CRITICAL POLICY ACTIONS OF THE JOHN DRAMANI
MAHAMA ADMINISTRATION
September to December 2012
INTRODUCTION
1. Mr. Chairman, my very good friend PV, distinguished
guests, our development partners, fellow Ghanaians representing
the private sector, civil society, and academia, my message to
you today is simple: Ghana, our motherland, is getting more
united, stronger, and we have come too far to turn back now.
2. Today is exactly 40 days, in traditional Ghanaian
computation, since the passing of our beloved President
Professor John Evans Atta-Mills, and in that tradition, 40 days
is the time to take stock and to announce the decisions that
have been made for the future. While we continue to keep the
memory of our dear president in our hearts and minds, the surest
way to immortalise him is to recommit ourselves to his agenda to
create a Better Ghana for all.
3. My task in the four months left of the unexpired term of
this administation is to ensure effective completion of the
agenda set by the Government of the Late President whom I had
the honor of serving as Vice President. The commitment to invest
in people, to build a strong economy, to develop infrastructure
and to ensure transparency and accountability in governance were
the building blocks of the Better Ghana Agenda and I remain
steadfast in pursuing that commitment. While this presentation
might appear lengthy, I wish to point out that this is not a
State of the Nation address and therefore not meant to comment
on every sector of national life. What I intend this to be is a
policy guide to the nation so that we can together fully
maximize our resources and energies towards consolidating the
gains that we have made over the last 4 years.
4. Among the priorities that were set for this final year of
the first term:
a. Consolidating our achievements in holding down inflation
and maintaining macro-economic stability;
b. Maintaining discipline in government expenditure so as to
avoid unbudgeted expenditure that can distort the economy;
c. Effectively implementing the single spine salary structure
for public services so that improved remuneration for our public
servants can lead to increased productivity in their
performance;
d. Stimulating growth in our agriculture and industry with a
view to generating jobs, especially for the youth of our
country;
e. Accelerating infrastructure development;
f. Ensuring wise utilization, in a transparent manner, of oil
revenues and revenues;
g. Ensuring proper governance of our other natural resources;
h. Ensuring local content as a cross-sectoral imperative.
I will also address a number of other subjects, specifically;
i. Social development, particularly health, education,
sanitation and social interventions;
j. Governance and anti corruption;
k. Peace, security, discipline and Election 2012;
l. Our relations with development partners; and
m. Foreign Policy.
A. MACRO-ECONOMIC STABILITY
5. We have made tremendous strides in bringing down the rate
of inflation to single digits; increased productivity and more
value-added in agriculture and improvements in road
infrastructure, especially in rural areas have meant more stable
prices of food with positive consequences for inflation.
However, we remain a substantially importing country, a
situation which has consequences for our foreign exchange
resources.
6. In the first half of this year we have had concerns about
the depreciation of the cedi. This has resulted from a
combination of factors. Last year we spent twice as much foreign
exchange on non-oil imports as the year before. This put
pressure on our reserves of foreign exchange as our import bill
continued rising. This must give us pause for thought. Globally,
the situation of currency volatilities led to the near-collapse
of the Eurozone; and affected the fiscal stability of most
emerging economies, including India.
7. Mr. Chairman, thankfully, with timely measures put in
place under the aegis of the Economic Advisory Council and the
Economic Management Team we have arrested the decline in the
value of the cedi and it is gradually stabilizing against major
foreign currencies. The measures that the Bank of Ghana has
instituted in respect of foreign capital movements are
legitimate, long-overdue exercise, and full compliance from all
financial institutions would establish a more stable and
predictable regime for the stability of the cedi.
8. I have instructed the Economic Management Team, to take
immediate steps to consolidate and sustain our achievements in
maintaining macro-economic stability by executing the following
without delay:
a. Continue to hold down inflation;
b. Continue to halt the depreciation of the cedi against the
major currencies; and
c. Maintain discipline in government expenditure so that we
do not incur unplanned expenses, especially in an election year.
9. In order to strengthen the functions of the Economic
Management Team, a formal cooperative mechanism will be
established in the next 3 weeks between the Ministry of Finance
and the Bank of Ghana in a manner that harmonizes the
implementation of fiscal and monetary policy and readily
addresses any bottlenecks.
10. In a recent assessment of other critical measures to be
adopted, I have directed renewed emphasis on the following
critical initiatives by various Government institutions:
a. Support for the Ghana Revenue Authority (GRA) in
implementing ongoing tax office and process reforms that aim to
broaden the tax base and collect our taxes efficiently and
fairly from taxpayers;
b. Completion by the MOFEP of the comprehensive database for
all MDA contracts to improve the management of central
government commitments (which is part of the ongoing structural
reform to establish an integrated budget and expenditure system
called GIFMIS to improve preparation of the Budget and Public
Accounts);
c. Completion of the inter-ministerial study of the formula
for utility and fuel pricing to allow for judicious balance
between cost recovery and profitability and subsidies for
vulnerable groups; 4
d. Improved coordination with Chief Executives and Boards of
Directors in utilizing the earmarked funds such as the District
Assembly Common Fund (DACF), the GETFund, and the National
Health Insurance Levy (NHIL); and
e. With the completion of the migration and payment of
arrears under the Single Spine Pay Policy (SSPP) by the end of
the year, I have directed the Minister of Finance to recommend
short and medium-term measures to restore the balance among
government expenditures on personal emoluments, goods and
services, and capital and infrastructure development that is
consonant with our middle income status.
f. These urgent actions are directives from the Office of the
President. They will have verifiable outcomes which will be
reported to my office on a monthly basis. Performance against
these will be verifiable.
11. Ladies and Gentlemen, let me now turn to some of the most
visible challenges that we have witnessed in the last year, so
that we can devote our remaining four months to establishing
decisive delivery on those issues.
