Economist and lecturer at the University of Ghana, Dr. Adu Owusu Sarkodie has cautioned the government to be prudent in the use of the $1bn loan secured from the International Monetary Fund (IMF) to fight the COVID-19 outbreak in Ghana.
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According to him, this is not the time for the government to be giving out kickbacks to loan facilitators and other unscrupulous things.
Speaking in an interview on Happy98.9FM’s ‘Epa Hoa Daben’ he said, “I plead with the government to use this loan efficiently. The money should be used for the intended purposes and we should avoid inflating the prices of materials purchased for the fight against COVID-19. This is not the time for politicians to line their pockets with money meant to save the entire nation from this pandemic.”
On his authority if members in the ruling government pocket some of this money then, the national day of fasting and prayer would have been in vain. “We have fasted and prayed and the latter part of the scripture we used for our prayer, 2 Chronicles 7:14 says, If my people turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land. How will God hear our prayers if we don’t turn from our sinful ways?” he queried.
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He went on to plead that the money meant to help the Small Medium Enterprises (SMEs) to bounce back on their feet should also not be given to party members. He appealed that the government collaborates with the Ghana Union of Traders Association (GUTA) to ensure the deserving traders receive this support.
“Anything to be done to help the private sector bounce back should be considered. We should reduce and pursue a single digit interest rates to help them back to their feet,” he said.
When asked by host Afrifa Mensah if the loan will prevent China from giving Ghana the debt relief it seeks he said, “The China-Ghana relationship is a bilateral and humanitarian one and I am not sure this loan will affect that. China will even have to consider this loan. It will inform them that we owe more debt and it will be generous of them to give us the debt relief.
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The Executive Board of the International Monetary Fund has approved one billion dollars for Ghana to address the COVID-19 pandemic. The funds will be drawn under the Rapid Credit Facility.
The disbursement will help address the urgent fiscal and balance of payments needs that Ghana is facing, improve confidence, and catalyze support from other development partners.
By: Joel Sanco
