Our Independence is Rock Solid, Says BoG’s Comms Chief
In an exclusive interview with NorvanReports, Bernard Otabil, the Communications Director of the Bank of Ghana, has forcefully defended the central bank’s operational independence in light of recent discussions surrounding land allocations to top bank officials. The controversy, which has sparked public debate, centers on the inclusion of the Governor and Deputy Governors among beneficiaries of state land sales.
Addressing the issue head-on, Mr Otabil told NorvanReports, “The Bank of Ghana enjoys a high degree of operational independence, safeguarded by strong institutional structures.” This statement comes as a direct response to concerns that the land allocation practice might compromise the bank’s autonomy.
Mr Otabil expressed dismay at what he perceives as attempts to undermine the bank’s independence. “It is worrying that an attempt would be made to water down the impact of operational independence in the Bank’s policy formulation,” he said. The Communications Director suggested that such critiques might stem from a misunderstanding of the complex dynamics of monetary policy and inflation.
Emphasizing the bank’s commitment to its core mandate, he outlined the Bank of Ghana’s inflation targeting framework. “The Bank of Ghana is committed to pursuing policies aimed at achieving a stable level of inflation in line with the medium-term target of 8 plus/minus 2 percentage points,” he stated to NorvanReports.
This clear articulation of policy goals demonstrates the bank’s focus on its primary objectives, regardless of external discussions, underscoring the broader economic implications of the bank’s policies. “Bringing inflation down to the target level is a precondition to achieving sustainable economic growth and, over the long term, ensuring economic prosperity in Ghana and increasing welfare of the Ghanaian population,” he explained.
This statement highlights the bank’s view that its independence is not merely an institutional principle but a key factor in the country’s economic well-being.
A central theme in Mr Otabil’s response was the bank’s unwavering commitment to transparency and accountability. He asserted to NorvanReports, “Underpinning our operational independence is transparency and accountability, and this will never be compromised to maintain public trust, and anchor inflation expectations.” This strong stance indicates the bank’s awareness of the importance of public confidence in its operations.
Addressing the specific issue of land allocations, he provided context to NorvanReports. He explained that the practice of Governors and Deputy Governors acquiring state lands through legitimate processes is not a recent development. According to historical records, this arrangement has been a consistent feature of Ghana’s public administration for several decades, spanning various governments and central bank leaderships, with land allocation records dating back to the early 1990s.
“This historical context is crucial to understand,” he emphasized. “What we’re seeing is not an aberration or a sign of compromised independence, but rather a long-standing practice in Ghana’s governance structure that has coexisted with the central bank’s operations across different political administrations.”
Mr Otabil also addressed concerns about the potential impact of these land allocations on the bank’s policy decisions. “A lack of understanding of the inflation dynamics may lead to all sorts of conclusions and conjecture,” he noted. “However, I want to assure the public that the Bank of Ghana’s monetary policy decisions are based on rigorous economic analysis and are not influenced by any external factors, including these long-standing administrative practices.”
The Communications Director’s vigorous defense of the bank’s independence comes at a time when the relationship between central bank autonomy and economic outcomes is under increased scrutiny. By linking the bank’s autonomy to its ability to manage inflation and promote sustainable economic growth, he pointed out the practical importance of maintaining this independence.
“Our commitment to pursuing policies aimed at achieving a stable level of inflation in line with the medium-term target remains unwavering,” he reiterated to NorvanReports, underscoring the bank’s focus on its core mandate despite the ongoing discussion about land allocations.
When asked about the potential conflict of interest that these land allocations might present, Mr Otabil was firm in his response. “The Bank of Ghana has robust internal mechanisms to prevent conflicts of interest,” he stated. “Our decision-making processes are collegial and based on comprehensive economic data and analysis. The personal circumstances of our leadership do not influence our policy decisions.”
He also addressed the issue of public perception. “We understand that public trust is paramount for a central bank,” he acknowledged. “That’s why we are always open to dialogue and committed to explaining our policies and actions. However, it’s crucial that this discussion doesn’t overshadow or misrepresent the bank’s fundamental independence and its critical role in Ghana’s economic management.”
As the interview concluded, Mr Otabil reaffirmed the Bank of Ghana’s commitment to its core responsibilities. “Our focus remains steadfast on maintaining price stability, promoting economic growth, and ensuring the overall health of Ghana’s financial system,” he stated. “These are our primary mandates, and they guide all our actions and decisions.”
While the Bank of Ghana has chosen to address the land allocation issue directly, it has done so in a way that reasserts its commitment to its core mandates and principles. The Bank of Ghana’s response demonstrates its determination to maintain its independence while acknowledging the need for public understanding and trust in its operations.
