meee REPUBLIC OF GHANA REPORT OF THE PRESIDENTIAL COMMITTEE ON EMOLUMENTS FOR ARTICLE 71 OFFICE HOLDERS (JANUARY, 2017 - DECEMBER, 2020) JUNE 2020HIS EXCELLENCY, NANA ADDO DANKWA AKUFO-ADDO, PRESIDENT OF THE REPUBLIC OF GHANA JUBILEE HOUSE INDEPENDENCE AVENUE. ACCRA Your Excellency, SUBMISSION OF REPORT OF THE INTIAL COMMITTEE ON EMOLUMENT: We, the undersigned, were constituted into a Presidential Committee on June 18, 2019 by Your Excellency to make recommendations on emoluments for Article 71 Office Holders, in accordance with the 1992 Constitution of the Republic of Ghana. We have the pleasure to inform you that we have accomplished the assignment and we respectfully submit our recommendations in the attached report. We would like to express our sincere gratitude to you and the people of Ghana for the trust reposed in us to serve our Country. Accept, Your Excellency, the assurances of our highest consideration. ‘AAWIIAMOASBAIDU CHAIRPERSON Oru achns Fda AION. ABRAHAM OSSEI AIDOO DR. EDWAR KW: ‘PON & | MEMBER MEMBER _ A ca = ree 5S en, DR.ERIC ODURO OSAE, MRS. STELLA NNAH SEGBAWU MEMBER MEMBER ron einen DR. KWABENA NYARKO OFOO CONSULTANT Mite “MISS AKYAA AFREH ARHIN SECRETARYREPORT OF THE PRESIDENTIAL COMMITTEE ON EMOLUMENTS FOR ARTICLE 71 OFFICE HOLDERS (JANUARY, 2017 - DECEMBER, 2020) JUNE 2020Table of Contents ACKNOWLEDGEMENTS a EXECUTIVE SUMMARY CHAPTER 1: GENERAL INTRODUCTION 4.0 Background enn 1.1. Membership of the Committee 1.2. Terms of Reference 4.3. Approach and Methodology 4.4 Guiding Principles... 4.5 Structure of the Report... CHAPTER 2: REVIEW OF PREVIOUS PCE REPORTS . 8 2.0 Introduction. 2.4 Greenstreet Commitee Report, 1983 (1883-1097) 2.2. Greenstreet Committee Report, 1998 (1997-2000) 2.3. Chinery-Hesse Committee Report, 2005 (2001-2008)... 2.4 Chinery-Hesse Committee Report, December 2008 (2008-2008)..... 2.5 Ewurama Addy Committee Report, 2011 (2009-2013). 2.6 Edu-Buandoh Committee Report 2016 (2013-2017). 2.7 Conclusion, CHAPTER 3: CONSULTATIONS 3.0 Introduction... i 3.1. The Executive... 14 3.2. Council of State, 16 3.3 Legislature. A 3.4. The Judiciary - Justices ofthe Superior Cour of Judiature 18 3.5. Independent Constitutional Bodies... 120 3.6 Regional Consultations... 7 26 3.7. Eminent Personalities and Selected Key National Institutions 29 3.8 Conclusion... 30 CHAPTER 4: FRAMEWORK FOR DETERMINING EMOLUMENTS OF COMPARABLE OFFICERS IN OTHER COUNTRIES et 4.0. Introduction i" 4.1, Kenya 4.2 Rwanda 4.3 South Africa. 44° Australia... 4.5 Canada.4.6 United Kingdom 34 4.7 United States of America. 35 4.8 Conclusion 236 CHAPTER 5: COMPARATIVE ANALYSIS: ARTICLE 71 EMOLUMENTS AND. OTHER SECTORS 38 5.0. Introduetion... 38 51 Relationship be between salaries of Article 71, Base Pay and Newbie Deky Minimum Wage cm se 38 5.2 Relationship between Article 71 aleion end Par on Saal Sone Sain Structure (SSSS). anh 5.3. Relationship between salaries of Article 71 Office Holders and Other Public Sector Workers Not on SSSS 4 5.4. Intra Equity Concems among Article 71 Office Holders...... 5.5 Conclusion. CHAPTER 6; FINDINGS AND OBSERVATIONS. 6.0 Introduction. 6.1 General Issues related to Article 71 of the 1982 Constitution and its implementation... srs 5 6.2. Specific Issues related to different groups of Article 71 Office Holders... 50 CHAPTER 7: RECOMMENDATIONS... 55 7.0. Introduction... 35 7.1. Salaries, Facilities and Privileges : 55 7.2 General Recommendations related to the implementation of AICIE 71 «u.uene58 7.3. Recommendations relevant to Specific Groups of Article 71 Office Holders... 60 APPENDICESACKNOWLEDGEMENTS An invitation to serve on a committee to recommend emoluments for the highest office(s) of the Republic is not only a privilege but also an honour to serve the nation. Members of the Committee can, therefore, not thank the President of the nation enough for this unusual opportunity, The Committee was made up of an interesting mix of members with diverse background — academia, industry/corporate practice, public service, private legal practice and organized labour. This unique composition provided members the usual challenge of forming, storming, norming, and ultimately performing, in order to deliver the Terms of Reference of the Committee. Coming together was indeed the beginning, keeping together was progress and working together was a success. The exceptional competencies from these diverse backgrounds offered opportunities for the picking of brains and co-ordination of thoughts, which ultimately resulted in consensus-building on suggestions and recommendations contained herein, At the end of it all, members of the Committee have virtually become a family. This bond of friendship would not have been possible without the President, H. B. Nana Akufo-Addo appointing the Committee as such The Committee is particularly grateful to the Chief of Staff for her personal commitment to the timely delivery of the assignment and to her staff for their support in searching for relevant data on demand and analysing same for the attention of the Committee, Such data reinforced or rebutted perceptions held by sections of the general public, some public service workers and some beneficiaries of Article 71 For the various arms of government, we appreciate the level of goodwill and enthusiasm displayed during the engagements, ‘The Judiciary was emphatic on their peculiar role in the current demographic dispensation vis-a-vis other arms of government and took the trouble to engage @ consultant to advise them on emoluments to be paid to Justices of the Superior Court of Judicature. The ‘Committee readily availed itself of the recommendations of the Consultant for which we are gratefil. ‘The Parliamentary leadership took time off their rather busy schedule to meet with the Committee a couple of times to explain their circumstances and the demands imposed on them by their constituents. The misconceived role of the Member of Parliament as an agent of development and the one to attract infrastructure to the constituency made it almost compelling to consider them for special treatment in terms of emoluments. The Forum of former MPs recounted life after parliament and dire situations former MPs face, thereby drawing attention to a possible pension scheme for MPs. To both sitting and former MPs we are ever so grateful.Heads of the Independent Constitutional Bodies co-operated with the Committee and volunteered information that compelled members to seek for and confirm various impressions regarding discrimination in the application of benefits available to them. The public consultations provided an avenue for assessing the mood of the public regarding emoluments for Article 71 Office Holders. The strong sense of inequity and favouritism for a select few in society was a frequent fefrain. This helped shape the thinking of ‘members regarding relativity between public servants on the Single Spine Salary Structure and Article 71 Office Holders. ‘The work of the Consultant and his team of Research Assistants who conducted both manual and on-line research in support of the work of the Committee cannot be overlooked. The leg work in gathering relevant correspondence, documents and data, analysing same and making them available to Committee members was most helpful. ‘To all others whom we cannot mention, we say a big thank you,EXECUTIVE SUMMARY In accordance with the powers conferred on him by the 1992 Constitution of Ghana, the President Nana Addo Dankwa Akufo-Addo, appointed a five-member Committee to make recommendations on emoluments for Article 71 Office Holders for the period 2017-2020. ‘The Committee comprised the following: Professor Yaa Ntiamoa-Baidu Chairperson, Honourable Abraham Ossei-Aidoo Member, Dr. Edward Kwapong Member Dr, Eric Oduro Osae Member Mrs, Stella Segbawu Member The President also appointed Ms. Akyaa Afreh Arhin and Dr. Kwabena Nyarko Otoo to support the Committee as Secretary and Consultant respectively. ‘The Committee's terms of Reference were: ‘* Tomake recommendations in respect of emoluments and other privileges for Article 71 Office Holders as specified under the Constitution, and; To examine any other relevant matter which the Committee considers appropriate to its work. ‘The Committee was inaugurated in June 2019 and started work in July 2019. ‘The methodology adopted by the Committee to deliver on the assignment involved regular meetings to deliberate on issues, desk review of available documents, including reports of previous Presidential Committees on Emoluments (PCEs) of Article 71 Office Holders and gathering of data from on-line sources and relevant government agencies, The Committee also held consultations with beneficiaries of Article 71, as well as the general public and selected eminent personalities in the country. The work of the Committee have been guided by ten principles: i) Equity and Fairness, ii) Vested and Acquired rights, fii) Dignity of the position, iv) Ability to pay, v) Context, vi) Reasonableness, vii) Risk associated with the Office, viii) Responsibilities and requirements of the Office, ix) Security of tenure, x) Motivation and attractiveness to enable recruitment of persons of high calibre,“The report is organised in seven chapters: an introductory chapter, followed by the review of previous PCE reports (Chapter 2) and key issues emerging from the stakeholder consultations (Chapter 3). The findings from comparative analyses of systems for determining salaries of comparable officers in other jurisdictions are presented in Chapter 4, while Chapter 5 presents relationships between emoluments of Article 71 Office Holders and other public sector workers in Ghana. Chapter 6 pulls together the Committee's observations from all the reviews, consultations and data analyses, while Chapter 7 presents the Committee's recommendations. ‘The Key issues that emerged from the public consultations include: > The huge disparity between salaries and benefits of Article 71 Office Holders and those of public servants on the Single Spine Salary Structure (SSSS); the public displeasure with payment of ex-gratia, in terms of the quantum and the need to distinguish between transitory positions and career positions in the award of ex- gratia The expanded list of Article 71 beneficiaries beyond those expressly mentioned in the 1992 Constitution; the need for proper interpretation of Article 71 with respect to positions made analogous to certain categories of Article 71 Office Holders; and questions on the effectiveness of the four year cycle of the establishment of a PCE by successive Presidents. ‘The lack of uniformity in the treatment of former Presidents by the State arising from different PCEs making different recommendations; and the lack of clarity on the State's obligations towards spouses of sitting and former Presidents and Vice Presidents. Issues related to the process for approving PCE reports and the perception of “you seraich my back and I scratch yours” (between the Executive and the Legislature); the need for a legislation to back approved recommendations (without political consideration); and the need to ensure maintenance of records of the approvals. ‘The comparative analysis of the systems and structures for the determination of the emoluments of Article 71 Office Holders and those of comparable officers in other jurisdictions showed that the legel and institutional arrangements for determining ‘emoluments of High Public Officials varied from country to country. ‘The main similarity among the countries selected for the comparison is that emoluments of High Public Office Holders are determined separately from the rest of the public service. The second observation is that pey levels of senior public officials in the broader public service, serve as a benchmark for determining that of the High Public Officers.‘The comparative analysis of the relationships between emoluments of Article 71 Office Holders and other public sector workers revealed interesting, but disturbing facts. There are considerable disparities between salaries of Article 71 Office Holders and public service pay structures that must be addressed. ‘The award point system introduced by the Ewurama Addy Committee (2011) established relativities between Article 71 and the SSSS, under which the consolidated salary of a Chief Director was adjusted upwards by a factor of 20 percent and used as the minimum pay for a full time Article 71 Office Holder. This principle, if upheld, would have maintained the relativities between Article 71 and SSSS, but was not upheld in the approval processes. The huge upward adjustments of salaries of Article 71 Office Holders (up to ca.48%) in 2013; ironically followed by a wage freeze in 2014, when Public Servants were awarded only Cost of Living Allowance (COLA), resulted in further widening of the gap between salaries of Article 71 Office Holders and Public Servants on the SSSS. The Committee considers this incidence to be unacceptable as it smacks of lack of care for the majority of public sector workers by the Government in power at that time. This must never be allowed to happen again. ‘The much higher individual salary levels of the beneficiaries under Article 71 has given rise to a false notion that a lion’s share of the rising wage bill in the country is attributable to Article 7] Office Holders. However, as a group, the total compensation of Article 71 Office Holders is less than one percent of the total public sector compensation. Nevertheless, the public resentment against those perceived to be earning undeserving high salaries can be contained only if, and when the pay structure within the Ghanaian public service is enhanced to a level (living wage) where the pay for the lowest paid worker is adequate for him/her to live in dignity with his/her family. ‘The comparative analysis also showed that Article 71 Office Holders are by no means, the highest paid within the Ghanaian public sector; top officers of several state-owned enterprises and institutions eam far higher salaries and have better terms and conditions of service than those under Article 71. ‘The Committee has provided a number of recommendations on salary award points, salary levels, benefits, privileges and facilities to be paid to Article 71 Office Holders for the period 2017-2020. Recommendations are provided also to address specific issues and concems regarding the implementation of Article 71 of the Constitution. Salaries, Facilities and Privileges ‘The Committee has reviewed and recalibrated the existing salary award points for Article 71 Office Holders. The new award point system introduced (PCE/2020-Ree.01) recognises the unique position of the President and the responsibilities attached to that position and sets the President apart. The Vice President is designated as the principal anchor for all other Article 71 Office Holders with 100 award points. The President is awarded 20 points above that ofthe Vice President, resulting in a partial restoration of the salary differential between the President and Vice president to a level that is comparable to what pertains in other jurisdictions, Importantly, the recalibrated points system establishes the monetary value of cone award point based on the salary of the Vice President, which means that any changes to the salary of the Vice President will automatically trigger adjustments in salaries for all other Article 71 Office Holders. The award points attached to each position under Article 71 are provided in Tables 7.1 (A-D) of Chapter 7. ‘The Committee further reviewed the current salaries attached to each category of Article 71 Office Holders. Tke Committee took cognisance of the quantum of pay raises awarded in 2016 by the then Government over the period 2013-2016, prevailing inflation rates and percentage salary increases awarded to Public Servants on the SSSS in 2017-2020, and has recommended annual salary adjustments accordingly (PCE/2020-Ree.02). The details are provided in Tables 7.2 (A-D) of Chapter 7, Similarly, the allowances, benefits and privileges payable to the different categories of Article 71 Office Holders (PCE/2020-Ree.03) are provided in Tables 7.3 (A-K) of Chapter 7. In recommending these allowances, benefits, and privileges, the Committee basically adopted the recommendations provided by the Edu-Buandch Committee (2016) with some variations and clarifications in cases where the Committee felt there was a need