Sophia Akuffo: Government Bonds Must Remain Sacred After DDEP Shock

Former Chief Justice Sophia Akuffo has warned that the integrity of government bonds must never be compromised, arguing that trust in Ghana’s sovereign debt instruments was deeply shaken by the Domestic Debt Exchange Programme (DDEP).

Speaking on Joy News’ PM Express Business Edition on Thursday, the former Chief Justice defended her decision to join pensioners who picketed the Finance Ministry in February 2023 in protest against the DDEP.

“First and foremost, I wasn’t there in that boardroom when that decision was made to give people haircuts, whether they liked it or not,” she said.

“But even if I had been, and I had disagreed, and despite my strenuous position, it went ahead to the extent that I think it’s wrong and that it’s in the interest of the public to know that it’s wrong. Yes, I would have come out and done it.”

She was unequivocal about her position.

“So it’s something which I always say, if I had to do it again, I would do it.”

A Stand Rooted in Principle

Her presence on the picket line drew national attention, with many describing it as a defining moment — a former Chief Justice standing alongside pensioners who depended on bond yields for their livelihoods.

According to Justice Akuffo, her action was guided by principle rather than politics.

“You don’t sit there and just let unlawful things be done, and if you feel strongly about it and there’s no one to listen to you, you shout it out.”

She recounted how she joined the protest after spotting someone she knew participating.

“I phoned her and said, ‘Was it you I saw?’ She said yes. I asked, ‘Are you going again?’ She said yes. I said, ‘Can I join?’ And so I went.”

Concerns Over Ghana’s Debt Reputation

Beyond the protest itself, Justice Akuffo raised broader concerns about the long-term implications of the DDEP on Ghana’s financial credibility.

“It is also to debase the repute of the Ghana government — not any particular political party — but Ghana government investment.”

For her, the issue transcends partisan lines and goes to the heart of sovereign credibility.

“What does bond mean? Your word is your bond… If you cannot rely on the government’s word — the bond — even when you’ve signed, what else can you rely on?”

She cautioned that rebuilding investor confidence will be difficult, especially as the government considers issuing new instruments such as cocoa bonds.

“The elephant in the room that everybody will pretend is not there is going to be, how many people will really opt to go take this bond after that bad experience?”

The Broader Economic Question

Justice Akuffo’s remarks highlight the lingering debate around the Domestic Debt Exchange Programme and its impact on:

• Investor confidence

• Pensioner security

• Sovereign credibility

• Future domestic bond issuance

While the DDEP formed part of Ghana’s broader economic recovery efforts, critics argue that the restructuring introduced lasting uncertainty into the domestic debt market.

For Justice Akuffo, the core issue remains trust.

“When a government bond is issued on written terms,” she implied, “the state’s word must remain inviolable.”

Source: Accra Business News