Editorial News of Wednesday, 14 February 2007
Source: NDC
Good afternoon, Ladies and Gentlemen, just last Thursday, February 08, 2007, President J.A. Kufour read his message on the State of the Nation to Parliament. In that speech, he challenged members to do a critical mid-term analysis with candour and sincerity on the state of the nation. This is exactly what we intend to do in this piece
Ladies and Gentlemen, the President in his State of the Nation Address presents a picture of hope, progress, and achievement instead of the actual picture of desperation and despair, doom and gloom of the future and the dark clouds of fear and insecurity hanging on the lives of the majority of citizens of this nation.
The unprecedented and peaceful handing over of power from one democratically elected government to another and the immeasurable and tumultuous goodwill Ghanaians gave to the NPP administration have long been recklessly squandered by the government at the alter of viciousness, vengeance and arrogance.
The recent return of His Excellency, Kofi Annan, the victories of the Black Stars and the Golden Jubilee Anniversary present a unique opportunity for us to reconcile ourselves, unify the nation and set it on the path of accelerated development. It is painful to state that the 6-year rule of the NPP administration has left the country even more deeply divided, in a way not experienced since our independence.
Ladies and Gentlemen:
The true state of our nation is one that is bitterly polarized on political and ethnic lines, where political patronage reigns supreme and the politics of exclusion is a daily nightmare for people who do not tow the line of the ruling Government. The culture of fear has been introduced into the body politics of the country. As a result businessmen, contractors, intellectuals and others fear to express their views objectively or be seen associating with non-NPP politicians.
Since the NPP took over the administration of this country in 2001, there has been a pernicious attempt not only to demonize the largest opposition party, but the pursuit of an actual policy of selective justice in which the judicial process is used to incarcerate as many leading members of the NDC as possible, with the avowed aim of prosecuting the party into oblivion. It is no wonder that former Senior Minister J.H. Mensah let slip the actual intentions of the NPP, when he pronounced with elation in Legon, that “by the time the government finishes with the trial and imprisonment of former NDC Ministers and functionaries, the NDC will be no more.” Since 2001 a large number of NDC personalities have had their homes searched ‘Rambo style’ under the guise of looking for illegal weapons. Many have been hauled before investigative bodies, had their cars impounded, and subjected to numerous kinds of harassment. In the absence of a reality check, one would not believe that this was Ghana of the 21st Century, where one party had handed over power to another in a peaceful transition. It is reminiscent of the era of coup d’etats.
Since then, the conviction of Mallam Issah of the PNC and other NDC personalities like Ibrahim Adam, Kwame Peprah, Dr. George Yankey, and only recently Dan Abodakpi have occurred in the face of even more blatant instances of corruption and obvious and serious cases of financial loss to the state under the very nose of President Kufuor. In all this President Kufour has abdicated his oath of office in which he swore “to do right to all manner of persons” and deviously insists that he will not respond to allegations against members of his government and will only take action if he is provided with evidence. Even when evidence has been provided he has still failed to act.
The general public’s opinion about the judiciary is not a flattering one. There are allegations of interference in the work of judges by the Chief Justice. Ghana needs a strong and independent judiciary that is not subject to the manipulation of the executive or the rich and powerful in society. The public pronouncement of the Chief Justice that judgments are written for some Judges and the blatant interference in the work of the Judiciary by the President in the Tsatsu Tsikata’s case are clear testimony of the NPP’s misconception of an independent Judiciary. The judiciary must be strengthened and resourced to carry out its constitutional duties.
We must consider the possibility of an independent public prosecutor with security of tenure. Such a prosecutor must have constitutional authority to institute prosecutions without considerations of political affiliation. We therefore recommend the separation of the office of the Attorney- General from that of the Minister of Justice.
The law setting up the Serious Fraud Office (SFO) must be reviewed to strengthen it in the fight against corruption and graft. The SFO must be affiliated with the office of the independent public prosecutor and must be able to initiate investigations in cases of abuse of office and corruption without recourse to the political office of the Minister for Justice.
