Home  |  Login  |  FAQ  |  Advertise  |  Services  |  Recommend  |  FeedBack  |  Contact Us  
Home
News

 Other Sections
ACN Ghana 2008
Sports
Finance
Business Directory
Online Forms
Real Estate
Classifieds
Auto
Jobs
Events
Downloads
World Cup 2010
Travel
About Ghana
Our Services
News Headlines »
 More »
"Ghana's Natural Resource Funds Well-Governed" - RWI
News Date: 28th April 2014


The Revenue Watch Institute, (RWI), a New York-based non-governmental organisation with an office in Accra, has stated that, the natural resource fund that the Ghanaian government uses to manage oil revenues is relatively well-governed.

A research released by the Institute indicates that the Ghana Petroleum Funds met 13 out of 16 good governance fundamentals.

A Statement from the RWI signed by Lee Bailey, Director of Communications said researchers concluded that the funds feature clear deposit, withdrawal and investment rules, effective oversight, and other essential attributes of good governance.

"Together, the Ghana Stabilization Fund and the Ghana Heritage Fund manage more than US$450 million," said Emmanuel Kuyole, Africa regional coordinator for Revenue Watch".

"Thanks to strong legal provisions, citizens have information on how much is deposited, invested and earned.

This transparency is a significant gain. Too much sunshine does not spoil anything," he added.

The statement, however, said researchers found that there was room for improvement.

The case study of Ghana indicated that as of early 2013, when the period of study concluded, there were still problems in terms of public disclosure of external audits and the detailed responsibilities of fund managers and staff.

In response to the report, representatives of the country's Ministry of Finance announced that the government had already engaged international accountancy firm Ernst & Young to conduct an external audit of the funds.

Revenue Watch's economic analyst Andrew Bauer also suggested that the government used un-saved revenues for investment rather than consumption.

This comes at a time when Ghana faces volatility in its non-oil revenues and increasing deficit and national debt levels, Bauer has explained in the statement.

"Ghana's good management of its saved funds demonstrates compliance with the provisions of the Petroleum Revenue Management Act," said Bauer.

"This must also extend to the act's requirement that revenues be spent in line with a national development plan, to ensure maximum efficiency."

"It is one thing to have a strong law, but another to execute it," said Amoako-Tuffuor of ACET Africa. "Ghana must avoid selective implementation which undermines credibility. Full implementation requires political commitment, diligence of public officials, and a public desire to see the law fully implemented."

The Revenue Watch study noted that natural resource funds are an increasingly popular subset of sovereign wealth funds, and in principle they serve a variety of purposes: expenditure smoothing, savings of resource revenues, earmarking money for development, "sterilizing" of revenues to avoid adverse macroeconomic impacts, and protection from corruption.

The Revenue Watch study detailed six key steps that countries can take to ensure accountability and transparency, including the establishment of fiscal rules, the elaboration of investment rules, and strategies for the creation of strong oversight bodies.


Source: GNA


 More »
 Search News
 
 Advanced Search

ADVERTISEMENT
  Latest News Headlines
Solar PV Poised to Boom in Africa Thanks to Declining Costs
Samsung calls for partnerships
Innovations in Africa Could Level Playing Field
Ayekoo to R2bees, Stonebwoy & Sakordie on MAMA’s Nomination
1st Indian Eye Hospital Enters Republic of Ghana
Managing improper waste disposal
‘Mineral resources must be properly harnessed for national development’
Haruna Iddrisu launches campaign; Targets 70,000 votes for Prez Mahama
We've fixed 90% of our internal lapses - SADA
Ghana awaits test results from IMF in hope for U$400m cash
»  More latest news
 Popular News Items
1st Indian Eye Hospital Enters Republic of Ghana
Ayekoo to R2bees, Stonebwoy & Sakordie on MAMA’s Nomination
Samsung calls for partnerships
Solar PV Poised to Boom in Africa Thanks to Declining Costs
Innovations in Africa Could Level Playing Field

Copyright © BusinessGhana. All Rights Reserved.

Legal