1.4 METHODOLOGY

We have set out the main principles which guided the Committee’s approach to this assignment are. We have also borne in mind the stipulation in the 1992 Constitution which stated that Salaries, Allowances, Facilities and Privileges are not varied to the disadvantage of Political Office Holders.

We repeat here too as a reminder, the peculiar contractual and tenure arrangements of the delicate mixed basket of Office Holders covered by the mandate of the Committee. This is to acknowledge the wisdom inherent in the 1992 Constitution when it stipulated separate treatment for Article 71 Office Holders. The categories are as follows:

• Fixed Term (Limited and Unlimited): Some Article 71 Office Holders have limited terms. For example, The President’s term of office is constitutionally limited to a maximum of two four-year terms. Other Office Holders, such as Members of Parliament, can have unlimited terms of office, depending on the success or otherwise of their re-election bid every four years.

• Career Progression and Non-Career Progression: Certain positions have career track progression. For example, within the Judiciary, the possibility for progression exists for all staff, except for the Chief Justice. It follows then, that certain positions, such as Chief Justice, Chairperson and Members of Commission and Auditor-General’s, are terminal career offices without the possibility of progression.

• Full-Time: Except for certain Commissions described below, all the Article 71 Office Holders are Full-time Office Holders.

• Part-Time: Some Commissions, for example, the Media Commission, are made up of Part-Time members. The Council of State is a Part-Time institution.

• Hybrid: Some Commissions, such as the National Commission for Civic Education, National Media Commission and the Public Services Commission, have both Full-time and Part-time Members.

• Ephemeral: Ephemeral appointments are those appointments which can be terminated at any time, for example, a Minister who is not a Member of Parliament may become temporarily unemployed when his/her ministerial appointment is terminated by the President.

Within this context, the Committee:

• Reviewed Reports, which provided new insights and direction for addressing issues.
• Reviewed all previous or existing written submissions received from Article 71 Office Holders;
• Carried out research using the Internet among other things to obtain information on approaches used by other countries.
• Analyzed information received from stakeholders; and
• Reviewed International Best Practices.


1.5 KEY CONCEPTS AND RECOMMENDATIONS

In order to put this Second Phase Report in context, we reproduce below for ease of reference, a summary of the key concepts and recommendations which guided the Committee during the preparation of the First Phase Report; elements of which continue to remain relevant:

SALARY AND ALLOWANCES

(i) Separate Pay Structure

A discrete new pay structure for Article 71 Office Holders was recommended by the Committee, in accordance with the 1992 Constitution, which decouples the rest of the Public Service as comparator.

(ii) Consolidated and Monetised Salary

The concept of consolidation and monetisation of allowances was introduced to aggregate all Allowances and Salary Supplements, except for housing, as part of Salary. In addition to the Basic Salary, the Committee has also calculated allowances which should be consolidated and added to the Basic Salary. The sum total is to be known as the Consolidated Salary.

Consolidated Salary is all-inclusive of all allowances except for housing Allowance. The Committee has taken into account the Constitutional requirement that stipulates that “salaries, allowances and privileges of Article 71 Office Holders shall not be varied to their disadvantage.” For the avoidance of doubt, the salaries and allowances of all Article 71 Office Holders which have been assigned weights and consolidated are the following:

• Basic Salary
• Duty Allowance
• Special Allowance
• Utility Allowance
• Clothing Allowance
• Entertainment Allowance
• Vehicle Maintenance Allowance
• Fuel Allowance
• Domestic Staff (Driver)
• Commuted Mileage Allowance
• Domestic Staff
• Constituency Allowance

To compute the Consolidated Salary, multiply the Basic Salary by a factor of 5. For example, the monthly Consolidated Salary of a Member of Parliament for 2007/8 is ¢3,311 (i.e. ¢6.62 x 5).

The Gross Basic Salary for Article 71 Office Holders for 2006 and 2007/8 is shown in Annex B.

(iii) Housing Allowance

Office Holders, who by virtue of their offices must occupy Duty Post Accommodation, as well as those who prefer to avail themselves of this facility, should do so on the same terms of payment as currently exist. Those who opt not to occupy Duty Post Accommodation should receive a housing allowance.

