petroleum fields;

– a substantial part of highly-rated fiscal consolidation came through another “illusion”—budget “offsets” rather than a program of paying down arrears;

– bequeath of buffers—previous administration bequeathed buffers:

a. Sinking Fund: use to pay off outstanding balance of Ghana’s first 2007 Sovereign Bond;

b. Ghana Infrastructure Investment Fund (GIIF): balanced used; VAT flow diverted to consumption; and no further allocations made to Fund;

c. Energy Sector Levy (ESLA): continuous flow of Ghc3 billion annually for clearing arrears directed at providing relief for domestic banks;

GDP “rebasing” provided fiscal room and breadth, through

– room for borrowing through GDP growth and “illusionary” lowering of Debt/GDP ratio that is being trumpeted as an achievement by the government; and

– deferred the impact of increasing costs.

– “capping”—has not provided needed fiscal relief, despite diverting vital resources from vulnerable programs (i.e., education {GETFund} and health {NHIL}; rural development {DACF}; and institutions {IGF}

Fiscal signs not favourable—going into Mid-Year

– one-time cushions—the “bump” in GDP growth from rebasing and additional crude/gas production is “one-time” and will no longer cushion the worsening indicators like debt and budget deficit;

– arrears owed to contractors and suppliers—large amounts owing to these vital economic players in various sectors, including Presidential initiatives, are becoming apparent and are now acknowledged by the Government—

– pensions—concession at May Day celebrations by HE the President;

– contractors and suppliers—concessions by Roads and Finance ministries and “demonstrations” by contractors;

– salaries—civil servants, nurses, and presidential initiative employees;

– banking sector “bail-out” costs—despite unprecedented funds from ESLA;

F-SHS—no comprehensive disclosure yet to Parliament and the nation on true costs and inevitable arrears;

– increasing tax burden—retention of temporary (“nuisance”) taxes & introduction of new tax measures

– retention of temporary (“nuisance”) taxes such as ESLA, special import levy (SIL), national fiscal stabilization levy (NFSL)

– implicit.increase in ESLA levies:  introduced at a period of low crude prices low US$40s pbl so consumers are paying more now at current higher price above US$60pbl;

Implicit ESLA levy: levy should have lasted 3-to-5 years but increased duration of ESLA Bond to 7-to-10 years;

– new tax measures—increase in top rate of personal income tax (PIT); 2.5 percent increase in VAT rate (from 15% to 17.5%); luxury tax (user fee) on vehicles; blocking VAT input tax credit (ITC);

– discretionary change in basis (valuation and classification) for calculating import duties, VAT, fees/charges; etc;

– fiscal expansion—the worsening fiscal gap may not taper or abate due to

– subtle, not bold, new tax measures (e.g., luxury tax etc.)

– continuing with expenditure programs (likely borrowing, not reallocation to support the pace of president’s electoral promises;

– fiscal deficit and borrowing—these indicators are deteriorating fast and corrections for offsets in, and lowering of estimates, will make these indicators worse;borrowing to support the increasing fiscal deficit;

– borrowing to finance belated infrastructure;

– pledge of resources (e.g., royalties from minerals, bauxite deposits, etc.) to support the budget;

– Sinking Fund—despite three (3) oil fields, not using the SF to reduce debt (as was done from one (1) oil field for the NPPs first 2007 Sovereign Bond;

– Ghana Infrastructure Investment Fund (GIIF)—diverting funds (i.e., VAT and ABFA) for investment in infrastructure to consumption.

Wanted now—cautious voices

“Measured” approach is fiscally prudent—being “measured” with

– F-SHS [e.g., alternative “progressive” approach] and other programs is consistent with fiscal prudence, as elicited in Public Financial Management Act [PFMA] and Budget Responsibility Act [BRA];

– Benefits of being “realistic”—refreshing to hear the voices of caution emerging

– Domestic experts—professors, experts, think tanks, and chairperson of vital constitutional commission have sounded note of caution;

– Opinion leaders—it is important for other domestic opinion leaders to follow a realistic lead (e.g., clergy and chiefs must reflect condition in religious and community schools);

– IMF/WB MD—sounded note of caution, not ringing endorsement, on government expenditure and debt programs; nonetheless

– roll-back of tax measures (e.g., VAT on non-core financial sector and commercial real estate) in Program;

