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Business News of Wednesday, 26 February 2020


Eurobonds should be immediately investigated – Adongo tells Auditor General

MP for Bolgatanga Central, Isaac Adongo play videoMP for Bolgatanga Central, Isaac Adongo

MP for Bolgatanga Central, Isaac Adongo has asked the Auditor General, Daniel Domelovo to quickly investigate the recently issued Eurobonds acquired by NPP administration as he believes a chunk of the money has been squandered by government.

According to him, investigations ought to be done into what he described as the unpopular economic tactics of government massaging figures to paint an ailing economy in the eyes of the masses.

“I am calling on the Auditor-General as a matter of urgency to conduct a special audit into Ghana’s Eurobonds that have been issued over the last 3 years totaling about 9 billion dollars and determine how they were used and appropriately reported. We passed a fiscal deficit act that criminalizes overspending beyond 5percent,”

Mr. Adongo, however, said claims by the Finance Minister, Ken Ofori-Atta suggesting that some 9.6 billion deficit from the Eurobond, was spent on the country’s budget were mere lies and fabrication.

The Finance Minister in his 2019 budget presentation on the floor of Parliament said Financing of the country’s fiscal deficit will amount to GH¢9.6 billion, including a planned sovereign bond issuance of GH¢9.6 billion.

But Mr Adongo who carefully analyzed the finance minister’s projections insists that the country’s economic management team have shrewdly distorted the figures by excluding some 7.4 billion from the government’s expenditure.

He said the actual money from the Eurobond spent on the budget was only 2.2 billion out of the 9.6 billion.

“In the report, they brought to parliament to explain how they used the 2019 Eurobonds, they told us that 9.6billion of the Eurobonds were spent on the budget. So you expect to see a total Eurobond spent on the budget as of 9.6billion cedis and not 2.2billion. it means they have squandered 7.4billion. How come you are reporting to the international community and the public that you have spent 9.6 billion meanwhile that has not reflected in your deficit? The true figure that reflects is 2.2billon,”

He said Ken Ofori-Atta had gained notoriety of deceiving Ghanaians on the economy and must be called to answer to that.

He also alleged that the government has stolen 3 billion from the Eurobond through manipulating the exchange rates which has also affected the pubic debts.

“The public debts are suffering this kind of manipulation. When you add the 3 billion to 7billion, it amounts to 10.4billion that they have suppressed from our deficit. When they use our money, it is an insult to cook up the figures with the intention to deceive us,” he stated.