Member of Parliament for Madina Constituency, Francis-Xavier Sosu, has issued an unqualified apology for his use of vulgar language during the #OccupyBoGprotest on Tuesday, October 3.
The protest, organised by the NDC minority group in Parliament and some civil society organisations, was aimed at expressing their displeasure over the alleged illegal printing of money by the Bank of Ghana and the poor state of the economy.
Sosu, who is also a human rights lawyer, was captured on video hurling profanities in Ga at the President and his government, accusing them of corruption and mismanagement.
However, in a statement issued on Wednesday, October 4, Sosu said he regretted his choice of words and asked for forgiveness from all those offended.
He said he spoke out of anger and frustration at the Bank of Ghana and the current state of affairs in the country, but admitted that he was completely out of character.
He said he had reflected and realised that his actions were not consistent with his avowed values.
“I wish to sincerely apologise for my choice of words during my outburst yesterday, Tuesday, October 3 2023, during the Occupy BOG Demonstration. I unreservedly apologise for my actions and words and ask that all those offended would find a place in their hearts to forgive me. I am human and this only demonstrated the anguish, pain, frustrations and disappointment at the management of the Bank of Ghana, and at our current state of affairs as a country. I have reflected and realised that though I spoke those words out of anger and extreme provocation, I was completely out of character. Hence, consistent with my avowed values, I am sincerely Sorry,” he said.
Sosu is one of the vocal members of the NDC minority in Parliament and a deputy ranking member of the Constitutional, Legal and Parliamentary Affairs Committee.
I wasn’t intoxicated during the protest yesterday. I was basically consumed by anger and frustration toward the mismanagement at the BoG – Hon. Xavier Sosu ( Member of NDC) #GHToday w/ @Serwaa_Amiherepic.twitter.com/kZ2u9MH5x2
The Bank of Ghana (BoG) is urging banks to swiftly rebuild their capital buffers, particularly by receiving equity capital injections from shareholders.
This move aims to enhance resilience and further bolster the economy. The push for this capital rebuilding stems from the robust growth in bank profits, which comes after substantial losses incurred in 2022 due to the Domestic Debt Exchange Programme.
Dr. Ernest Addison, the Governor of the Bank of Ghana, made this announcement during the 40th Annual General Meeting of the Ghana Association of Banks (GAB). He assured that the early implementation of the Ghana Financial Stability Fund would offer additional support for recapitalization to eligible banks.
This support would align with the criteria and governance framework established in consultation with the International Monetary Fund and the World Bank.
Dr. Addison took the opportunity to reiterate the Central Bank’s commitment to closely monitoring developments in the banking sector, especially in light of the Domestic Debt Exchange Programme and other emerging risks. He emphasized that the Central Bank would take decisive actions as necessary to address any emerging issues.
Furthermore, the Bank of Ghana will ensure the safety of depositors’ funds and maintain stability and resilience in the financial system.
“The Bank appreciates the collaborative approach adopted by GAB and we encourage the association to continue to engage on issues with the aim of building a resilient banking system, within the confines of the law.”
The Governor emphasized the Bank of Ghana’s unwavering commitment to fostering a robust, secure, and sustainable banking sector that contributes to the nation’s growth objectives.
“While several policy measures have been implemented over the recent past, a lot remains to be done to promote a more resilient banking industry. Going forward, the Bank will continue to strengthen its regulatory and supervisory framework to promote confidence in the financial system”.
Furthermore, alongside the goal of maintaining the profitability levels achieved by banks during the initial eight months of 2023, the Governor emphasized that the Bank of Ghana will actively tackle particular risks associated with high-performing loans, deficient corporate governance, and ineffective risk management systems. This approach is intended to bolster robust risk management practices within banks, including addressing cybersecurity and information security-related risks.
Additionally, the regulatory authority will persist in implementing the Basel II/III capital standards, with the objective of fortifying the banking sector’s resilience.
The Member of Parliament for Bawku Central, Mahama Ayariga, has declared his intention to lodge a formal complaint against the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, and his deputies with the Office of the Special Prosecutor.
The action is in response to concerns over contracts awarded for the construction of a new central bank headquarters.
In a letter dated October 2, 2023, addressed to the Governor, Ayariga conveyed his intention to take this step due to the lack of transparency regarding the awarded contracts.
“I write to inform you that I will refer you and your deputies to the Office of the Special Prosecutor for investigation and possible prosecution. This is in relation to the matter of the award of a contract for the construction of a new head office building for the Bank of Ghana. I suspect that your team, in collusion with the contractors, overpriced the project with a possible view to obtaining personal gain. I reject your use of “national security considerations” as a reason to refuse to answer my questions properly. My decision to report you is in view of your refusal to provide a proper response to my request for information pursuant to the Right to Information Request,” Mahama said in the letter.
He expressed suspicions of overpricing the project, possibly for personal gain, and rejected the use of “national security considerations” as a reason for withholding information.
Mr Ayariga warned that he would pursue the BoG Governor until he provides clarity on the contract awards to Messrs. Goldkey Properties Limited.
He specifically questioned how a project originally priced at USD 100,857,924.48 for 73,000 sq. m. escalated to USD 121,807,851.94 in the same year and further expanded by approximately 36.9% in scope of works, resulting in a project cost increase of 84%, ultimately costing USD 222,799,760.55.
He emphasized that this inquiry was motivated by a commitment to the nation and the pursuit of a better Ghana.
“Let me assure you that we will pursue you until you come clean on how a project which you yourself had originally priced at USD100,857,924.48 for 73,000sq.m got awarded to Messrs. Goldkey Properties Limited, in the same year, at USD121,807,8517.94 and how a variation in scope of works of about 36.9% increase has led to a project cost escalation of 84% increase which has resulted in the 107,737sq.m now costing USD 222,799,760.55. This is a project priced in United States Dollars. This we do for the love of country and in pursuit of A Better Ghana,” he stated.
Meanwhile, the Minority in Parliament plans to stage a demonstration on Tuesday, October 3, against the Governor. They allege that mismanagement of the central bank under his leadership has resulted in a loss of GH¢60 billion.
The Accra Regional Police Command has given its approval to provide security for the opposition National Democratic Congress (NDC) and several Civil Society Organizations as they plan to carry out a demonstration against the Bank of Ghana (BoG).
In an official statement released by the police, the provision of security on Tuesday, October 3, is in accordance with the provisions of the Public Order Act 1994 (ACT 491).
Additionally, the Command has issued a reminder to the demonstrators to strictly adhere to the planned route, which was outlined in their letter dated September 11. The designated route is as follows: starting from Obra Spot, proceeding through Adabraka, Ridge Roundabout, National Theatre Traffic Light, High Court Complex Traffic Light, Atta Mills Highway, and concluding with a U-Turn to Independence Square.
The police also warned that leaders of the protest should ensure that there is no breach of peace adding that “demonstrators conduct themselves in a peaceful manner before, during and after.”
The Command has provided assurance to the protest organizers of its ongoing cooperation and dedication to maintaining law and order during the planned public demonstration, in accordance with the responsibilities of the Ghana Police Service.
This agreement follows a series of discussions and engagements between the Ghana Police Service and the protest organizers.
Originally scheduled for September 5, the initial protest aimed to address various economic inconsistencies under the current administration of the Bank of Ghana.
During a meeting held with the leadership of the Accra Police on August 23, the protest organizers revealed the proposed routes for their event.
These routes included starting near Parliament House, proceeding through Osu Cemetery traffic light, High Court Complex, Ministry of Finance, Kinbu, Makola – Rawlings Park, Opera Square, and concluding at the premises of the Bank of Ghana Head Office.
The Police expressed their readiness to provide security for the demonstrators on the initially scheduled protest day. However, after conducting a comprehensive assessment of public order and security concerns, the protest leaders were kindly urged to reconsider the proposed routes.
In light of these considerations, the protest has been postponed and rescheduled for Tuesday, October 3rd.
Governor of the Bank of Ghana, Dr. Ernest Addison, has emphasized that the Central Bank can effectively fulfill its role as the government’s lender without requiring positive equity.
He noted that despite the impairment losses reported in the financial year 2022, the Central Bank maintains sufficient buffers to offer the necessary liquidity support to banks.
Speaking during a press briefing at the 114th Monetary Policy Committee (MPC) session in Accra on September 25, 2023, Dr. Addison highlighted that the Central Bank maintains a robust buffer position, even though it reported negative equity in 2022.
“Yes, the BoG can assist as the lender of last resort,” the BoG Governor said.
He also stated that commercial banks maintain 12% of their deposits with the central bank as liquidity, implying that the BoG has resources to fall back on if any of them require assistance.
“The central bank can operate effectively even in the presence of negative equity, we don’t need positive equity to be effective and we don’t have to print money to do that,” Dr Addison explained.
However, he highlighted that no bank has approached the central bank for liquidity assistance yet. Nevertheless, he emphasized that the Bank of Ghana (BoG) stands prepared to provide the necessary liquidity support to banks in accordance with the established guidelines.
Meanwhile, the interbank weighted average lending rate among banks increased to 26.59 percent in August 2023, up from 21.93 percent in August 2022, aligning with the rises in the monetary policy rate.
As a result, the average lending rates offered by banks rose to 31.78 percent in August 2023, compared to the 27.96 percent recorded in August 2022.
The banking sector, according to the BoG, has maintained its stability, with the industry’s total assets increasing to GH¢244.7 billion in August 2023, up from GH¢204.6 billion in August 2022.
Additionally, this growth in bank assets was primarily funded by a substantial 38.9 percent increase in deposits, rising from GH¢136.7 billion in the corresponding period.
However, total borrowings by banks contracted by 41.0 percent, decreasing to GH¢13.9 billion in August 2023 from GH¢23.5 billion in the previous year.
Data from the Bank of Ghana reveals that as of August 2023, Ghana’s export earnings experienced a 9% decline. According to the report, the total exports during this period amounted to US$10.76 billion, which is notably lower than the US$11.81 billion recorded in August 2022.
For the initial eight months of the year, the trade account showed a surplus of US$2.0 billion, in contrast to the US$1.6 billion recorded in the same period the previous year. This surplus was primarily a result of import compression and a decrease in exports.
Gold exports remained Ghana’s dominant export commodity, followed closely by cocoa. Gold exports increased from US$4.22 billion to US$4.67 billion.
The total export earnings saw an 8.9% year-on-year decline to US$10.8 billion, primarily due to a significant reduction in crude oil and cocoa products exports. Crude oil exports, in particular, dropped by US$1.5 billion, attributed to an 18.8% decrease in production volumes and a 23.6% decline in prices. Meanwhile, cocoa exports only slightly decreased from US$1.61 billion to US$1.60 billion. Additionally, oil exports saw a significant decline from US$3.82 billion to US$2.65 billion, while other exports decreased from US$2.16 billion to US$2.11 billion.
The trade balance to GDP ratio increased to 2.6%, higher than the 2.1% recorded in 2022.
On the import side, Ghana experienced a reduction from US$10.25 billion to US$8.74 billion. Total imports contracted by 14.7% to US$8.8 billion, compared to the previous year’s US$10.3 billion. This decline was attributed to a 13.1% contraction in non-oil imports to US$6.1 billion and an 18.2% dip in oil and gas imports to US$2.7 billion.
Nana Appiah Mensah, also known as NAM 1, the founder of Menzgold, has pleaded not guilty for allegedly defrauding more than 16,000 individuals of GH¢1.6 billion through the company.
