COVID-19 crisis forced GIMPA to borrow for operations – Prof Bonsu

The Rector of the Ghana Institute of Management and Public Administration (GIMPA), Prof Samuel Kwaku Bonsu, has disclosed that the institution does not receive regular financial support from the government, despite being a public institution. Speaking on Joy FM’s Super Morning Show on Friday, September 11, Prof Bonsu explained that GIMPA operates under a financial autonomy arrangement that requires the institution to generate and manage its own funds. “We receive no money from the government.

He, however, clarified that the institute occasionally receives government support for specific projects and programmes. According to Prof Bonsu, GIMPA’s financial autonomy is provided for under its establishing law, which gives the institution responsibility for managing its finances without relying on regular allocations from the state. He said the arrangement means GIMPA does not submit its budget to Parliament or the relevant ministry for approval in the same manner as institutions that depend on direct government funding.

Instead, he explained, the institution’s governing council has responsibility for its financial management and related decisions. “We raise and spend our money within the broader confines of the laws of the state,” Prof Bonsu stated. Prof Bonsu said the financial arrangement places considerable pressure on GIMPA to generate enough revenue to meet its operational obligations.

He noted that the situation became particularly difficult during the COVID-19 pandemic, when the institution was shut down, and its normal sources of income were disrupted. Prof Bonsu said GIMPA went for approximately 11 months without income during the pandemic while continuing to incur expenses. Because the institution could not depend on regular government funding during the period, its financial reserves were eventually depleted.

He said GIMPA subsequently had to seek assistance and borrow money to meet some of its operational needs. The experience, according to Prof Bonsu, reinforced the need for the institution to exercise strict financial discipline and carefully assess how its resources were used. He said management consequently introduced austerity measures and undertook structural reforms aimed at reducing unnecessary expenditure and improving efficiency.

Prof Bonsu also noted that GIMPA’s financial independence should not be interpreted a… The Director of the Ghana Institute of Management and Public Administration (GIMPA), Professor Samuel Kwaku Bonsu, has disclosed that the COVID-19 pandemic forced the institution to borrow money to sustain its operations after its revenue was severely disrupted. Prof Bonsu said GIMPA went for approximately 11 months without generating income after the institution was shut down as part of measures to contain the spread of the virus.