for clarity. An important recommendation relating specifically to the Legislature is the call for the establishment of a contributory superannuation scheme (PCE/2020-Rec.23) to cater for MPs when they retire, This has become urgent to address critical issues regarding the welfare of Parliamentarians after their exit from Parliament. ‘The following additional recommendations are provided to address specific key issues and concerns which the Committee identified in delivering on this assignment. The justification for each recommendation is detailed in Chapter 7. General Recommendations relating to th implementation of Article 71 PCE/2020-Rec.04: The salaries of Article 71 Office Holders should be adjusted annually as done for public servants, using the formula provided on page 57. ‘The percentage increases granted to Article 71 Office Holders in any particular year should not exceed what is granted to Public Servants. PCE/2020-Rec.05 PCE/2020-Rec.06 The President and Parliament are discouraged from varying the recommended salary levels without recourse to the underlying principles applied by the PCE. PCE/2020-Rec.07: The award of gratuity should take into consideration the tenure of Article 71 Office Holders, distinguishing between transitory/ contractual positions vis-a-vis career professionals.PCE/2020-Ree.08: Parliament should, as a matter of urgency, enact an Act to operationalise and address the fundamental deficiencies in Article 71 of the 1992 Constitution, pending Constitutional Review. PCE/2020-Rec.09 ‘The approved recommendations of the PCEs should be enacted into an Act of Parliament, PCE/2020-Rec.10: A permanent Independent Commission on Emoluments should be established to determine the emoluments of Article 71 Office Holders. A Secretariat should be set up to coordinate and track the implementation of approved PCE recommendations pending the establishment of an Independent Emoluments Commission (IEC). PCE/2020-Ree.12: Pending the establishment of the Independent Emoluments Commission (IEC), @ PCE must be set up within six months of the President taking office. PCE/2020-Ree -11: PCE/2020-Ree.13: ‘The practice of adding on to beneficiaries of Article 71 by legislation and administrative instructions should be discontinued. Existing legislations that fit into this category should be amended to specify modalities for determining the emoluments of such officers. The existing analogies established in the Constitution between the Judiciary and some officers of the Independent Constitutional Bodies should be properly interpreted and should exclude retirement benefits. Appointment letters of Article 71 Office Holders should spell out the remuneration and other conditions of service attached to the office. PCE/2020-Ree.14: PCE/2020-Rec.15: PCE/2020-Ree.16: The sections of approved PCE recommendations pertaining to each particular group of Aricle 71 beneficiaries should be communicated to the group. Recommendations relevant to Specific Groups of Article 71 Office Holders A number of issues were identified that are specific to individual groups of Article 71 Office Holders. To address these, the Committee recommends as follows: The Executive PCE/2020-Rec.17; Parliament should enact a Former Presidents’ Act, spelling out the entitlements of former Presidents as soon as practicable. PCE/2020-Ree.18: Spouses of sitting and former Presidents and Vice Presidents should be catered for by the Stete as part of privileges extended to the Presidents/Vice President. PCE/2020-Ree.19: Former Presidents must be encouraged and supported to write and publish their biographies as part of their legacy. PCH/2020-Ree.20: A Presidential Library must be established to showease the lives and works of former (Ghanaian) Presidents. PCE/2020-Ree.21 A pension should be provided for former Vice-Presidents of the Republic,PCE/2020-Rec.22: PCE/2020-Ree.23: The Legislature PCE/2020-Rec.2 PCE/2020-Ree.25: PCE/2020-Ree.26: PCE/2020-Ree.27: ‘The Judiciary PCE/2020-Rec.28: PCE/2020-Rec.29: PCE/2020-Rec.30: PCE/2020-Ree.3 ‘The Executive should be paid gratuity equivalent to 4 months’ salary for each year of service or part thereof. ‘The President should consider including recommendations of the emoluments of MMDCEs in the Terms of Reference of future PCEs in view of the provisions under the Constitution and Act 936. The mode of payment of gratuity to MPs as mandated by the 1992 Constitution should be varied to incorporate a scheme (¢. superannuation) that ensures adequate income security for MPs in retirement. The Parliamentary Service should provide greater support for the work of Members of Parliament. ‘The additional roles that MPs play in society must be duly recognised and supported; the specific support recommended are provision of an office in the constituency, as well as security (details in Table 7.3). Parliament should urgently review the emoluments of the part-time Commissioners of the Electoral Commission, The free medical care provided for retired Justices of the Superior Courts should be extended to cover their spouses, Retired Justices of the Superior Courts should be provided with 24- hour security. ‘The gratuity payments to Justices of the Superior Court of Judicature is recommended as follows: equivalent of three months’ salary for the Chief Justice and Justices of the Supreme Court, two months’ salary for Justices of the Court of Appeal and one month salary for Justices of the High Court, for every year served as a Justice of the Superior Court of Judicature, ie, the point at which they qualify as beneficiaries of Anticle 71 (see page 65 for formula and sample calculation). Justices of the Superior Courts should pay for their utility bills out of their consolidated salaries. Independent Constitutional Bodies PCE/2020-Rec. 32: The Chairpersons and Deputy Chairpersons of the ICBs should be PCE/2020-Ree.33: provided with adequate security at their workplaces and residences. Members of the Council of State resident outside Accra should be provided with accommodation, or allowance in lieu of ‘accommodation, whenever they attend Council meetings in Accra.PCE/2020-Ree.34: The National Commission for Civic Education should be adequately resourced to carry out the important mandate of delivering civic education. PCE/2020-Rec.35: The Chairperson of the National Media Commission should be provided with a driver and fuel for the vehicle assigned to him. PCE/2020-Rec.36: The Chairperson of the National Council for Tertiary Education (NCTE) should be provided with an office in the offices of the Council, as well as a car. driver and fuel. ‘The salaries, facilities and privileges recommended, as well as the other specific recommendations outlined, when approved, shall take effect from January 2017. Finally, while acknowledging and appreciating the ongoing laudable efforts of the Government to create jobs and reduce unemployment, the Committee strongly urges the Government to also spare no efforts at reducing the wide gap between the highest and the lowest paid Public Servant in the country. This can be achieved by implementing a road-map (as was done during the tenure of former President Kufuor for the health and education tertiary sectors) for enhancing the salaries of public sector workers on the Single Spine Salary Structure (SSS). The goal must be that the salary earned by every worker should enable him/her to live in dignity. In the words of the Ya-Naa: “as you consider emoluments of the President, Ministers and MPs, do not forget the teachers, nurses and the farmers, without whom our education and health will be compromised. and the nation will starve”CHAPTER 1 GENERAL INTRODUCTION 4.0 Background Article 71 of the 1992 Constitution of the Republic of Ghana mandates the President to establish a Committee to recommend emoluments of officers listed under that provision. The specific provisions of Article 71 are reproduced in Box 1. In the exercise of the powers conferred on him under the Constitution and in accordance with the advice of the Council of State, the President of the Republic of Ghana, His Excellency, the President, Nana Addo Dankwa Akufo-Addo, by a letter dated 30 April 2019, appointed a five ‘member Committee to make recommendations to the President on the salaries and allowances payable, and the facilities and privileges available to Article 71 Office Holders. The ‘Committee was inaugurated by the President on 18" June 2019 and started work on 1* July 2019. 4.1 Membership of the Committee ‘The details of the five member Committee as well as the Secretary and the Consultant appointed to support the work of the Committee are provided below: Chairperson: Professor Yaa Ntiamoa-Baidu, Professor of Zoology, Management Consultant, Former Director of WWF- International, Switzerland, former Pro-Vice Chancellor (Ag), University of Ghana. Members: Honourable Abraham Ossei-Aidoo, Barrister and Solicitor, Former Member of Parliament for Tema West & Former Majority Leader and Minister for Parliamentary Affairs, Dr. Edward Kwapong, Human Resource and Labour Law Consultant, Chief Executive, Fair Wages and Salaries Commission. Dr, Eric Oduro Osae, Lawyer, Chartered Accountant and Governance Expert, Former Dean of Studies and Research, Institute of Local Government Studies. Mrs. Stella Segbawu, Investment Banker & Management Consultant. Secretary: Ms. Akyea Afreh Arhin, Private Legal Practitioner. Consultant: Dr. Kwabena Nyarko Otoo, Labour Economist and Director of Labour Research and Policy Institute of the Trade Union Congress - Ghana.Box I a @ % “tele Ti, 1992 Constitution: Determination of Certain Emoluments ‘The salaries and allowances payable, and the facilites, and privileges available, t- (@) the Speaker and Deputy Speskers and Members of Parliament, (©) the Chief Justice andthe other Justices ofthe Superior Court of Judicature; (©) the Auditor-General, the Chairman and Deputy Chairmen of the Electoral Commission, the Commissioner for Human Rights and Administrative Justice and his Deputies and the District Assemblies Common Fund Administrator; (@ the Chairman, Vice-Chairman and the other members of (@) a National Council for Higher Education howsoever described; Gi) the Public Services Commission; il) the National Media Commission; (iv) the Lands Commission; and (¥) the National Commission for Civie Education; being expenditure charged on the Consolidated Fund, shall be determined by the President on the recommendations of a committee of not more than five persons Appointed by the President, ating in accordance with the advice of the Council of Stat. “The salaries and allowances payable, and the facilities available, to the President, the ‘Vice-President, the chairman and the other members of the Council of State; Ministers of State and Deputy Ministers, bing expenditure charged on the Consolidated Fund, shall bbe determined by Parliament on the recommendations of the committee referred to in clause (1) ofthis ancl. For the purposes of this article, and except as otherwise provided in this Constitution, "salaries" includes allowances, facilities and privileges and retiring benefits or awards. 41.2 Terms of Reference ‘The Committee's Terms of Reference were as follows: > > To make recommendations in respect of emoluments and other privileges for Article 71 Office Holders as specified under the Constitution, and; To examine any other relevant matter which the Committee considers appropriate to its work. 1.3 Approach and Methodology At its first meeting, the Committee agreed on modalities for delivering on the assignment, identified key stakeholders to be consulted, the data required and sources and defined a road- map for the work. The approach adopted involved regular Committee meetings to identify and deliberate on issues, data gathering and desk review of available documents, consultations with direct beneficiaries of Article 71 (the Executive, Legislature, Judiciary and Independent Constitutional Bodies), as well as consultations with the general public and selected eminent personalities in the cotCommittee meetings: the Committee met several times at the designated Secretariat at the Castle, Osu and also at the Chairperson’ office on need basis. The Secretary and the Consultant were in attendance at the Committee meetings and were permitted to contribute to the discussions, The Secretary took minutes of all meetings and maintained record of the Committee’s deliberations and attendance. Data gathering: the Committee sent direct requests to relevant institutions for data and also used on-line search engines for relevant secondary date. The on-line searches were mainly in relation to information on emoluments of similar positions in other jurisdictions. Such data were then validated against those obtained through the Ministry of Foreign Affairs. The main sources of in-country data included State agencies such as the Ministry of Finance, the Ghana Statistical Services, the Controller and Accountant General's Department and the Fair Wages and Salaries Commission. Desk Review of available documents: the Office of the Chief of Staff provided copies of the 1992 Constitution of the Republic of Ghana and reports of previous Presidential Emoluments Committees, namely, Edu-Buandoh (2016), Addy (2011), Yamson (2009), Chinery-Hesse (2005; 2008) and Greenstreet (1993; 1998) to the Committee. The Committee also had access to official correspondence relevant to the assignment from the Office of the Chief of Staff and the Parliamentary Service. These documents were reviewed and critically analysed. Consultations with Article 71 Office Holders: the Committee considered it very important to heat the views of both current and former Article 71 Office Holders, with respect to their Knowledge of and views on the prevailing conditions. The interactions also sought their opinions on the status of implementation of the recommendations presented by previous Presidential Committees. The Committee therefore held interactive meetings with leadership and/or representatives of all Article 71 Office Holders. The officers that the Committee interacted with included HE the President, Parliamentary Leadership, including the Rt. Hon. Speaker, Members of the Council of State, representatives of the Judiciary (including the Chief Justice), the Legal Committee of the National House of Chiefs (representing the National House of Chiefs), Chairpersons and selected Commissioners of all the Independent Constitutional Bodies listed under Article 71. The Committee also interacted with some retired/former beneficiaries of Article 71, including all three living former Presidents, the Forum for Former Members of Parliament, as well as retired Chairpersons of the Electoral Commission and the Public Services Commission (see Appendix 1). General Public Consultations: the Committee solicited public opinion and perceptions on the different issues related to the emoluments of Article 71 Office Holders, in particular, the process for determination, Jevel/quantum and implementation of the salaries, facilities and privileges recommended. Five public consultations were held in Accra, Koforidua, Kumasi, ‘Takoradi and Tamale, bringing together representatives of Professional Associations, Civil Society Organisations (CSOs), Metropolitan, Municipal, and District Chief Executives ie(MMDCEs) and selected opinion leaders from the various regions (see Appendix 1). Each meeting started with a presentation on Article 71, the mandate of the Committee and the strategy adopted to deliver on the assignment. Following the presentation and general discussions addressing specific issues raised, the participants were divided into three to four break-out groups depending on their number and given a set of specific questions to discuss and report back to plenary, ‘The key issues emerging from the public consultations are summarised in Chapter 3. Interactions with Selected Eminent Personalities: In addition to the public consultations, the ‘Committee also held one-on-one interactive meetings with selected eminent personalities in Ghana as well as Chairpersons of previous PCEs to seek their views and advice based on their experiences. 