In his defense, NAM 1 denies any wrongdoing related to bypassing Ghanaian laws to operate an unlawful gold deposit-taking business.
NAM 1’s legal counsel, Kwame Akuffo, asserted in the High Court on Tuesday, September 19, that his client did not engage in any activities that violated the Banking and Specialised Deposit-Taking Institutions Act, 2016 (Act ).
Mr. Akuffo further contended that it was officials from the Bank of Ghana (BoG) who had advised NAM 1 to change the company’s name from Menzbank to Menzbanc.
“Indeed, in meetings with the BoG, it was the BoG that recommended that a third accused company (Brew Marketing Consult) be set up in order to ensure that the gold marketing business was kept distinct from the business of Menzgold,” the counsel said.
“I will skip the names because the court may take evidence from them in camera,” counsel said, reports Graphic Online’s Emmanuel Ebo Hawkson from the courtroom.
In the meantime, NAM 1 has entered a plea of not guilty to a total of 39 charges, encompassing violations of Act 930, defrauding by false pretense, fraudulent breach of trust, and money laundering.
The court proceedings, presided over by Dr. Ernest Owusu-Dapaa, a Justice of the Court of Appeal serving as an additional High Court judge, resulted in NAM 1 being granted bail in the amount of GH¢500 million, with the requirement of four sureties.
As part of the bail conditions, Justice Owusu-Dapaa also mandated NAM 1 to surrender his passport to the Court’s Registrar and to report to the headquarters of the Criminal Investigations Department (CID) every Thursday.
Member of Parliament (MP) representing North Tongu, Samuel Okudzeto Ablakwa, has strongly criticized the Bank of Ghana (BoG) for allegedly allocating over GH¢711 million in 2022 for various projects, including the remodeling of regional offices, the construction of a guest house, and a new head office.
He raised concerns about these expenditures, particularly in the midst of an ongoing economic crisis in the country.
Ablakwa took to Facebook on Tuesday, September 19, 2023, to express his dismay, pointing out that the BoG had initially attempted to conceal these financial transactions.
However, the alleged expenditures were brought to light by independent auditors from the auditing firm Deloitte. Ablakwa questioned the need for such secrecy if the central bank believed its actions were above board.
“Thanks to independent auditors at Deloitte, we now know from page 86 of the Bank of Ghana’s 2022 Annual Report and Financial Statements that the Bank of Ghana made a staggering GH¢711.21 million expenditure commitment in its crisis year of 2022 on reckless projects such as its scandalous new head office, remodelling of regional offices and construction of a guest house in Tamale.
“What is equally disgraceful and condemnable was BoG’s attempt to conceal these risky humongous transactions by its disingenuous refusal to disclose them in its original financial statement presented to auditors. Regrettably, the auditors had to make their own discovery.
“If the Bank of Ghana had nothing to hide and was really proud of its sleazy new headquarters project and all the other dubious constructions, why did they deploy such elaborate opaque concealment schemes just to avoid accountability?” he quizzed.
The MP disclosed a fictitious document purporting to be from Deloitte that claimed the BoG failed to disclose GH711.21 million in capital expenditure commitments in its financial statement as of December 31, 2022.
According to the paper, the biggest expenditure projects included remodeling a few regional branches of the central bank, building a new headquarters for the Bank of Ghana, and building a guest house in Tamale.
The Chief Executive Officer of the now-defunct Menzgold Ghana Limited, Nana Appiah Mensah, commonly referred to as NAM1, has refuted allegations of violating financial regulations to operate an illicit gold dealership business.
NAM1 is currently facing trial for allegedly defrauding more than 16,000 clients of the defunct company, amounting to GH¢1.6 billion.
During his appearance before the High Court on Tuesday, September 19, 2023, NAM1’s legal representative, Kwame Akuffo, asserted that his client had not contravened the provisions of the Banking and Specialised Deposit-Taking Institutions Act, 2016 (Act).
Rather, the lawyer claimed that officials from the country’s central bank, the Bank of Ghana, had advised his client to streamline operations by changing the name of the gold deposit-taking institution from Menzbank (formerly Menzgold) to Menzbac.
“Indeed, in meetings with the BoG, it was the BoG that recommended that third accused company (Brew Marketing Consult) be set up in order to ensure that the gold marketing business was kept distinct from the business of Menzgold,” counsel said, he is quoted by Graphic Online.
Kwame Akuffo, the attorney for NAM1, did not, however, give the identities of the BoG representatives he claimed gave his client the alleged advice.
He said that at the opportune time during the trial, he would exercise his right to subpoena BoG officials to testify before the Court in order to assist his client’s defense. He said that this might alter.
“I will skip the names because the court may take evidence from them in camera,” counsel for NAM1 told the High Court.
The High Court, presided over by Dr. Ernest Owusu-Dapaa, a Justice of the Court of Appeal sitting as an additional High Court judge, later granted bail to Nana Appiah Mensah on Tuesday in the amount of GH500 million with four sureties.
According to state prosecutors, NAM1 is accused of violating Act 930 of the BoG, fraud by false pretense, money laundering, and fraudulent breach of trust on about 39 counts.
According to the 2022 Auditor-General report, the Bank of Ghana paid Messrs Goldkey Properties Limited $35,909,067.50 for the development of a new corporate office in Tamale.
For the time period under consideration, the central bank paid additional payments to the contractors, according to a JoyNews story seen by GhanaWeb Business.
The report said the “total progress payments to contractors for the period under review were US$117,150,255.37 compared with US$32,246,487.75 for the corresponding period of 2021, representing an increase of US$84,903,767.62 or 263.3%.”
The Auditor-General’s report has highlighted that the increase in expenditure can be attributed to two significant projects: the construction of the Bank of Ghana corporate office in Tamale and the development of sports infrastructure for the hosting and organization of the 13th African Games in Accra.
According to the report, these projects accounted for 30.7% and 30.5%, respectively, of the total expenditure amounting to US$117,150,255.37.
In response, the Bank of Ghana (BoG) has clarified the necessity for a new corporate office building, stating that their current facility in Accra is no longer suitable for its intended purpose. A structural integrity assessment conducted by the central bank revealed that the existing head office, constructed in the early 1960s, lacks the structural capacity to withstand major earth tremors.
Despite these reasons, some individuals and groups, including the Minority caucus in parliament, have criticized the BoG’s decision to embark on this project. They argue that it is irresponsible for the central bank to pursue the construction of a new head office, especially considering the challenging economic landscape. The BoG’s financial reports indicate a total asset base of GH¢60.8 billion and a negative equity of GH¢55.1 billion, leading to concerns about the potential strain on the nation’s resources.
Critics emphasize that many Ghanaians are already facing economic hardships, and they call for immediate measures to alleviate this burden. However, the BoG remains steadfast in its decision, noting that the new headquarters is already 41% completed and is projected to be fully operational by September 2024.
As of September 11, 2023, the Bank of Ghana’s Interbank forex rates indicate that the Ghana Cedi is trading against the US Dollar with a buying price of 11.0461 and a selling price of 11.0571.
In Accra’s forex bureaus, the US Dollar is being purchased at a rate of 11.40 and sold at a rate of 11.65.
Against the Pound Sterling, the Cedi has a buying price of 13.7833 and a selling price of 13.7993.
In Accra’s forex bureaus, the Pound Sterling is being bought at a rate of 14.35 and sold at a rate of 14.85.
The Euro is traded at a buying price of 11.8332 and a selling price of 11.8449.
In Accra’s forex bureaus, the Euro is being purchased at a rate of 12.10 and sold at a rate of 12.60.
The South African Rand has a buying price of 0.5786 and a selling price of 0.5790.
In Accra’s forex bureaus, the South African Rand is being bought at a rate of 0.35 and sold at a rate of 0.95.
The Nigerian Naira is traded with a buying price of 69.7320 and a selling price of 69.7410.
In Accra’s forex bureaus, the Nigerian Naira is purchased at a rate of 11.00 Naira for every 1 Cedi and sold at a rate of 16.00.
As for the CFA, it has a buying price of 55.3789 and a selling price of 55.4336.
In Accra’s forex bureaus, the CFA is being bought at a rate of 16.50 CFA for every 1 Cedi and sold at a rate of 20.50 CFA for every 1 Cedi.
Please take note that these rates could vary at a currency bureau close to you. Afriswap Bureau De Change in Osu, Accra, provides our exchange rates.
Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.
The Greater Accra Police Command has extended an invitation to the Minority in Parliament for a meeting scheduled for Tuesday, September 5, 2023.
The meeting aims to discuss the upcoming #OccupyBoG demonstration, which is intended to protest against the Governor of the Bank of Ghana, Dr. Ernest Addison, and his deputies.
This is the second time the Minority and the Police are meeting over the matter.
Originally planned for September 5, 2023, the Minority in Parliament has decided to reschedule their demonstration and picketing to September 12, 2023. This change in date is attributed to the recent court proceedings that took place on September 4, 2023.
The Police secured an injunction to halt the protest. They registered dissatisfaction with the intended route to be used by the Minority, arguing that it would affect public safety and order.
In a recent statement, Dr. Cassiel Ato Forson, the Minority Leader, explained in a statement that the court was unable to provide an immediate ruling due to the substantial preliminary legal objections raised by the lawyers representing the Minority in Parliament.
According to the Minority in a statement dated Monday, September 4, protestors would use its earlier proposed route.
The march will commence from the frontage of Parliament House – Osu Cemetery Traffic Light Ministry of Finance – High Court Complex – Kinbu – Makola – Rawlings Park – Opera Square – Bank of Ghana.
In response to this development, the Police, through a letter addressed to Dr. Cassiel Ato Forson, has requested a meeting on September 5, 2023, to discuss the logistical and operational details of the demonstration.
Member of Parliament representing North Tongu, Samuel Okudzeto Ablakwa, has released documents revealing an ongoing legal dispute concerning the land upon which the new Bank of Ghana (BoG) headquarters is currently under construction.
Ablakwa, who has been unveiling a series of revelations regarding the BoG building project, asserts that the land was initially appraised at approximately GH¢91 million. At one point, the BoG reportedly offered the landowners GH¢100 million for the parcel.
However, the central bank eventually withdrew its interest in the land. Subsequently, in 2020, the government invoked a compulsory acquisition provision through an Executive Instrument (E.I) in lieu of compensation for the land, which, as Ablakwa discloses, has not been paid. According to experts, the total amount, along with accrued interests, has now reached 400 million cedis.
Originally, the land was owned by the State Insurance Company (SIC). It became entangled in legal proceedings after ITALCONSTRUCT INTERNATIONAL LIMITED obtained guarantees from SIC for a loan from IVORY FINANCE COMPANY, which subsequently defaulted. The loan agreement was established in 2013, with the consent judgment delivered in 2014.
Ablakwa reveals that in August 2019, the Bank of Ghana, despite being aware of the ongoing litigation and the consent judgment, approached the managements of both SIC and IVORY FINANCE. The BoG reportedly offered GH¢100 million to both entities to acquire the land for their new headquarters project.
“Interestingly, BoG did not pursue their offer and rather placed IVORY FINANCE under receivership,” following which the E.I. of October 2020 was issued, and even with that due compensation, according to his sources, had yet to be paid.
“Based on the Consent Judgement which has not been set aside, the interest and penalties which have accrued and factoring inflation — experts confirm that a combined compensation will not be less than a staggering GHS400million,” his post of September 5, 2023 read in part.
