Why Mahama threatened NDC MPs at Ada retreat over support for E-Levy

Former President John Mahama has been desperately working around the clock to keep pressure on NDC MPs to maintain their vehement opposition to the passage of the proposed E-Levy Bill.

The former President is said to have gone to the extent of issuing threats to the opposition MPs, as part of his schemes to ensure that they kick against the Bill whenever it is tabled before them in Parliament.

Information available to the Daily Statesman indicates that one of such threats was issued at the weekend at a popular resort in Ada during a retreat organised at the former President’s instance, ahead of first the meeting of the Second Session of Parliament.

According to our sources, former President Mahama stated that one of the reasons that took him and the NDC into opposition was the inability of his government to manage the economy, thereby having to seek the assistance of the International Monetary Fund (IMF).

He is said to have indicated that, as a result, the NPP propaganda machine went into over-drive, labelling him and the NDC as incompetent, a message which sunk into the minds of Ghanaians.

“President Mahama feels now is the time to exact revenge, especially as the introduction of the E-Levy will mean the Akufo-Addo government will have the much-needed financial muscle not only to balance the books, but also to carry out ‘unprecedented’ infrastructural development which has the potential of keeping the NDC in opposition for a long time,” the source added.

Mr Mahama, who was said to be clearly agitated, reported stated: “Akufo-Addo and his government must also be said to have mismanaged the economy so they can also go to the IMF. We cannot allow the rhetoric of COVID-19 and its effects, even if true, to be used to convince Ghanaians about the difficulties the country is facing.”

Prior to the address by the former NDC leader, some NDC MPs were said to have “come around”, and were ready to support the passage of the bill, having indicated that the benefits to the nation would be immense.

“After President Mahama’s speech, it had become clear to some of the level-minded MPs, though in very small numbers, that the opposition they were being told to mount against the E-Levy was not because of their love for the masses of Ghanaians, but rather for the survival of the NDC,” our source said.

Cracking the Bole whip

Former President Mahama was said to have proceeded to instruct the Minority Leader and the Minority Chief Whip to ensure that on the day of sitting for the passage of the E-Levy, all 137 NDC MPs must be present without fail.

The former President was also said to have threatened that any NDC MP who would break rank with the party, and “dares” to vote for the E-Levy would be “exposed”, and will face “retribution”, both at the constituency and social media levels.

According to our source, Mr Mahama made it clear that no MP who breaks rank will survive the politics of the NDC.

Entrepreneurship

Meanwhile, the Minister of Finance, Ken Ofori-Atta, has underscored the fact that the implementation of the E-levy will help kick-start the country’s journey towards entrepreneurship.

Speaking at the 73rd Annual New Year School and Conference yesterday, he explained that “the proceeds from the levy will be used to support the government’s key entrepreneurship-centred initiatives such as the YouStart.

“We consider the E-Levy as an essential tool to increase our Tax to GDP from around 13% to 16% and above. The E-Levy is intrinsically linked to the YouStart Initiative,” he said.

Benefits

He explained that the E-Levy will not only ensure that the country does not crowd out the private sector by reducing borrowing alone, but will also provide a means for all Ghanaians to help support the country to grow.

He added that it will generate more revenue to sustainably invest in entrepreneurship, youth employment, cyber security, digital and road infrastructure.

The Finance Minister said available data from the Ghana Statistical Service (GSS) indicate that 11.5 million people are considered economically active. Of this number, 1.5 million people are unemployed, leaving the unemployment rate among the population 15 years and older at estimated 13.4 percent.

Mr Ofori-Atta fears the country’s unemployment is inching closer to unacceptable levels, hence the need for government to put measures in place to address it.

YouStart

He cited the YouStart initiative as a measure by government to support the youth to develop commercially viable businesses, gain access to capital, obtain technical skills and training, as well as mentoring to enable them launch and operate their businesses.

“The programme is expected to remove the primary impediment to the growth of enterprise in Ghana, improve access to credit and incorporate the broader vision of the Ghana Beyond Aid under the Ghana CARES ‘Obaatan Pa’ Programme,” he said.

He said COVID had taught the country to re-orient its approach to job creation, mainly because the future of work has changed dramatically. He argued that the idea therefore is give young people a better chance, as government prioritises skills development and enterprise promotion.

According to him, government’s focus on skills and entrepreneurship is informed by the gap in the job market.

He emphasised that the E-Levy will help create numerous opportunities for the youth to create their own businesses and grow the capacity of the private sector to create jobs.

He added that the YouStart is not just a political sound bite, but one of the central missions of government which will commit approximately GHC10 billion into entrepreneurship development and extend opportunities to the youth.

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