Felix Kwakye Ofosu Refutes Claims of Buffer Funds for GH¢6 Billion Bondholder Payments
Accra, Ghana – February 19, 2025
Minister of State for Government Communication, Felix Kwakye Ofosu, has dismissed claims by former Finance Minister, Dr. Mohammed Amin Adam, regarding the source of funds used to pay GH¢6 billion to bondholders.
At a press conference on Wednesday, Mr. Ofosu refuted assertions that the payments were made possible due to buffers left by the previous New Patriotic Party (NPP) administration. He challenged Dr. Amin, the Member of Parliament for Karaga, to provide evidence of these alleged buffers within the sinking fund.
Where Are the Buffers?
Mr. Ofosu demanded clarification on the specific location of the supposed buffers, arguing that no significant reserves were left behind by the previous administration.
“For officials of the former government to claim that these payments resulted from their work, they need to point specifically to where those buffers were located. In order to pay the money, you need to find it and lodge it somewhere. That is what you call a buffer—pending payment at a given date,” he asserted.
NPP’s Counterclaim
Dr. Mohammed Amin Adam had earlier suggested that the swift payment of the fourth coupons to bondholders was facilitated by financial groundwork laid by the NPP administration. He argued that the New Patriotic Party ensured a seamless continuation of these payments through strategic financial planning.
Rebuttal with Financial Records
In response, Mr. Ofosu presented financial records from the debt service reserve account, revealing that the last recorded transaction in the dollar-denominated account under the NPP government occurred on October 22, 2024, with a balance of only $64,387.
He elaborated, “Using an estimated exchange rate of 15, this amount would translate to around GH¢800,000—far below what was required for the bondholder payments. We are talking about payments within the range of GH¢6 billion. And you and I know that $64,000 cannot amount to GH¢6 billion.”
Political and Economic Implications
This political dispute over the source of funds for bondholder payments comes amidst a broader debate on Ghana’s debt management and fiscal responsibility. It also reflects the ongoing political rivalry between the National Democratic Congress (NDC) and the New Patriotic Party (NPP).
Next Steps
The Ministry of Finance is expected to release a detailed statement on the source of funds used for the bondholder payments. Meanwhile, political analysts anticipate continued public discourse as both parties defend their economic stewardship.