4.4 Guiding Principles ‘The Committee was guided by a number of principles which have evolved from practices, procedures, usages and conventions which are acknowledged and applied in Ghana's governance system. Again, the Committee took note of the guiding principles outlined in the reports of previous PCEs and adopted those that were considered to be of continuous relevance to the determination of the emoluments of Article 71 Office Holders. The ten key principles that guided the Committee's work are outlined below: LAL Equity and Fairness ity and Faimess are important principles in salary administration in both private and public sectors. Fair and equitable salary administration is predicated on having accurate salary ranges ‘based on a transparent job evaluation and job grading system that reflect the realities on the ground. Both the Constitution and the Labour Laws of Ghana make elaborate provisions for equal pay for work of equal value without discrimination of any sort. The Committee was ‘guided, in this regard, by internal and external relativities. In arriving at the fair and equitable compensation, extemal and intemal equity analysis are critical. Whereas internal equity ensures that the compensation is appropriately placed within the salary range in comparison with similar officers within the same job classification, external relativity ensures that salaries and allowances of Article 71 Office Holders do not create disparities and distortions among the general salary levels of public sector workers in Ghana. ‘The Committee took note of the above in recommending salaries, emoluments and gratuities that are considered fair and equitable to the Article 71 Office Holders. TAD Flee Vested cad Asawived Biohic under the Cansiiuiionvested, it automatically accrues to holders of those positions and cannot be taken away from them unless the law or policy is amended or reviewed and the holder consents. ‘The Committee recognized the existing labour practices of respecting and not varying any vested or accrued rights of specific Office Holders and positions. In this regard, the Committee reviewed provisions under Articles 68 (8) & (9) of the 1992 Constitution which prevents the variation of the salary, allowances, facilities, privileges or any pension payable to the President to his disadvantage while in office or during his life time. Similarly, Articles 89(8), 127(5) and 187(12), which prevents the variation of the conditions of certain Article 71 Office Holders such as Judges of the Superior Court of Judicature and other judicial officers, Auditor General, Chairman and members of the Council of State to their disadvantage, also supports the vested rights principle, 1.4.3 Dignity of the Position Article 71 Office Holders belong to a category of public servants who provide leadership for other public servants, protect the image and integrity of the country at both local and international levels and are regarded as the first among equals in the public service arena. Their role shapes, designs and guides the direction of governance and, for that matter, are treated as “Dignified Public Officers’ for the purpose of determining their salaries and emoluments. The Committee therefore took note of their unique position which requites of them to lead the crusade against corruption and fly the “public office integrity flag”. 1.4.4 Ability to Pay ‘The Constitution mandates that the emoluments, pensions, gratuities and benefits of Article 71 Office Holders be charged to the Consolidated Fund. Therefore, in making its recommendations, the Committee was mindful of the levels of domestic revenue, the current national agenda of ‘Ghana Beyond Aid’, the levels of the public sector wage bill, the furure resource mobilization capacities of Government as well as the developmental needs of the country. With a 10 year trend analysis of the revenue mobilization capacities of the country, vis-d-vis the future developmental needs to move the country from the present lower middle income status to upper middle income status, the Committee took the view that the State must be very ‘modest in assigning salaries and emoluments to public officers, especially Article 71 Office Holders. This is especially so when these officers, by their positions, are expected to play a lead role in ensuring that public seotor wages are kept within manageable limits 1.4.5 Context ‘National context is important in wage administration. The Committee's work has been guided by the present economic circumstances of the country as a lower middle income country, the Ghana Beyond Aid agenda, general earnings and income levels in the country, sentiments, 5perceptions and opinions held by the Ghanaian public, as well as the political climate of the country. This, we hope, will ensure that the Committee’s recommendations will meet public expectations, while at the same time avoiding distortion of existing public sector salary levels, but ensuring consistency with the economic status of Ghana as a lower middle income country. The Committee therefore had to strike a fine balance between political, economic, social and general public perception factors in making its recommendations. 14.6 Reasonableness: ‘The Constitution requires that the salaries and allowances, facilities and privileges as well as the pension benefits of Article 71 Office Holders shall be paid out of the Consolidated Fund, which is funded with the taxpayers’ money. Since some of the taxpayers are also public officers paid out of the same fund and in view of the need to assure taxpayers of efficient utilization of their taxes, the Committee took into account the reasonableness, prudence, justifiability, and acceptability of the emoluments of such Office Holders in the context of the overall public sector wage levels. The Committee is of the view that emoluments of Article 71 Office Holders must be seen to be fair; both in the eyes of the Office Holders and the taxpayers. At the end of the day the taxpayers must be satisfied that their taxes are being used efficiently. The Committee also took note of past publie perceptions and sentiments on salaries and privileges of Article 71 Osfice Holders. 14.7 Risk Associated with the Office Anticle 71 Office Holders are expected to provide leadership in national development, and by the nature of the country’s political system, they face different levels and degrees of risks (both locally and internationally) in the discharge of their duties ‘The Committee took note of the provisions in the1992 Constitution and the Labour Act, 2003 (Act 651) to protect and minimise the effect of potential risks on Article 71 Office Holders, and has recommended appropriate facilities/compensation where necessary, to minimize the potential impact of risks on the Office Holders, their family and profession (both in and out of office). ‘The Committee also took note of the need to make adequate, appropriate and attractive provisions to assure Article 71 Office Holders that any anticipated occupational risk they are likely to face will be mitigated. Such assurance, the Committee believes, will make such positions attractive and will encourage qualified Ghanaians to apply their rich experiences to the benefit of the nation. 148 Responsibilities & Requirements of the Position: Axticle 71 Office Holders, being part of the governance architecture of the country, come with responsibilities beyond the normal public service requirements. For instance, such positions 6are not paid overtime, incumbents cannot work to the Shr-day rule and have to make themselves available to respond to duty calls at all times. It is the Committee’s view that occupiers of such positions must therefore be assured of adequate and appropriate compensation to commensurate with the higher responsibilities and demands placed on them. 14.9 Security of Tenure Most of the Office Holders under Article 71 are politicians whose tenure either end with the Government or the Political Party in power, or who hold office at the pleasure of the President and can be relieved at any time. There is also a legal cap on the length of time or period some of the officers can occupy certain positions (even if their party is in power), while other positions have a ‘near 10 permanent’ status, The Committee's recommendations have been informed by the non-permanent and lack of job security of some Article 71 Office Holders. 1.4.10 Motivation and Attractiveness to enable recruitment of persons of High Calibre “Motivation is the process of stimulating people to action in order to accomplish goals and this is influenced by rewards, in the form of cash and non-cash benefits, recognition and job satisfaction. The critical role of Article 71 Office Holders in ensuring good governance and sustained development requires that the offices attract qualified and high calibre Ghanaians. To this end, the Committee's work has been informed by the need to provide adequate motivation in order to attract and sustain experienced and high caliber persons to such positions. The Committee also took note of the provisions in Article 35(8) of the 192 Constitution which requires the State to ‘take steps to eradicate corrupt practices and the abuse of power" The Committee's view on this is that fair and equitable wages and emoluments have to be paid to Article 71 Office Holders to prevent abuse of power and reduce corrupt practices. 1.5 Structure of the Report ‘This report is organised in seven chapters, inclusive of the introductory chapter. We start with a review of the key observations and recommendations in the reports of previous Presidential Committees on Emoluments of Article 71 Office Holders in Chapter 2; Chapter 3 presents a summary of the key issues emerging from the public consultations, including consultations ‘with current and past beneficiaries of Article 71. The outputs from the comparative analyses are presented in Chapters 4 and 5, with Chapter 4 presenting the analysis of the emoluments of Article 71 Office Holders with those of comparable officers in other jurisdictions, while Chapter five presents the comparisons with salaries of other public sector workers in Ghana. In Chapter 6, we pull together the key findings and observations; while Chapter 7, the final chapter, presents the Committee’s recommendations.CHAPTER 2 REVIEW OF PREVIOUS PCE REPORTS 2.0 Introduction In the last quarter century of Constitutional Rule in Ghana, four Presidents have set up four different Presidential Committees on Emoluments (PCE) of Article 71 Office Holders. The Greenstreet Committee set up by President J. J. Rawlings and Chinery-Hesse Committee set up by President John Agyekum Kufuor, covered two administrations each, The Greenstreet Committee submitted its first report in September 1993 and subsequently, was recalled in February 1998 to review the existing salaries and emoluments recommended in its 1993 report. ‘The Chinery-Hesse Committee produced two reports which were later reviewed by the Ishmael ‘Yamson Committee. President John Evans Atta Mills set up the Ewurama Addy Committee in June 2010 and President John Dramani Mahama established the Edu-Buandoh Committee in 2016. In the sections that follow, we review the key findings and recommendations of the various Committees. 2.1 Greenstreet Committee Report, 1993 (1993-1997) ‘The Greenstreet Committee was first constituted in June 1993. The Committee took the view that Article 71 Office Holders are first and foremost public sector workers or officers. The distinction between them and the ordinary civil or public servants is only a matter of scope. On this basis, the Committee recommended that the salaries of Article 71 Office Holders should fall within the salary structure of the Civil Service and sub-vented organisations (i.e., Al- A130). Among the incumbent officers of Article 71, the Greenstreet Committee made a distinction between part-time and full-time Office Holders. It recommended that part-time Office Holders be paid allowances and not salaries. Members of the Council of State were to be paid stipends equal to the basic salary of a Minister. It recommended that part-time members be paid at $0 percent of the salaries of the Justices of the High Court and that part-time members of ‘Commissions be paid 40 percent of the salaries of Justices of the High Court. ‘The Committee conceded that the salaries it recommended were low and were not commensurate with the work of the incumbent officers. It, however, justified this on the basis. of the then prevailing economic situation of the country as well as the mood of the general public. Perhaps to make up for the low pay, the Committee recommended free utilities, medical care, fumished residential accommodation and domestic staff, among other allowances for all eligible Article 71 Office Holders. These were calculated as percentages of their basic salaries. 8‘The 1993 report described the President as a “Guest of the State”, but the Committee did not think that the State should provide its guest a residential accommodation on retirement. It only recommended office accommodation for a former President. The Committee at this point made no recommendations for the provision of facilities and privileges for the Chairpersons and members of the Commissions and Councils. 2.2 Greenstreet Committee Report, 1998 (1997-2000) ‘The Greenstreet Committee was reappointed in June 1998 to make recommendations in respect ofemoluments of Article 71 Office Holders for the period 1997-2001. The Committee was also tasked to review some of its earlier recommendations following persistent complaints from both Article 71 Office Holders and public servants about their pay and conditions of service. Key among the recommendations made were the payment of pensions for top state officials, payment of survivors’ pension in the event of the death of a President, and special responsibility allowance to members of Cabinet (equivalent to 30 percent, 40 percent and 50 percent of basic pay for a Minister, the Vice-President and the President respectively). The Committee further recommended that Ministers of State who double as Members of Parliament (MPs) be paid Constituency Allowance equivalent to 20 percent of their basic salary. The Auditor General was placed on the same level as Justices of the Supreme Court in terms of salary. The Chairman and members of the Council of State's allowances were placed on a higher salary range of A.111 and A.113 respectively. Members of Parliament were also awarded housing allowance equivalent to 20 percent of their basic pay. MPs were also given enhanced duty and travelling allowances. The report recommended the establishment of an “MPs Village to accommodate MPs”. For the first time, it was recommended that the leadership of Parliament be paid responsibility allowance. ‘The Committee limited the payment of ex-gratia to Article 71 Office Holders whose tenure is transitory and contractual. Specifically, it recommended the payment of ex-gratia to the Vice- President, the Speaker, Ministers and Deputy Ministers and Members of Parliament. The President was excluded because he/she is privileged to retire on his/her salary. The career Article 71 Office Holders were therefore not eligible to receive ex-gratia. ‘The Committee acknowledged the equivalences established in the 1992 Constitution between Chairpersons of the Independent Constitutional Bodies (ICBs) and Justices of the Superior Courts. It noted that the equivalences ought to be limited to salari¢s and removal from office and should not be extended to cover retiring benefits, The Committee was clear that under the 1992 Constitution, only the President and Justices of the Superior Courts were privileged to retire on their salary. The President and the Justices of the Superior Courts, the Committee noted, are also barred from holding any private office for profit or emolument on leaving office.2.3. Chinery-Hesse Committee Report, 2005 (2001-2005) The Committee was inaugurated in October 2004 to make recommendations covering the period 2001-2004, The Committee comprised three members including the Chairperson, Mrs Mary Chinery-Hesse, but was assisted by a number of consultants. The Committee recommended the following: Creation of a pay structure for eligible Article 71 Office Holders separate from the rest of the public service as required by the Constitution; Consolidation and monetisation of salary, but excluding housing; Payment of resettlement grant to the Executive and Legislature; Ex-gratia award to Members of the Executive, Legislature, and Council of State using their consolidated salary as the basis for the computation; Computation of Gratuity and Pension Benefits for eligible Article 71 Office Holders on the basis of their consolidated salary; 2.4 Chinery-Hesse Committee Report, December 2008 (2005-2009) ‘The Chinery-Hesse Committee was reappointed in 2008 to make recommendations for the period 2005-2009. This time, the Committee made far-reaching observations and recommendations. A crucial observation was the heterogeneity of Article 71 Office holders. It categorised the eligible officers into fixed term, career and non-career officers, full-time, part- time and transitory appointments (termination at any time). ‘The key recommendations included payment of non-taxable pension to former Article 71 Office Holders. The Committee recommended that a former President be paid a pension equivalent to the consolidated salary ofa sitting President. On the demise of sitting President, the spouse was to be paid a pension equivalent to the salary of a Minister. A former Vice- President who served for a full four-year term was to be paid a pension equivalent to 60 percent of the consolidated salary of a sitting Vice-President, and 80 percent upon completion of two or more consecutive terms in office. The surviving spouse of a deceased Vice-President wes to be paid a salary equivalent to the salary of a Deputy Mit ster. ‘A Speaker who served for a full four-year term was to receive a pension equal to 50 percent of the consolidated salary of an ineumbent Speaker and 60 percent upon completion of two or more consecutive four-year terms, Ministers, Deputy Ministers and Members of Parliament were to receive pensions ranging from 20 percent (if the Office Holder had served for two consecutive terms) to 40 percent (if the Office Holder has served for three consecutive terms). 