GH¢60 billion BoG loss: Bawumia would have resigned if he respected Ghanaians - NDC

A chartered economist Bernard Oduro Takyi has criticised Vice President Mahamadu Bawumia for the significant financial loss incurred by the Bank of Ghana (BoG).

The central bank recorded a staggering loss of GHS60.8 billion, per the Auditor-General's 2022 report, which is equivalent to $6 billion - twice the IMF bailout to Ghana - through what the minority caucus describes as the "recklessness and mismanagement of the Governor of the Bank of Ghana".

According to the caucus, after the loss, the central bank "then proceeded to do the unthinkable – to write-off a whopping GHS48.4 billion, about half of Ghana Government’s indebtedness to the Central Bank, without parliamentary approval".

Mr Oduro Takyi said in an interview with Odehyeeba Kofi Essuman on Accra100.5 FM's morning show Ghana Yensom on Wednesday, 16 August 2023 that out of respect for the well-being of the Ghanaian populace, the Vice President should have taken responsibility and stepped down due to the economic turmoil he has allegedly contributed.

Mr Takyi spared no criticism asserting that if the Vice President truly held the Ghanaian citizens in high regard, he would have refrained from participating in the race to lead the governing New Patriotic Party (NPP) in the upcoming 2024 general elections.

He underscored that the mishandling of the economy, which resulted in the Bank of Ghana facing significant losses, should have been a deterrent for the Vice President's continued involvement in serving as the Head of the Economic Management Team.

About the reasons cited by the central bank for its losses, including auction failures and the implementation of the Domestic Debt Exchange Programme (DDEP), Mr Takyi maintained that the Vice President's inability to execute his responsibilities effectively as evidenced by the BoG loss as the bank was under his supervision.

The economist pointed out that when the Bank of Ghana experienced auction failures, both the Vice President and the Finance Minister failed to take timely action, allowing the central bank to resort to money-printing as a solution to compensate for the losses.

He also referenced Article 183, which mandates the central bank to report to Parliament.

He criticised the Chairman of the Finance Committee of Parliament for purportedly shirking his duties and not holding the central bank accountable for its actions.

In Takyi's view, a culture of passivity among these individuals allowed the Bank of Ghana to exert undue influence in the fiscal management of the economy.