Accra, Jan. 17, – President Nana
Addo Dankwa Akufo-Addo on Wednesday disclosed that the government has adopted
different governance management system in order to protect the public purse and
ensure value for money in all activities.
“I am protecting the public purse
as I promised prior to Election 2016, my government is working tirelessly to
protect the public purse,” President Akufo-Addo stated at a Media Encounter in
Accra.
President Akufo-Addo said the government
is on a good course to stabilise the economy, enhance business growth and
subsequently create more jobs.
He said this was necessary
considering that the government inherited a “huge public debt with the
macroeconomic fundamentals of the country in disarray.
“We had to do things differently,
and these were my marching orders to all members of the government.
“We have to rapidly grow and
expand the economy, and that can only happen when the fundamentals are in
place. The Economic Management team has risen up to the challenge and
demonstrated that doing things differently we will achieve positive results,”
President Akufo-Addo stated.
President Akufo-Addo noted that,
in 2016 the Public Procurement Authority had 622 sole sourced requests, 577 of
that number amounting to 98 per cent, were approved and there were 25
rejections.
“There were 592 requests made for
restricted tenders, of which 587, which is 99.15 per cent, were approved with
five rejections. A grand total of zero savings was made through the procurement
process,” he said.
He added that “In 2017, our first
year in government, 394 sole sourcing requests were made, out of which 223,
that is 56.6 per cent were approved, and 171, that 43.6 per cent were rejected.
“There were 346 requests for
restricted tenders, and 167, that is 48 per cent were approved, and 52 per cent
were rejected. The savings made over the year, as a result, amounted to GH₵145 million, $142 million, €1.8
million and £22,400.00.
“As my own mathematics teacher
used to say, you cannot argue with figures, and such figures surely provide the
incentive to open out government procurement”.
On the debt situation, President
Akufo-Addo said the work of the Economic Management Team has yielded positive
results; “Real Gross Domestic Product (GDP) growth has rebound, recording a
growth from 9.3 per cent in the first quarter of 2017, against a figure of 3.5
per cent for the same period in 2016.
“Latest information indicates
that inflation is at 11.8 per cent, down from 15.6 per cent at the end of
December 2016. The debt situation has improved, with the annual average rate of
debt accumulation of 36 per cent in recent years, declining to about 13.6 per
cent at September 2016.
“As a result, the public debt
stock as a ratio of GDP, is 68.3 per cent against the annual target of 71 per
cent for 2017, and end 2016 actual figure at 73.1 per cent,” President
Akufo-Addo stated.
President Akufo-Addo noted that
for the first time in a long while, government had been able to give better
budgetary support for the constitutionally mandated institutions that hold
government accountable such as the Auditor General, the Judiciary, Parliament,
the Ministry of Justice, CHRAJ, EOCO and the Police.
He noted; “We have also been able
to transfer some Ghc3.3billion of tier two pension funds into the custodial
accounts of the pension schemes of the labour unions, funds that had been
outstanding for six years and the unions had been loudly complaining.
“I am being urged to pay
contractors and I am paying them. In 2017, nearly Gh₵1billion of which the government of Ghana provided Gh₵300million and the Road Fund
provided some Gh₵660 million
was paid.
“In January this year, we have
disbursed Gh₵125 million, out
of the remainder of Gh₵600
million to the contractors. We have paid Gh₵826 million of our Gh₵1.2billion
loan contracted by the previous administration, which the Road Fund was used as
collateral”.
President Akufo-Addo explains;
“It is important to know that all these debts were accrued under the previous
administration. I will also point out that much of the statutory arrears that
we met have been cleared, that is debts to the NHIS, the District Assemblies
Common Fund and the GetFund.
“We must also point out that the
salary arrears paid to our teachers last week, were accrued from 2013 to 2016”.
He said as part of the prudent
financial management, government would pay public sector bills as they come to
avoid accruing arrears.
“We are resisting the temptation
to award contracts when funds are not available to pay for the certificates as
they come up. Those who conduct business with government will find that things
are being done differently.
“We have had to subject Gh₵8 billion of arrears bequeathed to
us at the beginning of 2017, to a process of audit review and validation.
“The Audit Service has certified
payments of Gh₵5.5 billion and
rejected about Gh₵5.7 billion,
representing a potential savings of 51 per cent on these outstanding
commitments.
“This shows the validity of our
criticism, that so much of contracts awarded under the previous administration
were inflated and apparently in some cases non-existent.
“I have promised to protect the
public purse and I am doing just that. Those who have done honest work and have
honest rates for the government, will get paid and paid on time, so their
profits do not get swallowed up in bank interest and thereby threatening the
collapse of their businesses,” President Akufo-Addo stated.
GNA
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