B. GOVERNMENT EXPENDITURE MANAGEMENT
12. We are determined to break the cycle of over-spending,
especially in an election year. Strict instructions have already
gone out to all sectors against any unbudgeted expenditures. No
new projects are allowed to be undertaken without strict
adherence to the discipline of the national budget. Each sector
minister has to give an account of their compliance with this
directive. I am convening a Cabinet meeting next week to receive
briefings from each sector on this directive. On the basis of
these briefings, the Minister of Finance will also brief Cabinet
on the outlook for government expenditure over the remainder of
this year.
13. Steps such as the introduction of biometric processes to
identify all who are on the public payroll and to check fraud in
respect of these payrolls have also been undertaken and have
already begun to yield results. We are, therefore, close to
eliminating the age-old problem of
"ghost
names"
that inflated
public expenditure. The Minister of Finance and the Controller
and Account-General are required to ensure completion of the
biometric records of public servants throughout the country by
the end of the year. This might entail some inconvenience to
public sector employees in for of delayed payments and I crave
their indulgence so we can ensure successful completion of this
all important national exercise.
14. We recognize that expenditure controls that are
undertaken in an ad hoc manner sometimes rather escalate
the cost of projects and create financial problems for
contractors who have fulfilled their obligations but find
payments from the state slow in coming. This also creates
problems for the financial institutions who extend credit to the
contractors. We will, therefore, avoid these ad hoc
approaches. Contractors who have done their projects will be
duly paid without any further delay and I have instructed the
Minister of Finance to provide Cabinet with a detailed
presentation of any arrears owed to contactors this month and to
indicate the steps being taken to effect payments forthwith.
C. SINGLE SPINE SALARY STRUCTURE
15. We are committed to improving the conditions of service
for public servants in the country. We know the sacrifices that
our teachers, doctors, nurses make to educate our children and
take care of us when we fall ill. We also know the dedication of
our civil servants, of our policemen, of our soldiers, of all
our security services, of our Judicial Service and of our public
servants generally. Our government did not hesitate to implement
the single spine salary structure that was passed on from the
previous administration despite the limitations in resources.
With all the challenges, the implementation of the single spine
salary structure is almost complete and most of our public
servants are enjoying the benefits of improved remuneration.
16. I am directing the Fair Wages and Salaries Commission to
take the remaining steps towards completion of the single spine
salary structure by the end of this year. I ask our public
servants to appreciate that this is a major reform initiative
and that a few glitches have arisen for which we need the
patient understanding of all. All the concerns that pockets of
the public services have expressed regarding the exercise will
be duly addressed in the next few months.
17. As you well aware, a major part of our current fiscal
crises has been as a result of the doubling of our wage bill in
just 1 year. Ladies and gentlemen, please let us ask ourselves a
very sobering question. ARE WE GETTING VALUE FOR MONEY.
Government has kept faith with public servants. Every time we
are negotiating migration onto single-spine, workers threaten to
go on strike. However, when their wishes are granted, most of
them go back to their old ways. Ordinary citizens are now paying
over 6 billion cedis to public servants, but they continue to be
mistreated in hospitals; they continue to get poor or NO water
supply services; when they try to access services in the
Ministries, they are met with a very hostile, unfriendly and
unkind services outlook. The service attitude of the Police has
improved, but we all know that drivers are still paying bribes
on the roads, and they in turn behave with impunity, knowing an
arrest will go nowhere. My point is, increased pay is supposed
to come with increased and better productivity that will satisfy
citizens. Let me say emphatically to our public servants and
public services, the public does not believe that it is
receiving value for the money it uses to remunerate us. The
positions we occupy are meant to serve the public and not to
Lord it over them. That is why we are called PUBLIC SERVANTS.
18. I am
directing the Public Service Commission to furnish me with a
revised framework for performance in all public service
institutions, which must be completed at least quarterly. I am
also inviting organized civil society to get involved in
assessing how our public services
–
health, education, water
supply, sanitation services, electricity and services from
Ministry are responding to citizens aspirations. Government will
partner with you in this, because, you the citizens are the ones
who must receive more value for the increased wages you are
paying.
D. AGRICULTURE
19. The Youth in Agriculture Program (YAP) was introduced by
government to attract the youth into agriculture, increase
productivity and production in agriculture and create job for
the youth. The program entails encouraging the youth to form
groups to gain support from government by way of mechanized
services; access to improved seeds and agricultural inputs; as
well as extension services. So far a significant number of youth
has benefitted from the program.
20. More significant, there is a strong emergence of public
private partnerships in agriculture. Agricultural investors,
both domestic and international, are creating farms that operate
an out-grower system where thousands of small holders are
gaining access to technology and markets, through nucleus
farmers. This is happening in pineapple production, mangoes and
other food crops. I have directed that more resources be
channelled to accelerate this process. We have just concluded a
multi-million dollar Commercial Agriculture facility involving
MoFA and multiple donors. I have directed that this initiative
move into high-gear immediately.
21. In all of these, whether youth or commercial agriculture,
the implementation of the program so far has shown that land
acquisition is becoming a bottleneck for expanded access to the
program. I am therefore instructing the Minister of Food and
Agriculture to review the program for a possible inclusion of
delivery of serviced agricultural plots for onward leasing to
interested youth and commercial farmers who are willing to go
into agriculture.
22. The Savannah Accelerated Development Authority (SADA)
also has agriculture as a key part of its agenda. In the spirit
of Public-Private Partnership, SADA has facilitated partnerships
to establish three agro processing factories-a sheanut
processing factory at Buipe, a rice mill at Nyankpala near
Tamale and a vegetable oil mill at Tamale. PBC is currently
raising the capital to begin shea nut purchases to feed the
factory. This will benefit tens of thousands of poor women in
the savannah zone of this country. Out growers are being
registered to meet the requirements of these factories. Last
year, SADA supported 6,000 farm families and another 16,000
farmers this year with farm inputs, including fertilizers,
improved seeds and provided 100 tractors for land preparation
services. SADA through its greening the Northern Savannah
ecological zone agenda, has partnered with a private sector
group to grow and nurture 5 million trees in the next 12 months.
