Features
Why this unnecessary burden on pensioners and individual bond holders in the country?
Treasury Bonds are medium term debt instruments (Securities) issued by the Government of Ghana and sold to individuals or companies to raise funds for a specific time at a fixed or variable interest rate. The bonds have maturity periods exceeding two years.
Over here in Ghana, there is no upper limit but a maximum limit of GHc500.00 is required for the purchase of a bond. It generally includes a commitment to pay periodic interest called coupon payment and to repay the face value on the maturity date.
BENEFITS FROM BONDS
Unlike savings, bonds, especially those from government and major companies tend to be a safe investment. They can offer much higher return than savings account. The nature of this facility, has encouraged the majority of companies and individuals to rope onto the scheme with the intentsion of recouping sizeable interests to support them in various ways and endeavours. Even most employers in the country have taken advantage of the immense benefits to register their workers on the scheme.
In recent times, the government in its determination to revive the country’s ailing economy, has adopted a number of measures including a suspension on payment of external debt.
It,therefore, announced a Domestic Debt Exchange Programme which requires institutional holders of eligible bonds to agree to writing to the Central Securities Depository (CSD) to exchange their current holdings to new ones.
DOMESTIC DEBT EXCHANGE AND PENSION FUND
Initially, the government announced that Pension funds would be included in the debt exchange programme but Organised Labour, stood firmly against the decision which many believed was part of the conditions spelt out in the International Monetary Fund (IMF) laid out processes for the economic bailout. Organised Labour including the Civil and Local Government Staff Association of Ghana (CLOGSAG) and the Industrial and Commercial Workers Union (ICU), had all rejected the government’s attempt to include the pension funds in the debt exchange program.
According to organised Labour, it was against the law for the government to touch the pension funds. While CLOGSAG and the Ghana Medical Association (GMA) served notice that members would embark on industrial action, should the government fail to heed their call, the ICU also stated that it would be compelled to join other labour unions to demonstrate against such measures by the government.
After series of meetings between the government and Organised Labour on that thorny issue, the general consensus was to exempt the pension funds from the debt restructuring programme.
Hear the Minister of Employment and Labour Relations Mr. Ignatius Baffour Awuah, on the outcome of the meeting on Thursday, December 22, 2022. “Government and the organised labour will work together to resolve all issues to make the program successful towards the restoration of macroeconomic stability of the country.”
INDIVIDUAL BONDHOLDERS
It is surprising to know that after the attempts to include the pension funds on the debt restructuring programme had failed, the government has now turned its attention on individual domestic bondholders, as part of measures to salvage the ailing economy.
In the latter part of December last year, the government invited individual bond holders to exchange their old bond holdings for new ones with extended maturity in a domestic debt exchange programme. The invitation to this exchange programme, expired on January 16, 2023, at 4 pm, but the deadline has been extended to 31st January, 2023, at 4 pm.
According to the government, this exchange programme, would allow the country to restore sound public finance and sustainable debt levels and to kick-start economic growth, following the impact of COVID-19 pandemic. It noted that the alternative to the debt exchange would be far worse economic crisis with protracted closure from international markets, including imported goods and services, and further domestic both for the real economy and the financial sector. It would also mean depleted fiscal resources to support the neediest.
INITIAL EXEMPTION OF INDIVIDUAL BONDHOLDERS
It is recalled that individual bondholders were initially exempted from the Domestic Debt Exchange Prrogramme that the government launched on Monday, December 5, 2022.
However, the Finance Minister, Mr. Ken Ofori-Atta, in announcing the exemption of pension funds from the Debt Exchange Programme in response to recommendations by major stakeholders on December 22, 2022, said it would come at a cost.
It is important to state that the government has reached staff level agreement with its negotiation with the IMF for a three-billion-dollar bailout. Therefore, the amendment in debt Exchange programme is necessary to reach a Management and Board levels agreement with the IMF.
THREATS OF LEGAL SUIT AGAINST GOVERNMENT
This latest development has sparked off threats of legal suit in court by individual bond holders against the government. According to the Vice President of IMANI, Ghana, an Economic Think Tank, Bright Simons, three groups representing individual bond holders, have commenced mobilisation to file legal suit against the government for including individual bond holders in the Debt Exchange Programme. He explained in a tweet that individual/retail investors to Ghana’s debt default would increase the risk of litigation.
While some of these individual bond holders have threatened to commit suicide if the government fails to heed their call to rescind its decision of including their bonds on the debt exchange programme, since the benefits from that investments are the source of their livelihood and, therefore, taking them away from them mean, killing them softly, others have complained that profits from the bonds, are what they depend on to cater for their families, including their children’s school fees.
According to them, times are hard and the cost of living is unbearable, hence the profits from their investment are what they use to cushion themselves.
A number of prominent personalities including the Majority Leader in Parliament have cautioned against this latest move to involve individual bond holders in the Domestic Debt Exchange Programme, saying it is dangerous for the country’s development.
