NPP Halted Sinking Fund Contributions and Depleted Reserves – Terkper
Economic advisor cites violations of key fiscal laws and missed debt safeguards.
- Terkper accuses NPP of halting payments into the Sinking Fund and draining both fiscal reserves
- Says mismanagement of funds contributed to Ghana’s debt default
- Current government is restoring the funds and ensuring legal compliance
Seth Terkper, Economic Policy Advisor at the Office of the President, has leveled serious accusations against the former New Patriotic Party (NPP) government, claiming it halted contributions to Ghana’s Sinking Fund and drew down both the Sinking and Stabilisation Funds during its time in office.
In an interview on Monday, June 30, Terkper stated that the NPP administration depleted these key financial reserves, even though it benefited from revenues generated by three producing oil fields.
When pressed on whether the Sinking Fund had indeed been suspended under the NPP, Terkper responded, “Yes, they stopped it. They drew down, despite three oil fields.”
He pointed out that the current administration under President John Dramani Mahama is actively working to rebuild the Sinking Fund—primarily designated for debt repayments—as well as the Stabilisation Fund, which acts as a buffer during economic turbulence.
“We’re rebuilding the Sinking Fund and the Stabilisation Fund,” Terkper said. “These are structural measures essential for sustaining short-term fiscal gains.”
Terkper criticized the previous government for failing to replenish the funds after using them, particularly during the COVID-19 pandemic, and argued that this misstep significantly contributed to Ghana’s eventual debt default.
“If the debt repayment account had been restored and used properly, we wouldn’t have defaulted,” he contended.
He concluded by affirming the current government’s commitment to financial discipline, noting that it is abiding by key laws such as the Public Financial Management Act and the Petroleum Revenue Management Act by resuming consistent contributions to the funds. “We’re complying,” he said.
