Seth Terkper, Economic Policy Advisor at the Office of the President, has accused the former New Patriotic Party (NPP) government of depleting two of Ghana’s key fiscal buffers, the Sinking Fund and the Stabilization Fund, during its time in office.
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Speaking on The Point of View on Channel One TV on Monday, June 30, Terkper claimed the NPP halted payments into the Sinking Fund, which is primarily used for debt repayment, and drained both reserves, despite benefiting from revenue generated by three operational oil fields.
“Yes, they stopped it. They drew down, despite three oil fields,” Terkper stated when asked directly if the NPP had suspended payments into the fund.
He said the current administration under President John Dramani Mahama is now working to rebuild the Sinking and Stabilisation Funds, describing them as vital tools for maintaining fiscal stability. “They are structural and medium-term measures needed to stabilise the short-term gains you’ve made,” he explained.
Terkper argued that the NPP’s decision to withdraw from the funds, without replenishing them, particularly during the COVID-19 pandemic, contributed to Ghana’s debt default. “If the debt repayment account was replaced and used, we wouldn’t have defaulted,” he said.
He emphasized that the Mahama-led administration is committed to restoring fiscal discipline. It is currently making regular contributions to both funds in line with the Public Financial Management Act and the Petroleum Revenue Management Act.
“We’re complying,” Terkper affirmed.
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