You misunderstood the issues, update yourself – Ato Forson chides Majority Leader : BoG

The ongoing exchange between the Minority Leader, Dr. Cassiel Ato Baah Forson, and the Majority Leader, Osei Kyei-Mensah-Bonsu, highlights a contentious issue regarding the management of the Bank of Ghana. The Minority Leader accuses the Majority Leader of downplaying the concerns raised by the National Democratic Congress (NDC) about the Bank of Ghana’s financial mismanagement.

Dr. Ato Forson questions whether it is appropriate for the affairs of the Central Bank to be mismanaged to the extent indicated by the bank’s own financial statements. He also queries whether defending one’s party’s position should take precedence over the national interest, and he finds it ironic that the NPP party quickly refers to his previous role in the Ministry of Finance whenever he raises concerns.

In response, the Majority Leader emphasizes that the Bank of Ghana Governor does not directly report to Parliament and suggests that politicizing issues related to the Bank of Ghana is not in the best interest of the country.

The underlying theme of this exchange is the accountability of the Bank of Ghana and the government’s responsibility to address the issues raised by the opposition party. It highlights the ongoing political dynamics in Ghana, where different parties have differing views on how certain matters should be handled. The situation also showcases the broader context of transparency, governance, and public accountability in the financial and political landscape of the country.

Find the full write-up below:

RE: BoG’s issues – it’s either the Minority is exaggerating or haven’t examined the facts – Majority Leader

I have come across this publication from an interview the Majority Leader in Parliament reportedly granted to Oman FM.

It is either the Majority Leader, Osei Kyei-Mensah Bonsu exhibits such gross misunderstanding of the germane issues we have raised about the Bank of Ghana or he has deliberately chosen to wish away the concerns of Ghanaians as his government has always done.

The Bank of Ghana is not above the law and indeed answers to the Finance Committee of Parliament on urgent matters as the Majority Leader alluded to. I wish to restate our vexed concerns about the Bank of Ghana and those of well-meaning Ghanaians, just to help the Majority Leader.

1. We in the NDC Minority didn’t declare the Bank of Ghana bankrupt or insolvent, it’s own 2022 Annual Report and Financial Statements did. According to the BOG’s own books, the Bank recorded a staggering loss of GH60.8 billion and a negative equity of GHS55.1 billion – this is unprecedented in the history of Ghana!

2. The BOG arrived at this historic low because the Governor, his Deputies and the Board broke their own law, the Bank of Ghana Act, 2002 (Act 612) as amended. Section 3 of this Act limits all loans and advances to Government to just 5% of the previous year’s revenue. Despite constant warnings from the Minority in time past, the Bank of Ghana printed GH35 billion in 2021 and GH42 billion in 2022, all in contravention of their own Law.

To make matters worse, the Bank of Ghana decided to team up with government to write off a collasal GH48 billion of Government’s indebtedness contrary to section 67 of the Public Financial Management Act. Someone must be held accountable for this, and the Minority in Parliament cannot be blamed for calling for this accountability.

3. At a time the Bank of Ghana has recorded this huge loss, the BOG is putting up a new Head Office building at Ridge at an astonishing cost of $250 million. The outlandish and outrageously expensive new office building is going on at a time Ghana’s economy is under an IMF program and reeling under hyperinflation caused by the BOG’s own reckless act of printing money to finance Government’s expenditure. This construction is ongoing at a time Ghana has stopped servicing its domestic and external debts and road contractors, school feeding caterers, Buffer Stock suppliers have all not been paid.

4. The BOG’s own Annual Report and Financial Statement betrayed the bank’s financial recklessness and lack of sensitivity to the suffering plight of Ghanaians. How can one justify a Bank in this state of financial distress spending GH131.6 million on vehicle maintenance and GH97.4 million on domestic and foreign travels? Which bank in this distress will entertain capital expenditure commitments of GHS711.21 million in 2022 alone, and actually be spending between $50 million and $60 million on ultra-modern guest houses in Takoradi and Tamale? Legal claims against BOG in 2022 alone amounted to GHS78.95 million.

Is the Majority Leader suggesting to us that it is right for the affairs of the Central Bank to be mismanaged to this level? Is he by any means suggesting that one must defend his party’s position on every single national issue, even if this is inimical to the national interest? Is it not intriguing and ironic that the Leadership of the Majority Caucus in Parliament and the NPP party are always quick to state that Ato Forson once worked at the Ministry of Finance and must know better? It is precisely the reason why I had the experience, foresight and vision to see and to caution institutions like the Bank of Ghana a couple of years ago against the very acts that have now brought the bank on its knees.

Clearly, the Majority Leader, Osei Kyei-Mensah Bonsu either misunderstood the issues and needs to update himself or he has chosen to embark on his usual diversionary tactics.

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