Adongo Urges Political Neutrality In $1.46 Billion Heritage Fund Review
Mr Isaac Adongo, Chairman of Parliament’s Finance Committee, has called for the review of Ghana’s $1.46 billion Heritage Fund to be insulated from political interference to protect petroleum revenues for future generations.
He said the review, which was due 15 years after the establishment of the Ghana Heritage Fund, required a deliberate national approach that prioritised long-term economic interests over short-term political considerations.
Mr Adongo, also Member of Parliament for Bolgatanga Central, made the call at a ceremony marking the 15th anniversary of the Public Interest and Accountability Committee (PIAC).
He cautioned that political leaders could be tempted to utilise petroleum revenues saved in the Fund to secure immediate political benefits, potentially undermining the country’s long-term financial security.
“If you leave us as politicians, we would like to take the money, spend it now, make a good name, and leave an empty bucket for you,” he said.
The Ghana Heritage Fund is a sovereign wealth fund established under the Petroleum Revenue Management Act, 2011 (Act 815), to save part of the country’s petroleum revenues for the benefit of future generations.
Under the Act, withdrawals from the Fund are restricted for an initial 15-year period, after which the restriction is subject to review.
Section 10(4) of the Act provides that Parliament may pass a resolution to allow the transfer of a portion of the interest earned on the Fund, while restrictions on withdrawals are subject to periodic review.
Mr Adongo said the review should strengthen, rather than weaken, the safeguards governing the Fund and Ghana’s commitment to intergenerational savings.
“Let’s pray that that review doesn’t stop the Heritage Fund altogether,” he said.
He called for a clearly defined national position on what Ghana sought to achieve from the review, saying decisions on the Fund should not be driven by short-term political considerations.
The Finance Committee Chairman said Ghana’s management of petroleum revenues differed significantly from that of Norway, which had invested a substantial portion of its oil revenues in a sovereign wealth fund for future generations.
He said Ghana had allocated a significant proportion of its petroleum revenues to present consumption, leaving fewer resources available to build long-term financial buffers.
“We need to have a conversation as to how to truly build a sovereign wealth fund,” he said.
Mr Adongo suggested that Ghana could consider mechanisms to deliberately set aside a portion of petroleum revenues to increase the resources invested for future generations.
He said the issue had become more critical as Ghana had already spent 15 years of its petroleum production period, making stronger safeguards necessary to preserve the country’s petroleum wealth.
He urged stakeholders to ensure that the review of the Heritage Fund produced stronger protection for intergenerational equity and sustained the Fund’s role as a long-term national financial buffer.
The anniversary was held on the theme: “PIAC at 15: Advancing Resource Governance through Transparency and Accountability for Sustainable Development.”Mr Isaac Adongo, Chairman of Parliament’s Finance Committee, has called for the review of Ghana’s $1.46 billion Heritage Fund to be insulated from political interference to protect petroleum revenues for future generations.
He said the review, which was due 15 years after the establishment of the Ghana Heritage Fund, required a deliberate national approach that prioritised long-term economic interests over short-term political considerations.
Mr Adongo, also Member of Parliament for Bolgatanga Central, made the call at a ceremony marking the 15th anniversary of the Public Interest and Accountability Committee (PIAC).
He cautioned that political leaders could be tempted to utilise petroleum revenues saved in the Fund to secure immediate political benefits, potentially undermining the country’s long-term financial security.
“If you leave us as politicians, we would like to take the money, spend it now, make a good name, and leave an empty bucket for you,” he said.
The Ghana Heritage Fund is a sovereign wealth fund established under the Petroleum Revenue Management Act, 2011 (Act 815), to save part of the country’s petroleum revenues for the benefit of future generations.
Under the Act, withdrawals from the Fund are restricted for an initial 15-year period, after which the restriction is subject to review.
Section 10(4) of the Act provides that Parliament may pass a resolution to allow the transfer of a portion of the interest earned on the Fund, while restrictions on withdrawals are subject to periodic review.
Mr Adongo said the review should strengthen, rather than weaken, the safeguards governing the Fund and Ghana’s commitment to intergenerational savings.
“Let’s pray that that review doesn’t stop the Heritage Fund altogether,” he said.
He called for a clearly defined national position on what Ghana sought to achieve from the review, saying decisions on the Fund should not be driven by short-term political considerations.
The Finance Committee Chairman said Ghana’s management of petroleum revenues differed significantly from that of Norway, which had invested a substantial portion of its oil revenues in a sovereign wealth fund for future generations.
He said Ghana had allocated a significant proportion of its petroleum revenues to present consumption, leaving fewer resources available to build long-term financial buffers.
“We need to have a conversation as to how to truly build a sovereign wealth fund,” he said.
Mr Adongo suggested that Ghana could consider mechanisms to deliberately set aside a portion of petroleum revenues to increase the resources invested for future generations.
He said the issue had become more critical as Ghana had already spent 15 years of its petroleum production period, making stronger safeguards necessary to preserve the country’s petroleum wealth.
He urged stakeholders to ensure that the review of the Heritage Fund produced stronger protection for intergenerational equity and sustained the Fund’s role as a long-term national financial buffer.
The anniversary was held on the theme: “PIAC at 15: Advancing Resource Governance through Transparency and Accountability for Sustainable Development.”
