Have you forgotten about ESLA so soon? – Terkper asks Bawumia

A Former Minister for Finance, Seth Terkper is reminding the Akufo-Addo-led administration of the new proposed Energy Sector Levy Act (ESLA) that the Ministry of Finance used in 2017/2018 to set up the ESLA plc and issue bonds in 2018 to bailout banks.

His comment comes after Vice President, Dr. Mahamudu Bawumia accused the former President, John Mahama of failing to do enough to save the banking sector when he was the President.

In a tweet, the former Finance Minister reminded the Ministry of Finance on the Energy Sector Levy Act used in 2017/2018.

“Forgetting about ESLA so soon? The ‘nuisance’ tax that MOF used in 2017/18 to set up ESLA plc and issue ESLA Bonds in 2018 to bailout banks? He NADA just signed a Bill to increase 2 ESLA levies (ref 2019 Mid-Year Review), ” Mr. Terkper tweet read.

Earlier this year, you may recall, the Mid-year Budget statement presented by the Finance Minister, Ken Ofori-Atta proposed an increase in the Energy Sector Levy by GH 20 pesewas per litre for petrol and diesel and GH 8 pesewas per kg for LPG.

The government believes this would increase the flows to enable government issue additional bonds to pay down its energy sector debt obligations from the NDC’s “Dumsor” days.