(iv) Installation Grant

An Installation Grant should be paid to Members of the Executive and Legislature to enable them to settle in their jobs.

(v) Non-taxable Resettlement Grant

A Non-taxable Resettlement Grant should be paid to Members of the Executive and Legislature to facilitate their resettlement upon completion of their term of office.

(vi) Ex-Gratia Computation

Non-taxable Ex-gratia awards should continue to be provided to the following Article 71 Office Holders:

• Members of the Executive Branch,
• Legislature, and
• Council of State.

(vii) Monthly Deduction and Investment of Ex-Gratia Entitlements

Monthly Ex-Gratia earnings should be invested in trust for the beneficiaries. The accumulated funds from this investment could be used by the individual beneficiaries to serve as collateral for loans, or to defray outstanding loan amounts in respect of vehicles acquired by Members of Parliament through the mediation of the Parliamentary Service.

In the event that the implementation of this modality might not have been effected during the life of the 2005 Parliament due to administrative delays, the Committee recommends, as a one-off gesture, the State should absorb the outstanding balances of the car loans.

(viii) Acquisition of Motor Vehicle

Loan arrangements have been made with commercial banks for Members of the Executive, Legislature and Council of State to acquire their own vehicles.

(ix) Pension and Gratuity Computation Basis

Computation of pension benefits and gratuity award are to be based on the Consolidated Salary.


(x) Surviving Spouse Benefits

Pension benefits should be extended to the surviving Spouse of constitutionally elected Heads of State/Government.

1.5.1 FACILITIES AND PRIVILEGES

We set out below specific Recommendations in respect of Facilities and Privileges of Article 71 Office Holders:

(i) PENSION

The computation of the pension of a former Political Office Holder should be based on the prevailing Consolidated Salary of a sitting Office Holder of the same rank. The pension should be non-taxable.

President

In accordance with the 1992 Constitution, a former constitutionally elected President is entitled to an annual pension during retirement. This stipulation, which is enshrined in the Constitution of Ghana, is in line with best practices in most jurisdictions. For example, our research indicates that, since 1958, former Presidents of the United States receive annual pension; currently, they receive annual pension of $186,600. In Britain, the former Prime Minister, Tony Blair, receives, in addition to other allowances, annual pension of approximately ₤70,000.

The Committee recommends that the pension payable to a former President should be equal to the Consolidated Salary of a sitting President. It further recommends that, upon the demise of a former President, the surviving Spouse should receive emoluments equivalent to the emoluments of a sitting Minister.

Vice President

The Committee recommends an annual pension equivalent to 40% of the Consolidated Salary of a sitting Vice President, if the former Office Holder has completed a full four-year term in Office, and 60% of the Consolidated Salary upon completion of two or more consecutive terms in office. Upon the demise of a former Vice President, the surviving Spouse should receive emoluments equivalent to that of a Deputy Minister.

A former Vice President should be eligible for this pension only if he/she does not hold any other appointment remunerated from the Consolidated Fund.

Speaker of Parliament

The Committee recommends an annual pension, equivalent to 50% of the Consolidated Salary of a sitting Office Holder, if the former Office Holder served a full four-year term in office and 60% of the Consolidated Salary upon completion of two or more consecutive four-year terms in office. A former Speaker should be eligible to draw this pension only if he/she does not hold any other appointment remunerated from the Consolidated Fund.

Cabinet Minister, Minister of State, Deputy Minister and Member of Parliament

The Committee acknowledges the selfless dedication to duty that Cabinet Ministers and Members of Parliament are called upon to exhibit. In most cases, the demands of the Office interfere with pursuit of an alternative career path which might ultimately entitle the Office Holder to a pension at some stage. It has to be borne in mind also that many of these Office Holders begin serving the Nation at a young age. It is necessary, therefore, to find a solution to this problem for those spending a good deal of their working life serving the Nation as Cabinet Ministers and Members of Parliament.