– failing to acknowledge Ghana’s avoidance of recession; permitting fiscal expansion; and not being critical of “offsets” that underestimated arrears and gave impression of accelerated fiscal expansion;

– Development Partners (DPs)—countries that may be capable of free (education) social programs choose to make them “targeted” (i.e., tuition-free programs, as Ghana had) and adopting alternative options (e.g., concessional student loans);

 – Preference for using fiscal support for investments, not consumption, is global

– in advanced countries (e.g., quantitative easing): invest in infrastructure to support private sector and rural/urban development, not place scarce fiscal resources in consumption;

– MIC states—approach adopted by middle-income countries (MICs) such as Emirates and Asian economies;

– Developing countries—Angola and South Africa now showing a preference for infrastructure development through Sovereign Wealth Funds (SWFs) as in Ghana’s PRMA.

Conclusion

– Current fiscal environment is different from late 2014-16 when many SSA countries were headed into recession, due to global financial crisis, fall in crude oil and other commodity prices, and domestic pressures such as non-supply of gas from Nigeria

– Now, three (1) oilfields, not one (1); rebound in commodity prices, and, therefore, enhanced budget buffers.

– Problem is unbridled expenditure due to electoral promises; non-conventional approach to managing arrears; and borrowing

– Time for realistic review and appraisal as well as domestic and international experts toning down their praise or holding back their reservations on Africa’s politically-motivated “popular” but unsustainable electoral and fiscal promises.Source: Ghana|Seth E. Terkper

The New Patriotic Party (NPP) China branch to hold their annual conference under the Chairmanship of Mr. Owusu Achiaw (China Chairman. other dignitaries include national branch Chairman Mr Freddy Blay, National Organizer Sammy Awuku, Mr John Boadu (General secretary ) and many others. the event will take place at grand skylight hotel Boaen Shenzhen from 26th to 28th july 2019 8:00am to 5:00pm each day.

According to the communication affair for N.P.P china branch Mr Mark Amponsah wishes to invite all N.P.P members around China to come and support them for successful conference.

It is extremely interesting to hear the former president and the 2020 flagbearer of NDC, Mr John Dramani Mahama, evocatively implying that Ghanaians are not happy with Akufo-Addo’s leadership style, which has allegedly led to high socio-economic standards of living.

If we draw an adverse inference on the Mahama’s seemingly isolated assertion, we can then conclude that the 56% of electorates were not happy with former President Mahama, and hence showing him the exit in the 2016 general elections.

Dearest reader, if you would recall, prior to the 2008 and 2012 general elections, Ex-President Mahama and NDC gave a slew of Manifesto promises to Ghanaians. But as to whether they honoured those promises, is a million dollar question.

During the 2008 and 2012 electioneering campaigns, Mahama and NDC gave a cornucopia of Manifesto promises, inter alia, one-time NHIS premium, free SHS, ‘making dumsor a thing of the past, putting money in Ghanaians pocket, creating more jobs for the jobless, stabilising the economy, protecting Ghanaians from the menaces of galamsey and Fulani herdsmen, bringing an end to dubious judgement debt payments, fighting the rampant bribery and corruption, amongst others.

Regrettably, after giving all those richly interesting, albeit unrealistic promises with a view to deceiving Ghanaians for their mandate, the NDC government, led by former President Mahama, as expected, wilfully failed to honour the promises, and, consequently, a total of 55.6% (44.4% for Mahama) of the electorates rightly voted them out of power in 2016.

Mind you, there have been numerous NDC’s broken Manifesto promises, but the one that has ineffaceably stencilled on discerning Ghanaians mental sheets, is the one-time NHIS premium.

The NDC’s Manifesto promise of one-time NHIS premium, so to speak, was destitute of honesty and integrity.

The overarching question then is: what will make the unhappy 56% of electorates change their mind and repose their absolute trusts in Mahama in 2020, given the encouraging signs of auspicious economic growth under the Akufo-Addo’s leadership?

Gone are the days when society anecdotally attributed leadership to a trait from birth. And more so leadership was only ascribed to tall, handsome and well-connected individuals.

Obviously, it was wholly illogical. The fact of the matter is that leadership skills can be acquired through remedial tutorials or routine training.

What is the difference between a leader and leadership?

In theory, a leader is a person who is appointed, elected or informally chosen to direct and co-ordinate the work of others in a group (Fiedler, 1995).

The preceding extant definition underscores the fact that the formally appointed leader cannot always be a real leader, but it also confines the notion of leader to a group context.