Click on link below for Ablakwa’s full post on Facebook:
The Member of Parliament for Bawku Central, Mahama Ayariga, has criticized the Inspector General of Police (IGP), Dr. George Akuffo Dampare, asserting that he has constitutional responsibilities to fulfill when citizens are required to protest, regardless of the situation.
Mr Ayariga emphasized that the IGP holds a position of authority and responsibility because citizens entrust him with the task of maintaining peace and order in the country, including ensuring the safety and security of the public during various events, including peaceful demonstrations.
He stressed that the IGP must do everything possible to facilitate citizens’ exercise of their freedom to protest, and he pointed out that the IGP is paid and provided with the necessary resources to function effectively, so he cannot refuse to work if those resources are available.
“The IGP is not there on his own. He should take off his uniform and check to see if he is the IGP. He has constitutional obligations to live up to expectations when citizens must demonstrate, no matter how difficult the task. Even if it is difficult, the IGP must assure the demonstrators’ safety, security, and protection,” Mahama Ayariga said.
His comments come at a time when the Minority in Parliament is having an impasse with the Police over the approved route for its demonstration to demand the removal of the BoG Governor, Dr Ernest Addison.
Mr Ayariga expressed his dissatisfaction with the performance of key government officials, particularly the IGP, and emphasized the importance of holding public servants accountable for their constitutional duties and responsibilities.
He noted that when citizens want to exercise their right to protest, it is the IGP’s responsibility to provide them with the necessary protection and security to ensure that the protests remain peaceful and that individuals or groups attempting to disrupt the peace are prevented from doing so.
He warned that the IGP could be the next public officer to be removed from office due to his behavior.
“We cannot offer you the resources, budget, recruit for you, or equip you with logistics such as vehicles, and you claim you are unable to accomplish your job. After the governor of the Bank of Ghana, we will demand the expulsion of the IGP,” he added.
On September 1, 2023, lawyers representing the Minority in Parliament submitted an affidavit at the High Court in Accra, contesting the police’s application to prohibit their planned picketing in front of the Bank of Ghana (BoG).
The Minority intended to march through key streets and the Bank of Ghana’s premises, demanding the resignation of the central bank’s Governor and his deputies, alleging mismanagement of the institution.
Following a meeting with the police, the Minority was advised to alter their planned routes, a suggestion they rejected. Consequently, the police filed an application seeking to halt the protest, prompting the Minority to respond with a counter-affidavit.
The court is scheduled to hear the application on Monday, September 4, 2023, while the protest is set for September 5.
In a statement, the Minority explained, “Lawyers for the Minority in Parliament yesterday filed with the registry of the High Court in Accra, an affidavit in opposition to the ill-advised and unfortunate application by the Accra Regional Police for an Order to prohibit our upcoming #OccupyBoGProtest march slated for Tuesday, 5th September 2023.”
They further stated, “The Minority in collaboration with Arise Ghana, other Civil Society Organisations, and well-meaning Ghanaians are resolved to embark on this historic protest march to demand the immediate resignation of the Governor of the Bank of Ghana and his two Deputies, for superintending a colossal loss of GHS66.8 billion in 2022 alone, which has occasioned a Negative Equity of GHS55.1 billion, as well as other acts of financial malfeasance that have completely destroyed the Central Bank.”
The Minority and allied progressive groups affirmed their commitment to their cause, vowing not to relent until the Governor, his deputies, and the Board of Directors resigned.
Their message was clear: “The Minority group and other progressive forces remain focused and will not relent until Misgovernor Addison, his complicit Deputies, and pliant Board of Directors resign. Aluta continua Victoria aserta!”
The current Bank of Ghana (BoG) administration is a crime scene, according to the Minority Caucus in Parliament.
Speaking at a public forum before their #OccupyBoG demonstration at the University of Professional Studies, Accra (UPSA), the Minority expressed dissatisfaction with the Central Bank’s extensive lending to the government over the past year.
Mahama Ayariga, Member of Parliament for Bawku Central, noted that despite fiscal challenges in 2016, which was also an election year, former President John Dramani Mahama did not need to borrow from the central bank.
However, the current management of the Central Bank, in their view, has engaged in financial malpractice, effectively transforming the Bank into a crime scene.
The planned protest, set for September 5, 2023, aims to voice the Minority’s dissatisfaction with the Governor of the BoG and his deputies, whom they accuse of mismanaging the apex bank. They are calling for their resignation.
Despite an injunction against the protest and police suggestions for alternative routes, the Minority Caucus has rejected these measures and remains committed to proceeding with their demonstration.
The Minority in Parliament has expressed their unwavering determination to embark on a protest to demand the removal of the Bank of Ghana (BoG) Governor, Dr Ernest Addison, and his two deputies despite an injunction granted by a High Court.
The Accra Regional Police Command of the Ghana Police Service successfully obtained an injunction to halt a planned demonstration for September 5, citing disagreements over the intended route for the protest.
The planned demonstration involved a march from Parliament House to the headquarters of the Central Bank, but the Police say the Central Bank’s headquarters is a designated security zone, hence cannot be among the locations. The Police also noted that the intended route poses potential risks to public order and safety and therefore called for a change in route.
While engagements between the Minority and the Police were ongoing over the matter, the latter proceeded to the High Court to receive an order that would halt the Minority from taking its planned route.
Reacting to the recent development, Deputy Minority Leader Emmanuel Armah-Kofi Buah emphasized the National Democratic Congress (NDC) MPs disappointment with the Police.
He, however, assured that the protest will take place as scheduled by hook or crook.
“We received a letter on Wednesday from the Ghana Police Service accompanied by a bailiff from the Accra High Court who served a notice or motion for an order to prohibit our Bank of Ghana protest, and we must say that we are very disappointed with this development which is an attempt to scatter the protest which is intended to hold the governor and his deputies accountable for their mismanagement of the bank which resulted in an unprecedented and colossal loss of GH¢60.8 billion, an amount which has had serious consequences on the economy and pushed close to one million Ghanaians into poverty.”
“And let us assure the people of Ghana that, as representatives, we will keep our sacred duty and we will uphold the public interest in line with our constitutionally guaranteed right to publicly protest, and we want to assure the people of Ghana that we have resolved to embark on this protest and nothing will stop us.”
Meanwhile, the High Court has scheduled a hearing on this matter for Monday, September 4, 2023.
Reason for BoG demo
The Minority has expressed dissatisfaction over the unauthorized printing of over GH¢80 billion by the central bank for the Akufo-Addo government.
According to the Minority, the Central Bank by so doing, has pushed some 850,000 Ghanaians into poverty.
On the matter, the BoG Governor, Dr Ernest Addison has explained that the central bank did not provide funding for the government until 2020 and 2022, during the COVID-19 Pandemic and after investors in the capital market declined to lend to the government.
According to him at a press conference on Monday, August 21, the central bank strictly adhered to the zero financing of government expenditure until the economic difficulties set in last year.
Dr Addison said the financing of government policies last year was undertaken with prior consultation with the International Monetary Fund (IMF).
IMF Resident Representative in Ghana, Dr. Leandro Medina, has stated that the involvement of the Bank of Ghana in the government’s Domestic Debt Exchange Programme (DDEP) has played a role in reducing its net equity to a negative figure.
He explained that the Central Bank’s participation in this debt exchange is part of an initiative to distribute some of the responsibilities that the DDEP places on government debt holders, including banks, financial institutions, pension funds, and individuals.
During an interview with the B&FT newspaper, Dr. Medina pointed out that an analysis conducted by the Fund revealed that “this situation does not hinder the BoG from effectively executing its policy mandates, including the vital task of guiding inflation back to its 8-percent target in a gradual manner”.
“Fundamentally, the BoG’s net equity is expected to improve over time, ultimately resulting in a return to positive territory,” the IMF resident representative for Ghana added.
In the meantime, the Central Bank has periodically clarified that it was compelled to absorb the larger portion of the reductions linked to the government’s debt exchange initiative introduced in December 2022.
The Bank specified that it bore nearly 50 percent of the adjustments, resulting in a substantial segment of the GH¢60 billion impairment loss documented in the 2022 fiscal year.
Nonetheless, the Central Bank has assured that its financial standing will remain unaffected during the subsequent phase of the DDEP, which aims at addressing US dollar-denominated bonds, pension funds, and cocoa bills.
The police have stated that the Minority in Parliament’s planned protest and picketing around the Bank of Ghana (BoG) headquarters could potentially pose risks to public order, safety, and essential services.
In response to the opposition MPs’ intention to stage a demonstration demanding the resignation of BoG Governor, Ernest Addison and his deputies over allegations of fiscal mismanagement, the police have suggested an alteration in the protest route.
The Accra regional police commander, Sayibu Pabi Gariba, stated in a notice to the organizers that, “The Bank of Ghana is a security installation, and accordingly the protest and picketing around the installation may endanger public order, public safety, and the running of essential services.”
The police expressed concerns about the chosen route, pointing out that the area from Makola through Rawlings Park and Opera Square is typically congested with human and vehicular traffic.
“The Bank of Ghana is a security installation, and accordingly the protest and picketing around the installation may endanger public order, public safety and the running of essential services,” Sayibu Pabi Gariba, the Accra regional police commander, said in a notice to the organisers.
“That the route from Makola through Rawlings Park and Opera Square are always overcrowded and over populated due to human and vehicular traffic,” the notice continued. “Thus, considering the nature of activities during the day, security can easily be compromised. In that regard, using such route may lead to violence.”
“As requested today during our engagement, the command wishes to reiterate that you relocate the route and the destination for the picketing and therefore propose in the interest of public order, public safety among others that you commence the protest from the frontage of Parliament House through Osu Cemetery Traffic Light and terminate at the Independence Square,” Gariba said.
This congestion could potentially compromise security and lead to violence, according to the police notice.
As a safer alternative, the police recommended that the protest route be changed to begin from the frontage of Parliament House, proceed through Osu Cemetery Traffic Light, and culminate at Independence Square.
The opposition National Democratic Congress (NDC) has issued a 21-day ultimatum for the governor and his deputies to step down, accusing them of mismanaging the economy. If the governor does not comply by September 5, the Minority MPs have pledged to picket at the central bank’s headquarters.
This call for action has garnered support from various quarters, including the pressure group AriseGhana. Comrade Rex Omar, the convener of AriseGhana, highlighted concerns over the alleged mismanagement of funds by the Bank of Ghana in their 2022 Report and financial statements. He specifically criticized the unauthorized printing of money to finance government activities, emphasizing the need for accountability and condemning such actions.
It remains to be seen how the situation will unfold, given the opposition’s determination to demonstrate and the police’s insistence on altering the protest route due to security concerns.
The governor of the Bank of Ghana (BoG), Dr Ernest Addison, has defended the construction of a new head office building at a cost of $250 million, saying that it is not just a simple ordinary building, but a modern and secure facility that meets the requirements of a central bank of international standards.
He said that the building, which is being modelled on similar central bank head office buildings in Abuja and Dakar, would include state-of-the-art facilities such as data centres, currency processes, vaults, and other sensitive installations.
The project has attracted criticism from some sections of the public and the minority in parliament, who have questioned the rationale and the cost of the building amid economic hardship and alleged procurement breaches.
Dr Addison, however, said that the bank followed all the necessary public procurement processes in undertaking the project and did not break any procurement laws.
He also gave a brief history of how the project evolved over the years, saying that the bank had been searching for suitable and secured land for a new head office since the 1990s, but faced several challenges in acquiring vacant possession of various lands allocated to it by the Lands Commission.