E. INDUSTRY AND PRIVATE SECTOR DEVELOPMENT
23. This is the area of my utmost passion. Our country has
consolidated some of our economic fundamentals, and we are at
the threshold of transition from LMI to middle-income status.
This phase has been largely led by Government. The next phase of
transformation must be led by the private sector.
24. In this connection, I am charging the National
Development Planning Commission (NDPC) and the Ministry of Trade
and Industry to extract from the Ghana Shared Growth and
Development Agenda (GSGDA) and the trade statistics (especially
on imports), all potential manufacturing activities and review
same with the respective ministries, the Association of Ghana
Industries and the Private Enterprise Foundation. Thereafter, a
transparent program will be instituted to market the
manufacturing opportunities to Ghanaian businesses, who will be
encouraged to adopt and implement them with the active
facilitation and support of Government. I expect the
identification of the potential manufacturing activities to be
completed this week and for the discussions with industry to
commence next week.
25. I am ready, here and now, to walk the talk. I am inviting
our private sector partners to join me next week in inaugurating
the Private Sector Advisory Council, a body that will serve as
the apex of all strategic issues affecting private sector
development. As chair of the Council, I will have direct
oversight for engaging the capacities of the private sector. The
days of public sector bureaucracy stifling private sector
efforts must be over. Within the framework of the Private Sector
Advisory Council, I will institute a hot-line system, which will
receive complaints of bureaucratic impediments to accelerated
private sector operations, for both domestic and foreign
investors. These complains will be investigated and actions
taken forthwith.
26. I have further directed the Minister of Trade and
Industry to accelerate the implementation of the Private Sector
Development Strategy II, in a manner that the instrumental role
of the private sector in our transition to middle-income status
is realised more speedily.
27. I am announcing the creation of a Trade Enforcement Unit
that will be charged with investigating unfair trading practices
in this country. There will be more inspections to prevent
counterfeit or unsafe goods from crossing our borders.
Government will make sure that no foreign company has an undue
advantage over Ghanaian manufacturing when it comes to accessing
financing or new markets.
F. JOB CREATION
28. Government continues to invest in skills development to
bring structure to our largely informal sector and reduce the
number of our young men and women parading the streets selling
everything and nothing. Job creation is one of the critical
pillars of our agenda for a Better Ghana and we have made some
significant progress. Over the last couple of years, we have
created thousands of jobs through projects such as the National
Youth Employment Programme (NYEP) and the Local Enterprise and
Skills Development Program (LESDEP). A special government
initiative under SADA has created over 5000 jobs in the last few
weeks alone. Even as we seek more job opportunities for
Ghanaians in the oil and gas industry as well as in mining,
there is no doubt that agriculture and industry remain key areas
for employment generation.
29. But this is not enough. I am directing the Ministry of
Employment and Social Welfare to provide my office with a
comprehensive list of all job-creation initiatives that are
scattered all over the government system. We will begin the
process of harmonizing all these into a more coherent,
predictable and verifiable agency for job creation. In the
interim I have asked the Minister of Finance to release monies
to pay the arrears of youth currently engaged in the NYEP.
G. ACCELERATING INFRASTRUCTURE DEVELOPMENT
30. We have a huge infrastructure deficit in our country.
This serves as a brake on our national development and we must
aggressively continue improving our infrastructure and find the
resources needed for this. We succeeded in obtaining the
US$3billion facility from China which is helping us to rebuild
railroad infrastructure in the Western Region as well as build
new infrastructure for oil and gas. In sourcing and applying all
such loan facilities we will, on behalf of Ghana, rigorously
seek value for money and police the implementation of projects
so that high quality of work is obtained by the country.
30a. By accelerating GDP growth and nurturing expansion
of our SME sector, we expect the economy to throw up hundreds of
thousands of sustainable jobs over the next few years.
31. Realistically though, not much can be done about
transforming the infrastructural base of the country within the
next 4 months. To have any chances of success, any new policy
options must be founded on a detailed analysis of the state of
affairs including a critical evaluation of policies and
programmes instituted by governments over the past 2 -3 decades
to address the problem.
32. On the broader infrastructure front, the focus over the
next 4 months will be to identify priority projects amongst all
ongoing projects and bring the weight of the Presidency to bear
on managing an agreed plan to guarantee that percentage
completion is visibly increased over the period. Beyond
admonishing contractors to deliver works on roads and other
ongoing infrastructural projects that lead to delays and
inconvenience to the citizenry, I have instructed the relevant
ministries to secure additional capacities for strictly
monitoring timelines for completion of various stages of the
projects and within budget. These include the Accra-Suhum road,
the Tetteh Quarshie-Adenta road; the
Tema-Asikuma-Hohoe-Jasikan-Yendi-Nalerigu-Kulungugu road; the
Bamboi-Bole-Wa-Hamile road; Fufulso-Sawla road and the eastern
corridor road through. I am directing the Minister in charge of
roads to manage an agreed plan to guarantee that percentage
completion is visibly increased over the period. Other critical
roads that have been bottlenecks and created extreme
inconvenience would be tackled. The ministry of roads has
compiled a list of such roads in the budget and the Ministry of
Finance has released money to for.
33. We have seen how the transformation of our
telecommunications infrastructure has been of benefit to our
lives. There is still work to be done to improve quality in this
sector and to ensure that there is good service provided to
customers consistently.
34. Government will also play its part. I have instructed the
Minister for Communications to expedite work on completing the
eastern corridor rural fibre optic backbone link to provide
national data center facilities that connect all public
institutions to a single shared communication and computing
infrastructure and the installation of a reliable energy
efficient digital terrestrial television system.
35. We face challenges with our electricity distribution
infrastructure as the pace of replacing age-old infrastructure
has not been at par with our growing needs as a nation and we
must increase the efforts to make the needed investments towards
this. Regrettably also, supply of natural gas from Nigeria has
not been regular, giving rise to shortages in our generation
capacity. Recently a disruption in the WAGP has knocked out
320MW of our generating capacity.
