A former Deputy Minister of Communications, Felix Kwakye-Ofosu, has questioned the basis of government’s decision to use part of Ghana’s oil revenue to finance the free senior high school policy started last year.
President Nana Akufo-Addo last Friday said it is most appropriate to use a part of the country’s oil revenue to fund the policy, which was rolled out last September to offer free education to persons who qualify into public senior high schools.
“We are using some of the income from our oil revenue to fund the programme. I believe strongly that this is the most equitable and transparent use of the oil revenue, instead of it finding its way into the pockets of politicians and bureaucrats,” he said.
Contributing to discussions on the matter on newspaper segment on TV3’s New Day Monday, Mr. Kwakye-Ofosu described the President’s comment as a mere rhetoric arguing that the cost of free SHS is more than revenue accruing from oil.
He said this clearly demonstrates that the government not certain of the source of funding for the programme because per the available figures, his comments do not seem feasible.
Mr Kwakye-Ofosu who served under the John Mahama government said even if government decides to use all the revenue accruing from Ghana’s oil, it will not be enough to fund even the first year of free SHS considering.
“They are implementing a programme that has a huge financial outlay. Last year alone or if you like, this year alone if you look at the budget statement that the minister of finance presented they need something in the region of GHS 1.6 billion to finance just the first years who are currently under the programme and then those who will come in in September this year.
“Our entire oil proceeds from 2016 was GHS 711 million. Indeed, we had projected to get about 1.4 billion but because of fluctuations in the oil prices we got GHS 711 million”, he stated.
The former Minister indicated that the current projection on oil revenue does not look promising to reach a double of what accrued in previous years, hence will definitely not be sufficient to fund Free SHS.
“I’m not sure in 2017 we got anything significantly different from that figure, so even if all that money was poured into Free SHS, it will be insufficient to take care of the first year students alone. The projections don’t show we are going to double oil production anytime soon”
Legal challenges
He wondered how the President could use oil proceeds to fund the programme without recourse to the law, saying “the disbursement of oil revenue is regulated by law; the Petroleum Revenue Management Act”.
The law requires that 70% of oil revenue goes into funding the country’s annual budget, hence cannot all be dedicated to one item as the president seeks to do.
“The rest goes into a Heritage fund and the other goes into a Stabilization fund, those funds are regulated by law”.
In his estimation, anybody who reposes confidence in the words of the President on the matter will eventually be disappointed because it is not possible to fund Free SHS from oil money.
“If you put confidence in what the president said you will be left disappointed because first of all the money will not be sufficient to take care of the programme” he noted.
Source: 3news
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What is the "the Petroleum Revenue Management Act”?. How did it come into existence? What I willindicate here that we are a bunch of lawless people that is why our financial situation is dire. I expected the so called jounalist of repute, senior journalists, occupyghana and the rest to have first of all taken the NDC to court for not honouring the dictates of this law. What the NPP is doing now should also be tested in court by these very so called honourable people so that we see where we stand or they better keep quiet. We cannot be so lawless and expect any good. Our political leaders are taking us for granted and we are being partisan about that? We as a country or a people with sovereignty have passed into law how to disburse the proceeds from a strategic asset for good reasons and if our political classes or flouting this very law we take partisan lines? That is why we beg other countries to enslave us. Countries who have decided that they will follow their law. Why do we run to these countries for medical care if we are ill? This is because we have lawless political leaders and these political leaders have able supporters. If this attitude continues we can as well sell our soveriegnty and be at the mercy of others. Free education is good but cannot be done lawlessly. We can source a lot of money in the system to fund this than to resort to lawlessness. lets look again at our ports of entry and see the amount of money being lost there. Penalties, Funds from our foriegn missions. Trust me our missions in UK and USA only leaks so much money that if this leakage is stopped we will not resort to lawlessness to fund free education. Road contracts is another area where the country leaks money like pouring water into a basket. We are not even accounting for proceeds from the Tema toll booth for starters. Government guaranteeing for MPs vehicles where they finish their terms and government will have to pay the difference through corrupt schemes should be stopped. These are just a few ways to free up funds to fund the education of our young ones. We should be taking issue with any political party in power to task on our finances rather than taking a political stance when they flout our laws concerning our finances or else we all lose.
They cant use it to benefit every Ghanaian but NDC can steal it, you just your reward will be enormous before you depart this world.
But u can steal the money, huh?
If the oil revenue is not sufficient how they are funding the program? u people do not read at all. The report says "part of oil revenue" which suggests not all. See how they have been able to run the program and we have not gone bankrupt and nurses and teacher training allowances restored.
and what can you do
Such an ignoramus is our President??!! He is only puffed up by propaganda and lies!! The world has seen how he’s being exposed by very young and informed people in opposition??!! Please, NPP, hasten slowly and get informed before you speak!!! GHANA IS TIRED of your super incompetence!!
Well it is a clear indicator that NDC will scrap free SHS should they be returned to power. They are people who can never repent.
YOU CANNOT STEAL THAT MONEY AGAIN
these ple are scared they will not have anything to steal anymore shd they mysteriously find themselves back in power. i dont know why they are panting over something that doesn't concern. there is no amount of mystery that will bring them back to power. no wonder most of them has turned into forming robbery gangs. God has really saved us from the hands of this evil ple and we are truly grateful.
Go tell this to your mother. Some ***barred word*** don consume you now.