The crux of the disagreement revolves around the balance left in Ghana’s Sinking Fund, an account designated for debt servicing. Former President John Mahama asserts that his administration, upon leaving office in 2017, left $250 million in the fund. He contrasts this with the purportedly meager sum of $64,000 and GHS 143 million (in dollar and cedi accounts respectively) left by the succeeding Nana Akufo-Addo-led NPP administration after their eight-year tenure. This claim was made during President Mahama’s State of the Nation Address in February 2027, where he attributed the current economic challenges to the previous administration’s “reckless debt accumulation and economic mismanagement.”
Dr. Gideon Boako, a Member of Parliament and former spokesperson for the Vice President under the NPP administration, has vehemently refuted President Mahama’s assertion. Boako argues that the figures cited by the President reflect the balance as of August 2024, the last time the NPP government made payments to domestic bondholders. He contends that this snapshot fails to account for subsequent inflows into the Sinking Fund between August 2024 and January 2025, when the NPP left office.
Boako’s counterargument highlights several potential sources of additional funds that he claims were not considered in President Mahama’s presentation. He mentions an “auction excess” of over GHS 700 million on January 3rd, 2025, along with GHS 3 billion in unspent end-of-year revenue, both of which he claims contributed to the fund’s balance. Furthermore, he alludes to other “unspent funds in various accounts” that he believes should be factored into a comprehensive assessment of the Sinking Fund’s status upon the NPP’s departure from office. Boako has challenged the current administration to publicly disclose the updated balance as of January 6th, 2025, to substantiate their claims.
This dispute reflects a broader political and economic narrative in Ghana. President Mahama’s statements position the NPP’s economic management as irresponsible, leading to the depletion of vital financial resources. This narrative serves to justify the current administration’s focus on fiscal consolidation and debt restructuring. Conversely, Boako’s defense seeks to portray the NPP’s economic stewardship in a more positive light, emphasizing their efforts to maintain a robust Sinking Fund and leave a stable financial position for their successors. The conflicting claims underscore the importance of transparent and accurate financial reporting to foster public trust and informed policymaking.
The call for transparency, as voiced by Boako, is crucial for fostering accountability and informed public discourse. By providing a comprehensive account of the Sinking Fund’s balance as of January 6th, 2025, the current administration could address the discrepancies highlighted by Boako and provide a clearer picture of the nation’s fiscal health at the time of the transition of power. Such transparency would allow for a more objective assessment of the previous government’s fiscal performance and inform current economic strategies.
Ultimately, the veracity of both claims hinges on the release of comprehensive financial data. The public deserves a clear and accurate accounting of the Sinking Fund’s status to understand the true financial position inherited by the current administration. This transparency is essential not only for holding past administrations accountable but also for shaping future economic policies and fostering public trust in the government’s financial management. The ongoing debate highlights the critical role of accurate financial reporting in fostering a healthy democracy and ensuring sound economic governance.
