Financial Loss IFS Accuse Seth Terkper For Ghana’s 2.7 Billion Cedis Oil Loss

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.

  • Published:
play Seth Terkper, Finance Minister
24/7 Live - Subscribe to the Pulse Newsletter!

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.”

Recommended Articles

Recommended Videos





Top Articles

1 Zanetor Rawlings' daughter throws him a birthday party [Photos]bullet
2 Crash Vehicle of IGP involved in accidentbullet
3 J.J Rawlings This is the surprise 70th birthday gift of Rawlings...bullet
4 US Embassy Former presidents, Ministers, MPs to queue for visasbullet
5 State Assets Government retrieves over 60 ‘missing’ State...bullet
6 Video Man busted with over 60 'stolen' State cars tells his...bullet
7 Cross Country Nigerian kidnapper has Ghanaian passport and...bullet
8 Bin Atef Ex-Gitmo detainee marries in Ghanabullet
9 NPP Government Ghanaians don’t want Abraham Attah as...bullet
10 Adult Content We will continue showing porn on TV - Ice TVbullet

Top Videos

1 Lynched Soldier Listen to the man who hit Capt. Mahama's head with a blockbullet
2 Prophecy Hundreds will die in floods in 2017 – Prophet revealsbullet
3 Capt. Mahama's Death The account of this 10-year-old will leave you...bullet
4 Nigerians stop deportation of chained compatriot in KLM flightbullet
5 Lynched Soldier Residents of Denkyira-Obuasi mourn Maj. Mahamabullet
6 Meet "The Beast" President Obama's Cadillac that's more tank...bullet
7 Watch Stop taking collection in churches -TB Joshua to Pastorsbullet
8 Vitiligo Enam Honya - is challenging what you think about...bullet
9 In Zimbabwe President Mugabe’s 70 year-old aide marries...bullet
10 Ghana@60 Agya Koo embarrassed Ghana at Independence...bullet

News