Isaac Adongo calls for non-political interference in $1.46 billion Heritage Fund review  

Mr Isaac Adongo, Chairman of Parliament's Finance Committee, has urged stakeholders to shield the $1.46 billion Ghana Heritage Fund review from political interference.

He said the review, due after 15 years of the Fund's establishment, required a deliberate approach to protect petroleum revenues intended to benefit future generations.

Mr Adongo, Member of Parliament for Bolgatanga Central, made the call at a ceremony marking the 15th anniversary of the Public Interest and Accountability Committee (PIAC).

He warned that political leaders could be tempted to use petroleum revenues saved in the Fund to generate immediate political benefits, at the expense of long-term national interests.

“If you leave us as politicians, we would like to take the money, spend it now, make a good name, and leave an empty bucket for you,” he said.

The Ghana Heritage Fund is a sovereign wealth fund established under the Petroleum Revenue Management Act, 2011 (Act 815), to save part of the country's petroleum revenues for future generations.

The Act restricts withdrawals from the Fund for a 15-year period, with the restriction subject to review every 15 years.

Section 10(4) of the Act provides that Parliament may pass a resolution to allow the transfer of a portion of the interest earned on the Fund, with the restriction on withdrawals subject to periodic review.

Mr Adongo said the review of the Fund's safeguards should not weaken Ghana's commitment to saving part of its petroleum revenues for future generations.

“Let’s pray that that review doesn’t stop the Heritage Fund altogether,” he said.

Mr Adongo called for a clear national position on what Ghana sought to achieve from the review to prevent decisions on the Fund from being driven by short-term political considerations.

He Chairman said Ghana's approach to petroleum revenue management differed significantly from Norway's, which had invested substantial oil revenues in sovereign wealth for future generations.

Mr Adongo said Ghana had committed a large proportion of its petroleum revenues to present consumption, leaving fewer resources available for building long-term financial buffers.

“We need to have a conversation as to how to truly build a sovereign wealth fund,” he said.

Mr Adongo suggested that Ghana could consider mechanisms to deliberately set aside a portion of petroleum revenues to increase resources invested for future generations.

He said the issue was particularly important because Ghana had already spent 15 years of its petroleum production period, making stronger safeguards necessary for the remaining years.

Mr Adongo urged stakeholders to ensure that the review of the Heritage Fund resulted in stronger rather than weaker protection for intergenerational equity.

The anniversary was on the theme: “PIAC at 15: Advancing Resource Governance through Transparency and Accountability for Sustainable Development.”

GNA