Today in History: Frivolous spending, lectures can’t stop Cedi fall – Moi Thompson to government

A former Director General of the National Development Planning Commission (NDPC), Dr. Nii Moi Thompson, lashed out at the government for engaging in public lectures instead of focusing on dealing with the depreciation of the cedi.

According to him, the government has been engaged in what he described as "flawed and politicized analysis or through public lectures."

"It is clear that the cedi's woes cannot be addressed successfully with flawed and politicized analyses or through public lectures full of sound and fury that signify nothing.

"Addressing those woes will, instead, require sober reflection, a clear vision of the cedi's and the economy's future, sound policies, and disciplined action, all of which will certainly transcend the government," he said.

Read the full story originally published on April 12, 2022, by starrfm.com

A former Director General of the National Development Planning Commission (NDPC) under the NDC Administration, Dr. Nii Moi Thompson, has waded in the debate on the cedi depreciation, arguing that the government is on a wrong path.

According to him, the government has been engaged in what he described as "flawed and politicized analysis or through public lectures."

"It is clear that the cedi's woes cannot be addressed successfully with flawed and politicized analyses, or through public lectures full of sound and fury that signify nothing.

"Addressing those woes will, instead, require sober reflection, a clear vision of the cedi's and the economy's future, sound policies, and disciplined action, all of which will certainly transcend government," the former NDPC boss disclosed in an article highlighting on the local currency.

He continued "In the immediate term, as the crisis rages on, the government must begin as a matter of urgency by curbing frivolous spending, especially spending that is likely to weaken the cedi further.

"This includes the importation or purchase of luxury vehicles; a reduction in foreign travels by public officials (if they could do it at the height of Covid, they can do it now); an end to the president's extravagant lifestyle and those of his appointees generally; an end to endless foreign "medical reviews" for public officials, including MPs; and any other spending that puts needless pressure on the cedi."

Background

Vice President Mahamudu Bawumia has attributed the drastic depreciation of the local currency on challenges in approving the 2022 budget and Russia-Ukraine war.

According to him, the situation brought about low investor confidence in Ghana's economy among others.

"The financial markets' assessments of the 2022 budget, unfortunately, concluded that our projected 40% increase in revenue which underpinned the 2022 budget was not likely to materialize and therefore, our deficit will increase," he disclosed during Danquah Institute and the NPP's TESCON organized event on the state of the economy on Thursday, April 7, 2022.

He continued "The chaotic battle in Parliament over the budget and the passage of the budget did not also help matters. This created uncertainty and signal to the market that government may not be able to get most of its programmes passed in a tightly balanced Parliament. This further reinforced the lack of confidence by investors in the budget."

Dr. Duffuor on the economy

However, the former Finance Minister Dr. Kwabena Duffuor has stated Vice President Mahamudu Bawumia and the NPP government cannot match the economic records of the NDC.

According to him, Ghana's economic gains under his stewardship as Finance Minister are unmatched adding that the NDC's successes had global recognition.

"We made it possible and we will do it again because we know how to do it," he disclosed during the launch of Phase One of a grassroots party empowerment and self-financing project dubbed the "Ahot)" Project for the NDC party at the Ashaiman in the Greater Accra Region.

"I hear some people are talking somewhere on the economy today, whatever they do or say what we achieved under Professor Mills they cannot do it because they just don't know how to do it. For almost two years Ghana was adjudged the best managed economy globally under professor Mills."