The leader of the National Democratic Congress Minority Caucus in Parliament, Dr. Cassiel Ato Forson has strongly criticized the Bank of Ghana for its staggering financial losses and its extravagant spending amidst such dire fiscal mismanagement.
The Ajumako Enyan Esiam Constituency Member of Parliament, in blistering critique, deeply expressed grave concern over the country’s central bank’s recorded losses in the past years, thereby calling for immediate reforms.
“In 2022, the Bank of Ghana made a colossal loss of over 600,000% of its stated capital of GHS10 million. The Bank made another loss equivalent to 150,000% of its stated capital in 2023”.
Dr Cassiel Ato Forson, Minority Leader
Dr Forson vehemently chastised the leadership of the country’s central bank, arguing that such losses are unparalleled in the annals of central banking history.
He emphasized that the poor record of performance of the country’s central bank under the New Patriotic Party administration is virtually incomparable to any central bank’s, highlighting the dire need for accountability and restructuring within the institution.
BoG’s Construction of Extravagant Projects
Compounding the controversy, Dr Forson pointed to the central bank’s ongoing expenditure on high-cost construction projects, adding that despite the enormous financial deficits, the Bank of Ghana has recorded over the past two years, it is building a new headquarters estimated to cost around USD 250 million.
Furthermore, the former Deputy Minister of Finance under the erstwhile Mahama and the National Democratic Congress’s administration, Dr Cassiel Ato Forson alleged that the Bank of Ghana is constructing a new multi-million dollar residence for its Governor,
He indicated that the new project is situated on the site of the former Bank of Ghana’s Clinic in Ridge, Accra, which has been demolished to make way for such an “opulent accommodation project”.
The Minority Leader and Member of Parliament for Ajumako Enyan Esiam Constituency, in fervent calls for accountability underscored the alarming disparity between the Bank of Ghana’s financial performance and its spending choices.
He emphasized that the Bank of Ghana’s poor outturns do not justify its decision to carry on with such massive and costly construction projects.
The Minority Leader thus called for a comprehensive cleanup to restore the institution to its former glory, underlining the urgency of prudent financial management and transparent governance.
He underscored the critical need for important public institutions, such as the country’s central bank to exercise fiscal responsibility, especially when grappling with significant financial challenges like the country is going through.
The Bank of Ghana, in an earlier statement, announced a loss of GH₵10.50 billion for the financial year ending 2023.
This significant loss according to the country’s central bank is primarily attributed to an increase in total interest expenses on its open market operations, emphasizing that during the period under review, these expenses surged by GH₵6.7 billion.
The GH₵10.50 billion loss is, however, a substantial improvement compared to the GH₵60.9 billion loss the Central Bank reported in 2022 following the impairment of its holdings of marketable government stocks and non-marketable instruments during the domestic debt exchange program.
The Bank explained that the rise in expenses was necessary to manage the economy’s excess liquidity.
READ ALSO: China Refutes Zelenskyy’s Claims On Attempt To Undermine Peace Summit
