The Minority Leader Dr Cassiel Ato Forson has strongly asserted that the Bank of Ghana does not possess the authority to unilaterally write off government debt without seeking approval from Parliament.
He emphasized that the government, likewise, cannot compel the Bank of Ghana to write off government debt without first obtaining parliamentary consent.
Wrapping up the Minority’s debate on the 2023 Mid-Year Budget Review, Dr Ato Forson disclosed that the Central Bank, in collaboration with the executive arm of the government, has already written off approximately GHC48.4 billion of government debt owed to the Bank of Ghana without any parliamentary approval. He contended that the government’s entire debt restructuring program should be subject to parliamentary scrutiny and approval.
Refuting Finance Minister Ken Ofori-Atta’s claim that the government has successfully “turned the corner” in the country’s economic management, Dr Ato Forson expressed his dissent, stating that Ghana is still grappling with economic challenges and has not made significant progress.
“Mr Speaker, we have not turned the corner. We have not even seen the corner from where we are as a country. In fact, we are still in the woods. We are nowhere near the corner, let alone turn it.”
He further urged the government to apologize to the people of Ghana for the detrimental impact on their livelihoods and the country as a whole.
He said the government has successfully collapsed all state-owned enterprises and institutions, adding “The almighty Bank of Ghana is now bankrupt with negative equity of over GHC55 billion and counting that will require the taxpayer to recapitalise it.”
The Minority Leader highlighted the dire financial state of various state-owned enterprises, including the Bank of Ghana, which has accrued negative equity of over GHC55 billion. He also criticized the government for causing the bankruptcy of numerous entities, such as the Ghana Cocoa Board and other state-owned enterprises.
“Who would have thought that the once prestigious Ghana Cocoa Board will today be bankrupt to the extent that they cannot repay their debt to cocoa bondholders, cocoa road contractors, Licence Buying Companies and fertiliser suppliers?” he quizzed.
“ECG, yaamutu; GIHOC Distilleries, yaamutu; NEDCo, yaamutu; GRIDCo, yaamutu; Buffer Stock Company, yaamutu; Ghana Publishing Company, yaamutu; Ghana Railways, yaamutu; STC, yaamutu; Ghana Airport Company Limited, yaamutu. What a corner you have turned, Mr. Minister!, the Minority Leader chanted.
Dr Ato Forson also raised concerns about Ghana’s economic indicators, such as GDP growth, net international reserves, inflation, and monetary policy, which have not shown promising trends under the current administration. He disapproved of the Finance Minister’s claims that the government has achieved economic success.
“How could you claim to have turned a corner when GDP growth has been revised from 2.8% to 1.5%, current net international reserves is about 1 week of import cover and it is projected to be about 3 weeks (0.8 months) of import cover by the end of the year 2023 even with IMF cash?”
The Ajumako-Enyan-Esiam again castigated the economic management team of the Akufo-Addo-led government describing their performance over the past seven years as “beyond abysmal.”
“How could you claim to have turned a corner when inflation is currently 42.5% and rising and projected to be 31.3% by the end of the year, when monetary policy is 30% and rising, and commercial bank lending rate is 36% and rising?”
“The performance of this economic management team, despite the hype, over the past seven years has been beyond abysmal”, adding “With this mess created by the NPP administration, Ghana will require over 5 years of collective sacrifice and dedication to turn things around”.
“Mr Speaker, the government has rewritten Ghana’s economic history and a book on HOW NOT TO MANAGE AN ECONOMY must be dedicated to this Akufo-Addo/Bawumia government,” Dr Ato Forson concluded.
