By President John Mahama has described Ghana’s economic situation as a “crime scene”, blaming the previous administration for what he calls reckless financial mismanagement.
Speaking to Organized Labour on Thursday, February 20, 2025, Mahama did not hold back in his criticism of the former government’s handling of the economy, emphasizing the severe financial strain it has placed on the country.
“Comrades, you know we [the government] are natural allies, and we’ve worked together for many years. One thing that is a cardinal principle for us is to tell the truth at all times. We all knew the economy was in crisis, but some of the things I’m discovering myself—it’s been the criminal handling of our economy. Ghana is a crime scene, actually, because how a government could have been so reckless, I cannot understand. But we are faced with the reality, and our options are very few.”
He acknowledged the difficult choices ahead, warning that the government cannot afford to continue on the same path without risking economic collapse.
“We can behave like the ostrich and hide our heads in the sand and let the economy crash, but then what effect will it have on Ghanaian households and everybody?”
Mahama disclosed that he has instructed the Finance Minister to implement drastic expenditure cuts, including within the Office of Government Machinery.
“I told him [the Finance Minister], cut expenditure as much as you like. Even we ourselves, as the Office of Government Machinery, cut as much of our budget as you like. Because we all must make those sacrifices.”
He also acknowledged the growing public distrust in politicians, attributing it to the perception that while ordinary citizens struggle, politicians live in luxury.
“A certain distrust of the political class has arisen because it’s like when everybody else is tightening their belts, the political class is loosening its belt. But I want to assure you that we are all going to tighten our belts.”
As negotiations on public sector wages continue, Mahama urged Organized Labour to temper their demands this year, promising better rewards in the future once the economy stabilizes.
“I want to appeal to you that let’s temper our demands for this year, and once we get out of the woods… we will share bigger things.”
Background
This engagement follows the government’s approval of a 10% salary increase for public sector workers under the Single Spine Salary Structure (SSSS) for 2025.
The agreement, signed on February 20, 2025, between the government and Organized Labour, will be effective from January to December 2025.
The 10% salary adjustment was formally agreed upon and signed by:
Dr. Isaac Bampoe Addo – Chairman, FORUM
Hon. Dr. Cassiel Ato Baah Forson (MP) – Minister of Finance
This comes after a 23% salary increase in 2024, which was aimed at cushioning workers from economic hardships.
