President John Dramani Mahama has directed the Minister of Finance to release funds for outstanding gratuity arrears owed to military personnel from the 95-96 year groups, as government grapples with over GH₵1 billion in unpaid retirement benefits affecting approximately 3,000 service members.
The President disclosed that the arrears accumulated after the previous administration introduced Constitutional Instrument 129 in 2020, which increased length of service and resulted in increased retirement and gratuity payments for retiring officers, but failed to make budgetary allocations to operationalize the new gratuity levels over the subsequent four years.
“In the year 2020, the previous administration, just before the elections, introduced CI129, which increased length of service, resulting in increases in retirement and gratuity payments for retiring officers. It will interest you to know that over the four years following the year 2020, the previous administration made no budgetary allocation to operationalize the new gratuity levels,” President Mahama stated.
The announcement was made on Friday during the West African Soldiers’ Social Activity at Burma Camp, an annual tradition of the Ghana Armed Forces that provides an opportunity for the President, as Commander-in-Chief, to interact with officers, soldiers, and defence civilian staff in a relaxed yet meaningful setting.
The revelation of the GH₵1 billion gratuity debt comes amid broader concerns about the welfare of military personnel, with the President emphasizing that government remains committed to ensuring proper compensation for service members.
The President emphasized that the welfare of military personnel remains a top priority for his administration, noting government’s support for initiatives such as the proposed mutual health fund for service personnel and their families to improve access to healthcare and financial security. The National Security Secretariat will provide seed money for the welfare trust fund.
President Mahama acknowledged the generosity of Mr. Kofi Appiah, CEO of All Day Ventures, for supporting the welfare fund initiative.
Beyond addressing the gratuity arrears crisis, the President announced that government is pursuing a major modernization drive for the Ghana Armed Forces, including the completion of forward operating bases across the country, with two facilities in the northern part ready for commissioning and adequate funding allocated to complete four more before the end of the year.
He disclosed that government has commissioned a fleet of pickup trucks, buses, and land cruisers to enhance mobility and operational efficiency of the Armed Forces as the first phase of vehicles to be received. Plans are also advanced to procure armored personnel carriers, strategic drones, and advanced communication systems.
The President announced government’s decision to establish Ghana’s first state-of-the-art cyber and electronic warfare center at the Tamale Air Force Base for maintaining surveillance of borders with assault capacity in the event of attacks on the country.
Additional acquisitions for the Armed Forces will include offshore patrol vessels for the Ghana Navy, four brand new Eurocopter helicopters for the Ghana Air Force, and a new executive jet for traveling executives.
President Mahama also revealed that government has taken the decision to establish two new military units in the Oti and Central regions, reflecting emerging security dynamics and the need to strengthen the national response framework. The ongoing recruitment drive, which began last year, aims to increase the Ghana Armed Forces workforce by 12,000 personnel over the next four years.
Accommodation remains a challenge with a current deficit of approximately 14,000 housing units.
The President welcomed the partnership between the Defense Industrial Holding Company and FT Global which aims to deliver 10,000 housing units over the next five years, noting that he had commissioned the first phase of 2,000 housing units earlier in the day.