10For Chairpersons and Commissioners of Councils and Commissions and their Deputies, the Committee recommended pensions in line with the conditions of pension of the Judicial Service Category to which they have equivalence. The Committee further recommended that Members of Parliament be paid @ non-taxable resettlement allowance equivalent to two months of their consolidated pay for every year of completed service. The Committee also recommended that MPs be paid a lump sum advance equivalent to 30 percent of their Housing Allowance to cover the first two years of their parliamentary term. In addition, the State was to facilitate the establishment of a Constituency Office that is adequately equipped, staffed and secured for each Member of Parliament. Finally, the Committee recommended that the State provides seed money equivalent to one million US dollars for the establishment of an independent Institute/Foundation for former Presidents A former President should also be provided with two fully furnished residences, 2.5 Ewurama Addy Committee Report, 2011 (2009-2013) ‘The Ewurama Addy Committee was set up in June 2010 to make recommendations in respect of the emoluments of Article 71 Office holders for the period 2009-2013. ‘The most significant contribution of the Ewurama Addy Committee was the development of the point system that awarded points to eligible officers in the order of the Constitutional Hierarchy. The system made it possible to establish and track relativities among the office holders. In the award of points, the Committee set aside the President as the principal anchor or reference point for all the eligible Article 71 Office Holders. The Vice-President, Speaker of Parliament and Chief Justice were awarded points relative to the President and these three officers were used as anchors for the three branches of government; the Executive, Legislature and Judiciary. The awarded points were used to calculate salaries and gratuities for all the Article 71 Office Holders. In calculating salaries, the Committee linked the salaries of Article 71 Officer Holders directly to salaries on the Single Spine Salary Structure. The Consolidated Salary of a Chief Director was adjusted upwards by a factor of 20 percent and used as the minimum pay for full time Article 71 Office Holders. The Committee recommended the adoption of a system that will allow for automatic adjustment of the pay of Article 71 Office Holders, This was possible given the direct linkage established between the salaries of Article 71 Office Holders and the Single Spine Salary Structure. At the same time, the Ewurama Addy Committee pushed for the establishment of an independent body to allow for periodic review of the emoluments of Article 71 Office Holders. ‘The Committee emphasized that the recommended salaries are consolidated salaries and that Bryfor the sake of integrity, all Office Holders whose utility allowances have been consolidated should pay their utility bills from their salaries! The Committee also recommended that facilities for the work of Office Holders should be paramount in discussions of their emoluments, The Committee recommended that MPs be paid fan installation grant at the start of their parliamentary term to enable them settle down into their work. The Ewurama Addy Committee recognised the issues of retiring benefits and gratuity for MPs and former Presidents, as well as residential accommodation for former Presidents as controversial. The Committee recommended that gratuity or ex-gratia be calculated using the nominal GDP per capita, the award points and the number of months served. On the issue of residential accommodation for former Presidents, the Committee recommended that the State should pay an ex-President 40 percent of his/her consolidated monthly salary instead of providing him/her a house. ‘The Committee noted the secrecy that often surrounded the emoluments of Article 71 Office Holders and therefore recommended that the salaries and other conditions of service of the Officers be made available to the public in the interest of transparency. 2.6 Edu-Buandoh Committee Report 2016 (2013-2017) ‘The Edu-Buandoh Committees was set up in November 2015 to provide recommendations covering the petiod 2013-2017. After reviewing all existing documents including reports of previous PCEs the Edu-Buandoh Committee made extensive recommendations, including the enactment of an Act of Parliament to put some flesh on the skeletal framework of Article 71. “The proposed Act should explicitly require the President to set up the Emolument Committee within 6 months of assuming office. The Edu-Buandoh Committee also endorsed the proposal to establish an Independent Emoluments Commission (IEC). ‘The Committee further recommended that existing laws that made some public service positions analogous to certain categories of Article 71 Office Holders should be amended to abolish the analogies. This would end the practice where recommendations of PCEs are automatically extended to officers of State who are not part of Article 71. The Committee recommended that future PCEs should have definite terms of reference to cover the determination of the emoluments of District/Metropolitan/Municipal Chief Executives. The Committee also drew attention to the peculiar situation of part-time Commissioners of the Electoral Commission. ‘The Edu-Buandoh Committee called for an amendment of the Constitution to separate Article 71 Office Holders with fixed term appointment from career office holders. It recommended the "The exceptions to this are the positions that were used as anchors, i.e. The President Speaker and Chief Justice. ice-President, 2discontinuation of the practice where Justices of the Superior Courts are paid ex-gratia in addition to retiring on their salary. ‘The Committee proposed retiring benefits for Vice-Presidents who disengaged from polities The Committee further recommended that a desk or unit be established at the Office of the President to oversee matters relating to the emoluments of Article 71 Office Holders. The unit should serve as the coordinating centre for the implementation of PCE approved recommendations. 27 Conclusion It is clear from the summaries provided above that many of the issues relating to the implementation of Article 71 have been raised already by previous PCEs. Recommendations have been provided on a number of these issues by one or more PCEs, which have been approved for implementation. However, the fact that some of these issues have continued to be raised by ensuing PCE reports suggests that those issues were not addressed, For example, the issue relating to the accommodation of ex-Presidents remains unresolved, even though each of the previous PCE reports made definite recommendations on it. The review also suggests that various PCEs, despite having followed almost similar guiding principles, have tended to make different recommendations. The reports give the impression that succeeding Committees do not build sufficiently on the work of their predecessors. 3BCHAPTER 3 CONSULTATIONS 3.0 Introduction As part of its methodology, the Committee undertook extensive consultations and interactions with stakeholders including Article 71 Officers Holders, State institutions, Independent Constitutional Bodies, individuals and representatives of the general public (see Appendix 1 for the list of institutions and individuals consulted). The Committee also made special efforts to consult past or retired beneficiaries of Article 71 including the Forum for Former Members of Parliament. ‘These consultations gave the Committee unique insight into the nature of work of the institutions that fall under Article 71. They also provided information about the extent to which recommendations of previous committees were implemented. Indeed, the consultations afforded the beneficiaries the opportunity to express their views on their salaries and facilities/privileges attached to their positions. ‘The consultations with the eminent personalities again provided the Committee enlightened views on the philosophy behind Article 71, how the article has been implemented so far and what the Committee ought to consider in making its recommendations. For the general public, the consultations revealed perceptions about some Article 71 Office Holders some of which, the Committee found to be misplaced. These were in respect of their functions and the Jevel/quantum of their emoluments. These notwithstanding, the Committee received comments and views that greatly assisted its work. ‘This section of the report provides a summary of the main issues and suggestions obtained from the various consultations. The first part of the chapter deals with consultations with beneficiaries. This is followed by consultations with the general public, which included Civil Society Organisations (CSOs), and finally consultations with selected public institutions and ‘eminent personalities. 3.1 The Executive The Committee had the opportunity 10 meet with some members of the Executive Arm of Government including the President of the Republic, His Excellency, Nana Addo Dankwa Akufo Addo, the Vice President, His Excellency Alhaji Dr. Mahamudu Bawumia, the Chief of Staff, the Minister for Finance and the Minister for Employment and Labour Relations. The office of the Chief of Staff submitted to the Committee several important documents detailing the current emoluments of the Executive and other beneficiaries of Article 71 4i) General Issues ‘The President underlined the need to ensure baance between the emoluments of Article 71 Office Holders and those of the broader public sector. The Committee was tasked to ensure uniformity particularly in the privileges of former Presidents. The Committee was asked to correct all existing disparities in the emoluments of Article 71 Office Holders. In this regard, the Committee was entreated to build on the recommendations of previous committees including being more specific and clearer on their recommendations The Committee was further tasked to determine the best way to treat spouses of former Presidents. It was revealed that the State has in recent times assumed responsibility for some of the basic needs of spouses of former Presidents including the payment of monthly allowances, The Executive admits that this isa humanitarian gesture intended to support the spouses to Iead decent lives befitting the status of their husbands. It was however, noted that this gesture is not supported by any legislation. The Committee was therefore, called upon to advise on how to formalize the current rrangement through legislation and ensure that these benefits are clearly stated for the sake of transparency. i) Pension Scheme for Parliamentarians “The Committee was invited to explore the possibility of instituting a pension scheme for Members of Parliament. The Executive has become aware of the ‘near miserable state’ of former MPs, It recognises the moral responsibility on the part of the State to end the poverty into which some of the former Honourable MPs fall once they leave Parliament. Regular payment to them, in their view, in the form of monthly pensions will help ameliorate the suffering of some of the former MPs. iii) Retirement on Salaries ‘The Executive further expressed concern about the issue of Article 71 Office Holders retiring on their salary while at the same time benefiting from gratuity or ex-gratie payments. It therefore, asked the Committee to either abolish the practice or at least review the formula for calculating gratuities for such officers in order to reduce the fiscal burden on the public purse. Wy) Factors to be considered in determining emoluments of Article 71 Office Holders On factors to be considered in determining the emoluments of Article 71 Office Holders, the Executive asked the Committee to be guided by the principles of equity, faimess and social justice. The Committee was entreated to work the numbers in a manner that will bridge the gap between Article 71 Office Holders and the rest of the public sector. Above all, the Committee was asked to align its recommendations to the strength of the economy with particular reference to domestic revenue inflows. 45vy) Establishment of an Independent Emoluments Commission ‘The President in supporting the idea of an Independent Emoluments Commission emphasized the need to make such a Commission a permanent feature of the Ghanaian democracy just like the United States of America. The President was of the view that the 4-year cycle was wasteful vi) Transparency of the Approval Process ‘The President maintained that the approval process for the recommendations of the Presidential Emoluments Committee should be transparent and clear 3.2 Council of State The Committee met with the members of the Council of State on October 31, 2019. The Council raised important issues and made suggestions for the consideration of the Committee, which are summarised below. i) The ever expanding role of the Councit According to members, the role of the Council of State had increased beyond advising the President as stated in the Constitution. The Council is now involved in representations on behalf of the President and the State and their members are involved in mediation and conflict resolution. They advocated that their remuneration should be enhanced to reflect their increased. role in the governance of the country. ii) Accommodation for Members ‘The Council noted thet it usually meets in Accra and members who are not resident in Accra have had to make their own arrangements for accommodation at their own expense. They are given neither accommodation nor housing allowance. They proposed that members who are not resident in Accra should be provided with accommodation in Accra or accommodation allowance during meetings of the Council iti) Official Vehicles ‘The Members indicated that they are not provided with official vehicles or transportation allowance to attend meetings and perform other assignments. Council members who represent the regions have to travel to interact with people in the districts as part of their work. Such ‘members have to foot their own transport and accommodation bills on such travels. According to them, the current arrangement where Government facilitates the granting of loans for Council members to purchase their own vehicles is unfair as a significant proportion of their salaries goes into the repayment of the loans. The Council argued for provision of official vehicles to members just like members of the Executive and the Judiciary. In the interim there should be transportation allowance for attending meetings and undertaking other assignments. 