GIMPA does not receive regular government funding – Prof Bonsu

Prof Samuel Kwaku Bonsu, the Rector of the Ghana Institute of Management and Public Administration (GIMPA), has revealed that the university does not receive consistent financial backing from the government, despite being a public institution. Speaking on Joy FM's Super Morning Show, Prof Bonsu emphasized that GIMPA operates under a financial autonomy model, which demands that it self-fund its operations. "We receive no money from the government," he affirmed.

However, Bonsu clarified, GIMPA does occasionally receive government funding for specific projects and programs. This financial autonomy is stipulated under the university's founding law, which mandates that GIMPA manages its finances independently, without needing regular allocations from the state. Consequently, the institution does not need to present its budget to Parliament or the responsible ministry for approval, as is required for institutions depending on direct government funding.

The financial autonomy arrangement places a significant responsibility on GIMPA to raise and spend its own money within the confines of the laws of the state. This model puts considerable pressure on GIMPA to generate sufficient revenue to cover its operational costs. During the COVID-19 pandemic, for instance, the university was closed for about 11 months, leaving it with no income while it continued to incur expenses.

This lack of income caused GIMPA to deplete its financial reserves, necessitating borrowing to meet its operational needs.

Bonsu stressed that the experience highlighted the importance of financial discipline and efficient resource utilization. He reported that GIMPA subsequently implemented austerity measures and carried out structural reforms to reduce unnecessary spending and improve operational efficiency.

While GIMPA does not rely on regular government funding, it does receive occasional assistance for specific initiatives. However, the day-to-day financial management of the institution remains primarily under GIMPA’s control. The institute's financial sustainability is heavily reliant on prudent management, efficient operations, and its ability to generate revenue.

Bonsu concluded by underscoring that GIMPA’s financial independence does not imply the absence of government support for certain projects, but rather reflects the institution's commitment to financially sustainable practices through responsible management and efficiency.