December 9, 2014

The Minority in Parliament has accused government of lying to the good people of Ghana over the disbursement of the $1 billion Eurobond secured by government.

According to the group, it has strong evidence that government used the money to pay debts owed to the Bank of Ghana, and not that the money was used to finance ongoing capital projects as claimed by government.

Speaking to the press in Parliament Tuesday, Minority spokesperson on Finance, Dr. Anthony Akoto Osei stated that evidence from the Bank of Ghana’s monthly monetary survey shows the money was received by the Bank to clear part of government’s indebtedness.

Dr Akoto Osei who is also the MP for Tafo in the Ashante region dared government to show proof of what the Eurobond was used for.

The charge on government to render accounts of what the Eurobond has been used for, was first raised by Dr Mahamudu Bawumia, the running-mate to the NPP flagbearer, Nana Akufo-Addo at a meeting he held in London.

As pressure mounted on the government, Finance Minister, Seth Tekper explained that the proceeds are being used to fund the Investment Infrastructure Fund and to pay for infrastructure development that the government has prioritized.

The Minister futher explained that the money is being used to fund the Kasoa bypass which is about 37% complete, the Kwame Nkrumah Circle interchange which is about 62% complete, the polo grounds bypass which is about 92% complete and the Ayamfuri road which is about 36% complete.
He pointed out that some of the projects date back to 2010.

However, Dr Akoto Osei emphasized that the explanation by government is far from the truth and that government should be truthful to Ghanaians.

He indicted the Finance Minister for making the issue more confusing by saying that about $800 million of the funds was being saved in a bank account in New York.

According to him, President John Mahama had given a directive to the governor not to absorb the 1bn eurobond cash but the Governor, Dr. Kofi Wampah had no choice but to “swallow” the money.

Dr Akoto Osei explained the Bank of Ghana had gone beyond its debt threshold which flouted section 30 of the Bank of Ghana Act and as a result the governor had to reduce the debt with the revenue from the Eurobond. Anim