Financial imprudent decision by the BoG and finance minister cost Ghana the avoidable GHC18bn – Economist

Adnan Adams Mohammed
An economist has chided the of Governor of Bank of Ghana,
Dr. Ernest Addison and Ken Ofori-Attah, the Finance Minister over running the
country into further debt because of their ‘financial imprudent decision’ in
the handling of the banking sector clean-up since 2017 to 2019.
In the face of other options; that will not cost the tax
payer a pesewa (GHC0.01) in cleaning the banking sector mess, they opted to go
borrowing a whopping eighteen billion new Ghana cedis (GHc18 billion) which
will attract an interest at the spot rate, if hedged it is still punitive and
avoidable, Dr H. Kwame Afaglo, an economist and lecturer at Hams Technology
Institute has said.
Political leadership interference in the monetary role of
the Bank of Ghana does seize the highly desired functional independence of the
central bank, and this has left Ghana with a debt of GHC18 billion. As the
alternative cost of their imprudent financial decision in this banking clean-up
could have provided each of the sixteen regions of Ghana, five (5) modern
hospitals at a cost of GHC50 million which is no different from that of the
recently (18 August 2019) re-commissioned Upper West Regional Hospital.
“This financial imprudent decision by the Governor Dr.
Addison of Bank of Ghana and the Ken Ofori-Atta-Attah the Finance Minister
cannot be swept under the carpet of a poor country as Ghana”, Dr Afaglo said in
his latest article.
He explained that, as a starter, World Bank has always being
insisting on the independence of the central bank from political interference
as functional independence and personal independence of the central bank being
Bank of Ghana and the person of the Governor who is in charge.
Hence the first deliberate infraction that Nana president
and Ken Ofori-Atta-Attah committed was the forcing out of then Governor and his
Deputies of the Bank of Ghana, and appointing their political kind being Dr.
Addison. This deliberate infraction is compromised the personal independence of
the position of the Governor of Bank of Ghana.
The cost of this infraction is the subject under discussion.
As a recommendation, the governor of Bank of Ghana must be
appointed by the legislature (parliament) and s/he must have a term longer than
the presidential tenure being five (5) years
The other infraction by the two accused persons is got to do
with their choice in decision making when it was most necessary in the banking
clean-up.
Full statement below:
Banking Clean-Up and the Financial Imprudent Decision by the
Governor of Bank of Ghana and the Finance Minister that Cost Ghana the
Avoidable GHC18bn
Governor Dr. Addison of the Bank of Ghana and Ken
Ofiri-Attah the Finance Minister of Ghana have run the country into further
debt because of their _financial imprudent decision_ in the handling of the
banking clean-up in Ghana since 2017 to 2019.
As a starter, World Bank has always being insisting on the
independence of the central bank from political interference as functional
independence and personal independence of the central bank being Bank of Ghana
and the person of the Governor who is in charge.
Hence the first deliberate infraction that Nana president
and Ken Ofori-Atta-Attah committed was the forcing out of then Governor and his
Deputies of the Bank of Ghana, and appointing their political kind being Dr.
Addison. This deliberate infraction is compromised the personal independence of
the position of the Governor of Bank of Ghana.
The cost of this infraction is the subject under discussion.
As a recommendation, the governor of Bank of Ghana must be
appointed by the legislature (parliament) and s/he must have a term longer than
the presidential tenure being five (5) years
The other infraction by the two accused persons is got to do
with their choice in decision making when it was most necessary in the banking
clean-up.
In the face of other options that will not cost the tax
payer a pesewa (GHC0.01) in cleaning the
banking mess of Ghana, they opted to go borrowing a whopping eighteen billion
new Ghana cedis (GHc18 billion) which will attract an interest at the spot
rate, if hedged it is still punitive and avoidable.
This financial imprudent decision by the Governor Dr.
Addison of Bank of Ghana and the Ken Ofori-Atta-Attah the Finance Minister cannot
be swept under the carpet of a poor country as Ogyakrom.
As the alternative cost of their imprudent financial
decision in this banking clean-up could have provided each of the sixteen
regions of Ogyakrom 5 modern hospitals at a cost of GHc50 million which is no
different from that of the recently (18 August 2019) re-commissioned Upper West Regional Hospital.
Political leadership interference in the monetary role of
the Bank of Ghana does seized the highly desired functional independence of the
central bank, and here we are with a debt of GHc18 billion new cedis.
Just wondering if this financial imprudent decision is what
the Nana president administration promised the people of Ogyakrom as value for
money.
-a) Will there be a public enquiry into this banking
clean-up exercise as post project evaluation?
As both the financial and non-financial ramifications has
come at a cost more than the problem itself?
-b) How can the Bank of Ghana and FinMin go borrowing a
whopping GHc18 billion to clean up the banking mess which cost far less
(speculatively half) than the amount borrowed?
_This is not commonsensical_
Thus, *Governor Addison and FinMin KenBond have to resign
and save the country from further deepening of public debts that can be
avoided, as well as abusing and depriving the poor people’s tax of quality
public amenities respectively*
Without being bookish, democracy has accountability as an
integral part and the concept of accountability must be evoked to make Dr.
Addison and Ken Ofori-Attah come face public enquiry as resigned public office
holders.
-c) The banking clean-up comes across as not a well thought
through programme under Dr. Addison and Ken Ofori-Atta as, we still have some
banks that are yet to meet the required minimum reserve while some others were shut down, yet they claim
the exercise is over.
_This is an unethical approach and can not or must not be
allowed to continue as it will serve as basis for future bias or retaliatory
actions against some financial institutions_
-d) How can within 2017 - 2019 the Bank of Ghana shuts down
over 400 financial institution and not have a remedial plan to cater for
suicidal cases of some employees and customers?
No amount of money can be of higher price than that of human
life, but under this banking clean-up the duo Dr. Addison and Ken Ofori-Atta,
so is the account without any remorse.
#Resign Dr.Addison for the lost of lives in your execution
of the banking clean-up
#Resign Ken Ofori-Atta as your decision in the banking
clean-up had no human face
May the souls of employees and customers of the over 400
financial institutions who passed on due to the messy banking clean-up project
rest in peace
_Nye gbe dze anyi_
©2019 rafa raja
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