One major fallout from President John Dramani Mahama’s maiden media encounter is the staggering revelation of how a whopping $42 billion left Ghana in the last four years, in the name of paying for imports, but no goods landed in the country.
This kind of bizarre revelation, though it may sound far-fetched, should trouble every Ghanaian who buys food at the market, fuels a car, or pays a light bill.
For analysts and economists surprised by the revelation, the question on their lips is how could $42 billion leave this country in just four years, all in the name of imports, without containers of goods arriving?
President Mahama explained that some companies and importers applied for foreign exchange through commercial banks, ostensibly to bring in goods. The dollars were duly transferred abroad.
This means that the dollars in billions “vanished into thin air”, affecting the strength of the cedi.
“We’ve studied a period of four years, and over the period of four years, about $42 billion was taken out of this country without the corresponding imports coming into the country,” the president revealed to the media.
Sanctions and Investigations Underway
The “good news” is that the President said he is not leaving the matter hanging. Some banks found complicit in the menace have already been sanctioned.
In addition, he revealed that investigations are currently ongoing. Businesses, importers, and persons involved are being interrogated by the relevant bodies. The aim of the interrogation, he revealed, is to ascertain what really happened, and if there is a syndicate perpetuating this heinous crime on the country’s economy.
President Mahama assured that companies and individuals found culpable will be duly sanctioned.
“And so we started sanctioning some banks, and soon we’ll start interrogating some individuals who ostensibly took money out against imports but never brought those imports. We want to know what happened. And if there was wrongdoing, to sanction whoever it is,” he assured.
Where could the Money have gone?
Many analysts and experts are giving a fair idea of where the $42 billion possibly went.
One possible happening is round-tripping. They suspect that the dollars could have been diverted back into black markets, fueling speculation and worsening the cedi’s depreciation.
Others also suspect a possible stashing of offshore accounts. Funds may have been parked abroad as private wealth, starving Ghana of desperately needed foreign exchange.
The situation could also be a case of fraudulent invoicing. The experts explain that importers may have deliberately over-invoiced or declared phantom shipments to justify accessing forex.
The Implications on the Economy
According to the analysts, the impact of this situation is dire on the economy. Every dollar siphoned off weakens the cedi, drives up the cost of imports, and trickles down into the daily lives of ordinary Ghanaians.
The price of rice, cement, medicine, and spare parts, all imported, becomes higher because of forex abuses.
The Bottomline
The revelation also raises uncomfortable questions about oversight. As many concerned Ghanaians are asking, how could banks and regulators approve billions in forex without verifying that imports actually arrived? How were these transactions allowed to continue for four years without detection? And crucially, who benefited from this grand deception?
As sanctions begin against banks and investigations target individuals, President Mahama insists that while the government works to stabilise the economy and improve the value of our currency, the citizens must protect that currency.
He says a strong cedi is good for all Ghanaians; however, we shouldn’t allow some unscrupulous companies and individuals to take advantage of the system and erode the gains.
