The ten(10) cardinal sins of the government

Nana Addo Dankwa Akufo-Addo is the President of Ghana, having been elected to the position in December 2016 and subsequently re-elected in December 2020. His government and administration are focused on promoting economic growth and development, reducing poverty, improving access to education and healthcare, and fighting corruption.

Under his leadership, the government has implemented a number of policy initiatives aimed at achieving these goals. These include the Free Senior High School policy, which provides free secondary education to all Ghanaian students; the One District, One Factory initiative, which aims to promote industrialization and job creation at the local level; and the Planting for Food and Jobs program, which seeks to increase agricultural productivity and reduce food imports.

President Nana Akufo-Addo’s administration has been in office since January 2017, and during this time, there have been several controversies and criticisms of the government’s policies and actions. In this article, I will discuss the ten (10) cardinal sins of President Addo’s government or administration.

SIN 1: BANKING SECTOR CLEAN-UP

The banking restructuring implemented by President Addo’s government in Ghana has been a contentious issue that has divided public opinion since it was carried out in 2018. While some hail the move as a necessary step to sanitise the banking sector and weed out insolvent banks, others see it as a blatant abuse of power that has led to the collapse of the country’s financial system.

This decision was taken after a comprehensive review of the banking sector by the Bank of Ghana, which revealed that some of the banks were insolvent and posed a significant risk to the financial stability of the country. The Bank of Ghana (BoG) revoked the licenses of banks including, UT Bank and Capital Bank, citing their inability to meet capital adequacy requirements. This move by the central bank sent shockwaves through the banking sector, leading to a series of panic withdrawals by depositors from other banks.

In response to the crisis, the BoG introduced a series of measures aimed at strengthening the banking sector, including raising the minimum capital requirement for banks from GHS 120 million to GHS 400 million. However, many banks were unable to meet this new requirement, and as a result, several of them were either merged or closed down.

The government’s response to the crisis was to establish the Ghana Amalgamated Trust (GAT) to recapitalize some of the affected banks. The government injected GHS 2 billion into the Trust, which was used to acquire shares in some of the banks that were struggling to meet the new capital requirement.

Critics of the government’s approach have accused the administration of favoritism and lack of transparency in the banking sector restructuring process. Some have also criticized the government’s decision to use taxpayer funds to bail out banks, arguing that it sets a bad precedent and rewards poor management practices.

The government claims that their action was aimed at restoring confidence in the banking sector, protecting the deposits of customers, and promoting the growth of the sector. However, the implementation of the banking restructuring has been marred by allegations of political witch-hunting and the monopolisation of the banking sector by the government’s inner circle.

One of the major criticisms of the banking restructuring is that it was a strategy by the government to witch-hunt political opponents. The revocation of the licences of some of the banks has been linked to their affiliation with the previous government. Some have also accused the government of using the restructuring exercise to settle scores with political opponents and to silence critics.

The monopolisation of the banking sector by the government’s inner circle is another issue that has been raised by critics of the banking restructuring. The restructuring exercise has led to the consolidation of the banking sector, with a few banks dominating the market. The fear is that the government’s close allies, such as Ken Ofori-Atta, who is the Minister of Finance, will have total control of the financial system of the country, thereby creating a monopoly.

The banking sector crisis has had far-reaching consequences for Ghana’s economy, including a reduction in credit to the private sector, which has had a negative impact on businesses and individuals. The banking crisis has led to the current economic hardship in the country. The collapse of some of the banks has led to job losses, and the freezing of the assets of some customers has resulted in a loss of confidence in the banking sector. The failure of some banks has also affected the credit rating of the country, making it difficult to attract foreign investment and borrow from international financial institutions.

SIN 2: MORTGAGING THE COUNTRY’S FINANCIAL BUFFERS

The second cardinal sin of President Nana Akufo-Addo’s administration is the mortgaging of Ghana’s financial buffers such as the Energy Sector Levy Act (ESLA), National Health Insurance Levy (NHIL), and Value Added Tax (VAT). These buffers were established to provide a stable source of revenue for the government and ensure the sustainability of critical sectors such as health and energy.