36. This has led to a resumption of load shedding. Government
has taken immediate steps to address the load-shedding
challenge. I have directed that an Inter-Ministerial committee
chaired by the Minister of Energy must, with immediate effect,
engage the critical consumers of electricity, in particular,
health and water supply facilities and key private industry
establishments, to implement measures that will ensure that the
nation ’s
strategic services and industry are not unduly disrupted.
37. I am further directing the Public Utilities Regulatory
Authority (PURC) to strengthen their citizen complaints unit,
and publish what measures they have taken when citizens complain
of poor service from Electricity Corporation and Water Supply
service providers.
38. While we are assured that there would be resumption of
supply from WAGP in next few weeks, we will redouble our efforts
to make up the shortfall ourselves by speeding up projects we
have been working on. We have galvanized every effort to
increase our generating capacity, in order that the minimum
demand by our industries is met. By the end of October, we will
have an additional 300 megawatts of electricity production that
will come online for distribution, and this should greatly
reduce the inconvenience of load-shedding.
39. We have over the last 4 years accelerated our National
Electrification Programme. At least 1608 communities have been
connected and 5400 are at various stages of connection. A major
constraint has been availability of meters. I have directed
immediate release of funds to acquire meters for completion of
these projects.
40. I am further directing the Public Utilities Regulatory
Authority (PURC) to strengthen their citizen complaints unit,
and publish what measures they have taken when citizens complain
of poor service from Electricity Corporation and Water Supply
service providers.
H. OIL AND GAS
41. Our country has begun to produce and export significant
quantities of oil from the Jubilee field. There is also now a
pipeline of oil and gas development projects from new
discoveries in the past three and a half years. In addition to
the Jubilee field, another eleven oil and gas discoveries have
been made since President Mills assumed office. The last
discovery was made less than a week before the passing away of
President Mills. These include discoveries by three other groups
of companies apart from the group involved in the Jubilee field.
There is already much progress in appraising these new
discoveries and it is anticipated that development of at least
one of them will begin before the end of the year. Additionally,
further exploration activities are ongoing and new petroleum
agreements are also about to be entered into. The prospects that
Ghana has for even more oil production in the years ahead are
extremely good. All this gives us a long-term horizon for
securing revenues from these resources and planning our future
with realistic expectations.
42. Let me stress that we do not see the prospects in this
sector just in terms of revenues from oil exports. The natural
gas resources that are associated with oil production are also
extremely important for us. These are capable of becoming a fuel
for transforming our economy by, for instance, reducing the cost
of our power generation which has, unfortunately, become
increasingly dependent on expensive imports of crude oil. We
will address squarely the challenges that we have faced in
respect of the gas project and ensure that gas from the Jubilee
field begins to be monetized within the coming year. Once the
gas processing plant is operational it will also enable us
derive liquefied petroleum gas (LGP) from the Jubilee field to
help avert the shortages of liquefied petroleum gas that we have
been experiencing. Natural gas from our own field will also then
become reliably available to fuel the thermal plants at Aboadze
and Tema.
43. Our disappointments over the reliability of gas supply
through the West African gas pipeline must not make us skeptical
about the value of regional co-operation projects of this
nature. We will initiate a dialogue with the Government of
Nigeria as well as the Governments of Togo and Benin, who are
all participants in this important initiative of regional
co-operation to address issues about the performance of the West
African gas pipeline and how it can contribute to greater
security of energy supply throughout our sub-region.
44. Another major thrust of our policy in respect of the oil
and gas industry is ensuring integration into our national
economy. This is why local content, including local job
creation, is critical for us. We are going to hold companies to
compliance with provisions in the agreements that they have
entered into that require them to employ Ghanaians to the
maximum extent possible in all aspects of their operations. Let
me be quite blunt. We will not sit back and have qualified
Ghanaians unemployed while companies bring in expatriates to
fill positions that Ghanaians are perfectly capable of
occupying. The targets that were set for employment of Ghanaians
as well as their training in the Development Plan approved for
the Jubilee field in July 2009 have to be adhered to. The
Minister of Energy is communicating with the companies in
respect of compliance with commitments they made which apply to
all their subcontractors as well. Companies must go out of their
way to look for qualified Ghanaians to employ. Government is
committed to facilitating this process of identifying qualified
Ghanaians for engagement at all levels of oil and gas
operations.
45. We expect that as further Development Plans for bringing
the other fields into production are prepared, even higher
levels of local employment and training will be provided for
than there were in the Development Plan of the Jubilee field.
Again, there already are provisions in our law and in the
agreements with our partners for preference to be given to local
goods and services in the procurement of what is needed for the
oil and gas operations being undertaken in Ghana. Procurement
practices of companies must explicitly reflect this local
content preference. Based again on lessons from the Jubilee
field development and the greater familiarity that companies
investing in this sector must increasingly now have with
available local capacity in manufacturing and provision of
services, future field developments must have significantly more
local content.
46. Ghanaian industrialists and entrepreneurs must also be
proactive in positioning themselves for supplying the goods and
services required by the oil industry. Government has engaged
local industry in an extensive dialogue and is initiating
capacity strengthening initiatives that will ensure greater
preparedness of local industry for the requirements of the oil
and gas sector.
47. We know that enormous amounts of risk capital are
deployed in oil and gas ventures and investors who take such
risks are entitled to their fair share of the results of
success. But we also expect that these investors will pay the
country its due as the resource owner. We expect accuracy and
transparency in their accounting to us and we will ensure that
they pay promptly and honestly various taxes they are required
to pay to the country, whether corporate income tax or capital
gains tax when they divest of their interest and obtain huge
capital gains. Our national institutions, including the revenue
agencies, will be given the necessary technical support to play
their roles towards this end and we trust that our investor
partners will readily comply with our laws.
