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US lawmaker urges IMF to direct next Ghana disbursement towards settling debts owed to American firms
The Chairman of the United States House Foreign Affairs Committee, Brian Mast, has called for a portion of Ghana’s next International Monetary Fund (IMF) disbursement to be directly allocated to settling outstanding debts owed to Independent Power Producers (IPPs), including facilities partly owned by U.S. pension funds and taxpayers.
In a letter addressed to U.S. Treasury Secretary Scott Bessent, Chairman Mast expressed concern over what he described as Ghana’s continued failure to honour financial commitments under its ongoing IMF-supported programme.
“I now recommend that the United States Executive Director to the IMF, once appointed and confirmed, formally request that a specific portion of the next IMF disbursement to Ghana be explicitly directed towards settling outstanding payments owed to the IPPs,” he stated.
The recommendation follows growing disquiet over Ghana’s ballooning arrears to Independent Power Producers, including power generation facilities owned by US pension funds and US taxpayers, a situation many fear threatens the stability of the power sector and investor confidence.
According to Chairman Mast, although recent payments made by the Electricity Company of Ghana (ECG) to American-affiliated IPPs — Twin City Energy and Early Power Ltd. — marked some progress, they fell short of expectations. Each company reportedly received about $5.5 million, below the anticipated $7.5 million. These payments, made in Ghana Cedis, were nonetheless seen as a slight improvement from previous disbursement patterns.
The letter also referenced a recent economic briefing by former President John Mahama’s advisory team, which outlined key priorities for economic recovery.
These include rebuilding reserves, ring-fencing certain funds, and refinancing government obligations. However, Mast expressed scepticism about the government’s actual commitment to tackling the IPP debt burden.
“President Mahama does not appear to be listening to his advisors as proposed solutions – like ring-fencing – remain mere talking points,” Mast stated, adding that the government’s push to rebuild reserves might conflict with the urgent need to clear power sector arrears.
He further warned that continued failure to prioritise these obligations could discourage American investors and deepen the operational crisis faced by IPPs.
“I believe such a measure is essential to keeping American investors interested in Ghana, addressing the ongoing financial strain on IPPs and ensuring the stability of Ghana’s power sector,” he stressed.
The IMF’s next programme review mission to Ghana is expected in April, ahead of potential Board action in June. Chairman Mast’s intervention echoes calls made during the 118th U.S. Congress to condition previous IMF support on the resolution of IPP arrears.
Read the full letter below:
Dear Secretary Bessent,
This letter provides an update on concerning recent developments regarding payments owed to Independent Power Producers (IPPs) in Ghana and the Government of Ghana’s failure to uphold its commitments to IPPs under the terms of its most recent International Monetary Fund (IMF) program. Among these IPPs are two power generation facilities owned by U.S. pension funds and the U.S. taxpayer.
An American investor recently noted that the Electricity Company of Ghana (ECG) processed two payments each to Twin City (TCE) and Early Power Ltd. (EPL) in Ghana Cedis. While these payments, estimated at approximately $5.5 million each, are a significant improvement compared to previous periods they remain below the anticipated $7.5 million due to each entity.
On Wednesday January 29th, President John Mahama’s advisory team outlined his current administration’s economic priorities to investors. These include rebuilding the nation’s creditworthiness, building up reserves, potentially ring-fencing certain funds, and refinancing facilities to improve the government’s repayment profile. They expressed a strong focus on the power sector and highlighted efforts to rebuild the cash waterfall mechanism, taking credit for its original design. While they mentioned actively working to smooth out repayments and possibly moving certain debts to external facilities for greater confidence, they did not specifically commit to applying this approach to the power sector debt.
President Mahama does not appear to be listening to his advisors as proposed solutions – like ring-fencing – remain mere talking points. Additionally, the acknowledged scarcity of government funds suggests that the focus on rebuilding reserves might impede the simultaneous clearing of existing arrears owed to IPPs.