He said that it was only in 2018 that the bank was able to acquire a 5.19-acre land at Ridge near the Ridge Hospital from SIC, with the help of an executive instrument issued by the government. He said that SIC was duly compensated for the land.
Dr Addison explained that the decision to commence construction was taken in 2019 when the bank generated profits. He said that appropriations for the head office were made each year from profits in 2019, 2020, and 2021.
He submitted that the project which has been going on for over three years and is about 50 per cent complete and that he was fully aware of the need to ensure that the costs do not escalate beyond reasonable levels and that many of the original design features have been deferred, and only grey boxes provided for future use to manage costs.
He made these statements at a special press briefing on August 21, 2023, where he also addressed other issues relating to the bank’s 2022 financial statement and its role in supporting the government during the Covid-19 pandemic and the Russia-Ukraine war.
He said that he hoped that his statement would help to put the project into perspective and to clarify key issues that had arisen.
The Bank of Ghana has asserted that its construction of a new headquarters building at Ridge received full endorsement and approval from the Public Procurement Authority (PPA).
Director of Research at the Bank, Dr. Philip Abradu-Otoo, clarified that all essential processes and documentation were greenlit by the Authority before the initiation of the ongoing construction project.
In an interview with JoyFM, a radio station based in Accra, Dr. Abradu-Otoo emphasized that the Bank has adhered to all required protocols and obtained the necessary authorizations from the Authority prior to proceeding with the construction.
This statement comes as a response to concerns raised by Samuel Okudzeto Ablakwa, the Member of Parliament for North Tongu, who had suggested that the Bank might have violated public procurement laws. The Bank’s Director of Research aims to dispel any notion of wrongdoing by confirming the legitimacy of the approvals obtained from the Public Procurement Authority.
“The BoG has not broken any public procurement laws as the necessary public procurement approvals were obtained at every stage of the project. This project even started before the COVID-19 pandemic began and the necessary appropriation had been made over the past year when the Central Bank recorded significant profit”.
“The quest for a new head office started as far back in 2012 or even earlier if my memory serves me correct and the full details of the components of this special Central Bank headquarters, which is line with international standards, will be made available to the public at the appropriate time,” Dr Abradu-Otoo added.
He stressed that the Bank of Ghana (BoG) upholds transparency and lawful practices, affirming that no breaches of procurement laws have taken place. The institution remains committed to operating within the legal framework of the country.
Regarding the value-for-money aspect of the Restricted Tendering Procurement process, Dr. Abradu-Otoo noted that the decision was justifiable as it underwent evaluation and received approval from the Public Procurement Authority (PPA).
In the meantime, the Minority in Parliament has issued a 7-day ultimatum to the Central Bank, urging them to furnish the required particulars and rationale for the construction of their new headquarters.
Conversely, a structural integrity assessment conducted by the BoG has established that the current headquarters lacks the resilience to withstand significant shocks, such as earthquakes or earth tremors.
In response, the BoG issued a statement arguing that the existing building, constructed during the 1950s era, is presently inadequate for its intended purpose.
The Bank of Ghana (BoG) has rejected claims of breaching procurement laws in the development of its new headquarters in Ridge, Greater Accra.
BoG asserts that it acquired all necessary approvals from the Public Procurement Authority (PPA) prior to initiating construction.
Dr. Philip Abradu-Otoo, BoG’s Head of Research, revealed this information while speaking to the media on August 17, 2023.
He assured that the central bank will promptly provide comprehensive details and documentation related to the headquarters’ construction.
“All requisite approvals were secured from the PPA; we adhered to all procurement regulations,” Dr. Abradu-Otoo emphasized.
Context:
The response from BoG comes in response to allegations by Samuel Okudzato Abalkwa, the Member of Parliament for North Tongu. Abalkwa suggested that the building’s cost had been inflated from US$81 million to $250 million.
He also disputed claims that the project’s initiation occurred during the previous National Democratic Congress government and raised concerns about governance breaches.
Addressing these concerns, Dr. Abradu-Otoo emphasized that the PPA meticulously evaluated all pertinent documentation related to the construction process. He stressed the bank’s commitment to transparency and compliance with the country’s laws.
Furthermore, Dr. Abradu-Otoo defended the decision to use the Restricted Tendering Procurement Method, noting its justification and approval by the PPA.
He reiterated that detailed information about the entire process would soon be disclosed to dispel any uncertainties in the public domain.
Bank of Ghana on Headquarters Justification:
The Bank of Ghana had previously clarified that an assessment of its current headquarters’ structural integrity in the Central Business District of Accra indicated its inadequacy for its intended purpose. The building, constructed in 1960, was found unsuitable for major seismic events.
The bank’s statement emphasized, “The structural integrity assessment revealed that the main building lacks the necessary strength required for safe usage.”
BoG also highlighted that constructing a new headquarters was a top priority to enhance operational efficiency, positioning it as a potential host for the Regional Central Bank. This position was substantiated by the bank’s hosting of the West African Monetary Institute (WAMI) for the sub-region.
The Bank of Ghana (BoG) has been accused of engaging in shady and wasteful practices in the construction of its new Corporate Head Office, which is estimated to cost over US$250 million.
According to Samuel Okudzeto Ablakwa, Member of Parliament for North Tongu, he has obtained information from ‘patriotic’ insiders at the BoG and other credible sources that reveal how the project cost has escalated from an initial US$81.8 million to US$121 million within eight months, and is likely to exceed US$250 million due to variation reports.
“Patriotic Bank of Ghana insiders working with me on this latest oversight project have expressed grave concern about how this BoG office complex which started at US$81.8million, surprisingly shot up to US$121million, and now variation reports are being prepared which are likely to exceed an incredible US$250million,” he wrote.
In a Facebook post on August 17, 2023, Ablakwa said he decided to activate his constitutionally mandated parliamentary oversight role to unravel the mystery behind the project, which he described as extravagant and wasteful.
He said the BoG had violated the Public Procurement Act by using the Restricted Tendering Method to handpick five companies for the project, one of which was not even registered at the Office of the Registrar of Companies.
The BoG, according to him, procured the services of a company called MULTICAD to carry out project management through single-sourcing. An action, Mr Ablakawa describes as ‘another reckless and lawless conduct’.
“Deeper investigations into the shady BoG head office project led me to discover another reckless and lawless conduct by the Addison-led Central Bank when they procured the services of a company known as MULTICAD to carry out project management through single-sourcing,” he added.
He said the BoG had refused to be transparent, candid, and accountable to the good people of Ghana, and had failed to disclose the current cost of the project, the procurement method, the contract award date and the completion date.
He said he was shocked by an interview of Mr. Charles Elias Reindorf, the Director of Finance at the BoG, who abruptly ended an interview when asked about the cost of the project.
“A shocking and embarrassing interview of Mr. Charles Elias Reindorf, Director of Finance at the Central Bank where he abruptly ended an interview following a harmless question on the cost of the project has since gone viral. Instructively, the Bank of Ghana in all its public engagements has refused to disclose the current cost of the project, the procurement method, when the project was awarded and the scheduled completion date,” Mr Ablakwa noted.
He also dismissed the claims by some NPP propagandists that the project started under the NDC when Hon. Ato Forson served on the BoG Board between 2013 and 2017.
He said his intercepted documents showed that the procurement for the project did not commence under the NDC or during the presidency of John Mahama.
Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has launched a scathing attack on the Bank of Ghana (BoG) for allegedly engaging in a ‘shady and wasteful’ project to construct a new corporate head office.
In a statement posted on his Facebook page, the MP said he had intercepted documents from the BoG and other sources that exposed several procurement breaches, cost escalations and lack of transparency in the project.
He claimed that the BoG violated the Public Procurement Act, 2003 as amended in Act 914, by using the restricted tendering method to select five companies to participate in the tender, none of which were registered at the Office of the Registrar of Companies. He said one of the companies, Ronesans Holdings, was not even registered at the time of the tender.
He also claimed that the cost of the project increased astronomically from US$81.8 million to US$121 million within eight months, and was likely to exceed US$250 million. He said this was mind-boggling and unacceptable, especially during the peak of the COVID-19 pandemic when the BoG claimed to be struggling to finance the government.
He further claimed that the BoG single-sourced another company, MULTICAD, to carry out project management for US$3.45 million, without any compelling reason or justification. He said this was another breach of the procurement law and a sign of cronyism.
He called on all well-meaning Ghanaians to join him in protesting against the BoG project, which he described as extravagant and wasteful. He said Governor Addison and his colleagues at the BoG had been deliberately lawless and destructive, and should resign or be sacked.
He said he had activated his parliamentary oversight role to unravel the mystery behind the project and expose the truth to the public. He said he would not relent in his efforts to ensure accountability and value for money in public spending.
He attached copies of some of the documents he had intercepted from the BoG and PPA to support his claims. He also urged Ghanaians to share his statement widely and demand answers from the BoG.
The host of the “Good Morning Ghana” show on Metro TV has expressed strong criticism against the Bank of Ghana’s (BoG) decision to construct a new head office. The proposed facility, which the Parliamentary Minority estimates to cost US$250 million, has sparked significant public reactions following the BoG’s confirmation of the project.
In response to a statement by the minority, the BoG explained that the new office complex was primarily justified by security concerns and the unsuitability of the current location in the event of an earthquake.
Randy Abbey, the show’s host, voiced his concerns about the decision to build a new office, particularly focusing on the timing and the project’s cost. During a discussion with Fuseini Issah, a former New Patriotic Party (NPP) lawmaker, and John Jinapor, a Member of Parliament for Yapei Kusawgu, Abbey criticized the allocation of a quarter of a billion dollars to construct an office.
He noted, “I don’t have a problem with a new office… I have not heard anybody raise the issue of location, in fact, just a 100m from where they are building, is where you have the Ecobank building.” Abbey compared the BoG’s project cost of US$250 million with the US$60 million price tag for the Ecobank building, which was situated nearby.
Abbey questioned the rationale behind investing such a substantial amount, considering the country’s economic situation over the past few years. He also made a reference to the controversial national Cathedral project, suggesting a similarity in mindset between the two endeavors.
In response, the former lawmaker argued that the BoG had stated that the Central Business District’s activities had shifted to the high street, and the bank had been acquiring space in the area until 2020, when it secured the current site through an executive instrument.
NDC Member of Parliament for South Dayi,Rockson-Nelson Dafeamekpor, has voiced his disapproval of the former Rector of the Ghana Institute of Management and Public Administration (GIMPA), Prof Stephen Adei’s recent comments on the Minority in Parliament’s decision to picket at the Bank of Ghana premises.
The professor is on record to have said it is not simplistic to demand the resignation of a central bank governor and more so that the BoG premises was a security zone.
But in response, Mr Dafeamekpor said his comments lack basis.
“Prof Addae is crying that, BOG is a security zone. He has so soon forgotten that Occupyghana used to Occupy the Flagstaff House under JM. Isn’t the seat of Govt a security zone then? The hypocrites have found their voices suddenly,” his posted on Twitter on August 15.
He is not the first NDC MP to go after the academic and economist. Minority Chief Whip, Kwame Governs Agbodza also tweeted: “It is rather sad that people like Prof. Stephen Adei have constantly chosen to be part of the problems of our nation and not the solution. Time and again, Prof. Adei has demonstrated through his hypocritical and lopsided positions and commentary on critical national issues, that all he cares about is his political affiliation and loyalty to his friends in government.”