48. We are paying particular attention to strengthening our
national institutions so that we are not simply overwhelmed by
powerful foreign companies. We do not share the view that some
appear to have that our partnership with foreign partners in
this sector should make us simply depend on their expertise and
financial capacity while our national institutions are pushed
back into a passive or secondary role. Experiences all over the
world, whether in Brazil or Norway, whether in Malaysia or
Qatar, whether in Trinidad and Tobago or in China - the examples
are too numerous to mention individually -show clearly the vital
role that strong national institutions must play if we are to
obtain the expected benefits of oil and gas production for
Ghana.
49. Through the Petroleum Revenue Management Act 2011 (Act
815) and the establishment of the Public Interest and
Accountability Committee we are seeking to institutionalise
transparency and prudent management of resources from our oil
revenues. We must institute a culture of rigorous adherence to
the legislation and to best practices for ensuring that oil
provides real and enduring benefits for us and future
generations. We also intend to support the Public Interest and
Accountability Committee with national resources so that it can
operate effectively and independently of vested interests.
I. LOCAL CONTENT-A CROSS-SECTORAL IMPERATIVE
50. Across all the sectors of our economy, we will put in
place monitoring mechanism to ensure local content and give
priority to Ghanaians in job opportunities and procurement
practices. Government's own procurement processes must set an
example of local content preferences. When we look at major
sector of investment in our country, such as in banking,
industry, and the mineral sector we see large amounts of
investments which must target local job creation as well as the
development of local capacity. It is in the longterm interest of
investors that there should be an increasing amount of local
participation in all their investment activities. We will
therefore engage with investors through GIPC, the relevant
sector ministries and other institutions in setting and
monitoring targets for achieving these increasing levels of
Ghanaian participation.
L. SOCIAL DEVELOPMENT
51. I have so far outlined certain priorities of the Better
Ghana agenda which will engage our full attention in these next
few months. Obviously, we will maintain the current momentum of
investment in the educational and health sectors and complete
the projects to eliminate schools under trees and provide health
facilities nationwide. The expansion of the school feeding
programme will also be accelerated.
52. The commitment to invest in people, to build a strong
economy, to develop infrastructure and to ensure transparency
and accountability in governance were the building blocks of the
Better Ghana Agenda and we remain steadfast in pursuing that
commitment.
53. Based on current forecasts and prices, oil revenues are
not expected to be sufficient to fully replace current ODA
levels. Ghana has secured additional external resources which is
being applied to support the role of key sector programmes,
especially for the social sectors. My understanding is that the
implementation of some of these critical programmes in health,
education, water supply and sanitation are stalled. I have
directed the Ministry of Finance to engage our Development
Partners in the next 2 weeks to re-prioritize the execution of
critical projects, and release the counterpart funds needed for
these to proceed in the next 3 months. I have further instructed
the Economic Management Team to ensure prudent utilization and
in a transparent manner of the additional resources from oil
resources.
54. A large share of the population remains poor, and has
become increasingly concentrated in the northern parts of the
country
–
the Northern Savannah,
where no significant poverty reduction has been recorded since
2000.
J. SPECIAL DEVELOPMENT AUTHORITIES
55. As we move towards a middle-income status, key areas of
our economy remain poor and are far less integrated into the
growth spurs that we are enjoying. The northern savannah zone is
a typical one. The Western corridor, where a lot of our wealth
in natural resources is created, also lacks significant
infrastructure and services that will allow these extractions to
be sustainable.
56. Ghana is also lagging behind in the attainment of several
important MDGs, such as child and maternal mortality, as well as
sanitation. Gender disparities, which mostly manifest themselves
in unequal access to economic opportunities and high maternal
mortality rates, remain high. The cost of environmental
degradation (water, soils, forests, fisheries) and the effect
that climate-change has on exacerbating poverty in the country
are also significant. Combined with the rapid depletion of
mineral resources, these could undermine Ghana ’s
prospects of sustainable development unless the country manages
to better protect its environment and convert the remaining part
of its depleted natural resources into social, human and
infrastructure capital, converting adversity to opportunities
for sustained growth.
57. SADA is our first example of how development authorities
can produce real results for our people. I will continue to
support the SADA initiative and ensure the initiative provides
the impetus for accelerated development.
58. Based on the example of SADA, I have directed a team in
my office and the NDPC to work closely with the two Regional
Coordinating Councils and relevant stakeholders towards
establishing the Western Corridor Development Authority,
comprising Western and Central regions. By the close of this
year, a concept for the Authority will be finalised through a
consultative mechanism.
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HEALTH
59. Under health, the key concerns are access to health
services to the poorest and enhancing health quality. There are
challenges in delivery of quality health care arising out of
some policy, operating systems and logistics challenges. There
are too many avoidable deaths in this country. A small round
table discussion with the right group of people should identify
what is to be done in the short, medium and long term. Although
there is not much that can actually be achieved in 4 months,
critical actions taken today should communicate to everybody
what is likely to be achieved in the medium term.
60. I have instructed the Minister for Health to coordinate
with the various departments and agencies in the health sector
to ensure the following:
a. That the available medical personnel arrive at post on
time and deliver qualitative services to Ghanaians, treating
everyone with dignity and respect;
b. That efforts be made to speed ongoing projects to improve
critical infrastructure and logistical constraints that our
health personnel face in their efforts to deliver quality
healthcare services to Ghanaians;
c. That mechanisms in place for the investigation of the
death of persons who die in our health posts under suspicious
circumstances are addressed;
d. Evaluate and determine the adequacy of the cost
containment strategies of the National Health Insurance
Authority (NHIA);
e. Present to me this month, a list of additional sources of
funding for the National Health Insurance Scheme (NHIS);
f. Hasten preparations towards the nationwide rollout of the
capitation programme of the NHIS;
g. Engage critical stakeholders for an open consideration of
options for the long term sustainability of the NHIS, including
a discussion of the One Time Premium policy; and
h. Commence, in this quarter, processes towards the issuance
of NHIA Identity cards, based on a biometric database.
