Accra, Ghana, July 22, 2018//-A renowned Ghanaian economist and Professor at the University of Cape Coast (UCC), John Gatsi has the government on the management of the economy.
According to him, the government should just focus on the task of developing the country rather than passing on blames to the previous government.
The government’s claims of payment of GH¢ 6billion debt or arrears left by the previous government to suggest some extraordinary deed shows a misunderstanding of the obligation on all governments to pay arrears and indebtedness of previous governments, he said.
This obligation of ensuring a continuum is a dictate of public financial management, Prof Gatsi stated.
He argued that a new government inherits so many things from the previous one; including assets and liabilities, projects completed, projects ongoing and unexecuted contracts, among others.
“It is, therefore, strange to treat as special case the payments of claims related to projects executed under previous governments. This obviously is a requirement under the country’s Public Financial Management Act (PFMA)”, Prof Gatsi added.
Prof Gatsi who is also the Head of the Department of Finance, Business School at the UCC continued: ” If it is not so, the question will arise that the current government has a four year mandate but has issued 7year, 10year and 30year bonds. Will this government pay all these before exiting? Definitely no”!
He recalled that in 2007, Ghana issued a 10year Eurobond but payment was made by the National Democratic Congress ( NDC) government. Same government went further to establish a sinking fund that was used to retire the principal in April 2018.
Furthermore, Prof Gatsi noted that some projects under the current government will not be completed before their term ends.
Another government will inherit and pay any claims associated with such projects. He added that just as the New Patriotic Party (NPP) inherited the Ghana Education Trust Fund (GETFund ) and now Energy Sector Levy Act (ESLA), NDC also inherited Communications Service Tax from the NPP, he explained.
African Eye Report
