Category: Local News

Roads and Highways Minister Governs Kwame Agbodza says the Ministry is currently undertaking a review of all contracts signed by the Ministry.

According to the Adaklu MP, the review is aimed at identifying active and inactive contracts.

Speaking on the floor of Parliament, Kwame Agbodza said the review will save the country some money.

“We are currently undergoing an exercise at the Ministry to rationalize the portfolio to tell exactly whether every contract awarded is active.

“On record, some contracts are awarded, and the contractors never turned up on site, and every contract has a termination clause.

“If a contract is awarded and for two or three years the contractor never turned up on site, it is difficult to determine whether that is a valid contract,” he said.

Juliet Asante, the former Executive Secretary of the National Film Authority (NFA), has shared the immense challenges she encountered when she was appointed to regulate and promote Ghana’s film industry.

According to Asante, her journey began with a daunting task: establishing the NFA with only a paper mandate and no resources.

“With a paper in hand, but no office or money, I set out to recruit staff. With two staff members, we started the work. I took time to draft a strategy paper. But it became very clear, very quickly, that no one was interested and that this was going to be a very, very long road,” she revealed in a recent post.

She highlighted the severe financial constraints that made the task even more difficult. In the first year, the NFA was allocated only GH¢1,000 to run its operations.

“In the first year, we were given GH¢1,000 ($100) for the entire year. In the second year, we received GH¢10,000 (about $1,000 at the time). Neither I nor my staff received salaries for two years. We had to shoulder the cost of running a government office from our pockets. We worked from my home or the homes of other staff members,” she stated.

Asante further revealed that there was no guidance on how to establish a new government agency, making the process even more challenging.

Additionally, she had to navigate a difficult working relationship with an antagonistic board that made it clear she was not their preferred choice for the position.

Economist and Finance lecturer at the University of Ghana Business School, Professor Lord Mensah, has stressed the need for the implementation of the outcomes of the National Economic Dialogue which kicks off March 3, 2025 to steer the economy back on to the path of recovery.

President John Mahama in his maiden State of the Nation Address painted a dire outlook for the country’s economy with public debt standing at GH¢721 billion.

He added that the National Economic Dialogue will be expected to discuss the state of the economy and reach a consensus on the key policies needed to address the devastating economic crisis confronting the country.

The dialogue the president said will also support the development of a home-grown fiscal consolidation programme and highlight key structural reforms and policy priorities essential for resetting the economy and creating prosperity for all.

For economist Professor Lord Mensah, the real test lies beyond the National Economic Dialogue. He says there is a need for actionable outcomes that translate into policy shifts.

“I don’t want it to be a document or a guideline that will be restricted to this particular administration. The outcome of this dialogue should not be something that will be sitting on the shelves – just a paperwork that on the grounds, different things will be happening without necessarily implementing what we proposed at the dialogue,” he told Citi Business News in an interview.

Professor Lord Mensah also emphasized that discussions should prioritize Ghana’s exit from the current IMF program in May next year.

He noted that while Ghana demonstrates better fiscal discipline under an IMF program, it tends to struggle when managing its finances independently.

According to Lord Mensah, ensuring prudent fiscal management after the IMF program should be a key priority for discussion at the National Economic Dialogue.

“The question is as we going to hold up a dialogue, we should be able to center this discussion as to how we are going to manage our finances without IMF and be disciplined. That should be discussed thoroughly at the dialogue,” he said.

The government is set to host the much-anticipated National Economic Dialogue (NED) today, March 3, 2025, at the Accra International Conference Centre.

The two-day forum, spearheaded by President John Dramani Mahama, aims to tackle Ghana’s pressing economic challenges and chart a path toward sustainable economic growth.

Under the theme “Resetting Ghana: Building the Economy We Want Together,” President Mahama will deliver a keynote address outlining his administration’s vision for revitalizing the economy.

The dialogue forms part of his commitment to fostering inclusive discussions on economic policies and reforms, ensuring that key stakeholders contribute to shaping the country’s financial future.

The forum will bring together a diverse group of participants, including representatives from the private sector, academia, public policy institutions, and civil society organizations. Their discussions will be structured around thematic sessions addressing critical areas such as:

• Achieving Sustainable Macroeconomic Stability
• Promoting Economic Transformation
• Advancing Infrastructure Development
• Implementing Structural Reforms
• Ensuring Private Sector-Led Growth
• Restoring Good Governance and Combating Corruption

With Ghana facing economic crisis, the government is hopeful that this engagement will generate consensus-driven solutions to boost business confidence, improve infrastructure, and enhance livelihoods.

The outcomes of the dialogue are expected to serve as a roadmap for policy implementation, guiding economic decisions that promote resilience and long-term growth.