According to Mr Osei-Kyei-Mensah Bonsu, the progamme could wipe out the middle class and negatively affect the savings culture of Ghanaians. He has suggested that the Finance Minister should properly engage with the major stakeholders.
The Minority caucus in Parliament has also called for total suspension of the Domestic Debt Exchange Programme and suggested a national economic crisis dialogue by stakeholders to discuss the whole issue, including the individual bondholders matter.
ECONOMY IN SHAMBLES
It is a fact that the economy is in a state of comma and our doctors will simply put it that it is receiving serious medical attention at the Intensive Care Unit (ICU) at a medical facility with all the life supporting gadgets including oxygen and drips fixed on it. The moment, you dismantle these supporting gadgets, means death.
It is so sad that, managers of our economy have supervised the economy to that extent of deterioration, despite other natural factors like COVID-19 and Russian-Ukraine war, which they have always relied upon to defend themselves anytime they are criticised.
What is amazing, is for the fact that our finest economists and financial analysts, keep giving pieces of advice to government that will help revamp the ailing economy, but because of political expediencies, these practical and reasonable advice and suggestions are constantly ignored and left in the burner, hence the situation we find ourselves at the moment.
What we have to do as a nation which is interested in building a sound and progressive economy to rub shoulders with other advanced nations in the world, is for us to unite and push party affiliations to the background and collectively pool ideas to build this country after all, this is the only country we have and nowhere else to go.
SUFFERING GHANAIANS NEED TO BE SPARED
The people are, indeed, suffering in the midst of economic difficulties and other challenges. The cost of living is unbearable, prices of goods and services continue to escalate daily, inflation is terribly high, the cedi which appreciated against the United States of America (USA) dollar during the Christmas period is beginning to depreciate, fuel prices, although reduced a little is not the best, insurance premiums and other road worthy taxes are astronomically high.
In the midst of all these economic challenges, the government cannot continue to burden the citizens with policies that are inimical to their progress. That cannot be tolerated whatsoever in any civilised country such as Ghana.
The government should find alternatives to address the present economic challenges and stop these unnecessary ad hoc and indirect measures to mitigate the numerous economic problems.
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By Charles Neequaye
Features
The Prophet part 4
Antobam woke up with a terrible headache. He checked the time on his mobile phone, 2:30 am. “What! Where is the money?” He asked aloud. “Where are those girls? Why did I drink so much of that whisky? What were those two girls up to?” He sat up on the bed and noticed a bulge close to the pillow.
He lifted the mattress and picked up the newspaper wrappers with the neatly arranged notes. He saw the neatly written record of the value of the notes. No, those girls are not thieves.
“It was my mistake. If I hadn’t drank myself to sleep they would be here in bed with me, giving me the time of my life. Pretty girls, those two. And so loyal and honest. Tomorrow will be different.”
“I will not drink any whisky, and I will show them that I am a real man. Just then he heard the whispers. Very soon it will be time, they seemed to be saying. This is an important day.”
The gold dealer will bring lots of money. Give him some of the liquid to drink, and we will prepare him. He will do very big business, and he will give you anything you ask for. There will be more miracles and testimonies today.
Antobam smiled to himself. “I am going to be a very rich man in only a few days man. Money, power, and women. Wow! Antobam got to the grounds at 5, but there were quite a number of people waiting.
Mr Kwame Dofu was among them. He greeted them all, and they came around to shake his hand. “My brothers and sisters, I assure you that whatever your problem is, you will not go home without a solution.” Shouts of “Amen” “thank” you Osofo and “you are a true man of God” responded.
“Please take your seats, and start talking to the great one about whatever bothers you. Before the service is over, there will be a solution.” He waved Mr Dofu over, and went with him to the wooden structure that serves as a temporary office.
“My brother, I have done quite a lot of work on the issue you came to see me about. I have prepared a special, powerful package for you. Take this, drink it, and go back to your business. I want to see you in two weeks.”
Beaming with smiles, Mr Dofu drank the foul smelling liquid in two gulps, said a big thank you to Antobam and took his leave. “I believe you, Papa Osofo. And I assure you that I will reward you, big time.”
Just when Osofo Antubam finished with Mr Dofu, Mary and Suzzie went over to him. “Good Morning ladies. I am very sorry about yesterday. I drank too much of the stuff you gave me. Today will be different, I assure you.”
“Don’t worry, Osofo. Since you are now setting things up, our main concern now is to help you to put things in place, and to make you comfortable. We are always there to serve you. This morning, Osofo, we want to go and clean up your place, and prepare something nice for you when you close.
And before coming to church, we will pass by the bank and collect the forms. After you have signed them, the account will be open. You can check the payments anytime and, of course, issue cheques whenever you need money.”
“Suzzie and Mary, I am happy I picked the two of you from the very start. Listen, I will take good care of you, okay? Here is some money. Buy whatever you need for the errands you have mentioned.
And here is the key. Please come back as early as you can. You know I need you here.” The service was very lively. The lively singing of praise songs was followed by one and a half hours of testimonies.
