The Institute for Energy Security (IES) says Government’s attempt to utilise the Ghana Heritage Fund (GHF) to fight the Coronavirus pandemic cannot be justified; and, as such, doing so will leave future generations with a burden too huge to carry.
Speaking on the floor of Parliament today, Finance Minister, Ken Ofori-Atta proposed the amendment of the Petroleum Revenue Management Act to allow the government to utilize portions of the Ghana Heritage Fund.
However, the Ghana Heritage Fund, IES argues, was created to set aside a portion of petroleum revenue for the benefit of future generations, and therefore must not be used to fight the COVID-19 crisis.
“IES vehemently opposes government’s decision to drain the only fund intended to provide an endowment to support development of unborn generations when the petroleum reserves have been depleted.
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“Any attempt to go close to the Ghana Heritage Fund will be seen as an assault on the well-being of future generations, a wholesale theft of the prospects of generations to come; and as a result will be met with stiff resistance,” its Executive Director, Paa Kwasi Anamua Sakyi said in a statement.
According to IES, it is saddened but not surprised, and pointed to a high level of indiscipline in the energy sector – particularly when it comes to making financial and economic decisions. It therefore described the request to Parliament as only consolidating that level of indiscipline and amassing huge debts which will eventually be borne by the ordinary Ghanaian.
While acknowledging that the world in general and Ghana in particular is experiencing extraordinary times in recent history due to the coronavirus pandemic, the statement warned that it should, however, not be a launch-pad for government to unnecessarily engage in implementing measures that are “short-sighted and lack robustness, and come with negative ramifications for the future”.
The IES also explained that the fight against the novel coronavirus does not fall under any of the circumstances under which the fund can be used; and that the attempt to tap into the Ghana Heritage Fund – if successful – will therefore rob future generations of the endowment once all the petroleum resources have been depleted.
The energy think-tank continued by saying, ideally, it said, the Ghana Infrastructure Investment Fund and the Contingency Fund are also meant for circumstances like the current situation.
“Government must tell Ghanaians the status of the Ghana Infrastructure Investment Fund and Contingency Fund. Why did government stop placing petroleum revenue into those funds? If only government was not reckless in stopping payment into the funds, there would have being enough money in there to use in such extraordinary times,” Mr. Anamua Sakyi lamented.
Additionally, the IES – which described the proposal as disgusting – noted that it is surprised that while in opposition the current government vehemently opposed utilisation of the Heritage Fund but now wants to do the same.
ALL YOU NED TO KNOW ABOUT THE GHANA HERITAGE FUND
The Heritage Fund is a creation of section 10 of the Petroleum Revenue Management Act 815 enacted in 2011.
The purpose of the establishment of this fund is to provide an endowment to support the development of future generations when the petroleum reserves have been depleted according to Act 815 (2011) and amended Act 893 (2015).
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The fund receives a percentage of oil revenue accrued to the Petroleum Holding Fund.
In view of this Parliament of Ghana pegged this figure at 9%. This means that out of the total oil revenue received into the Petroleum Holding Fund the Heritage Fund receives only 9%.