If we take the word “group” literally, this definition precludes leaders of nations, large corporations and so on, except in so far as they lead a small group of senior colleagues.

On the other hand, leadership can be considered to be the personal qualities, behaviours, styles and decisions adopted by the leader. In other words, it concerns how the leader carries out his/her role. Hence while the role of leader can be described in a job description, leadership is not so easily pinned down.

The crucial question then is: with so many people purporting to be leaders these days, how do we distinguish between a true leader and a demagogue?

To be able to do justice to the preceding question, we must pause, reflect summarily and ask: what is it that a leader is trying to achieve?

In fact, a true leader wants nothing more than to make people independent, as leaders in their own rights. Instead of trying to deceive us with his or her superlative oratory, a true leader reflects our own light back to us.

A true leadership, in practice, must give people a long-term vision that absorbs their lives with meaning; it must point them in a new direction and show how their every action is an indispensable part of a positive change.

More importantly, a true leader always comes up with pragmatic ideas with the view to transforming the lives of his/her subordinates.

We tend to believe that a leader is a person who is well-connected, who is powerful or charismatic or wealthy. We normally judge our leaders by what they have. But a true leader should be judged by his/her extraordinary qualities, not — ego, impertinent boldness, and self-interest.

A true leader, in theory, sees his/her work as altruistic service toward accomplishing a goal. That is by putting the acquired skills, experience, knowledge and empathetic qualities at the disposal of the needs of his/her subordinates. As the sages say, “Leadership is not just power and dominance; it is service to mankind.”

Candidly, after observing Nana Akufo-Addo over a long period of time, I do not need the likes of Ex-President Mahama to tell yours truly that Akufo-Addo has the attributes of a visionary leader.

Visionary leaders are noted for their positivism, idealized influence, inspirational motivation, intellectual stimulation and individual consideration (Nemanich and Keller, 2007).

Some experts, however, explain that idealised influence depicts visionary leaders as most respectful, reliable and meritorious. And more so idealised influence explains leaders unparalleled ability in setting vision and implementing it to impact on their subordinates (Bass et al., 2003).

On the other hand, inspirational motivation explains how visionary leaders consistently raise team spirit and encourage their subordinates to be creative (Bass et al., 2003).

If you may recall, during the 2016 electioneering campaign, the then-presidential candidate of NPP, Nana Akufo-Addo, insisted passionately: “I am promising you that within 18 months of a new government of the NPP, under my leadership, the face of our country, Ghana, is going to change”.

As a matter of fact, the preceding statement underscores Nana Addo’s positivism, commitment and enthusiasm.

If you would recollect, prior to the 2008, 2012 and 2016 general elections, the then presidential candidate, Nana Akufo-Addo, made the Free ‘SHS’ his principal campaign message. As it was expected, the opposition NDC communicators scoffed and labelled him an inveterate liar.

Astonishingly, however, some unsuspecting Ghanaians, including my maternal uncle, Oliver bought into the NDC’s manipulating gimmicks and rejected the handsome offer of the Free SHS on two previous elections (2008 and 2012 respectively).

But lo and behold, discerning Ghanaians saw the light and gave the Free SHS provider, Akufo-Addo the mandate on 7th December 2016.

And, true to his word, President Akufo-Addo has honoured his promise of the free SHS to the delight of the vast majority of Ghanaians. Apparently, it commenced in2017/2018 academic year.

It is, however, worth stressing that the implementation of the Free SHS is the judicious way of distributing the national resources. It really epitomises a true leadership.

Leadership and management scholars observe that visionary leaders act as role models, motivate, provide meaning, optimism, enthusiasm, strategic thinking and stimulate the intelligence of their subordinates(Bass, 1985).

Interestingly, Akufo-Addo insisted during the 2016 electioneering campaign: “We are going to get out of stagnation and backwardness, and move our country onto the path of progress and prosperity. We can do it. We, the Ghanaian people, have the capacity to change the circumstances of our lives”.

The preceding statement really emphasises Nana Addo’s intellectual stimulation and positivism. Apparently, intellectual stimulation explains how true leaders promote their subordinates innovative and creative skills by encouraging them to solve problems entirely in new ways (Bass et al., 2003).

More importantly, the Akuffo-Addo’s government is tackling the erstwhile Mahama’s government economic mess head-on.