Stakeholders will work toward establishing clear commitments and milestones to reset the economy and drive transformative change.

As the National Economic Dialogue kicks off, Ghanaians look forward to concrete policy recommendations that will shape the country’s economic trajectory for years to come.

On Friday, February 28, 2025, treasury bills witnessed an unprecedented decline in yields, marking one of the sharpest drops in decades.

Latest auction results from the Bank of Ghana indicate that rates, which started the year between 28% and 30%, have now fallen to an average range of 20% to 22%.

This steep decline follows a series of strong investor demand and shifting yield expectations, largely driven by recent rejections of higher bids by the Treasury.

At the start of the year, the 91-day Treasury bill stood at 28.34%, but it has now plunged to 20.79%, a 760-basis-point drop. Similarly, the 182-day bill has fallen from 28.96% to 22.98%, reflecting a 600-basis-point decline. The 364-day bill, which was yielding 30.17%, has now dropped to 22.69%, marking a significant 750-basis-point reduction.

Was this expected and how low can T-Bill rates go?

For market watchers, the overall trend was anticipated, but the pace and scale of the decline have surprised many. Although it’s hard to know the lowest point, some factors can help estimate where rates will stop falling. Inflation and monetary policy: If inflation continues to decline, the Bank of Ghana (BoG) may have less pressure to maintain high yields. A stable inflation rate in the 15-18% range could push T-bill rates closer to 18-20%.  They also note that, much will depend on the upcoming Monetary Policy Committee (MPC) decision. If the MPC maintains the policy rate at 27%, institutional investors might shift their focus to the Bank of Ghana’s 56-day bill should it offer a more attractive return. Additionally, the persistence of strong investor demand, coupled with the Treasury’s efforts to reduce borrowing costs, is likely to drive yields further down.

Government borrowing needs: The government’s fiscal position will also play a role. If borrowing remains high, the BoG may need to keep rates attractive to investors. A reduced financing gap, however, could mean further declines.

Market liquidity and investor sentiment: The high demand for T-bills in recent auctions suggests that investors are still keen on government securities, even at lower rates. If demand persists, rates could fall further but may not go below 18% without significant inflation control and policy shifts.

The big question now is: At what level will yields finally settle?

With no obvious and safe investment options available on the market, market watchers believe investors continue to lock in their funds in anticipation of further declines. The medium-term floor for yields remains uncertain, but investor appetite and the Central Bank’s next moves will be key in determining where rates eventually stabilise.

Government exceeds target despite rate drop

Despite the steep decline in rates, the government successfully exceeded its Treasury bill target in the latest auction. Total bids tendered amounted to GHS 18.25 billion, slightly lower than the previous week’s GHS 20.50 billion, yet still surpassing the government’s target by GHS 924.94 million.

The auction results showed that while the government aimed to raise GHS 6.49 billion, it received bids totalling GHS 7.41 billion, leading to an oversubscription of 14.18%. However, it rejected GHS 10.84 billion in bids. Investor interest remained particularly strong for the 364-day bill, which attracted GHS 8.72 billion in bids, out of which GHS 2.01 billion was accepted. The 91-day bill followed, with GHS 6.21 billion in bids, of which GHS 2.38 billion was accepted. The 182-day bill saw GHS 3.32 billion tendered, with GHS 3 billion accepted.

Looking ahead, the Treasury plans to raise GHS 5.74 billion in the next auction.

With investors continuing to chase yields, all eyes will be on the next policy decision and whether the downward trajectory of rates will persist or finally find a floor.

The Bank of Ghana (BoG) has issued a firm directive against photocopying Ghana Cards for banking transactions, emphasizing that biometric verification must be the standard for identity authentication.

BoG made it clear that photocopying Ghana Cards for customer verification is not an acceptable practice.
The directive, which aligns with the National Identity Register Regulations, 2012 (L.I. 2111), underscores the growing risks associated with outdated verification methods such as lookup lists and visual inspections.

BoG’s stance against photocopying Ghana Cards

Deputy Head of Office under the Financial Integrity Office of BoG, Mr. Ashitei Trebi-Ollennu emphasized, “We have never said that banks should photocopy Ghana Cards. Photocopying leaves room for fraud and compromises the integrity of transactions.” Instead, he said banks must authenticate identities directly through the biometric verification system linked to the National Identification database, ensuring a secure and reliable financial ecosystem.
This position was reinforced during a stakeholder engagement in Accra, organized by Identity Management Systems II (IMS II) Ltd. in collaboration with the National Identification Authority (NIA).