We must take the fight against corruption to a whole new level instead of the platitudes paid to it so far by the Kufuor administration. The Office of Accountability in the Office of the President must be shut down and the resources being expended on it channeled to the SFO and CHRAJ. There must be constitutional review of our assets declaration regime to make it more meaningful in the fight against corruption.
There must be an inter-party consensus on the nature and number of ministries Ghana needs so that ministries do not appear and disappear at every cabinet reshuffle with the attendant disruptions and waste of public resources.
A prominent lawyer and citizen of Ghana, Alhaji Ibrahim Mahama, currently live in exile in Burkina Faso for fear of being attacked and murdered.
Recently mysterious killings in the Suhum area have created fear about the possibility of a serial killer operating in the area. This has heightened fear among the citizenry in view of the mysterious deaths of women that occurred in the run up to the 2000 elections. The brutal gunning down recently of the late Samuel Ennin, the Chairman of the GJA Ashanti Region, is a typical example of the state of insecurity Ghanaians have to live with under the Kufuor administration.
The NPP Government continues to take pride in stabilizing the macro-economic environment. While it is largely true that there has been stabilization in this sector over the last several years, many factors account for this. A favourable international economic environment beginning 2001 has been a key factor in achieving this stabilization. Unlike the period leading up to the year 2000, when prices of our major export products were near collapse, with cocoa at an all time low of $700 per tonne and gold trading as low as $240 per ounce, cocoa from 2001 has traded at an average of $1600 per tonne, while gold has consistently kept pushing the $700 per ounce mark. Added to this has been the improved donor inflows and huge debt forgiveness granted Ghana and other developing countries.
Indeed one can say that with the amount of resources available to Ghana over the last six years, this country must be far ahead of where it presently is. It is a paradox of our development that with the kind of resources that have flowed into this country under the NPP Administration, Ghanaians feel even more financially emasculated than they did before the period up to 2000.
Ladies and Gentlemen:
The latest UN Human development report released last year gives a graphic picture of what is happening in Ghana. The report indicates a reduction in the quality of life and a growing gap between the rich and poor in Ghana. While the 20% richest have access to the best of social services such as education and health, the 20% poorest have experienced a significant slide in their quality of life, especially in respect to basic social services such as shelter, health, education and access to water. Guinea worm has gone on a rampage. Ghana has gone from being the best country in guinea worm eradication in 2000, to overtake war torn Sudan as the worst country in terms of the incidence of guinea worm. In a sad commentary ex- President Jimmy Carter described Ghana as not only being the worst afflicted in the guinea worm disease but also as being a major exporter to neighbouring countries. Maternal mortality and infant mortality have all shot up significantly over the last six years. In respect to infant malnutrition, the latest statistics indicate that almost one out of every three Ghanaian children is malnourished.
Introduction of numerous taxes and levies have increased the cost of doing business in Ghana. This has been aggravated by steep hikes in the price of utility services. The cumulative cost of electricity supply has gone up by more than 300%, water by more than 100%, and petroleum products by about 500%. These have resulted in the obvious sluggish growth in the industrial and manufacturing sector. Combined with an erosion of the purchasing power of the citizenry, this situation has led to a folding up of many businesses and left most manufacturers and consumer outlets with high inventories.
While the NPP in opposition was strongly opposed to petroleum price increases, and actually chided the NDC Government to look for other sources of generating revenue other than petroleum taxes, in government the NPP has superintended some of the steepest hikes in petroleum taxes and price ever in the history of Ghana. Where has all this revenue gone? What does the ordinary Ghanaian have to show for the huge revenues collected by Government over the last 6 years? We share the CJA’s opinion in their statement of April 26th, 2006 when they say that “ordinary Ghanaians must not be overtaxed to satisfy the opulent lifestyles of government functionaries. All Ghanaians have been watching with indignation the dramatic changes in the lifestyles of NPP Government officials who until recently were almost paupers.”
Ladies and Gentlemen: Despite the President’s numerous and expensive foreign travel, ostensibly to seek investment, foreign direct investment (fdi) has fallen steeply and hovers around the $100 million per year mark, from a high of almost $400 million in the late 1990s.
