IMF can’t save Ghana’s economy, stop corruption, mismanagement - Economist

The United States of America-based Economist, Dr. Sa-ad Iddrisu, has advised the government of Nana Addo Dankwa Akufo-Addo to eliminate the existing corruption and mismanagement which he said has bedeviled the administration since they took office in 2017.

Speaking on Wednesday, July 20, during a zoom lecture with some section of Ghanaian students in the United States on Ghana’s economy, Dr. Iddrisu said it is a good thing for the government to seek a credit facility through the IMF to meet its budget needs, but that alone will not solve the country’s economic challenges.

“The Bank of Ghana monetary policy reports from 2017 to date, point to the fact that President Nana Addo’s government had borrowed more money than all previous governments combined since independence.

Yet, very little infrastructural development to show for such huge borrowings”, Dr. Iddrisu said.

Dr. Iddrisu believes that “the government flagship programs such as NABCO and Free High Schools, have brought huge implicit liabilities on the government. Unfortunately, too, borrowing to finance such programs doesn’t yield enough returns in the long run, to pay back the loan principal and interests. Although the government always denies it doesn’t borrow to fund these programs, it’s totally untrue”.

To add to that, he noted that the alleged cases of corruption and mismanagement in the Auditor’s General report from 2017 to date, all point to the fact of resource leakages within the system, which the government has done very little to seal. “It’s like pouring water in a leaking bucket, no matter how much water is being poured in, it will all gradually leak out as waste without the intended purpose of the water being achieved”, Dr. Iddrisu said.

Dr. Iddrisu added that “excessive Presidential jet rentals, procurement breaches, and sole sourcing of contracts, are all areas the government should direct its attention to, so as to ensure value for money.”

To this note, Dr. Iddrisu advised the government to fight hard in eliminating corruption and mismanagement if it wants to achieve any meaningful development with the IMF loan facility.

“The IMF is granting the government of Ghana about $1 billion credit facility which is yet to be approved by parliament. Unfortunately, even if the IMF grants Ghana a $5 billion or $10 billion credit facility under this government, a large portion of the funds will be blown away by corruption and mismanagement. Nana Addo must fight corruption and mismanagement under his government with all the seriousness it deserves if it intends to achieve the needed infrastructural development and fiscal discipline,” Dr. Iddrisu said