While the 1992 Constitution does not specifically stipulate the payment of pension to these Office Holders, it is the view of the Committee nonetheless that these Office Holders deserve to receive some form of pension payment.

The Committee, therefore, recommends that the State should provide a pension to these categories, equivalent to:

• 20% of the Consolidated Salary of a sitting Office Holder, provided that the Office Holder has completed two consecutive four-year terms in office (i.e. 8 consecutive years in office) and,
• 40% of the Consolidated Salary of a sitting Office Holder upon completion of three or more consecutive four-year terms in office (i.e. 12 consecutive years in office).
A former Office Holder should be eligible draw this pension only if he/she does not hold any other appointment remunerated from the Consolidated Fund. An Office Holder must reach the age of 50 years in order to access this pension.

The Judiciary

The pension of a Justice of the Superior Court of Judicature, covered under Article 71, shall be as stipulated in the following Article 155 of the 1992 Constitution:
(1) Notwithstanding the provisions of this Chapter, a Justice of the Superior Court of Judicature who has attained the age of sixty years or above, shall, on retiring, in addition to any gratuity payable to him, be paid a pension equal to the salary payable for the time being to a Justice of the Superior Court from which he retired where
(a) he has served for ten continuous years or more as a Justice of the Superior Court of Judicature; or
(b) he has served for twenty years or more in the public service at least five continuous years of which were as a Justice of the Superior Court of Judicature; and upon retirement under this clause, he shall not hold any private office of profit or emolument whether directly or indirectly.
(2) For the avoidance of doubt, the pension paid to a person under clause (1) of this article shall be subject to the same changes and increases as the salary of a serving Justice of the Superior Court of Judicature.
(3) A Justice of the Superior Court of Judicature may, in lieu of retiring under clause (1) of this article, retire if he has attained the age prescribed as retiring age for public officers generally, and shall be paid retiring awards based on his total public service, including service as a Justice of the Superior Court of Judicature, but otherwise at the same rate as is, for the time being applicable to the public service generally.

Chairpersons/Commissioners of Councils and Commissions, and their Deputies

The 1992 Constitution establishes the relativity of terms and conditions of service to be enjoyed by Chairman/Commissioner and their Deputies in the under-listed institutions to be equivalent to those of the Justice of the Court of Appeal and the High Court, respectively. The interpretation of the Committee is that this linkage applies only to full time Chairman/Commissioner and their Deputies.

Accordingly, the Committee recommends that these full-time Office Holders should be entitled to pension, in line with the conditions of pension of the Judicial Service category to which they have relativity.

• Commission on Human Rights and Administrative Justice (CHRAJ)
• National Commission on Civic Education (NCCE)
• Electoral Commission (EC)
• Public Services Commission (PSC)
• Auditor General
• Full-time Member Public Services Commission

(ii) LUMP-SUM PAYMENT OF PART OF HOUSING ALLOWANCE

The arrangement of temporary accommodation for incoming MPs at the beginning of a new Parliamentary term has tended to put inordinate cost on the State. To overcome this problem, the Committee recommends as follows: that MPs who are not allocated Duty Post Accommodation should receive from the State, at the beginning of a new 4-Year Parliamentary Term, a lump-sum payment in advance equivalent to the 30% Housing Allowance entitlement for the first two years. This will enable them to make their own arrangements.


(iii) INSTITUTES/FOUNDATIONS FOR PRESIDENTIAL INITIATIVES

The Committee has concluded that there is no reason why former Presidents should cease to be active and constructively engaged after retirement. The statesmanship, wisdom, diplomacy and skills honed in the normal discharge of the onerous responsibilities of a President should not be lost to the Nation and humanity at large.

The Committee recommends that former Presidents should be assisted to establish Institutes or Foundations to champion or promotes programmes of choice. These institutes or Foundations should be independent of each other. This Institute might be associated with one of the tertiary institutions or a think tank, which might give technical and profession support during the nascent period.

