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Why this unnecessary burden on pensioners and individual bond holders in the country?
Treasury Bonds are medium term debt instruments (Securities) issued by the Government of Ghana and sold to individuals or companies to raise funds for a specific time at a fixed or variable interest rate. The bonds have maturity periods exceeding two years.
Over here in Ghana, there is no upper limit but a maximum limit of GHc500.00 is required for the purchase of a bond. It generally includes a commitment to pay periodic interest called coupon payment and to repay the face value on the maturity date.
BENEFITS FROM BONDS
Unlike savings, bonds, especially those from government and major companies tend to be a safe investment. They can offer much higher return than savings account. The nature of this facility, has encouraged the majority of companies and individuals to rope onto the scheme with the intentsion of recouping sizeable interests to support them in various ways and endeavours. Even most employers in the country have taken advantage of the immense benefits to register their workers on the scheme.
In recent times, the government in its determination to revive the country’s ailing economy, has adopted a number of measures including a suspension on payment of external debt.
It,therefore, announced a Domestic Debt Exchange Programme which requires institutional holders of eligible bonds to agree to writing to the Central Securities Depository (CSD) to exchange their current holdings to new ones.
DOMESTIC DEBT EXCHANGE AND PENSION FUND
Initially, the government announced that Pension funds would be included in the debt exchange programme but Organised Labour, stood firmly against the decision which many believed was part of the conditions spelt out in the International Monetary Fund (IMF) laid out processes for the economic bailout. Organised Labour including the Civil and Local Government Staff Association of Ghana (CLOGSAG) and the Industrial and Commercial Workers Union (ICU), had all rejected the government’s attempt to include the pension funds in the debt exchange program.
According to organised Labour, it was against the law for the government to touch the pension funds. While CLOGSAG and the Ghana Medical Association (GMA) served notice that members would embark on industrial action, should the government fail to heed their call, the ICU also stated that it would be compelled to join other labour unions to demonstrate against such measures by the government.
After series of meetings between the government and Organised Labour on that thorny issue, the general consensus was to exempt the pension funds from the debt restructuring programme.
Hear the Minister of Employment and Labour Relations Mr. Ignatius Baffour Awuah, on the outcome of the meeting on Thursday, December 22, 2022. “Government and the organised labour will work together to resolve all issues to make the program successful towards the restoration of macroeconomic stability of the country.”
INDIVIDUAL BONDHOLDERS
It is surprising to know that after the attempts to include the pension funds on the debt restructuring programme had failed, the government has now turned its attention on individual domestic bondholders, as part of measures to salvage the ailing economy.
In the latter part of December last year, the government invited individual bond holders to exchange their old bond holdings for new ones with extended maturity in a domestic debt exchange programme. The invitation to this exchange programme, expired on January 16, 2023, at 4 pm, but the deadline has been extended to 31st January, 2023, at 4 pm.
According to the government, this exchange programme, would allow the country to restore sound public finance and sustainable debt levels and to kick-start economic growth, following the impact of COVID-19 pandemic. It noted that the alternative to the debt exchange would be far worse economic crisis with protracted closure from international markets, including imported goods and services, and further domestic both for the real economy and the financial sector. It would also mean depleted fiscal resources to support the neediest.
INITIAL EXEMPTION OF INDIVIDUAL BONDHOLDERS
It is recalled that individual bondholders were initially exempted from the Domestic Debt Exchange Prrogramme that the government launched on Monday, December 5, 2022.
However, the Finance Minister, Mr. Ken Ofori-Atta, in announcing the exemption of pension funds from the Debt Exchange Programme in response to recommendations by major stakeholders on December 22, 2022, said it would come at a cost.
It is important to state that the government has reached staff level agreement with its negotiation with the IMF for a three-billion-dollar bailout. Therefore, the amendment in debt Exchange programme is necessary to reach a Management and Board levels agreement with the IMF.
THREATS OF LEGAL SUIT AGAINST GOVERNMENT
This latest development has sparked off threats of legal suit in court by individual bond holders against the government. According to the Vice President of IMANI, Ghana, an Economic Think Tank, Bright Simons, three groups representing individual bond holders, have commenced mobilisation to file legal suit against the government for including individual bond holders in the Debt Exchange Programme. He explained in a tweet that individual/retail investors to Ghana’s debt default would increase the risk of litigation.