16iv) Other Issues On other matters relating to the work of the Committee, the Council of State advocated for the State to favlitate the writing of biographies of retired Presidents as part of their retirement package. Additionally, the State should encourage and support the continuation of projects and/or charities initiated by @ President's Spouse (First Ladies/First Gentlemen) during the tenure of the President, 3.3. Legislature ‘The Committee held meetings with the leadership and representatives of Parliament on two different occasions. The first meeting was held on September 11, 2019 at the Speakers Conference Room, Parliament House. The second meeting was held on January 17, 2020 at the office of the Chairperson of the Committee, Legon. In both meetings the MPs raised both general and specific issues with their salaries and their placements within the structure of Article 71. The specific issues raised by the MPs are summarised below: i) The Speaker's Entitlements ‘The MPs raised the need for the Speaker's entitlements to be detailed out. For example, the Speaker is entitled to free medical care, including medical reviews outside the country. However, there are no details on the number of persons permitted to accompany him/her and the duration of their stay. ii) Pension Scheme for Parliamentarians ‘The need for a pension scheme for MPs was discussed extensively. The MPs observed that the absence of a pension scheme for MPs makes their life after exiting parliament extremely difficult. Some retired MPs are not able to afford the basic necessities of life, especially healthcare. The Leadership of Parliament recounted several instances where the various parliamentary groups have had to mobilise funds to pay the medical bills of their former colleagues. The Committee was entreated to meet with the Forum for Former Members of Parliament to obtain more information on this. The Parliamentarians proposed a contributory pension scheme for MPs with contributions from the MPs themselves and the Government as the employer. iii) Level of Remumeration As expected the MPs raised concerns about the level of their salaries. They complained that their salary is low compared with other Article 71 Office Holders. They drew the Committee’s attention to their counterparts in other African countries. The MPs urged the Committee to consider the huge expenses incurred by Parliamentarians during electioneering campaigns and the monetary demands on them by their constituents as it recommends adjustments to their salary levels. The Parliamentarians also requested the Committee to consider the fact that the 7MP's position is full time, to the extent that they are not permitted to engage in any form of work alongside the MP role, without the permission of the Speaker. Within Article 71 Office Holders, they suggested that the MPs salary should be placed on the same level as Minister non-MP; Majority and Minority Leaders be placed on the same rank and their salary level elevated above that of the two Deputy Speakers. iv) Formula for calculating Gratuity In respect of their gratuity and the formula used in calculating it, the MPs were similarly unhappy. According to them, given the contractual nature of their job, vis-d-vis their counterparts with secure tenure, the basis for computing their gratuity should be changed to ensure better package for the MPs. V) Duty Post Vehicles ‘The MPs did not understand why Article 71 Office Holders in the Executive and Judiciary arms of Government are provided with duty post vehicles fueled and maintained by the State while MPs have to buy their own cars, fuel and maintain them at their own expense. The current practice where Government facilitates the granting of loans to MPs and pays half of the value is disadvantageous to them. According to them a significant proportion of their salary is used to repay their car loans. At the same time, the MPs recognised the fiseal burden on the State if Government was to purchase a car for each MP, The MPs therefore, suggested that Government should increase the portion of the loan it pays on behalf of MPs. 3.4 The Judiciary - Justices of the Superior Court of Judicature ‘The Committee met with representatives of the Justices of the Superior Court of Judicature on August 16,2019 and again on January 16, 2020. In addition to the two meetings, the Judiciary furnished the Committee with a document containing an analysis of salary levels of the Judiciary in Ghana relative to other jurisdictions and recommendations for the enhancement of salaries for the Judiciary. The issues raised included the following: i) ‘The peculiarity of the Judiciary ‘According to the Justices of the Superior Courts, the work of the Justices of the Superior Courts is different from all other Article 71 Office Holders. In their own words, “we are a judiciary, you cannot do without; you can do without parliament and ministers but not without the judiciary”. They said that in the light of their unique constitutional role and the many restrictions on their personal lives, the emoluments of the Superior Court Justices should not bbe determined in relation to the Executive or the Legislature, According to them, the Judiciary is a profession, while the others are not. On that basis, the Justices urged the Committee to consider de-coupling the Judiciary from all other Article 71 Office Holders in terms of emoluments. The Justices also called for the disengagement of current analogies where certain 18positions in the public service, which have been linked directly and made analogous to positions in the Superior Courts. ii) The Workload of the Judiciary ‘According to the Justices, the workload of the Justices is huge and growing by the day; for instance, the Supreme Court serves as both a Supervising Court and a Constitutional Court. In other jurisdictions, the two roles are separate and handled by different courts. By playing this dual role, the Supreme Court is overlonded, and yet, there is no real distinction between the Justices of the Supreme Court and the other Justices of the Superior Court in terms of pay. This, they urged the Committee to address. It is instructive to note that this suggestion was also made to the Ewurama Addy Committee. iii) Risk Element According to the Justices, their work is risky, both to themselves and their families. Given the sentences they mete out to offenders according to the law, Judges often face the wrath of affected individuals and their families. In spite of this, they do not have adequate security particularly when they retire. They therefore require security after retirement. iv) Prohibition from Undertaking any Form of Work ‘The Judges maintained thet the restrictions on Justices of the Superior Courts including prohibition from doing any form of work during their tenure on the bench and upon retirement ‘makes it imperative for them to be considered for a special package. They indicated that on retirement, their spouses are left out of the medical facilities available to them. They considered this to be an anomaly, which they requested the Committee to rectify. y Level of Salary On salaries, the Judiciary maintained that the Justices of the Superior Courts in Ghana are among the least paid Justices in Africa and the Commonwealth. Pay comparisons between Ghana and four (4) other countries namely Kenya, Nigeria, South Africa and the United Kingdom, showed that the Justices in Ghana are the least paid. The low pay, they opined, has a direct bearing on corruption. The implication is that incidence of “Judicial Corruption” will bbe minimised by paying Judges well. Judges should retire on a respectable salary that will enable them to build or rent decent accommodation and live a respectable life befitting a Justice of the Superior Courts after retirement, vi) Other Allowances The Judges urged the Committee to consider payment of Judicature Allowance to them to compensate them for not being allowed to practice. They also demanded an increase in their book/research allowance as they have no copyright for the judgments they pass and are forced to buy copies of their own judgments. 19vii) The Four-year cycle of the Presidential Committees ‘The Justices called for proper interpretation of Article 71 to determine whether or not it requires that a PCE be set up every four years to determine emoluments of Article 71 Office Holders. 3.5 Independent Constitutional Bodies ‘The Committee met with the Independent Corstitutional Bodies (ICBs) that fall under Article 71 of the 1992 Constitution. The key issues raised by these bodies are summarised below: 3.5.1. Public Services Commission (PSC) ‘The Committee met with the PSC on August 16, 2019 at the offices of the Commission in Accra. The PSC is a regulator of the Ghanaian Public Service and is responsible for setting rules and regulations and conditions of service of public service workers. They are also responsible for conducting interviews and making public appointments. The Commission provides oversight and a gatekeeping role over the public services. The key issues raised by ) Workload ‘The Committee was informed that the PSC’s workload is huge and continues to grow. The creation of new public service agencies/institutions has added to the work of the Commission. In addition, the new Performance Management System (PMS), which the Commission has developed and is currently implementing across the public service has greatly increased its workload. In spite of this, the Commissioners, as well as staff, are not appropriately compensated. i) Element of Risk The Commission’s work is risky and yet, Commissioners have virtually no security. Commissioners conduct interviews on the basis of which they appoint or refuse to appoint candidates into high office in the public service. The Commissioners promote or refuse to promote powerful workers in the public service. These decisions involve considerable risks for which a higher level of security is needed. According to them, the Edu-Buandoh Committee recommended 24-hour security for Commissioners, but that recommendation has not been implemented. iti) Level of Remuneration In the opinion of the PSC, the numbers on Article 71 payroll are not many ané the national treasury can afford better remuneration for all eligible officers. ‘The Commission therefore requested for substantial increases in their pay. 203.5.2. Commission on Human Rights and Administrative Justice (CHRAJ) The Committee met with the Commissioner and Deputy Commissioner of CHRAJ on August 16, 2019 in the Offices of the Commission in Accra and also received written inputs from the CHRAJ. The key issues raised included the following: i) Fairness in Recommendations of Previous Committees According to the CHRAJ Commissioner, the principles of fairness and non-discrimination espoused in the work of previous Committees are important principles that should not be glossed over. In their view, the principles outlined by the previous Committees were not reflected sufficiently in the recommendations put forward. ii) Disparity in Conditions of Service According to the Commissioner, the qualification required for appointment to the position of a CHRAJ Commissioner is the same as that for Judges of the Superior Courts; however, the Judges of the Superior Courts have facilities that are not available to the Commissioners of CHRAJ. These included Book and Research Allowance and a Library for research. The ‘Commissioner argued that all facilities available to the judges of the Superior Courts should be extended to the Commissioners of CHRAJ iii) Workload ‘The Commissioners argued that CHRAJ is the most overworked ICB. It has only three Commissioners superintending what ought to be three separate Commissions, namely: Whistleblower, Ombudsman and Anti-corruption Agency. However, in their opinion, their levels of remuneration do not match this work overload. They demanded an increase in pay and an improvement in other conditions of service. 3.5.3. Electoral Commission (EC) ‘The Committee met with the Chairperson, Deputy Chairpersons and some members of the Electoral Commission on October 30, 2019 in the Board Room of the Electoral Commission in Accra. The key issues raised by the Commissioners included the following: i) Appointment Letters ‘The Committee was informed that the appointment letters of the Chair and the Commissioners donot state their emoluments, including their conditions of service and also they have no access to cither the PCE reports or the approved recommendations pertaining to the EC. Consequently, they are not aware of their entitlements. They recommended that future appointment letters should clearly state salaries and other conditions of service attached to the position. Also, the aPCEs recommendations and those approved should be made available to the eligible institutions and officers. ii) Non-inclusion of Part-time EC Commissioners in the List of Article 71 Office Holders Per the 1992 Constitution, the part-time Commissioners of the EC, unlike the other ICBs, are not Article 71 Office Holders. This, according to the EC, is an anomaly in the Constitution, For instance, all the part-time Commissioners of the NCCE are remunerated under Article 71. The salaries of the Part-time Commissioners of the EC are determined by Parliament, but for several rears, their salaries have not been adjusted to reflect current circumstances. They argued that part-time Commissioners of the EC work as though they are full time and should be considered as such under Article 71, iii) Elements of Risk ‘The Commissioners of EC claimed that they do not have the security commensurate with their work and the inherent risks associated with it. The current Chairperson and Deputy Chairpersons had to procure or make arrangements for their own security. 3.5.4. District Assembly Common Fund ‘The Committee met with the Administrator of the District Assembly Common Fund (DACF) on October 4, 2019 at the offices of the DACF. The key issues she raised included the following: i) Terms and Conditions of Employment ‘The Administrator indicated to the Committee that her letter of appointment did not state her entitlements. Apart from receiving a monthly salary, she is not aware of any other allowances, facilities and privileges she is entitled to. The DACF Administrator recommends that Letters of Appointment of Article 71 Office Holders should state their entitlements. ii) Medical Care inistrator does not receive any medical benefits; however, the DACF has recently set surance through GLICO for its staff. iii) Circulation of Reports of PC! ‘The Administrator insisted that reports of PCEs should be brought to the attention of beneficiaries, Further they should be made aware of the Committee's recommendations that were approved 23.5.5 National Commission for Civic Education (NCCE) ‘The Committee met the Chairperson and Deputy Commissioners of the NCCE on September 3, 2019 at the NCCE’s Headquarters. The Commission is made up of the Chairperson, two Deputy Chairpersons and four Commissioners. The Chairperson and Deputy Chairpersons are full time, while the four Commissioners are part-time, The NCCE, like the other ICBs, is independent of all ministries and presents its budget directly to the Special Budget Committee of Parliament. The Commissioners raised a number of issues and recommendations for the consideration of the Committee, The key issues are summarized below. i) Budgetary Allocation ‘The NCCE mentioned insufficient budget as a major constraint hampering the work of the ‘Commission. According to the Commissioners, the NCCE suffers from being independent and not under any Ministry that will push for approval of its budgetary requirements. In 2019, only GHS2.1m was approved as operational budget compared to the budget request of GHS20m. ‘The Commissioners attributed the low budgets approved for the NCCE to the lack of, appreciation of the work of the Commission and also perceived prejudices of the Special Budget Committee of Parliament. According to them, the Special Budget Committee of Parliament often does not attach much importance to the NCCE and its work. The budget constraints affect not only the work of the NCCE, but equally important, the facilities and privileges available to the Commissioners. ii) Analogy with positions in the Judiciary “The Chairperson’s position is analogous to a Justice of the Court of Appeal. The position