GH¢60bn loss: BoG’s response filled with distortions, flimsy justifications – Minority

11th August 2023

The Minority in Parliament has once again stated that Dr. Ernest Addison, the Governor of the Bank of Ghana, and his deputies cannot continue to defend the staggering GH¢60 billion loss incurred during the year of 2022.

The Minority in the last week has persistently demanded the resignation of Dr. Addison and his deputies, leveling grave allegations of gross financial mismanagement within the Bank of Ghana.

On Wednesday, August 9, the Bank of Ghana issued a statement rebuffing allegations of recklessness in their economic oversight and attributing the substantial financial setback to the government’s Domestic Debt Exchange, COCOBOD loans, and the devaluation of the cedi.

However, the Minority remains resolute in their stance and has rejected such explanations as mere diversions. In a statement of their own, dated August 10, the minority denounced the Bank of Ghana’s response as a calculated distortion of facts and flimsy excuses that fail to hold water.

“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 Minority in a statement signed by the Minority Leader, Cassiel Ato Forson pointed out.

The Minority Leader further chastised the BoG emphasising that none of the explanations put forward by the officials can justify the outrageous operational expenditures they engaged in 2022.

He also described as ‘unconscionable’ the spending of GHS131.6 million on vehicle maintenance; and GHS97.4 million on foreign and domestic travels, 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 9th August 2023 can rationalize 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 GHS131.6 million on vehicle maintenance; GHS67.9 million on computer-related expenses; GHS97.4 million on foreign and domestic travels; GHS32 million on communication expenses; and GHS357.9 million on banking supervision, in 2022 alone”.

Responding to BoG claims that the financial outcome has very little implication on its operations,  Ato Forson blasted BoG officials and said such comments must be treated with the utmost contempt.

“This statement is completely erroneous and must be treated with the utmost contempt. The truth of the matter is that the Central banks 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.”

Click to read NDC’s response to BoG

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