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Gov’t Misused $1 Billion IPP Debt- Minority

While accusing the government of hiding the truth and not providing practical solutions to the country's economic problems, he called for a national dialogue on Ghana's economy.

The Minority in Parliament has refuted the government’s claim for successfully restructuring one billion dollars of debt owed to Independent Power Producers.

At an earlier joint press conference on July 1, 2024, Finance Minister Dr. Mohammed Amin Adam, joined by the Bank of Ghana (BoG) and the International Monetary Fund (IMF) said that the government had successfully concluded negotiations with Independent Power Producers (IPPs), paving the way for a more robust and sustainable energy sector.

The talks, which lasted several months, aimed to restructure power supply deals (PPAs) and settle long-standing debts that had built up in the energy sector due to financial difficulties.

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However, speaking to the media on July 2, 2024, the ranking member of the Mines and Energy Committee, John Jinapor, disputed the claim, stating that no agreement has been reached. He also accused the government of misusing the $1 billion loan. 

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“So unfortunately, once again, this so-called restructuring of IPP debt is nothing but a charade. In 2020, the government borrowed 3 billion Eurobond and promised us that they would use $1 billion to restructure IPP liabilities. As soon as the government got the money, they misused and misapplied that money,” Jinapor said.

While accusing the government of hiding the truth and not providing practical solutions to the country’s economic problems, he called for a national dialogue on Ghana’s economy. 

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“This is the time for the president to swallow his pride, for the head of the Economic Management team, Dr Bawumia, to swallow his pride and call for a national dialogue on the state of Ghana’s economy,” he said. 

He further stressed the need for transparency and accountability in government, and for the next administration to be truthful in tackling the country’s challenges.

“I think that is the time for Ghanaians to know what lies ahead for them in the future, so that whichever government would be assuming office from 2025 would be realistic, real with the people, and come up with pragmatic measures to resolve the problems confronting us,” he added

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