Several former Presidents and Vice Presidents such as Bill Clinton, Jimmy Carter, Nelson Mandela and Al Gore have established similar initiatives. Below are few examples of such initiatives:

Bill Clinton (USA): Established the William Clinton Foundation and one of the seven initiatives of this Foundation is the Clinton Global Initiative, which is aimed at bringing together world leaders, university students and ordinary citizens who can identify and implement revolutionary solutions to global problems.

Jimmy Carter (USA): Established the Carter Center, an organisation committed to advancing human rights and ending what is termed “unnecessary human suffering.”

Al Gore (USA): Established the Alliance For Global Protection. This organisation attempts to stress the importance and urgency of adopting and implementing comprehensive solutions to the “man-made” climate crisis.

Nelson Mandela (SOUTH AFRICA): Established the Nelson Mandela Foundation to promote his vision, values and his work, with the goal to encourage dialogue among parties to solve critical social issues.

The Committee’s recommendation is to afford our former Presidents the opportunity to pursue similar initiatives. Former Presidents shall receive separate funding for their individual programmes.

(iv) CONSTITUENCY OFFICE FOR MEMBERS OF PARLIAMENT

MPs are representatives of Constituencies. Even as they are largely occupied by their duties in the House in Accra as legislators, it is necessary that they maintain contact with their Constituents, and be effective conduits for their needs and concerns. They must have a base at Constituency level therefore to facilitate discharge of this important function.

The Committee recommends that Members of Parliament be enabled to establish Constituency Offices, to be funded by the State. These Offices should, under no circumstances, be considered or used as political party offices; rather, they should be non-partisan and accessible to all Constituents, irrespective of party affiliation. The Committee recommends in this regard that the Electoral Commission should not admit these Offices as political party constituency offices.

We recommend to the next Emoluments Committee that this proposal should be considered for implementation.


1.6 OTHER KEY RECOMMENDATIONS

The Committee makes the following additional Recommendations in respect of Facilities and Privileges for Article 71 Office Holders.

1.6.0 THE EXECUTIVE

1.6.1 PRESIDENT

A) WHILE IN OFFICE

OFFICE ACCOMMODATION

Acknowledging that the duties of the President, which include Executive as well as Ceremonial functions usually extend beyond normal official working hours, the Committee recognizes that it is desirable that as much as possible both office and residential accommodation for the President be on the same premises. The standard of furnishing should be determined by State Protocol, bearing in mind, the status of the Office. We recommend that special facilities for the physically challenged be provided.

RESIDENTIAL ACCOMMODATION

The Committee has taken note of the fact that Flagstaff House has been upgraded and to a standard befitting the status and needs of a constitutionally elected Head of State, and is now known as Golden Jubilee House, and there should be no reason why a President should stay elsewhere. Since this has not been available up to now, we recommend that where the President has had to stay in his own private residence, adequate compensation, at the discretion of Parliament, should be paid to him as compensation. Regional Lodges should be remodeled to accommodate the President while on tour within the Country. All these Lodges should have adequate facilities appropriate for use by dignitaries who visit as guests of the State.

STAFF SUPPORT

• Appropriate number of staff for office, residence and Presidential lodges should be jointly determined by the State Protocol and the President.

SPOUSE SUPPORT

• Given the fact that more and more, Spouses of Presidents engage in official public business, playing an important role alongside the President, the Committee recommends that they be provided appropriately staffed offices, on the advice of the Head of Civil Service, at the expense of the State to facilitate this role.
• The Committee has taken note that currently, Spouses of serving Presidents and Vice President and Spouses of deceased former Heads of State and Vice Presidents are paid allowance equivalent to the emoluments of Deputy Ministers. The Committee recommends that this practice be continued, except that, taken into account the special position of the Spouses of a serving President, that payment should be equivalent to that of a Minister.

PERSONAL SECURITY

• Appropriate security measures should be provided by the State. This should be assured as well during Presidential overseas trips.

TRANSPORTATION

• Adequate and appropriate fleet of vehicles to facilitate movement. Vehicles to be fully maintained, comprehensively insured, fuelled and chauffeur driven.

OVERSEAS AND LOCAL OFFICIAL BUSINESS TRAVEL

• First Class airline ticket
• 5-Star Hotel Accommodation
• Appropriate protocol courtesies to be arranged by the Ghana Mission at the destination.