of the Deputy Commissioner is analogous to a Justice of the High Court. According to the Commissioners, the analogies meant that they are entitled to salaries, allowances and privileges applicable to a Court of Appeal Judge and a High Court Judge respectively. In reality, however, they do not receive the same allowances and privileges. iti) Contribution to Social Security Social Security contributions are deducted from the salaries of Commissioners even though they are not required under the Law to make these contributions. iy) Appointment Letters Consistent with the pattem observed with other ICBs, the appointment letters of the NCCE Commissioners, including the Chairperson, did not state their entitlements. Reports of PCEs over the years have also not been made available to them. For this reason they do not know the approved recommendations applicable to them. 2B3.5.6 National Council for Tertiary Education (NCTE) The PCE met with the NCTE on September 5, 2019 at the NCTE’s offices in Accra. The key issues raised included the following: i) Workload of Council Members ‘The NCTE has 19 members with an Executive Secretary. All 19 members are part-time Office Holders. However, the members of the Council work as though they are full-time. The responsibilities of the Council and the workload on its members have increased sharply in recent years. As a supervisor of the tertiary education sector, the expansion of the number of tertiary institutions has increased its work. The tertiary environment itself has undergone rapid changes with time-consuming demands on members of the Council. The conversion of Polytechnics and Teacher Training Colleges into tertiary institutions has compounded the problem for the NCTE. ii) Logistics In addition to the regular monthly remuneration, Council members are entitled to sitting allowance. The Chairman and Council members have no official cars or offices. iii) The NCTE vrs, the National Accreditation Board and Related Matters ‘The Executive Secretary advised the Committee to consider the following in making its recommendations in respect of the NCTE: ‘The proposal to merge the NCTE and the National Accreditation Board, with one Director-General and a Deputy Director-General; The policy to have a separate university dedicated to the training of technical and vocational teachers; The Executive Secretary of tertiary education or the equivalent position in Nigeria being analogous to a Supreme Court Judge; ‘The workload on Council members demanding full-time membet 3.5.7 National Media Commission (NMC) ‘The Committee met the members of the National Media Commission (NMC) on August 16, 2019 in the offices of the Commission in Accra. The NMC was represented by its Chairperson and other Commissioners. The Commission is independent and does not report to any Ministry; its role is media monitoring. Annual Reports and budgets are submitted to the Special Budget Committee of Parliament for consideration. The Chairman is not appointed by the President and has no appointment letter. The Chief Justice, and not the President, inaugurates the Commission. All 2%members of the Commission are part-time. The key issues raised by the NMC included the following: i) Workload and Number of Meetings The Commission is constitutionally mandated to meet once every two months, However, given. the expansion of the responsibilities of the Commission and the consequent increases in workload, members currently have to devote considerable amounts of time to the Commission’s work. The Commission will not be able to discharge its functions well if it only met once every two months as mandated ii) Remuneration Memibers of the Commission receive a monthly salary. Commission members, including the Chairman, are not paid Ex-gratia. In terms of privileges, the Chairman of the Commission is given a car, but he has to pay for his own driver and fuel. 3.5.8 Lands Commission ‘The Committee met with the Lands Commission on September 19, 2019 at the Best Westen Premier Hotel in Accra, The membership of the Lands Commission is made up of ten regional and seven institutional representatives. The Commission functions as the manager of all public lands. It interacts with several government agencies and traditional authorities. The Chairman and the Executive Secretary are full ime staff while the other members are part-time. The Full- ‘time members are paid monthly salaries; are provided with accommodation and have the use of an official vehicle. The Part-time Commissioners also are paid monthly salary and receive GHC100.00 a month as transport allowance. All revenues generated by the Commission, such as stamp duties are paid into the Consolidated Fund and are not available for the work of the Commission. The key issues raised by the Commission included the following: i) Workload ‘The workload of the Commission is huge and growing year after year. The demands on members’ time and other resources are also growing. Members are involved deeply in the ‘operations of the Commission and have the responsibility for reviewing and signing documents, and also resolving land disputes across the country. According to the members, they currently spend about 75 percent oftheir time on Lands Commission activities and argued, therefore, that its members should be classified as full-time and remunerated accordingly. ii) Facilities ‘The Regional Chairpersons of the Commission are entitled to official vehicles, but none of them has been provided with one, However, the functions of the Commission at the national level are replicated at the regional level. The volume of work at the regional level is huge, due principally to the uncertain hierarchy of interest in land. Also, the failure of the State to pay 25appropriate compensation for lands it has acquired has dramatically increased litigation as ‘traditional authorities are seeking to take back their lands, The Regional Lands Commissions are at the forefront of these litigations. iii) Staff Complement The Regional Chairpersons and other Commissioners with legal backgrounds ere frequently called upon to assist the legal department of the Commission in court cases as the legal department is overwhelmed. It has too few staff end high staff turnover. In the last few years, the Commission has lost more than 600 staff due to poor pay resulting in a lot of the current staff not having the requisite qualifications and skills, iv) Element of Risk The Chairpersons are required to undertake site inspections. This is a lot of work for them; but more importantly, it is also risky in the areas with land guards. In some instances, the Chairpersons are compelled to recruit surveyors personally to verify/advise on issues. 3.6 Regional Consultations In addition to consulting with beneficiaries of Article 71, the Committee also undertook consultations with the general public et the regional level. These consultations afforded the public the opportunity to share their views on the determination of the emoluments of Article ‘71 Office Holders. The Committee divided the country into five zones and held public fora with various groups and individuals from each zone. Consequently, five public consultations ‘were held at the following locations: i) Koforidua — participants from Eastern, Volta and Oti regions; ii) Takoradi— participants from Central, Western and Westem North regions; iii) Tamale -participants from Northem, North East, Upper East and Upper West regions; iv) Kumasi -participants from Ashanti, Ahafo, Bono, Bono East regions; ¥) Accra participants from the Greater Accra region. In all the five locations, the Committee also met with Metropolitan, Municipal and District Chief Executives (MMDCEs) from the participating regions. At each of the public fora, the Committee sought the views of the public on five key issues, namely: Factors to be considered in determining the emoluments of Article 71 Office Holders; Independent Emolument Commission to determine the compensation of Article 71 Holders; © Retirement benefits of former Presidents; 26«Privileges and responsibilities of MPs; + Other matters relating to the emoluments/privileges of Article 71 Office Holders that the public expects the Committee to consider. Given the diversity of the participants, the opinions expressed on some of these issues were understandably varied, but there was also incredible agreement on some issues. The views expressed are summarised below: 3.6.1 Factors to be considered in determining the Emoluments On this, there was convergence of opinions. The consensus was that the Committee should consider the following issues: Equity and faimess in the determination of the emoluments of Article 71 Office Holders. Specifically, the participants urged the Committee to maintain a relationship between the emoluments of Article 71 Office Holders and the wider public that is fair and equitable ‘The ability of the State not only to pay but also to sustain the payment of whatever emoluments the Committee recommends. Emoluments of similar positions in other countries, particularly, those thet are at comparable level of development with Ghana, ‘© Emoluments recommended being commensurate with dignity of the office. Other factors mentioned by the general public included, a) responsibilities of the office, b) risks associated with the office, c) public expectations of the Office Holder, and ) public perception or the national mood among others. 3.6.2 Independent Emolument Commission ‘The general public expressed misgivings about the establishment of the Presidential Committee on Emoluments every four years to determine emoluments of Article 71 Office Holders. In particular, the public described the setting up of the Committee towards the end of the term of the President as problematic. It creates the perception that the politicians cheat the system by increasing their remuneration and taking huge salary arrears when they are about to leave office. Also, the general public disapproves of the mode of approval of the PCE’s recommendations, describing the approval process as “rigged against the interest of the nation”. The views expressed were that the current practice of isolating few people in the upper echelons of the public service and determining their emoluments every four years separately from the rest of the public service is not only inefficient, but also discriminatory. 27A significant majority of the participants in the consultations, therefore, called for the establishment of an Independent Emoluments Commission (IEC) to determine the emoluments of Article 71 Office Holders on an annual basis. The Fair Wages and Salaries Commission could be transformed to take up the role of such a Commission, The IEC could then be mandated to determine the emoluments of all public servants in the public service. In the absence of such a Commission, the public urged the Committee to come up with a formula/mechanism that will automatically adjust the pay of the eligible officers annually. This ‘will prevent the accumulation of arrears and their resulting macroeconomic effects. 3.6.3 Retirement Benefits for Former Presidents On this matter, there was near consensus that former Presidents should be taken care of by the State. Participants, however, disagreed on the details of that care. Many agreed with the Constitutional provision that allows Presidents to retire on their salary. Majority also agreed that former Presidents should be provided with residential and office accommodation, adequate security, vehicles and free medical care that covers their spouses and children under 18 years. ‘The number of resider accommodation was, however, a source of controversy; while some advocated for two houses, others thought one house should be adequate. Participants also disagreed on the number of cars that should be allocated to a former President. The disagreement over the number of security personnel was resolved by the view to defer this to the National Security. A greater proportion of the participants also disagreed with State support for Spouses and children of former Presidents. Many were not in favour of the State taking care of spouses and children of former Presidents especially when the former President is alive. Participants will only support State support for the spouse of a former President when the President is deceased. Some advocated for one-half of the monthly salary of a deceased President to be paid to the Spouse. 3.6.4 Privileges and Responsibilities of MPs (@) Privileges ‘The views expressed by the participants in all the consultations on privileges of MPs were uniform, but largely unsupported by the available evidence. A greater number of participants in the regional consultations held the view that MPs are well catered for to the extent that MPs are among the highest paid in the public service. The general public’s displeasure for the payment of ex-gratia to MPs was palpable, Many carry the impression that MPs are the only cones who are paid ex-gratia in the public service. ‘The general public was therefore, not prepared for any other privileges to be extended to MPs. Several participants advocated for the scrapping of ex-gratia. Others thought ex-gratia should 28be paid once in the parliamentary life of an MP, The practice of facilitating a loan to enable MPs purchase their cars was extensively discussed. Some participants thought the practice should be maintained; others thought MPs should be given official vehicles just like officials of the Executive and Judiciary. Other privileges that came up during the consultations include fuel allowance, office accommodation, residential accommodation allowance and security. (ii) Responsibitities Most of the participants were knowledgeable about the responsibilities of MPs; but they also admitted that the vast majority of Ghanaians appear not to know the legislative and oversight responsibilities of MPs. Most participants saw MPs as agents of development, Beyond development, the MP is expected to grace every occasion in the constituency including funerals and naming ceremonies and are expected to donate handsomely. They would like the MP to hold quarterly town-hall meetings with Constituents. In addition, the MP must be enabled to ‘monitor and evaluate central government projects in the constituency. 3.6.5 Other matters relating to the emoluments of Article 71 Office Holders Participants had mixed reactions to payment of tax by the President; while some participants thought the President should not be made to pay tax on hishher income; others thought otherwise. They argued that the President paying tax will encourage all Ghanaians to discharge their tax obligations. Some participants argued that Article 71 emoluments should be linked to emoluments on the Single Spine Salary Structure. Others recommended substantial increases in the remuneration of Article 71 Office Holders in order to attract qualified and committed officers and also to abate corruption. However, others argued that the Committee should consider evaluating the performance of Article 71 Office Holders before adjusting their pay. ‘Some participants argued for former Presidents to be assigned responsibilities so that the State could benefit from their experience; this in their view, will also prevent them from unnecessarily intervening in the political discourse. Finally, MMDCEs would like the Committee to regularize the status of MMDCEs with respect to Article 71. 