Progressive People’s Party petitions Parliament over Bank of Ghana losses

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In response to the exorbitant losses the bank incurred in the 2022 fiscal year, the Progressive People’s Party (PPP) has petitioned Parliament to call Dr. Ernest Addison, Governor of the Bank of Ghana (BoG), and the whole Board of Directors for questioning.

The BoG, including all directors, must be forced to explain to the people’s representatives how its management made the decisions that resulted in the losses and negative equity, according to the petition, which was signed by the party’s National Secretary, Remy Paa Kow Edmundson. The BoG is a creation of the Constitution.

In its 2022 Annual Report and Financial Statement, which was published by the BoG on July 28, 2023, it was discovered that the organization had suffered a startling loss of GH60 billion, or $6 billion.

“The Board of Directors of the BOG include many independent members with significant professional and business experience.

We do not understand how they could have sat down and watched on for the alleged wanton dissipation of funds,” the statement said.

It further said that the directors’ time and attention to the business of the central bank were more than fairly paid.

“Even more concerning is the fact that the majority of the BOG’s extravagant expenditures were made without parliamentary sanction, making them illegal.

It emphasized that Parliament, as the people’s representatives, must step up to the plate and make sure that the people are properly represented in these trying times.

The party also urged Parliament to punish any officer found to have participated in the careless management of the economy and the illegal behavior that caused the enormous losses.

The BoG recorded a staggering loss of GH¢60.8 billion within the 2022 fiscal year.

The Minority in Parliament has on a number of occasions called on the Governor of the Bank of Ghana, Dr Ernest Addison, and his deputies to resign for being reckless in the management of the central bank.

The loss is ascribed in the Annual Report and Financial Statements to an impairment of some assets as well as a reduction in the Group’s net worth position as a result of the Domestic Debt Exchange Programme (DDEP).

Once more, its total liabilities and affiliates were 54.52 billion more than its entire assets.

The Central Bank reported a surplus of 5.72 billion yen in 2021.

This resulted from the depreciation of the local currency, which resulted in a net exchange loss of 5.27 billion dollars, impairment of loans and advances made to quasi-government and financial institutions totaling $6.12 billion, and impairment of the Government of Ghana’s holdings of securities, which totaled 48.45 billion dollars.

It was brought about by the Domestic Debt Exchange Program of the Government of Ghana.

Sources: Ghanatodayonline.com

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