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Is Mahama enjoying ex-gratia or gratuity?

41511085 Former President, John Dramani Mahama

Tue, 30 May 2023 Source: Kwaku Badu

I have been reading with an intense interest, the banter between former President Mahama and the Chief Executive Officer of the State Transport Corporation, Nana Akomeah, over the former’s entitlement of the Article 71 Office Holders emoluments.

To be specific, the crux of the banter is whether former President Mahama is enjoying ex-gratia or gratuity.

Ironically, the former president is suddenly contending that the ex-gratia payments are a drain on the economy and has thus vowed to repeal if given the opportunity.

For the purposes of this piece, we shall attempt to grub into the extant acceptations of ex-gratia and gratuity.

‘Ex-gratia is a goodwill payment. It is done out of kindness or grace. Jurisprudentially, an ex gratia payment is a largesse without the giver recognising any liability or any legal obligations''.’

The overarching question every discerning Ghanaian should be asking then is: why are the politicians calling their end-of-service payments as ex-gratia?

My dearest reader, your guess is as good as mine.

‘Gratuity is a payment made to an employee by an employer in recognition of long and meritorious service, above and beyond the usual wages or salary. It is usually a percentage of the employee's total wages or salary for the entire period of service. The amount of gratuity payable is usually specified in an employment contract or company policy.’

Based on the preceding definitions, I would like to believe that ex-gratia is a moral payment without legal obligation, while a gratuity is often backed by law, such as the Article 71 Office Holders emoluments.

In theory, therefore, the use of ex-gratia and gratuity interchangeably amounts to malapropism.

Well, you may choose to call it ex-gratia or gratuity, but the fact of the matter is that former President Mahama is still enjoying huge and somewhat extraneous end-of-service benefits.

More so, if Ex-President Mahama really abhors ex-gratia so much, why did he constitute a committee to deliberate and propose increments of the Article 71 officeholders’ emoluments to reflect the prevailing inflation before leaving office?

We cannot deny or ignore the fact that former President Mahama had held various roles in the political scene, first as an assemblyman, then as a parliamentarian, a deputy minister, a substantive minister, a vice president, a stand-in president (following the sudden and mysterious death of President Mills in 2012), as an elected president of Ghana, and the 2016 and 2020 flagbearer of the opposition NDC.

In fact, no Ghanaian has received so much from the coffers of Ghana more than former President John Dramani Mahama and his wife Lordina Mahama.

Credible sources have it that whilst in office, the salary of former President Mahama and the allowances of his spouse Lordina Mahama increased exponentially year by year.

It is alleged that after taking over from the late President Mills in 2012, former President Mahama was initially taking home a monthly salary of GH¢15,972, whilst his wife Lordina was receiving a monthly allowance of GH¢11,500.

Former President Mahama’s monthly salary allegedly rocketed to GH¢22,464 and increased to GH¢24,710 in 2014.

The former president’s salary is said to have increased to GH¢27,181 in 2015 and by the time he left office in 2016, he was taking GH¢29,899.

At the same time Mrs Lordina Mahama was allegedly taking a monthly allowance of GH¢17,073 in 2013, received GH¢18,780 in 2014, increased to GH¢20,658 in 2015 and took an amazing flight to GH¢ 22,724 before her husband left power in 2016 (credit: dailyguidenetwork.com, July 2021).

It is a known secret that before leaving office, former President Mahama constituted a Committee to deliberate and propose increments of the Article 71 officeholders’ emoluments to reflect the prevailing inflation.

The Committee chaired by Professor Edu-Buandoh duly recommended an annual increase of 2.4% up to 2017, backdated to 2013 for the persons listed under Article 71 of the 1992 Constitution – which includes the President, the Vice President, the Speaker of Parliament and Legislators, Judges among others.

Upon Professor Edu-Buandoh Committee’s recommendations, former President John Dramani Mahama, who used to take home a non-taxable salary of GH¢15,972 at the beginning of his presidency, was pegged at a salary of GH¢22,809. This translates into a 42.8% pay rise over the four years (myjoyonline.com, 30/12/2016).”

Prof. Edu-Buandoh’s report explained that the recommendations were based on “the committee’s guiding principles of fairness, equity, motivation and ability of government to pay.”

According to the report, while on retirement, former President John Dramani Mahama will receive other benefits such as state-provided staff not exceeding four, a furnished and up-to-date office and communication equipment.

The former president will also be provided with a staff consisting of a cook, steward, gardener and two security persons.

The former president will also have the opportunity to embark on foreign trips with his wife and would be able to use the presidential jet.

Medical and dental services will be provided to him and his wife by the state as well.

Former President Mahama will be given a chauffeur, two vehicles maintained and comprehensively insured by the State and changed every four years for life.

Moreover, the state will fully pay for overseas official travels with his spouse and two security persons.

The report stated that the state will sponsor two foreign travels per year – those not exceeding two weeks in duration – and the president and his wife are also entitled to free healthcare and other benefits, including the payment of utilities at his residence (dailyguideafrica, 28/12/2016).

Besides, the six staff at the Office of former president Mahama are allegedly taking home a minimum total salary of GH¢688,488.00 at the end of every year (See: Mahama cries over salary after pocketing GH¢568,000,dailyguideafrica.com/ghanaweb.com, 26/07/2018).

It is also worth pointing out that the Government of Ghana, without any liability or legal obligation whatsoever, decided in 2001 to hand out allowances to the spouses of presidents and vice presidents.

It was in that light that all the Committees constituted since 1993 to recommend the Article 71 office holders emoluments have asked the various governments to formalise the furtive payments to the spouses of presidents and vice presidents.

The Article 71 officeholders emoluments are drawn on the Consolidated Fund on recommendations of a committee set up by the sitting president acting in accordance with the advice of the Council of State (Ghana 1992).

It was against that backdrop that President Akufo-Addo dutifully constituted a committee in 2019 to deliberate and propose increments of the Article 71 officeholders emoluments to reflect the prevailing inflation.

The Committee chaired by Professor Yaa Ntiamoah Baidu recommended that the furtive payments being made to the spouses of presidents and vice presidents be regularised.

As was expected, the apparent unfamiliar recommendation generated public discourse amid needless insinuations and aspersions.

It was, therefore, not the least surprising at all, when the First Lady, Mrs Rebecca Akufo-Addo, and the Second Lady, Mrs Samira Bawumia took a carefully considered decision and refunded all the allowances paid to them since January 2017.

Some concerned Ghanaians, however, have been arguing consistently and forcefully that Ghana has more important pressing issues and therefore payment of allowances to the wife of a wealthy former president is a misplaced priority.

The concerned Ghanaians may have a valid point after all for contending that the spouse of former President Mahama, Lordina Mahama, for instance, is not an Article 71 office holder as prescribed by the 1992 Constitution and therefore does not deserve any salaries or allowances.

Credible sources have it that when her husband took over from the late President Mills in 2012, Lordina Mahama was receiving a monthly allowance of GH¢11,500.

The vineyard news had it that Mrs. Lordina Mahama’s monthly allowance allegedly rocketed astronomically to GH¢17,073 in 2013, received GH¢18,780 in 2014, increased to GH¢20,658 in 2015 and took an amazing flight to GH¢ 22,724 before her husband left power in 2016 (credit: dailyguidenetwork.com, July 2021).

Given the huge emoluments and allowances being enjoyed by the former president and his wife Mrs. Lordina Mahama, it is quite hypocritical on the part of Mahama to criticise Article 71 Officeholders emoluments.

Columnist: Kwaku Badu