The IMF program, which was designed to stabilize Ghana’s economy and restore fiscal discipline, included explicit commitments to honoring financial obligations to these providers. I understand that the next IMF field report will be completed in April, following an expected in-country mission during the coming days and in preparation for potential IMF Board action in June.
Given this context and recalling House Foreign Affairs GOP engagement from the 118th Congress, which advocated for conditioning the December 2023 IMF tranche on the resolution of IPP arrears, I now recommend that the United States Executive Director to the IMF, once appointed and confirmed, formally request that a specific portion of the next IMF disbursement to Ghana be explicitly directed towards settling outstanding payments owed to the IPPs.
I believe such a measure is essential to keeping American investors interested in Ghana, addressing the ongoing financial strain on IPPs and ensuring the stability of Ghana’s power sector.
Source: Graphic online
General News
Ghana to Host UN High-Level Reparatory Justice Event — Mahama Calls for Historical Accountability
Ghana is set to host a high-level special event on reparatory justice later this month at the United Nations, reinforcing global calls for justice for the transatlantic slave trade and racialized chattel enslavement of Africans.
During a state luncheon held in honor of visiting Prime Minister of Saint Kitts and Nevis, Hon. Dr. Terrance Michael Drew, President John Dramani Mahama emphasized that the initiative is not about charity but about historical justice and accountability.
Speaking on the significance of the event, President Mahama said the legacy of slavery continues to shape global inequalities and must be addressed through collective international action.
“The transatlantic and racialized chattel enslavement of Africans constitutes one of the gravest crimes against humanity in history,” President Mahama stated. “Our call is not for charity. It is for justice rooted in truth, accountability, and recognition of the suffering endured by our ancestors.”
According to the President, the upcoming UN event will provide a platform for African and Caribbean nations to shape their own narrative about historical injustices. He stressed the importance of unity between Africa and the Caribbean in advancing reparatory justice discussions.
“It is time for our story to be told by us — grounded in truth, anchored in historical accountability, and driven by the determination to correct the injustices of the past,” he said.
Mahama further urged stronger solidarity between African and Caribbean nations, noting that shared historical experiences should translate into stronger diplomatic and policy collaboration.
“Together, Africa and the Caribbean must speak with one voice, with clarity, unity, and strong moral conviction,” he added.
The Ghanaian government believes that the event will strengthen global dialogue on reparatory justice, development cooperation, and cultural restoration. Officials say the initiative aligns with broader efforts to promote historical recognition and sustainable partnerships between nations affected by the transatlantic slave trade.
Uncategorized
Duabo King Arrested for Claiming Police Personnel Patronize Prostitutes More Than Any Sector
The Ghana Police Service has arrested a 45-year-old social media personality, Isaac Boafo, popularly known as “Duabo King,” for allegedly publishing false news with intent to cause fear and panic.
In a press release issued on March 1, 2026, the Ashanti Regional Police Command confirmed that the suspect was apprehended following a viral TikTok video in which he alleged that four officers stationed at the Central Police Station in Kumasi engaged in inappropriate conduct with commercial sex workers during night patrol duties at Asafo.
Duabo King had claimed in the video that personnel within the Ghana Police Service patronizes prostitutes more than any other sector in the country. He further alleged that if the government were to shut down prostitution, popularly known in West African Pidgin as “ashawo”, it would significantly affect the Service because its personnel patronizes the trade the most.
According to the statement signed by Deputy Superintendent of Police Godwin Ahianyo, Head of the Public Affairs Unit for the Ashanti Region, officers from the Police Intelligence Directorate acted on intelligence to arrest the suspect.
During interrogation, Isaac Boafo admitted publishing the video and described himself as a social media content creator who made the allegations solely to attract views and online engagement. He further acknowledged that he could not substantiate the claims made against the officers.
The Police added that the suspect also admitted making comments concerning the President of the Republic for content creation purposes and stated that he could not defend those statements.
