General News of 2014-02-03

Govt incompetence to blame for cedi free fall - Akomea

Former New Patriotic Party (NPP) Member of Parliament (MP) for Okaikoi South, Nana Akomea says the “mismanagement and incompetence” of Ghana’s economy by the National Democratic Congress (NDC) government is to be blamed for the free fall of the cedi.

According to him, those at the helm of affairs lacked the innovation to ‘resurrect’ the already “dead” currency.

Nana Akomea made the comment, while discussing the prophetic prayer by the General Overseer of the Christian Action Faith Ministries, Archbishop Nicholas Duncan Williams for a stable cedi.

The Archbishop, who led his congregation in prayer over the weekend, commanded the cedi to rise.

But what appears to be a noble gesture by the senior clergyman, who wants the government to succeed, has been met with mixed reactions from the public.

While others argue that the prayer was misdirected, Dr. Tony Aidoo, a senior member in government said it is for “comic relief”.

Speaking on Asempa FM’s Ekosii Sen programme Monday, Nana Akomea said the frustration being expressed by members of the clergy proves that the government has failed.

He intimated that in the era of a Better Ghana Agenda, the socio-economic conditions in the country has move from bad to worst.

“The quality of economic management is the biggest factor for the cedi depreciation. In five years the cedi has depreciated more than 100 percent”, Akomea bemoaned.

The former Okaikoi South MP could not fathom why the Bank of Ghana cannot think outside the box but only pump in money to arrest the depreciating cedi.

In backing his argument, Nana akomea cited how the Central Bank with Vice President, Paa Kwesi Amissah-Arthur as Governor in the first quarter of 2011, invested more than 50 million dollars to support the cedi..

Nana Akomea said he is not surprised with the current development because the cedi from the days of former President Jerry Rawlings has always depreciated and appreciated when the NPP came to power.

He believes a transformation from the “Guggisburgan economy” is the only way out of the current economic woes.

In a quick rebuttal, a member of the NDC communications team, Kakra Essamuah pooh-poohed Akomea’s claims noting that “the NPP has no moral authority” to complain about the depreciation of the cedi.

He explained that the redenomination of the cedi by the erstwhile Kufuor administration is the genesis of the “devaluation of the cedi”.

“At the time of the [redenomination], the dollar was 92 pesewas, by the time President Kufuor was leaving office, it was 1.20 cedis [so] they [NPP] pumped in 1 billion dollars to shore up the cedi”, he stated.

Kakra Essamuah was convinced the depreciation of the cedi is the repercussion of what he called the demonetization of the cedi by the Kufuor government.