Former Chief Justice, Sophia Akuffo, has raised serious concerns about the long-term impact of the Domestic Debt Exchange Programme (DDEP), under form
Former Chief Justice, Sophia Akuffo, has raised serious concerns about the long-term impact of the Domestic Debt Exchange Programme (DDEP), under former President Akufo-Addo administration warning that the controversial policy has weakened trust in government bonds and could undermine confidence in the country’s financial commitments.
Speaking in an interview on the PM Express Business Edition on Joy News, the former Chief Justice defended her decision to join pensioners who staged a protest at the Ministry of Finance in February 2023 against the government’s debt restructuring plan.
Her participation in the demonstration drew widespread attention at the time, as many observers were surprised to see a former head of the judiciary standing shoulder to shoulder with retirees who had taken to the streets to resist the inclusion of their investments in the debt exchange programme.
DDEP Crisis
The Domestic Debt Exchange Programme was introduced by the previous NPP government as part of a broader strategy to restore macroeconomic stability and address the escalating public debt crisis.
Under the programme, holders of domestic bonds were required to exchange their existing bonds for new ones with longer maturities and reduced interest rates. The restructuring, widely described as a “haircut,” significantly affected investors, including pensioners who had relied on the steady returns from government bonds to fund their retirement.
The decision triggered strong opposition from several groups, particularly retirees who feared the restructuring would erode their life savings. Demonstrations outside the Finance Ministry became a regular occurrence in early 2023, with pensioners demanding that their investments be exempted from the programme.
CJ’s Explanation
During the interview, Justice Akuffo said she had no role in the government’s decision to impose the bond restructuring and insisted she would have opposed the move had she been part of the deliberations.
“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 explained.
She added that even if she had been involved in discussions and her objections had been ignored, she would still have spoken publicly against the policy if she believed it was wrong.
“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 stated.
The former Chief Justice emphasized that she had no regrets about joining the protest and would take the same decision again if confronted with similar circumstances.
“So it’s something which I always say, if I had to do it again, I would do it,” she said firmly.
A protest Rooted In Principle
Justice Akuffo said her decision to join the pensioners was guided by personal principles shaped by her upbringing and legal training.
According to her, citizens have a duty to speak out against actions they believe are unjust, particularly when official channels appear unresponsive.
“I will say that maybe it’s my home upbringing, or how I understood my legal education. 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 said.
She recalled how she eventually joined the demonstration after noticing people she knew among the protesters.
“Fortunately, I saw that there were some people picketing, and I saw somebody I knew on that picket line. I phoned her and said, ‘Was it you I saw?’ She said yes. And I said, ‘Are you going again?’ She said yes. I said, ‘Can I join?’ And so I went.”
Financial Credibility
Beyond the immediate concerns of pensioners, the former Chief Justice warned that the debt exchange programme may have broader implications for Ghana’s credibility in financial markets.
She argued that the restructuring risked undermining the traditional understanding of government bonds as reliable financial instruments backed by the full faith of the state.
“It is also to debase the repute of the Ghana government—not any particular political party—but Ghana government investment,” she said.
According to her, the concept of a bond is built on trust and the expectation that governments will honour the terms under which the debt instruments are issued.
“What does bond mean? Your word is your bond. It used to be this was a bond—a government bond that was issued on written terms—and if you cannot rely on the government’s word, the bond, even when you’ve signed, what else can you rely on?” she questioned.
Lingering Doubts Among Investors
Justice Akuffo further warned that restoring investor confidence in Ghana’s debt instruments may prove difficult in the aftermath of the DDEP.
She pointed to emerging discussions around proposed cocoa-backed bonds and suggested that potential investors are already expressing doubts about the reliability of new government debt offerings.
“So now that they want to issue cocoa bonds, I’ve already heard people wondering,” she noted.
In her view, the “elephant in the room” remains whether investors—particularly those affected by the previous restructuring—will be willing to risk their funds again.
“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?” she asked.
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