He has since been formally charged and detained to assist with further investigations.
The Service cautioned the public against the publication and circulation of false information, especially on social media, warning that such acts have the potential to cause unnecessary fear, panic, and reputational damage. Individuals found engaging in such conduct, the statement noted, will be dealt with in accordance with the law.
General News
Poor Sanitation Costs Ghana GHS 6.2 Billion Yearly – ISSER Study
Ghana loses more than GHS 6.2 billion every year due to diseases linked to poor waste management and sanitation, a new study by the Institute of Statistical, Social and Economic Research at the University of Ghana has revealed.
The findings were presented at a high-level stakeholder engagement in Accra, on Thursday, 26th February 2026, where policymakers, Members of Parliament, local government officials, development partners and private sector actors gathered to examine the economic case for increased sanitation investment.
The research, led by Prof. Peter Quartey and Dr. Kwame Adjei-Mantey, is titled “An Economic Analysis of the Benefits of Adequate Investment in Waste Management and Sanitation in Ghana.” It assessed both the economic and social consequences of current sanitation practices and modelled the potential gains from improved financing.
According to the study, five diseases closely associated with poor sanitation malaria, cholera, pneumonia, typhoid fever and diarrhoea account for nearly 31.9 million lost workdays each year and an estimated 177,222 deaths. The researchers calculated direct medical costs at about GHS 5.8 billion annually, with an additional GHS 650 million lost through reduced productivity, bringing the total burden to over GHS 6.2 billion.
Despite these losses, Ghana currently spends an average of about GHS 38 per tonne of waste generated. The researchers described this as modest compared to the scale of the health and economic damage linked to poor sanitation systems.
Using cost-benefit modelling, the team found that under the current business-as-usual approach, every GHS 1 invested in waste management generates about GHS 180 in economic returns. However, under a best-case scenario — where investment rises to approximately GHS 1,028 per tonne in line with lower-middle-income benchmarks returns could increase to GHS 556 per GHS 1 invested.
In total terms, projected national benefits under the enhanced investment scenario could reach about GHS 58 billion in 2025 and rise further to GHS 67.2 billion by 2032. The projected gains are driven largely by sharp reductions in disease incidence, mortality and productivity losses.
Presenting the findings, Prof. Quartey urged government to stop treating sanitation as a residual expenditure. He stressed that waste management must be viewed as a high-return development investment capable of protecting public health and strengthening economic growth.
The presentation was followed by an extensive question-and-answer session. Participants raised concerns about how much of the disease burden could be directly attributed to waste. The research team explained that their modelling relied on global health data and assumed that about 45 percent of the selected disease cases were attributable to waste exposure. Sensitivity analysis was conducted to test different attribution levels.
Stakeholders also questioned whether the best-case scenario reflected on-the-ground realities, especially in slum and rural communities where waste collection remains inconsistent. Prof. Quartey acknowledged that waste management in such areas is more complex and costly due to access challenges. He noted that flexible and smaller-scale collection systems may be required rather than a uniform national model.
Other concerns focused on uncollected waste and dumping in drains and water bodies. The researchers explained that their modelling incorporated standardized ranges for lower-middle-income countries, taking into account infrastructure gaps and collection inefficiencies.
Members of Parliament present at the forum emphasized the need for stronger coordination across agencies. While some suggested the creation of a National Sanitation Authority, others cautioned against expanding bureaucracy and proposed strengthening existing institutional structures instead.
Education and job creation also featured prominently in the discussion. Prof. Quartey highlighted earlier regional research on green jobs and recycling, stressing that investment in skills development and public awareness could help unlock employment opportunities in the waste sector.
The research team concluded that Ghana’s annual sanitation-related losses far exceed current spending levels. They called for increased and sustained investment, targeted interventions in high-risk communities, and stronger data and budgeting systems within Metropolitan, Municipal and District Assemblies to ensure sanitation is prioritized as a central pillar of national development.
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