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Ghana's Economy Gov’t is broke; unable to meet statutory obligations - MP alleges

Dr. Mark Assibey-Yeboah, Minority ranking member on the Finance Committee of parliament has said government is struggling to release money to the District Assemblies Common Fund (DACF) Secretariat to be disbursed to the various Metropolitan, Municipal and District Assemblies (MMDAs) because it is "broke."

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Seth Terkper

(File Photo)

Dr. Mark Assibey-Yeboah, New Patriotic Party Member of Parliament for New Juaben South, has revealed that government is unable to meet its financial obligations because it is broke.

He said government is struggling to release money to the District Assemblies Common Fund (DACF) Secretariat to be disbursed to the various Metropolitan, Municipal and District Assemblies (MMDAs).

Assibey-Yeboah explained that cheques presented to DACF for payment of their services were "bounced"  because government has not released money to DACF.

“I know for a fact that the Common Fund Secretariat has issued cheques to pay some of its suppliers and these cheques have bounced. As of yesterday and today, people have sent common fund cheques to the banks which have bounced because government gas not credited the accounts of the common fund secretariat,” he said on Accra based Citi FM Thursday.

“It is broke because if you are not broke why are you not able to pay your debts?” he asked rhetorically.  

Assibey-Yeboah said government could have been excused for nonfulfillment of its financial obligations if the year had just began, arguing that it's been six months already, a period he believes government would have raked in enough revenues from taxes, oil and gold.

“If this occurred in the beginning of the year, it will be understandable but it’s almost July, so technically government has raked in tax revenues and revenues from oil and cocoa, as well as all the major sources of government revenues have been trickling in but we are not seeing government making the necessary payment.”

Assibey-Yeaboah added that financial obligations to statutory bodies like the Electoral Commission, Volta River Authority and the National Commission for Civic Education as well as CHRAJ and the National Health Insurance Scheme has not been met.

He also warned that due to government’s indebtedness to some power producers in the country, the country will most likely face some challenges in the power sector.

TICO independent Power Producer (IPP) got a loan from the International Finance Corporation and it’s supposed to be making regular payments of the loan. Yesterday TICO defaulted and they are arguing that they defaulted because VRA owes them and VRA is also saying government owes them so if we don’t take care of the dumsor will be back again,” he said.

Assibey-Yeboah said a “chunk” of what government is raking in as revenue is going into “interest payment.”

In addition, he said salaries are also “consuming” the rest of government revenue.

“A chunk of what they are getting is going into interest payments of loans accessed by government," he said.

He continued: “We are talking about GHC11 billion going into interest payments, wages and salaries are also consuming the rest. They have not been able raise enough funds from the local bond market so government is really hot… so I can say without a shred of doubt that the government is indeed broke.”

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