‘Is gov’t diverting $250m of Eurobond cash for campaigns?’ - Bawumia

Dr Mahamudu Bawumia has questioned if the Government of Ghana is diverting $250million of the $1billion Eurobond issued last year, for election campaigns ahead of the November polls.

The running mate to Nana Akufo-Addo of the New Patriotic Party (NPP) raised the concern when he addressed students of Accra Polytechnic on Thursday May 5.

Dr Bawumia said $250million of the Eurobond proceeds has been allocated to the Ghana Infrastructure Investment Fund (GIIF), although, according to him, the Fund was not yet operational.

The former Second Deputy Governor of the Bank of Ghana is, therefore, wondering if the move is part of a grand scheme on the part of the Government to divert proceeds of the Eurobond for political campaign purposes.

Aside from infrastructural development, the $1billion Eurobond facility, which was oversubscribed last year, was meant to help shore up the cedi against major international currencies such as the dollar and euro.

But, according to Dr Bawumia, government has transferred part of that money from the account of the central bank into a private account for reasons unknown.

“Ghana borrowed $1billion in 2015 through the issuing of the Eurobond. Out of this $1billion, government allocated $250million to the Ghana Infrastructure Investment Fund, which is a fund that is supposed to be used for infrastructure investment. This fund is not yet fully functioning. They do not have any project yet to do, but government found it wise to allocate them $250million and this money was kept at the Bank of Ghana. Notwithstanding the fact that the Ghana Infrastructure Investment Fund is not yet operational, this government transferred the $250million from the Bank of Ghana [meant for] Ghana Infrastructure Investment Fund, to a private bank and they now turned around to use this money to lend to government”, Dr Bawumia alleged.

“Who authorised the movement of the $250million from the Bank of Ghana to a private bank? If the Ghana Infrastructure Investment Fund is not operational, then why was this transfer done? What are they supposed to do? Is this the way the government is trying to find money for the 2016 election?” he asked, adding: “Our eyes are very open. This is complete mismanagement and I advise them to move the money from the private bank to the Bank of Ghana where it should be.”