The Civil and Local Government Staff Association of Ghana (CLOGSAG) has alleged that some corporate trustees took advantage of the Debt Exchange Programme because they had prior knowledge.

Executive Secretary of CLOGSAG, Isaac Bampoe Addo at a press conference on Friday revealed that these trustees, per their prior knowledge of the programme, converted their domestic bond holdings into foreign assets.

According to him, they also transformed their bond holdings into cash to escape the government’s haircut.

“The manner the DDE was handled has raised pertinent issues. Some Corporate Trustees had prior knowledge of the domestic debt exchange programme and were able to convert their domestic bond holdings into either foreign assets or foreign currency or change the corporate holdings into individual holdings. They also changed their bond holdings into cash,” Isaac Bampoe Addo said.

CLOGSAG, therefore, called on the National Pension Regulatory Authority (NPRA) to investigate the allegations.

“These concerns should not be left unattended to. We call on the National Pension Regulatory Authority to investigate this matter with regard to its investment and NPRA guidelines.”

Government on Thursday announced an exemption of all pension funds from the debt exchange programme after a memorandum of understanding with Organised Labour.

This follows staunch agitations and opposition from Organised Labour for fears of haircuts on the pension funds of their members.

But CLOGSAG says despite the exemption of the pension funds from the programme, its members will embark on a nationwide strike “should government fail to honour any of our coupons when they fall due.”

“Surprisingly the government chose domestic debt exchange as an answer to its inability to service the domestic debt when it could have curtailed its flagship programmes that would have gone a long way to exhibit willingness on the part of government,” he added.

Government after its meeting with Organised Labour on Thursday has since formed a seven-member committee to explore technical solutions to bring the debt threshold back to sustainable limits.

The Committee comprised four representatives from Government and three representatives from Organised Labour. They are expected to submit a report on December 28.