Pensioners demand for technical committee smacks of lack of confidence – Economist

An Economist, Courage Boti, has said the demand from the Pensioners Bondholders for the government to set up a technical committee to monitor payment of mature bonds means a lack of confidence in the system.

According to him, the request affirms the lack of trust between pensioner bondholders, investors and the government.

His comment comes on the back of Pensioner Boldholders Forum requesting the government to set up a technical committee to monitor and enforce the payment of matured government coupons.

The call also follows the government’s decision to exempt pensioners from the Domestic Debt Exchange Programme (DDEP).

Government following a nearly two-week picket of pensioners at the Ministry of Finance exempted pensioners from the DDEP.

Speaking on Starr Today with Joshua Kojo Mensah, Mr. Boti indicated that the government must take steps to win back the confidence of Ghanaians on the security of their investments.

“Trust has been lost between these pensioner bondholders who are making the proposal and of the government by extension investors and the government which is not a good thing. You need trust to be able to raise your money and to be able to give your money to the government for a long while. That is what you need to develop and expand and do other transaction programs with the government that will bring welfare to the citizens,” the economist explained.

However, the Pensioner Bondholders say the setting up of the Domestic Creditors Committee would amongst other things keep the government on its toes.

“They’re demanding that the President passes some kind of executive instrument to set up this very committee who will have two very simple objective; to monitor compliance by government when it comes to its debt obligation to domestic creditors, and also to offer independent advice to government on measures and policies that must be undertaken to ensure that the investment environment is still ripe for all who are interested.”

The Committee will serve to represent and protect the common interests of all domestic holders of government bonds and treasury bills.