BoG Giving “Flimsy Justifications” For GH¢60bn Loss – Minority

Source The Ghana Report

The Minority in Parliament has stated that the response by the Bank of Ghana (BoG) to their presser on the central bank’s 2022 loss is filled with distortions and flimsy justifications.

According to them, the BoG’s reply does not address the serious issues raised by the GH¢60bn loss incurred in 2022.

They are of the view that the statement put forth, among others, does not address the BoG’s printing of money for the government and the writing off of the GH₵‎48 million debt government owed the central bank.

They have demanded the resignation of the BoG Governor, Dr Ernest Addison, and his deputies, levelling grave allegations of gross financial mismanagement at the apex bank.

A statement from the central bank on August 9 debunked the allegations of recklessness in their economic oversight.

The BoG instead attributed the loss to substantial financial setbacks to the government’s Domestic Debt Exchange(DDEP), COCOBOD loans, and the devaluation of the cedi.

However, the minority remains resolute in its stance, rejecting such explanations as mere diversions.

A press release dated August 11, signed by the Minority Leader, Dr Cassiel Ato Forson, said, “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”.

Dr Ato Forson further chastised the BoG, emphasising that none of the explanations put forward by the officials can justify the outrageous operational expenditures in 2022.

He also described as “unconscionable” the spending of GH₵‎131.6 million on vehicle maintenance; and GH₵‎97.4 million on foreign and domestic travel by the BoG.

“We wish to make the point that none of the explanations put forward by the Bank of Ghana in its press statement of August 9, 2023, can rationalise or justify the outrageous operational expenditures they engaged in 2022, as reported by their Auditors in the 2022 Annual Report and Financial Statements of the Bank.

“We maintain that despite the high rate of inflation and currency depreciation recorded last year as a result of the recklessness of BOG and the Akufo-Addo/Bawumia/NPP government, it was unconscionable and unacceptable for BoG to have spent a staggering GH₵‎131.6 million on vehicle maintenance; GH₵‎67.9 million on computer-related expenses; GH₵‎97.4 million on foreign and domestic travels; GH₵‎32 million on communication expenses; and GH₵‎357.9 million on banking supervision, in 2022 alone”.

Dr Ato Forson condemned BoG officials for suggesting that the financial outcome has little implication on their operations.

“This statement is completely erroneous and must be treated with the utmost contempt. The truth of the matter is that the central bank, BoG, is referring to, did not underwrite the insolvency or bankruptcy of their governments. Neither did they violate their governing laws with impunity, as BoG has done. Hence, they would have space to absorb temporary losses, unlike BoG.

“The unprecedented losses incurred by BoG counts for various reasons and must not be taken lightly at all,” the statement added.


Read the full statement below:

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