Member of Parliament for Bolgatanga Central, Isaac Adongo
Member of Parliament for Bolgatanga Central, Isaac Adongo, has opined that the securitization of future revenues of the Ghana Education Trust Fund (GETFund) by the Nana Addo Dankwa Akufo-Addo-led government will lead to the collapse of the fund.
The Deputy Ranking Member on the Finance Committee of Parliament disclosed this at the maiden lecture under the Coalition for Restoration (CFR) Dialogue Series.
CFR is using the platform to hold discussions on pertinent national issues.
Speaking on the theme: “Ghana’s Economy: A Victim of COVID-19 or Pre-existing Conditions?” the MP admonished the Akufo-Addo administration to control their insatiable quest to balloon the national debt stock through unguided borrowing.
On the securitization of future GETFUND revenues, he remarked that “the proceeds from GETFund is securitized to procure loans and bonds totalling $1.5 billion.
“The recently laid GETFUND formula for 2021 revenue distribution shows clearly the securitization of its future revenues has basically collapsed GETFUND, Adongo stated.
“With outstanding loans and bonds of GH¢1.8 billion by the end of 2020, GETFUND is spending about GH¢1.5 billion to service its debts for 2020 and 2021.”
He continued, “Meanwhile, the total inflows to GETFund for 2020 was about GH¢1 billion with over GH¢600 million spent to service the debt while about GH¢1.4 billion is expected from GETFUND levy to GETFUND with over 60% of it (GH¢860million) to be used to service debts.”
He said it was unfortunate that the arrangement could last between 7 to 10 years.
“Clearly, we have mortgaged and collapsed GETFUND and the dreams of the illustrious Jerry John Rawlings and the NDC in setting up GETFUND is up in smoke, courtesy Bawumia,” he added.
The GETFUND is a public trust set up by an Act of Parliament in the year 2000. Its core mandate is to provide funding to supplement government effort for the provision of educational infrastructure and facilities within the public sector from the pre-tertiary to the tertiary level.