Dr. Gideon Boako, the Member of Parliament for Tano North, has accused President John Mahama of peddling untruths about the balance in the sinking fund account.
According to Dr. Boako, President Mahama has been using outdated information to mislead the public about the state of the sinking fund account.
Mahama On Sinking Funds
President John Mahama had disclosed that Ghana’s Sinking Fund holds a balance of just $64,000 and GHS143,000, contradicting claims by the previous Akufo-Addo administration that it left substantial reserves for debt repayment.
Delivering his first State of the Nation Address (SONA) of his second term on Thursday, February 27, 2025, President Mahama addressed the financial situation inherited from his predecessor.
“There have been claims that buffers were left for ongoing debt repayments in 2025. The Sinking Fund shows a balance of only $64,000 in the dollar account and GHS143,000 in the Cedi account,” Mahama revealed.
He further highlighted the country’s mounting debt burden and the challenges ahead in stabilizing the economy.
“The repercussions of the accumulation and the economic mismanagement will require extensive work and sacrifices to repair,” he stated.
According to the President, Ghana’s debt servicing over the next four years will total GHS280 billion—comprising GHS150 billion for domestic debt and GHS130 billion for external debt servicing.
“In the next four years, our debt servicing will amount to GHS280 billion and comprises GHS150 billion for domestic debt and GHS130 billion in external debt servicing,” Mahama emphasized.
NPP Reaction
In Reaction to the President’s statement on the Sinking Fund, Dr. Boako, who was once a Technical Adviser to the Vice President, Dr Mahamudu Bawumia, revealed that he had challenged the government weeks ago to publish the current balance in the sinking fund account, but they had refused to do so.
Instead, the government has been using the balance in the account as of August 2024, when the previous government made its third payment to domestic bondholders.
Dr. Boako pointed out that this information is outdated and does not reflect the current state of the sinking fund account.
He noted that there were significant build-ups in the account between August 2024 and January 2025, which the government has failed to disclose.
Furthermore, Dr. Boako accused President Mahama of cleverly refusing to mention the date of the balance he was referring to, to avoid revealing the truth.
Dr. Boako emphasized that the government has a responsibility to be transparent and honest with the public and that it is unacceptable to peddle falsehoods and mislead the public.
Dr. Boako also highlighted the fact that the previous government had left behind significant buffers, including an auction excess of over GHc700 million and GHc3 billion in end-of-year revenue.
He argued that it is untrue to claim that there were no significant buffers left behind by the previous government.
Dr. Boako concluded by calling on the government to publish the current balance in the sinking fund account and to stop peddling falsehoods.
He emphasized the importance of transparency and honesty in governance and urged the government to approach governance from a standpoint of truth.
-BY Daniel Bampoe