In 2017, the government issued a $2.25 billion bond to finance the restructuring of the banking sector, with the bond backed by the ESLA, NHIL, and VAT. The bond was issued in three tranches, with the first tranche attracting a coupon rate of 19.75%, which is significantly higher than the market rate at the time.

Critics of the government’s approach argue that the decision to use these buffers to back the bond was short-sighted and could have long-term consequences for Ghana’s economy. They argue that the government has effectively mortgaged these buffers, which could limit its ability to respond to future financial crises or fund critical infrastructure projects.

The high coupon rate on the bond has led to concerns about the government’s debt sustainability and its ability to service the debt in the long term. Ghana’s debt-to-GDP ratio has been on the rise in recent years, and the high cost of servicing the bond could exacerbate the country’s debt burden.

The government has defended its decision to issue the bond, arguing that it was necessary to save the banking sector and prevent a systemic financial crisis. However, critics argue that the government could have explored other financing options that would not have mortgaged Ghana’s financial buffers.

The mortgaging of Ghana’s financial buffers such as the ESLA, NHIL, and VAT is one of the cardinal sins of President Addo’s administration. The decision to use these buffers to back the bond has raised concerns about the government’s debt sustainability and its ability to fund critical sectors such as health and energy. The government must take steps to ensure that it does not mortgage Ghana’s financial buffers in the future and explore alternative financing options that are more sustainable and less risky.

 

SIN 3: DELAY AND CANCELLATION OF SOME ONGOING PROJECTS

The third cardinal sin of President Nana Akufo-Addo’s administration is the delay and cancellation of some ongoing projects initiated by the erstwhile Mahama government (previous administration). The cancellation and delays of these projects have been a significant setback to the country’s development, as many of these projects were aimed at improving critical infrastructure and boosting economic growth.

One of the most significant projects affected by the cancellation and delays was the Tema-Aflao road project, which was aimed at improving road infrastructure in the eastern part of the country. The project, which had already commenced, was stopped by the Akufo-Addo government in 2017, citing irregularities in the procurement process.

Other projects affected by the delays and cancellations include the Eastern Corridor Road project, the University of Ghana Medical Centre, and the Wa Regional Hospital project, among others.

The delays and cancellations of these projects have been a source of concern for many Ghanaians, with many questioning the government’s commitment to the development of the country. Some have accused the government of being more interested in pursuing its own projects rather than completing projects initiated by the previous administration.

The delays and cancellations have led to cost overruns and wasted resources, as many of these projects had already received significant investment before being halted. The delay in the construction of critical infrastructure such as hospitals and roads has also had a negative impact on the lives of ordinary Ghanaians, particularly those living in rural areas.

In response to these criticisms, the government has defended its decision to delay and cancel some of the projects initiated by the previous administration, citing issues with the procurement process and the need to prioritize other projects.

These delays and cancellations have had a negative impact on the country’s development and have wasted resources. The government must take steps to ensure that it completes ongoing projects and avoid delays and cancellations, as these could have significant consequences for Ghana’s development.

SIN 4: HUGE GOVERNMENT SIZE, AND HIGH NUMBER OF FAMILY & FRIENDS IN GOVERNMENT

The size of the government in Ghana has been a topic of debate for many years. In 2017, President Addo Dankwa Akufo-Addo promised to run a lean government, but this promise was not kept. The government’s size has been a significant issue since it was elected into office, and it has been criticized for being too large and unwieldy. The high number of family and friends in government has also been a source of concern.

The government’s size has been a significant concern, with many critics pointing out that it is too large for a country like Ghana. According to a report by the International Monetary Fund, Ghana has one of the highest ratios of government employees to population in the world. The report also highlighted that the high number of government employees has contributed to the country’s high wage bill and low productivity.

The government’s size has also been linked to the high level of corruption in the country. A large number of government employees has created a breeding ground for corruption, with many officials using their positions to enrich themselves at the expense of the country.