3.7 Eminent Personalities and Selected Key National Institutions ‘The Committee consulted with several eminent Ghanaians including chiefs, former Presidents and current and former public servants as well as selected national institutions including the National House of Chiefs and the Peace Council (see Appendix for the list of persons consulted). The eminent personalities expressed varied opinions on the emoluments of Article 71 Office Holders. The key issues expressed are summarized below: i) The eminent personalities encouraged the Committee to make bold recommendations: “Ghana’s interest must prevail over the interest of the 28beneficiaries of Article 71”. In plain language, the Committee was asked to make the recommendations in the interest of Ghana and not politicians. ii) The issues of equity and fairness should guide the work of the Committee. On this, the Committee was entreated to make every effort to link the emoluments of Article 71 Office Holders to the general salary regime in the public service. The pay gap between the “governors” and the governed” should not be overlooked. For instance, the Ya-Naa specifically asked the Committee to think about the Teachers and Nurses, the Farmers and Fisherfolk, as it adjusts the pay of Article 71 Office Holders, The benefits given to Article 71 Office Holders should not be such that other workers in the public sector would feel unappreciated and cheated. Faimess, equity and sense of proportion should guide these decisions. Some key persons advocated for a freeze on increases in Article 71 Office Holders salaries until the gap between the remuneration of public officers and Article 71 Office Holders is reduced iii) The Committee was asked to make a distinction among the various categories of Article 71 Office Holders with reference to elected positions and career positions. Also, elected officers who serve for four years should be distinguished from those who served two or more terms when it comes to entitlements. iv) The Committee should endeavor to complete its work at least a year before the end of the first term of the President to ensure that its recommendations are implemented before the end of his term. Y) The ex-gratia for MPs should be abolished and replaced with a pension scheme. Apart from the fiscal burden for the State and the sense of unfaimess felt by the general public, the one-off lump sum payment in the form of ex-gratia could be managed by the MP, leading to the impoverishment of many former MPs. 3.8 Conclusion ‘This Committee has had by far the most extensive consultations with beneficiaries, past beneficiaries, chief3, stakeholders and the general public. The consultations produced substantial information relevant to the work of the Committee. They helped the Committee to appreciate the issues impinging on the implementation of Article 71 from the perspective of current and past beneficiaries, eminent Ghanaians and the general public. The Committee gained useful insight into public perceptions of Article 71 Office Holders and their remuneration. Above all, the consultations produced weighty suggestions that guided the work of the Committee and enabled it to put forward the recommendations contained in Chapter 7 of this report. 30CHAPTER 4 FRAMEWORK FOR DETERMINING EMOLUMENTS OF COMPARABLE. OFFICERS IN OTHER COUNTRIES 4.0 Introduction ‘The methodology adopted by the Committee included a review of the framework for determining emoluments of high public office holders comparable to Article 71 Office Holders in selected countries. The countries selected conformed to the following criteria: © Countries with similar economic circumstances as Ghana (Kenya and Rwanda), Countries with track record of good governance (Australia, Canada, UK and US), ‘+ Availability of data, ‘The comparisons focused primarily on four main areas, namely: the legal/institutional framework, relativities in salaries, types of allowances and facilities. In the sections that follow, the comparable office holders are referred to as High Public Office Holders. 44. Kenya ‘The remuneration of High Public Office Holders in Kenya has evolved, with the changes affecting both the levels and the structure of remunerations. In the past two decades, various institutional arrangements have been implemented in the determination and revision of the emoluments of different branches of government. At one time, the Parliamentary Service Commission was responsible for reviewing and advising on the remuneration of Members of Parliament; the Judiciary Service Commission was in charge of the remuneration of the Judiciary; and the Public Services Commission had the mandate of determining remuneration for the Executive. For the most part, the membership of these Commissions included people who were also beneficiaries of their decisions. In 1999, Parliament gained control over the determination of its own emoluments. This resulted in phenomenal pay increases for Parliamentarians. In 2004, the Permanent Public Service Remuneration Review Board (PPSRRB) was established as part of measures to rationalise the remuneration regime. The PPSRRB did not have the necessary legal backing and its members were drawn from the very commissions that the Board was created to restrain. The Board supervised the astronomical increases in the remuneration of High Public Office Holders, making Kenya the outlier and the “talk of the town” among Africa’s politicians. In the last decade, as part of the 2010 constitutional reforms, the Government sought to strengthen the institutional mechanisms for reviewing pay across the Kenyan public service, particularly pay for the High Public Office Holders. The Government established the Salaries and Remuneration Commission (SRC), with the mandate to set remuneration (basic salaries, 31allowances and benefits) for all Public Office Holders, including the emoluments of High Public Office Holders. In terms of relativities, the Kenyan President is the highest paid among the High Public Office Holders; the Vice President takes 85 percent of the President’s pay, and the Speakers of the Senate and National Assembly are remunerated at the same level as the Chief Justice of the Republic. 4.2 Rwanda ‘The Cabinet Guidelines for Fixing Salaries in the Rwandan Public Sector was adopted in 2004. Implementation of the Guidelines commenced in 2006. A year before the implementation, a job classification structure ranked all positions across the public sector: executive, legislature and judiciary, from the highest to the lowest. The position of the President of the Republic was ranked as the highest public office holder. The classification structure was signed into law. In 2012, the Chamber of Deputies passed a bill authorising allowances and benefits for top politicians. The Bill effectively categorised the remuneration of High Public Office Holders into two: @ salary on the one hang, and allowances and benefits on the other. It categorised senior political leaders into four groups as follows: i) Head of State/President of the Republic; ii) Prime Minister, President of the Chamber of Deputies and the Serate; iii) Ministers, Vice Presidents of the Senate and Deputy Speakers, State Ministers, Governors of Provinces and the Mayor of Kigali; and iv) Senators and Deputies. ‘The President's salary is pegged at 40% higher than the salary of the next highest paid State High Political Leader. 4.3 South Africa ‘The 1996 Constitution of South Africa mandated the National Assembly to “establish an independent commission to make recommendations concerning the salaries, allowances and benefits...” of High Public Office Holders. Consequently, the Independent Commission for the Remuneration of Public Office Bearers Act, 1997 (the Commission Act) and the Remuneration of Public Office Bearers Act, 1998 (the Remuneration Act) were enacted, ‘The Commission is responsible for reviewing and making recommendations on remunerations covering salaries, allowances and benefits, and also determining the facilities required for the efficient execution of the mandate of the Executive, Legislature, Provincial Government, Local 32Government, Traditional Leaders, Judges and Migistrates*, The review is done annually. The Commission recommends pay adjustment; the Government considers the recommendations and determines the actual pay adjustments. The Commission is also mandated to publish its recommendations in the government gazette. In practice, Government has rarely disregarded the recommendations of the Commission. With the publication of both the recommendations and the actual pay awards, Government is obliged to justify any deviations. The legislative framework empowers the President to determine the remuneration of members of the Legislature and the Judiciary following the recommendations of the Remuneration Commission. Parliament in turn approves the remuneration of the President based on the Commission's recommendations. 4.4 Australia ‘The authority to determine and review emoluments of High Public Office Holders in Australia rests solely with the Remuneration Tribunal (RT). The RT is an independent statutory body established under the Remuneration Tribunal Act (1973). ‘The Tribunal is mandated to set, report and advise on all matters relating to remuneration (including allowances and entitlements of members of the Federal Parliament, Judiciary, Ministers and Secretaries of Departments, State Offices and specified Statutory Offices, ‘members of Federal Commissions and Principal Executive Offices. The remuneration of these officials is adjusted annually, using a Cost of Living Allowance (COLA) mechanism based on aweighted average of pay increases for comparable positions in the private sector, 45 Canada ‘The Parliament of Canada Act (R.S.C 1985) and its various amendments provide the basic legislative framework for the determination of the remuneration of High Public Office Holders. ‘The law requires the Govemor in Council to appoint a Commission within two months after each general election, to determine the salaries and allowances payable to members of the Senate and the House of Commons. The Commission is expected to make recommendations within six months of its appointment. The Commissions are generally known by the name of their Chairs or members. Since 1975, every Commission has recommended an increase in the remuneration of MPs; and since 1980, the tabling of every Commission’s report has been followed by a government legislation that essentially makes implementation of the recommendations obligatory. Salaries of MPs are reviewed yearly starting on April 1. All MPs receive the same salaries. MPs who have additional responsibilities receive extra salaries. 2 nttp://www.remcommission.gov.23/ 33‘The Compensation Policy, adopted in 2003, provides the framework that guides the determination of remuneration in the Federal Government of Canada (Treasury Board of Canada Secretariat, 2009). The policy set up the Committee on Senior Level Retention and Compensation, which is mandated to provide independent advice and recommendations to the Treasury Board Secretariat in respect of the remunerations of the Executive, Ministers and other appointees of the Governor in Council For Federal Judges, the Canadian Constitution mandates Parliament to fix their salaries, allowances and pensions. The Judges Act prescribes as follows ‘+ Remunerations, pensions and benefits are reviewed every four years by an independent Judicial Compensation and Benefits Commission appointed by the Governor in Council; Salaries are adjusted annually using a Cost of Living Adjustment (COLA) mechanism ‘The Commission submits its report to Parliament, which is expected to respond within six months of receipt. ‘The Canadian Chief Justice is paid about 16 percent more than the Prime Ministers are paid at the same level as the Speaker of Parliament, ister; Cabinet Former Canadian Prime Ministers are entitled to a pension that is linked directly to the number of years served. Prime Ministers who serve for at least 4 years receive pensionable allowance equal to two-thirds of their annual salary. Members of Parliament also have a pension on retirement. Under the Member of Parliament Retiring Allowance Act, former MPs who have contributed to the MP’s pension plan for 2 minimum of six years and have attained the age of 55 are eligible to receive a retirement allowance (pension). 4.6 United Kingdom ‘The Ministerial and other Salaries Act of 1975 provides the legal framework for the remuneration of High Public Office Holders in the UK. From 1971 to 2011, the emoluments of Members of Parliament was determined by a formula linked directly to the pay bands of senior officers of the civil service. In this period, the Review Body on Senior Salaries (RBSS) was mandated to review and advise on parliamentary emoluments, including allowances and pensions. The RBSS was also in charge of setting and reviewing remunerations for senior positions in the Civil Service, Military, Judiciary, and National Health Service. ‘The RBSS only recommends adjustments in pay and other conditions of service. On the basis of the recommendations, Parliament votes on their own salaries and pensions. For the Judiciary, the Prime Minister acts on the recommendations of the RBSS to set their pay including the pay of top administrators in the public service. 34‘The 2010, the United Kingdom parliamentary expense scandal which involved allegations of expense system abuse made against specific members of the British Parliament led to a change in the arrangements described above. The scandal prompted the enactment of two additional legislations: Parliamentary Standards Act (2009) and the Constitutional Reform and Governance Act (2010). Following these legisative changes, the Independent Parliamentary Standards Authority (IPSA) was established to review the emoluments of MPs. This is done at the begining of every parliamentary term. These changes, however, did not affect the RBSS and its mandate to review and advise on the remuneration of the Judiciary, Senior Public Servants, Senior Officers of the Armed Forces and other groups In terms of pay relativities, the Chief Justice is the highest paid among the High Public Office Holders (Valentine, 2013). Cabinet Ministers are remunerated at the same level as the Speaker of Parliament. Ordinary Members of Parliament earn less than other public officers, including magistrates. 4.7 United States of America ‘Congress sets the remuneration of the President and Congress by passing legislation that sets the President's remuneration before a President commences his/her term. As required by Article II, Section | of the United States Constitution, the President's emoluments may not be changed during his/her term in office, In more than two centuries, the remuneration of the US President has only been revised six times. It was last revised in 1999 to US$400,000 per annum (Congressional Research Service, Report RS20115). Since 1949, in addition to his/her salary, the President receives anon-taxable ‘US$50,000 annual expenses account for official purposes. Congress, with its responsibility over expenditure, revenues and debt measures, is in charge of its own remuneration. However, there is a significant limitation on Congress’ ability to raise its remuneration; any revision of Congress’ remuneration has to cascade through the entire federal remuneration structure. In essence, any rate of increase in congressional remunerations affects the salaries of Federal Judges and those of other Senior Administration Officials. ‘The Former Presidents’ Act of 1958 sets forth the retiring benefits of US Presidents. All former Presidents are entitled to a taxable pensi mn, staff and office expenses. The office expenses include travel funds, medical or health insurance, secret service protection and the establishment of Presidential Libraries in their name, managed by the National Archives and Records Administration. In terms of retirement benefits, the Vice President enjoys the same retirement benefits available to other federal employees under the Federal Employees Retirement Plan. 35‘The Salary and other Benefits of the Vice President are decided separately from that of the President. The Vice President’s salary is set at about 59 percent of the salary of the President and is used as the benchmark for the salaries of all other Administration Officials. The Vice President receives the automatic Cost of Living Adjustment that is awarded to other federal employees by Congress. 4.8 Conclusion ‘The review shows that the legal and institutional arrangements for determining pay of High Public Officials differ from country to country. Even within the same country, the arrangement ‘could differ from one branch of government to another. It is also important to mention that the remuneration processes are never static; for most of the matured democracies the process has evolved over time. In most of the selected countries, the emoluments of High Public Office Holders is determined separately from the rest of the public service. At the same time, the pay levels in the broader public service, particularly those of senior public officials, serve as a benchmerk for determining pay of the High Public Officers. 