Ghana’s economic growth, which had slowed from 4.0% in 2014 to 3.7% in 2015, was predicted to recover to 8.7% in 2017, following consolidation of macroeconomic stability and implementation of measures to resolve the crippling power crisis (ADB).

Despite the extent of the economic mess left by the Mahama’s government, the Akufo-Addo’s government is prudently taking steps to stabilising the economy.

Take, for example, during the presentation of the NPP government’s first mid-year budget review at the end of July2017, the Finance Minister, Ofori-Atta, forecasted favourable economic outlook against the backdrop of an improving macroeconomic performance and falling inflation.

“There were some positive takeaways; the government comfortably met the H1 budget deficit target of 3.5%, and now expects the budget shortfall to be smaller than expected for 2017 as a whole.”

It is also worth emphasising that agricultural growth was around 7.4 per cent in 2012, but the erstwhile NDC government nauseatingly reversed it to around 2.5 per cent as of October 2016 (GSS).

But as I write, the Ministry of Agriculture, under the able leadership of Mr Akoto-Owusu, has rolled out flagship programmes such as planting for food and jobs’, Planting for Export and Rural Development, Rearing for Food and Jobs, which are expected to boosts the agricultural growth.

It is also worthy of mention that the Mahama’s government could not hold on to the late mills “unprecedented” single digit inflation, as he somehow managed to move the inflation to double digits (15.8% as of October 2016).

However, as I write, the Akuffo-Addo’s government has dramatically reversed the inflation rate to a single digit (GSS).

More importantly, the Akufo-Addo’s government has efficiently raised the economic growth within a short space of time. Ghana’s economy grew provisionally by 8.5 percent in 2017 compared to 3.7 percent in 2016 (Ghana Statistical Service, 2018).

Currently, Ghana’s economic growth stands at around 8.6% from 3.4% in December 2016.

Interestingly, in the first two years of the Akufo-Addo’s administration, the Industry sector recorded the highest growth rate of 16.7 percent, followed by Agriculture 8.4 percent and the Services 4.3 percent.

Services share of GDP decreased from 56.8 percent in 2016 to 56.2 percent in 2017. The sector’s growth rate also decreased from 5.7 percent in 2016 to 4.3 percent in 2017.

However, two of the subsectors in the services sector recorded double-digit growth rates, including Information and Communication 13.2 percent and Health and Social Work 14.4 percent.

The Industry sector, the highest growing sector with a GDP share of 25.5 percent, had its growth rate increasing from -0.5 percent in 2016 to 16.7 percent in 2017.

The Mining and Quarrying subsector recorded the highest growth of 46.7 percent in 2017.

The Agriculture sector expanded from a growth rate of 3.0 percent in 2016 to 8.4 percent in 2017. Its share of GDP, however, declined from 18.7 percent in 2016 to 18.3 percent in 2017. Crops remain the largest activity with a share of 14.2 percent of GDP.

The Non-Oil annual GDP growth rate decreased from 5.0 percent in 2016 to 4.9 percent in 2017. The 2017 Non-oil GDP for industry recorded a growth rate of 0.4 percent, compared with 4.9 percent in 2016. Growth in the fourth quarter of 2017 reached 8.1 percent compared to 9.7 percent in the third quarter (GNA, 2018).

If you may remember, during the 2016 electioneering campaign, Nana Akufo-Addo asserted: “This ‘new Ghana will be a Ghana with opportunities for all, and where everybody is taken care off. We will have a society that is caring and compassionate and expresses solidarity. Nobody is going to be left behind. We are all going to march together, hands linked together, to that great future that beckons us, here in Ghana.”

In fact, back then, I had no qualms about Nana Akufo-Addo’s claim of bringing everyone on board to build the nation.

To his credit though, Nana Akufo-Addo brought all the people who contested him in the NPP’s flagbearership race together. Yes, he resolved all pre-election issues and worked collaboratively towards the 2016 election victory.

And, following his election victory, President Akufo-Addo graciously assembled a working team consisting of people from all walks of life, including a 2016 presidential candidate from an opposition party.

This is indeed a leadership by example. In fact, Nana Akufo-Addo is ‘the Moses’ of our time.

Biblically, Moses was a visionary leader. We read in Exodus that he was a shepherd – he had a modest, humble and patient upbringing. Moses employed his humility, patience and tolerance when he had the opportunity to speak to God. He kept watching as thousands of sheep grazed the fields. Moses noticed that one sheep was missing and went off to look for it, finding it at a distance apart.

