Amid mounting financial challenges faced by the Bank of Ghana (BoG), calls for the resignation of the institution’s Governor, Dr. Ernest Addison, have escalated. Criticism centers around perceived compromise of the central bank’s independence and questionable financial decisions.
Professor Godfred Bokpin from the University of Ghana Business School asserts that the BoG’s exposure to supporting the government has contributed to its current financial woes and eroded confidence in the financial sector. Bokpin suggests that Governor Addison should consider stepping down to restore confidence in the institution.
Bokpin’s sentiments echo those of the Minority in Parliament, who are demanding not only the resignation of Governor Addison but also of his two deputies – Dr. Maxwel Opoku-Afari and Elsie Addo Awadzi. The Minority Leader, Dr. Cassiel Ato Forson, alleges that the Governor’s decision to allocate $250 million for a new headquarters indicates printing money to fund the project.
The BoG recently reported a loss of GHS 60.8 billion, attributing it to the impairment of the Government of Ghana’s securities holdings, loans and advances granted to quasi-government and financial institutions, and the depreciation of the local currency. The loss is a consequence of the Government of Ghana Domestic Debt Exchange Programme.
In response to these challenges, the BoG outlines measures to recover, including retaining profits to rebuild capital, refraining from monetary financing of the government’s budget, optimizing the investment portfolio and operating cost mix, and assessing potential recapitalization support by the government in the medium-to-long term.
Despite these assurances, critics argue that immediate action is required to address the financial predicament and safeguard the integrity of the financial sector. The call for the Governor’s resignation comes at a time of heightened scrutiny over the Bank’s operations and decision-making processes.
The situation highlights the delicate balance between a central bank’s independence and its role in supporting government policies, prompting broader discussions about financial governance and accountability.
Source: citinewsroom
