BoG’s GH¢60bn loss: Ken-Ofori Atta will face the law under NDC government – Sammy Gyamfi

The National Communications officer of the National Democratic Congress (NDC), Sammy Gyamfi, has stated that finance minister, Ken Ofori-Atta will face the full rigors of the law under the future NDC government.

Sammy Gyamfi explained that the governor of the Bank of Ghana, Dr. Erenest Addison together with Dr. Bawumia as head of the economic management team and finance minister, Ken-Ofori Atta contributed to the mess Bank of Ghana has created by incurring GH¢60bn loss.

He believes it is an unpardonable crime that contravenes the laws of the country hence the need for them to be held accountable when the NDC comes to power possibly in 2025.

Speaking in an interview on Good Morning Ghana on Metro TV on August 10, 2023, the National Communications Officer of the NDC revealed that all government officials responsible for the Bank of Ghana’s loss will be brought to justice.

“You see, Dr. Addison, Ken Ofori-Atta, they are jail bears walking free. These are jail-bound people. Because for the life of me, I do not see how these people can escape the full rigors of the law under the next NDC government insha Allah in 2025. So when we talk about the criminal quadrants who are responsible for the economic mess, this is what we mean.

“What they have done is an unpardonable crime against the laws of this country, and they have committed this crime with obscene impunity.

"And here you are talking about the chairman of the economic management team, Dr. Mahamudu Bawumia, the finance minister, Ken Ofori- Atta, the Governor of the Bank of Ghana, Dr. Ernest Addison, the three of them constitute a committee called the economic policy coordinating Committee, which is a subcommittee of the economic management team chaired by Dr. Bawumia, of which the governor is a member,” he said.

Background

The Bank of Ghana incurred a significant loss in 2022 largely as a result of the DDEP, its 2022 Annual Report, and Financial Statement have said.

According to the report, the central bank’s holdings of government debt were restructured whereas non-marketable holdings of Government of Ghana instruments including long-term stocks, a Covid-19 Bond, and overdrafts were subjected to a 50 percent haircut.

Bank of Ghana’s other claims (holdings of marketable instruments) were exchanged under similar terms as other financial institutions under the DDEP.

This led to an impairment of GH¢48.40 billion in 2022. At the same time, the Central Bank incurred revaluation losses on its foreign assets and liabilities due to exchange rate depreciation.

The impairments and revaluation losses led to a negative equity position of GH¢55.12 billion for 2022.

The report also stated that despite a healthy trade surplus, the balance of payments recorded a deficit of US$3.64 billion on account of significant net outflows in the capital and financial account.

This led to a drawdown of US$3.46 billion in Gross International Reserves from US$9.70 billion at end-December 2021 to US$6.24 billion at end-December 2022, providing 2.7 months of import cover.

The significant drawdown in reserves triggered immense currency pressures and the reduction in the Common Equity Tier 1 capital ratio to 5.5 percent, from 6.5 percent, and an increase in the maximum Tier 2 capital ratio to 3.0 percent, from 2.0 percent of total risk-weighted assets.

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