The ruling National Democratic Congress (NDC) is oiling its propaganda machinery to ‘douse’ the flame ignited by the New Patriotic Party (NPP) vice presidential candidate, Dr. Mahamudu Bawumia, last Thursday at a public lecture on the economy where he shredded the government into pieces in respect of the economy.
The distinguished economist and former Deputy Governor of the Bank of Ghana, delivering a lecture titled, “The State of the Ghanaian Economy – A Foundation of Concrete or Straw,” rubbished the NDC’s economic performance saying the ruling party was rather taking Ghana backwards with its policies, citing declining growth rate from 14 percent inherited by President John Mahama to the current 3.9 percent.
NDC Dazed
Apparently dazed by Dr. Bawumia’s revelations, the NDC, led by the former propaganda secretary, Fifi Fiavi Kwetey, (who is the current Minister of Transport), said he was leading a team of NDC propagandists to ‘correct’ the ‘untruths’ being ‘peddled’ by Dr. Bawumia in their “Setting the Records Straight” encounter. The NDC programme was expected to take place tomorrow at the party’s headquarters, but Fifi Kwetey announced last night that it had been postponed because of other engagements.
“Enough of the untruths being peddled; we are going to set the records straight from next week,” he posted onFacebook last Friday.
He said, “You may already be aware that every election year, The NDC Forum for Setting the Records Straight organises a number of press conferences to address pertinent issues ahead of the general election and this year will be no different. On the 14th of September, 2016, the first in the series of the press conferences will be held at the NDC headquarters in Accra.”
According to Fifi Kwetey, the forum would be attended by Elvis Afriyie Ankrah, the scandal-prone former Sports Minister who supervised Ghana’s worse FIFA World Cup participation in Brazil in 2012 amid serious corruption claims against him, but shielded by the president; Samuel Okudzeto-Ablakwa, a deputy Minister of Education; Emmanuel Armah Kofi Buah, Minister of Energy and Petroleum; Casiel Ato Forson, a deputy Minister of Finance; Felix Kwakye Ofosu, a deputy Minister of Communications; Kojo Twum-Boafo of the Free Zones Board as well as Sam George Nettey of the presidency.
“I know majority of you can’t wait for the NDC’s “Setting The Records Straight” press conference slated for this Wednesday.
“But we have had to postpone it to a later date because the President, John Dramani Mahama is unveiling highlights of the party’s Manifesto tomorrow evening,” Mr Kwetey stated.
Falsehood
Fifi Kwetey is noted for peddling falsehood against his political opponents and the possibility of misleading Ghanaians at the so-called forum once again will not be ruled out.
In the heat of the 2008 general election, he published that then President John Agyekum Kufuor had stolen all Ghana’s gold reserves at the Bank of Ghana, but when pushed at the vetting committee to provide evidence, he admitted he lied.
He may be on another journey to spew out falsehood for political expediency in support of his paymasters.
Veep’s Challenge
Since Dr Bawumia’s public lecture, anxious Ghanaians have thrown the gauntlet to Vice President Kwesi Bekoe Amissah-Arthur, who is an economist and head of the Economic Management Team of the government – which had succeeded in throwing the economy into disarray. He is to counter the NPP vice presidential candidate’s claims, especially since he (Amissah-Arthur) had earlier warned that he was ready to match the NPP boot for boot.
He announced at an NDC rally at Ashaiman that he was getting ready to disprove Dr. Bawumia’s claims, particularly on interest payments on loans, which the erudite NPP stalwart said were exceeding capital expenditure owing to unbridled borrowing.
He said that Dr. Bawumia misled the public on the interest payments issue and justified the high interests being paid by the country to lenders.
Mr Amissah-Arthur, former Governor of the Bank of Ghana, said that the money borrowed was purposely for projects so there was nothing wrong with payments of interests at whatever rate.
“So whenever you take money and pay interest or repay the amount you have collected, it is for the road that you have borrowed the money for so that is the one that you are paying, so there is no way you are paying interest for nothing at all; you are paying interest for projects that you have borrowed money for.”
