Daakye PLC Was A Necessity – GETFUND Replies Mahama

The Ghana Education Trust Fund (GETFund) has responded to assertions made by John Dramani Mahama, the National Democratic Congress (NDC) flagbearer, concerning the creation of Daakye Plc and the management of bond proceeds.

During a Youth Forum in Ho on August 13, Mr. Mahama claimed that the New Patriotic Party’s (NPP) running mate, Dr Matthew Opoku Prempeh (alias NAPO), who is a former Education Minister, has questions to answer about the management of the Daakye Bond.

He pledged to reverse the collateralisation and capping of GETFund, suggesting that these actions had reduced the Fund’s effectiveness.

“This person who is the running mate for Dr Bawumia was the Minister of Education and he brought a bond to Parliament called the Daakye Bond. It has led to the collateralisation of the GETFund so this year, total receipt from the GETFund should amount to about 7 billion cedis. About 4 billion of that was taken in the Daakye bond by NAPO and his Ministry of Education.”

“Tell me what was that money used for? The project that they said they were coming to fast-track and finish is still standing there unfinished so how did they apply that money? And so people have questions to answer,” he said.

Response

In a statement released on August 15, 2024, GETFund clarified that its receivables have not been collateralized but securitized to raise necessary funds for critical activities. The Fund underlined that it continues to have access to its mandatory receivables and has been using the funds responsibly for the public’s benefit.

The statement signed by the Head of Public Relations at GETFund, Isaac Asiedu-Odei, further explained that the securitization and bond issuance were essential to support the government’s Free SHS/SHTS/TVET Programme, which resulted in increased enrolment and pressure on school infrastructure.

The bond, issued through Daakye Plc, generated 2.6 billion cedis between 2020 and 2022, which funded 3,001 projects. These projects included both ongoing and new initiatives, vehicle and furniture supplies, and the settlement of contractor debts.

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