BoG Building GHS250m New Head Office In A Broke Country

The Governor of the Bank of Ghana (BoG) Dr Ernest Addison is spending GHS250million to build a new head office for the central bank at time the Bank is in financial difficulties, the Minority Leader Dr Cassiel Ato Forson has said.

Dr Forson accused the Governor of printing money to finance this project because the BoG has no money.

“The Bank of Ghana does not have money but spending GHS250million for a new head office, which means he is printing additional money to finance this project,” Dr Forson said.

He further gave the Governor and his two deputies up to 21 days starting today Tuesday, August 8 to resign after indicating that the governor just prints cash to support the government’s spending.

“We have to get this Governor out and let us have a new Governor. If we allow him to stay in the office, we will set bad precedence for future managers to do the same,” he said at a press conference in Accra on Tuesday Augist 8.

Dr Forson stressed, “He has messed us so much that we cannot wait to see his back.”

“We demand the immediate resignation of the Governor and his deputies within 21 days. We will march to occupy the central bank to save the Bank of Ghana if he fails to reign. The March will ensure accountability,” he said.

Dr Forson’s comments follow the GHS60.8billion loss made by the BoG.

The Bank said this is due to the impairment of the Government of Ghana’s securities holdings of ¢48.45 billion, impairment of loans and advances granted to quasi-government and financial institutions amounting to ¢6.12 billion and the depreciation of the local currency resulting in net exchange loss of ¢5.27 billion.

The loss was occasioned by the Government of Ghana Domestic Debt Exchange Programme.

According to the BoG, its Board of Directors and Management assessed the policy solvency implications arising out of the negative net worth position and the group’s ability to continue to generate enough income to cover its monetary policy operations and other operational costs.

In the view of the directors, the Central Bank will continue to operate on a going concern basis due to a variety of factors underpinned by expectations of an improved macroeconomic situation and policy actions specifically targeted at improving its balance sheet.

In its Annual Report, the Central Bank, outlined these measures which it believed would help it recover.

These include: Retention of profits to help rebuild capital until equity firmly returns to positive region.

Refraining from monetary financing of the Government of Ghana’s budget. In this respect, action has already been taken with a Memorandum of Understanding on zero financing of the budget signed between the Bank of Ghana and the Ministry of Finance on 26 April, 2023;

Taking immediate steps to optimise the Bank of Ghana’s investment portfolio and operating cost mix to bolster efficiency and profits; and

Assessing the potential need for recapitalisation support by the government in the medium-to-long term

It furthered that the Board of Directors and Management are of the view that  “continued efforts at restoring macroeconomic stability and debt sustainability in addition to long-term efforts at building reserves, provide enough basis for continued operational policy efficiency existence for the foreseeable future”.