Another issue that has been raised by critics is the high number of family and friends in government. President Akufo-Addo has been accused of appointing family and friends to key government positions, leading to allegations of nepotism and cronyism. The government has been criticized for appointing close family members and friends to key government positions, including ministerial positions and ambassadorial roles. Some of the notable appointments include the president’s cousin, Ken Ofori-Atta, who serves as the Minister of Finance, and the president’s daughter, Gyankroma Funmi Akufo-Addo, who works at the Office of the President.
The appointment of family and friends to key government positions has been a source of concern for many Ghanaians. Many see it as a violation of the principle of meritocracy and a reflection of the government’s lack of commitment to transparency and accountability.

The high number of family and friends in government has also been linked to the government’s inability to address the country’s challenges effectively. Critics argue that the appointment of unqualified individuals to key government positions has led to a lack of competence and the inability to make meaningful progress in addressing the country’s challenges. They argue that such appointments could lead to conflicts of interest and undermine public confidence in the government.

The size of the government in Ghana and the high number of family and friends in government have been cardinal sins of President Akufo-Addo’s administration. The large size of the government has led to a high wage bill, low productivity, and a breeding ground for corruption. The appointment of family and friends to key government positions has been seen as a violation of the principle of meritocracy and a reflection of the government’s lack of commitment to transparency and accountability. It is imperative for the government to address these issues and take steps to restore public confidence in its ability to govern effectively. It must also ensure that there is a diversity of perspectives and ideas within the government to promote innovation and creativity in policy-making.

SIN 5: EXCESSIVE BORROWING

Since coming into power in 2017, President Addo Dankwa Akufo-Addo’s administration has been accused of excessive borrowing without proper planning, resulting in a ballooning debt profile for Ghana. The government’s borrowing habits have been a significant concern for many Ghanaians, with some questioning the sustainability of the country’s debt burden.

The government’s excessive borrowing has been attributed to its ambitious infrastructure development agenda, which includes building roads, hospitals, schools, and other infrastructure projects across the country. While the government’s infrastructure development plans are laudable, the borrowing to finance these projects has been without proper planning, leading to a debt crisis.

According to the Bank of Ghana, the country’s total public debt stock as of September 2021 stands at GH¢340.6 billion ($57.3 billion), representing about 76.1% of Ghana’s Gross Domestic Product (GDP). This debt burden has led to the country seeking debt restructuring programs and IMF support for its fiscal policies.

One of the major concerns with the government’s borrowing habits is the lack of transparency in how the borrowed funds are being used. Critics argue that the government is borrowing without any clear plans or accountability mechanisms in place, leading to concerns about the potential misuse of these funds.

The excessive borrowing has also led to concerns about Ghana’s ability to repay its debts. With the high-interest rates on borrowed funds, the country may struggle to meet its repayment obligations, leading to a debt crisis that could affect the country’s economic stability.

The government’s excessive borrowing has also been linked to the country’s inability to attract foreign investments. With the high debt burden, investors may be hesitant to invest in the country, leading to a slowdown in economic growth.

It is realistic for the government to be more transparent in its borrowing and spending habits and take steps to attract foreign investments to support its infrastructure development agenda without compromising the country’s economic stability.

SIN 6: THE NATIONAL CATHEDRAL

The sixth cardinal sin of President Addo’s government is the construction of the National Cathedral. In 2018, President Addo announced plans to construct a National Cathedral as part of efforts to promote national unity and also provide a place for religious activities. The proposed location for the cathedral is on a prime piece of land in Accra, which is currently occupied by some state institutions and residences. The project is expected to cost about $100 million and has been met with mixed reactions from Ghanaians.

One of the main criticisms of the National Cathedral project is that it is not a priority for the country, especially given the numerous challenges facing the nation such as high levels of unemployment, poverty, and inadequate infrastructure. Some have also argued that the funds allocated for the project could be better used to address some of these pressing issues.

Another criticism is that the government did not carry out adequate consultation with citizens before embarking on the project. The decision to use public funds for the construction of a religious edifice has also been questioned by some, who argue that it goes against the principles of a secular state.

The project has been controversial due to the fact that it involves the demolition of some state institutions and residences. The displacement of people and the disruption of government activities have raised concerns about the project’s impact on individuals and the economy.

