The Civil and Local Government Staff Association, Ghana (CLOGSAG) has called on the government to take a critical look at its flagship programs. Noting that, such was key as part of efforts to reduce the country’s debt burden not the domestic debt exchange programme as issued in a statement on Sunday, December 4, 2022, by the Hon. Ken Ofori-Atta, the Minister of Finance on Ghana’s Domestic Debt Exchange.

CLOGSAG, like a number of labour groups and other interested parties has rejected Ghana’s Domestic Debt Exchange programme launched by the government on Monday, December 5, 2022, as part of efforts to reduce the country’s debt burden.

The Association attributed the root causes of the current economic crisis of the country to; appointment of political misfits into public offices, intrusion of party apparatchiks and “goro” boys to rival Civil and Local Government Services activities, etc.

It further recommended, among other things, that when drastic actions are taken to address the above mentioned and government undertake patriotic steps to sacrifice some flagship programmes such as; Planting for Food and Jobs (PFJ), Youth Employment Agency (YEA) Recruitment and Free Senior High School Educational Policy, the ailing economy could be restored.

Acknowledging that the free Senior High School Educational Policy is a good initiative, it was quick to note that the policy should be revised to cater for the needy children in the country who qualify for and placed in public senior high schools for their Secondary education.

These were revealed at a press conference in Accra to disclose CLOGSAG’s stance on Ghana’s Domestic Debt Exchange.

The Association, citing relevant sections of the Finance Minister’s Statement (Paragraphs 2 and 4), juxtaposed them with appropriate sections of the National Pensions Act, 2008 (Act 766).

The Executive Secretary, CLOGSAG, Mr. Isaac Bampoe Addo, speaking at the press conference, noted with reference to Section 98 of the National Pensions Act, 2008 (Act 766) that “pension funds ought to be viewed as contributions of individuals”.

Section 98 posits;

98. (1) A contribution in respect of a member of a scheme vests in the member as accrued benefits as soon as it is paid to the approved trustees of the scheme.

(2) Income or profits derived from the investment of the accrued benefits of a member of a scheme by or on behalf of the approved trustee of the scheme shall, vest in the member as accrued benefits when received by that trustee after taking into account any loss arising from the investment.

Mr. Bampoe Addo with reference to paragraph 4, of the Finance Minister’s statement, “individual holders of bonds will not be affected”, said, “we state categorically that Pension Funds are individual investments. Per the pronouncement by the Hon. Minister of Finance, pension funds for individual holders are exempted from the Debt Exchange Programme”. Emphasizing, “the individual contributions and earnings in the Pension Fund vest in the individual and NOT the Trustee”. Therefore, he said, a decision on any variation is the responsibility of the individual and not the Trustee who is managing the Fund”.

Paragraph 4, of the Finance Minister’s statement reads;

In line with this:

“Treasury Bills are completely exempted all holders will be paid the full value of the investments on maturity;

 There will be NO haircut on the principals of bonds;

Individual holders of bonds will not be affected”.

Quoting Section 102 on the Protection of accrued benefits, he explained that pension funds cannot be used for the Domestic Debt Exchange Programme.

Section 102 on the Protection of accrued benefits states;

102. (1) “The accrued benefits of a member in an occupational pension scheme shall not be attached in execution of a judgement debt or be used as a charge, pledge, lien, or be transferred, assigned or alienated by or on behalf of the member.

(2) A disposition that is contrary to subsection (1) is void”.

According to the Executive Secretary, the call by the Association served as a soft reminder to government on the provisions in the National Pensions Act, 2008 (Act 766). Saying, “if these provisions in the National Pensions Act, 2008 (Act 766) have escaped the Government, CLOGSAG would wish to draw the attention of Government to these important provisions”.

“CLOGSAG is serving notice on the National Labour Commission (NLC) that should Government default in honouring any of the coupons, when due for the Schemes, it would declare an indefinite Nationwide Strike”, he stressed.

The Association, however, entreats its members to be calm and go by their normal duties and continue to contribute to good governance in Ghana.