Financial Analyst and Banking Consultant, Dr. Richmond Atuahene is of the firm belief that the circumstances leading to the unprecedented loss of the Bank of Ghana (BoG) cannot be swept under the carpet.
The Central Bank in 2022 recorded a huge loss of GH¢53.1 billion, making a history since the establishment of the bank. Experts say the loss occurred because of the financing of the operations of the government through the domestic debt exchange programme.
The BoG in financing the government exceeded its legally mandated 5% of the revenue financing threshold. The Central Bank went as far as financing the government to the tune of about 60% of the previous year’s revenue.
This situation has resulted in the Bank currently experiencing a negative equity.
The new administration of the bank is seeking a bailout from the government to strengthen its finances. However, Minister for Finance, Dr. Cassiel Ato Forson says the government is not in a position to bailout the bank hence advising that it deploys internal cost-cutting measures to salvage the situation.
However, Dr. Atuahene says what happened is a total violation of the country’s banking laws and hence the authorities cannot feign ignorance.
Speaking to The High Street Journal, the banking consultant insisted that former governor of the bank and the former finance minister, in addition to all those who played a role in creating such a mess should be made to face the full rigours of the law.
Dr. Atuahene maintains that what happened was a total disregard for the banking laws and the advice from experts, including himself when they warned against the action.
Given the outcome of their actions, the financial analyst is convinced that it will be a great injustice and disservice for the alleged culprits to be allowed to walk freely without answering any questions from the state.
He says the situation has the high potential of denting the image and credibility of Ghana in the international financial market.
As the campaign for accountability gathers momentum, it is unclear whether the attorney-general or the Parliament of Ghana will take up the matter and demand accountability on behalf of the state.
