Gov't insists borrowed money was invested well

Deputy Communications Minister Felix Kwakye Ofosu has rubbished claims by the largest opposition party, NPP that the huge sums borrowed by the Mahama Administration could have been put to better use.

According to him, Ghanaians can attest to the massive infrastructure projects being put up and are appreciative of them.

Mr. Kwakye Ofosu was reacting to NPP’s accusation that Government has borrowed about USD 20 billion but has only managed to invest a miserly USD 150 million in Industries.

In a statement issued by the opposition party's Director of Communication, Nana Akomea, the NPP lambasted the Mahama Administration for lack of proper focus on the industrial sector.

However, the Deputy Minister of Communication, Felix Ofosu-Kwakye says the assertion cannot be true in view of evidence on the ground.

Speaking to Radio Gold on Wednesday, Felix Kwakye Ofosu said the statement is simply an attempt to water down the acknowledgment of the bold initiative to revamp the Komenda Sugar Factory and the expected impact of the economy especially its effects on solving unemployment, and giving opportunity to Ghanaians to work hard to propel the economy.

“It is significant that they are unable to criticize the Komenda Sugar Factory. The statement exposes the falsehood of Nana Addo and Dr. Bawumiah’s claims that the NDC has borrowed USD 37 billion within the last seven years. Recently, the NPP Flagbearer who presented what he called the “True State of the Nation Address,” said, Government has increased the debt stock from 9.5 billion cedis in 2008 to some 99 billion cedis currently.

In dollar terms, the NDC government has therefore borrowed some US$37 billion in 7 years. They have now come around that that was a lie, they (Nana Addo and Dr. Bawumia) must render an unqualified apology to the people of Ghana for deliberately peddling such falsehood,” he stated in the interview.

He said the NPP exhibited a lack of thoroughness and proper research when it stated that the Government has invested only USD 150 million when evidence shows this figure is woefully below what the Government has invested in the industries.

“Governments all over the world take care of their people by providing education, housing, water, roads, health facilities for its people, So when the Ghana Government borrows from domestic and external sources, they are used purposefully to provide basic services to the people of Ghana. We have made the biggest investment in healthcare in the history of this country. We have paid serious attention to the economy. We have paid equal attention to manufacturing, industrialization with a view to get the productive sector running and creating jobs for our people,” Felix said.

The Deputy Minister said if the opposition party had been persuaded to speak the truth they would have noticed that the USD 150 million investment in industries they (NPP) talked about was palpably false; because the USD 1 billion investment in the Atuabo Gas Infrastructure Project alone is evidence that the NPP got their figures wrong.

“The Gas Project is the single biggest investment in industry in Ghana’s history. The US I billion is almost seven times the USD 150 million, so the USD 150 million the NPP is quoting is 7 times lower than the US1 billion invested in the Atuabo Gas Project. The Gas plant processes lean gas for electricity generation, LPG and Condensates for the market. The Government commissioned the Komenda Sugar Factory …which cost USD 35 million to put up and which is creating jobs for 7,300 people. Earlier in 2012, we had established the Buipe shea butter processing factory in conjunction with the Produce Buying Company which is employing people and offering about 2000 shea nut pickers a ready market to sell their produce… The Kumasi Shoe Factory has been revitalized and is now producing shoes of high quality for our security agencies and other customers… Recently we put in 50 million cedis into five pharmaceutical companies and these are industrial entities who produce drugs…to have them expand their frontiers to produce more drugs for the local and international market.”

According to Felix Kwakye-Ofosu, in the NPP’s attempt to criticize the Government, it has exposed its falsehood about our debt stock and have demonstrated their total lack of research.