Delay assent to bill

-Finance Ministry fears withholding of $3.8billion 

-President says he will await Supreme Court decision

By Elvis DARKO, Accra

The Finance Ministry is concerned that Ghana risks losing $3.8 billion in World Bank financing over the next six years if President Nana Akufo-Addo assents to the anti-LGBTQI+ Bill for it to become law.

The Ministry is therefore urging President Akufo-Addo to delay the signing the Bill into law as it may cost the country greatly.

Responding to the concerns, President Nana Akufo-Addo has urged Ghanaians to wait for the decision of the Supreme Court regarding a lawsuit challenging the Anti-LGBTQI+ Bill before any action is taken on the Bill.

He revealed that it has come to his notice that a challenge has been mounted by a concerned citizen on the constitutionality of the proposed legislation.

Reacting to the calls on him to sign the Bill into law, the President, during a Diplomatic New Year Greetings with members of the Diplomatic Corps yesterday, was emphatic that the operation of the institutions of the Ghanaian state will determine the future trajectory of the rule of law and human rights compliance of Ghana.

In a brief posted on Facebook by Eugene Arhin, Communications Director at the Presidency, President Akufo-Addo said the passage of the Bill raised considerable anxieties in certain quarters of the diplomatic community.

He said the Bill also raised concerns among some friends of Ghana that the country may be turning its back on the enviable, long-standing record on human rights observance and attachment to the rule of law.

“I want to assure you that no such back-sliding will be contemplated or occasioned.” He decided not to go into the origin of the Bill, which he said is yet to reach his desk.

Sources say the World Bank has written to the Minister of Finance, Dr. Mohammed Amin Adam, warning that the passage of the bill could jeopardize the World Bank’s funding for Ghana.

The United States of America, United Kingdom, and human rights groups have already condemned the bill, which was unanimously passed.

Days after the bill was passed, the Ministry outlined the negative implications of the document on its expenditure, key government plans, and projects.

These risks include a potential loss of $850 million in budgetary support from the World Bank this year alone.

Breakdown of potential financial implications

In the 5-page document, the Ministry explained that for 2024 Ghana will lose $600 million in budget support and $250 million for the Financial Stability Fund.

The Ministry also pointed out that the expected $300 million financing from the First Ghana Resilient Recovery Development Policy (Operation Budget Support), which is currently pending Parliamentary approval, might not be disbursed by the Bank when it is approved by Parliament.

It also said that ongoing negotiations on the Second Ghana Resilient Recovery Development Policy Operation (Budget Support) amounting to $300 million may be suspended.

The leaked letter also referred to the suspension of disbursement of undisbursed amounts totaling $2.1 billion for ongoing projects and the suspension of preparation of pipeline projects and declaration of effectiveness for two projects totaling $900 million.

President Nana Akufo-Addo has seven days after receiving the bill to decide whether to sign it into law and if he doesn’t, 14 days to give reasons. Already, some human rights groups in Ghana have threatened to head to the Supreme Court if President Akufo-Addo gives assent to the Proper Human Sexual Rights and Ghanaian Family Values bill.

Last week, Parliament approved the bill aimed at severely curtailing LGBTQI+ rights, drawing condemnation from rights activists despite gaining wide support in the conservative West African state.

It stipulates jail terms of six months to three years for engaging in LGBTQ sex and sentences of between three to five years for promoting or sponsoring LGBTQ activities.

Ghana experienced its worst economic crisis in decades starting in 2022 as inflation surged to over 54%, forcing the government to seek an International Monetary Fund (IMF) relief program and debt restructuring.

The Ministry argued that this will negatively impact Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore up the country’s reserve position.

On the impact the parliamentary action is likely to have on the IMF Programme, the finance ministry says “while there is no direct conditionality in the IMF-ECF Programme relating to the passage of the Bill, the principles of the current IMF-ECF Programme are built on predictable financing from Development Partners (Financing Assurances) including the World Bank funded Ghana Resilience Recovery Development Policy Operations.

Hence, the non-disbursement of the budget support from the World Bank will derail the IMF programme.

This will, in turn, trigger a market reaction that will affect the stability of the exchange rate” the finance ministry brief indicted.

In August 2023, the World Bank declared that it would halt new lending to the Ugandan government after concluding that its anti-LGBTQ law, which had been condemned by many countries and the United Nations, contradicts the bank’s values.

“No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested,” the World Bank said in a statement according to an August 8, 2023 report by Reuters.

The report said that such measures were now under discussion with Ugandan authorities.

“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality,” the World Bank further stated.