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Business & Economy

Fears Rise Over Possible Misuse of GH¢500 Million Contingency Fund for Election Campaign Under the Guise of Relief Aid

Concerns grow that GH¢500 million from the Contingency Fund for drought relief may be diverted for election campaigns instead of addressing the crisis.

Fred Avornyo
Aug 29, 2024

Concerns are growing that the GH¢8.5 billion the government plans to withdraw from the Contingency Fund to combat the effects of the drought in northern Ghana might be diverted for campaign purposes. The Finance Minister, Dr. Mohammed Amin Adam, has formally requested the release of these funds to address the rising threat of food insecurity caused by the severe drought.

This request follows the government’s announcement of an GH¢8.8 billion relief package aimed at supporting farmers affected by the drought. However, many critics argue that the government’s intervention is not well thought through, with fears that the funds could be misused for political campaign activities. There is concern that the relief programmes might be used to benefit those perceived to be aligned with the ruling party or to woo voters, leading to wastage and lack of accountability.

Economist Prof. Patrick Asuming from the University of Ghana Business School believes the government’s plan to raise GH¢8 billion for drought relief is a reactive response after years of neglecting the issue. He told The High Street Journal that he sees the intervention as politically motivated, given the upcoming elections. “I don’t think this is a genuine attempt to solve the problem. I think it’s just clearly because the election is around the corner. It’s an attempt to portray that the government is addressing the issues of farmers,” he said.

The National President of the Peasant Farmers Association of Ghana, Mr. Awal Adugwala, is advocating for broader consultation and long-term solutions to the country’s agricultural challenges, rather than short-term, reactive measures.

In a letter to Parliament’s Finance Committee, Dr. Amin Adam explained that the government is already eight months into the implementation of the 2024 Budget, and the proposed interventions are unplanned expenditures caused by a “force majeure.” He stated that the government cannot fund the GH¢8.36 billion request solely from reallocating existing budget lines. As a result, he is seeking approval to withdraw GH¢500 million from the Contingency Fund, in accordance with the relevant constitutional and legislative provisions.

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