The project has been criticized for its lack of transparency, with some questioning the procurement process and the involvement of a religious organization in a government-led initiative.

The construction of the National Cathedral has been a controversial move by President Addo’s government, with many Ghanaians questioning the decision to allocate significant public funds for a religious edifice instead of addressing pressing social and economic challenges. The lack of transparency, consultation, and the displacement of people have further fueled the criticism of the project.

SIN 7: AGGRESSIVE IMPLEMENTATION OF FREE SENIOR HIGH SCHOOL POLICY

The implementation of the Free Senior High School (SHS) policy in Ghana has been one of the flagship policies of the government of President Nana Addo Dankwa Akufo-Addo. The policy, which was launched in September 2017, aimed to make senior high school education free for all Ghanaian students. However, while the policy has been lauded for its potential to increase access to education for all, it has also been criticized for its aggressive implementation and the challenges it has created.

One of the most significant challenges created by the policy’s aggressive implementation has been overcrowded classrooms. As more students are now able to attend senior high school without having to pay tuition fees, the number of students in classrooms has increased significantly. This has resulted in overcrowding, which makes it difficult for teachers to deliver quality instruction and for students to learn effectively.

In addition to overcrowding, the implementation of the Free SHS policy has also resulted in inadequate infrastructure. The sudden influx of students into senior high schools has put pressure on the already limited infrastructure, leading to a shortage of classrooms, dormitories, and other facilities. This has made it difficult for schools to accommodate all the students who have been admitted under the policy, resulting in some students being forced to study under trees or in makeshift structures.

Another challenge created by the aggressive implementation of the Free SHS policy has been the lack of teaching and learning materials. Many senior high schools in Ghana do not have enough textbooks, laboratory equipment, or other materials necessary for effective teaching and learning. The sudden increase in the number of students has only exacerbated this problem, making it difficult for teachers to provide quality education.

Also, the aggressive implementation of the Free SHS policy has resulted in inadequate funding. The policy was launched without proper planning and budgeting, which has led to a shortage of funds to support its implementation. This has made it difficult for schools to hire enough teachers, provide adequate infrastructure and teaching materials, and offer quality education to students.

Another major challenge created by the policy’s aggressive implementation has been poor nutrition. Many senior high school students in Ghana come from low-income families and may not have adequate foodstuff like food provisions from Home to supplement school meals if the need be. The government’s failure to adequately fund the feeding program for Free SHS students has resulted in some students going hungry, which affects their ability to concentrate in class and perform well academically.

The aggressive implementation of the Free SHS policy has also led to a high moral decadence among students. With the sudden influx of students into senior high schools, there has been a rise in indiscipline, drug abuse, and other vices among students. This has created an unhealthy environment for learning, making it difficult for teachers to maintain discipline and for students to focus on their studies.

While the Free SHS policy has the potential to increase access to education for all Ghanaian students, its aggressive implementation has created a number of challenges that need to be addressed. These challenges include overcrowded classrooms, inadequate infrastructure and teaching materials, inadequate funding, poor nutrition, and high moral decadence among students. The government needs to take urgent steps to address these challenges and ensure that the policy’s implementation is more sustainable and effective in the long run.

SIN 7: THE ISSUE OF ILLEGAL MINING (GALAMSEY)

The issue of illegal mining, popularly known as galamsey, has been a thorn in the flesh of the Ghanaian government for several years. Despite the government’s efforts to clamp down on illegal mining activities, the problem continues to persist, leading to environmental degradation and loss of revenue for the country. The Akufo-Addo administration has also come under criticism for its handling of the galamsey menace, with accusations of involvement of top government officials. This article examines the cardinal sins of the Akufo-Addo administration regarding the issue of illegal mining in Ghana.

Illegal mining, commonly known as galamsey, has been a longstanding problem in Ghana. The activity involves the extraction of gold and other minerals from the ground without the necessary permits and licenses. Galamsey has been linked to environmental degradation, including deforestation, soil erosion, and water pollution. It has also been linked to the loss of revenue for the country, as the illegal miners do not pay taxes or royalties to the government.

