GHANA is said to have lost a minimum of over GH¢115 million between February 2010 and October 2016 as a result of wrongful payment of GH¢51.2 million judgment debt to embattled businessman Mr Alfred Agbesi Woyome.
The amount is computed as the minimum interest that would have accrued on the GH¢51.2million using Bank of Ghana’s annualised 182 days Treasury Bill rates.
Using this calculation, the value of GH¢51.2million judgement debt plus the GH¢115 million interest would have amounted to GH¢167million (GH¢167,035,275.43) as at the end of October, 2016.
It must be noted that if floating interest rate – compound or simple – is applied, the amount will far exceed GH¢200million.
Financial analysts say the non refund of the money paid Mr Woyome means government has to borrow from the domestic market and pay high interest.
This, they say is an extra cost to tax payers since monthly interest on the money averages about GH¢3 million.
Mr Woyome filed a writ at the High Court claiming that he was owed an amount of GH¢41 million, to which he added interest to make it a total of GH¢51.2 million.
The amount was paid in tranches as follows; February 2010- GH¢17,094,493.53, January 27, 2011- GH¢10 million, April 18, 2011- GH¢10million and September 12, 2011-GH¢14188987.06.
GH¢19.4m – 2010 (debt plus Interest)
Records show as at the end of 2010, Mr Woyome had been paid GH¢17million (GH¢17,094,493.53)
At an annualised 182 days Treasury Bill rate which was 14.91%, this amount would have accrued interest of GH¢2.3million (GH¢2,331,953.63) to take the total amount to GH¢19.4million (GH¢19,426,447.16) as at end 2010.
GH¢58.2m – 2011(debt plus Interest)
The remaining amount of GH¢34.1million (GH¢34,188,987.06) was paid in three tranches in 2011 as follows: January 27, 2011- GH¢10 million, April 18, 2011- GH¢10million and September 12, 2011-GH¢14188987.06.
Using BoG annuualised 182 days Treasury Bill rate of 11.64%, the total amount would have jumped to GH¢58.2million (GH¢58,282,939.76) by the end of 2011.
GH¢69.9m – 2012 (debt plus Interest)
At annualised 182 days Treasury Bill rate of 19.97%, the money paid and interest accrued rose to GH¢69.9million (GH¢69,920,998.99)
GH¢86.1m -2013 (debt plus Interest)
By the end of 2013, the amounted moved to GH¢86.1million (GH¢86,118,620.73) at annualized 182 days Treasury Bill rate of 23.17%.
GH¢107.5m – 2014 (debt plus Interest)
In 2014, BoG’s annualized 182 days Treasury Bill rate was 24.86% and this took the total amount to GH¢107.5million (GH¢107,526,225.15).
GH¢137.1m – 2015 (debt plus Interest)
For the year 2015, the debt plus interest rose to GH¢137.1million GH¢137,154,470.05 using BoG’s annualised 182 days Treasury Bill rate of 27.55%.
GH¢167m – 2016 (debt plus Interest)
As at the end of October 2016, the amounted jumped to GH¢167million (GH¢167,035,275.43) at 26.16%182 days Treasury Bill rate.
Interest on GH¢17m payment
As at the end of October 2016, interest that has accrued on the GH¢17million (GH¢17,094,493.53) paid to Mr Woyome in 2010 was GH¢45.1million (GH¢45061260.88), pushing the total figure to GH¢62.1million (GH¢62,155,754.41)
Interest on GH¢10m January 27, 2011 payment
The GH¢10million paid to Mr Woyome on January 27, 2011- accrued interest of GH¢21.7million (GH¢21,757,794.03) to take the amount to GH¢31.7million (GH¢31,757,794.03).
Interest on GH¢10m April 18, 2011 payment
Interest on GH¢10million paid on April 18, 2011, amounted to GH¢21million raising the amount to GH¢31million (GH¢31,017,464.34) at the end of October 2016.
The GH¢14188987.06 paid to Mr Woyome on September 12, 2011 rose to GH¢42.1million (GH¢42,104,262.65) following accrual of GH¢27.9million (GH¢27,915,275.59) interest.
The value of each payment on annual basis is presented below
January 27, 2011- GH¢10 million
April 18, 2011- GH¢10million
September 12, 2011-GH¢14188987.06
Alfred Woyome was paid GH¢51.2 million after he claimed that he helped Ghana to raise funds to construct stadia for purposes of hosting the CAN 2008 Nations Cup.
The Supreme Court, in 2014, ordered Mr. Woyome to pay back the money after Mr. Martin Amidu challenged the legality of the payments in court.
By Elvis DARKO, Accra