The Minority in Parliament has described as flimsy, an attempt by the Bank of Ghana (BoG) to explain questions they have raised about details in the central bank’s annual report for 2022.
Responding to a press statement by the Bank of Ghana dated August 9, 2023, the minority said BOG engaged in deliberate distortions while failing to justify the GHC60.8 billion loss and negative equity of GHC55.1 billion it recorded in 2022.
“In the said press statement, the Bank of Ghana attempts to shamelessly justify its recklessness and mismanagement which resulted in the huge losses of GHS60.8 billion and the negative equity of GHS55.1 billion it recorded in the year 2022.
“As a matter of fact, the Bank of Ghana’s unsigned press statement, is full of deliberate distortions and flimsy justifications which do not address the serious matters that were raised in our Moment of Truth presser last Tuesday,” the statement signed by the leader of the Minority, Cassiel Ato-Forson said.
The minority which earlier held a press conference accusing the Bank of Ghana and the Ministry of Finance of breaching laws guiding their operations said the central bank in its August 9 statement failed to address the core issues it raised earlier.
“The referenced Bank of Ghana’s statement does not address the most fundamental issue which has to do with the printing of money by BOG for the Akufo-Addo/Bawumia/NPP government in 2021 and 2022 in clear contravention of Section 30 of the Bank of Ghana (Amendment) Act, 2016 (ACT 918). Indeed, throughout the statement, BOG does not and could not have offered any reasonable justification for printing a whopping GHS35 billion in 2021 and GHS 42 billion in 2022 to finance the Akufo-Addo/Bawumia/NPP government, in clear breach of their governing law.
“It is an indisputable fact that the amount of monies printed by BOG for the reckless Akufo Addo/Bawumia government both in 2021 and 2022 far exceeds the legally acceptable threshold of 5% of the previous fiscal years’ total revenue,” the statement said.
While describing the action by the central bank and the ministry of finance as illegal, the minority raised further questions around the decision to write-off GHS 48 billion in debt owed by the government to BoG.
The minority also questioned the construction of a $250 million office complex by the central bank describing the basis as untenable.
Legal Team member of the National Democratic Congress (NDC), Godwin Edudzi Tameklo, has pointed out that the GHc60 billion loss incurred by the Bank of Ghana (BoG) could provide funding for participants of the National Builders Corp (NABCO) program for a span of sixty years.
As per the 2022 report released by the Bank of Ghana, the institution reported a significant loss of approximately GHc60 billion. The central bank attributed this substantial deficit to the impact of the Domestic Debt Exchange Programme.
However, making an appearance on Accra-based TV3, Edudzi Tamekloe who is also a private legal practitioner, pointed out the significant impact the lost GH¢60 billion could have had on various government initiatives.
He criticised the government’s inability to sustain the NABCO program due to a lack of funds, despite the reported GH¢60 billion allocation from the central bank.
“Bank of Ghana is telling us that they have declared over GH¢60 billion. Now, that GH¢60 billion loss is enough to pay for NABCO beneficiaries for 60 years. You will be paying for them every year for 60 years.
“The reason the government of Ghana was not able to sustain the NABCO program is because of the lack of funds and we are being told the GH¢60 billion was given to the government of Ghana and more. And with all that amount of money, we are not able to sustain NABCO,” he said.
Edudzi Tamekloe further questioned the transparency and accountability in the management of such a substantial amount of money, particularly when it could have been channeled to support vital government programs like NABCO.
“As we speak, the government of Ghana is indebted to NABCO trainees. So where did the GH¢60 billion go, where is the money?” he questioned.
The corridors of Ghana’s financial landscape are resonating with fervent calls for a change in leadership as demands for the resignation of the Bank of Ghana (BOG) Governor intensify.
This follows a recent revelation by the Institution that it recorded a loss of GHC 60 billion in 2022.
Citizens are baffled by this revelation with many claiming that it is unjustified. The wave of dissent, fueled by concerns over economic stability and policy decisions, has sparked a national conversation about the direction of the country’s financial future.
In recent weeks, the BOG Governor’s leadership has come under scrutiny, with stakeholders from various sectors expressing reservations about the handling of economic challenges. From inflation concerns to currency fluctuations, critics have cited these issues as indicators of a lack of effective policy strategies.
Staunch politicians including NDC’s Sammy Gyamfi, Kofi Adams, Cassiel Ato Forson, etc. have all joined the calls for the Governor and his deputies to resign.
Tweeps are the latest to join the calls with the #Addisonmustresign topping the trends on Monday, August 14, 2023.
I've seen @thebankofghana attempting to justify their actions! This further strengthens our stance that Dr. Addison and his deputies (the Printers) should be held responsible for the mishandling of the central bank and their blatant disregard for our laws! #AddisonMustGopic.twitter.com/TxvsurHTKs
The Majority Leader, Osei Kyei-Mensah-Bonsu, has criticized the Minority Leader, Dr. Cassiel Ato Forson, over his demand for the resignation of the governor of the Bank of Ghana (BoG) and his deputies amidst allegations of financial mismanagement.
The Minority in Parliament is calling for the resignation of Dr. Ernest Addison and his deputies, leveling serious allegations of significant financial mismanagement within the Bank of Ghana.
The Minority asserts that Dr. Addison should step down from his position for overseeing the GHC60 billion loss that the Central Bank incurred in the year-ending 2022.
Among other claims, the Minority also contends that the Bank of Ghana failed to provide reports of its activities to Parliament.
In response to the Minority’s demand, Suame MP Osei Kyei-Mensah-Bonsu questioned the validity of the allegations and highlighted the political undertones of the dispute. He stressed that the issue should not be reduced to a partisan contest between the NPP and NDC, emphasizing the importance of a balanced and well-informed discussion.
He clarified that the Bank of Ghana is not legally obliged to report its daily activities to Parliament, contrary to Dr. Ato Forson’s claims. Kyei-Mensah-Bonsu pointed out that the law only mandates the Bank to report foreign exchange receipts to Parliament, a responsibility the Bank has consistently fulfilled.
“We should not make everything about NPP and NDC. Ato Forson should have known better because he has held the position of deputy minister of finance before and knows the operations of the Bank of Ghana. So, if you politicize issues of the BoG, it is not good for the country,” Osei Kyei-Mensah-Bonsu stated on Oman FM.
He further stated, “There is no law that mandates the BoG to report its daily activities to Parliament. The law only mandates the BoG to report foreign exchange receipts to Parliament, and the BoG has always complied with this provision. The BoG does not report directly to Parliament. The constitution says that if you pass any law that is inconsistent with the constitution, that law is null and void. It’s either the Minority are over exaggerating issues or have not had time to examine the facts of the matter.”
Minority Leader, Dr. Cassiel Ato Forson, has urged President Akufo-Addo to deliver a national address outlining the government’s strategies to revive the Bank of Ghana (BoG), which he characterized as facing an unprecedented collapse.
In a Facebook post, Forson emphasized the need for decisive actions to restore solvency to the central bank.
“Given the unprecedented collapse of our central bank, it is imperative for the President of Ghana to urgently address the nation. During this address, the President should outline the decisive actions that the government plans to implement in order to restore solvency to the Bank of Ghana,” Mr Forson said in a Facebook post on Monday.
Forson highlighted that when a regulated institution’s financials or liquidity position is compromised, the BoG typically enforces directives, including withholding dividend payments even in profitable situations.
“Granting of new loans will be put on hold; Appointment of new directors will be restricted; Capital expenditure will be temporarily suspended and staff recruitment will be paused, and other similar measures will be taken,” he added.
Other measures, such as suspending new loans, restricting director appointments, pausing capital expenditure, and halting staff recruitment, are also implemented.
Additionally, Forson dismissed claims by Richard Ahiagbah, Director of Communications for the New Patriotic Party (NPP), that Forson was a member of the BoG Board during the initiation of processes for the bank’s new head office construction.
Forson refuted these assertions in a press release, characterizing them as a “desperate attempt” by the NPP to defend their actions.
Forson clarified that during the Mahama/NDC administration, the Bank of Ghana never entered into a contract for the new head office’s construction nor purchased land in Accra for the building.
He criticized the decision to construct the new head office given the bank’s substantial loss and negative equity, deeming it a reckless and misguided priority.
Forson concluded by asserting that no attempt at equalization can absolve the current government and Governor Addison’s management from the historical collapse and mismanagement of the Bank of Ghana.
He maintained that the countdown to the resignation of the Governor and his deputies is ongoing.
“For the record, I was not part of the processes for the construction of this new Head Office building, and the Bank of Ghana Board never began such processes for the construction of this new Head Office building at Ridge. We maintain that the decision by the current Bank of Ghana Management and Board to construct an ultra-modern Head Office building at a time when the Bank of Ghana has recorded a loss of GhS60.8 billion and a negative equity of GHS55.1 billion; at a time when the ordinary Ghanaian is struggling to make ends meet, is a reckless and misplaced priority.”
“No attempt at equalisation can redeem the historical collapse and mismanagement of the Bank of Ghana by this Akufo-Addo/Bawumia NPP government, alongside Governor Addison and his management. The countdown to the resignation of the Governor and his deputies is still on,” Dr. Forson added.
The National Democratic Congress (NDC) has challenged the Bank of Ghana’s (BoG) rationale for constructing a new headquarters, especially in the wake of a substantial loss in 2022.
The opposition party views the Central Bank’s explanation for this decision as “absurd, to say the least.” The Bank of Ghana defended its choice, stating that its existing headquarters lacked structural integrity following a thorough assessment.
According to the Central Bank, “The structural integrity assessment revealed that the main building does not meet the required level of strength necessary for safe usage. This deficiency means that the building may suffer significant damage in an extreme scenario such as unusually strong winds or a major earthquake, which is expected in the Accra region. Considering our strategic goal of positioning Ghana as the financial hub of the sub-region, with the potential of hosting a future regional Central Bank.”
Nonetheless, the NDC’s Members of Parliament, led by Dr. Cassiel Ato Forson, have expressed skepticism. They noted that previous governors, even during periods of consistent profits, did not deem a new headquarters necessary. Instead, they opted to relocate certain bank operations to the Cedi House and Spintex Road facilities.
The NDC MPs posed a fundamental question: “If, during the NDC/Mahama government’s successive years of profit (2012-2016), the Bank of Ghana did not find it urgent to construct a new office complex but rather invested in building a hospital to support the nation’s healthcare needs, how can the Bank of Ghana justify prioritizing a new $250 million office complex when it has incurred an unprecedented loss of GHS 60.8 billion and a negative equity of GHS 55.1 billion?”
The NDC’s statement compared the cost of the new headquarters unfavorably to other prominent structures, such as the ultramodern Ecobank Head Office building and the Kempinski hotel in Accra.
They pointed out that the cost of the new Bank of Ghana headquarters could instead be used to build thousands of new classrooms and healthcare facilities.
The NDC described the Central Bank’s decision as extravagant, highlighting that the substantial cost could have been directed towards more pressing matters, especially when considering the need for immediate recapitalization.
In essence, the NDC is raising concerns about the Bank of Ghana’s decision to prioritize a new headquarters amidst financial challenges and a significant loss, questioning the justification for such an expenditure.
The GH60 billion impairment loss reported by the Bank of Ghana in the 2022 fiscal year has been supported by the International Monetary Fund (IMF).
There is no need for concern, the Bretton Woods institution stated in a post regarding Ghana that was retrieved from its website on August 10, 2023.
It upheld the claim that the Bank of Ghana experienced losses as a result of its involvement in the government’s Domestic Debt Exchange Programme (DDEP), which is a part of initiatives to address the sustainability of debt and restore macroeconomic stability.
