The Vice President, Dr. Mahamudu Bawumia has described the Minority as ignorant following the arguments they raised over the issuance of the $2.25billion 15 years domestic bond.
The Minority in Parliament has alleged that, Finance Minister, Ken Ofori-Atta sold the ninety five percent of Ghana’s recent 2.25 billion dollar bond to friends and cronies.
They have therefore called for a full scale investigation into the case since they believe it smells.
The Minority Spokesperson on Finance, Cassiel Ato Forson, claimed at a press conference on Tuesday that a non-executive director on the board of investment firm, Franklin Templeton that purchased majority of the bonds is also the Chairman of the Enterprise Group; a company closely aligned to the private interests of the Finance Minister, Ken Ofori-Atta.
But the Vice President who is attending the Word Bank/IMF spring meeting, in an interaction with the media said, “It shows a lack of understanding, the Minority have never understood this economy. It is amazing that people on that side who were actually in charge of managing the economy will be making such statements, it shows ignorance and I am so sad when I hear that from people who should know better,” the Vice President who had just finished a meeting with investors said.
“And so they need to understand, maybe they should read a little, that they need to understand what took place, we issued a cedi bond and there is no secrecy to the matter, it was very well invested in, the holders have invested many times in Ghana, the bonds that were in place when Seth Terkper issued them, they [same investors] bought them, 24 per cent interest rate, this time its 19 per cent, so we are doing even much better.”
“This is what politics has been reduced to, trying to say things that really have no basis. It’s basically rapped in ignorance and I’m a bit sad for Ghana, and for them because they are really demonstrating a lot of ignorance of the process of management of this economy and I think that is where we are.”
Dr Bawumia added that the issuance of the 15-year bond was part of government’s plans to use long dated papers to reduce the public debt.
“The strategy of re-profiling is just replacing shorter term debt with longer term debt, and more expensive debt with less expensive debt, and this is what we started doing a couple of weeks ago, and it is proving very successful and we hope to continue doing that. Ultimately, to be able to bring down your debt burden, there are two things you need to do, you need to grow your economy, when you grow your economy it expands, your revenues grow, GDP grows, your debt to GDP ratio also falls so the burden of the debt will also fall.”