MEDICAL AND DENTAL SERVICES AND INSURANCE

• Medical and Dental services for the President, Spouse and children who are less than 21 years of age.
• Membership at health (keep-fit) club.
• Life and Accident Insurance coverage.
• Emergency medical facilities and staff should be provided at all times.

MATERNITY/PATERNITY LEAVE

• In accordance with Government rules and regulations.

B) RETIREMENT FACILITIES AND PRIVILEGES

• Fully furnished residence in the Nation’s Capital with provision of office facilities and guest accommodation, to be maintained by State Protocol. The residence should not revert to the State in the event of the demise of the President, in order not to destabilize the family; this is in line with best practices.

The quality of accommodation should be of a standard befitting a retired Head of State who might be called upon to receive and entertain the network of dignitaries, including Heads of State, which would have been cultivated during the period in Office. The standard of accommodation should be determined in consultation with State Protocol. A model design is attached to this Report.

• Out-of-capital residence at a location of former President’s choice, which should also not revert to the State in the event of the demise of the former President, for the same reason.
• Adequate residential support staff for residences, in and out of the capital, to be provided by State.

• Office facility, fully equipped furnished and staffed with five professionals and adequate secretarial support, within the Nation’s capital at State expense, at a location to be determined in consultation with the former President.

• Six fully maintained, comprehensively insured, fueled and chauffeur-driven vehicles; vehicles to be replaced every four years. Vehicles should be three saloon cars, two cross-country vehicles and one all-purpose vehicle.

• Travel in congested traffic should be facilitated appropriately with police escort, bearing in mind security considerations.

• Overseas travel once a year, with a maximum duration of 45 days overseas travel, for former Presidents and Spouses. A former President who has served two consecutive terms should be entitled to a period of 60 days overseas travel, taking into account the longevity of service and accompanying stress, given the demands of the office.

• Three professional and personal assistants and adequate security should accompany a former President on all overseas travel, at the expense of the State. This is in line with best practice.
• Medical and Dental services at the expense of the State.

• Adequate 24-hour security service should be provided at all times.

• Entitlement to Ghana Diplomatic Passport, and diplomatic courtesies for former President and Spouse.

• Entertainment: Adequate provision by State Protocol.

• Non-taxable Ex-gratia Award: Equivalent to 12 months Consolidated Salary for each full year of service or pro rata. Where the President has served for a second consecutive term, an additional Non-taxable Resettlement Grant of 6 months of Consolidated Salary for each full year of service or pro rata be paid together with the Non-taxable Ex-gratia of 12 months of Consolidated Salary for each year served.

• Non-taxable Pension: As stated on page 20 of this Report.

Establishment of Independent Institutes/Foundations

As we have stated, the Committee acknowledges that former Presidents should be put in a position to use the experience which they would have garnered during their time in Office. This would also have the advantage of mitigating withdrawal pangs after a life of prominence and importance.

In addition to mobilizing resources from the many international Development Partners who have expressed the willingness to support such a cause in promotion of good governance and democracy, the Committee recommends that the State should provide seed money, equivalent to one million US dollars as an endowment to launch this Project. This Institute might be associated with GIMPA, one of the tertiary institutions or a think tank, which might give technical and professional support during the nascent period.

1.6.2 VICE PRESIDENT

The State should provide the following Facilities and Privileges:

A) WHILE IN OFFICE

OFFICE ACCOMMODATION

• Fully equipped, staffed and secured office accommodation.
• Special facilities for the physically challenged.

RESIDENTIAL ACCOMMODATION

• Fully furnished, maintained and adequately staffed official residence; with facilities for guests.
• Residential office, to be fully equipped and staffed.
• Recreational and keep-fit facility in residence, where possible. Alternatively, free membership at health (keep-fit) facilities. The State should pay membership fees for Executive health club, if the Vice President wishes to avail himself of such facilities.
• Special facilities for the physically challenged.

STAFF SUPPORT

• Appropriate number of staff for office and residence should be jointly determined by the State Protocol and the Vice President.

