IMF bailout: NPP will renegotiate looming workers layoff in 2017 – Gabby

A New Patriotic Party-led administration would renegotiate a mass retrenchment exercise planned for 2017 by the governing NDC under the IMF bailout, Gabby Asare Otchere-Darko reveals. According to the former Executive Director of pro-opposition think-thank, Danquah Institute, the government has delayed laying off workers for fear of losing votes in the 2016 general elections. The layoff is targeted at helping the government to meet its economic transformation targets required under the IMF programme, Gabby said on Joy FM/Multi TV's current affairs programme, Newsfile on Saturday. In his exposé at the recent Distinguished Speakers series by the Central University College, NPP vice presidential aspirant, Dr. Mahamudu Bawumia predicted a massive retrenchment come 2017 after government surreptitiously baits Ghanaians to get their mandate in 2016. "My understanding is that government wants the IMF agreement to delay the worker layoffs until after the 2016 election. I wonder why? I suppose the message is ‘vote for me before I fire you’,” he posited in a 70-paged presentation in March. The IMF Executive Board approved a three-year Extended Credit Facility (ECF) programme for Ghana in April 3, 2015. Ghana is expected to benefit from a US$ 918 million under the facility which US$114 million is expected to hit the coffers of the Bank of Ghana soon. Immediately after Dr. Bawumia’s lecture, the NPP presidential aspirant Nana Akufo-Addo exclusively told Joy News his government will respect a binding agreement with the IMF but will not hesitate to renegotiate part of the agreement if it becomes necessary. Nana Akufo-Addo’s position to renegotiate the agreement, Gabby Otchere-Darko explained was in reference to the impending retrenchment exercise. He stated: “So if you hear the leader of the main opposition party saying, we will seriously look at renegotiating the IMF deal, I think that is basically what the NPP is saying. “And I think they will have the space to do so because it is widely accepted in this country and outside this country that based on records that in terms of policy credibility, the NPP is better than the NDC, in terms of managing the economy.” Gabby is also doubtful that Ghana will be able to receive all the money promised under the bailout in the next three years. “The fear is because there is a serious deficit in [the country’s] policy credibility,” he said, casting doubt on government’s ability to maintain fiscal discipline. Presidential staffer, Clement Apaak said even though anything could be possible should the NPP take over of power so far as the IMF programme is concerned, plan by the NPP to renegotiate the bailout does not speak well for the country, and accused the NPP of making propaganda out of the programme. He was however excited that in spite of the “cynicisms” and “doom saying” by critics, the IMF approved the programme based on government’s own outlined by activities.

Credit: Myjoyonline.com