The recent State of the Nation Address by Ghanaian President Nana Addo Dankwa Akufo Addo has received criticism from economist and Professor of Finance at the University of Ghana, Godfred Bokpin, who has debunked the President’s claims of prudent financial management by his administration.
According to Bokpin, the government’s reckless borrowing and spending is evident in the economic challenges facing the country today.
In his speech, President Akufo Addo acknowledged the legitimate questions being raised about the country’s debt situation, but defended his government’s borrowing and spending, citing the urgent need for infrastructure development such as roads, bridges, and schools. He argued that the debts being serviced were not only contracted during his administration, and that there are projects to show for the borrowings made.
However, Bokpin has countered the President’s claims, stating that the available facts indicate that the government has been reckless in its borrowing and spending. He pointed out that Ghana is struggling for the first time to secure an IMF bailout, and that the government had to give a haircut to people’s bonds and investments. These actions, according to Bokpin, are indicative of the government’s financial mismanagement.
Furthermore, Bokpin criticized the government’s lack of transparency and accountability in its COVID-19 expenditure. He noted that it took the IMF to compel the government to account for its COVID-19 expenditure, which suggests that the government was not ready to be accountable and responsible.
The criticisms made by Bokpin highlight the need for governments to be transparent and accountable in their financial management. The COVID-19 pandemic has placed a strain on the finances of many countries, and the need for prudent financial management is more important now than ever. The IMF and other international organizations have provided financial assistance to many countries, but this assistance should not be seen as a solution to financial mismanagement.
The criticisms made by Bokpin serve as a reminder of the importance of transparency and accountability in financial management. Governments must be responsible in their borrowing and spending, and they must be willing to be held accountable for their actions. The COVID-19 pandemic has brought about unprecedented challenges, but it should not be an excuse for reckless financial management.