Wednesday, 17 December 2014

EU cuts budget aid to Ghana over ghost names



The European Union has suspended budget support to Ghana until ghost names are wiped off government payroll.

According to EU ambassador to Ghana, William Hanna, 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.”

“If the EU is to resume its budget support to Ghana, we must be sure that we are paying for real teachers and real health workers, who will make a difference to the lives of ordinary Ghanaians,” a statement said.

The Sunday Times of London reported on December 14 that funds from the EU have been used by Ghana to pay government salaries, including those of about 20 percent of workers who cannot be accounted for.

However, the statement pointed out: “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.

“European taxpayers, public opinion and the European Parliament expect full transparency and accountability in the use of development assistance. This is why we welcome the recent decision by the Government of Ghana to set up an inter-ministerial committee to clean up the payroll. This work should be done quickly.

“It is crucial to eliminate all ghost workers from the payroll; to put in place systems and controls to avoid new abuses; to recover lost funds; and to take sanctions against all those found responsible for wrong-doing.”

The payroll of the Ghana government drained about 70 percent of revenue last year and the Mahama-led administration is before the IMF for a bailout to save a slumping currency – the Ghana Cedi.


Source: Ghana/StarrFMonline.com/103.5FM

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