“Governor of Bank of Ghana’s Alleged Negligence Causes $6 Billion Loss, Doubles IMF Bailout Amidst National Sacrifices, Affirms Minority Group”

Title: Urgent Call for Resignation of Bank of Ghana’s Governor due to Mismanagement

Date: August 8, 2023

Ladies and gentlemen,

We gather here today with a heavy heart and deep concern as we address a critical matter regarding the Bank of Ghana. The recent release of its annual report has unveiled a dire situation that demands immediate action to safeguard our central bank. The reckless and incompetent handling of the economy by the NPP administration has caused significant damage, and urgent steps must be taken to prevent further harm.

The National Democratic Congress (NDC) has consistently raised alarms about the mismanagement of the financial sector by Dr. Ernest Addison, the Governor of the Central Bank, and his team. This mismanagement, orchestrated by Vice President Dr. Mahamudu Bawumia and the NPP’s economic team, has led to alarming results.

The 2022 Annual Report and Financial Statement of the Bank of Ghana has revealed deeply troubling facts:

1. The Bank of Ghana has incurred a massive loss of GHS60.8 billion ($6 billion), twice the amount expected from an IMF bailout.
2. The bank’s equity has turned negative by over GHS55.1 billion, rendering it insolvent.
3. This dire situation is a result of reckless lending and the writing-off of a substantial GHC 48.4 billion of government debt without proper parliamentary approval.

Furthermore, the report highlights extravagant and wasteful expenditures:

1. The Bank of Ghana spent a significant GHS131.6 million on vehicle maintenance in 2022, a 114% increase from the previous year.
2. Excessive foreign and domestic travel costs amounted to GHS97.4 million, a 246% increase from the previous year.
3. Director’s remuneration saw a staggering GHS8.6 million expenditure, an 87% increase from the previous year.
4. Banking supervision expenses totaled GHS357.9 million.
5. Computer and communication expenses amounted to GHS67.9 million and GHS32 million, respectively.
6. Undisclosed “other” expenses reached GHS287.8 million.

Additionally, the Bank of Ghana has invested $250 million (GHC2.8 billion) in a new head office building, a move deemed insensitive given the financial crisis.

The illegal printing of money by the Bank of Ghana has severely impacted external reserves, leading to the depreciation of the Cedi and hyperinflation in 2022. This is a clear breach of established banking regulations.

In light of these alarming revelations, we demand the immediate resignation of Dr. Ernest Addison, the Governor of the Central Bank, and his deputies within 21 days. Failure to do so will prompt popular action, including occupying the Central Bank, to remove the team responsible for the financial mismanagement.

The NDC is committed to ensuring accountability and preventing further harm to our nation. We urge all Ghanaians to stand united in demanding justice and transparency.

Thank you, and may our actions lead to a brighter future for Ghana.

Statement delivered by Dr. Cassiel AtoForson, Leader of the NDC Caucus in Parliament.