There has been a steep increase in external borrowing. In 2005 alone external borrowing amounted to almost $800 million, representing a 20% increase in external debt. Indeed it is paradoxical that while the NPP Government begs for debt forgiveness with one hand, it continues piling on additional debt at an even faster rate with the other.
The cost of high utilities and levies also led to a collapse of many firms in the timber industry. This led to massive lay-offs. The young and energetic youth left unemployed by this situation finding no other means to eke out a livelihood, have resorted to chain-saw operations, which is fast destroying the little forest cover left in Ghana.
A significant portion of the population that were marginally above the poverty line, have become a new class of poor people. Diminishing real incomes have thrown a larger number of people into the street, leading to a phenomenal increase in the number of street hawkers.
The registration of unemployed and under-employed was an ill-advised measure adopted by government which has led to increased frustration among the teeming number of unemployed. Almost 4 years on, many of them are left clutching the little registration slips they were given with absolutely no job prospects in sight. The Youth Employment Programme for which government illegally raided the coffers of the GETFUND, NHIS and District Assembly Common Fund, is not providing much relief. On the ground the programme is being implemented on party lines. There are numerous reported cases of coordinators demanding a registration fee from the already impoverished youth. In other cases, the youth are led to believe that they must join the NPP in order to enhance their chances of earning a job placement.
To supplement thermal generation using gas, the then CEO of GNPC, Mr. Tsatsu Tsikata, who is currently being tried for causing financial loss to the state, championed the West African Gas Pipeline Project and went ahead to sign the MOU after extensive advocacy work that got Togo, Nigeria and Benin on board the project to make it viable. The Parliamentary Committee of Mines and Energy at the time, was also resourced to visit the legislatures of Togo and Benin, to persuade their counterparts there to buy into the project and prepare for legislative input. This is the project for which President Kufuor constantly tries to steal credit.
The NDC envisioned that this project will bring considerable amounts of cheap Nigerian gas to Ghana and reduce the cost of thermal generation by almost 30%. NDC also introduced the policy of Independent Power Producers (IPP) within the framework of the power sector reform. This allowed the participation of the private sector in power generation to supplement that provided by VRA. Plans were also far advanced in respect of additional hydro generation, through execution of the Bui Dam project. The reckless cancellation of the contract of Messrs Brown and Root, threatened to endanger the project until the salvation by the Chinese Government almost 5 years late in 2006. The NDC policy to promote the use of LPG and renewable energy sources has been shelved since 2001. No serious initiatives have occurred on this front under the NPP Administration.
Ladies and Gentlemen:
Despite these laudable initiatives bequeathed to the NPP Government in respect of energy generation, the Kufuor administration went to sleep and could not see or hear the warning signs. Not even a strong warning by the Chief Executive of VRA that with VALCO coming on stream, the Authority could buckle under the pressure if urgent steps were not taken to enable it recover its losses and augment its generating capacity. The NPP Government only woke up in shock when they were hit by the power crisis of 2006. The President in his address mentioned belated measures to resolve the problem. While we are skeptical about how fast these measures will alleviate the supply bottle-necks, particularly so as the President cared little about the accuracy of his figures, we are willing to strongly support these measures in order that they come to fruition as early as possible, to put the energy supply that is so crucial to national development back on an even keel.
NDC had started the pilot schemes for the introduction of a National Health Insurance Scheme before it left power in 2000. At the 2000 election, there was a consensus as indicated in the manifestos of all the political parties that contested the elections, that a national health insurance scheme was the best way to improve general access to health care. With its victory in that election, the lot fell on the NPP to implement the scheme. A very reckless and over hasty implementation that saw a one-sided passage of the bill through parliament and lack of due diligence in implementation has led to a huge mess in the NHIS. As we speak now, almost 3 million people registered under the scheme, one year on, have not received their cards to enable them access healthcare.
We also have a situation where hospitals and pharmacies are reluctant to provide care under the scheme because repayment of claims under the scheme is reported to be very slow.