Education
61. Ghana cannot eradicate poverty or guarantee a sustained
contribution of a large proportion of the Ghanaian population to
the growth and development of the economy if over 33% of our
populace cannot read and write. It is my vision in the next 10
years, through a carefully crafted strategy, for every child of
school going age to have an education irrespective of where they
live in the country and whether their parents are well to do or
not. This is the only way that we can guarantee that most of
Ghana ’s
human capital in the next 15 years would be better equipped to
play a key role in the growth and development of the country.
62. A preliminary assessment has shown that the challenges
facing the educational sector can broadly be categorized into:
falling standards; insufficient stock of high standard
facilities for teacher training and inadequate numbers of
quality trained teachers; funding of education at the tertiary
levels; successful definition and implementation of a strategy
to systematically increase facilities at all levels in line with
the demands of population growth, amongst others. We know the
problems, and the urgent challenge is the delivery of what we
have planned, for which resources have been allocated.
63. Ladies and gentlemen, let me be clear in my vision. I
believe, as does most Ghanaians, that education is a right, and
must be free. Millions of Ghanaians, especially from deprived
families got the benefit of fee-free education during the first
Republic and, today, they are contributing meaningfully to the
development of this nation. The modalities of expressing this
shared-national vision of free education must first, ensure that
we improve efficiencies and grant access to those who are in the
system. As we speak, we have an huge un-fulfilled back-long of
students who need to move from basic to tertiary education; and
improving standards at the basic level significantly.
64. Our argument is not about free secondary education. That
vision has already been captured by the drafters of our 1992
Constitution. What the discussion should be is what is practical
and pragmatic at this stage of our development. We have already
improved access at the basic level, to the point where Ghana has
virtually achieved targets for primary enrollment under the MDGs.
My plan is to accelerate access at the basic and tertiary level,
by ensuring that we build more schools, improve quality, teacher
training and the facilities that promote healthy learning.
65. I have instructed the Minister of Education and the
Minister for Finance to quickly review all outstanding payments
to educational institutions and to begin making those payments
by the close of next week. This will allow our children to
resume school shortly, and for all outstanding commitments in
our educational plans to be fully executed.
Water Supply
66. Coverage of rural water supply is improving considerably,
but urban water supply production and distribution continues to
be a management challenge. Citizens are already paying
considerable amounts for potable water, including patronizing
very expensive
"pure
water"
options. Poor rural
residents, however, do not even have sufficient access or the
resources to patronize these potable water sources. The
coalition of NGOs in water has made good recommendations to
address this situation.
67. Flowing from the above, I have directed the Minister for
Water Resources, Works and Housing, the Ghana Water Company, and
the Community Water and Sanitation Agency to, within the next 3
weeks, engage the non-governmental actors and private sector
operators to provide an immediate solution to this challenge. I
await the results of their deliberations for immediate actions.
Sanitation
68. Sanitation
–
solid waste, liquid waste,
environmental sanitation and hygiene have been linked to water
supply, both at the urban and rural levels. Yet, the science and
practice of sanitation is not necessarily associated with water
supply. This link between the two, both institutionally and
practically has led to poor delivery of sanitation. Furthermore,
Government policy has encouraged the decentralization of
sanitation delivery, a good policy, but poorly coordinated. The
institutional mechanism for sanitation delivery at the
decentralized levels has not been guided by decisive policy and
a strong institution.
69. By the close of next week, a National Sanitation
Taskforce, led by the Ministry of Local Government and Rural
Development (MLGRD), will roll out a national waste and
sanitation programme. The Ministry of Environment Science and
Technology, and representatives of the National Fire Service,
the Ghana Police Service and the Ghana Armed Forces as well as
waste management companies will be involved in the exercise.
Social Interventions
70. There are too many social protection policies run by
virtually every ministry. In the next few weeks we will agree on
protocols for consolidating these programmes, including LESDEP,
LEAP, the School Feeding Programme, the one laptop per child
policy, Free School uniform project, as the basis for a new
initiative for Ghana's Social Protection Program. This is to
enhance coordination, effectiveness and targeting, coalesce all
social protection programmes, and really improves people's
lives. The initiative will also monitor closely progress in
social protection, including measuring how many people get out
of poverty.
71. Ladies and Gentlemen, I would now like to turn my
attention to two very important subjects: 1. Corruption and 2.
Election 2012.
K. GOVERNANCE AND ANTICORRUPTION
72. The President of the Republic has a dual role: as leader
of a Government and leader of a Nation. As leader of the
Government I am announcing today the key policy initiatives that
will move this country forward. As leader of the Nation, I will,
in the remaining months to December 2012, work to galvanise the
unity of purpose that existed in our Nation when we were faced
with a national calamity in July this year. I will work to
transform that unity of purpose into both concrete and
expressive forms of inclusive governance. In the long-term,
inclusive governance must ensure that the phenomenon of "winner
takes all", which is the root cause of many of our governance
problems, is effectively moderated and drastically reformed.
73. In this regard, I am directing the Department of State
Protocol to immediately produce new protocols for the management
of national events to include roles for key officials of all
political parties and the awardees of national awards, no matter
their political coloration. Our President (the Chief Executive
of Ghana Incorporated) must also meet the leadership of
Political Parties on the opposite side of government at least
twice every calendar year to discuss matters of national
interest which can best be handled on an all party basis. As I
do not have the benefit of more than six months before the end
of my current term of office as President, I will in this month
wish to meet Political Party leaders at an ice-breaking meeting
and set the new arrangement into motion, hoping that it will be
continued by subsequent Presidents. I feel obliged to take the
policy of "father for all" enunciated by our immediate past
President, Prof John Evans Atta Mills, a step further.
