John Mahama
The Ghana Education Trust Fund (GETFund) has launched a robust defence against claims made by former President John Dramani Mahama, who alleged that the Fund had been collateralised and capped, rendering it ineffective.
This comes after the flagbearer of the National Democratic Congress (NDC), John Mahama, claimed that the New Patriotic Party (NPP)’s running mate, Dr. Matthew Opoku Prempeh, who is a former Education Minister, has questions to answer about the management of the Daakye Bond.
During a Youth Forum in Ho on August 13, Mr. Mahama claimed that Dr. Opoku Prempeh oversaw the allocation of GH¢4 billion from the Daakye Bond while serving as Education Minister.
“This person who is the running mate for Dr. Bawumia was the Minister of Education, and he brought a bond to Parliament called the Daakye Bond. It has led to the collateralisation of the GETFund, so this year, total receipt from the GETFund should amount to about GH¢7 billion. About GH¢4 billion of that was taken in the Daakye Bond by Napo and his Ministry of Education,” he said.
“Tell me what was that money used for? The project that they said they were coming to fast-track and finish is still standing there unfinished, so how did they apply that money? And so people have questions to answer,” he said.
In a statement released on August 15, 2024, GETFund clarified the circumstances surrounding the setting up of Daakye PLC and the utilisation of bond proceeds, providing a detailed account of its financial management.
Historically, GETFund was established in 2000 to provide financial support for education in Ghana.
Over the years, it has played a crucial role in funding various educational initiatives, including the government’s flagship Free Senior High School (SHS), Senior High Technical School (SHTS), and Technical and Vocational Education and Training (TVET) Programme.
In response to Mahama’s claims, Isaac Asiedu-Odei, Head of Public Relations at GETFund, emphasised that the Fund’s receivables have not been collateralised, but rather securitised to raise funds for urgent activities.
He stressed that GETFund still has access to its mandatory receivables and has utilised the funds judiciously for the public good.
In 2020, GETFund securitised its receivables to raise funds for urgent activities, including supporting the Free SHS/SHTS/TVET Programme, which had led to a surge in enrolment and strained school facilities.
The securitisation and bond issuance, facilitated by Daakye PLC, raised GH¢2.6 billion between 2020 and 2022, funding 3,001 projects.
These projects included inherited and new initiatives, vehicle and furniture supply, and contractor debt clearance.
GETFund assured that its budget is thoroughly scrutinised in parliamentary records and managed by a competent Board of Trustees, ensuring transparency and efficiency in financing urgent educational needs.
BY Daniel Bampoe