Akufo-Addo engaged in reckless collateralisation of various funds - John Mahama

Akufo-Addo cautioned against reckless collateralisation

Hidden debts will catch up with you, John Mahama to Akufo-Addo

Akufo-Addo government has collateralised ESLA till 2035, John Mahama

Former President John Dramani Mahama has indicated that the Akufo-Addo-led government are engaged in reckless collateralisation of various funds to satisfy current consumption needs, including

Read full articleESLA and GETFund funds.

According to John Dramani Mahama, the entirely unwholesome practice of concealing debt through the collateralisation of statutory funds for the contraction of loans must be curtailed as hidden debts have never helped anyone, let alone a nation.

"...the reckless collateralisation of various funds to satisfy current consumption needs, and worse of all is the government's express desire to collateralise more of such funds.

"They have collateralised ESLA till 2035; they have so collateralised almost GH¢10 billion of GETFUND revenue through the 7-year Daakye bond. ESLA, when it was introduced, had a 5-year lifespan to pay down legacy energy sector debts. Today ESLA cannot be removed as a petroleum tax because this government has spent the money upfront and has collateralised ESLA till 2035," John Mahama said on May 2.

He added that the government is also expected to collateralise E-Levy following its implementation on May 1.

"...And it is expected that they are in the process of collateralising the revenues from the recently implemented E-levy."

He, however, cautioned the government against this practice, adding that hidden debts have never helped anyone, let alone a nation.

"This entirely unwholesome practice of concealing debt through the collateralisation of statutory funds for the contraction of loans must be curtailed. Hidden debts have never helped anyone let alone a nation.

"Hidden debts will catch up with you as it has the effect of increasing the public debt while creating a false sense of security because those debts ostensibly sit on the books of state-owned enterprises or special purpose vehicles," Mr. Mahama said.