Ishaq Kyei-Brobbey

Dr Mahamudu Bawumia has provided a lifeline opportunity for Constituencies to build up capital for the future when he becomes the President of Ghana. He has proposed 1 Constituency 10 appointments. Individuals that get appointments on the back of sponsorship from Constituency Executives of the Party are to contribute in return an amount of about 1,000 Cedis a month to the Constituency. So, cool amount of GHS 10,000 every month (GHS 1,000x10) is expected. Assuming the GHS10,000 is saved for one year (12 months), it will become One Hundred and Twenty Thousand Ghana Cedis (GHS10,000x12 = GHS120,000). Given the salaries of CEOs and other appointees, GHS1,000 a month can be considered a very reasonable amount. 

INVESTMENT SCENARIO ONE 

Assuming the GHS120,000 raised in year one is invested in year two at a return of 10% for three years, it will grow to become GHS159,720 = 120,000(1+10%)^3. When the accumulation of GHS120,000 in year two is invested for two years, it will become GHS145,200 =  120,000(1+10%)^2. Then year three amount of GHS120,000 invested in year four will grow to become GHS132,000 = GHS120,000(1+10%)^1. The end of year four will also provide accumulated amount of GHS120,000. These give an overall total amount of GHS556,000. This becomes an amount of money considered as the Constituency Capital available for business. 

INVESTMENT SCENARIO TWO 

This option assumes that the of process building that capital is through Mutual Fund Investment. That is where the monthly receipt of GHS10,000 from the appointees are invested right in the second month and through to the rest of the months until the 48th. The analysis here obviously reveals a bigger capital because the monthly receipts are invested continuously to the end of 48 months for a capital of GHS572,408 = 10,000(1+0.833)^47 - 1/0.833). The difference between scenario one and two is GHS16,408. 

REALISTIC PROMISE

The constitution of the Republic of Ghana gives the authority to appoint to the President. So, if Dr Bawumia says he will do it, he has the legal mandate to it without seeking authorization from anybody. Besides, there are about 7,000 appointments to be made by the President. Ten appointments facilitated by each Constituency will give a total of 2,760 with a remainder of 4,240 for the President to make (7,000-2,760=4,240). 

This is a fair and equitable approach of distributing appointments in the country. Currently, Ahafo Region has only one CEO. If this approach is used, they can get more. Again, where other considerations become necessary for more appointments to be made to a particular Constituency, the President can do so. It must however be pointed out that, all these appointments be subject to the capabilities, competencies and skills of those to be appointed in order to achieve value for money. 

CONCLUSION 

Constituencies can now raise Capital to enter into any business of their choice. This might help reduce the continued headache of MPs, Constituency Chairmen and others, who would normally fall on their personal resources to cater for some basic needs and welfare of Constituents. Indeed, this is a clear financing strategy to provide decent capital for business in the Constituencies.

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