Gatsi Challenges BoG Over Blames On DDEP For 2022 Losses

The Dean of the Business School of the University of Cape Coast (UCC), Professor John Gatsi, has challenged Bank of Ghana’s assertion that the Domestic Debt Exchange Programme (DDEP) affected its books in the year 2022.

The Central Bank incurred a loss of GH¢60.8 billion in 2022 and blamed the Programme  for the loss.

Speaking at the launch of GCB Bank’s 70th anniversary, a Deputy Governor, Dr Maxwell Opoku-Afari, on behalf of the Governor, said the DDEP affected the profitability and solvency of banks in 2022 but performance in the first half of 2023 looks promising.

On Tuesday, August 8, the Minority in Parliament called for the resignation of the Governor, Dr Ernest Kwamina Yedu Addison, and his two deputies – one of whom is Elsie Addo Awadzi – for the debt the once prestigious profit-making enterprise has been plunged into.

Commenting on the development on 3FM‘s Hot Edition on later on, Prof Gatsi described the outcome as “outrageous”, calling for immediate investigations.

He said the DDEP cannot be blamed for the losses when the Bank went past its threshold of lending to government.

He insists that “the Central Bank is not right in trying to point at the [Domestic] Debt Exchange Programme”.

For Prof Gatsi, officials at the Central Bank cannot be absolved of blame for the negative returns.

“So, the Bank of Ghana cannot wish away this colossal loss that have been made just because it doesn’t affect their mandate and even that statement that it doesn’t affect their mandate is questionable.”

Already, the Minority members (MPs) have resolved to occupy the head office of the Bank for the next 21 days to put pressure on the governors to resign.