IMF Reacts To Govt. Misinformation

The International Monetary Fund (IMF) has confirmed reports that the former government misinformed the Fund on the economic status of the country but has made it clear that it has not taken a decision yet on the issue. The $ 38.5 million dollars that was being alleged as penalty that Ghana has to pay for providing false information is therefore not true.

In an interview with the Daily Graphic, the Resident Representative of the IMF, Dr. Girma Bergashaw said, a three-member team have been invited into the country to study the problem and submit its recommendations to the Fund's board before a final decision is taken.

He argued that, the data system management of the Bank of Ghana, the Controller and Accountant General's Department and the Finance Ministry lead to the misinformation. He said, if the agencies concerned had spent a little more time in looking for the information, the situation could have been avoided.

A major system that the team found out was that, if the Ministry of Finance gave a directive to the Controller and Accountant General's Department and there was no feed back from the department to show that the directive had been carried out, the two institutions would have different figures.

Equally, if the Department gave an order to the Bank of Ghana to pay and the bank had no money and so payment was not effected and there was no feedback, the two institutions would have different figures. The team, he said have therefore recommended that, there should be a common database for the three institutions to avoid discrepancies.

Another solution to the problem, Dr. Bergashaw added, is that there should be delegated powers to enable deputy ministers and chief directors to authorize debt payment in the absence of the minister.

He admitted that he is not happy about the false report because it does not augur well for the operations of creditors such as members of the Paris Club and the fund itself.