Ghana is expected to conclude a programme with the International Monetary Fund by the end of February this year.
This was revealed by the leader of the government’s team of negotiators talking with the IMF, Professor Kwesi Botchwey.
The country, in September last year, entered into negotiations with the Fund with the hope of securing a three-year programme with the IMF.
However, due to some concerns raised by the EU, negotiations were briefly suspended.
The European Union raised issues with corruption and payroll fraud in the country’s public sector.
The EU was reported as withholding a £135 million budget support to Ghana due to an alleged payroll corruption scandal it was investigating.
According to a British newspaper, Sunday Times, the EU anti-fraud agency was probing a mammoth corruption scandal running into several million pounds in Ghana, being aid package from the EU to support the country's budget among others.
The EU itself was accused of trying to cover up with Ingeborg Grässle, a German Member of the European Parliament who chairs the budget control committee that scrutinises EU spending, quoted as saying, “It is outrageous that the European Commission failed to inform the European Parliament about the potential loss of huge amounts of taxpayers’ money to corruption, even over a year after they froze the payments to Ghana.”
The head of the EU delegation to Ghana, Ambassador William Hanna was forced to deny the accusations of a cover-up.
"Many of the allegations made in this article are wrong. The European Commission did not cover up its action; it was not late in informing the European Parliament, and it is not correct that there is a lack of control of budget support. However, we do agree that the problem of ghost workers, and payroll system weaknesses in Ghana has to be addressed urgently. This and other key structural reforms, now being discussed with the IMF are needed to improve Ghana's economic situation,” he said.
The issues raised by the IMF nonetheless forced a brief suspension of the discussions with the Fund.
But Prof. Botchwey in an interview with Joy Business’ George Wiafe, said “The irony of this payroll dispute is that the revelations that came out which were seized upon outside as evidence of some kind of crisis and fraud…are revelations that came about as a result of initiatives that the President himself ordered.”
He said the issues had been discussed with the EU Delegation and an agreement reached.
Prof. Botchwey, therefore, believes Ghana can seal a programme with the Washington-based lender by the end of February.
This is necessary to in government’s own words, bring policy credibility to government’s policies and enhance stability in the economy.
The local economy remained largely wobbly last year with many indicators performing worse than anticipated.
An historic depreciation of the local currency, the cedi, created a spiral in many respects even though the last quarter of the year saw some level of stability.
It is hoped that a programme with the IMF will strengthen the economy by introducing fiscal discipline which analysts believe has been lagging.
Latest Stories
-
Commissioner of GRA’s Customs Division urges enhanced collaboration among security agencies
13 mins -
Brigadier General Ayorogo visits Ho Collection to strengthen border security and revenue Collection
26 mins -
Ho Sector Commander of Customs urges increased staffing to curb smuggling
42 mins -
KNUST SHS wins American Corner/ACE spoken word competition
46 mins -
UniMAC-IJ lecturer donates History books to Alma Mater, 2 other schools in Eastern Region
56 mins -
GNAT bares teeth at OSP, CAGD over ‘ghost names’ investigation
1 hour -
Fred Smith: The Day I met a Horny Gay!
2 hours -
India’s High Commissioner to Ghana engages with Volta GJA members to strengthen bilateral ties and business opportunities
2 hours -
Re: Government could not account for the Initial $200m GARID Project’s World Bank Credit Facility – Minority Members of Parliament
2 hours -
Bryan Acheampong winning SSNIT hotels bid amounts to conflict of interest – Azeem
2 hours -
I am music and music is me – Eno Barony
2 hours -
CK Akonnor appointed CAF technical advisor for youth players development
3 hours -
Government payroll sees GH¢34m savings as OSP and CAGD collaborate to remove ‘ghost names’
3 hours -
Big Chef Season 3: Six finalists re-enact traditional kitchen, cooking styles
3 hours -
BoG grants Zeepay approval for outbound money transfer
3 hours