The event, themed “Protect Every Transaction with Biometric Verification,” brought together the Bank of Ghana, the Ghana Association of Banks, the National Identification Authority, and representatives from the 25 universal banks in Ghana to discuss the critical role of identity verification in securing financial transactions.

Real-time biometric verification benefits

Real-time biometric verification prevents identity theft and impersonation, eliminates reliance on easily forged physical documents, ensures real-time authentication with National Identity Register (NIR) records, and aligns with national and international security standards.

The shift towards biometric identity management

Executive Director of IMS II Ltd, James Cantamantu-Koomson, highlighted the fundamental shift in identity management, stating, “The way we do things is changing. Identity is at the centre and the engine of our financial system. The database that the National Identification Authority has gathered is one of the most powerful assets we have as a country.”
His remarks underscored the need to transition from traditional manual processes to a multi-modal biometric verification approach that eliminates security vulnerabilities.

Enhancing collaboration between financial institutions

The engagement fostered a productive dialogue between the Bank of Ghana, the Association of Banks, the National Identification Authority, and representatives of all universal banks.

Banks provided valuable feedback on how the exchange of information could be enhanced to streamline verification processes and improve efficiency.

The National Identification Authority also re-emphasized its legal mandate, with the Head of the Legal Directorate, Teresa Eson-Benjamin, emphasizing the law that establishes the Ghana Card as the sole form of identification for banking transactions.

This clarification was crucial in ensuring that all financial institutions fully align with the legal framework governing identity verification in Ghana.

The importance of biometric verification

The discussions highlighted the importance of biometric verification as the most secure form of authentication, eliminating fraudulent activities associated with photocopied Ghana Cards. The event called for financial institutions to fully transition to biometric-based verification, ensuring that Ghana’s financial sector remains robust, fraud-proof, and aligned with international best practices. Key figures in attendance

The engagement was attended by key figures such as Mr. John Awuah, CEO of the Ghana Association of Banks (GAB), Audrey Mireku (Banking Operations, Risk & Cybersecurity), Mr. Ashitei Trebi-Ollennu (Deputy Head of Office under the Financial Integrity Office of BOG), and Ms. Naa Welbeck (Head of Supervision Unit under the Financial Integrity Office of the Bank of Ghana).
Also present were legal, technology, and biometric experts from the NIA, along with executives from all 25 universal banks in Ghana.

Strengthening trust through biometric authentication

By the end of the engagement, there was a clear consensus: “Trust but verify” must be the guiding principle in Ghana’s financial sector.

The commitment to biometric authentication will not only protect transactions but also reinforce Ghana’s position as a leader in secure digital identity verification.

President John Dramani Mahama has been petitioned to grant a presidential pardon for William Ato Essien, an entrepreneur and founder of First Capital Plus, which later evolved into Capital Bank.

Essien was sentenced to 15 years in prison by an Accra High Court following charges of stealing over GH¢90 million of liquidity support provided by the Bank of Ghana to Capital Bank.

He was initially given the opportunity to avoid a custodial sentence by agreeing to pay back the GH¢90 million as restitution to the state but he failed to meet the payment terms agreed upon with the Attorney General and the court.

Essien paid GH¢30 million upfront in December 2022 but was unable to pay the remaining GH¢60 million in the agreed installments. His failure to fulfill the payment terms led the court to impose a custodial sentence.

But the petition submitted by Andrew Appiah-Danquah, a lawyer, and dated Thursday February 27, addressed raised serious concerns about the fairness and integrity of Essien’s conviction and imprisonment.

The petition highlighted Essien’s significant contributions to Ghana’s financial sector as being the founder of Capital Bank, his leadership and innovation provided thousands of jobs, supported local businesses, and empowered Ghanaian entrepreneurs.

The petition argued that his conviction undermined the achievements of a visionary entrepreneur who proved that local enterprises could thrive in a competitive financial sector.

Other facts of the petition were that “Capital Bank’s collapse in 2017 was not due to fraud but a politically orchestrated move to consolidate financial power. Mr. Essien refused to bow to political pressure to cede control of his bank to powerful interests, which ultimately led to its targeted demise. The GH₵ 620 Million Liquidity Support Was a Commercial Loan, Not a Fraud…Capital Bank was repaying this loan and had already paid GH₵ 336 million in interest over two years—clear evidence that it was a legitimate banking transaction.

