Former President John Mahama criticizes Bank of Ghana’s GHS 60bn loss

Former President John Mahama criticizes Bank of Ghana’s GHS 60bn loss

Former President John Mahama has criticized the Bank of Ghana (BoG) for attributing its recent losses primarily to the government’s domestic debt exchange program.

The central bank reported losses amounting to GHC60.81 billion for the 2022 financial year, a significant contrast to the GHC1.23 billion profit recorded in 2021.

The losses were largely attributed to the government’s domestic debt restructuring efforts and the depreciation of the cedi, among other factors.

The BoG’s audited financial statement for 2022, released on July 28, revealed that as of December 31, 2022, the total liabilities of the central bank and its subsidiaries exceeded its total assets by GHC54.52 billion.

Expressing his perspective on this development via a tweet on August 10, Mahama stated, “An incompetent Finance Minister damages the economy and uses Covid-19 and Ukraine/Russia war as cover-ups. A pliant Governor destroys the Central Bank and seeks to use DDE as a cover.”

Call for Resignation by Minority in Parliament

Concurrently, the Minority in Parliament has issued a 21-day ultimatum for the resignation of the Bank of Ghana’s Governor, Dr. Ernest Addison, and his two deputies. Should they not comply, the Minority threatens to take further action.

Minority Leader, Dr. Cassiel Ato Forson, announced this ultimatum during a news conference on August 8, affirming that they will stage a march to occupy the Bank of Ghana if the trio does not step down.

He asserted, “We are resolved to embark on popular action to occupy the central bank and drive out the team of inept, callous, and criminal mismanagers of the finances of this country and Save the Bank of Ghana.”

Forson criticized the bank’s leadership for investing $250 million (approximately GHC 2.8 billion) in a new Head Office building at Ridge, despite the bank’s purported financial challenges.

He remarked, “In our circumstances, this is the height of insensitivity in the management of the finances of a troubled country.”