The Akufo-Addo administration came into power in 2017 with a promise to clamp down on illegal mining activities in the country. The government launched Operation Vanguard, a joint military-police task force aimed at combating illegal mining activities. The government also imposed a ban on small-scale mining in the country to allow for a comprehensive review of the sector.

Despite the government’s efforts, the problem of illegal mining persists in Ghana. The issue came to the fore in 2019 when investigative journalist, Anas Aremeyaw Anas, released an exposé on illegal mining activities in the country. The exposé, named the ‘Galamsey Economy’, alleged the involvement of top government officials in illegal mining activities.

The Akufo-Addo administration has been criticized for its handling of the galamsey menace. The government’s failure to effectively clamp down on illegal mining activities has been attributed to several factors, including corruption, weak enforcement mechanisms, and lack of political will.

One of the cardinal sins of the Akufo-Addo administration regarding the issue of illegal mining is corruption. The government has been accused of turning a blind eye to illegal mining activities due to the involvement of top government officials in the activity. The exposé by Anas Aremeyaw Anas alleged that some government officials were receiving bribes from illegal miners in exchange for protection and access to mining concessions.

Another factor contributing to the persistence of illegal mining activities in Ghana is the weak enforcement mechanisms. Although the government has launched several initiatives aimed at clamping down on illegal mining activities, enforcement of the laws and regulations governing the sector remains weak. The lack of effective enforcement mechanisms has allowed illegal miners to continue their activities with impunity, despite the government’s efforts to stop them.

The government’s lack of political will to tackle the issue of illegal mining is another cardinal sin of the Akufo-Addo administration. The government’s commitment to fighting illegal mining activities has been called into question due to the involvement of top government officials in the activity. The government’s failure to take decisive action against illegal mining activities has led to a situation where the problem continues to persist, leading to environmental degradation and loss of revenue for the country.

The government’s failure to effectively tackle the issue of illegal mining can be attributed to several factors, including corruption, weak enforcement mechanisms, and lack of political will.

SIN 9: HIGH ALLOCATION OF FUNDS TO THE OFFICE OF THE PRESIDENT

President Nana Akufo-Addo’s administration has been criticized for its high allocation of funds to the Office of the President, including the frequent use of private jets for foreign travel. This has led to accusations of wasteful spending and misplaced priorities, particularly at a time when the country is facing economic challenges and other pressing issues that require urgent attention.

According to reports, the Office of the President was allocated a budget of GHS 1.5 billion (approximately USD 258 million) for the 2021 fiscal year, which is significantly higher than the budgets of some key ministries and agencies. This has raised concerns about the priorities of the government and its commitment to fiscal discipline and accountability.

In addition, the frequent use of private jets by the President for foreign travel has also attracted criticism. The President has been accused of spending too much on such trips, particularly when commercial flights could be used at a fraction of the cost. This has led to calls for more transparency and accountability in the use of public funds, particularly in relation to the President’s foreign travel.

The issue of the President’s use of private jets for foreign travel was recently brought to the fore by Hon. Samuel Okudzeto Ablakwa, the Member of Parliament for North Tongu. Ablakwa, who is a ranking member of the Foreign Affairs Committee of Parliament, alleged that the President had hired a private jet for his recent trip to France, at a cost of GHS 2.8 million (approximately USD 485,000).

Ablakwa’s allegations sparked a public outcry, with many Ghanaians expressing their outrage over what they perceived as wasteful spending by the government. The issue also led to a heated debate in Parliament, with some Members of Parliament calling for an investigation into the matter.

In response to the criticism, the government has defended its spending on the Office of the President and the President’s foreign travel. It has argued that the President’s foreign trips are necessary for promoting Ghana’s interests and attracting foreign investment, and that the use of private jets is sometimes necessary for security reasons.

However, critics have dismissed these justifications as insufficient and have called for more accountability and transparency in the use of public funds. They argue that the government should prioritize spending on critical sectors such as health, education, and infrastructure, rather than on the Office of the President and the President’s foreign travel.

The government’s response to these criticisms has been insufficient, and there is a need for more transparency and accountability in the use of public funds. It is important for the government to prioritize spending on critical sectors and to avoid wasteful spending on non-essential items.

