The timely intervention of Asantehene Otumfuo Osei Tutu II ensured Ghana’s swift exit from the Highly Indebted Poor Countries (HIPC) initiative, leading to a debt relief of about $4 billion from the country’s external creditors, as revealed by former President John Agyekum Kufuor.
The International Monetary Fund (IMF) and the World Bank Group’s International Development Association (IDA) agreed on February 22 and 26, 2002, respectively, to support a comprehensive debt reduction package for Ghana under the enhanced HIPC initiative.
However, according to the former President, Ghana would have missed out on the benefits of the program if Otumfuo had not intervened at the last minute.
Challenge
Speaking when a delegation from the E ON 3 Group and its key partners presented the Otumfuo commemorative gold coin to him at his residence in Accra on January 7, 2022, the former President explained that although his government worked hard to reach the completion point of the HIPC program, it faced a major challenge. The board of the IMF, meeting in Washington, USA, decided against the country’s exit because the government failed to observe the conditionality of not increasing wages and salaries.
As a result, the IMF decided to prolong the country’s exit for a year, which could have come with some grave consequences.
Asantehene’s intervention
Coincidentally, Mr. Kufuor said, the Asantehene was in Washington at the invitation of the then World Bank President, James D. Wolfensohn.
“At that point, I decided to send a message through the Juabenhene, Nana Otuo Siriboe II, who was travelling to the USA to join the Asantehene on his trip, to inform the King of the development and to ask his friend Mr. Wolfensohn to work something out with the IMF,” Mr. Kufuor stated.
“Nana Juabenhene stepped out of my office and phoned Otumfuo, who immediately called me, and we had a conversation. I pleaded with him to get Mr. Wolfensohn to talk to the IMF with the assurance that we would correct the anomaly. Otumfuo did so, leading to the debt relief,” Mr. Kufuor continued.
Dagbon conflict
The former President also mentioned the laudable role the Asantehene played in resolving the Dagbon crisis.
He said when the Dagbon disturbances broke out in 2002, he, as President, set up the Wuaku Commission to investigate the criminal aspect of the incident, but he realized that the problem was deeply rooted in tradition.
“I decided that, apart from the criminal aspect, the traditional aspect should also be tackled using our traditional leaders. So, I appealed to three traditional rulers of high repute – Asantehene, Nayiri, and Yagbonwura – for help, which they readily accepted, leading to the realization of the peace process during the Presidency of Nana Akufo-Addo,” Mr. Kufuor stated.
Therefore, the former President said it was appropriate for the Asantehene to be honored with the gold coin.
Delegation
The delegation to the former President’s residence was led by the Executive Chairman of E ON 3 Group, Richard Adjei Mensah Ofori Atta.