Most of them related to money – big sales, new jobs and overdue debts paid. But there were also testimonies about healing. Barren women had taken seed, and, of course, several men who had lost their bedroom authority had regained them, to the delight of their partners.
As he had promised, Antobam preached for only 30 minutes, exhorting the congregation to attend church regularly, pay their tithes and offerings, and strictly follow his ‘directions’ for securing solutions to their problems.
After another round of praises during which the congregation danced to the floor to drop their offering, he closed the service, grabbed the big bowl which was full to the brim with money, and moved to his desk. A long queue was quickly formed at the desk.
Meanwhile, Mary and Suzzie had gone to give Antobam’s place quite a decent look. A new bedsheet and pillows, a secondhand carpet and four plastic chairs placed in the verandah had done the trick.
They also prepared two fish and chicken stews. After all these, they rushed to the National Savings Bank and collected application forms for opening current and savings accounts.
They joined the service a few minutes before the main session closed. Antobam looked round and saw, to his relief, Mary and Suzzie moving towards him. “Hello ladies. What have you been up to?” “Quite a bit, Osofo. We’ve just collected your drink. Here you are. We’ve made a few changes at your place. I think you will like it. You will also have something nice to eat. Now, here are the forms for the savings and current accounts.
If you will sign them, the bank will open the account. From today, we can pay all monies direct into the account.” ‘How can I thank you, ladies?” “You don’t need to thank us,” Suzzie said. “It is our duty to help a man of God succeed.” “Okay, my ladies, please take the offerings and count them as you did yesterday.
You can add the payments made after the consultations. Will it be possible to pay them into the account today?” “Yes,” Mary said. “The bank closes at four. If we leave here at three, we would be there just in time.”
The two friends started counting, as Osofo Antobam gave his clients his directions for solving their problems. On quite a few occasions he closed his eyes as if he was receiving direction from above on what to do.
But as the fetish priest at the Nana Kofi Broni shrine and the dwarfs had assured him, the solutions would certainly be provided. Having heard the huge testimonies earlier in the day, the clients parted with substantial sums of money in expectation.
By Ekow de Heer
Features
The issue of spiritual father in our churches
A student was supposed to go to school as the natural cause of events should be when universities or schools in general opens but this was not the case in a certain young man’s life.
He decided to postpone his trip because apparently he could not get to meet his pastor, his spiritual father. The question is, should this spiritual father die, will the young man’s life come to an end?
Does it mean in such an instance, he is going to curtail his education? This is a worrying trend in a lot of churches where the pastors use this notion of spiritual father to manipulate members especially the youth.
Some unscrupulous pastors utilise this spiritual father concept to have affairs with gullible young ladies in their churches.
Now with homosexuality gradually making inroads into some of the churches, young men are becoming vulnerable to pastors who have hidden homosexual inclinations.
This spiritual father concept is a Biblical concept that runs through both the Old Testament as well as the New Testament. We see it in 2 Kings 4:12 where Gehazi is serving Elisha and also in the New Testament we see Paul relating to Timothy in 1 Timothy 1:2 as a Spiritual Father.
In fact, the concept of spiritual father is a good thing if executed according to the word of God since it helps in guiding the younger ones. However, it becomes problematic when it is being executed by unscrupulous wolves in sheepskins as described by Jesus in Mathew 7:15.
I see it as a way that these unscrupulous so-called men of God maintain their hold on the congregants so they do not question their unchristian actions.
One of the things I have observed since I got born again many years ago is that, any pastor who often insists that members recognise that he is their spiritual father is a warning sign that he is doing some wrong things or is about to indulge in some wrong things.
A parent complained about how his daughter was being influenced by a pastor of the church she attends and how worried he was. I am sure there are many parents out there with stories to tell about how their wards are being made to see their pastors almost like their Jesus.
These pastors have managed to make their congregants so loyal to them and to believe in them so much that it is terrifying, as a parent.
The way things are going, an immediate intervention is required otherwise I am not a prophet of doom but I forsee unfortunate instances where parents burst into church auditoriums and star shooting some Pastors out of frustration and anger.
We cannot look on unconcerned as a society and allow unscrupulous fraudsters using the name of God to create problems for families. My recommendation is for a certain amount of regulation in order to bring some sanity in religious practices.
I agree that ordinarily regulating religious practices makes it a bit restrictive in terms of freedom of worship as enshrined in our constitution but given the way things are going, a bit of regulation will not be out of place.
Disgusting stuff are being attributed to some men of God. There are cases of manipulation of young ladies and sometimes married women by so called men of God and it is bringing Christianity and therefore the name of the Lord into disrepute.
Christianity is gradually losing its attractiveness as a result of the negative reportage resulting from disgusting stuff happening in Christian circles. The way some pastors have been manipulating congregants to take money from them leaves much to be desired to the point where they are convincing some of the youth to give out their phones. May God help us.
By Laud Kissi-Mensah