Wages, expenses and the public mood in Ghana
Questions are being asked about salaries and expense allowances for public office holders in Ghana. Such is the temperature of the debate that (a) the wives of the president and vice president have sought to distance themselves from recent spending decisions, and (b) having approved a generous loan facility for the purchase of vehicles by MPs – the parliamentary finance committee may be backtracking.
Significance – A Lack of Oversight
Payments to Ghanaian parliamentarians and other politically exposed persons have featured heavily in local press in recent weeks – earlier in the political cycle and to greater effect, than is typically the case. First and most prominent, is the matter of payments to Rebecca Akufo-Addo (wife of the current president) and Samira Bawumia (wife of the vice president).
Article 71 of the constitution addresses emoluments of various categories of government officials e.g., members of parliament and the executive, and provides for a committee to make recommendations on what these salaries and benefits should be.
A committee headed by Professor Yaa Ntiamoah-Baidu and constituted under Article 71 of the Constitution recommended that the two be paid an official salary on their exit from office – backdated to 2017[1]. While there are conflicting reports as to whether the proposal has already been adopted by parliament[2], two opposition New Democratic Congress (NDC) MPs filed a court case challenging the authority of anyone to award salaries to the wives of the president and the vice president as they are not listed in Article 71. Meanwhile, Akufo-Addo and Bawumia have since said that they will refund allowances that have been paid to them since their respective husbands took office in 2017 and that they will reject the salaries recommended for them in the Ntiamoah-Baidu report.
Criticisms are not limited to the executive. The parliamentary finance committee has reportedly recommended the “discontinuation of the vehicle loan arrangement for MPs and members of the council of state”, USD28 million and USD3.5 million respectively, which would allow beneficiaries up to USD 100,000 to purchase a vehicle. Previously, the loan had been contracted by government but was payable by the parliamentarians themselves. Under the new arrangement, government will absorb 60% of the loan cost as well as interest costs[3].
These are current headlines but longstanding concerns about independence, transparency, and conflicts of interest around emoluments. Namely, that the current system allows for a ‘you scratch my back, I’ll scratch yours’ situation between legislators and the executive. One wherein salaries may be set above the levels recommended by committees without contest. In the context of Ghana’s current elevated fiscal deficit, new revenue raising measures, and #FixTheCountry movement, profligacy appears particularly potent politically. An opposition NDC MP, Samuel Okudzeto Ablakwa, is calling for the creation of an independent body to oversee governmental emoluments. See: Ghana protest turns deadly, and risks remain.
Outlook – Substantial Change Unlikely
The first and second ladies’ rejection of the Ntiamoah-Baidu report proposals and the Finance Committee’s recommendation to end the vehicle loan arrangements are both noteworthy. They occur amid considerable scrutiny of public financial management. See: #FixTheCountry: Ghanaians take to social media to vent building frustrations.
For example, Ghana’s #FixTheCountry protestors, planning a mass demonstration on 4 August, have demanded increased transparency in public spending, amongst other things. They have as ammunition the president’s 2017 inauguration pledge to “protect the public purse”[4].
However, the service benefits for Article 71 office holders may still be approved. Although there is some dissent from select NDC MPs, it is not enough to overturn the award. The call by Okudzeto-Ablakwa for independent oversight is gaining some traction but would require a constitutional amendment, and therefore two-thirds parliamentary majority, to overrule article 71. A constitutional review commission criticised the current arrangement as far back as 2011 but no action has been taken. Structural change therefore remains a remote possibility.
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[1] This would formalise the current arrangement under which spouses of former presidents and vices are paid an allowance.
[2] This is being disputed by an NDC MP, Samuel Okudzeto-Ablakwa, he claims parliament has never seen the committee report let alone approved any of its recommendations.
[3] Parliament’s Finance Committee recommends discontinuation of future car loans for MPs, Council of State members (2021, 14 July). Myjoyonline.com
[4] Ministry of Planning (2018). Inaugural Address of His Excellency, Nana Addo Dankwa Akufo-Addo, on the occasion of his swearing in as president of the republic, and commander in chief of the Ghana Armed Forces.
**Photo credit: Jessica Gardner, CC
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