The Chamber of Petroleum Consumers Ghana (COPEC Ghana) says Finance Minister, Ken Ofori-Atta, should have led the charge for government’s economic recovery programme by forgoing all his benefits.
Executive Secretary of the Chamber, Duncan Amoah, speaking on JoyNews’AM Show said such an initiative would show that Mr Ofori-Atta is setting an example for others to follow.
According to him, government cutting the discretionary spending of officials by an additional 10% and the salaries of Heads of SOEs by 30%, although a good measure, is not enough to help officials appreciate the plight of Ghanaians as their remaining salary would still be substantial to combat the “financial pandemic.”
Interacting with host, Benjamin Akakpo on Friday, he said, “On the issue of cutting back some of the salary and allowances to be given is a good measure.
“However, there are quite a number of Ghanaians who don’t even have salary to be cut. So for them, if you are getting your benefit and you are cutting part of your benefit off, it is up to you guys but what comes to the ordinary Ghanaian, that is what most of us were looking out for.
“In other counties, they are quite certain that times are rough and so, France will put out $2 billion to say I’m going to offset about 17 for every litre you buy. That is what they are putting back in the pocket of ordinary people.”
He, therefore, said, “I’m not certain the Finance Minister did put anything really significant back in the pocket of Ghanaians aside they cutting their appointees benefits and all that.”
“As the leader of government purse, we would have been happy to hear the Finance Minister himself say that he is going to forgo all such benefits and he would also forgo every other. Just to be quite clear that he is indeed setting an example and precedent to follow in these difficult times.
But if it is across the board, if somebody is taking ¢100,000 already and you cut them by 30%, they are still comfortable as opposed to the other person who gets less than a ¢1000,” Mr Amoah continued.
Addressing the press on Thursday, Mr Ofori-Atta revealed that from April to December, the amount taken from the salaries of Heads of SOEs would be put into the Consolidated Fund.
Again, the sector Minister revealed that there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective April 1, 2022.
Speaking on the allocation of fuel coupons, COPEC indicated that it is unknown how government will implement this initiative.
According to COPEC, instead of government still providing coupons, it should rather provide the SOEs physical cash so they experience how rapid fuel prices surge.
“What they say would sound good to the ears, however, whose fuel are they cutting. If an SOE has as part of its condition fuel to the tune of 100 gallons a week and you say you are cutting, you are only varying their conditions of service to their detriment. I do not know how feasible that will be. They should simply convert whatever to money and pay.
Once you pay them the money and they go to the pump instead of going to purchase with coupon fuel, they pay a ¢1000 to fill their tanks this week and the following week it is ¢1300, ¢1500.”
For Mr Amoah, this will compel the SOEs “to add their voice to the cry of the poor Ghanaian for fuel prices to come down.”
Also, Mr Asamoah believes the imposition of a complete moratorium on the purchase of imported vehicles for the rest of the year is a measure taken by government to play to the gallery.
“You and I know whatever vehicles to be bought for the year by March, most of that would have been done already.
“So, if we are putting a cap back on it the year after, it sounds okay but do not be surprised to see the 2022 Land cruiser trend come all over the place because a lot of the importation has been done already,” he explained.
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