Kwame Jantuah, a prominent Convention People’s Party (CPP) member, has criticized former Finance Minister Ken Ofori-Atta for accumulating a significant portion of Ghana’s GH¢742 billion debt stock during his tenure.
Jantuah called for a thorough accounting of how the borrowed funds were utilized, emphasizing the need for transparency and accountability.
“Ofori-Atta is no longer the Finance Minister, so the media should question him about the debt. They need to explain how the borrowings have benefited us. What have the loans been used for? While it’s clear that some progress has been made, there could have been more,” Jantuah said during an appearance on TV3’s Big Issue on July 27.
The Finance Minister, Dr Mohammed Amin Adam, in his mid-year budget review presented to Parliament on July 24, reported that Ghana’s total debt stock as of June 2024 stood at GH¢742 billion (US$50.9 billion), equivalent to 70.6 per cent of the Gross Domestic Product (GDP). This debt includes GH¢452 billion in external debt and GH¢290 billion in domestic debt.
Dr Amin Adam assured Ghanaians that the government is adhering to its budget, highlighting that they have managed expenditures within the 2024 Budget Appropriation and exceeded the mid-year revenue target by 0.2 per cent.
He also outlined significant debt relief measures and negotiations, including:
IMF Program: Completing the second review of the Extended Credit Facility with the IMF led to the disbursement of the third tranche of US$360 million, totalling about US$1.6 billion.
Debt Restructuring: Completing the Debt Restructuring program with the Official Creditor Committee resulted in approximately US$2.8 billion in debt relief and no debt servicing to official creditors from 2023 to 2026.
Eurobond Negotiations: Negotiations with Eurobond holders led to the cancellation of US$4.7 billion in debt and the provision of US$4.4 billion in debt service relief between 2023 and 2026.
Independent Power Producers: Agreements with five out of seven Independent Power Producers to save US$6.6 billion over the lifetime of the Purchasing Power Agreements (PPAs).
State-Owned Enterprises (SOEs): Major reforms to ensure fiscal prudence and reduce budgetary risks.
Despite these measures, Jantuah insists that Ken Ofori-Atta should be held accountable for the previous debt accumulation and the efficacy of the expenditures.
