In a recent development, the Minority Caucus in Ghana’s Parliament has expressed strong dissatisfaction with the Bank of Ghana (BoG) and its leadership, particularly Governor Dr. Ernest Addison. The Minority has been vocal about what they perceive as financial mismanagement and a lack of accountability within the central bank.
The crux of the Minority’s concerns centers on the BoG’s financial performance in 2022, where the bank reported a staggering loss of over GH₵60.8 billion and a negative equity of GH₵55.1 billion. The Minority attributes these alarming figures to what they describe as the BoG’s reckless and unlawful actions, including the excessive printing of money to finance government expenditures without parliamentary approval. They allege that in 2021 and 2022, the BoG printed GH₵35 billion and GH₵42 billion respectively, far exceeding the legally acceptable threshold of 5% of the previous fiscal year’s total revenue. This, they argue, is a clear violation of Section 30 of the Bank of Ghana (Amendment) Act, 2016 (Act 918).
Furthermore, the Minority has raised concerns about the BoG’s decision to write off approximately GH₵48.4 billion of government debt without seeking parliamentary approval, as mandated by Section 53 of the Public Financial Management Act, 2016 (Act 921). They contend that this action lacks legal basis and undermines the principles of transparency and accountability in the management of public funds.
In response to these allegations, the BoG has issued statements attempting to justify its actions. The central bank attributes the significant losses to factors such as the government’s Domestic Debt Exchange Program (DDEP), COCOBOD loans, and the depreciation of the cedi. The BoG maintains that its interventions were necessary to prevent the collapse of the economy and asserts that the financial outcomes have minimal implications for its operations.
However, the Minority remains unconvinced by these explanations, describing them as deliberate distortions and flimsy justifications. They argue that the BoG’s actions have led to hyperinflation, which reached a record high of 54.1% in December 2022, pushing over 850,000 Ghanaians into poverty, according to a recent World Bank report. The Minority insists that the BoG’s leadership must be held accountable for these outcomes and has called for the immediate resignation of Governor Addison and his deputies.
In a related development, the Minority organized the #OccupyBoGProtest on October 3, 2023, to demand the resignation of the BoG’s leadership. During the protest, they attempted to present a petition to Governor Addison. However, upon arrival at the BoG premises, they were informed that the Governor was unavailable, as he was reportedly attending a meeting with the International Monetary Fund (IMF). The Director of Security at the BoG offered to receive the petition on behalf of the Governor, but the Minority declined, viewing the Governor’s absence as a sign of disrespect. They vowed to return at a later date to present their petition directly to the Governor.
The Minority has also expressed concerns about the status of Ghana’s negotiations with the IMF. They allege that there is a stalemate in discussions for the second tranche of the $3 billion credit facility, due to disagreements between the government and the Official Creditors Committee regarding the cut-off point for external debt to be included in the restructuring exercise. This deadlock, they warn, could jeopardize the release of the next tranche of $600 million, further exacerbating the country’s economic challenges.
In light of these developments, the Minority is considering petitioning the IMF directly to express their concerns about the BoG’s financial management and the potential implications for Ghana’s economic stability. They argue that the IMF, as a key stakeholder in Ghana’s economic affairs, should be apprised of these issues to ensure that any financial assistance provided is utilized effectively and responsibly.
The situation continues to evolve, with the Minority steadfast in their demands for accountability and transparency from the BoG’s leadership. As Ghana navigates these complex financial challenges, the calls for responsible fiscal management and adherence to legal frameworks remain at the forefront of national discourse.
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