While some of these individual bond holders have threatened to commit suicide if the government fails to heed their call to rescind its decision of including their bonds on the debt exchange programme, since the benefits from that investments are the source of their livelihood and, therefore, taking them away from them mean, killing them softly, others have complained that profits from the bonds, are what they depend on to cater for their families, including their children’s school fees.
According to them, times are hard and the cost of living is unbearable, hence the profits from their investment are what they use to cushion themselves.
A number of prominent personalities including the Majority Leader in Parliament have cautioned against this latest move to involve individual bond holders in the Domestic Debt Exchange Programme, saying it is dangerous for the country’s development.
According to Mr Osei-Kyei-Mensah Bonsu, the progamme could wipe out the middle class and negatively affect the savings culture of Ghanaians. He has suggested that the Finance Minister should properly engage with the major stakeholders.
The Minority caucus in Parliament has also called for total suspension of the Domestic Debt Exchange Programme and suggested a national economic crisis dialogue by stakeholders to discuss the whole issue, including the individual bondholders matter.
ECONOMY IN SHAMBLES
It is a fact that the economy is in a state of comma and our doctors will simply put it that it is receiving serious medical attention at the Intensive Care Unit (ICU) at a medical facility with all the life supporting gadgets including oxygen and drips fixed on it. The moment, you dismantle these supporting gadgets, means death.
It is so sad that, managers of our economy have supervised the economy to that extent of deterioration, despite other natural factors like COVID-19 and Russian-Ukraine war, which they have always relied upon to defend themselves anytime they are criticised.
What is amazing, is for the fact that our finest economists and financial analysts, keep giving pieces of advice to government that will help revamp the ailing economy, but because of political expediencies, these practical and reasonable advice and suggestions are constantly ignored and left in the burner, hence the situation we find ourselves at the moment.
What we have to do as a nation which is interested in building a sound and progressive economy to rub shoulders with other advanced nations in the world, is for us to unite and push party affiliations to the background and collectively pool ideas to build this country after all, this is the only country we have and nowhere else to go.
SUFFERING GHANAIANS NEED TO BE SPARED
The people are, indeed, suffering in the midst of economic difficulties and other challenges. The cost of living is unbearable, prices of goods and services continue to escalate daily, inflation is terribly high, the cedi which appreciated against the United States of America (USA) dollar during the Christmas period is beginning to depreciate, fuel prices, although reduced a little is not the best, insurance premiums and other road worthy taxes are astronomically high.
In the midst of all these economic challenges, the government cannot continue to burden the citizens with policies that are inimical to their progress. That cannot be tolerated whatsoever in any civilised country such as Ghana.
The government should find alternatives to address the present economic challenges and stop these unnecessary ad hoc and indirect measures to mitigate the numerous economic problems.
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By Charles Neequaye
When Abigail Fremah steps up to the Armwrestling table, the noise fades, the tension settles, and order takes over.
Despite a calm, but firm and meticulous disposition, she has become one of the quiet forces shaping Ghana’s growing reputation in the sport, not as an athlete, but a referee trusted on the continental stage.
Abigail’s journey into Armwrestling did not begin at the table. Like many Ghanaian sports enthusiasts, she grew up playing several disciplines. Football was her first love, but she also featured in volleyball and basketball during her school years. Sports, she says, was simply a way of life not just for her.
“It runs through the family. All my siblings are into sports,” she stated.
“I was involved in almost every sport in school, football, volleyball, netball, hockey; I did everything,” she recalls.
Her academic background in Health, Physical Education and Recreation laid a solid foundation for her sporting career. While on scholarship at the university (University of Cape Coast), she often used her modest budget to support young athletes, sometimes sharing skills and even T-shirts at programmes she attended. Giving back, she explains, has always been part of her motivation.
However, as she matured as an athlete, Abigail made a critical self-assessment.
“Armwrestling involves a lot of strength,” she admits. “Looking at my body type, I realised I couldn’t fit properly as a competitive athlete.”
That moment of honesty pushed her to a different trajectory but equally important path in sports; which is officiating.
