The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has come under scrutiny for allocating GHS250 million to construct a new head office complex at a time the institution is facing financial challenges.
According to the Minority Leader, Dr Cassiel Ato Forson, the Governor has resorted to money printing to fund this project due to the alleged lack of funds within the BoG.
“The Bank of Ghana does not have money but spending GHS250million for a new head office, which means he is printing additional money to finance this project,” the Ajumako-Enyan-Esiam MP said.
Addressing the media in Accra on Tuesday, August 8, 2023, Dr Ato Forson gave the governor and his two deputies a 21-day ultimatum to resign.
“We have to get this Governor out and let us have a new Governor. If we allow him to stay in the office, we will set a bad precedence for future managers to do the same,” he said at a press conference in Accra on Tuesday, August 8.
Dr Forson stressed, “He has messed us so much that we cannot wait to see his back.”
“We demand the immediate resignation of the Governor and his deputies within 21 days. We will march to occupy the central bank to save the Bank of Ghana if he fails to reign. The March will ensure accountability,” he said.
The motivations behind Dr Forson’s criticism stem from the recent financial loss incurred by the BoG, amounting to GHS 60.8 billion. The loss was attributed to various factors, including the depreciation of the local currency, impairment of loans, and the impact of the Government of Ghana Domestic Debt Exchange Programme.
In response to these challenges, the BoG outlined measures in its Annual Report to mitigate the situation and recover its financial stability. These measures include retaining profits to rebuild capital until equity returns to positive levels, refraining from monetarily financing the government’s budget, optimizing the investment portfolio and operational cost mix, and considering potential government recapitalization support in the medium to long term.