However, the IMF urged the Bank of Ghana to uphold its policy directives and take strict action to bring inflation under control and back to its predetermined objective of 8%.
Below is what the IMF said about BoG’s impairment loss in 2022
Why did theBank of Ghana 36+ (BoG) incur losses from the authorities’ domestic debt exchange and what are their implications?
The Ghanaian authorities’ domestic debt exchange (DDE) is a key element of their plan to restore macroeconomic stability and public debt sustainability. The BoG is participating in the DDE to share some of the burden the DDE places on government debt holders, along with banks, other financial institutions, pension funds and individuals.
The loss the BoG incurred in the process has contributed to reducing its net equity to a negative value. Importantly, however, this does not prevent the BoG from fulfilling its policy mandates and ensuring inflation gradually returns toward its 8-percent target. Indeed, central bank income is expected to be sufficient to cover monetary policy operational costs. The BoG’s net equity is expected to improve significantly over time and eventually return to positive territory.
President of IMANI Africa, Bright Simons, has alleged that each independent director serving on the Bank of Ghana’s board receives a monthly payment of US$8,000, equivalent to GH89852.36 Ghanaian Cedi.
As stipulated in the Bank’s 2022 annual report, the board consists of thirteen directors, including the governor, his two deputies, and ten other directors.
The IMANI president continued that, comparatively, this compensation money is higher than that of other countries like Nigeria and Kenya, Mr Simons said in a Twitter post on August 9, 2023.
Simons made this statement amid the controversy and discussions surrounding the Bank’s leadership and the distressing loss it has caused the state.
“The Bank of Ghana has 10 independent Directors. It seems some people, especially in the Political Opposition, are not happy that they are paid $8,000 a month (86,000 GHS).
Given the calibre of people needed to helm a central bank board, what would folks be comfortable with?” he quizzed.
“One approach might be to compare the case in other similar economies. In Kenya, there are 6 independent directors, with each earning ~260,000 KES a month ($2,000). In Nigeria, there are 7, each earning 2.3 million Naira ($3,000). But there are private boards paying way more,” he added in another tweet.
The ten independent directors are as follows: Dr. Samuel Nii-Noi Ashong – Non-Executive Director Mr. Joseph B. Alhassan – Non-Executive Director Dr. Kwame Owusu-Nyantekyi – Non-Executive Director Mr. Andrew Boye-Doe – Non-Executive Director Mrs. Comfort F. Ocran – Non-Executive Director Mr. Jude Kofi Bucknor – Non-Executive Director Dr. Regina Ohene-Darko Adutwum – Non-Executive Director Mr. Charles Adu Boahen – Non-Executive Director (Till November 24, 2022) Ms. Angela Kyerematen Jimoh – Non-Executive Director Prof. Eric Osei-Assibey – Non-Executive Director
The Annual Report and Financial Statement of the Bank of Ghana reveal that the institution incurred a loss of GH60.8 billion from its audited financial statement for the 2022 fiscal year.
BoG’s loss comes after it saw a GHS GHS¢1.2 billion profit in 2021.
But BoG leadership attributes this loss to the decline in the Group’s net worth position due to the impact of the Domestic Debt Exchange Programme (DDEP) and the impairment of some assets.
Meanwhile, the parliamentary Minority has issued a 21-day ultimatum to the bank’s leadership to step down due to this loss.
The Bank of Ghana(BoG) has clarified that the government’s domestic debt restructuring exercise was the main cause of its GH¢60 billion losses in 2022.
The BoG said it had to take a 50 per cent haircut on its holdings of government debt instruments, which amounted to GH¢53.1 billion, to help the country meet the debt sustainability criteria for an International Monetary Fund (IMF) programme.
According to a statement issued by the BoG yesterday, the domestic debt exchange (DDE) was part of the economic reform programme that Ghana agreed to implement with the IMF in December 2022.
The DDE involved swapping existing domestic bonds for new ones with lower interest rates and longer maturities. The aim was to reduce the stock of government debt from 105 per cent of Gross Domestic Product (GDP) to 55 per cent of GDP by 2028.
However, the statement said that the DDE did not achieve the desired target, as some bondholders, especially households and banks, suffered significant losses.
The BoG had to step in and absorb the remaining gap by exchanging its non-marketable government debt instruments for new bonds at half their value. This resulted in huge impairment losses of GH¢32.3 billion for the central bank.
The BoG also incurred impairment losses of GH¢16.1 billion on its marketable government debt instruments, bringing the total impairments to GH¢48.4 billion.
The statement explained that the BoG’s intervention was necessary to prevent a major economic and social crisis in Ghana, which had faced severe fiscal and debt challenges since 2019.
The COVID-19 pandemic, coupled with global price and supply-chain shocks from the war in Ukraine, had worsened Ghana’s situation, leading to high inflation, exchange rate depreciation, loss of external market access, and pressure on foreign exchange reserves.
The BoG said it had to provide liquidity support to the government and the economy during this period, which also increased its interest expenses and currency issue expenses.
Additionally, the BoG recorded losses of GH¢5.2 billion from price and exchange rate movements and GH¢4.7 billion from impairments of COCOBOD loans.
The statement assured stakeholders and the public that the BoG was committed to prudent management, governance, and transparent accounting and audit practices.
Bank of Ghana released its full-year 2022 audited financial statements on July 28, 2023. The financial statements reported a total loss of GHS 60 billion, which has since become a matter of unfortunate politicisation.
It is noteworthy that GHS 53.1 billion of those losses were a direct result of the Government’s domestic debt restructuring exercise (phases 1 and II).
It is important to put the Bank of Ghana’s 2022 financial results in proper context with a clear statement of the problem that Ghana faced and the chronology of events in Ghana since 2019.
There was a clear mismatch between revenue inflows and expenditure financed in 2020 by exceptional support from the IMF and World Bank resources, in addition to financing from the Bank of Ghana through the issuance of the GHS10 billion COVID-19 bond.
As a result, sovereign spreads on Ghana bonds widened, signalling investor dissatisfaction with the stance of fiscal policy.
The Budget for 2022, which was read in 2021, failed to address fiscal concerns as it was even more expansionary by about 23% with a raft of revenue measures to raise financing.
As a result, the Credit Rating Agencies further downgraded Ghana’s sovereign debt rating, which blocked Ghana’s access to international capital market borrowing. This triggered a liquidity crisis, spilling over into a balance of payments crisis.
External and domestic payments needed to be made, the domestic auction was failing, and the Bank of Ghana had to step in to arrest a major economic and social crisis. In 2 months, the Bank of Ghana lost US$500 million in reserves and built significant overdraft with the government as a result of the auction failures.
It became clear that Ghana was on a path that was unsustainable, and the Government had to approach the IMF for support in July 2022. The IMF process included putting into place a credible programme of reform, which included restructuring of the total government debt to sustainable levels.
Until Staff Level Agreement with the IMF was reached in December 2022, the Bank of Ghana had to continue to provide the necessary support to keep the economy running.
In line with the provisions of the Bank of Ghana Act, (Act 612), as amended, the Bank informed the Minister of the developments in its finances. The Minister reported this to Parliament as part of his briefing to Parliament on the IMF programme and the Domestic Debt Exchange.
A major plank of the corrective action required for the IMF programme was the Domestic Debt Exchange, where the stock ofGovernment of Ghana debt was to be halved from 105% of GDP to 55% of GDP by 2028. The holders of Government debt had their debt instruments exchanged for new ones with lower interest payments and longer terms.
Despite the losses inflicted on households and banks, the threshold of 55% of GDP was not met. The Bank of Ghana was used to close the gap to enable Ghana to meet the debt threshold that qualified Ghana for the IMF programme (Bank of Ghana therefore, acted as a loss absorber). This means the Bank of Ghana had to absorb a 50% haircut on its non- marketable holdings of Government debt instruments.
This singular act led to significant impairment losses of GHS 32.3 billion to the Bank’s accounts. Impairments of marketable instruments also accounted for another GHS16.1 billion, bringing the total impairments of Government holdings to GHS48.4 billion.
As experienced by central banks globally, price and exchange rate movements led to a loss of GHS5.2 billion, while impairments of Cocobod loans amounted to GHS4.7 billion. This is the reason the Bank of Ghana reported a loss of GHS 60 billion in 2022.
Central banks are not commercial banks. This financial outcome has very little implication for the operations of the Bank of Ghana, as supported by evidence from other central banks. Technically, Central Banks cannot be insolvent or bankrupt.
Bank of Ghana assures key stakeholders and the general public that we are committed to the highest standards of prudent management, governance, and transparent accounting and audit practices.
The Finance Ministry has issued a caution against unwarranted criticism directed at the Bank of Ghana (BoG).
John Kumah, Deputy Minister of Finance, has expressed that the dissemination of propaganda and unjustified attacks on the central bank can result in escalated market volatility, hastened asset sell-offs, and potentially trigger a series of events that may impact our overall economic stability.
These statements have arisen in response to the National Democratic Congress (NDC) Members of Parliament who have declared their intention to stage a protest at the BoG’s premises if Governor Dr. Ernest Addison does not step down.
The NDC MPs have set a 21-day ultimatum for Governor Addison, commencing from Tuesday, August 8, demanding his resignation due to the challenges currently faced by the central bank.
Addressing a press conference in Accra on Tuesday, August 8, the Minority Leader Dr Cassie Ato Fortson said “we call for the resignation of the Governor of the Central Bank and his deputies within 21 days from today. We are resolved to embark on popular action to occupy the Central Bank and drive out the team of inept, callous and criminal mismanagers of the finances of this country and Save the Bank of Ghana. The March to Ensure Accountability will begin in 21 days if the Governor of the Bank of Ghana does not do the needful and pack bag and baggage out of that sacred institution that he has so desecrated. Dr Ernest Addisson Must Go! There has to be an end to impunity and it is now!”
Dr Forson further stated that the more troubling fact is that, having brought the Bank of Ghana to this terrible financial state, “the Governor and his deputies, have found it prudent and expedient to invest $250 million (GHC2.8 billion) on another Head Office building somewhere at Ridge. In our circumstances, this is the height of insensitivity in the management of the finances of a troubled country.”
“The BOG’s illegal printing of money is responsible for the depletion of Ghana’s external reserves which resulted in the unprecedented depreciation of the Cedi, the main cause of hyperinflation in 2022. It is important to state that the Governor breached section 30 (7) of the Bank of Ghana Act, 2012 (Act 612 ) and Section 60 of the Bank of Ghana Amendment Act, 2016 (Act 918).
“An estimated 850,000 people were further reported to have been pushed down the poverty line as a result of the hyperinflation in 2022.”
But in a statement reacting to the Minority, John Kuamh who is also a lawmaker for Ejisu said in a statement that “Ignore this funny NDC Propaganda about the collapse of the Bank of Ghana (BoG). BoG is Solid ! The NDC is funny! It’s not true that a recapitalization levy is to be introduced for BoG , the Central Bank hasn’t collapsed.
“The main source of income to the Bank is from government transactions i.e. fees and charges on all government transfers, the bank’s investments in marketable instruments and also earnings from non-marketable holdings of the Bank. Given that government transactions have gone down, naturally, the income of the bank will go down. Also, because of the debt restructuring, earnings on their holdings on markable and non-marketable bonds will go down.
