IFS has blamed Seth Terkper for causing financial loss of Ghc2.7 billion to the state by his failure to hedge oil prices on the world market.
The Institute of Fiscal Studies (IFS) says the Minister of Finance must be held solely responsible for the 2.7billion cedis loss in forgone oil revenue to Ghana due to the fall in crude price on the international market.
This is after the think tank rejected claims by the Minister of finance Seth Terkper that Ghana was still embarking on a hedging program.
The Government earlier estimated to rake in Ghc4.2 billion from the oil sector this year, but the sharp fall in crude prices means just Ghc1.5 billion would be raised in 2015.
Executive Director of IFS Prof Newman Kusi said this means the “total revenue and grants for the 2015 fiscal year has now been revised to Ghc29.7 billion (equivalent to 22.3 per cent of GDP) instead of Ghc32.4 billion (equivalent to 24.0 per cent of GDP).”
He said, “I don’t think there is any hedging going on, as far I know, I don’t know when that hedging commenced.”
“The question that arises is why couldn’t the country avoid the loss of Ghc2.7 billion? Why did the Government stop using the hedging programme that was successfully implemented between 2010 and 2012 to mitigate the losses?” Prof Kusi asked.
He said: “Ghana’s hedging programme was tremendously successful and, together with other prudent policy measures pursued by the Government, it brought about one of the longest periods of monetary and fiscal stability in the history of the country’s economic management.
“In the first two months of the hedging programme, marginal losses were made, but thereafter the programme recorded significant net surpluses, which rose to US$98.4 million (net of premium ocsts of $63.7 million in August 2011.”