74. My office has concluded the modalities for a Constitution
Review Implementation Committee to start work this week. I have
noted various expressions of public anxiety on aspects of the
Government White Paper on the CRC Report. These expressions are
being documented, and will be reviewed. In the meantime, the
implementation committee will proceed with some pertinent
actions that impinge of the very unity that I have pledged to
uphold. These include: the implementation of measures that will
reduce the phenomenon of "winner takes all" in our governance,
including granting, including a measure of de-concentration of
central government using the Regional Coordinating Councils; and
for reducing ethnicity, corruption and the over politicization
of national processes.
75. As President I am committed to running a transparent and
accountable government, devoid of corruption. My government will
ensure that the taxes of Ghanaians, donor funds and all
resources held in trust by us for the people of Ghana are used
judiciously and effectively in order to better the lot of the
ordinary Ghanaian. All forms of corruption and wastage of public
resources will be confronted by my Government; from the payment
of government monies to persons and institutions who do not
deserve them to the misuse of government assets by officials of
state. I need to immediately add that my government will not
shirk its legitimate responsibilities in contexts where the
private sector engages with government as a business partner.
76. Certain judicial processes against the government have
occasioned significant state resources having to be paid out to
those who have initiated those processes. Whist legitimate debts
of the State must be paid, it would appear that in some
instances payments have been made in circumstances that, were
all the facts known, should not have happened. This is a problem
that cuts across different administrations. I am directing the
Attorney-General to ensure that no payments on account of
judgment debts above a certain amount are made without clearance
from me.
77. Our safeguards in this respect include not only the
investigative machinery to look quickly and rigorously into any
report of corruption but also the Judiciary which must have
credibility in the eyes of all the citizenry and not be seen as
part of the problem. I am aware of pronouncements that the Chief
Justice has made in this regard and I am confident that all
members of such an esteemed institution will uphold their honor.
78. As President, I am absolutely committed to addressing
these aberrations in our national systems of payments. In this
regard I am instructing the Minister for Justice and
Attorney-General to take the following actions immediately:
a. Ensure that all monies paid to persons and institutions
who do not deserve them are retrieved through all legal means at
the disposal of the State;
b. Create channels for all those with genuine cases for
redress, in situations where they have dealt with government as
a business partner, to be able to petition government;
c. I will appoint a Sole Commissioner to thoroughly examine
the judgment debt and negotiated settlements conundrum and
recommend for immediate implementation, legislative and systems
remediation. The overall purpose should be to refashion and
systematise the procedures for negotiating, contracting,
executing, monitoring and resolving disputes involving business
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transactions where government is a party. In particular,
Ghanaian fora must be the primary venue for the resolution of
disputes over contracts that are performed in Ghana.
d. MOFEP and Attorney-General ’s
Department must continue to improve both preventive and
defensive methods for insulating government against these
losses, including judgment debts (however, we will not disrupt
the court processes or second-guess judges, the approach which
even some who profess belief in the rule of law appear to urge
government to adopt);
79. I am also instructing the Minister for Finance to
institute more stringent procurement, pre-audit and financial
due process requirements to complement the efforts of the
Ministry of Justice to stem the tide of mounting judgment debts
against government. The purpose of these policy proposals is to
provide a pragmatic framework for resolving the apparent
intractable issues of compulsory acquisitions and occupation of
lands and payment of the accumulated compensation and other
financial obligations relating thereto in the country to promote
fairness, equity, rational development and security of tenure to
land.
80. Paradoxically, under the Fourth Republican Constitution,
the management of both public and private lands has
disintegrated into near chaos. Efforts are currently being made
under the Land Administration Project to address these concerns.
Cabinet has also approved a number of proposals for streamlining
processes for the acquisition and disposal of public lands; the
payment of compensation to persons whose lands have been so
acquired; the return of public lands to the original owners in
situations where the lands are not used for public purposes; and
the resolution of transparency and conflict of interest
situations in the disposition of public lands. I am instructing
the Minister for Lands and Natural Resources to immediately
accelerate the implementation of these Cabinet decisions to show
results in the next few months. I am also instructing the
minister to submit proposals to me by next week to review
performance of the Lands institutions to inject greater
transparency in the lands subsector without delay.
81. Mr. Chairman, one of the unique aspects of our evolving
democracy is the prominence and effectiveness of organized civil
society. Transparency and accountability in Government are only
possible if members of civil society demand accountability and
government develops the capacity to respond. My administration
will ensure that these happen.
82. I took an oath of office on the 24th of July 2012 which
enjoins me to be single-minded in the pursuit of the national
interest. I intend to live by every word of that oath. I
recognize that corruption takes away from the collective and
benefits only a few. It leaves us all poorer because we need all
the resources that are available to undertake the development
projects that will benefit us all. We must be serious about
combating corruption at all levels of our national life. We will
strengthen the institutions that investigate issues of
corruption particularly among government officials. Corruption,
whatever the political colour it wears, is a canker that we must
root out. I intend to lead by example.
L. PEACE, SECURITY, DISCIPLINE AND ELECTION 2012
83. Fellow country women and men, the maintenance of the
internal and external security of the Nation is a prime area for
my administration in this period leading up to the December
elections. It is critical that we provide a safe and secure
environment for socio-economic activities to thrive, even as we
politic and vote. Life, limb and property must be safe and
everyone must feel secure as they go about their business.
84. Peace and security implicates not only the National
Security Council, the Ministry of Defence and the Ministry of
Interior, it implicates all other ministries. In this regard I
am instructing all Ministers to ensure that the security
dimensions of their various mandates are addressed forthwith and
that in particular they do not affect the conduct of peaceful
elections in December. The Ministry of Lands and Natural
Resources must address the security implications of the rising
phenomenon of galamseys, multiple sales of lands, and land
guards; the Ministry of Chieftaincy and Culture must work with
the National House of Chiefs to address community insecurity
arising from chieftaincy and ethnic conflicts; and the Ministry
of Interior must work to address the insecurity posed by
itinerant herdsmen. Whilst commending the National Peace Council
for its efforts at maintaining peace thus far, I will urge them
to proactively identity trouble spots ahead of the elections and
address any security concerns in those places through dialogue
and mediation. I will also soon be joining the National House of
Chiefs for a special meeting to have a conversation with them on
their vision for a united and prosperous Nation.