“So how can you say that you pay interest more than capital expenditure? It is that capital expenditure money that you are paying as interest. This one is a simple thing in primary school; you learn it. I don’t know how people with higher qualifications cannot understand this simple context,” he charged.
Classification
The vice president explained, “In economics we call it classification. You have to classify that interest payment for the thing you use that money for. You do not pay money for nothing but you pay interest if you have not borrowed money. When you have borrowed money you are paying interest for that by saying this one for this road, for that hospital, this one for the project you have borrowed money for.”
“You cannot come and say that interest payment has exceeded capital expenditure so we have made a mistake.”
Dr. Bawumia has continuously insisted that the Mahama-led government had over-borrowed and that is why the government is paying so much to service the interests amounting to GH¢10.5 billion for this year alone – more than the GH¢9.5 billion inherited by the NDC administration from the NPP in 2009.
Model
Finance Minister Seth Terkper has remained largely unwavering in responding to issues about the economy.
Last Friday, Mr. Terkper said Dr Bawumia ‘masked’ the true state of the Ghanaian economy by being selective in his use of data and said that he (Dr. Bawumia) was using different models in his analysis of Ghana’s debt to suit a political objective of making the government unpopular.
“If we are going to use Dr Bawumia’s model, let us use it comprehensively because he cannot use other data when it suits his criticism and reverts to his model when it does not suit him,” he said, adding that the economist’s assertions that government’s debt management policy is not rational needed to be refuted.
“We have a debt management policy that has many objectives. We do not have only one objective. Given that the Ghanaian economy has begun to pick up, it will not make sense to keep a one billion Eurobond debt for ten or fifteen years,” Terkper said.
Running For Cover
Interestingly, when Mr. Terpker was asked to provide figures to contradict Dr. Bawumia’s debt to GDP ratio claims, he said he was travelling and would provide it on his return.
Casiel Ato Forson, who also tried to pour cold water on Dr. Bawumia’s revelations when given the chance to provide figures to contradict his (Dr. Bawumia’s) figures, said he was yet to leave his house for the office.
Public Debt
Dr Bawumia warned that government’s continuous borrowing would push the national debt to $42 billion in December.
He accused the government of failing to put to good use the huge loans it had contracted.
“In fact, 66 per cent of Ghana’s debt from independence has been accumulated under the presidency of John Mahama in just the last three-and-a-half years.
“By the end of 2008 following the adoption and implementation of the HIPC initiative, the government’s policy framework of fiscal discipline, the country’s debt to GDP ratio, had declined from 189 per cent in 2000, to 32 per cent of GDP by 2008,’ he disclosed.
He added, “In terms of the dollar equivalent of the borrowed amount, this government has borrowed some 39 billion dollars in eight years.”
“When I mention this, they either get confused or pretend to get confused; so for the sake of clarity, I have put in this document” (referring to the paper he was delivering) “a table that shows them clearly the dollar equivalence of all the amounts borrowed from 2009 to 2016, in fact by December 2016, the government would have borrowed $42 billion dollars.”
“The government would claim no doubt, that the book value of the debt is $26 billion dollars; but quite frankly, that is a weak argument.”
“The only reason why the book value of the debt is $26 billion is because we are applying today’s exchange rate which the same government succeed in collapsing to the value of the debt; and not the exchange rate at the time the money was borrowed. With this major increase in the debt, Ghana’s debt to GDP ratio has increased from 32 percent in 2008, to 72 percent at the end of 2015,” Dr Bawumia explained.
Source: Daily Guide
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The more Nana Addo and his part uses Bawumia in their desperation the it exposes the Nana Addo ability to think without Bawumia who on other hand is gradually eroding his credibility and the so called reputation. Bawumia used cooked figure to deceived Ghanaian claiming there are 76000 thousand voters on the Register Voter which he could not proof up till today. People of Volta Region are patiently waiting for him to come and campaign in Volta Region. Since he claimed they are Togolees I think there is no need for him to come down.
