Adongo Takes BoG ‘Hostage’ Pressures for Transparency Amidst Accountability Concerns

Member of Parliament for Bolgatanga Central Constituency and Ranking Member of Parliament’s Finance Committee, Isaac Adongo has called upon the Governor of the Bank of Ghana to furnish the audited financial statement for the 2023 fiscal year.

Citing the constitutional mandate of the Bank of Ghana to ensure currency stability and drive economic growth in alignment with Article 183 of the 1992 Constitution and Section 4 of the Bank of Ghana Act, 2002 (Act 612), Adongo’s legal representatives emphasized the paramount need for transparency and accountability within the central bank.

Emphasizing the obligation stipulated in Section 53A of the Bank of Ghana (Amendment) Act, 2016 (Act 918), which mandates the Bank of Ghana to report its activities and functions to Parliament, Adongo’s legal team invoked constitutional provisions such as Article 21(1)(f) of the 1992 Constitution and Section 18 of the Right to Information Act, 2019 (Act 989) to formalize the request for the financial statement.

The articulately crafted communication dispatched by Adongo’s legal representatives delineated the preferred channels for delivery of the information, either electronically to a designated email address or through the Clerk of Parliament.

Notably, the letter underscored the legal requirement for a response within a 14-day timeline as prescribed in the Right to Information Act, cautioning of potential repercussions should the Bank of Ghana fail to adhere to the request.

This development signifies an escalated scrutiny on financial transparency within Ghana’s central banking domain, underscoring the significance of public accountability in the realm of economic oversight.

The recent interventions by the IMF to appoint a representative for monitoring activities at the Bank of Ghana spotlight the intensifying concerns within the institution.

Critiques levelled against the Bank of Ghana and its leadership encompass a spectrum of issues such as the failure to effectively utilize monetary policy to combat soaring inflation rates exceeding 50% and stem the depreciation of the Ghanaian Cedi.

Furthermore, the regulatory oversights leading to the collapse of Ghana’s financial sector, manifested in widespread losses among banks in 2022, have exacerbated economic challenges, rendering the business environment unattractive and exacerbating job losses.

The unveiled financial statements highlighting a staggering loss of GHS 60.8 billion and negative equity of GHS 55.1 billion for the Bank of Ghana in 2020 further accentuate the governance lapses plaguing the central bank.

The inadequate management practices have not only jeopardized the Bank’s ability to serve as the lender of last resort for the government and banking sector but have also prompted urgent measures such as the Finance Minister’s plea to Parliament for a $750 million support package for distressed banks in 2023.

Allegations of mismanagement extending to wanton spending and extravagances, notably exemplified by extravagant procurements like the construction of the new Bank of Ghana Head Office building at Ridge in Accra, further underscore the governance deficiencies within the institution.

In contravention of the Bank of Ghana (Amendment) Act, 2016 (Act 918), the unauthorized printing of GHS 80 billion, as evidenced by the Memorandum of Economic and Financial Policy, has precipitated a depletion in Ghana’s external reserves by $6.3 billion, inciting a sharp depreciation of the Cedi and inflation woes reaching hyper levels of 54.1% in 2022, presently at 25%.

The cascading aftermath of the Bank of Ghana’s leadership failings, including the plunge of over one million Ghanaians into extreme poverty, necessitates a robust call for accountability and remedial measures to address the unfolding economic challenges.