The Moody's Investors Service (‘Moody's’) report recently changed Ghana’s rating from stable to positive but its objectivity has been called into question.
Speaking to JoyNews’ PM Express programme on Wednesday, the Dean of School of Business at University of Cape Coast, Prof. John Gatsi stated that the report could either be paid for by the government or carried out on Moody’s own volition.
If it was paid for by the government, then the objectivity of the report coming in an election year is doubtful, the lecturer said.
Reacting these remarks on the same show, senior lecturer at the University of Ghana Business School (UGBS), Dr. Lord Mensah corroborated Prof. Gatsi’s assertions that the report may have been paid for by the government.
“There is no single ratings that has gone on in Africa that is not solicited (paid for),” Dr. Mensah said, adding the rating help the African countries to attract investment from abroad.
However, he disagreed that Moody’s could compromise its integrity for Ghana. He said agency had carved a niche for itself and would not risk it for a small country like Ghana and would, therefore, present an objective report.
Moody’s report The decision to assign a positive outlook reflects Moody's rising confidence that the country's institutions and policy settings will foster improved macroeconomic and fiscal stability over the medium term, in part as a consequence of the reforms implemented under the recent IMF reform program. Those reforms are beginning to bear fruit, as seen for example in the return to primary fiscal surpluses, measures to smooth the debt maturity profile and increasingly sustainable growth prospects. Pressures and risks remain, as evidenced by persistent revenue challenges, a potential repeat of pre-election fiscal cycles, and the emergence of significant arrears and further contingent liabilities in the energy sector, all contributing to rising public debt. The positive outlook reflects increasing confidence that the government will manage those pressures in such a way as to sustain and enhance external and fiscal stability.Latest Stories
-
We didn’t sneak out 10 BVDs; they were auctioned as obsolete equipment – EC
3 hours -
King Charles to resume public duties after progress in cancer treatment
4 hours -
Arda Guler scores on first start in La Liga as Madrid beat Real Sociedad
4 hours -
Fatawu Issahaku’s Leicester City secures Premier League promotion after Leeds defeat
4 hours -
Anticipation builds as Junior Speller hosts nationwide auditions
5 hours -
Etse Sikanku: The driver’s mate conundrum
5 hours -
IMF Deputy Chief worried large chunk of Eurobonds is used to service debt
6 hours -
Otumfuo Osei Tutu II celebrates 25 years of peaceful rule on golden stool
6 hours -
We have enough funds to pay accruing benefits; we’ve never missed pension payments since 1991 – SSNIT
6 hours -
Let’s embrace shared vision and propel National Banking College – First Deputy Governor
7 hours -
Liverpool agree compensation deal with Feyenoord for Slot
7 hours -
Ejisu by-election: There’s no evidence of NPP engaging in vote-buying – Ahiagbah
7 hours -
Ejisu by-election: Independent ex-NPP MP’s campaign team warns party against dubious tactics
7 hours -
ZEN Petroleum supports Tse-Addo Future Leaders School
8 hours -
NPP must win back Adentan seat in 2024 polls – Obeng Fosu
8 hours