I wonder why Dr. Bawumia is disgracing himself and there no man in the party to help him speak the truth. Or do the npp think their self acclaim Bawumiah lies would help them win election. Only those who cannot read between lines would vote for npp because of him. Please, ordinary Ghana have seen what the government is doing in our towns and villages.NHIS is working in Brong Ahafo, and teacher trainee allowances have pave way for more admssions and no paying of bribes before being admitted either teacter training or nursing training schools
Great Britain and France were able to construct a Tunnel under a sea. Which the so call high speed train is using to serve the two countries and some parts of Europe.Kwasi Pratt and Ndc,what is a dam in every district in northern part of Ghana?Evil empire of Ndc.Wickedness,greediness,a basket of deplorable fellows NDC.Come to America and see where good brains,wisdom,knowledge and goodwill is working.With God and Government what is impossible, wickedness is killing Ndc.God is watching you all.Kofi Adam,Asiedu Nkatia,Alotey Jacob,Mahama,every thing has its end.
So which of the following conclusions made by Bawumia are these twe'rps from the NDC coming to expose? - Ghana is now under IMF as a result of poor economic management; Ghana's GDP is now plummeting; Ghana's deficit is extraordinarily high; Ghana's agric is at an all time low; inflation is in double digits; interest rates are extremely high; the cedi depreciation is at an all time high; unemployment is extremely high; Ghana is facing an energy crisis; Ghana's loan portfolio is at an all time high. The list goes on and on.....These so-called NDC economic experts must tell Ghanaians whether any of the above is false.
Bawumia should not lie to Ghanaians and intl communities in the name of politics. some figures are 100% wrong in his assessments. Bawumia is too ambitious. like football or other games when u are watching you can easily sees where the couch suppose to make changes but when hand over to u you will the difference. book theories and calculation is totally different from working environment. In all God shall choose His leader who is fit for Ghana development from 2017. Amen
Exactly @ Ghana people especially the use of these information centres in the small towns,they should even use gong gong beating.The press conferences in Accra is enough. This ndc is busily sending their lies to the rural folks, follow them with the truth.
After listening to Bawumia and NDC's reaction, I am convinced that NDC has nothing to offer. I was a fuuuuuuuoooool to follow NDC in the past, I will stop being the same old fuuuuuuuuuuoooool by voting Mahama out.
VEEP, why is it that you go for LOANS to RETIR OLD ones?NONE of your CAPITAL INVESTIMENTS since 2009 is not MATURED enough,to start GENERATING revenue to retire some portions of your LOANS?This is to indicate to mahama and ndc that all ypour bo CALLED capital INVESTIMENTS were not wisely MADE, or NEVER made atall.
Yes the NPP has only 1 man(Bawumia) and NDC has many men(infinite resources) therefore don't be surprise because NDC has the men. JOHN DEVELOPMENT MAHAMA TOASO!
OPEN LETTER TO NANA KOMIA OF THE N,P,P COMMUNICATING DIRECTOR, ,JOHN BOADU THE NATIONAL ORGANIZER OF N,P,P AND SAMMY AWUKU OF N,P,P,,. SIR, U SHOULD USE THE MEDIA WELL, ATTACK N,D.C 27/7. USE EDUCATED PEOPLE LIKE BAWUMIA, ANTHONY CARBO, ADUMAKU BEIFE, AND ALL FIRE BRANDS TO ATTACK N,D,C EVERY MORNING, AFTERNOON AN D EVENING 24/7. . USE THE RADIO, TV, PAPERS, POSTERS AND POOR MASSES TO ATTACK N,D,C , N,D,C HAVE LOST THE ELECTION, DISGRACE THEM, ANY ONE WHO ATTACK BAWUMIA, NANA ADDO ,SHOULD BE ATTACKED MILLION TIMES BY THE MASSES, , SHOW THE NEGATIVE WORKS OF MAHAMA EVERY DAY TO THE WORLD. , UR STYLE OF ATTACKING N,D,C IS WEAK, USE PROPAGANDA AND TELL THE WORLD THE TRUTH STATE OF GHANA, USE THE MASSES TO SACK MAHAMA, ACT NOW, NOTE, SEND THIS MESSAGE TO AKOMIA, JOHN BOADU AND SAMMY AWUKU AND ALL GHANA PEOPLE TO ACT NOW, , N,D,C HAVE FAILED MISERABLE,,FROM GHANA PEOPLE