Member of Parliament for Ofoase Ayirebi, Kojo Oppong Nkrumah, has cautioned the Finance Minister against admitting dubious or doubtful debts into the national budget, warning that such a move could create opportunities for fraudulent claims against the government.
Speaking on GH One’s State of Affairs on Monday, March 10, 2025, Mr. Oppong Nkrumah argued that inflating the debt stock with unverified claims would not only distort the country’s fiscal position but also provide an avenue for unscrupulous individuals to siphon public funds.
“We advise him, stay true to the economic record. Don’t admit phantom debts and phantom figures that people bring to try and bloat the books,” he stated.
Mr. Oppong Nkrumah cited a precedent under the National Democratic Congress (NDC) administration in 2009, when a new budget line for judgment debts was created. According to him, this policy was abused by certain individuals in what later became known as the “create, loot, and share” scandal.
“The last time they did that, if you recall, in 2009, when they admitted phantom debts and created cost centers for it, it became an avenue for people to put things there and collect money. That’s what the Supreme Court described as create, loot, and share,” he recalled.
The former Minister for Works and Housing and Information under the erstwhile Akufo-Addo administration urged the government to avoid such pitfalls, stressing that admitting dubious debts could lead to unnecessary financial commitments to individuals or entities who are not legitimately owed by the state.
“It is important to avoid admitting dubious or doubtful debts, as this will be exploited by persons who the state doesn’t owe,” he emphasized.
Beyond the risk of financial misappropriation, Mr. Oppong Nkrumah warned that exaggerating the country’s debt position could misrepresent Ghana’s fiscal standing and send negative signals to the financial markets.
“He should keep fidelity with the economic records of the country and avoid spooking the markets with lamentations,” he advised.
His remarks come at a time when Ghana’s economic management remains a subject of intense public debate, with concerns about rising debt levels and fiscal sustainability.
Meanwhile, Finance Minister Cassiel Ato Forson is set to present the 2025 Budget and Economic Policy to Parliament tomorrow.