36‘Table 4.1 outside and within Africa Overview of remuneration determination practices in selected countries Executive Branch Legislative Branch Judicial Branch__| Top Administrators] enya President's remuneration setby | Pasiamentseisits | Remuneration | Remuneration proposed by aviament; cabinet cownremuneration | proposed by the | the Public Service remuneration set bythe ‘based upon the advice | Judicial Service | Commission with | Prsiest ofthe Paciamentary | Commission with | sgnifieant influence from | Service Commission | significant the incumbents themselves ina Appropriation | influence from the | Dillthat requires the | incumbenis | President's themselves | spprovalsignaiure eae! Single Spine Salary Structure | Single Spine Salary | Single Spine Salary | Single Spine Salary (6), Adjasiments programmed | Sirscure ($3 Structure ($0) Structure (8). Adjustments ‘with pay policy. Remuneration | Adjustments Adjusiments programmed with pay | Board w be established. Other | programmed with pay | programmed with | poliey. Remuneration remuneration and benefits et by | poiey. Remneration | pay pote. Board to be established, Patient | Board to be Remuneration established Bosrd tobe | established, | South Africa Remuneration setby Parliament | Remuneration sci by | Remuneration set | Remuneration set by the based upon advice of the President based upon | by President based | ICRPOB Independent Commission forthe | advice ofthe upon advice ofthe Remuneration of Public Office yoRPOB ICRPOB, with the Bearers (ICRPOB) approval of Parliament Australia ‘Remuneration sty he Remuneration se'by | Remuneration et | Remuneration ety he Remuneration Tabunal, adjusted | the Remuneration | bythe Remuneration Tribunal, sanvally Tribunal, adjusted | Remuneration | adjusted annually sally ‘Tribunal, adjusted annual Canada “The Advisory Commies on | Bendhmarked 10 008 | Remuneration set | Remuneration se by the Senior Level Retention and | and adjusted annually | by Parliament on | Treasury Board on advice Compensation makes linked to Industrial | theadvice ofthe | of te Advisory Committee recommendations to the Aggregac index | Juical fn Senior Level Retention, President ofthe Treasury Board CCompessaton and | and Compensation Seer Benefits | | Commission UK ‘The Review Body on Senior Remuneration set by | Remuneration set | Remuneration set by the Salaries (RBSS) rakes theladependent’ | by the PMonthe | PM on the advice ofthe recommendations to Prime | Patliamentary advice ofthe BSS Minster (PM), Lord Chanectr | Standards Authority | Review Body on andthe Secretary of Defence, Senior Salaries (RBSS) USA Presidents remuneration siby | Congress seis is own | Remuneration | Remuneration selby Congress; remuneration of | remuneration, but | direaly linked to | Ofice of Personnel cabinet scerctarics and other | withlinksto other | Congressional _| Management based upon politial appointees linked to | High Pubic Officers_| remuneration formula linked 10 ongressional remuneration | and the broader pubic congressional ‘through formula set by Office of | service remuneration Personne! Management to Gource: Valentine, 2013) 37CHAPTER 5 COMPARATIVE ANALYSIS: ARTICLE 71 EMOLUMENTS AND OTHER SECTORS 5.0 Introduction Remuneration in the Ghanaian public sector is characterised by low pay and pay inequities. Efforts to restrain the wage bill have often been constrained by the inability of Government to bridge the gap between majority of public servants with low earings and a minority (Article 71 Office Holders) perceived to be earning high incomes. While most pay reform initiatives have specifically targeted pay inequities, the problem has persisted and appears to be getting worse. ‘The recommendations of the Chinery-Hesse Committee to separate the emoluments of Article 71 Office Holders from the rest of the public service marked an important tuming point in the evolution of the emoluments of the two groups. The emoluments recommended for Article 71 Office Holders at that point without commensurate increases for others in the public service created the disparities that has persisted between the two classes of public office holders. The comparative analysis with other sectors of the economy focuses on the public sector workers on the Single Spine Salary Structure and other public sector workers. 54 Relationship between salaries of Article 71, Base Pay and National Daily Minimum Wage In 2010, the Base Pay? on the Single Spine Salary Structure (SSSS) was pegged at GHS1,108.08 per annum, implying a monthly base pay of GHS92.34, while the monthly minimum wage was GHS83.97 (TUC, 2015; FWSC, 2019). At that time, the base pay was about 2 percent of the minimum pay on the Article 71 pay structure. However, the wage freeze in 2014, combined with subsequent wage increases that were below the inflation rate led to a decline in the real wage on the SSSS, with the result that by 2016, the base pay had shrunk to 16 percent of the minimum pay under Article 71. In the same period, the minimum wage maintained a steady ratio of 1.9 percent of the minimum pay under Article 71 (Figure 5.1). 2 Relationship between Article 74 Salaries and Pay on Single Spine Salary Structure (SSSS) ‘The pay differential between public service workers on the SSSS and Article 71 Office Holders is wide and growing. The disparities have given rise to a view among workers on the SSSS and the general public that the “rising public sector wage bill emanates directly from the fat salaries 2 This isthe minimum pay on the single spine salary structure. It is one of the most important negotiable items of the Single Spine Pay Policy 38and other privileges of Article 71 Office Holders. This view is strongly held even though it is ‘unsupported by the available evidence, The number on the payroll of Article 71 is around five hundred and their total emoluments constitute less than one percent of the total public sector compensation. FigureS.. Comparing Minimum Wage, Base Pay and Minimum Pay under Article 71 (2010- 2016) (Source: Mo & PVVSC) | . i | li 4 . é | Fai 2011012201820 20s O86 = a is Title a F : | sms tyne Py —Sensy visit ves | « Article 71 Minimum Monthly Pay ote UL ‘The average salary for Article 71 Office Holders in 2010 was GH¢ 8,343.40; this was fourteen times the average salary of GH¢ 584.96 on the SSSS. By 2016, the average salary for Article 71 Office Holders had more than doubled to GH¢ 18,211.76, compared with an average salary on the SSSS of GHe1, 128.43, i., 6 percent of the average for Article 71 Office Holders. Table 5.1 shows the comparative analysis of average salary for Article 71 Office Holders and the SSSS based on the 2010 and 2016 fiscal years. However, despite accounting for a much smaller proportion of the total public sector compensation, the average pay at the individual level of the Article 71 Office Holder is much higher than pay levels on the SSSS. In 2016, a Member of Parliament (MP) earned a monthly salary of GHC19,136 per month. In the same year, the highest paid public service worker on the SSSS earned a monthly salary of GHCS,325.20. This translates to only 28 percent of the MP's monthly pay. ‘The various Presidential Committees on Emoluments (PCE) of Article 71 Office Holders subsequent to the Chinery-Hesse Committee have been careful in maintaining a balance between the emoluments of Article 71 Office Holders and the rest of the public service. For example the Ewurama Addy Committee (2011) introduced an award point system providing relativities between Article 71 and the SSSS, under which the consolidated salary of a Chief Director was adjusted upwards by a factor of 20 percent and used as the minimum pay for a full time Article 71 Office Holder. Upholding this principle would have maintained the 39relativities between Article 71 and SSSS. However, in the process of approving the various PCE reports, the relativities have often been disregarded, leading to pay adjustments for Article 71 that have worsened the inequalities. Invariably, the pay levels recommenced by the PCEs have been reviewed upward significantly without recourse to the rigorous analysis that went into the proposals. ‘TableS.1 Average monthly salary (GHS) of Article 71 Office Holders and salaries of Public Sector workers on SSSS ] 2016 2010 Statistic ‘Article71 | S858 Article 71 | SSSS Mean 18,211.76 1128.43 8343.40 384.96 Median 18,986.50 749.20 8580 | 39026 Minimum 11,661.00 178.78 4,620 9238 Maxinvum 29,899.00 432491 | 13,200 | 2233.86 sD 3,935.53 1008.88 1,600.89 32130 | 75M tie (QS) | 21,578.50 1542.37 9,108 T9887 ‘Source: Committee's calculation For example, with the Edu-Buandoh Committee report (2016) covering the period 2013-2017, the pay levels recommended by the Committee were reviewed upward by an average of 35 percent (Figure 5,2). The effect was that in this period, the pay levels for Article 71 Office Holders went up by an average of 15.6 percent; inflation averaged 12.8 percent; and the base pay on the SSS went up by an average of 12.2 percent, thereby aggravating the disparities between salaries of Article 71 Office Holders and Public Service workers on the SSSS Figure $2. Recommended vrs. Approved Pay Levels for selected Article 71 Office Holders (Source: Edu-Buandoh Committee Report, 2016) 25,000 20,000 15,000 10,000 5,000 0 22,809] 35,000 29899 30,000 — pail | 19136 13,686] Me Speaker of Chief Justice President Parliament wRecommended m Anproved | 40In 2013, Article 71 Office Holders saw a collective increase of 43 percent in their pay levels. For the remainder of the period covered by the Edu-Buandoh Committee (2014-2016), the pay levels went up by 10 percent annually. In this same period, workers on the SSSS were receiving wage awards below inflation rate, including a freeze on wage increase in 2014 [award of Cost of Living Allowance (COLA) instead]. The cumulative effect of these differential adjustments is that while Article 71 salaries saw increases, wages on the SSSS experienced declines in real terms (Figure 5.3). S 2011 2012 2013 2018 2015 2016 my%change in base pay inflation rate 9% change in Article 71 Pay re 5.3. Base Pay/Article 71 Adjustments and Inflation Rate (2011-2016) {Source: PCE Report (2016); GSS (various), FHSC (various)] 5.3 Relationship between salaries of Article 71 Office Holders and Other Public Sector Workers Not on SSSS It is worth noting that while Article 71 Office Holders eam remunerations significantly higher than Public Service Workers on the SSSS, they are by no means the highest paid in the Ghanaian public sector. There are several public sector workers not on the SSSS who enjoy pay and other conditions of service significantly higher and better than Article 71 Office Holders. Figure 3.4 compares pay levels of selected Article 71 Office Holders with those of Chief Executive Officers of selected State-Owned Enterprises and Institutions, including commercially oriented enterprises, e.g., Ghana National Gas Company (GNGC) and regulatory bodies, e.g., Public Utilities Regulatory Commission (PURC) who are not on SSSS. Itis evident from Figure 5.4 that some of the Chief Executives of the Public Sector Institutions have far better pay and conditions of service than Article 71 Office Holders. For example, the President earns approximately 63 percent of the pay of the Chief Executive Officer of the Ghana National Gas Company (GNGC). The basic pay of the CEO of the Ghana Maritime Authority is higher than that of the Chief Justice and the Speaker of Parliament. The basic salary of an MP is approximately 43 percent of the basic pay of the CEO of the National 4Communications Authority (NCA); in fact, the head of the NCA eams about 35 percent more than his boss, the Minister of Communications, who also happens to be an MP Figure 4 Pay Comparison: SSSS, Article 71 and Other Public Sector Workers (Source: MoF, FWSC, 2019). 5.4 Intra Equity Concerns among Article 74 Office Holders ‘Among the Article 71 Office Holders, there are several equity issues. First, the point system developed by the Ewurama-Addy Committee (2011) based on which salary relativities were established have suffered severe distortions over the years. The system initially set the President apart with an award of 100 (one hundred) points. The President was used as an anchor for all other positions under Article 71. The Vice-President, Speaker of Parliament and the Chief Justice were awarded points relative to the President (Ewurama-Addy Committee, 2010). ‘These three positions were in turn, used as anchor or reference points for the Executive, Legislature and Judiciary respectively. ‘The Vice-President was awarded 75 points with recommended salary differential of GHS3000 ‘between him and the President. In the approval process, however, the Vice-President was raised to 90 points and the salary difference between him and the President came down to GHS1200. ‘The Speaker of Parliament and the Chief Justice were awarded 73 and 72 points respectively. Like the Vice-President, the award points were increased for both the Speaker (78) and the Chief Justice (75), with corresponding raise in salaries during the approval processes. These changes were done without the benefit of the rigorous analyses that formed the basis of the established relativities. Combined with other administrative and political decisions, the relativities were completely distorted by 2013, to a point where the Speaker of Parliament was eaming more than the President of the Republic, an anomaly that was rectified by the Edu- Buandoh Committee (2016). 42Further evidence of the distortions and inequalities is seen in the pay relativity between a Member of Parliament and part-time members of the Independent Constitutional Bodies (CBs). In the original recommendation of the Ewurama-Addy Committee (2011), the part time members were awarded 50 percent of the award point of an MP. This was varied to 58% in 2010. Today, part-time members of the ICBs eam approximately 61 percent of MPs pay. The unfaimess lies in the heavy responsibility of the MP, including the colossal demands on their time and resources by their constituents as compared with the responsibilities of part-time members of the ICBs ‘Again, among the ICBs, there are disparities in pay and other facilities. All part-time members of the ICBs are listed as members of Article 71, with the exception of the part-time members of the Electoral Commission (EC), who shall be paid such allowances as Parliament may determine (see Article 44(5) of the Constitution). This has led to a situation where Part-time Members of the EC are paid a paltry sum compared to their counterparts on the other ICBs with whom they share similar responsibilities. ‘There are also disparities in terms of which Article 71 Office Holders qualify to retire on their salaries. Article 68(4) and 155(1) of the Constitution specifically provide for the President and Justices of the Superior Courts to retire on their salaries. To that effect, these Office Holders are barred from holding office of profit or emolument upon retirement. However, following the enactment of various legislations and administrative decisions subsequent to the promulgation of the Constitution, several analogies have been established allowing public officers other than those mentioned in the Constitution to retire on their salaries. For example, the Legal Service Act, 1993 (PNDCL 320) linked the pay and other conditions of service of State Attomeys to those of the Justices of the Superior Court, thus affording them (State Attomeys) the privilege of retiring on their consolidated salaries. Yet, on retirement, the State Attomeys, like heads of the ICBs, are not barred from working, Meanwhile, the Vice-President of the Republic, the second in line to the Presidency, does not retire on his salary. These are glaring inequities and unfaimess in the Article 71 reward system. 6.5 Conclusion ‘The analysis reveals considerable disparities between Article 71 and public service/sector pay structures and within the various groups under Article 71 that cannot be ignored. Of serious concern also is the extension of the conditions under Article 71 to other groups that are not mentioned in the Constitution and the long-term impact of this development on the nation’s ability to sustain such heavy pension payments. ‘The analysis further shows that Article 71 Office Holders are not the highest paid in the public sector, The remuneration structures of several state-owned enterprises and institutions show far better terms and conditions of service than what exists under Article 71 43