SIN 10: HIGH TAX REGIME

The current government of Ghana, led by President Nana Akufo-Addo, has been in power since 2017. While the government has achieved some significant milestones in its tenure, such as the implementation of free senior high school and the One District One Factory policy, there have been several criticisms of its policies and actions. One of the most notable criticisms is the excessive and high tax regime that the government has implemented. This is the tenth cardinal sin of President Addo’s government.

Since coming into power, the government has implemented several taxes, including an increase in Value Added Tax (VAT), the introduction of the COVID-19 Health Recovery Levy, and the proposed Electronic Transaction Levy (e-levy) on mobile money transactions. The government has also introduced a tax on betting, which has been heavily criticized by the public.

While the government has argued that these taxes are necessary to raise revenue for development projects, the high tax regime has put significant pressure on businesses and taxpayers. The introduction of these taxes has led to the relocation of some businesses and companies to neighboring countries, as the high tax rates make it difficult for them to operate profitably in Ghana. This has led to an increasing collapse of businesses, which will ultimately lead to unemployment and other economic challenges.

Furthermore, the introduction of these taxes has put a significant burden on the ordinary Ghanaian, as prices of goods and services have increased. The cost of living has become unbearable for many Ghanaians, leading to public outcry and protests against the government’s policies.

The government’s high tax regime has also had a negative impact on the country’s economy, as it has led to a decline in foreign investment. This is because investors are wary of investing in a country with a high tax regime, as it makes it difficult for them to make a profit.

The excessive and high tax regime implemented by President Addo’s government is a significant cardinal sin that has put significant pressure on businesses, taxpayers, and the economy as a whole. While the government argues that these taxes are necessary for development projects, the negative impacts of these taxes on the economy and the ordinary Ghanaian cannot be ignored. The government must reconsider its tax policies to create an enabling environment for businesses to thrive and for the economy to grow.

Finally, the government of President Akufo-Addo has been criticized for several cardinal sins that have led to public discontent and scrutiny. From the banking crisis to the excessive borrowing, delayed and stopped projects, high number of family and friends in government, illegal mining, aggressive implementation of free SHS policy, huge government size and ministers, high allocation of funds to the Office of the President, and excessive and high tax regime, the government has been accused of making decisions that have negatively impacted the country’s economy and its citizens.

It is important for the government to take note of these criticisms and work towards addressing them in a timely and effective manner. This will help to restore public confidence and trust in the government and promote sustainable economic growth and development in Ghana.

It is also important for the government to engage in meaningful dialogue and collaboration with stakeholders and civil society organizations to find lasting solutions to these challenges. With a united and committed effort, the government and the people of Ghana can work together to build a better future for all.

I do not have any political bias or affiliations. Nonetheless, I would like to propose some general suggestions that might aid in revitalizing Ghana’s economy:

1. Diversify the economy: Ghana is largely dependent on the export of raw materials, which exposes the economy to external shocks. The government should focus on developing other sectors such as tourism, manufacturing, and services.

2. Implement targeted policies to support small and medium-sized businesses: SMEs are the engine of growth in any economy, and Ghana is no exception. The government should provide targeted support such as tax incentives, access to credit, and training programs to help SMEs grow.

3. Prioritize infrastructure development: Good infrastructure is essential for economic growth. The government should prioritize the development of roads, railways, airports, and other essential infrastructure to improve connectivity and facilitate trade.

4. Tackle corruption: Corruption is a major barrier to economic growth. The government should take strong measures to tackle corruption, including prosecuting corrupt officials and implementing transparency measures.

5. Encourage foreign investment: Foreign investment can bring in capital, technology, and expertise, which can help spur economic growth. The government should create a conducive environment for foreign investment, including streamlining business regulations and reducing bureaucratic red tape.

6. Focus on human capital development: Investing in education, healthcare, and skills development can help improve the quality of the workforce and increase productivity. The government should prioritize human capital development as a key component of economic growth.

7. Implement sustainable policies: Sustainable policies that protect the environment and natural resources can help ensure long-term economic growth. The government should implement policies that promote sustainable development, including renewable energy and responsible resource extraction.