Professor Smart Sarpong has lauded the Minority in Parliament after they revealing some information about the Bank of Ghana during their "Moment of Truth" event held on Tuesday, August 8, telling the media the Bank of Ghana, last year, lost over GHc 60 billion.
The Bank of Ghana, according to a statement read by the leader of the Minority in Parliament, Cassiel Ato Forson, recorded a "catastrophic decline" in 2022.
The bank, he disclosed, "recorded a staggering loss of GHS60.8 billion, which is equivalent to $6 billion. This is twice the amount we are to receive from our recent IMF bailout".
"This means the recklessness and mismanagement of the Governor of the Bank of Ghana has cost the nation twice what we are struggling and sacrificing to receive from the IMF amid major conditionalities", Hon. Ato Forson asserted.
The Minority further revealed "the bank has also recorded a negative equity of over GHS55.1 billion. What this simply means is that the Bank of Ghana is insolvent", adding "in other words, the once prestigious Bank of Ghana, the mother of all banks in Ghana, has been bankrupted and collapsed by this NPP economic management team led by Dr Mahamudu Bawumia with the complicity of the Governor of the Central Bank".
They accused the Governor of the bank, Dr. Ernest Addison for this loss and say he and his deputies must resign from office within 21 days.
Addressing the issue on Peace FM's panel discussion programme "Kokrokoo", Professor Smart Sarpong, a Senior Research Fellow of the Kumasi Technical University, noted that regarding this BoG matter, the Minority has been a better source of public information.
He wondered why the bank authorities have failed to lead the conversations regarding activities of the bank and delivering reports and explanations to the public to dispel doubts and misconceptions.
"It tells you that the Minority, in this case, has become a better source of public information than the Bank of Ghana," he told Kwami Sefa Kayi.
To him, it is unfortunate that the bank has been poor on feeding the public with relevant information and giving clarifications on matters and advised the authorities to review their public relations.
Source: Ameyaw Adu Gyamfi/Peacefmonline.com/Ghana
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@Joseph, please you should rather go and look at what the GHC 60 billion was expended on resulting in the loss. The bank of Ghana itself indicated what resulted in the loss. What you are saying are not part of reasons for the loss. From every indication you are rather the one who lacks understanding of the issues at stake or you are playing to the gallery. If the bank of Ghana were your private business, will spend such colossal sums of money in those areas? Now go and read about the exact issues at stake to better appreciate what's happening.
@Peters. Please stop talking about things you don't understand. If you don't know how Banks create their profits and losses statements go and educate yourself. Central banks give retail banks the mandate to create debt by giving out loans. The interest from the loans is how they make their profit. The Retail banks buy government debt in the form of Bonds and Treasury bills. They make a loss on their books when the government defaults or restructures those bonds. But it's basically money created out of thin air. The Central banks also buy government bonds during times of crisis. Such interventions have been carried out by the Bank of England this year, The US treasury and also Bank of Ghana. It's termed quantitative easing. But ultimately they're just figures on accounting books P&L statements. Now go and build up the rest of your understanding
Prof, it is not about public relations review oooo. The mess is such that they may not want the public to know. How can any public relations officer of any state organization convince the good people of Ghana the the amount used in maintaining bank of Ghana vehicles in one year (12 months) is justified when that money can buy 87 brand new Toyota Land Cruiser V8? How can public relations officer convince the good people of Ghana that the amount spent by the bank in it's internal operations is 6 billion dollars when within the same period the finance minister was holding a calabash in front of the IMF kneeling and begging for 3 billion dollars ( half of what the bank of Ghana spent in one year) to come and do try and error to see if the economy can be stabilized to the extent that old men and women some of who made their money outside Ghana but decided to invest in government bonds at home had to weep in front of TV cameras to get back their investment. Ken Ofori atta has challenged economists the world over to take another look at their theory of "government debts are risks free" per what we saw happened to bond holders, can any economics lecturer look in the face of his students and tell them that government debts are risks free? Today can the bank of Ghana look into any back and say they are supervising their operations, won't that be laughable, you can't supervise yourself but can supervise others. Like a needle it cannot cover it's own ***barred word*** but can cover the ***barred word*** of others. Ghana is now a very good example when people are challenging this theory thanks to the best finance minister in the world.