During her National Service, she was encouraged by Mr Charles Osei Asibey, the President of the Ghana Armwrestling Federation (GAF), to consider officiating. He introduced her to a technical official, Mr Hussein Akuerteh Addy, who formally took her through the basics of Armwrestling officiating in 2021.
“I started as a case official,” she says. “We moved from region to region every week, officiating competitions. That’s where it all began.”
By 2022, Abigail was actively involved in national assignments, though she missed the African Championship that year. Her breakthrough came in 2023, when Ghana hosted the African Armwrestling Championship.
It was her first experience officiating at a major international competition and it changed everything.
“That was my first national and international exposure at the same time,” she says. “It really opened my eyes.”
Today, Abigail is a World Junior Armwrestling Referee, a status earned through performance, consistency and discipline. She explains that progression in officiating was not automatic.
“It’s all about performance, your appearance at African Championships, your conduct, how you handle pressure; that’s what takes you to the world level,” she stressed.
As a referee, Abigail’s priority is safety and fairness. Armwrestling, she notes, comes with risks, particularly injuries to the wrists, elbows, shoulders and arms.
“If athletes don’t follow the rules or refuse to listen to officials, injuries can happen,” she explains, adding that focus was everything.
Before every match, she ensures that all equipment which includes elbow pads, hand pegs and table alignment were properly set. Athletes are not allowed to cover their elbows, must grip correctly, and must follow the referee’s commands precisely.
“We make sure everything is fixed before the grip,” she says. “Once we say ‘Ready… Go’, there should be no confusion.”
She is also firm on discipline. Warnings are issued for infractions, and repeated misconduct attracts penalties.
“The referee must be respected, if you don’t listen, the rules will deal with you,” she says.
Abigail credits her confidence partly to her sporting family background. Her mother was a volleyball player, while other family members also participated in sports. Though they were initially concerned about her safety, her rise to the top reassured them.
“They were afraid at first,” she admits. “But they were also very proud, especially because some of them never got the opportunity to reach this level.”
Looking ahead, Abigail is optimistic about the future of Armwrestling in Ghana. In less than a decade, the country has produced African and world-level medalists, a sign, she believes, of great things to come for Ghana.
“Whenever we go out, we come back with medals such as gold and silver,” she says, and to her that was a sign of growth.
In the next five to ten years, Abigail sees herself rising to become a World Master Referee, the highest officiating level in the sport. Until then, her routine remains intense, training four times a week, working closely with athletes, standing on her feet for hours, and constantly refining her understanding of the rules.
“I love this sport,” she says simply. “That love is what keeps me going.”
Abigail encouraged women to be bold and intentional about their place in sports saying “don’t limit yourself because of fear or stereotypes.”
She also urged women to invest in learning, discipline and consistency, stressing that respect was earned through performance.
For Abigail, as Ghana’s armwrestlers continue to make their mark, she will remain where she is most effective at the table, ensuring the game is played right.
By Esinam Jemima Kuatsinu
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As he had promised Aperkeh, the elderly man and his wife and three daughters stopped by Aperkeh’s parents’ house. Mr Amando and his family were preparing to settle in for the night.
“Brother Ben and family”, Mr Joshua Amando said warmly, “although I know you are here on a matter that can hardly be described as joyous, it is still good to see you. You are welcome. Please sit down while I bring you water”.
“Yes, we will take water, even though we are hardly thirsty, because this is our home”.
“Okay, Ben”, he started after they had drank, “Let me go straight to the point. My daughter Priscilla has told me about the goings on between her brother Aperkeh and our daughter Stella.
Before informing me, Priscilla had expressed concern to Aperkeh about some habits he is adopting, especially the late nights and the drinking. She tells me that one Saturday morning, she was there when Stella complained about his drinking and some girls who had come to the house to look for him, and he assaulted her.
I called him and complained, but all he could say was that I don’t know what caused him to react that way, so I could not judge him. Now he does not answer my calls.
I have sent Priscilla to his house to call him, but he has refused to come. Unfortunately, Ben, my son is a much different person than the young boy who completed university and started work at the bank. I am really embarrassed about his treatment of Stella”.