85. Fellow country women and men, let us all remember that
peace and security is our collective responsibility as
Ghanaians. The increasing indiscipline on our roads, which lead
to regrettable loss of lives and incapacitation must stop, and
law-abiding citizens must not be penalized for following road
and safety regulations. I have charged the Inspector-General of
Police to publicly outline a plan for the Police to rise up to
their responsibilities and enforce existing regulations without
fear or favor.
86. We are heading into elections at the end of the year and
no doubt there will soon be a resumption of campaigning after
the pause following the passing away of President Mills. Let me
express my appreciation and that of the widow and family of the
late President to all political parties and their leaders for
calling off campaign activities and exercising self-restraint
after the death of our beloved President. As campaigns resume I
want to emphasize the need for all of us to recognize that we
are one people, one nation with a common destiny. Our diversity
in political views and belonging to different parties should not
diminish our passion for the unity of Ghana and for the
wellbeing of all Ghanaians. Nor should different views lead us
to insult each other on the airwaves and in the various media.
The language that we read from Ghanaians in online comments on
different news items is often frankly very un-Ghanaian.
87. I am fully committed to moving this country further and
further away from the politics of vindictiveness and the winner
takes all mentality. The resources of our country are meant to
benefit us all not just to benefit people in my party. That is a
conviction I have that I will never abandon. If we approach
Election 2012 on this basis I am confident that Ghana will be
the winner, come December 2012. The elections at the end of the
year and the campaign process over the next few months should
again project brand Ghana as a shining star in the world. I
invite all our political leaders to rally for the nation, Ghana.
88. I will, in the coming weeks, carry this message to our
National House of Chiefs, to representatives of religious bodies
and all other cleavages that have central roles to play in
maintain unity among our people.
M. DEVELOPMENT PARTNERSHIP & EXTERNAL RELATIONS
89. Let me now turn to critical issues in Ghana ’s
foreign relations. Ghana’s
remarkable economic performance, social cohesion and democratic
achievements are un-paralleled, and these could not have been
achieved without the support of our development partners. Our
collective efforts have led to the establishment of a Compact to
leverage the benefits of development cooperation over the next
10 and ensure that Ghana becomes less aid-dependent in the next
5-10 years.
90. Our economic and governance achievements have made Ghana
a unique center of stability and peace in West Africa. This puts
Ghana in a position to continue the policy of assisting and
supporting our neighbours to overcome any conflicts, and
cooperate within ECOWAS to maximise the benefits a West African
union. At the same time, we are witnessing destabilizing
tendencies in a few countries. Ghana will maintain a strong
arbitration and compassionate role, granting refuge to any who
are legitimately seeking temporary abode due to humanitarian
conditions in their home country. However, we will not allow
this country to be used for any activities that may undermine
our own peace, and our good standing as a good neighbour.
91. As a mark of appreciation and respect to the Heads of
State, especially from all our neighbouring states, that joined
us to mourn our beloved President Mills last Friday, I intend to
pay a few visits shortly to our neighbours. I will seek
continued peace and friendship between each of our neighbours
and ourselves while expressing the gratitude of the nation and
of the widow and family of President Mills for the attendance of
the heads of state of all our neighbours at the funeral of
President Mills.
92. Touching tributes to President Mills were paid at the UN
General Assembly and I intend also to convey the gratitude of
our nation to the international community during the coming
session of the General Assembly. The stature of Ghana has been
rising in the international community as a result, among other
things, of the great esteem in which President Mills was held.
Earlier this year President Mills was in Addis Ababa for the
unveiling of the memorial for our First President, Osagyefo Dr.
Kwame Nkrumah. Ghana ’s
pioneering role in the formation of the OAU, now AU, is
well-known and respected. Preparations are currently underway
for the celebration next year of the fiftieth anniversary of
formation of the African Union. As a nation, it is imperative
that we make ourselves available to play our expected role in
this celebration. We will, therefore, be in active consultations
with the AU Secretariat in these next few months to ensure that
the sacrifices that the Ghanaian people made for the liberation
of the continent and for its projected unification are fully
acknowledged and reflected in these celebrations.
MY COMMITMENT TO DELIVERY
93. Let us make no mistake. The way we do business in
Government must change; Ministries, Departments and Agencies
need to change. Too often, our bureaucracy is slow, sometimes
appearing not to be responsive to citizen’s demands and needs.
Targets set are either too low, or when the ministries plan
these targets, they are not achieved. This is why I have already
instructed some of the key Ministers, in particular those
responsible for service delivery – health, education, water
supply and electricity, to provide my office with a delivery
plan for the commitments we are making today. I have accordingly
established a Delivery Unit in the Office of the President that
will guide the implementation of delivery and the review
performance on a bi-weekly basis.
CONCLUDING REMARKS
94. As I conclude my remarks, I would like to remind all of
us that Ghana is at a crossroads. We are well-poised for
tremendous leaps forward; our economy is moving in the right
direction and this is time to consolidate our gains and face the
challenges we have with a common resolve. We are commanding
international attention and much investor interest from all
corners of the world. Yet dangers also lurk round the corner,
especially if we do not conduct ourselves as a unified and
peace-loving nation in the months ahead leading to Election
2012. I am very confident of the capacity of Ghanaians to rise
to the occasion as we did these last few weeks. We will not just
have peaceful elections but we will also scale the heights and,
with God ’s
favour, make our nation great and strong as we sing in our
National Anthem.
95. Let us all individually and collectively as a nation
pledge to stand together in this forward move of our nation. We
have a common destiny and we must forge a united basis for
pursuing that destiny even as we acknowledge some diversity in
our quest for a Better Ghana.
THANK YOU AND GOD BLESS YOU.
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