The Minority members in Parliament has called on President Nana Addo Dankwa Akufo-Addo to desist from misleading Ghanaians on debts in the energy sector.
They said the claim by Nana Addo that his government inherited a $5.2 billion from the erstwhile National Democratic Congress (NDC) administration is misleading.
President Akufo-Addo at a forum held in Canada said, “his government inherited a $5.2 billion debt in Ghana’s energy sector from the previous Mahama-led National Democratic Congress (NDC) administration, half of which has been paid, while the remainder hanged on the neck of his administration like an albatross.”
But the Minority spokesperson on Energy, Adam Mutawakilu in a statement said what the president is untrue.
“Today, the Minority Caucus is unable to accept the President’s claim of $5.2 billion energy sector debt created by former President Mahama during his tenure”, the statement said.
“The Minority would wish to state the following facts, for purposes of setting the records straight”.
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“The Legacy Debt of approximately $2.4 billion is a debt accumulated by successive governments between the years 1992 and 2015.”
READ THE FULL STATEMENT BELOW
Ladies and Gentlemen of the media, enough records exist to show that the President peddled falsehood with respect to what has come to be called Legacy Debts, when he addressed a town hall meeting of Ghanaian residents in Toronto, Canada.
In February 2017 when President Akufo-Addo delivered the State of the Nation Address (SoNA) to Parliament, he disclosed that “the power sector debt stood at $2.4 billion at end 2016”
Also, in June 2017 when the President addressed the opening of the 2017 World Bank Development Finance Forum in Accra, he disclosed that government would soon issue a $2.5 billion bond to offset the Legacy Debt of the energy sector in order to create space for increased investment.
Today, the Minority Caucus is unable to accept the President’s claim of $5.2 billion energy sector debt created by former President Mahama during his tenure.
The Minority would wish to state the following facts, for purposes of setting the records straight:
The Legacy Debt of approximately $2.4 billion is a debt accumulated by successive governments between the years 1992 and 2015;
$250 million out of the $2.4 billion was paid to Banks by the Mahama-led government in 2016 to ease the liquidity crunch;
As at the end of 2016, the energy sector debt was approximately $2.2 billion;
At the exit of President John Dramani Mahama, the $2.2 billion amount was certified and agreed to be settled within 3 – 5 years starting from 2016, with the passage of Energy Sector Levies Act 2015, Act 899 (ESLA);
There was a Term-sheet of $600 million to pay-off suppliers, but this was delayed by President Akufo-Addo for more than a year;
Government rakes-in approximately Ghs 3billion ($590 million) annually from the ESLA Fund;
That, President Akufo-Addo inherited a “DUMSORLESS” economy in January 2017;
At the end of 2016, almost all the state-owned enterprises (SoEs) in the energy sector reported profits, showing strong sector performance.
Ladies and Gentlemen of the media, the Minority Caucus in Parliament is, therefore, calling on President Akufo-Addo to:
Provide further and better particulars on his claim that the NDC handed over a debt of $5.2 Billion in the energy sector;
Account to Ghanaians on how the monies raised from the ESLA has been utilized;
Explain to Ghanaians how the government intends to pay the debt owed the utilities to provide the required liquidity in the sector.
The Minority wishes to assure President Akufo-Addo that it would expose any attempt to deceive Ghanaians, and to cover up the incompetence displayed in the governance of the country which has brought untold hardship on poor citizens.
We further put President Akufo-Addo’s government on notice that any misapplication of the ESLA inflows will be revisited by all means possible under the laws of Ghana when former President Mahama takes over Government on 7th January 2021.