“Joshua, let me assure you that even though what is happening is very unfortunate, it will not affect our relationship.
We have been friends since childhood, and I thought that with their parents’ blessing, the relationship between Aperkeh and Stella would grow to become a blessing to all of us. But there appears to be a real challenge now.
Stella thinks that Aperkeh wants her out of his house, and indeed Aperkeh himself told me that, about an hour ago.
So I’m taking my daughter home. I suggest that you do what you can to straighten him out, but if it does not work out, let’s accept the situation and continue to be one family.
I am sure that being the well behaved girl that she is, Stella will meet a young man who will cherish her. Fortunately, this problem is happening early in the day, so they can sort things out if possible, or move on with their lives if they are unable to stay together”.
“I’m really grateful for that, Ben. I will do my best in the next few days to reason with him, because apart from the relationship with Stella, Aperkeh is risking his job and career with this lifestyle.
A good job and salary offers an opportunity to gather momentum in life, not to destroy yourself”.
“Okay Brother Joshua. We will say goodnight. I hope to hear positive news from you”.
As he descended in the lift from the fourth to the ground floor, Aperkeh wondered who would be waiting at the reception to see him at nine on Monday morning. He had spent good time with both of his new girls during the weekend, so it had to be someone else. He got out of the lift and pulled a face when he saw Priscilla.
“Priscilla”, he said as he sat down by her, “what do you want here? You know Monday morning is a busy time at the bank. I am a very busy person, so say what you want, I have work to do”.
“You are very funny, Aperkeh. You are telling me, your sister, that you have work to do, so I should hurry up? Okay, Dad says I should advise you to come home tonight, because he wants to discuss the issue of Stella with you. He sent me to you twice, and you did not come.
He has tried to call you quite a number of times, but you have refused to answer his calls. He says that if you do not come tonight, you will be very surprised at what he will do. He says you will not like it at all, so better come.
“What is all this? Why won’t you people leave me alone? Stella is very disrespectful. I told her that if she wanted to continue to live in my house, she must obey me. It is that simple.
She chose to continue ordering me about, controlling me in my own house, so I told her that if she could not live under my conditions she should leave. And she left. In fact, her own father came and took her away. So what again?’’
“How did she disobey or control you? Was she complaining about your continuous drinking and late nights? And did you slap her on several occasions because of that? Did you tell her that if she could not live under your conditions she should leave? You actually said that to her father? You have forgotten that before she came to live with you, our two parents met and agreed, and gave it their blessing?’
“Why don’t you leave, Priscilla? I don’t have to listen to all that”. “Okay, I will go. Your father who gave birth to you and educated you to university level sends me to you, and you ask me to leave? I wish you would defy him, and refuse to come home as he’s telling you, because he is planning to give you the discipline you badly need. Let me tell you. Stella is such a beautiful and decent girl, and I assure you that someone will grab her before you say Jack. You are only 30 years old, and you have already become a drunkard”.
As he walked towards the lift, Aperkeh decided on what to do. He would go home, and calmly listen to what his father had to say. The old man was very unpredictable, and he wouldn’t dare ignore him. So he would take all the insults and threats, but as for Stella she was history. According to Priscilla, Stella was beautiful and all that, but she had not seen the two curvaceous princesses who were all over him, ready to do anything he asked. And these were not barely literate waakye girls, but university graduates from wealthy homes, really classy girls. With stuff like that, who needs a waakye girl? He smiled as he took his seat.
A few minutes to five, Aperkeh was packing up to leave for home to meet his dad when his phone rang. It was Priscilla.
“Aperkeh, Dad says you don’t need to bother to come. Stella’s dad says she came to him early this morning to plead that she would rather stay at home than return to your house. She thinks you are already decided to be rid of her, and she does not want to risk being assaulted again. So it’s done. You can go ahead and enjoy the nice life you have started”.
Before he could tell her to go to hell, Priscilla hanged up the line. He was partially stung that his dad had virtually cut him off. The last thing anyone would want was to fall out of relationship with his own family, which had always supported him.
But the truth was he was no longer interested in Stella. What was wrong with going by one’s feelings? He could only hope that one day, his parents and sister would try to reason with him.
By Ekow de Heer
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