When the sheep had finished drinking, Moses lifted it onto his shoulders and carried it back to the flock. When Jehovah God saw this, he became aware that Moses was a man of reason, empathy and selfless devotion, a man truly worthy to lead His people; a man who would put his empathetic qualities at the disposal of the needs of his subordinates. After all, no one was keeping an eye on Moses; Moses could easily have thought to himself, “why be concerned with one sheep when there are thousands”?

Fellow Ghanaians, I think it is about time we distinguished between a demagogue and a true leader. In this way, we would avert the apocalypse of our dear nation sinking deeper and deeper into the mire.

But the crucial question is: how do we stop backing the ‘semi-circle’ of economic managers?

To be quite honest, some of us, as a matter of principle, could not end our fury in condemnation when former President Mahama bizarrely doled out large portions of our scarce resources to inveterate apologists like the founder of Ghana Freedom Party (GFP), Madam Akua Donkor, who in all honesty, contributed nothing meaningful towards Ghana’s wellbeing.

Let us also remind ourselves that, but for Akuffo-Addo’s timely intervention, Mahama would have given away not less than 58% of Ghana’s Bauxite to his sibling, Ibrahim Mahama, just about a week before exiting power.

Ghana, to be quite honest, does not need a Father Christmas who would carelessly give away our hard earned resources to apologists. But Ghana rather needs a serious, a committed and a forward-thinking leader who can utilise our scarce resources judiciously to the benefit of all Ghanaians.

A judicious distribution of national resources is the implementation of poverty alleviation policies such as the Free SHS.

And, considering the enormous benefits therein education, it is, indeed, prudent and somewhat forward-thinking for any serious and committed leader to seek to bridge the ever widening social inequalities gap through rational distribution of national resources in the form of free SHS and other social interventions.

To me, I’ll always choose a forward-thinking leader over a reckless Father Christmas who cannot take good care of our scarce resources.

Yes, we, (Ghanaians), took the right decision on 7th December 2016 by electing ‘the Moses’ of our time (Akufo-Addo) to rescue us from the economic bondage of the ‘Pharaoh’ of our time (Mahama).

At 38, TV presenter and entrepreneur, Deloris Frimpong-Manso, popularly known as Delay, isn’t doing badly for herself at all. Her Delay Show is in its 11th year and her products Delay Mackerel, Delay Tomato Paste and Delay Sardine are doing very well on the market.

However, it seems for many people, her success will be incomplete if she does not get married and she has to constantly deal with her fans asking when she is getting married.

In person and on social media, people keep telling her to get married but when Showbiz caught up with her at the Alisa Hotel last Thursday, Delay said she did not know when she would get married. “I’m a spontaneous, free-spirited person. I take my life as it comes, so I don’t put myself in that box saying I am getting married tomorrow,” was her answer.

The Delay Show is undoubtedly one of the most watched TV shows in the country and has stirred controversy while also giving the public more insight into their personalities’ lives. So how has she managed to sustain her show for a good 11 years?

“It’s the passion and the love I have for it. It’s not like a job for me. I just love it, that is why even when I am sick, I still have the urge to shoot. I used to have a passion for radio and I have transferred it to TV,” she said.

Over the years, Delay has interviewed everyone who matters in the entertainment industry as well as those from other sectors such as religion and sports.

She told Showbiz her most difficult interview was with footballer, John Paintsil. “He gave me yes and no answers throughout. He was so guarded it wasn’t funny. It was a very difficult one for me,” she said.

For the show to survive this long, there must be something Delay is doing right or is it her guests? “It’s a two-way street. The celebrities contribute and I contribute and that is what has kept the show going,” she stated.

Delay said although the celebrities also contributed to the success of the show, she brought an X-factor to it. “There are lots of musicians in Ghana but Daddy Lumba has stood the test of time and remained relevant all these years.”

Asked why she puts out a lot of information about her guests but everything about her is shrouded in secrecy, this is what Delay said, “I am not a guest on the show. I am just a host.”

So what next after the Delay Show? “I have shot another series, the Delay Show is the tree and the others are branches. I am watering the tree and all others come later,” she said.

Delay had some advice for young people.“Nobody gives you power, power to succeed in life or business. You have to take it yourself.

“We should not let our roots, colour, looks, background or gender restrict us. We can be anything we want to be in life and I am a living proof of that.”