General News of 2014-03-26

Bawumia’s analysis is questionable – Nii Moi Thompson

An economic advisor to the President, Nii Moi Thompson, has described the former Deputy Governor of the Bank of Ghana, Dr Mahamadu Bawumia’s lecture on the state of the economy as questionable.

He also dismissed Dr. Bawumia’s claims that Ghana is heading back to the unsustainable debt regime.

The 2012 vice presidential candidate of the New Patriotic Party (NPP) on Tuesday gave a public lecture on “Restoring the value of the cedi” at the Central University College in Accra.

He proffered some solutions to curb the depreciation of the cedi and revive the ailing economy.

He urged government to exercise fiscal discipline, admit the economy is in crisis, not blame the economic crisis on the implementation of the Single Spine Salary Structure, check revenue leakages and excessive borrowing, expand the tax net, and effectively tackle corruption among others.

But speaking on the Citi Breakfast Show on Wednesday, Dr. Thompson clarified that Dr. Bawumia’s solutions are already being implemented by government.

“Some of the issues he raised are quite familiar, they are not new, they have been around, long before the government came into office,” he said.

Responding to Dr. Bawumia’s assertion that the BoG’s measures in checking the depreciation of the cedi will not work, the president’s economic advisor downplayed his claims saying “the Bank of Ghana indicated clearly that the measures they introduced were only medium term measures to save the depreciation of the cedi.”

He further explained that the “Bank of Ghana is independent institution that is separate from the government and it carries out its own independent actions.”

Dr. Bawumia in his lecture also indicated that the Single Spine Salary Structure is not the cause of the depreciation of the Cedi or the economic difficulties the country is currently facing.

In a rebuttal, Dr. Thompson dismissed the issues raised adding that Dr. Bawumia only focused on one aspect of the policy.

“There are two main components of the Single Spine Salary Structure but unfortunately he focused on only one aspect of it- the wage bill component, and therefore his conclusion is questionable,” he explained.