“Beyond this, the Bank is solid and is capable of performing its core function. Article 183 clause 2 (c) of the 1992 constitution enjoins the Bank of Ghana to promote and encourage economic development in the country , hence there is nothing untoward in the actions of the Central Bank to support the state in its economic recovery efforts. It is important to further highlight that a negative balance sheet by a Central Bank is not unusual, in fact, most Central Banks around the world run negative balances to achieve the overall economic anchor objectives of a Central Bank. ‘History clearly illustrates this. Several central banks had negative equity yet fully met their objectives – for example, the central banks of Chile, Czechia, Israel and Mexico experienced years of negative capital. But throughout, financial and price stability were maintained.’ – Bank For International Settlements Bulletin No.68.
“According to Nordstrom and Vredin (2022), a central bank’s credibility depends on its ability to achieve its mandates. Losses do not jeopardise that ability and are sometimes the price to pay for achieving its aims.
“Such propaganda and unnecessary attacks at the central bank only result in increased market volatility, panic selling of assets, and can trigger a chain of events that can affect our overall economic stability.”
In 2022, the Bank of Ghana utilized an amount of GH¢325 million for the printing of currency notes. Comparatively, as indicated in the Bank of Ghana’s Annual Report and Financial Statements for 2022, GH¢174 million was allocated for this purpose in the preceding year, 2021.
The Bank of Ghana encountered substantial losses in 2022, predominantly attributable to the Domestic Debt Exchange Programme (DDEP).
As outlined in the report, the central bank restructured its holdings of government debt, which encompassed non-marketable holdings of Government of Ghana instruments including long-term stocks, a Covid-19 Bond, and overdrafts that were subjected to a 50 percent reduction in value.
Furthermore, the Bank of Ghana’s other claims, comprising holdings of marketable instruments, underwent a similar exchange in terms as other financial institutions under the DDEP.
This culminated in an impairment of GH¢48.40 billion during 2022. Simultaneously, the Central Bank faced revaluation losses on its foreign assets and liabilities due to the depreciation of the exchange rate.
These combined factors resulted in a negative equity position of GH¢55.12 billion for the fiscal year 2022.
The report also highlighted that despite a favorable trade surplus, the balance of payments registered a deficit of US$3.64 billion, largely due to considerable net outflows in the capital and financial account.
Consequently, Gross International Reserves underwent a drawdown of US$3.46 billion, decreasing from US$9.70 billion at the conclusion of December 2021 to US$6.24 billion at the end of December 2022, thereby providing import cover for 2.7 months.
The substantial reduction in reserves gave rise to heightened currency pressures and led to a decline in the Common Equity Tier 1 capital ratio, from 6.5 percent to 5.5 percent. Additionally, there was an elevation in the maximum Tier 2 capital ratio, rising from 2.0 percent to 3.0 percent of total risk-weighted assets.
A Finance expert holding the position of Associate Professor at the University of Ghana Business School (UGBS) has raised concerns about the lack of transparency in the activities of the Bank of Ghana (BoG).
Professor Lord Mensah has personally voiced his reservations about the performance of the Governor of the central bank, Ernest Addison, suggesting that the institution may be misusing its operational independence.
In relation to the recently disclosed balance sheet of the BoG, which unveiled a substantial loss of GH¢60.8 billion in the year 2022, Professor Mensah expressed suspicion of potential irregularities within the Bank’s operations.
He criticized the perceived opacity in the Bank’s actions, remarking that the published balance sheet, along with the associated numbers, provides significant insight.
According to him, various aspects of these increments indicate an abuse of their operational autonomy.
Speaking to media , Professor Mensah highlighted that the Bank of Ghana’s autonomy in governance is compromised due to the presence of presidential representatives as board members. This, he argued, contradicts the concept of true operational autonomy.
“They [BoG) seem to be too opaque in their dealings. From where I sit, publishing your balance sheet and then looking at these numbers coming up, it tells you so many things.
“There are so many attributes to those increments…they’re abusing the operational autonomy that they have,” he said.
Addressing the causes behind the substantial losses, the finance expert outlined established procedures for the central bank’s intervention during economic challenges.
He pointed out that the Bank seemed to have deviated from these protocols.
Professor Mensah further explained that while central banks are authorized to intervene during economic downturns, they should not funnel money through government channels. He emphasized that the Bank of Ghana is meant to stimulate the economy through monetary channels, not fiscal ones.
The reported loss of GH¢60.8 billion by the BoG can be attributed to the following components:
Non-Marketable Instruments: GH¢32.3 billion Marketable Instruments: GH¢16.1 billion COCOBOD: GH¢4.7 billion Price and Exchange Rate Valuation: GH¢5.2 billion Interest Expense on Monetary Policy: GH¢3.3 billion In addition to these losses, it has been disclosed that the Bank spent $250 million on constructing its new headquarters.
In response to these developments, the Minority Caucus in Parliament has expressed outrage and demanded the immediate resignation of Governor Ernest Addison for overseeing such a significant loss.
However, Economist Dr. Patrick Assuming believes that the Bank of Ghana should be given an opportunity to provide a detailed explanation regarding the losses and does not advocate for the governor’s resignation.
The Institute of Statistical, Social and Economic Research (ISSER) is promoting the establishment of financial constraints on the Bank of Ghana’s involvement in supporting the government’s budget.
In its evaluation of the government’s 2023 Mid-Year Budget, presented by the Finance Minister on July 31, Professor Peter Quartey, the Director of Research at the Institute, elucidated that the deficit financing conducted by the Bank of Ghana has unfavorable repercussions on national inflation, cash flow dynamics, and the stability of the exchange rate.
Dr. Quartey highlighted the example of Chile, where strict legal limitations have been implemented to prevent any form of direct or indirect financial backing of public expenditures by the Central Bank, except under wartime circumstances.
“Similar practices are observed in countries like Germany, Switzerland, and the Netherlands, where legislation enforces strict boundaries on direct central bank credit to the government, while permitting the acquisition of government paper through open market operations,” he added.
Regarding the GH65 billion impairment loss attributed to the governmental Domestic Debt Exchange Program that the Bank of Ghana recorded in 2022, the ISSER Director stated, “BoG haircut on DDEP was necessary at the time but what brought us here should not be repeated. Deficit financing of GH¢53,150 million out of a total financing of GH¢65.156 billion”.
“Clear limits on government financing should be set and enshrined in our Laws,” Prof. Quartey added.
ISSER also urged the government to increase tax mobilization efforts and impose rigorous spending constraints in order to achieve debt sustainability and price stability, particularly in the domestic economy.
The New Patriotic Party (NPP) has labeled the National Democratic Congress’ (NDC) demand for the resignation of Bank of Ghana Governor, Dr. Ernest Addison, and his deputies as a reflection of the NDC’s lack of constructive solutions for economic stabilization.
The NDC had threatened to march to the Bank of Ghana’s premises and force Dr. Addison and his deputies to resign within 21 days, citing what it calls reckless management of the bank.
But speaking to the media, NPP’s Director of Communications, Richard Ahiagbah, dismissed the NDC’s stance as propaganda, asserting that the NDC was attempting to interfere with the central bank’s decisions.
Ahiagbah questioned, “Is the NDC trying to run the Bank of Ghana now? Is that the point they want to communicate to us, that the Bank of Ghana cannot make a decision until they refer to the NDC?”
He urged the NDC to focus on constructive matters, emphasizing the need to strengthen the ongoing economic recovery and growth trajectory.
Furthermore, Ahiagbah highlighted that the Bank of Ghana’s losses in its 2022 fiscal year are not unique to Ghana, citing similar occurrences in other central banks worldwide. He attributed these challenges to the global economic impact of events like COVID-19 and the Russian-Ukraine conflict.
The Minority in Parliament has expressed its intention to subject recent expenditures by the Bank of Ghana (BoG) to a value-for-money audit.
The Central Bank’s 2022 statement revealed significant losses amounting to over GHȼ60 billion.
Some of the expenses that the Minority plans to scrutinize include the BoG’s spending of almost GHȼ70 million on computer-related expenses, GHȼ131 million for motor and vehicle maintenance, and GHȼ97 million for foreign and domestic travel, among other items.
The acting Ranking Member on the Finance Committee, Isaac Adongo, stated that a future NDC government will investigate these expenditures to understand the reasoning behind such allocations.
He questioned the appropriateness of spending GHȼ33 million on communication and GHȼ97 million on travel expenses, indicating that a value-for-money audit would shed light on these financial decisions.
“I want to tell Dr Addison that in the future, we will subject these numbers to value-for-money audit. We will understand how it is that it is reasonable to spend 33 million cedis on communication. How reasonable it is for you to spend 97 million on travels? We will perform a value-for-money audit, of the finances of the Bank of Ghana,” he said.
Furthermore, Mr. Adongo called on Parliament to assert its influence and carry out its supervisory role effectively. He also raised concerns about a reported write-off of debt owed by the government, asserting that such an action should only take place with the approval of Parliament through a resolution.
The MP for Bolgatanga Central emphasized that the Bank of Ghana must be held accountable under section 53 of the Public Financial Management Act.
The Minority’s position is based on their belief that the central bank’s actions have been evading parliamentary oversight over the country’s public finances, potentially affecting fiscal and monetary policies.
The Minority Leader, Dr. Cassiel Ato Forson, has made serious allegations against the Bank of Ghana, accusing it of being responsible for the depletion of Ghana’s external reserves.
During the presentation of the Minority’s response to the 2023 mid-year budget review in Parliament, Dr. Forson asserted that the Bank of Ghana’s practice of printing money led to the unprecedented depreciation of the Cedi in 2022, resulting in hyperinflation.
According to Dr. Forson, the Cedi depreciated from GHC6:$1 to over GHC15:$1 in 2022, representing a straight-line calculation of over 100% depreciation.
He claimed that this depreciation, along with inflation, has adversely affected the financial status of citizens, with the rich slipping into the middle class and poverty worsening for the poor.
He cited a World Bank report stating that around 850,000 people were pushed further below the poverty line due to inflation alone in 2022.
The Minority Leader accused the government and the Bank of Ghana of initially denying the act of printing money to finance bloated government expenditures in 2022 but later admitting to the practice.
“Paragraph 8 of the IMF Staff Report gives further detail that the Bank of Ghana illegally printed over GHC45 billion representing 7.2% of GDP in 2022 alone, and GHC35 billion in 2021. This is the first in the history of Ghana”, he said.
He cited the IMF Staff Report, which detailed that the Bank of Ghana illegally printed over GHC45 billion in 2022, representing 7.2% of GDP, and GHC35 billion in 2021 – the first such occurrence in Ghana’s history.
Describing the Central Bank as a “crime scene,” Dr. Ato Forson blamed the government and its economic managers, led by Mr. Strategist, for aiding and abetting this economic crime. He pointed out that under the current economic managers, Ghana’s public debt surged from GHC120 billion in 2016 to GHC600 billion by the end of 2022, indicating an increase of about 400%. This high level of debt resulted in Ghana defaulting on repayment obligations to both local and foreign debtors for the first time in its history.
Dr. Forson also raised concerns about the collapse of Ghana’s financial sector, with all 23 banks recording massive impairment losses of over GHC18 billion in 2022.
He stressed that this financial mismanagement by the government has had unprecedented consequences, and he believes the Bank of Ghana requires urgent attention due to its major financial distress and bankruptcy.
The accusations by the Minority Leader highlight the economic challenges facing Ghana and the need for transparent and prudent financial management to address the issues at hand.
An advisor to the governor of the central bank, Stephen Opata, has stressed that the Bank of Ghana has not given the government any kind of financing support for the fiscal year 2023.
