Ghana’s annual inflation climbed to 27% in June 2022, the first time the country’s inflation rate has touched 37.2% since January 2004. Ghana Statistical Service’s latest consumer price index report said June’s inflation was accelerated by higher costs of transportation, household equipment and maintenance, and utilities like electricity, gas, and water. Inflation in Ghana continues to skyrocket as it has hit more than 37% this month.
The new inflation rate underscores worsening economic conditions in the West African country, especially this year. Between October and December last year, Ghana’s inflation rate averaged under 12%. In the second quarter of 2022, it was 27%, GSS’s data show.
In June this year, the government seek for an IMF bailout when all measures put in place to restore the economy failed including the controversial “Electronic Levy”. The cedis keep on deprecating and prices of goods and services keep on going higher. It seems every three days the prices of goods and services change in our market. Does the current government say that the IMF bailout is the only solution? Let us discuss this.
The $1.5 billion IMF bailout Government so desperately seeks is equivalent to GH¢16 billion. At the end of 2020 alone, the Auditor General (A-G)’s report cited financial irregularities amounting to almost GH¢18 billion. Between 2016 and 2020, the A-G’s reports have reported financial irregularities to the tune of almost GH¢50 billion.
Reporting is very good because it shows that he is accountable for the office given to him to manned. It is the AG-s constitutional mandate to issue his reports annually. But after reporting, then what? We all go to sleep and hope the monies recover but I think it is a fallacy that Ghanaians think.
The A-G is constitutionally mandated to not only make recommendations in his reports but implement them; to disallow and surcharge institutions and individuals caught in financial malfeasance. If this is done, we will recover some of this cash, just as we did under former A-G Domelevo, who recovered about GH¢68 million from surcharges.
So, the question for the gods remains, why go cup in hand for GH¢16 billion externally, which would come with its conditions, when we can have close to GH¢50 billion just waiting to be recovered internally, by ensuring a public official just executes his mandate? This can only make political sense, but would never make logical sense.
In the education sector, we recorded GH¢80 million in financial irregularities in only 2020. These monies when recovered can help eradicate some schools under trees and provide JHSs for Primary schools without the same. A Citizens Coalition group popularly called Webecitizens embarked on a demonstration one hot Monday termed “RedMonday” to petition the AG to recover our monies for us but till now nothing has been heard. Damian Marley stated in his song “Patience” that they should pay no mind to the youths ’cause it’s not like the future depends on it. This is a replica of what is happening in Ghana now. The money which is supposed to be invested in future generations is rather ending up in people’s pockets. The politicians turn around and lambast the youth for not putting in any effort. Some even are bold enough to state that there are no jobs for them so they should go into entrepreneurship forgetting that the money squandered can serve as start-up capital.
The constitution of the country needs to be changed for the power to be given to some start institutions which are not controlled by the government to prosecute these corrupt officials. Until the day that we start holding every public official accountable in this nation, the economy will keep on deteriorating and we will seek IMF bailout all the time.
AG should recover our money for us. The future looks bleak for the younger generation.
Adam Ibrahim
Adam is passionate about politics and issues that affect governance. As a writer, he channels his energies into writing on pertinent national and political issues for the good of the Ghanaian people.