“The GH₵ 480 million described as a “shareholder loan” was not stolen but rather a strategic restructuring of non-performing loans accumulated over 14 years. Such restructuring is a common financial practice aimed at strengthening a bank’s financial position and was not an act of fraud. The Court’s Acquittal of Others Contradicts Ato Essien’s Conviction

“Three other accused persons—Dr. Tetteh Nettey, Rev. Fitzgerald Odonkor,and Kate Quartey-Papafio—were acquitted on the same charges for which Mr. Essien was convicted. The court held that: The GH₵ 70 million transaction involving Kate Quartey-Papafio was fully accounted for. The GH₵ 130 million transaction involving Dr. Tetteh Nettey was fully accounted for. The GH₵ 27.5 million transaction involving Rev. Fitzgerald Odonkor was legal and authorised.

It further stated that when the court determined that the payments forming the basis of the charges were lawful, the state had an obligation to review Mr. Essien’s conviction and ensure justice was served.

“To avoid a prolonged trial, Mr. Essien was pressured into a plea bargain, agreeing to pay GH₵ 90 million—an amount significantly higher than the alleged loss which he has already paid GH₵ 43.75 million.

It therefore urged the president to grant a Presidential Pardon to Mr. William Ato Essien.

“Granting a Presidential Pardon to Ato Essien will not only restore justice but will also affirm your commitment to a truly new Ghana—one where freedom and justice are not just words, but lived realities,” the petition added.

Former Presidential Advisor on Health, Dr Anthony Nsiah Asare, has reiterated claims that the termination of appointments of nurses and health workers by the Mahama administration halted the operationalization of already commissioned Agenda 111 hospitals.

Dr Nsiah Asare said the directive by the Chief of Staff affected the smooth take-off of the completed hospital.

Speaking to Citi News following President Mahama’s assertion that none of the agenda 111 hospitals are in operation, Dr. Nsiah Asare said nurses and health workers were ready to run the facilities.

“We started employing 15,200 nurses, and remember the financial clearance was given in July. Public health services recruitment is a process, it is not an event.

“So, if somebody comes to write a letter that anybody recruited or who started work or whose name is not on the payroll, they should go home, you have revoked, then who will go and work there.”

Similarly, former Deputy Minister of Health and Akim-Oda MP, Alexander Akwasi Acquah, had blamed the delay in operationalizing some completed Agenda 111 hospitals on the termination of appointments for health practitioners recruited under the Akufo-Addo administration.

He said though three health facilities have been completed and fully equipped, they remain non-functional due to a shortage of medical personnel.

Speaking to Citi News after President Mahama’s State of the Nation Address, Acquah said “They are not operational because we have to put staff there, and the practitioners we have recruited are the same people they are sacking.

“So, if you are terminating the appointment, GHS will not have the ability to post people to these facilities, but otherwise, we have mentioned that three facilities have been fully completed. We have done the tooling, and it is ready to be operated. We have the Trede in Atwima Kwanwoma, we have the Kokoben in Oforikrom, and then we have the Bokro in Ahanta West.”

Minister for Sports and Recreation Kofi Iddie Adams has commended the Ghana Armwrestling Federation (GAF) for its outstanding leadership and consistent achievements.

The minister made these remarks during a courtesy visit by the GAF leadership, led by President Charles Osei Asibey, to congratulate him and welcome him to his new role.

Adams praised the GAF for showcasing exceptional leadership, which he credited for driving the sport’s growth and delivering impressive results. strong collaboration with stakeholders.

The Minister expressed amazement at the rapid rise of armwrestling in Ghana since 2016, particularly noting the increasing prominence of Ghanaian athletes on continental and global stages.

“I am truly impressed by the progress made by the GAF. The speed at which this sport has grown, especially in terms of Ghanaian representation across Africa and the world, is remarkable,” he stated.

Adams also underscored the recreational value of competitive sports and urged the GAF to align with the ministry’s recreational agenda.

This partnership, he noted, could further enhance the sport’s development and reach within Ghana.

Looking ahead, the minister pledged his ministry’s full support to ensure the GAF continues to excel internationally, especially as Ghana prepares to host the 2027 African Games.

He emphasized that with adequate resources, armwrestling has the potential to become a dominant force for Ghana in global sports.

The discussion also covered critical issues such as athlete welfare, talent identification, and coaching development.

The GAF raised concerns about the need for improved opportunities for athletes, including employment in the security services.

Acknowledging these points, Adams stressed the importance of a structured approach to supporting high-performing sports.

“The Ministry is working on classifying sports federations to prioritize resources for those delivering medals and international recognition. Armwrestling has proven its worth and deserves every bit of support,” he assured. Additionally, the federation extended an invitation to the minister to attend the upcoming Independence Armwrestling Championship, an event celebrating the sport’s success and its growing role in Ghana’s sports landscape.

The meeting concluded with both parties reaffirming their commitment to collaborate closely, ensuring that Armwrestling continues to flourish and elevates Ghana’s standing on the global stage.