He claims that the Bank of Ghana’s decision will likely remain in effect till the present IMF program expires. He pointed out that it is a requirement of Ghana’s program with the Fund.
Stephen Opata explained the action to reporters at a news conference on August 2, 2023, saying it is in line with a Memorandum of Understanding (MoU) for zero financing that the BoG and the government of Ghana signed.
“The effort to rebuild equity has started following the signing of the MoU on zero financing to government but we recognize that maybe at some if government can do something about capital injection but probably this is not the time for that…instead we should focus on the three-year reforms under the IMF programme,” Mr Opata said.
Before securing its 17th IMF deal, the Central Bank Governor, Dr. Ernest Addison, stated that both the Bank of Ghana and the Ministry of Finance had committed to completely financing the budget in 2023 and beyond.
This decision is in line with prudent macroeconomic policies aimed at initiating a disinflation path and reducing the monetary policy rate.
Speaking at the 60th-anniversary launch of the Institute of Chartered Accountants Ghana (ICAG), Dr. Ernest Addison emphasized that the Memorandum of Understanding (MoU) also aims to strengthen the country’s reserve buffers to cover at least 3 months of imports by the end of 2025.
The Bank of Ghana’s (BoG) 2022 annual report, indicates that the currency in circulation saw substantial growth, with a total of ¢35.584 billion in notes and ¢494.173 million in coins.
The 200 cedi note dominated the currency landscape, with about ¢9.8 billion in circulation during 2022, a notable increase from the ¢6.55 billion in 2021.
The 100 cedi note also experienced a surge, reaching ¢8.69 billion in circulation, compared to ¢4.31 billion in 2021.
Similarly, the 50 cedi note witnessed significant growth, totaling ¢7.70 billion in 2022, compared to ¢4.89 billion the previous year.
As for the 20 and 10 cedi notes, there were ¢5.13 billion and ¢2.69 billion respectively in circulation during 2021, showing a slight increase from ¢4.89 billion and ¢2.44 billion in the preceding year.
Regarding lower denominations, the 5, 2, and 1 cedi notes amounted to ¢1.32 billion, ¢7.6 million, and ¢141 million respectively.
In the coin category, the total amount in circulation was ¢494.17 million during 2022, representing a rise from the ¢365.11 million recorded in 2021.
The 50 Ghana pesewa coin led the way with the highest circulation at ¢199.81 million, closely followed by the 20 Ghana pesewa coin at ¢119.85 million.
The considerable growth in the currency during 2022 indicates that the government increased money printing during the year under review.
The Bank of Ghana is urging banks and all players in the financial services sector to boost their technological investments to combat the increasing incidents of fraud in the banking industry. This measure aims to bridge the technology gap between bankers and certain customers, thereby addressing the menace effectively.
Head of Financial Stability at the Bank of Ghana, Dr. Joseph France, emphasized that conducting risk assessments is crucial to safeguard the banking sector. He spoke to journalists after participating in the opening of a three-day Enterprise-wide Risk Assessment training organized by the Ghana International Bank.
Furthermore, the Bank of Ghana is committed to strengthening its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime and actively engaging in the global fight against cross-border financial crime. The national authorities are creating a conducive environment that promotes sound management of financial crime risk by financial intermediaries.
Over the past decade, efforts at the national level have been directed towards enhancing legal and regulatory frameworks, innovation, domestic and cross-border cooperation, among other measures, to address deficiencies identified during successive national risk assessments and mutual evaluations.
Recent interventions have resulted in the development of a national AML/CFT policy, including the review of the national risk assessment, the enactment of a consolidated anti-money laundering law, and strengthening the Financial Intelligence Center with essential resources.
On the regulatory front, the Bank of Ghana has successfully completed several national-level initiatives. These encompass implementing a risk-based supervision approach, introducing a sanction regime, issuing AML/CFT & P guidelines for accountable institutions to utilize the Ghana Card for due diligence processes, and providing supervisory guidance notes in this regard since the previous year.
As per the Petroleum Holding Fund report by the Bank of Ghana (BoG), Ghana recorded a total of $540 million in petroleum receipts during the first half of 2023.
This figure marks a decrease compared to the $731 million earned during the same period in 2022.
The report, in compliance with the petroleum revenue management act, Act 815, provides insights into Ghana’s crude oil liftings and allocation to the Ghana Petroleum Funds.
The semiannual report from the BoG revealed a shortfall of $191 million (about 26% less) in earnings during the first six months of 2023 compared to the same period last year.
The total petroleum revenue receipts include proceeds from oil liftings, Corporate Tax, Surface Rental, and interest on the Petroleum Fund account.
For the period ending June 30, 2023, oil liftings contributed $370 million, corporate tax accounted for $166 million, and surface rental amounted to $3 million.
In terms of distribution, the Ghana Stabilization Fund received $71 million, and the Ghana Heritage Fund received $30 million, totaling about $101 million during the same period.
As per the law, the Bank of Ghana is responsible for receiving and disbursing petroleum revenue for the country. Furthermore, the Annual Budget Funding Amount receives not more than 70 percent of the benchmark revenue, while not less than 30 percent is allocated to the Ghana Petroleum Funds.
From the transferable funds into the Petroleum Funds, the Ghana Heritage Fund receives not less than 30 percent, with the remaining amount transferred to the Ghana Stabilization Fund.
The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has raised concerns about individuals holding significant amounts of foreign currencies in their homes.
This comes after reports emerged that the former Minister of Sanitation and Water Resources, Madam Cecilia Dapaah, allegedly kept over One million dollars in her bedroom.
Dr. Addison expressed worry over the practice during the 113th Monetary Policy Committee meeting on Monday, July 24.
In the midst of these concerns, the Office of the Special Prosecutor (OSP) confirmed the arrest of Madam Cecilia Dapaah on suspected corruption charges.
Addison said: “It is a worry to all of us but it is a matter in court so there is not much to say about it.”
The Special Prosecutor’s statement mentioned large sums of money and valuable items reportedly stolen from her residence.
Following numerous reports, the investigation was initiated, and she is currently being questioned by authorized officers of the OSP.
Madam Cecilia Dapaah resigned from her ministerial position on Saturday, July 22, 2023, after revelations that her house helps allegedly stole significant amounts of foreign and local currencies from her residence in Accra.
Two house helps, Patience Botwe and Sarah Agyei, are facing charges in connection with the audacious theft, where they are accused of stealing millions of dollars and Ghanaian cedis from her home between July and October 2022.
Data from the Bank of Ghana (BoG) reveals that Ghana’s public debt stock surged by ¢134.7 billion in the first four months of 2023, reaching ¢569.3 billion in April 2023, equivalent to approximately 71.1% of Gross Domestic Product (GDP) or $52 billion.
The increase in debt was mainly attributed to the depreciation of the cedi during the period and, to some extent, an increase in domestic debt by ¢15.9 billion in the first four months of the year.
In December 2022, the debt stock stood at ¢434.6 billion, approximately 71.2% of GDP.
According to the July 2023 Summary of Economic and Financial Data, Ghana’s debt in cedi terms rose to ¢547.8 billion ($50.7 billion) by the end of January 2023 and further increased to ¢564.1 billion ($51.2 billion) and ¢569.5 billion ($51.7 billion) in February and March 2023, respectively.
The Central Bank’s data also shows that the external component of the total public debt stood at $29.3 billion (¢321.4 billion) in April 2023, higher than the $29.0 billion (¢240.9 billion) recorded in December 2022. The domestic debt stood at ¢247.9 billion at the end of April 2023, approximately 30.9% of GDP, compared to ¢232.3 billion, approximately 38.1% of GDP, in December 2022.
Ghana’s nominal GDP experienced a surge of ¢190.7 billion from December 2022 to ¢800.9 billion in April 2023, primarily attributed to elevated prices of goods and services, driven by high inflation rates.
In terms of fiscal deficits, the government’s fiscal deficit to GDP ratio stood at 1.8% in April 2023, a significant decrease from 8.3% of GDP recorded in December 2022. The primary balance stood at 0.7% of GDP in April 2023.
Ghana took various measures to address its economic challenges, including suspending payment of loans to external creditors in December 2022 and restructuring some domestic debt in February 2023.
These efforts paved the way for the approval of a $3 billion Extended Credit Facility (ECF) programme by the International Monetary Fund. Additionally, the country reached an agreement with banks in June 2023 to restructure ¢15 billion ($1.36 billion) of locally issued U.S. dollar bonds and cocoa bills.
However, agreements with external creditors are still pending before restructuring the external debt.
The Supreme Court has ruled that the High Court has the authority to investigate the revocation of licenses of banks and specialized deposit-taking institutions (SDIs) by the Bank of Ghana (BoG), especially in cases involving alleged breaches of fundamental human rights.
The court’s decision was based on the understanding that Section 141 of the Banks and SDI Act, 2016 (Act 930), which stipulates arbitration as the means of seeking redress for those aggrieved by the BoG’s license revocation, does not exclude the High Court’s jurisdiction to assess the propriety of such revocations.
In a unanimous decision, a five-member panel of the apex court overturned the ruling by the Court of Appeal, which had upheld that an arbitration tribunal, not the High Court, was the appropriate venue for seeking redress against BoG’s license revocation.
The appeal was brought by Dr. Papa Kwesi Nduom, the Founder of the now-defunct GN Savings and Loans, who challenged the revocation of GN’s license by the BoG in 2019.
Dr. Nduom and two affiliated entities approached the High Court with a human rights application, arguing that the license revocation was unfair and unreasonable, violating their right to administrative justice as guaranteed under Article 23 of the 1992 Constitution.
The BoG objected to the jurisdiction of the High Court, citing Section 141 of Act 930 as the provision that mandated arbitration as the proper venue for seeking redress against license revocation by the central bank.
However, the High Court dismissed the objection, leading the BoG to appeal the decision at the Court of Appeal.
On June 2, 2022, the Court of Appeal, in a unanimous decision, ruled in favor of the BoG, holding that the High Court lacked jurisdiction to entertain the case due to the explicit provision of arbitration as the means of seeking redress under Section 141 of Act 930.
The Court of Appeal halted the proceedings at the High Court and referred the dispute to the Ghana Arbitration Centre.
Dissatisfied with this outcome, Dr. Nduom appealed to the Supreme Court, which eventually ruled in his favor, upholding the jurisdiction of the High Court to inquire into the matter of BoG’s license revocation.
The Supreme Court has awarded businessman and politician, Paa Kwesi Ndoum permission to appeal GN Bank’s license revocation to the High Court.
This comes after the Supreme Court overturned an earlier ruling by the Court of Appeal that barred it from fighting the revocation in the High Court.
GN Bank, which operated under the Groupe Nduom brand, was one of several financial firms whose licenses were terminated in 2018 as part of a banking sector clean-up effort.
Paa Kwesi Nduom, the bank’s founder, filed an action in the High Court to challenge the revocation.
However, respondents in the case, including the Bank of Ghana, asked the Court of Appeal to rule that the proper mechanism for disputing the revocation under the Specialized Deposit-Taking Institutions Act is through arbitration.
The Court of Appeal granted their application, suspended the proceedings in the High Court, and ordered the parties to arbitrate.
Following the Court of Appeal’s judgment, Groupe Nduom petitioned the Supreme Court for a reconsideration of the Court of Appeal’s decision.
After hearing the case, the Supreme Court ruled in favor of Paa Kwesi Nduom.
