Business News of 2014-07-10

‘BoG breached its laws over $3 million cash to Brazil’

Banking consultant, Nana Otuo Acheampong says the Bank of Ghana (BoG) shot itself in the foot by allowing government to airlift $3 million cash to Brazil to pay the appearance fee of the Black Stars.
The Governor of the central bank, Dr. Kofi Wampah has defended the government’s decision to fly the money, insisting that no Forex rule under the foreign exchange act was breached.
Section 15 (1) of Foreign Exchange Act, 2006 (Act 723) states that “each payment in foreign currency, to or from Ghana between a resident and a non resident, or between non residents shall be made through a bank.’’
But the BoG insists no laws have been violated.
Nana Otuo Acheampong however told Citi News, it will be difficult for the BoG to enforce the amended Forex rules and ensure its effectiveness.
He said although in every rule, there should be an exception “once you grant one exception, then you will continue doing that and that is exactly what they did.”
He cited the quoting of prices in dollars in the hotel industry as an example saying, “they granted one or two hotels [the permission] and others jumped in and argued that why do you give to A and not B?”
Acheampong maintained that the BoG is “shooting itself in the foot” adding that if the central bank is granting an exception in its Forex rules, “it will just come back to haunt them.”
The government and the central bank have come under fire for the decision to airlift the money to Brazil.
The event received international attention and criticisms with some questioning the failure of the government to use other alternatives in sending the money to Brazil.
Various institutions such as the Institute of Chartered Accountants Ghana (ICAG) and the Ghana Bar Association (GBA) have accused the government of violating the nation’s laws.