PERSONAL SECURITY

• Appropriate security measures should be maintained by the State. This facility should be available to the Vice President during overseas trips.

TRANSPORTATION

• Adequate and appropriate fleet of vehicles to facilitate movement. Vehicles to be fully maintained, comprehensively insured, fuelled and chauffeur driven.

OVERSEAS AND LOCAL TRAVEL FOR OFFICIAL BUSINESS

• First Class airline ticket
• 5-Star Hotel Accommodation
• Appropriate protocol courtesies to be arranged by the Ghana Mission at the destination.

MEDICAL AND DENTAL SERVICES AND INSURANCE

• Medical and Dental services for the Vice President, Spouse and children who are less than 21 years of age.
• Membership at health (keep-fit) facilities. The State should pay membership fees for Executive health club, if the Vice President wishes to avail himself of such facilities.
• Personal and Accident Insurance coverage.

MATERNITY/PATERNITY LEAVE

• In accordance with government rules and regulations.

B) RETIREMENT FACILITIES AND PRIVILEGES

• Medical and Dental services (same as if in office).

• Adequate security at all times, including travel abroad.

• Three fully maintained, comprehensively insured, fuelled and chauffeur-driven vehicle, to be replaced every four years. The State should provide two saloon cars and one all purpose vehicle.

• Non-taxable Ex-gratia: Equivalent to 8 months Consolidated Salary for each full year of service or pro rata. Where the Vice President has served two consecutive terms, the Non-taxable Ex-gratia for the second term will be equivalent to 12 months Consolidated Salary for each full year of service or pro rata.

• Non-taxable Resettlement Grant: Equivalent to 4 months non-taxable Consolidated Salary, for each year served. A Vice President who served two consecutive four-year terms shall receive 6 months of Consolidated Salary for each year served.

• Non-taxable Pension: As stated on page 20 of this Report.

• For Vice President who has served for a second consecutive term in office, the Committee recommends that the State provide a free out-of-capital chalet at a location of the Vice President’s choice.

1.6.3 CABINET MINISTER / MINISTER OF STATE / REGIONAL MINISTER / DEPUTY MINISTER

The State should provide the following Facilities and Privileges:

A) WHILE IN OFFICE

OFFICE ACCOMMODATION

• Fully equipped, staffed and secured office accommodation.
• Special facilities for the physically challenged.

RESIDENTIAL ACCOMMODATION

• Fully furnished official residence, or 30% of Consolidated Salary in lieu of use of official residence.

STAFF SUPPORT

• Adequate number of staff support to be provided jointly by the State protocol and the Presidency

PERSONAL SECURITY

• 24-hour Security Service.

TRANSPORTATION

• One official, fully maintained, comprehensively insured, fuelled and chauffeur-driven vehicle.
• Bank loan facilities for the private purchase of a vehicle, repayable by the Office Holder.


OVERSEAS AND LOCAL TRAVEL FOR OFFICIAL BUSINESS

• Business Class airline ticket for Ministers and Deputy Ministers.
• 4-Star Hotel Accommodation.
• Appropriate protocol courtesies to be arranged by the Ghana Mission at the destination.

MEDICAL AND DENTAL SERVICES AND INSURANCE

• Medical and Dental service to Office Holder, Spouse and children who are less than 21 years of age.
• Personal and Accident Insurance coverage.

MATERNITY/PATERNITY LEAVE

• In accordance with government rules and regulations.

B) RETIREMENT FACILITIES AND PRIVILEGES

• Non-taxable Ex-gratia, equivalent to 6 months Consolidated Salary for each full year of service or pro rata.

• Non-taxable Resettlement Grant, equivalent to 4 months non-taxable Consolidated Salary, for every completed year of service.

• Former Office Holders have the right to purchase one Duty post vehicle.

• Non-taxable Pension: As stated on Page 21 of this Report.

• For those Office Holders who occupy Duty Post Accommodation, it should be stressed, that all payments by the State will be made only after the Office Holder has vacated such Duty Post Accommodation. There will be no exceptions.

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