"Broke" Ghana Spends Lavishly On Ex-Presidents

... former presidents to get 6 cars, 2 houses, million dollars etc
The New Patriotic Party (NPP) administration approved lavish benefits for outgoing President John Kufuor, parliament heard on Monday, a move critics said could burden the country's struggling economy.

The package, approved on the previous parliament's final day, gives each former president two furnished houses, six chauffeur-driven cars, a tax-free payment linked to time served in office, as well as money for entertainment and foreign travel.

Kufour's government exceeded its forecast budget deficit almost sevenfold last year, leaving the West African state "broke," the administration of new President John Atta Mills said at the weekend .

"If some people think that maybe the figures are too high, it's up to the current president to review it," Osei Kyei-Mensah Bonsu, parliamentary leader of the opposition NPP, told Reuters on Monday.

Financial details of the cash payments were not given. But Kufuor and his predecessor Jerry Rawlings -- Mills's ally -- would each be entitled to the equivalent of several years of their presidential salary.

Mills was sworn in on Jan. 7 after narrowly beating Nana Akufo-Addo in a presidential vote in which his National Democratic Congress (NDC) overturned the NPP's parliamentary majority.

The peaceful polls were widely praised.

Ghanaian workers criticised the benefits package as unsuitable for a country burdened with public debt equivalent to more than half of its gross domestic product (GDP), despite being one of Africa's biggest gold and cocoa exporters.

"It's too much for a developing economy like ours and I expect President Mills to cut it by half. It's just too much for the taxpayer's money to bear," said Joseph Nunoo, an engineer.

Though the country is due to start producing oil in 2010, analysts say Ghana's macroeconomic fundamentals in Ghana have worsened.

Credit ratings agency Fitch downgraded its outlook on the country last year, citing rising debt and a widening current account deficit as concerns.

Rose Tsawe, a nurse in capital Accra, said the deal for former presidents was unsustainable.

"It's a test case for Mills and I hope he will make good his promise to cut our coat according to the cloth we have. There is not good news about our economy so we simply cannot afford that package," she said.

Chinery Hesse Report

RESIDENTIAL FACILITIES
"The said residences should not revert to the state in the event of the demise of the President in order not to destabilize the family in line with best practices. The quality of accommodation should be of a standard befitting a retired Head of State who must be called upon to receive and entertain the network of dignitaries including Heads of States which would have been cultivated during the period in office.
The standard of accommodation must be determined in consultation with state protocol. A model design is attached to the report.
Out- of- capital residence at a location of former President’s choice, which should also not revert to the state in the event of the demise of the former president for the same reason.
Adequate residential support staff for the residence in and out of the capital, to be provided by the state.
OFFICE FACILITIES
Office facility, fully equipped furnished and staffed with five professionals and adequate secretarial support within the nation’s capital at State expense at a location to be determined in consultation with the former president.
VEHICLES
Six fully maintained comprehensively insured, fuelled and chauffeur- driven vehicles; vehicles to be replaced every four years. The vehicles should be three saloon cars, two cross country vehicles and one all purpose vehicle (armoured car). Travel in congested traffic should be facilitated appropriately with police escort, bearing in mind security considerations.
OVERSEAS TRAVEL
Overseas travel once a year with a maximum duration of 45 days for former presidents and spouses. A former President who has served two consecutive terms should be entitled to a period of 60 days overseas travels taking into account the longevity of service and accompanying stress given the demands of the office.
Three professional and personal assistants and adequate security should accompany the former president in all overseas travels at the expense of the state; this is in line with best practice.
MEDICAL AND DENTAL SERVICES
Medical and dental services at the expense of the State.
MISCELLANEOUS BENEFITS
Adequate 24hour security service should be provided at all times. Entitlement to Ghana diplomatic passport, and diplomatic courtesies for former President and spouse. Entertainment: Adequate provision by state protocol.
NON TAXABLE EX GRATIA
Equivalent to 12 months Consolidated Salary for each full year of service or pro-rata. Where the President has served for a second consecutive term, an additional nontaxable resettlement grant of 6 months of consolidated salary for each full year of service, or pro-rata prepaid with nontaxable ex-gratia of 12months of consolidated salary for each year served.
ESTABLISHMENT OF INDEPENDENT INSTITUTES/FOUNDATION
As we have stated, the committee acknowledges that the former Presidents should be put in a position to use the experience which they would have garnered during their time in office; this would also have the advantage of mitigating withdrawal pangs after a life of prominence and importance.
In addition to mobilizing resources from the many international Development Partners who have expressed the willingness to support such a cause in promotion of good governance and democracy, the Committee recommends that the State should provide seed money, equivalent to one million US dollars as an endowment to launch this project. This Institute might be associated with one of the tertiary institutions or a think, which might give technical and professional support during the nascent period.