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Dumsor looms, Mahama’s govt must act swiftly – IES
The Institute for Energy Security (IES) has issued a dire warning about an impending power crisis, commonly referred to as ‘dumsor,’ urging the Mahama administration to take immediate action.
This follows concerns raised by John Abdulai Jinapor, Member of Parliament for Yapei Kusawgu, who cited a severe fuel shortage as the root cause of the looming crisis.
Speaking after the inauguration of President John Dramani Mahama in Accra on Tuesday, January 7, 2024, Jinapor revealed that Ghana’s current fuel stock is critically low, with only five hours of fuel supply remaining.
He criticized the outgoing administration for failing to secure sufficient fuel, leaving the incoming government in a vulnerable position.
Backing these claims, Nana Amoasi VII, Executive Director of the Institute for Energy Security (IES), highlighted the fragile state of Ghana’s power sector during an interview on Eyewitness News on Citi FM.
He attributed the crisis to systemic inefficiencies and poor planning, stressing the urgent need for reforms to prevent prolonged power outages.
The IES and other stakeholders are calling for decisive action to address the situation and stabilize the country’s power supply.
“It is not something that we were not expecting. Being watchers of the space, we knew very well that we had a very fragile power sector stemming from systemic inefficiencies, including poor planning,” Nana Amoasi VII stated.
He emphasised the reliance on natural gas and the lack of adequate backup or stock of liquid fuel, which has left the country exposed to potential power outages.
“Today we are more reliant on natural gas, but thank God almost all the plants that we have in Ghana, excluding the hydro ones and the solar, all of them can run on liquid fuel as well. But we knew that we don’t have any backup or any stock of liquid fuel in adequate form, so we knew that at a certain point in time we could be exposed,” he explained.
Nana Amoasi VII expressed disappointment that no procurement or lifting arrangements were made during the transition to ensure a seamless power supply.
“Unfortunately, we were expecting that as part of the transition arrangement, some form of procurement or lifting would have been made to ensure that there is no gap left within the space, but our checks indicate that we don’t have enough liquid fuel to give us that reliance and assurance that we won’t have any shock in power supply,” he added.
The IES Executive Director appealed to the current administration to take immediate action to address the looming crisis.
“So we will appeal to the men in charge today to get back to work and start work as soon as possible. Either than that, we are largely exposed,” he stated.
Source: citinewsroom.com
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Over GH₵80m was collected in betting tax, Amin Adam got it wrong – Finance Minister
Ghana’s Minister for Finance Ato Forson says the claim by former Finance Minister Mohammed Amin Adam that the erstwhile administration never implemented the betting tax is not factual.
Speaking at a new conference on Tuesday, March 11, shortly after the Finance Minister presented the new government’s first budget statement and abolished the e-levy, betting tax among others, the former Finance Minister said the NPP government never enforced the controversial tax on lottery and sports betting winnings.
Dr Amin Adam said it was deceptive for the NDC government to claim to abolish a tax that was never collected although the law was passed in 2023.
“Betting tax that they said they have abolished, we never collected Betting Tax. So to come and tell Ghanaians that you have abolished something that you have not implemented, is to deceive the people of Ghana.”
Responding to the claims in an interview with Evans Mensah on JoyNews’ PM Express on Tuesday night, the Finance Minister said his colleague on the other side appears not to be on top of that issue.
“I don’t think he’s on top of that matter because my checks revealed that it was implemented in the second half of 2024. And my checks also reveal that year-to-date, the government of Ghana has collected over GH₵80 million from betting tax, so I don’t know what he’s talking about. It is not the fact. The fact on the ground does not support his assertion. Clearly, the betting tax was implemented,” he insisted.
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Whoever created BoG’s GH₵53bn negative equity mess should be held responsible – Dr. Atuahene
Banking consultant Richmond Atuahene has called for accountability over the Bank of Ghana’s (BoG) GH₵53 billion negative equity, insisting that those responsible for the mess must be held accountable.
In an interview on Joy FM’s Midday News on Wednesday, March 12, he called for those responsible for breaching financial regulations to be summoned before Parliament to explain their actions.
“There was a law that stated they should not exceed a 5% fiscal financing threshold, yet they went as high as 60%. This is a clear violation, and they cannot claim ignorance. The Governor, the Minister, and those involved must be held accountable for their actions,” he asserted
His comment comes after the Finance Minister, Dr. Cassiel Ato Forson, advised BoG to explore internal cost-cutting measures instead of relying on taxpayer funds for a GH₵53 billion bailout to address its negative equity position.
Dr. Atuahene supported the Finance Minister’s stance that the government cannot afford to recapitalise the central bank at this time, given the nation’s fiscal constraints.
“Like the Minister said, you don’t create a mess and leave it for others to clean up. Whoever created this mess must take personal responsibility. When they engaged in the monetisation of fiscal deficits in 2021 and 2022, some of us warned them about the consequences, but they didn’t listen,” he stated.
Dr. Atuahene stressed that rather than relying on external funding, the Bank of Ghana should explore internal restructuring, cost-cutting, and asset sales, including a sale-leaseback arrangement on some of its properties, to raise the necessary capital.
He also highlighted the potential damage to Ghana’s international credibility if the Bank of Ghana remains in a financially distressed position.
“This affects Ghana’s credibility. BoG has correspondent relationships with the Bank of England, the Federal Reserve, and the African Development Bank. If it continues to operate in a capital-deficient state, international institutions may lose confidence in our financial system,” he warned.
Dr. Atuahene also criticised the central bank for insisting that it is “policy solvent,” arguing that capital solvency is more critical in this situation.
“You can claim policy solvency all you want, but if you are capital insolvent, it means you cannot function properly. BoG has been making losses year after year. They made losses in 2023, and they are making losses in 2024. How long will this continue?” he questioned.
Source: Myjoyonline.com