There are many cases where holders of insurance cards from one district are refused treatment in another district when they travel. They are asked to either pay cash or go back to their district to access treatment.
Children are disadvantaged under the scheme. Under the cash and carry system, children under five, pregnant women and persons over 70 years were entitled to free healthcare. Under the current scheme, children are entitled to treatment only if their parents have subscribed to the NHIS. This would adversely affect our infant mortality statistics.
More sinister is the blatant breach of Act 650 by the agencies that are supposed to transfer funds into the National Health Insurance Fund. SSNIT is in arrears of several billions of cedis in respect of the transfer of the 2.5% workers contribution to the NHIF. Payments that should go directly to the NHIF from the collecting agencies are rather paid to the Ministry of Finance and Economic Planning and the Controller and Accountant Generals Department, who then decide when to transfer these monies to the NHIF contrary to clause 91 of the law. These monies have therefore suffered the hazards of going through the consolidated fund.
Ladies and Gentlemen: As at 31st December 2005, the total amount of money accrued from NHIL and SSNIT contributions stood at ¢1.861 trillion, out of which only ¢984.48 billion had been paid to the NHIF. As at December 2006, an outstanding balance of ¢1.45 trillion remained to be paid to the NHIF. This is based on the projected figure for 2006 of ¢1.51 trillion. Information available however indicates that collections were well above this figure.
Quality education is increasingly becoming a preserve of the rich. With a widening gap in quality and cost between the urban private schools and rural public schools, the children of the rich have access to quality education and the jobs that flow therefrom, while the children of the rural poor are consigned to a status of semi literacy and a general lack of opportunity for self improvement.
High school fees ranging from a minimum of about ¢3 million to a maximum ranging in 1000s of US Dollars, have made the urban private and international schools a no-go area for the children of the ordinary Ghanaian. While liberalization of the tertiary sector and the advent of private universities have led to increased opportunity for university education, the fees charged are so high that majority of students from financially challenged homes cannot take advantage of the new opportunity. Some professional courses like law and medicine for which fees are charged between ¢15 million and ¢40 million respectively, have once again become a preserve of the upper class.
Morale in the teaching field is at an all-time low. High handed measures adopted to break the NAGRAT strike including withholding their salaries, has completely demoralized the teachers. This certainly will affect the quality of teaching and learning at the classroom level.
Problems with the Computerized Selection Placement System (CSSPS) have resulted in chaotic situations where in some cases, students who opted for day schools have been posted to boarding schools outside their communities, girls have been posted to boys-only schools and vice versa, Christian students have been posted to Muslim schools and vice versa. So confused was the situation that in the first year of operation, the headmasters and headmistresses that the system was designed to exclude from the admission process had to be called in a panic and camped for upward of a week, to apply the human touch to what the computerization had so badly messed up.
The polytechnics are even now more confused than ever about their status. Regular strikes by Polytechnic Teachers (POTAG) have severely disrupted academic work. Thousands of graduates from polytechnics with degrees varying from mechanical engineering to catering cannot find placement in the job market, because employers are still confused about the worth of their qualification.
We suggest the holding of a national forum to discuss the educational review before it is implemented latter this year. The capitation grant should be paid in one big bulk at the start of the academic year in order to allow the schools authorities manage and plan better. There should be a review of CSSPS in order to let it achieve the purpose for which it was introduced. Part of the GETFUND should be set aside for subsidizing the high fees charged at the tertiary level in the form of bursaries or scholarships. The GETFUND should be decentralized to allow institutions and schools apply bulk sums to their priority needs.
Saddled with massive short term debts, political interference and award of large dubious contracts to cronies, the Norwegian managers just continued to fleece the company of huge consultancy contracts and heavy pay packets running into billions of cedis until gratefully but most belatedly, the President intervened and halted the orgy. Ghana Telecom is in need of urgent re-structuring and a review of management. The current exercise to re-privatize Ghana Telecom and Westel must be carried out transparently and the new investors allowed a free hand to compete with Areeba which appears to have had such a big head start while the two had gone to sleep.